0001424929-26-000012
SEC filingFox Factory Holding Corp. reported a challenging fiscal year 2025, with net sales of $1.47 billion. The company incurred a significant net loss attributable to stockholders of $544.6 million, primarily driven by substantial non-cash goodwill impairment charges totaling $557.3 million and an intangible and long-lived asset impairment of $13.5 million. Excluding these impairments, the underlying business generated a gross profit of $443.2 million. Operating cash flow remained positive at $60.9 million, providing liquidity despite the reported losses. The company's balance sheet shows total assets of $1.67 billion against total liabilities of $1.00 billion, with stockholders' equity of $670.2 million. The results reflect the impact of adverse changes in U.S. tariff policies and a sustained decline in the company's stock price, which triggered the impairment assessments.
Fox Factory Holding Corp. (FOXF) reported a net loss attributable to stockholders of $544.6 million for fiscal year 2025, a significant deterioration from profitability. This result was primarily driven by substantial non-cash impairment charges, including a $557.3 million goodwill impairment and a $13.5 million intangible and long-lived asset impairment. Excluding these charges, the company's core operations generated net sales of $1.47 billion and a gross profit of $443.2 million. The loss from operations was $522.9 million, and the loss before income taxes was $576.3 million. The company recorded an income tax benefit of $31.6 million. Basic and diluted loss per share were both $13.00, based on 41.8 million weighted-average shares.
Net sales for the year were $1.47 billion. The company operates through three reportable segments. The Powered Vehicles Group (PVG) contributed approximately 33% of net sales, or $485.1 million, offering suspension products for off-road vehicles, trucks, side-by-sides, and motorcycles. The Aftermarket Applications Group (AAG) contributed approximately 32% of net sales, or $470.4 million, including lift kits, upfitted vehicles, and high-performance wheels under brands like BDS Suspension and Method Race Wheels. The Specialty Sports Group (SSG) contributed approximately 35% of net sales, or $514.5 million, encompassing bike suspension and components under the FOX and Race Face brands, and baseball/softball gear under the Marucci brand. Geographically, 76% of net sales ($1,119.2 million) were in North America, and 24% ($348.1 million) were international.
The company's gross profit was $443.2 million, resulting in a gross margin of 30.1%. Total operating expenses were $966.2 million, which included the massive $557.3 million goodwill impairment charge. Other significant operating expenses were sales and marketing ($132.1 million), general and administrative ($151.8 million), research and development ($69.4 million), and amortization of purchased intangibles ($42.0 million). The substantial impairment charges resulted in a negative operating margin of -35.6%. The cost of sales was $1.02 billion. Research and development expenses increased to $69.4 million in fiscal 2025 from $60.3 million in fiscal 2024.
Net cash provided by operating activities was $60.9 million, a positive result driven by adjustments adding back non-cash impairments. Key adjustments included the $557.3 million goodwill impairment and $92.3 million in depreciation and amortization. Net cash used in investing activities was $34.0 million, primarily for purchases of property and equipment. Net cash used in financing activities was $40.0 million, related to net repayments on debt facilities. The net change in cash and cash equivalents was a decrease of $13.7 million. The balance sheet shows total assets of $1.67 billion, including current assets of $745.7 million (with $58.0 million in cash, $190.7 million in accounts receivable, and $388.6 million in inventory). Total liabilities are $1.00 billion, including a $150.0 million revolver and a $496.7 million term loan (less current portion). Total stockholders' equity is $670.2 million.
The filing indicates significant risks and challenges. The company cited adverse changes in U.S. tariff policies and a sustained decline in its stock price as triggers for the goodwill impairment assessments. Management notes that operations and the supply chain are directly impacted by evolving U.S. trade policies and global tariffs, which create uncertainty and may increase material costs or disrupt the supply chain. The company's strategy focuses on developing innovative products, leveraging technology and brands to expand into new categories, opportunistic acquisitions (like Marzocchi in 2024), increasing aftermarket penetration, and accelerating international growth. A critical accounting estimate sensitivity analysis indicates that a 1.5% increase in the weighted-average cost of capital (WACC) could result in a full future impairment of the remaining goodwill in the SSG reporting unit.