Fox Factory (NASDAQ: FOXF) Faces Stock Decline, Lowered Outlook, and CEO Transition

• Fox Factory (NASDAQ: FOXF) shares experienced a significant decline, leading Roth Capital to maintain a Neutral rating.
• The company revised its 2026 net sales outlook downwards due to various operational challenges.
• Fox Factory announced a leadership change, appointing an interim CEO ahead of its third-quarter earnings call.

Fox Factory (NASDAQ: FOXF) makes performance products for bikes and vehicles, including suspension systems and other parts. It competes with other makers of bike components and vehicle accessories. Roth Capital maintained a Neutral rating and reiterated a hold action on the stock when it traded at $16.04.

The rating update follows a sharp decline in the shares. As highlighted by Defense World, Fox Factory opened at $15.00 on Friday after closing at $18.50 the previous session, a drop of about 19%. At the time of the rating update, the stock was down $2.46, or 13.30%, at $16.04.

Fox Factory lowered its 2026 net sales outlook to $1.35 billion–$1.38 billion from $1.42 billion–$1.47 billion. The midpoint fell by about $80 million. The company cited weaker Marucci performance, supply disruptions in its PVG business, challenges with AAG vehicle upgrades and softer bike demand.

The company expects third-quarter adjusted EBITDA of $38 million to $42 million, excluding approximately $12 million in IEEPA tariff refunds. Adjusted EBITDA is a measure of operating earnings that leaves out certain costs. Marucci Sports contributed about $33 million in third-quarter sales before Fox Factory sold it on September 25.

Fox Factory also appointed independent director Douglas Grimm interim CEO, effective October 16, as Mike Dennison stepped down. The board is searching for a permanent replacement. Investors are due to hear more when the company holds its third-quarter earnings call on November 5, 2026.