Q3 FY2026
Filed Nov 5, 2026Third-quarter sales declined 10.1%, while adjusted EBITDA increased to $50.4 million, supported by approximately $12 million of IEEPA tariff refunds and a $121.3 million loss on the Marucci Divestiture drove a GAAP net loss.
Adjusted EBITDA, adjusted net income, gross margin and adjusted operating expense margin improved year over year, and the Marucci Divestiture funded substantial debt reduction. However, consolidated sales declined, AAG and SSG contracted, GAAP results included a $121.3 million divestiture loss, and fourth-quarter outlook reflects elevated input costs and operational pressure.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 fiscal 2026 net salesGAAP | $338.4M | – | decrease of 10.1% |
| Q3 fiscal 2026 gross profitGAAP | $106.6M | – | – |
| Q3 fiscal 2026 gross marginGAAP | 31.5% | – | – |
| Q3 fiscal 2026 total operating expensesGAAP | $205.2M | – | increased by $105.8 million |
| Q3 fiscal 2026 adjusted operating expensesnon-GAAP | $68.7M | – | – |
| Q3 fiscal 2026 adjusted operating expense marginnon-GAAP | 20.3% | – | – |
| Q3 fiscal 2026 loss from operationsGAAP | −$98.62M | – | – |
| Q3 fiscal 2026 income tax expenseGAAP | $1.5M | – | – |
| Q3 fiscal 2026 effective tax rateGAAP | (1.4)% | – | – |
| Q3 fiscal 2026 net loss attributable to FOX stockholdersGAAP | $109.6M | – | – |
| Q3 fiscal 2026 diluted net loss per shareGAAP | $2.61 per diluted share | – | – |
| Q3 fiscal 2026 adjusted net incomenon-GAAP | $22.7M | – | – |
| Q3 fiscal 2026 adjusted diluted earnings per sharenon-GAAP | $0.54 | – | – |
| Q3 fiscal 2026 adjusted EBITDAnon-GAAP | $50.4M | – | – |
| Q3 fiscal 2026 adjusted EBITDA marginnon-GAAP | 14.9% | – | – |
| First nine months fiscal 2026 net salesGAAP | $1.07B | – | decrease of 3.7% |
| First nine months fiscal 2026 gross profitGAAP | $322.7M | – | – |
| First nine months fiscal 2026 gross marginGAAP | 30.3% | – | – |
| First nine months fiscal 2026 total operating expensesGAAP | $408.4M | – | decreased by $149.7 million |
| First nine months fiscal 2026 adjusted operating expensesnon-GAAP | $232.7M | – | – |
| First nine months fiscal 2026 adjusted operating expense marginnon-GAAP | 21.8% | – | – |
| First nine months fiscal 2026 loss from operationsGAAP | −$85.77M | – | – |
| First nine months fiscal 2026 net loss attributable to FOX stockholdersGAAP | $120.6M | – | – |
| First nine months fiscal 2026 diluted net loss per shareGAAP | $2.87 | – | – |
| First nine months fiscal 2026 adjusted net incomenon-GAAP | $45.6M | – | – |
| First nine months fiscal 2026 adjusted diluted earnings per sharenon-GAAP | $1.08 | – | – |
| First nine months fiscal 2026 adjusted EBITDAnon-GAAP | $131.6M | – | – |
| First nine months fiscal 2026 adjusted EBITDA marginnon-GAAP | 12.4% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 fiscal 2026 Powered Vehicles GroupStrengthening demand in powersports, where net sales increased 28.8% compared to the prior year period, partially offset by lower net sales in autos-related product lines. | $131M | – | increase of 4.1% |
| Q3 fiscal 2026 Specialty Sports GroupMarucci Sports contributed approximately $33.0 million compared to approximately $49.2 million in the prior year period, alongside order timing and channel destocking in bike businesses. | $113.6M | – | decrease of 14.4% |
| Q3 fiscal 2026 Aftermarket Applications GroupLimited chassis availability for upfit businesses, macroeconomic conditions affecting dealers and consumers, and lost revenue from divested businesses. | $93.8M | – | decrease of 20.4% |
| First nine months fiscal 2026 Powered Vehicles GroupStrengthening demand in powersports. | $398.6M | – | increase of 7.3% |
| First nine months fiscal 2026 Specialty Sports GroupMarucci Sports results following the Marucci Divestiture, order timing, and channel destocking in bike businesses. | $348.5M | – | decrease of 10.8% |
| First nine months fiscal 2026 Aftermarket Applications GroupLost revenue from divested businesses and constrained chassis availability for upfit businesses, partially offset by increased demand for aftermarket products. | $318.2M | – | decrease of 7.4% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter fiscal 2026 and fiscal year 2026 outlook
- RevenueFiscal year 2026 net sales in the range of $1.35 billion to $1.38 billion
- NoteFourth quarter fiscal 2026 net sales in the range of $287 million to $313 million
- NoteFourth quarter fiscal 2026 adjusted EBITDA in the range of $25 million to $30 million
- NoteFiscal year 2026 adjusted EBITDA in the range of $143 million to $148 million, excluding approximately $14 million of IEEPA tariff refunds received in the second and third quarters
- NoteFiscal year 2026 adjusted EBITDA, including IEEPA tariff refunds, in the range of $157 million to $162 million
- NoteFourth quarter guidance excludes Marucci.
- NoteFull year guidance includes Marucci results through the September 25, 2026 closing.
- NoteGuidance reflects input costs at current levels, including aluminum, steel and freight inflation, and assumes no further increases.
- NoteThe outlook does not include any additional IEEPA tariff refunds.
Capital returns
- Repurchases from stock compensation program, net: $ (1,653) (in thousands) for the nine months ended October 2, 2026.
- No dividend declaration or broader share-repurchase program was reported.
What drove it
- The Marucci Divestiture closed on September 25, 2026, and its proceeds were immediately allocated to debt reduction.
- Q3 gross margin increased primarily because of IEEPA tariff refunds, partly offset by product-line mix shifts and higher freight, commodities and fuel costs.
- Q3 adjusted EBITDA included an approximate $12 million benefit associated with IEEPA tariff refunds; first-nine-month adjusted EBITDA included an approximate $14 million benefit.
- The Phase 2 profit optimization initiative targets approximately $50 million of gross realized savings in fiscal 2026, and the Company captured approximately $41 million of gross savings in the first nine months.
- Optimization savings were largely offset by external cost increases, including freight, commodities and fuel.
Concerns
- AAG sales declined because of limited chassis availability, macroeconomic pressure on dealers and consumers, and divested-business revenue loss.
- SSG sales were affected by reduced Marucci contribution, order timing and bike-channel destocking.
- The Company cited a supply disruption in Powered Vehicles, higher input costs and operational challenges in the Aftermarket Applications upfit business.
- Q3 GAAP results included a $121.3 million loss on divestitures.
- The Company expects external costs to remain elevated and fourth-quarter guidance assumes current aluminum, steel and freight inflation levels with no further increases.
What to watch
- Execution of business line rationalization, supply chain and materials productivity improvements, and operating-expense reductions under Phase 2.
- Whether chassis availability improves for the upfit businesses and whether AAG can recover from dealer and consumer macroeconomic pressure.
- PVG powersports demand, which was the principal source of segment growth in the quarter.
- The impact of Marucci's exclusion from fourth-quarter guidance and the realization of benefits from the debt reduction.
- Performance against fourth-quarter net sales guidance of $287 million to $313 million and adjusted EBITDA guidance of $25 million to $30 million.
Balance sheet and cash flow
- Cash and cash equivalents were $45.4 million as of October 2, 2026, compared to $58.0 million as of January 2, 2026.
- Inventory was $334.3 million as of October 2, 2026, compared to $388.6 million as of January 2, 2026.
- Total debt was $397.4 million as of October 2, 2026, a decrease of $276.1 million, compared to $673.5 million as of January 2, 2026.
- Net debt was $352.0 million as of October 2, 2026, a decrease of $263.5 million compared to $615.5 million as of January 2, 2026.
- During the third quarter of fiscal 2026, the Company reduced total debt by $270.3 million, primarily funded by approximately $200.0 million of proceeds from the Marucci Divestiture.
- Net leverage ratio was approximately 2.4x.
- Net cash provided by operating activities was $ 74,749 (in thousands) for the nine months ended October 2, 2026, compared to $ 42,766 (in thousands) in the prior-year period.
- Purchases of property and equipment were $ (14,141) (in thousands) for the nine months ended October 2, 2026, compared to $ (27,957) (in thousands) in the prior-year period.
- Proceeds from divestitures, net, including collections of promissory note principal were $ 204,933 (in thousands) for the nine months ended October 2, 2026.
- Net cash used in financing activities was $ (280,241) (in thousands) for the nine months ended October 2, 2026.
- Days inventory on hand improved to approximately 122 days from approximately 148 days in the prior year period.
Analysis
FOX reported a mixed third quarter. Net sales were $338.4 million, a decrease of 10.1% from $376.4 million, as contraction in AAG and SSG more than offset growth in PVG. AAG declined on chassis constraints, dealer and consumer macroeconomic pressure, and divested-business revenue loss. SSG was affected by a lower Marucci contribution, order timing and bike-channel destocking. PVG increased 4.1%, led by a 28.8% increase in powersports net sales, although autos-related product lines declined.
Profitability diverged sharply between GAAP and adjusted measures. Gross margin improved to 31.5% from 30.4%, primarily from IEEPA tariff refunds, while mix and external costs remained offsets. Adjusted operating expenses declined to $68.7 million from $85.7 million and adjusted EBITDA increased to $50.4 million from $44.4 million. The quarter's adjusted EBITDA included an approximate $12 million IEEPA tariff-refund benefit. GAAP operating expenses increased to $205.2 million because of the $121.3 million loss on divestitures, producing a net loss attributable to FOX stockholders of $109.6 million.
The Marucci Divestiture was the central capital-allocation event. It closed on September 25, 2026, and approximately $200.0 million of proceeds funded debt reduction during the quarter. Total debt was $397.4 million and net debt was $352.0 million at October 2, 2026, while net leverage was approximately 2.4x. Operating cash flow for the first nine months was $74.7 million, and inventory was reduced to $334.3 million from $388.6 million, although the Company said inventory reduction reflected divested inventory and was partly offset by a build to support future demand.
For the first nine months, sales declined 3.7% to $1,065.2 million and adjusted EBITDA was $131.6 million versus $133.3 million. The Company captured approximately $41 million of gross savings under Phase 2, but stated that these savings were largely offset by external freight, commodities and fuel increases. Management is pursuing business-line rationalization, supply-chain and materials productivity, operating-expense reductions, and strategic alternatives for other assets.
Fourth-quarter guidance calls for net sales of $287 million to $313 million and adjusted EBITDA of $25 million to $30 million, with Marucci excluded. Fiscal-year net sales are guided to $1.35 billion to $1.38 billion, while adjusted EBITDA including IEEPA tariff refunds is guided to $157 million to $162 million. The outlook assumes current aluminum, steel and freight inflation levels, no further increases, and no additional tariff refunds.
Management, verbatim
This has been a quarter of significant change for FOX, and we have taken decisive steps to position the Company for improved execution. The divestment of Marucci simplified our portfolio, increased our focus on our core product offerings and allowed us to substantially reduce our debt.
Doug Grimm, Interim Chief Executive Officer
FOX has great brands, great products and a great team, and I believe there is a significant opportunity to turn those strengths into stronger, more consistent financial results.
Doug Grimm, Interim Chief Executive Officer
Not in the filing
stated, not guessed- Previous outlook figures provided on October 16, 2026 were not included in the supplied documents; no actual-versus-prior-guidance comparison can be made.
- Fourth-quarter guidance for gross margin, operating expenses and tax rate was not reported.
- Fiscal-year guidance for gross margin, operating expenses and tax rate was not reported.
- Quarterly operating cash flow, quarterly capital expenditures and free cash flow were not reported.
- A regular dividend declaration was not reported.
- A share-repurchase authorization or open-market repurchase activity was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.