FOXF Fox Factory Holding Corp

$FOXF crazy how good brands, products and big companies are ran by such poor management

$FOXF Dennison is out as CEO effective today, director Doug Grimm steps in as interim, and the board is already searching for a permanent replacement. Prelim Q3 sales came in at 336 to 340 million dollars vs guidance of 355 to 380 million, adjusted EBITDA 38 to 42 million vs 46 to 54 million guided. The full-year EBITDA guide got cut harder, to 140 to 150 million from 176 to 196 million. Three weeks ago Dennison was the one selling Marucci to pay down debt. Marucci missing before that sale even closed is one of the reasons listed for the miss.

$FOXF damn doesn’t this seem like a good value play at this price point? Assets and forward PE?

Fox Factory shares fell sharply after naming independent director Douglas Grimm interim CEO, replacing Mike Dennison, who stepped down from his executive role and board seat after leading the company since 2019. The leadership change coincided with a significant reduction in financial guidance following operational disruptions and weaker demand. Preliminary Q3 2026 revenue is expected to reach $336M–$340M, below prior guidance of $355M–$380M, while adjusted EBITDA is projected at $38M–$42M, excluding $12M in tariff refunds, versus the previous $46M–$54M range. Results were pressured by supply-chain disruptions and higher operating costs in the Powered Vehicles Group, equipment-related challenges in the Aftermarket Applications Group, and persistent weakness in bicycle demand, alongside margin pressure and the divestiture of Marucci Sports. Fox Factory cut its FY2026 revenue outlook to $1.35B–$1.38B from $1.42B–$1.47B, below Wall Street’s $1.44B consensus. $FOXF

$FOXF Follow-up: Fox Factory, maker of FOX bike and vehicle suspension, cut its FY2026 adjusted EBITDA outlook (ex tariff refunds) to $140-150M from $176-196M as CEO Mike Dennison exited Oct 16; director Doug Grimm is interim CEO. Selling bat maker Marucci for $225M (Sept 25 8-K) is only part; Q4 also cites a supply disruption and steel, aluminum, freight inflation. The ~$41M midpoint cut compares with ~$778M market value at $18.50 (16:00 ET Oct 15, 2026). Offset: Marucci's $200M cash cut annual interest ~$16M. Q3 call Nov 5.

$FOXF Fox Factory makes bike and truck shocks. In 2023 it bought a baseball bat maker at a $572 million value. On Sept 25 it sold it for $225 million, to the bat maker's own bosses. That's about 39 cents on the dollar. Every dollar of cash went to its debt.

$FOXF Fox Factory closed the 225M sale of Marucci Sports on Friday. The 200M in cash went straight to the credit facility. The balance sheet math is the point. Net leverage drops from 3.7x to about 2.7x, and annual interest expense falls about 16M (17M once the 25M note due Dec 31 pays). CEO Mike Dennison was unusually candid: Marucci "did not deliver the returns we expected inside Fox." Capital is going to debt paydown and core performance products. The process ran since February: 80+ potential buyers contacted, 15 indications of interest. The buyer is a group led by Marucci's own senior management. One watch item: that 25M is a note, not cash. The extra ~1M of interest savings only materializes if it is paid by year-end.