FOX Factory Makes CEO Transition & Reveals Preliminary Third-Quarter Results

Fox Factory Holding Corp. (NASDAQ: FOXF) announced that its board of directors has made a leadership change. Effective Oct. 16, 2026, the board appointed independent director Douglas Grimm as interim chief executive officer, and Mike Dennison is stepping down from his role as CEO and a member of the board, according to a company press release.

The board has retained Heidrick & Struggles, an executive search firm, to assist in identifying a permanent CEO. The search will be led by Chair Jean Hlay and directors Tom Duncan and Grimm.

Grimm, who is not a candidate for the permanent CEO role, will step down from the Audit Committee, but will remain on the board and continue to serve on the Transformation Committee. Alan Bazaar will succeed Grimm as chair of the Audit Committee. The company’s leadership team, including Chief Financial Officer Dennis Schemm, who leads the company’s profit optimization program, will continue to drive customer-led product innovation and growth.

“Doug is an accomplished executive with more than four decades of operating experience in the automotive and industrial sectors, and we are confident he is the right interim leader to accelerate execution in our businesses,” said Hlay. “He has not only led multiple successful transformations but also brings a deep understanding of our company’s heritage and the operational improvements we are executing on to reach our full potential. The board and I look forward to working with him in this new capacity while we conduct a rigorous search for a permanent leader.”

“FOX has earned its place as a leader in the powered vehicle and bike markets through an unwavering commitment to innovating performance-defining products for professional athletes and enthusiasts,” said Grimm. “It is an honor to serve as interim CEO at this important moment in FOX’s trajectory. Through my work on the Transformation Committee, I have seen firsthand how FOX’s talented team is actively working to deliver the best products and improve our financial position. I look forward to working closely with Dennis and our leadership team to execute on our strategy and advance a culture of excellence that our customers rely on.”

“On behalf of the board, I also want to thank Mike for his many contributions to FOX over the last seven years,” added Hlay. “Mike helped build FOX into a precision engineering company with strong brands and great products. His focus on engineering and innovation earned the loyalty of our OEM partners, athletes and enthusiasts who depend on our products.”

“It has been a privilege to lead FOX since 2019 and navigate periods of significant change in partnership with such a talented team,” said Dennison. “I am proud of what we accomplished together and look forward to supporting Doug and the team through the transition.”

Interim CEO Douglas Grimm’s Automotive & Industrial Background

Grimm has more than 40 years of experience in the automotive and industrial tech sectors, including as president and chief operating officer of Metaldyne Performance Group Inc., an automotive metals supplier with 60 manufacturing plants in 13 countries; as chairman of Electrical Components International (ECI), a global manufacturer of electrical distribution systems; and as founder, chairman and CEO of Grede Holdings LLC, a leading manufacturer of safety-critical iron castings.

Over his career, he led business transformations, integrations and more than 40 transactions. He currently serves as chairman of the board of Blue Bird Corp. and as a member of the board of directors of Lucid Group Inc.

FOX Factory Third-Quarter 2026 Results Fall Short of Guidance

Based on preliminary unaudited information, the company expects to report the following for the third quarter of fiscal 2026 ended Oct. 2, 2026:

• Net sales of $336 million to $340 million, compared to guidance of $355 million to $380 million. Net sales include approximately $33 million from Marucci Sports through the Sept. 25, 2026, closing of the divestiture, compared to approximately $46 million assumed in guidance for the full quarter.
• Adjusted EBITDA of $38 million to $42 million, excluding approximately $12 million of IEEPA tariff refunds received in the quarter, compared to guidance of $46 million to $54 million, which did not include any tariff refunds.

Third quarter results were below the company’s expectations, primarily due to lower sales and margin at Marucci Sports, which did not deliver to expectations prior to the closing; lower-than-expected sales and margins in the Powered Vehicles Group driven by a supply disruption and the associated higher operating costs, and unfavorable mix; operating challenges within the Aftermarket Applications Group in its upfit business; and to a lesser extent, softer-than-expected bike sales in the Specialty Sports Group.

The preliminary results above are based on information available to the company as of the date of this release and are subject to completion of the company’s quarter-end financial close procedures. Actual results may differ from these preliminary results. The company’s independent registered public accounting firm has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, the company’s independent registered public accounting firm does not express an opinion or any other form of assurance with respect thereto. Complete results will be included in the company’s Quarterly Report on Form 10-Q for the quarter ended Oct. 2, 2026.

FOX Factory Lowers Fourth-Quarter & Full-Year 2026 Outlook

The company is lowering its outlook for the fourth quarter of fiscal 2026:

• Net sales of $287 million to $313 million, in line with prior underlying guidance for its remaining core businesses, excluding Marucci Sports.
• Adjusted EBITDA of $23 million to $29 million, excluding Marucci Sports. Relative to prior implied assumptions for the fourth quarter, the updated adjusted EBITDA assumption reflects the divestiture of Marucci Sports, a continuation of the supply disruption and higher than anticipated inflation in steel, aluminum and freight costs in the Powered Vehicles Group, and within the Aftermarket Applications Group lower chassis availability and continued operational challenges in the upfit business; at the segment level, adjusted EBITDA margin for the Powered Vehicles Group and Aftermarket Applications Group is expected to be approximately flat versus the fourth quarter of 2025.

The company is lowering its fiscal 2026 outlook to reflect preliminary third-quarter results, the divestiture of Marucci Sports on Sept. 25, 2026, and updated expectations for the fourth quarter. For fiscal 2026, the company now expects:

• Net sales of $1.35 billion to $1.38 billion, compared to prior guidance of $1.42 billion to $1.47 billion. Approximately $63 million of the reduction reflects Marucci Sports, including approximately $50 million of fourth-quarter net sales included in prior guidance.
• Adjusted EBITDA of $140 million to $150 million, excluding approximately $14 million of IEEPA tariff refunds received in the second and third quarters, compared to prior guidance of $176 million to $196 million.
• Adjusted EBITDA, including IEEPA tariff refunds, in the range of $154 million to $164 million.

The outlook reflects input costs at current levels, including the aluminum, steel and freight inflation described above, and assumes no further increases. The company has received the majority of the IEEPA tariff refunds it expects, and the outlook does not include any additional refunds.

FOX FACTORY HOLDING CORP.
NET SALES EXCLUDING MARUCCI SPORTS
(in millions)
(unaudited)

Net sales excluding Marucci Sports is a non-GAAP measure. Amounts may not sum due to rounding.