📊 FOXF Key Takeaways
Is Fox Factory Holding Corp. (FOXF) a Good Investment?
Fox Factory is experiencing severe profitability deterioration with massive operating losses (-$522.9M) and negative net income (-$544.6M) despite modest 5.3% revenue growth, indicating fundamental operational challenges beyond temporary headwinds. The company is burning cash on operations relative to its revenue base with negative operating margins of -35.6% and an interest coverage ratio of -9.7x, raising critical concerns about debt sustainability. While liquidity metrics appear adequate, the combination of persistent losses, high leverage relative to equity, and minimal FCF margin of 1.8% suggests the business is in distress.
FOXF shows weak core fundamentals despite modest revenue growth, with deeply negative operating and net margins indicating severe earnings deterioration. While liquidity is still adequate and free cash flow remains positive, leverage is meaningful relative to impaired profitability, making the current growth profile low quality and financially fragile.
Why Buy Fox Factory Holding Corp. Stock? FOXF Key Strengths
- Maintained positive operating cash flow of $60.9M despite significant losses, indicating some underlying cash generation ability
- Current ratio of 2.86x and quick ratio of 1.37x demonstrate adequate short-term liquidity to service near-term obligations
- Gross margin of 30.2% remains reasonable, suggesting the core product/service maintains acceptable unit economics
- Revenue is still growing modestly year over year, indicating demand has not collapsed
- Liquidity appears solid with a 2.86x current ratio and 1.37x quick ratio
- Operating cash flow and free cash flow remain positive, providing some financial flexibility
FOXF Stock Risks: Fox Factory Holding Corp. Investment Risks
- Operating margin of -35.6% represents severe operational distress with losses expanding faster than revenue growth
- Negative interest coverage ratio of -9.7x indicates inability to cover debt service from operating earnings, creating refinancing risk
- ROE of -81.3% and ROA of -32.6% show massive shareholder value destruction and inefficient asset deployment
- Long-term debt of $523.5M against equity of only $670.2M creates significant leverage risk given unprofitable operations
- Dramatic dilution evident in EPS decline of -8243.8% YoY suggests significant equity issuance to fund losses
- Operating and net losses are extreme, with -35.6% operating margin and -37.1% net margin
- Returns on equity and assets are deeply negative, showing poor capital efficiency
- Debt burden is harder to support with negative interest coverage and over $523M of long-term debt
Key Metrics to Watch
- Operating income trajectory - critical to return to profitability to avoid covenant violations
- Quarterly cash burn rate and path to positive operating margins
- Debt refinancing needs and covenant compliance status
- Gross margin sustainability amid operational challenges
- Operating margin recovery and whether losses normalize materially
- Free cash flow generation relative to debt service and interest coverage
Fox Factory Holding Corp. (FOXF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.86x current ratio provides a solid financial cushion.
FOXF Profit Margin, ROE & Profitability Analysis
FOXF vs Market Sector: How Fox Factory Holding Corp. Compares
How Fox Factory Holding Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fox Factory Holding Corp. Stock Overvalued? FOXF Valuation Analysis 2026
Based on fundamental analysis, Fox Factory Holding Corp. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fox Factory Holding Corp. Balance Sheet: FOXF Debt, Cash & Liquidity
FOXF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fox Factory Holding Corp.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.85 reflects profitable operations.
FOXF Revenue Growth, EPS Growth & YoY Performance
FOXF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $359.1M | -$634.0K | $-0.02 |
| Q2 2025 | $348.5M | $1.9M | $0.05 |
| Q1 2025 | $333.5M | -$3.5M | $-0.08 |
| Q3 2024 | $331.1M | -$3.5M | $0.11 |
| Q2 2024 | $348.5M | $1.9M | $0.05 |
| Q1 2024 | $333.5M | -$3.5M | $-0.08 |
| Q3 2023 | $331.1M | $35.3M | $0.83 |
| Q2 2023 | $400.7M | $39.7M | $0.94 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fox Factory Holding Corp. Dividends, Buybacks & Capital Allocation
FOXF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fox Factory Holding Corp. (CIK: 0001424929)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FOXF
What is the AI rating for FOXF?
Fox Factory Holding Corp. (FOXF) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FOXF's key strengths?
Claude: Maintained positive operating cash flow of $60.9M despite significant losses, indicating some underlying cash generation ability. Current ratio of 2.86x and quick ratio of 1.37x demonstrate adequate short-term liquidity to service near-term obligations. ChatGPT: Revenue is still growing modestly year over year, indicating demand has not collapsed. Liquidity appears solid with a 2.86x current ratio and 1.37x quick ratio.
What are the risks of investing in FOXF?
Claude: Operating margin of -35.6% represents severe operational distress with losses expanding faster than revenue growth. Negative interest coverage ratio of -9.7x indicates inability to cover debt service from operating earnings, creating refinancing risk. ChatGPT: Operating and net losses are extreme, with -35.6% operating margin and -37.1% net margin. Returns on equity and assets are deeply negative, showing poor capital efficiency.
What is FOXF's revenue and growth?
Fox Factory Holding Corp. reported revenue of $1.5B.
Does FOXF pay dividends?
Fox Factory Holding Corp. does not currently pay dividends.
Where can I find FOXF SEC filings?
Official SEC filings for Fox Factory Holding Corp. (CIK: 0001424929) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FOXF's EPS?
Fox Factory Holding Corp. has a diluted EPS of $-13.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FOXF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Fox Factory Holding Corp. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FOXF stock overvalued or undervalued?
Valuation metrics for FOXF: ROE of -81.3% (sector avg: 15%), net margin of -37.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FOXF stock in 2026?
Our dual AI analysis gives Fox Factory Holding Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FOXF's free cash flow?
Fox Factory Holding Corp.'s operating cash flow is $60.9M, with capital expenditures of $34.0M. FCF margin is 1.8%.
How does FOXF compare to other Market stocks?
Vs Default sector averages: Net margin -37.1% (avg: 12%), ROE -81.3% (avg: 15%), current ratio 2.86 (avg: 1.8).