# EDGAR Filing Document

**Accession Number:** 0001424929
**File Stem:** 0001424929-25-000092
**Filing Date:** 2025-11
**Character Count:** 187560
**Document Hash:** bac8b8e6c358d121056660e66c05ba59
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001424929-25-000092.hdr.sgml**: 20251107

**ACCESSION NUMBER**: 0001424929-25-000092

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 86

**CONFORMED PERIOD OF REPORT**: 20251003

**FILED AS OF DATE**: 20251107

**DATE AS OF CHANGE**: 20251106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FOX FACTORY HOLDING CORP
- **CENTRAL INDEX KEY:** 0001424929
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTORCYCLES, BICYCLES & PARTS [3751]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0102

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36040
- **FILM NUMBER:** 251459842

**BUSINESS ADDRESS:**
- **STREET 1:** 2055 SUGARLOAF CIRCLE, SUITE 300
- **CITY:** DULUTH
- **STATE:** GA
- **ZIP:** 30097
- **BUSINESS PHONE:** 831-274-6500

**MAIL ADDRESS:**
- **STREET 1:** 2055 SUGARLOAF CIRCLE, SUITE 300
- **CITY:** DULUTH
- **STATE:** GA
- **ZIP:** 30097

?xml version='1.0' encoding='ASCII'? foxf-20251003

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended October 3, 2025** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _____ to _____** 

**Commission File Number: 001-36040** 

**Fox Factory Holding Corp.** 

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **26-1647258** |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |

---

**2055 Sugarloaf Circle, Suite 300, Duluth GA 30097**

**(Address of principal executive offices) (Zip Code)**

**(831) 274-6500** 

**(Registrant's telephone number, including area code)**

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **Title of Each Class** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
| Common Stock, par value $0.001 per share | FOXF | The NASDAQ Stock Market LLC |
|  |  | (NASDAQ Global Select Market) |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Emerging growth company ☐ <br> Non-accelerated filer ☐ Smaller reporting company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

As of October 30, 2025, there were 41,801,357 shares of the registrant's common stock outstanding.

------

**Fox Factory Holding Corp.**

**FORM 10-Q**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| <u>[PART I. FINANCIAL INFORMATION](#i72ddbf5b43d2414d8aca6a34582c7ed2_10)</u> | <u>[PART I. FINANCIAL INFORMATION](#i72ddbf5b43d2414d8aca6a34582c7ed2_10)</u> | **Page** |
| <u>[Item 1.](#i72ddbf5b43d2414d8aca6a34582c7ed2_13)</u> | <u>[Financial Statements](#i72ddbf5b43d2414d8aca6a34582c7ed2_13)</u> |  |
|  | Unaudited Condensed Consolidated Balance Sheets as of October 3, 2025 and January 3, 2025 | <u>[3](#i72ddbf5b43d2414d8aca6a34582c7ed2_13)</u> |
|  | Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended October 3, 2025 and September 27, 2024 | <u>[4](#i72ddbf5b43d2414d8aca6a34582c7ed2_19)</u> |
|  | Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended October 3, 2025 and September 27, 2024 | <u>[5](#i72ddbf5b43d2414d8aca6a34582c7ed2_22)</u> |
|  | Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended October 3, 2025 and September 27, 2024 | <u>[6](#i72ddbf5b43d2414d8aca6a34582c7ed2_25)</u> |
|  | Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended October 3, 2025 and September 27, 2024 | <u>[8](#i72ddbf5b43d2414d8aca6a34582c7ed2_28)</u> |
|  | Notes to Unaudited Condensed Consolidated Financial Statements | <u>[10](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)</u> |
| <u>[Item 2.](#i72ddbf5b43d2414d8aca6a34582c7ed2_85)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i72ddbf5b43d2414d8aca6a34582c7ed2_85)</u> | <u>[31](#i72ddbf5b43d2414d8aca6a34582c7ed2_85)</u> |
| <u>[Item 3.](#i72ddbf5b43d2414d8aca6a34582c7ed2_115)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i72ddbf5b43d2414d8aca6a34582c7ed2_115)</u> | <u>[44](#i72ddbf5b43d2414d8aca6a34582c7ed2_115)</u> |
| <u>[Item 4.](#i72ddbf5b43d2414d8aca6a34582c7ed2_118)</u> | <u>[Controls and Procedures](#i72ddbf5b43d2414d8aca6a34582c7ed2_118)</u> | <u>[44](#i72ddbf5b43d2414d8aca6a34582c7ed2_118)</u> |
| <u>[PART II. OTHER INFORMATION](#i72ddbf5b43d2414d8aca6a34582c7ed2_121)</u> | <u>[PART II. OTHER INFORMATION](#i72ddbf5b43d2414d8aca6a34582c7ed2_121)</u> |  |
| <u>[Item 1.](#i72ddbf5b43d2414d8aca6a34582c7ed2_124)</u> | <u>[Legal Proceedings](#i72ddbf5b43d2414d8aca6a34582c7ed2_124)</u> | <u>[45](#i72ddbf5b43d2414d8aca6a34582c7ed2_124)</u> |
| <u>[Item 1A.](#i72ddbf5b43d2414d8aca6a34582c7ed2_127)</u> | <u>[Risk Factors](#i72ddbf5b43d2414d8aca6a34582c7ed2_127)</u> | <u>[45](#i72ddbf5b43d2414d8aca6a34582c7ed2_127)</u> |
| <u>[Item 2.](#i72ddbf5b43d2414d8aca6a34582c7ed2_130)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i72ddbf5b43d2414d8aca6a34582c7ed2_130)</u> | <u>[46](#i72ddbf5b43d2414d8aca6a34582c7ed2_130)</u> |
| <u>[Item 3.](#i72ddbf5b43d2414d8aca6a34582c7ed2_133)</u> | <u>[Defaults Upon Senior Securities](#i72ddbf5b43d2414d8aca6a34582c7ed2_133)</u> | <u>[47](#i72ddbf5b43d2414d8aca6a34582c7ed2_133)</u> |
| <u>[Item 4.](#i72ddbf5b43d2414d8aca6a34582c7ed2_136)</u> | <u>[Mine Safety Disclosures](#i72ddbf5b43d2414d8aca6a34582c7ed2_136)</u> | <u>[47](#i72ddbf5b43d2414d8aca6a34582c7ed2_136)</u> |
| <u>[Item 5.](#i72ddbf5b43d2414d8aca6a34582c7ed2_139)</u> | <u>[Other Information](#i72ddbf5b43d2414d8aca6a34582c7ed2_139)</u> | <u>[47](#i72ddbf5b43d2414d8aca6a34582c7ed2_139)</u> |
| <u>[Item 6.](#i72ddbf5b43d2414d8aca6a34582c7ed2_142)</u> | <u>[Exhibits](#i72ddbf5b43d2414d8aca6a34582c7ed2_142)</u> | <u>[48](#i72ddbf5b43d2414d8aca6a34582c7ed2_142)</u> |
| <u>[Signatures](#i72ddbf5b43d2414d8aca6a34582c7ed2_145)</u> | <u>[Signatures](#i72ddbf5b43d2414d8aca6a34582c7ed2_145)</u> | <u>[49](#i72ddbf5b43d2414d8aca6a34582c7ed2_145)</u> |

---

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

 **FOX FACTORY HOLDING CORP.**

**Condensed Consolidated Balance Sheets**

**(in thousands, except per share data)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **As of**<br>**October 3, 2025** | **As of**<br>**January 3, 2025** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $65372 | $71674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable (net of allowances of $2,484 and $1,848, respectively) | 198429 | 165827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 412070 | 404736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | 82943 | 85443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 758814 | 727680 |
| Property, plant and equipment, net | 240463 | 246393 |
| Lease right-of-use assets | 111741 | 104019 |
| Deferred tax assets | 50475 | 46842 |
| Goodwill | 378876 | 639505 |
| Trademarks and brands, net | 251793 | 264126 |
| Customer and distributor relationships, net | 145125 | 161585 |
| Core technologies, net | 20912 | 23154 |
| Other assets | 16725 | 21484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1974924 | $2234788 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $148741 | $144067 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 81499 | 91427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 24286 | 24286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 254526 | 259780 |
| Revolver | 151000 | 153000 |
| Term Loans, less current portion | 512365 | 527775 |
| Other liabilities | 101209 | 93089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1019100 | 1033644 |
| Commitments and contingencies (Refer to <u>[Note 8 - Commitments and Contingencies](#i72ddbf5b43d2414d8aca6a34582c7ed2_52)</u>) |  |  |
| Non-controlling interest | (145) | (38) |
| Stockholders' equity |  |  |
| Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of October 3, 2025 and January 3, 2025 |  |  |
| Common stock, $0.001 par value — 90,000 authorized; 42,691 shares issued and 41,801 outstanding as of October 3, 2025; 42,574 shares issued and 41,684 outstanding as of January 3, 2025 | 42 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 348937 | 339266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost; 890 common shares as of October 3, 2025 and January 3, 2025 | (13754) | (13754) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 2924 | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 617820 | 875404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 955969 | 1201182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1974924 | $2234788 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Condensed Consolidated Statements of Operations**

**(in thousands, except per share data)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Net sales | $376355 | $359121 | $1106249 | $1041084 |
| Cost of sales | 261903 | 251642 | 765127 | 719484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 114452 | 107479 | 341122 | 321600 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 262129 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 37662 | 32436 | 114037 | 106819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 32685 | 29103 | 96748 | 89828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 18621 | 16103 | 53507 | 45331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of purchased intangibles | 10383 | 11035 | 31659 | 33355 |
| Total operating expenses | 99351 | 88677 | 558080 | 275333 |
| Income (loss) from operations | 15101 | 18802 | (216958) | 46267 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 13912 | 14228 | 41234 | 41422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | (435) | (456) | (1950) | (458) |
| Income (loss) before income taxes | 1624 | 5030 | (256242) | 5303 |
| Provision (benefit) from income taxes | 2286 | 250 | 1449 | (1388) |
| Net (loss) income | $(662) | $4780 | $(257691) | $6691 |
| Less: net loss attributable to non-controlling interest | (28) |  | (107) |  |
| Net (loss) income attributable to FOX stockholders | $(634) | $4780 | $(257584) | $6691 |
| (Net loss) earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.02) | $0.11 | $(6.17) | $0.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.02) | $0.11 | $(6.17) | $0.16 |
| Weighted-average shares used to compute earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 41816 | 41699 | 41771 | 41674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 41816 | 41724 | 41771 | 41719 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Condensed Consolidated Statements of Comprehensive (Loss) Income**

**(in thousands)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Net (loss) income | $(662) | $4780 | $(257691) | $6691 |
| Other comprehensive (loss) income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in net unrealized gains | 275 | (3822) | (1543) | (1704) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net gains on interest rate swap to net earnings | (1062) | (1779) | (4066) | (5339) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax effects | (189) | (1339) | (1336) | (1659) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change, net of tax effects | (976) | (6940) | (6945) | (8702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | (4145) | 2487 | 9645 | (1394) |
| Other comprehensive (loss) income | (5121) | (4453) | 2700 | (10096) |
| Comprehensive (loss) income | $(5783) | $327 | $(254991) | $(3405) |
| Less: comprehensive loss attributable to non-controlling interest | (28) |  | (107) |  |
| Comprehensive (loss) income attributable to FOX stockholders | $(5755) | $327 | $(254884) | $(3405) |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

 **FOX FACTORY HOLDING CORP.**

**Condensed Consolidated Statements of Stockholders' Equity**

**(in thousands)**

**(unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Treasury** | **Treasury** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss)** | **Retained earnings** | **Total stockholders' equity** | **Non-controlling interest** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss)** | **Retained earnings** | **Total stockholders' equity** | **Non-controlling interest** |
| **Balance - December 29, 2023** | 42844 | $42 | 890 | $(13754) | $348346 | $9041 | $878086 | $1221761 | $— |
| Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding | 40 |  |  |  | (1315) |  |  | (1315) |  |
| Purchase and retirement of common stock | (378) |  |  |  | (16077) |  | (9082) | (25159) |  |
| Stock-based compensation expense |  |  |  |  | 3906 |  |  | 3906 |  |
| Other comprehensive loss |  |  |  |  |  | (3208) |  | (3208) |  |
| Net loss |  |  |  |  |  |  | (3496) | (3496) |  |
| **Balance - March 29, 2024** | 42506 | $42 | 890 | $(13754) | $334860 | $5833 | $865508 | $1192489 | $— |
| Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding | 67 |  |  |  | (1229) |  |  | (1229) |  |
| Purchase and retirement of common stock |  |  |  |  |  |  | (52) | (52) |  |
| Stock-based compensation expense |  |  |  |  | 2203 |  |  | 2203 |  |
| Other comprehensive loss |  |  |  |  |  | (2435) |  | (2435) |  |
| Net income |  |  |  |  |  |  | 5407 | 5407 |  |
| **Balance - June 28, 2024** | 42573 | $42 | 890 | $(13754) | $335834 | $3398 | $870863 | $1196383 | $— |
| Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding | 1 |  |  |  | (68) |  |  | (68) |  |
| Purchase and retirement of common stock |  |  |  |  |  |  | (49) | (49) |  |
| Stock-based compensation expense |  |  |  |  | 465 |  |  | 465 |  |
| Other comprehensive loss |  |  |  |  |  | (4453) |  | (4453) |  |
| Net income |  |  |  |  |  |  | 4780 | 4780 |  |
| **Balance - September 27, 2024** | 42574 | $42 | 890 | $(13754) | $336231 | $(1055) | $875594 | $1197058 | $— |

---

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Treasury** | **Treasury** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss)** | **Retained earnings** | **Total stockholders' equity** | **Non-controlling interest** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss)** | **Retained earnings** | **Total stockholders' equity** | **Non-controlling interest** |
| **Balance - January 3, 2025** | 42574 | $42 | 890 | $(13754) | $339266 | $224 | $875404 | $1201182 | $(38) |
| Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding | 28 |  |  |  | (580) |  |  | (580) |  |
| Stock-based compensation expense |  |  |  |  | 3355 |  |  | 3355 |  |
| Other comprehensive loss |  |  |  |  |  | (4369) |  | (4369) |  |
| Net loss |  |  |  |  |  |  | (259694) | (259694) | (40) |
| **Balance - April 4, 2025** | 42602 | $42 | 890 | $(13754) | $342041 | $(4145) | $615710 | $939894 | $(78) |
| Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding | 89 |  |  |  | (671) |  |  | (671) |  |
| Stock-based compensation expense |  |  |  |  | 4562 |  |  | 4562 |  |
| Other comprehensive income |  |  |  |  |  | 12190 |  | 12190 |  |
| Net income |  |  |  |  |  |  | 2744 | 2744 | (39) |
| **Balance - July 4, 2025** | 42691 | $42 | 890 | $(13754) | $345932 | $8045 | $618454 | $958719 | $(117) |
| Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding |  |  |  |  | (15) |  |  | (15) |  |
| Stock-based compensation expense |  |  |  |  | 3020 |  |  | 3020 |  |
| Other comprehensive loss |  |  |  |  |  | (5121) |  | (5121) |  |
| Net loss |  |  |  |  |  |  | (634) | (634) | (28) |
| **Balance - October 3, 2025** | 42691 | $42 | 890 | $(13754) | $348937 | $2924 | $617820 | $955969 | $(145) |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

 **FOX FACTORY HOLDING CORP.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)** 

---

| | | |
|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** |
| OPERATING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income | $(257691) | $6691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | 262129 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 69449 | 61754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for inventory reserve | 4152 | 2685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 10937 | 6574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired inventory step-up | 342 | 4485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of loan fees | 3978 | 2572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred gains on prior swap settlements | (783) | (3189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from interest rate swap settlements | 3320 | 2150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | (4695) | (752) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of effects of acquisitions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (30725) | (21825) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (4885) | (28997) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (4847) | (25270) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other assets | 607 | 7761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (11) | 24154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (8511) | 11318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 42766 | 50111 |
| INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (27169) | (32087) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions of businesses, net of cash acquired |  | (5041) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of other assets, net of cash acquired |  | (5344) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (27169) | (42472) |
| FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolver | 77000 | 169000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on revolver | (79000) | (329000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of debt |  | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of term debt | (18214) | (13214) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase and retirement of common stock |  | (25000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases from stock compensation program, net | (1266) | (2613) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred debt issuance/modification costs |  | (855) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (21480) | (1682) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (419) | (358) |
| CHANGE IN CASH AND CASH EQUIVALENTS | (6302) | 5599 |
| CASH AND CASH EQUIVALENTS—Beginning of period | 71674 | 83642 |
| CASH AND CASH EQUIVALENTS—End of period | $65372 | $89241 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** |
| SUPPLEMENTAL CASH FLOW INFORMATION: | **October 3, 2025** | **September 27, 2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax payment | $10999 | $24641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $37905 | $43389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts included in the measurement of lease liabilities | $15699 | $13961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets obtained in exchange for lease obligations | $16309 | $38719 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures included in accounts payable | $782 | $947 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**1. Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies -** Fox Factory Holding Corp. (the "Company") designs, engineers, manufactures, and markets premium products and systems that deliver championship-level performance for customers worldwide. Our premium brand, performance-defining products and systems are used primarily on bicycles ("bikes"), side-by-side vehicles ("side-by-sides"), on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles ("ATVs"), snowmobiles, motorcycles, and specialty vehicles and applications. In addition, we also offer premium baseball and softball gear and equipment. Certain of our products are specifically designed and marketed to some of the leading cycling and powered vehicle original equipment manufacturers ("OEMs"), while others are distributed to consumers through a global network of dealers and distributors and through direct-to-customer channels.

Throughout this Form 10-Q, unless stated otherwise or as the context otherwise requires, the "Company," "FOX," "Fox Factory," "we," "us," "our," and "ours" refer to Fox Factory Holding Corp. and its operating subsidiaries on a consolidated basis.

**Basis of Presentation -** The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States of America ("U.S." or "United States") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended January 3, 2025 included in the Company's Annual Report on Form 10-K, as filed with the SEC on February 28, 2025. In management's opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results for the full fiscal year.

**Fiscal Year Calendar -** The Company operates on a 52-53-week fiscal year calendar. For 2025 and 2024, the Company's fiscal year will end or has ended on January 2, 2026 and January 3, 2025, respectively. The 12-month periods ended January 2, 2026 and January 3, 2025, will include or have included 52 and 53 weeks, respectively. The three and nine-month periods ended October 3, 2025 and September 27, 2024 each included 13 weeks and 39 weeks, respectively.

**Principles of Consolidation -** These condensed consolidated financial statements include the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

**Summary of Significant Accounting Policies -** There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended January 3, 2025, as filed with the SEC on February 28, 2025 that had a material impact on our condensed consolidated financial statements and related notes.

**Revenue Recognition** - Revenues are generated from the sale of performance-defining products and systems to customers worldwide. The Company's performance-defining products and systems are solutions that improve performance of powered vehicles, bikes, and baseball and softball gear and equipment. Powered vehicles include side-by-sides, on-road vehicles with and without off-road capabilities, purpose-built off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks.

Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer, generally at the time of shipment. Contracts are generally in the form of purchase orders and are governed by standard terms and conditions. For larger OEMs, the Company may also enter into master agreements. Sales tax and other similar taxes are excluded from revenues. Revenues generated from upfit packages generally do not include the vehicle chassis, as the Company is not the principal in this arrangement and the automotive dealer purchases the chassis directly from the OEM. The Company is required to place a deposit on Stellantis vehicle chassis, however, that deposit is refunded when the chassis is sold through to our customer. For other chassis, the Company entered into floor plan financing agreements, in which the Company pays interest expense based on the duration of time the chassis stay on the Company's premises. Revenues generated from custom upfit packages from the Outside Van and Upfit UTV subsidiaries generally include the vehicle chassis, of which the Company has the risks and rewards of ownership. For certain upfit packages, revenue is recognized over-time as work is performed based on actual costs incurred.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

We elected as a practical expedient to not capitalize the incremental costs to obtain contracts with customers since the amortization period would have been one year or less.

Provisions for discounts, rebates, sales incentives, returns, and other adjustments are generally provided for in the period the related sales are recorded, based on management's assessment of historical trends and projection of future results.

**Segments -** We have three operating and reportable segments: Powered Vehicles Group ("PVG"), Aftermarket Applications Group ("AAG"), and Specialty Sports Group ("SSG"). The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The CODM for the Company is the Chief Executive Officer.

**Goodwill, Intangible Assets, and Long-Lived Assets**

*Goodwill*

Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis, the Company performs a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, it will perform a quantitative analysis; otherwise, no further evaluation is necessary.

For the quantitative impairment test, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. The income approach employs a discounted cash flow model, projecting revenue and cash flows over a multi-year period. These projections are based on management's estimates, historical performance trends, and industry outlooks. These cash flows, along with a terminal value, are discounted to their present value using a weighted-average cost of capital ("WACC") that reflects a market rate appropriate for each reporting unit. The market approach employs multiples for public companies that reasonably compare to the reporting units. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Additional impairment may be recognized in connection with the write-off of associated deferred tax liabilities that are no longer needed due to the decrease in goodwill. All impairments, if any, are charged directly to earnings.

In early fiscal year 2025, the Company identified a triggering event related to adverse changes in U.S. tariff policies, new and expanded tariffs enacted by the current presidential administration, and resulting sustained decline in our stock price, and performed a quantitative impairment assessment. Based on the results of this assessment, the Company recorded a non-cash goodwill impairment charge of $262,129 within operating expenses in the first quarter, which impacted all reporting units. The impairment charge reflects the amount by which the carrying values of the reporting units exceeded their estimated fair values. In the second quarter, the Company conducted a qualitative assessment and concluded that no additional impairment existed as of July 4, 2025. The annual impairment assessment was performed in the third quarter, and the Company concluded that it was not more likely than not that the fair values of the reporting units were less than the carrying values. No additional impairment charges have been incurred to date. Goodwill activity attributable to each reporting unit consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **PVG** | **AAG** | **SSG** | **Total** |
| Balance as of January 3, 2025 | $94063 | $258243 | $287199 | $639505 |
| Impairment losses | (51206) | (191823) | (19100) | (262129) |
| Purchase price adjustments (Refer to <u>[Note 14. Acquisitions](#i72ddbf5b43d2414d8aca6a34582c7ed2_73)</u>) | 1374 |  |  | 1374 |
| Currency translation and other adjustments | 50 |  | 76 | 126 |
| Balance as of October 3, 2025 | $44281 | $66420 | $268175 | $378876 |

---

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

*Indefinite-lived intangible assets*

Certain trademarks and trade names, including FOX and others from certain subsidiaries, are considered to be indefinite life intangibles, and are not amortized but are subject to testing for impairment annually. Due to the triggering event as described above, the indefinite-lived intangible assets were also assessed for impairment. The Company concluded that no impairment existed as of April 4, 2025. A qualitative assessment performed in the second quarter led to the same conclusion that no impairment existed as of July 4, 2025. The annual impairment assessment conducted in the third quarter reached the same conclusion.

*Finite-lived intangible assets and other long-lived assets*

We assess the recoverability of identifiable finite-lived intangible assets whenever events or changes in circumstances indicate that an asset or asset group's carrying amount may be impaired. Impairment of certain finite-lived intangible assets, particularly customer relationships, certain trade names, and core technology, is measured by comparing the carrying amount of the asset group to which the assets are assigned to the sum of the undiscounted estimated future cash flows the asset group is expected to generate. If the asset or asset group is considered to be impaired, the amount of such impairment would be measured by the difference between the carrying amount of the asset and its fair value.

The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the assets, an impairment loss is recorded to write the assets down to their estimated fair values. Fair value is estimated based on discounted future cash flows.

Due to the triggering event as described above, the Company performed an impairment test for long-lived assets including finite-lived intangible assets and concluded that no impairment existed as of April 4, 2025.

**Restructuring** - The Company undertook various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company's long-term strategic objectives, which resulted in costs for employee severance, relocation expenses, consulting and advisory fees, and losses related to lease terminations and disposal of fixed assets. The majority of the costs were related to our footprint consolidations and workforce reductions within AAG and SSG. For the three-month period ended October 3, 2025, approximately 65% of restructuring expenses and related losses were related to AAG, with the remainder primarily attributable to SSG. For the nine-month period ended October 3, 2025, approximately 63% of restructuring expenses and related losses were attributable to SSG, with the majority of the remainder related to AAG. The majority of cash payments associated with these initiatives are expected to occur by the end of fiscal year ending January 2, 2026.

**Use of Estimates -** The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management's estimates.

**Reclassifications** - We reclassified certain prior period amounts within our condensed consolidated balance sheet and condensed consolidated statement of cash flows to conform to our current year presentation. The reclassifications did not have any impact on net income.

**Certain Significant Risks and Uncertainties** - As of October 3, 2025, the Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, disruptions in the operations of its or its customers' facilities, or along its global supply chain, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed.

International geopolitical conflicts, including continuing tensions between Taiwan and China, the Russian war in Ukraine, the Israel-Palestine conflict, and rising tensions in the Middle East, on the global economy, energy supplies and raw materials may prove to negatively impact the Company's business and operations. Additionally, the imposition of U.S. tariffs on China, Canada, Mexico, Taiwan and other countries, and retaliatory tariffs by these countries on the U.S. may increase costs, disrupt supply chains, and impact demand for the Company's products. Furthermore, domestic and foreign political instability and

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

uncertainty may create economic volatility, regulatory changes, and trade disruptions that pose additional risks to the Company's business environment.

**Fair Value Measurements and Financial Instruments -** The Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, that requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The carrying amounts of the Company's financial instruments, including cash, receivables, accounts payable, accrued liabilities, and current portion of long-term debt approximate their fair values due to their short-term nature. The carrying amounts of the Company's revolver and long-term debt, excluding current portion, approximate their fair values because the interest rates vary with the market.

**Non-GAAP Financial Measures -** Total adjusted EBITDA presents the sum of the results of our three operating segments and unallocated corporate expenses on a consolidated basis. We believe that total adjusted EBITDA is an operating performance measure that measures operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets among otherwise comparable companies. In reviewing our corporate operating results, we also believe it is important to review the aggregate consolidated performance of all of our segments on the same basis we review the performance of each of our segments and draw comparisons between periods based on the same measure of consolidated performance.

Management provides this non-GAAP financial measure as a supplemental tool to assist investors in understanding our performance and evaluating our ongoing results of operations. Many investors are interested in understanding the performance of our business by comparing our results from ongoing operations from one period to the next and would ordinarily add back items that are not part of normal day-to-day operations of our business. By providing total adjusted EBITDA, together with reconciliations, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives.

However, total adjusted EBITDA is not a measurement of financial performance under U.S. GAAP, and our total adjusted EBITDA may not be comparable to similarly titled measures of other companies. Total adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. For example, total adjusted EBITDA:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect the Company's cash expenditures or requirements for capital expenditures or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect changes in, or cash requirements for, the Company's working capital needs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not reflect any costs related to the current or future replacement of assets being depreciated or amortized.

We also use total adjusted EBITDA:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as a measure of operating performance to assist us in comparing our operating performance on a consistent basis because it removes the impact of items not directly resulting from our core operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for planning purposes, including the preparation of our internal annual operating budgets and financial projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to evaluate the performance and effectiveness of our operational strategies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• as a basis to calculate incentive compensation payments for our key employees.

Please see <u>[Note 15 – Segment Information](#i72ddbf5b43d2414d8aca6a34582c7ed2_76)</u> for our definition of adjusted EBITDA. Under ASC 280, adjusted EBITDA is our measure of segment profitability and financial performance of our operating segments, and when used in this context, the term

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

adjusted EBITDA is a financial measure prepared in accordance with U.S. GAAP. Adjusted EBITDA reported for the Company on a consolidated basis is a non-U.S. GAAP financial measure.

**Recent Accounting Pronouncements**

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments in ASU 2023-07 require disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity's CODM. The amendments in this update also expand the interim segment disclosure requirements. These amendments do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company adopted ASU 2023-07 in the Annual Report on Form 10-K for fiscal year 2024 ended January 3, 2025 and in the Quarterly Report on Form 10-Q for the first quarter of fiscal 2025. Refer to <u>[Note 15 – Segment Information](#i72ddbf5b43d2414d8aca6a34582c7ed2_76)</u> for further details.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvement to Income Tax Disclosures" to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company has completed its evaluation of ASU 2023-09 and intends to adopt the standard in its Annual Report on Form 10-K for the fiscal year ending January 2, 2026. Upon adoption, the Company will be required to provide enhanced income tax disclosures, including further disaggregation of the effective tax rate reconciliation and separate disclosure of income taxes paid by jurisdiction. The new guidance requires disclosure of income tax rate drivers and income taxes paid at the federal, state, and significant foreign jurisdiction levels.

In November 2024, the FASB issued ASU 2024-03 and in January 2025, the FASB issued ASU 2025-01, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," which adds new disclosure requirements, including more detailed information about certain income statement expense captions and a separate disclosure for selling expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with retrospective application and early adoption permitted. The Company is currently evaluating the impact of the accounting standard updates on its consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, "Financial Instrument - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets." The ASU provides a practical expedient for estimating current expected credit losses by allowing entities to assume that conditions existing as of the balance sheet date do not change for the remaining life of the assets. The guidance is effective for interim and annual reporting periods beginning after December 15, 2025. The Company is currently evaluating the impact of the accounting standard updates on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." The amendments in ASU 2025-06 clarify and modernize the capitalization of costs related to internal-use software. The ASU removes all references to project stages throughout Subtopic 350-40 and clarifies the threshold entities apply to begin capitalizing costs. The guidance is effective for interim and annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of the accounting standard updates on its consolidated financial statements and related disclosures.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**2. Revenues**

The following table summarizes total net sales by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Powered Vehicles Group | $125872 | $109336 | $371484 | $345244 |
| Aftermarket Applications Group | 117767 | 100283 | 343825 | 309264 |
| Specialty Sports Group | 132716 | 149502 | 390940 | 386576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $376355 | $359121 | $1106249 | $1041084 |

---

The following table summarizes total net sales by sales channel:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| OEM | $166963 | $161270 | $497041 | $450378 |
| Aftermarket/Non-OEM<sup>(1)</sup> | 209392 | 197851 | 609208 | 590706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $376355 | $359121 | $1106249 | $1041084 |
| (1) Aftermarket/non-OEM sales include sales to dealers and dealerships, distributors, sales through our websites, retail sales, and various others, including Marucci's sales within each of these respective channels. | (1) Aftermarket/non-OEM sales include sales to dealers and dealerships, distributors, sales through our websites, retail sales, and various others, including Marucci's sales within each of these respective channels. | (1) Aftermarket/non-OEM sales include sales to dealers and dealerships, distributors, sales through our websites, retail sales, and various others, including Marucci's sales within each of these respective channels. | (1) Aftermarket/non-OEM sales include sales to dealers and dealerships, distributors, sales through our websites, retail sales, and various others, including Marucci's sales within each of these respective channels. | (1) Aftermarket/non-OEM sales include sales to dealers and dealerships, distributors, sales through our websites, retail sales, and various others, including Marucci's sales within each of these respective channels. |

---

The following table summarizes total net sales generated by geographic location of the customer:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| North America | $289340 | $264808 | $833317 | $827623 |
| Europe | 50298 | 53789 | 156722 | 118563 |
| Asia | 31800 | 34581 | 98350 | 79066 |
| Rest of the world | 4917 | 5943 | 17860 | 15832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $376355 | $359121 | $1106249 | $1041084 |

---

**3. Inventory**

Inventory consisted of the following:

---

| | | |
|:---|:---|:---|
| | **October 3, 2025** | **January 3, 2025** |
| Raw materials | $243145 | $245368 |
| Work-in-process | 21177 | 16519 |
| Finished goods | 147748 | 142849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total inventory | $412070 | $404736 |

---

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**4. Prepaids and Other Current Assets**

Prepaids and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
| | **October 3, 2025** | **January 3, 2025** |
| Prepaid chassis deposits | $48709 | $47094 |
| Advanced payments and prepaid contracts | 19980 | 26496 |
| Other current assets | 14254 | 11853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total prepaid and other current assets | $82943 | $85443 |

---

**5. Property, Plant and Equipment, net**

Property, plant and equipment, net consisted of the following:

---

| | | |
|:---|:---|:---|
| | **October 3, 2025** | **January 3, 2025** |
| Machinery and manufacturing equipment | $190225 | $177261 |
| Building and building improvements | 83654 | 82224 |
| Leasehold improvements | 44041 | 40663 |
| Internal-use computer software | 41543 | 38572 |
| Information systems, office equipment and furniture | 32146 | 28725 |
| Transportation equipment | 26375 | 23299 |
| Land and land improvements | 15561 | 15521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment | 433545 | 406265 |
| Less: accumulated depreciation and amortization | (193082) | (159872) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment, net | $240463 | $246393 |

---

The Company's long-lived assets by geographic location are as follows:

---

| | | |
|:---|:---|:---|
| | **October 3, 2025** | **January 3, 2025** |
| United States | $201214 | $203937 |
| International | 39249 | 42456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-lived assets | $240463 | $246393 |

---

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**6. Accrued Expenses**

Accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
| | **October 3, 2025** | **January 3, 2025** |
| Payroll and related expenses | $23298 | $22504 |
| Current portion of lease liabilities | 17424 | 16683 |
| Warranty | 15950 | 21593 |
| Accrued sales rebate | 12648 | 7852 |
| Income tax payable | 4449 | 9343 |
| Other accrued expenses | 7730 | 13452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accrued expenses | $81499 | $91427 |

---

The Company generally provides a limited warranty for products for a one-, two-, or three-year period beginning on: (i) in the case of OEM sales, the date the bike or powered vehicle is purchased from an authorized OEM where the product is incorporated as original equipment on the purchased bike or powered vehicle; (ii) in the case of aftermarket/non-OEM sales, the date the product is originally purchased from an authorized dealer; or (iii) in the case of upfitting sales, the date of the retail sale to an end customer. Activity related to warranties is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Beginning warranty liability | $18543 | $20693 | $21593 | $20001 |
| Charge to cost of sales | 2204 | 5623 | 6351 | 15112 |
| Costs incurred | (4797) | (3818) | (11994) | (12615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ending warranty liability | $15950 | $22498 | $15950 | $22498 |

---

*\*All changes to warranty liability were within normal course of business.*

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**7. Debt**

**Credit Agreement**

On April 5, 2022, the Company entered into a new credit agreement with Wells Fargo Bank, National Association, and other named lenders (the "Credit Agreement"). The Credit Agreement, which matures on April 5, 2027, provides for revolving loans, swingline loans, and letters of credit up to an aggregate amount of $650,000.

The Company may borrow, prepay, and re-borrow principal under the Credit Agreement during its term. Advances under the Credit Agreement can be either Adjusted Term Secured Overnight Financing Rate ("SOFR") loans or base rate loans. SOFR rate revolving loans bear interest on the outstanding principal amount thereof for each interest period at a rate per annum equal to Term SOFR for such calculation plus 0.10% plus a margin ranging from 1.00% to 2.25%. Base rate revolving loans bear interest on the outstanding principal amount thereof at a rate per annum equal to the highest of (i) Federal Funds Rate plus 0.50%, (ii) the rate of interest in effect for such day as publicly announced from time to time by the lender as its "prime rate", and (iii) Adjusted Term SOFR rate for a one-month tenor plus 1.00%, subject to the interest rate floors set forth therein, plus a margin ranging from 0.00% to 1.00%.

On November 14, 2023, in connection and concurrently with the closing of the Marucci acquisition, the Company entered into the First Incremental Facility Amendment (the "First Amendment") amending the Credit Agreement. The First Amendment provided the Company with a term loan in an amount of $400,000 (the "Incremental Term A Loan") and a delayed draw term loan in an amount of $200,000 (the "Delayed Draw Term Loan" and, together with the Incremental Term A Loan, the "Incremental Term Loans"), each of which are permitted under the Credit Agreement, subject to satisfaction of certain conditions. The Incremental Term A Loan was fully funded on November 14, 2023 and used to fund a portion of the consideration owed under the Marucci acquisition. The Delayed Draw Term Loan was available to the Company from and including December 6, 2023, until the earlier of (a) May 14, 2024 and (b) the date on which the Delayed Draw Term commitments have been terminated. Each Incremental Term Loan is subject to quarterly amortization payments of principal at a rate of 5.00% per annum. The Incremental Term Loans are in the form of term SOFR loans and base rate loans, at the option of the Company, and have an applicable margin ranging from 0.50% to 1.50% for base rate loans and 1.50% to 2.50% for term SOFR loans, subject to adjustment provisions. Each Incremental Term Loan has a maturity date of April 5, 2027, consistent with the Credit Agreement.

The Company paid $10,063 in debt issuance costs, of which $6,709 were allocated to the Term A Loan and $3,354 were allocated to the Delayed Draw Term Loan. Loan fees allocated to the Term A Loan are amortized using the interest method over the term of the Credit Facility. Loan fees allocated to the Delayed Draw Term Loan were deferred as an asset until the debt was drawn.

On May 13, 2024, the Company borrowed the full amount of $200,000 of the Delayed Draw Term Loan. The fees were reclassified to a contra-liability account and amortized over the term of the drawn debt using the interest method.

On July 31, 2024 and December 20, 2024, the Company entered into the Third and Fourth Amendments to the Credit Agreement, respectively, to secure an improved covenant profile on its capital structure to provide more flexibility given the uncertain macro environment. The Company paid $3,490 in loan fees for the Third and Fourth Amendments, of which $3,433 were allocated among the revolver and the Incremental Term Loans to be amortized over the remaining term of the Credit Agreement.

At October 3, 2025, the one-month SOFR and three-month SOFR rates were 4.29% and 4.34%, respectively. At October 3, 2025, our weighted-average interest rate on outstanding borrowing was 6.28%.

The Credit Agreement is secured by substantially all of the Company's assets, restricts the Company's ability to make certain payments and engage in certain transactions, and requires that the Company satisfy customary financial ratios. The Company was in compliance with the covenants as of October 3, 2025.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

The following table summarizes the revolver under the Credit Agreement:

---

| | | |
|:---|:---|:---|
| | **October 3, 2025** | **January 3, 2025** |
| Amount outstanding | $151000 | $153000 |
| Standby letters of credit | 166 | 155 |
| Available borrowing capacity | 498834 | 496845 |
| Total borrowing capacity | $650000 | $650000 |

---

As of October 3, 2025, future principal payments for term loan debt, including the current portion, are summarized as follows:

---

| | |
|:---|:---|
| **For fiscal year** | **October 3, 2025** |
| 2025 | $6072 |
| 2026 | 24286 |
| 2027 | 512143 |
| Total | $542501 |
| Debt issuance cost | (5850) |
| Long-term debt, net of issuance cost | $536651 |
| Less: current portion | (24286) |
| Long-term debt less current portion | $512365 |

---

On April 5, 2022, the Company executed an interest rate swap agreement and, subsequently, on August 26, 2024, the Company entered into three additional interest rate swap agreements. Through the swap agreements, the Company hedges the variability of cash flows in interest payments associated with the first $500,000 of its variable rate debt. Refer to <u>[Note 9 - Derivatives and Hedging](#i72ddbf5b43d2414d8aca6a34582c7ed2_55)</u> for further details.

On October 24, 2025, the Company entered into the Fifth Amendment to the Credit Agreement and Second Amendment to Guaranty and Security Agreement (the "Fifth Amendment") among the Company, certain subsidiaries of the Company, Wells Fargo Bank, National Association, as administrative agent, swingline lender and L/C issuer (the "Agent"), and a group of lenders party thereto. Refer to <u>[Note 16. Subsequent Events](#i72ddbf5b43d2414d8aca6a34582c7ed2_82)</u> for further information.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**8. Commitments and Contingencies**

**Indemnification Agreements -** In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or intellectual property infringement claims made by third parties. In addition, the Company entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on the Company's results of operations, financial position or liquidity.

**Legal Proceedings** - On February 20, 2024, a complaint alleging violations of federal securities laws and seeking certification as a class action was filed against the Company and certain of its current and former officers in the United States District Court for the Northern District of Georgia in Atlanta. On August 16, 2024, the plaintiff filed an amended complaint that purported to seek damages on behalf of a putative class of persons who purchased the Company's common stock between May 6, 2021 and November 2, 2023. The amended complaint asserted claims under Sections 10(b) and 20 of the Securities Exchange Act and alleged that the Company and certain current and former officers made material misstatements and omissions to investors regarding demand for the Company's products and its inventory levels. The amended complaint generally sought money damages, interest, attorneys' fees, and other costs. On October 15, 2024, the defendants filed a motion to dismiss the amended complaint, which plaintiff opposed. On March 13, 2025, the Court dismissed the amended complaint but granted plaintiff leave to file a second amended complaint. On April 14, 2025, plaintiff filed a second amended complaint asserting essentially the same claims and relief. The defendants moved to dismiss the second amended complaint on May 30, 2025, which plaintiff opposed on July 14, 2025, following which the defendants filed their reply on August 11, 2025. The defendants deny all allegations of wrongdoing, believe the plaintiff's positions are without merit, and intend to vigorously defend themselves.

On October 9, 2024, and October 29, 2024, two stockholder derivative complaints were filed in the United States District Court for the Northern District of Georgia against certain of the Company's officers and its directors, with the Company named as a nominal defendant. The cases are assigned to the same judge presiding over the securities fraud class action. The complaints are premised on substantially the same factual allegations as the securities fraud class action, but in these complaints, the plaintiff claims that the Company's officers and directors breached their fiduciary duties or otherwise engaged in wrongdoing by allowing the underlying securities fraud to occur. The court stayed these cases pending the decision on the motion to dismiss the securities fraud litigation. The defendants deny all allegations of wrongdoing, believe the plaintiffs' claims are without merit, and intend to vigorously defend themselves.

**Bailment Pool Arrangements -** The Company has relationships with several OEM partners, including General Motors ("GM"), Ford Motor Company ("Ford"), and Stellantis to obtain truck chassis. For Stellantis chassis, the Company pays a cash deposit upon transfer of the chassis to the Company's premises and records the chassis within prepaids and other current assets on the condensed consolidated balance sheets until the chassis are transferred to the dealer customer's floor plan, at which time the cash deposit is returned to the Company. For GM and Ford, the Company entered into floor plan financing agreements with the OEM. The Company receives an allocation of chassis and pays interest expense on the allocated value of chassis based on the duration of time they are on the Company's premises. Bailment, which is the non-ownership transfer of the chassis from GM and Ford to the Company, ends when the vehicle is sold to an authorized dealer, or upon authorized return of the vehicle to the manufacturer. The Company does not pay a cash deposit to obtain GM and Ford chassis and accordingly it does not recognize an asset or a liability related to these chassis. Interest payments made to manufacturer-affiliated finance companies are classified as operating activities in the condensed consolidated statements of cash flows.

At October 3, 2025 and January 3, 2025, the Company utilized $11,876 and $36,008, out of a maximum of $38,300 and $36,100 of Ford allocation of chassis, respectively, and $17,963 and $10,857, out of a maximum of $36,100 and $49,500 of GM allocation of chassis, respectively.

The Company incurred interest expense related to bailment of $1,221 and $482 during the three months ended October 3, 2025 and January 3, 2025, respectively, and $2,964 and $1,057 during the nine months ended October 3, 2025 and January 3, 2025, respectively.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**9. Derivatives and Hedging**

The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes interest rate swaps to limit its exposure to interest rate risk by converting a portion of its floating-rate debt to a fixed-rate basis, thus reducing the impact of interest rate changes on future interest expense. Interest rate swaps involve the receipt of floating-rate amounts in exchange for fixed-rate interest payments based on the SOFR over the lives of the agreements without an exchange of the underlying principal amounts. The Company hedges the variability of cash flows in interest payments associated with the first $500,000 of its variable rate debt through the interest rate swaps.

As of October 3, 2025 and January 3, 2025, the Company had the following interest rate swap contracts:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **October 3, 2025** | **January 3, 2025** |
|<br>**Effective Date** |<br>**Termination Date** |<br>**Notional Amount** | **Unrealized Gain (Loss) in AOCI** | **Unrealized Gain (Loss) in AOCI** |
| September 2, 2020 | June 11, 2021 | $200000 | $— | $16 |
| July 2, 2021 | April 5, 2022 | $200000 |  | 767 |
| April 5, 2022 | April 5, 2027 | $100000 | 1396 | 2650 |
| September 20, 2024 | December 26, 2025 | $100000 |  | (87) |
| September 20, 2024 | December 25, 2026 | $200000 | (271) | 903 |
| September 20, 2024 | September 21, 2029 | $100000 | (265) | 2219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  | $860 | $6468 |

---

On June 11, 2021, the Company terminated its existing swap agreement (the "2020 Swap Agreement") and entered into an interest rate swap agreement (the "2021 Swap Agreement") with a notional amount of $200,000. On April 5, 2022, the Company terminated its 2021 Swap Agreement and entered into a new interest rate swap agreement with a notional amount of $100,000. The terminated 2020 Swap Agreement and 2021 Swap Agreement resulted in unrealized gains of $324 and $12,270, respectively, at the termination dates that continued to be accounted for in accumulated other comprehensive income, or AOCI, and were fully amortized into earnings as of April 4, 2025. On August 26, 2024, the Company entered into new interest rate swap agreements with an aggregate notional amount of $400,000.

The interest rate swaps are indexed to a three-month Term SOFR as defined in the agreements. The interest rate swaps met the criteria as cash flow hedges under ASC 815, Derivatives and Hedging ("ASC 815"), and are recorded to prepaids and other current assets, other assets, accrued expenses, or other liabilities on the condensed consolidated balance sheets. Refer to <u>[Note 10 - Fair Value Measurements and Financial Instruments](#i72ddbf5b43d2414d8aca6a34582c7ed2_58)</u> for additional information on determining the fair value. The unrealized gains or losses, after tax, will be recorded in accumulated other comprehensive income, a component of equity, and are expected to be reclassified into interest expense on the condensed consolidated statements of operations when the forecasted transactions affect earnings. As required under ASC 815, the interest rate swap contracts' effectiveness will be assessed on a quarterly basis using a quantitative regression analysis.

The unrealized gains and losses deferred to accumulated other comprehensive income resulting from the derivative instruments designated as cash flow hedges for the three and nine months ended October 3, 2025 were a net gain of $275 and a net loss of $1,543, respectively; and for the three and nine months ended September 27, 2024 were net losses of $3,822 and $1,704, respectively. The reclassifications of unrealized gains from accumulated other comprehensive income into earnings related to the derivative instruments designated as cash flow hedges during the three and nine months ended October 3, 2025 were $1,062 and $4,066, respectively; and during the three and nine months ended September 27, 2024 were $1,779 and $5,339, respectively. The aggregate tax effects on activity in accumulated other comprehensive income associated with the derivative instruments designated as cash flow hedges during three and nine months ended October 3, 2025 were losses of $189 and of $1,336, respectively; and during the three and nine months ended September 27, 2024 were losses of $1,339 and $1,659, respectively.

Over the next 12 months, the Company estimates that $860 of existing net gain in AOCI related to the interest rate swap contracts will be reclassified as a decrease to interest expense.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands, except per share data)** 

**(unaudited)**

**10. Fair Value Measurements and Financial Instruments**

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **October 3, 2025** | **October 3, 2025** | **October 3, 2025** | **October 3, 2025** | **January 3, 2025** | **January 3, 2025** | **January 3, 2025** | **January 3, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred Compensation Plan Investments | $4676 | $— | $— | $4676 | $4394 | $— | $— | $4394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Swaps |  | 1396 |  | 1396 |  | 5685 |  | 5685 |
| Total assets measured at fair value | $4676 | $1396 | $— | $6072 | $4394 | $5685 | $— | $10079 |
| Liabilities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Incremental Term Loans | $— | $542501 | $— | $542501 | $— | $560714 | $— | $560714 |
| &nbsp;&nbsp;&nbsp;&nbsp;Revolver |  | 151000 |  | 151000 |  | 153000 |  | 153000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred Compensation Plan Liabilities | 4644 |  |  | 4644 | 4300 |  |  | 4300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Rate Swaps |  | 536 |  | 536 |  |  |  |  |
| Total liabilities measured at fair value | $4644 | $694037 | $— | $698681 | $4300 | $713714 | $— | $718014 |

---

There were no transfers of assets or liabilities between Level 1, Level 2, and Level 3 categories of the fair value hierarchy during the three and nine months ended October 3, 2025.

As of October 3, 2025, the carrying amount of the principal under the Company's Credit Agreement - Incremental Term Loans and Revolver approximated fair value because they had variable interest rates that reflected market changes in interest rates and changes in the Company's net leverage ratio.

The Company mitigates the cash flow risk associated with changes in interest rates on its variable rate debt through interest rate swap agreements. Refer to <u>[Note 9 - Derivatives and Hedging](#i72ddbf5b43d2414d8aca6a34582c7ed2_55)</u> for additional details of the agreements. In accordance with ASC 815, interest rate swap contracts are recognized as assets or liabilities on the condensed consolidated balance sheets and are measured at fair values. The fair values were estimated based on expected cash flows over the life of the swaps. These expected cash flows were determined using a pricing model that incorporated reasonable assumptions and available market data.

The Company invests in marketable securities to mitigate the risk associated with the investment return on the non-qualified deferred compensation plan provided to executives and non-employee directors. The investments are recorded as cash and cash equivalents at their quoted market price. The corresponding deferred compensation plan liabilities are recorded at fair value based on the quoted market price of the underlying investments and are included in accrued expenses on the condensed consolidated balance sheets.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands, except per share data)** 

**(unaudited)**

**11. Stockholders' Equity**

**Share Repurchase Plan**

On November 1, 2023, the Company's Board of Directors authorized a share repurchase plan for up to $300,000 in shares of the Company's common stock, par value $0.001 per share. The share repurchase program is scheduled to expire on November 1, 2028. Repurchases of shares of common stock under the stock repurchase plan will be made in accordance with applicable securities laws and may be made under a variety of methods, which may include open market purchases. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company's discretion.

There were no repurchases of common stock during the nine months ended October 3, 2025. During the nine months ended September 27, 2024, the Company repurchased approximately 378 shares for $25,000, at an average price of $66.03. All repurchased shares were immediately retired. The aggregate cost of share repurchases and average price paid per share exclude 1% excise tax on share repurchases imposed as part of the Inflation Reduction Act of 2022. Common stock was reduced by the number of shares retired at $0.001 par value per share. The excess purchase price over par value was allocated between additional paid-in capital and retained earnings. As of October 3, 2025, authorized repurchases of $250,000 remain available to the Company.

**Equity Incentive Plans**

The following table summarizes the allocation of stock-based compensation in the accompanying condensed consolidated statements of operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Cost of sales | $211 | $324 | $856 | $880 |
| Sales and marketing | 316 | 244 | 1167 | 912 |
| Research and development | 340 | 266 | 1067 | 892 |
| General and administrative | 2153 | (369) | 7847 | 3890 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $3020 | $465 | $10937 | $6574 |

---

The Company grants both time-based and performance-based stock awards, which also include a time-based vesting feature. Compensation expense for time-based stock awards is measured at the grant date based on the closing market price of the Company's common stock and recognized ratably over the vesting period.

For performance-based stock awards, compensation expense is measured based on estimates of the number of shares ultimately expected to vest at each reporting date based on management's expectations regarding the relevant performance criteria. The recognition of compensation expense associated with performance-based stock awards requires defined criteria for assessing achievement and judgment in assessing the probability of meeting the performance goals.

------

**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands, except per share data)** 

**(unaudited)**

The following table summarizes the activity for the Company's unvested restricted stock units ("RSUs") for the nine months ended October 3, 2025:

---

| | | |
|:---|:---|:---|
| | **Unvested RSUs** | **Unvested RSUs** |
| | **Number of shares outstanding** | **Weighted-average grant date fair value** |
| Unvested at January 3, 2025 | 400 | $59.88 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 568 | $25.97 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled | (44) | $39.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested | (174) | $66.05 |
| Unvested at October 3, 2025 | 750 | $34.07 |

---

As of October 3, 2025, the Company had approximately $18,993 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 1.91 years.

During the nine months ended October 3, 2025, the Company issued performance-based restricted stock units ("PSUs") to certain executives that represent shares potentially issuable in the future. Issuance is based upon the Company's performance, over a three-year performance period, against an adjusted EBITDA margin target. The PSUs vest only upon the achievement of the applicable performance goals for the performance period and, depending on the actual achievement on the performance goals, the grantee may earn between 0% and 200% of the target PSUs. In fiscal year 2024, the Company issued PSUs to certain executives and non-executives based upon the Company's performance, over a four-year performance period, against a trailing 12-month revenue target. These revenue-growth PSUs vest only upon the achievement of the applicable performance goals for the performance period, and, depending on the actual achievement on the performance goals, the grantee may earn either 0% or 100% of the target PSUs.

The following table summarizes the activity for the Company's unvested PSUs for the nine months ended October 3, 2025:

---

| | | |
|:---|:---|:---|
| | **Unvested PSUs** | **Unvested PSUs** |
| | **Number of shares outstanding** | **Weighted-average grant date fair value** |
| Unvested at January 3, 2025 | 246 | $57.00 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 262 | $26.14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canceled | (6) | $40.65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested |  | $— |
| Unvested at October 3, 2025 | 502 | $41.09 |

---

The fair value of PSUs is calculated based on the stock price on the grant date, assuming the performance goals will be achieved at target. The stock-based compensation expense recognized each period is dependent upon our estimate of the number of shares that will ultimately vest based on the achievement of certain performance conditions. Future stock-based compensation expense for unvested PSUs could reach a maximum of $27,783 assuming achievement at the maximum level. The unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 1.53 years.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands, except per share data)** 

**(unaudited)**

**12. (Net Loss) Earnings Per Share**

Basic earnings per share amounts are computed by dividing earnings (net loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share amounts are computed by dividing earnings (net loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include shares issuable upon the exercise of outstanding stock options and vesting of RSUs and PSUs, which are reflected in diluted earnings per share by application of the treasury stock method.

The Company excluded 294 and 287 shares from the calculation of diluted earnings per share for the three and nine months ended October 3, 2025, respectively, and 198 and 134 for the three and nine months ended September 27, 2024, respectively, as these shares would have been antidilutive. Due to the net loss reported for the three and nine months ended October 3, 2025, there were no dilutive shares included in the calculation of diluted net loss per share for the period.

The following table presents the calculation of basic and diluted earnings per share:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Net (loss) income attributable to FOX stockholders | $(634) | $4780 | $(257584) | $6691 |
| Weighted average shares used to compute basic earnings per share | 41816 | 41699 | 41771 | 41674 |
| Dilutive effect of employee stock plans |  | 25 |  | 45 |
| Weighted average shares used to compute diluted earnings per share | 41816 | 41724 | 41771 | 41719 |
| (Net loss) earnings per share: |  |  |  |  |
| &nbsp;&nbsp;Basic | $(0.02) | $0.11 | $(6.17) | $0.16 |
| &nbsp;&nbsp;Diluted | $(0.02) | $0.11 | $(6.17) | $0.16 |

---

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**13. Income Taxes**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Provision for income taxes | $2286 | $250 | $1449 | $(1388) |
| Effective tax rates | 140.8% | 5.0% | (0.6)% | (26.2)% |

---

For the three months ended October 3, 2025, the difference between the Company's effective tax rate of 140.8% and the 21% federal statutory rate was primarily due to unfavorable impact of discrete items in proportion to lower levels of pre-tax income.

For the nine months ended October 3, 2025, the difference between the Company's effective tax rate of (0.6)% and the 21% federal statutory rate was due to the impairment impact of the non-deductible goodwill.

For the three months ended September 27, 2024, the difference between the Company's effective tax rate of 5.0% and the 21% federal statutory rate primarily due the favorable impact of discrete items on lower levels of pre-tax income.

For the nine months ended September 27, 2024, the difference between the Company's effective tax rate of (26.2)% and the 21% federal statutory rate was mainly due to the favorable impact of discrete items on lower levels of pre-tax income.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We have reviewed the enacted legislation and have determined that these provisions do not affect the measurement of our deferred tax assets and liabilities as of October 3, 2025. We will continue to assess the impact on the effective tax rate for future periods.

We do not expect the results from any ongoing income tax audits to have a material impact on our consolidated financial condition, results of operations, or cash flows.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

**14. Acquisitions**

***Acquisition of Marzocchi Suspension S.r.l .***

On December 19, 2024, the Company, through Marzocchi Suspension Holding S.r.l ., acquired all of the outstanding equity of Marzocchi Suspension S.r.l ("Marzocchi") from VRM S.P.A. for $20,501, net of cash acquired. Marzocchi is a leader in motorcycle suspension manufacturing. The Company believes that this acquisition will be complementary to its PVG businesses and will help to expand its product offerings. This transaction was accounted for as a business combination.

The purchase price of Marzocchi is preliminarily allocated to the assets acquired and liabilities assumed based on their estimated respective fair values as of December 19, 2024 with the excess purchase price allocated to goodwill. During the nine months ended October 3, 2025, and translated into U.S. dollars using the exchange rate at the acquisition date, the Company recorded a decrease of $1,058 to accounts receivable, and increases of $744 to other assets, $411 to accrued expenses, $513 to other liabilities, and $1,238 to goodwill. The following table summarizes the provisional fair values of the identifiable assets acquired and liabilities assumed at the date of the acquisition, translated into U.S. dollars using the exchange rate on the same date:

---

| | |
|:---|:---|
| **Acquisition consideration** | |
| Cash consideration, net of cash acquired | $20501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consideration at closing | $20501 |
| **Fair market values** |  |
| Accounts receivable | $5648 |
| Inventory | 12097 |
| Prepaid and other current assets | 1527 |
| Property, plant and equipment | 5888 |
| Trademarks and brands | 1500 |
| Customer and distributor relationships | 2000 |
| Goodwill | 4713 |
| Other assets | 5601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | $38974 |
| Accounts payable | $12175 |
| Accrued expenses | 2587 |
| Deferred Taxes | 840 |
| Other liabilities | 2871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | $18473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Purchase price allocation** | $20501 |

---

The gross contractual accounts receivable acquired in the acquisition was $5,648, all of which had been collected as of October 3, 2025.

The amounts above represent the Company's provisional fair value estimates related to the acquisition as of December 19, 2024, and are subject to subsequent adjustments as additional information is obtained during the applicable measurement period. The primary areas of estimates that are not yet finalized include certain tangible assets acquired and liabilities assumed, as well as the identifiable intangible assets. The Company incurred $1,912 of acquisition costs in conjunction with the Marzocchi acquisition, of which $436 were incurred during the nine months ended October 3, 2025. These costs are classified as general and administrative expenses in the accompanying condensed consolidated statements of operations.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

The values assigned to the identifiable intangible assets were determined by discounting the estimated future cash flows associated with these assets to their present value. The goodwill of $4,713 reflects the strategic fit of Marzocchi with the Company's operations. The weighted average amortization periods of the customer and distributor relationships and trade names and trademarks were 15 years. Goodwill is expected to have an indefinite life and will be subject to impairment testing. The goodwill is tax deductible for U.S. income tax purposes due to the step-up in tax basis of acquired goodwill and a portion is also deductible for Italian income tax purposes. In the acquisition of Marzocchi, the Company stepped up the intangibles by $3,500, which is not deductible for Italian income tax purposes.

The results of operations for Marzocchi have been included in the Company's consolidated statements of operations since the closing date of the acquisition on December 19, 2024. The total revenues for Marzocchi for the three and nine months ended October 3, 2025 amounted to $9,073 and $32,732, respectively. The total pre-tax losses for Marzocchi for the three and nine months ended October 3, 2025 amounted to $2,138 and $4,483.

**15. Segment Information**

We manage our activities based on three operating segments: Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group. All of our segments design, engineer, and manufacture performance-defining products and systems for customers worldwide.

The following is a description of our operating segments.

Powered Vehicles Group: This segment operates 2 plants in the United States and 1 plant in Italy. Our premium products sold under the FOX brand are for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, ATVs, snowmobiles, specialty vehicles and applications, and commercial trucks, and the Marzocchi brand for motorcycles. These products are sold through both OEM and aftermarket channels.

Aftermarket Applications Group: This segment operates 13 plants across the United States. Our range of aftermarket applications products includes premium products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, RTR, Fun-Haver, and Custom Wheel House brands designed for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, specialty vehicles and applications, and commercial trucks.

Specialty Sports Group: This segment operates 9 plants and 11 distribution facilities (10 in the United States, 3 in Taiwan, and 1 facility each in Australia, Canada, Germany, Japan, Sweden, Switzerland, and United Kingdom). Our bike product offerings are used on a wide range of performance mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. These products are sold through both OEM and aftermarket channels. Our products for diamond sports include premium baseball and softball equipment under the Marucci, Victus, Lizard Skins, and Baum Bat brands and are sold through dealers and distributors and through direct-to-customer channels.

Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 – Business and Summary of Significant Accounting Policies within our 2024 Form 10-K.

We measure the profitability and financial performance of our operating segments based on adjusted EBITDA. Adjusted EBITDA provides a measure of our underlying segment results that is in line with our approach to risk management. We define adjusted EBITDA as net income adjusted for (a) interest expense, (b) income tax or tax benefits, (c) amortization including amortization of purchased intangibles, (d) depreciation, (e) stock-based compensation, (f) litigation and settlement related expenses, (g) organizational restructuring expenses, (h) acquisition and integration-related expenses, (i) strategic transformation costs, and (j) goodwill impairment. Adjusted EBITDA Margin is defined as adjusted EBITDA divided by net sales.

Segment asset information is not presented because it is not evaluated by the CODM at the segment level.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

The tables that follow show selected segment financial information including information for prior comparative periods. Unallocated corporate expenses are corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated occupancy costs for our corporate headquarters, acquisition costs, other benefit and compensation programs, including performance-based compensation, and administrative expenses such as accounting, finance, legal, human resources, and information technology expenses.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| **Net sales** | | | | |
| &nbsp;&nbsp;Powered Vehicles Group | $125872 | $109336 | $371484 | $345244 |
| &nbsp;&nbsp;Aftermarket Applications Group | 117767 | 100283 | 343825 | 309264 |
| &nbsp;&nbsp;Specialty Sports Group | 132716 | 149502 | 390940 | 386576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $376355 | $359121 | $1106249 | $1041084 |
| Net (loss) income | (662) | 4780 | (257691) | 6691 |
| Goodwill impairment |  |  | 262129 |  |
| Provision (benefit) from income taxes | 2286 | 250 | 1449 | (1388) |
| Depreciation and amortization<sup>(1)</sup> | 23001 | 20845 | 66189 | 61699 |
| Non-cash stock-based compensation | 3020 | 465 | 10937 | 6574 |
| Litigation and settlement-related expenses | 297 | 466 | 1487 | 3226 |
| Other acquisition and integration-related expenses<sup>(2)</sup> | 572 | 459 | 1912 | 6092 |
| Organizational restructuring expenses<sup>(3)</sup> | 2428 | 723 | 7598 | 1199 |
| Organizational restructuring related losses | 239 |  | 1329 |  |
| Strategic transformation costs |  | 266 | 20 | 1520 |
| Interest and other expense, net | 13238 | 13772 | 37954 | 40964 |
| **Adjusted EBITDA** | $44419 | $42026 | $133313 | $126577 |
| &nbsp;&nbsp;Powered Vehicles Group | 18909 | 8948 | 49679 | 40719 |
| &nbsp;&nbsp;Aftermarket Applications Group | 12449 | 9394 | 45458 | 38420 |
| &nbsp;&nbsp;Specialty Sports Group | 27489 | 36521 | 81269 | 89792 |
| &nbsp;&nbsp;Unallocated corporate expenses | (14428) | (12837) | (43093) | (42354) |
| **Adjusted EBITDA** | $44419 | $42026 | $133313 | $126577 |

---

(1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment and accelerated depreciation related to organizational restructuring initiatives.

(2) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company's operations and the impact of the finished goods inventory valuation adjustment recorded in connection with the purchase of acquired assets.

(3) Represents expenses associated with various restructuring initiatives. See <u>[Note 1](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)[.](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)[Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)</u> for more information.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**FOX FACTORY HOLDING CORP.**

**Notes to Condensed Consolidated Financial Statements**

**(in thousands)** 

**(unaudited)**

Individual expenses are not a primary focus in segment-level decision-making as the CODM relies on adjusted EBITDA as the key financial metric for assessing performance and allocating resources across segments. The following table presents the Company's other segment items that consist of costs of sales and operating expenses excluding depreciation and amortization, non-cash stock-based compensation, litigation and settlement-related expenses, other acquisition and integration-related expenses, organizational restructuring-related expenses, strategic transformation costs, and goodwill impairment.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| &nbsp;&nbsp;Powered Vehicles Group | $106963 | $100388 | $321805 | $304525 |
| &nbsp;&nbsp;Aftermarket Applications Group | 105318 | 90889 | 298367 | 270844 |
| &nbsp;&nbsp;Specialty Sports Group | 105227 | 112981 | 309671 | 296784 |
| &nbsp;&nbsp;Unallocated corporate expenses | 14428 | 12837 | 43093 | 42354 |
|  | $331936 | $317095 | $972936 | $914507 |

---

**16. Subsequent Events**

**Fifth Amendment to Credit Agreement**

On October 24, 2025, the Company entered into the Fifth Amendment to the Credit Agreement and Second Amendment to Guaranty and Security Agreement among the Company, certain subsidiaries of the Company, Wells Fargo Bank, National Association, as administrative agent, swingline lender and L/C issuer (the "Agent"), and a group of lenders party thereto. The Fifth Amendment amends the Credit Agreement, dated as of April 5, 2022 (as amended prior to the Fifth Amendment, the "Credit Agreement" and, as amended by the Fifth Amendment, the "Amended Credit Agreement"), and the Guaranty and Security Agreement, dated as of April 5, 2022, as amended prior to the Fifth Amendment, which secures the obligations under the Credit Agreement in favor of the Agent for the benefit of the lenders and other secured parties. Terms not otherwise defined below will have the meaning as set forth in the Amended Credit Agreement.

The Fifth Amendment, among other things, amends the Credit Agreement to replace the existing loans provided under the Credit Agreement with (i) a term loan in the aggregate outstanding amount of $537,500 (the "Term Loan"), which will be repaid by the Company in quarterly installments in the amount of $6,719, (ii) revolving loans in an aggregate amount of up to $500,000, with sub-facilities for swing line loans in an aggregate amount of up to $25,000 and letters of credit in an aggregate amount of up to $25,000 (the "Revolving Credit Facility"), and (iii) an incremental loan facility, subject to additional terms set forth in the Amended Credit Agreement, in an aggregate amount of up to $175,000 plus an unlimited amount so long as after giving effect to the incurrence of such incremental loans, on a pro forma basis, the Consolidated Net Leverage Ratio is less than 3.25. To the extent not previously paid, all then-outstanding amounts under the Term Loan and the Revolving Credit Facility are due and payable on October 24, 2030.

The Term Loan and advances under the Revolving Credit Facility can be either SOFR loans or base rate loans. SOFR loans bear interest on the outstanding principal amount thereof for each interest period at a rate per annum equal to the term SOFR for such calculation plus a margin ranging from 1.00% to 2.50%. Base rate loans bear interest on the outstanding principal amount thereof at a rate per annum equal to the highest of (i) Federal Funds Rate plus 0.50%, (ii) the rate of interest in effect for such day as publicly announced from time to time by the Agent as its "prime rate," and (iii) term SOFR rate for a one-month tenor plus 1.00%, subject to the interest rate floors set forth in the Amended Credit Agreement, plus a margin ranging from 0.00% to 1.50%.

In connection with the Fifth Amendment, the Company borrowed $710,000 under the Amended Credit Agreement consisting of the $537,500 Term Loan and $172,500 under the Revolving Credit Facility, which was used to repay all outstanding amounts owed under the Credit Agreement prior to the Fifth Amendment and for general corporate purposes.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2025, as filed with the SEC on February 28, 2025, and our other reports and registration statements that we file with the SEC from time to time. In addition to historical condensed consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, particularly in the "Risk Factors" section included in Part II, Item 1A.

Unless the context otherwise requires, the terms "FOX," the "Company," "we," "us," and "our" in this Quarterly Report on Form 10-Q refer to Fox Factory Holding Corp. and its operating subsidiaries on a consolidated basis.

***Cautionary Note Regarding Forward-Looking Statements***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general economic conditions, including market and macro-economic disruptions resulting from escalating tensions between China and Taiwan, the on-going Russian war in Ukraine, the Israel-Palestine conflict, or rising tension in the Middle East, or due to growing inflation or higher interest rates, or tariffs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependency on a limited number of suppliers for materials, product parts, and vehicle chassis could lead to an increase in material costs, disruptions in our supply chain, or reputational costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to develop new and innovative products in our current end-markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to leverage our technologies and brand to expand into new categories and end-markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the spread of highly infectious or contagious disease, such as COVID-19, could cause severe disruptions in the U.S. and global economy, which could in turn disrupt the business activities and operations of our customers, as well as our businesses and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to increase our aftermarket penetration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to accelerate international growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our exposure to exchange rate fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the loss of key customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to accurately forecast demand for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to improve operating and supply chain efficiencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in commodity, freight, and tariff costs (including tariff relief or our ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to mitigate increasing input costs through pricing or other measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic conditions that impact consumer spending or consumer credit, including changes in inflation or interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to enforce our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future financial performance, including our sales, cost of sales, gross profit or gross margins, operating expenses, ability to generate positive cash flow, and ability to maintain our profitability;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our premium brand image and high-performance products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain relationships with the professional athletes and race teams we sponsor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to selectively add additional dealers and distributors in certain geographic markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the growth of the markets in which we compete, our expectations regarding consumer preferences, and our ability to respond to changes in consumer preferences and effectively compete against competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in demand for performance-defining products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the loss of key personnel, management, and skilled engineers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully identify, evaluate and manage potential or completed acquisitions and to benefit from such acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the impact of changing emissions and other related regulations in the various jurisdictions in which our products are produced, used, and/or sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future disruptions in the operations of our manufacturing facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to adapt our business model to mitigate the impact of certain changes in tax laws, tariffs, and international trade policies, including regulations or orders related to the import and export of industry products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the relative proportion of profit earned in the numerous jurisdictions in which we do business and in tax legislation, case law and other authoritative guidance in those jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product recalls and product liability claims; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future economic or market conditions.

You should not rely upon forward-looking statements as predictions of future events. We based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects and the outcomes of any of the events described in any forward-looking statements are subject to risks, uncertainties, and other factors. In addition to the risks, uncertainties, and other factors discussed above and elsewhere in this Quarterly Report on Form 10-Q, the risks, uncertainties, and other factors expressed or implied in Part I, Item 1A. "Risk Factors" of our 2024 Annual Report on Form 10-K, as filed with the SEC on February 28, 2025, could cause or contribute to actual results differing materially from those set forth in any forward-looking statement. Moreover, we operate in a very competitive and challenging environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur and you should not place undue reliance on our forward-looking statements. Actual results, events, or circumstances could differ materially from those contemplated by, set forth in, or underlying any forward-looking statements. For all of these forward-looking statements, we claim the protection of the safe harbor for forward-looking statements in Section 27A of the Securities Act and Section 21E of the Exchange Act.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make or choose not to make.

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**Critical Accounting Policies and Estimates**

There have been no changes to the critical accounting policies and estimates described in our Annual Report on Form 10-K for the fiscal year ended January 3, 2025, as filed with the SEC on February 28, 2025, that had a material impact on our unaudited condensed consolidated financial statements and related notes, except as described below.

*Goodwill Impairment*

In the first quarter of fiscal year 2025, we recognized a non-cash goodwill impairment charge of $262.1 million within operating expenses, which impacted all reporting units. The impairment resulted from a triggering event related to adverse changes in U.S. tariff policies, new and expanded tariffs enacted by the current presidential administration, and resulting sustained decline in our stock price. The impairment charge reflects the amount by which the carrying values of the reporting units exceeded their estimated fair values.

The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. The income approach employs a discounted cash flow model, projecting revenue and cash flows over a multi-year period. These projections are based on management's estimates, historical performance trends, and industry outlooks. These cash flows, along with a terminal value, are discounted to their present value using a WACC that reflects a market rate appropriate for each reporting unit. The company performs sensitivity analyses to determine how fluctuations in forecasts could affect the fair value relative to the carrying amount. The market approach employs multiples for public companies that reasonably compare to the reporting units. Sensitivity analyses were performed to assess the impact of changes in key assumptions. While the Company believes that the estimates and assumptions used in the impairment test were reasonable, changes in key assumptions, including lower revenue growth, terminal growth rate, or increase in WACC could result in a future impairment of the reporting units. Such charge could have a material effect on the condensed consolidated statements of operations and the condensed consolidated balance sheets.

As a reasonableness check, the impairment assessment also included a comparison of the aggregate estimated fair value of the reporting units to the Company's total market capitalization. The Company will continue to monitor its goodwill balances for further potential impairments.

See "Goodwill, Intangible Assets, and Long-Lived Assets" within <u>[Note 1.](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)[Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)</u> for goodwill activity by reporting unit.

**Recent Accounting Pronouncements**

See <u>[Note 1 - Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies](#i72ddbf5b43d2414d8aca6a34582c7ed2_31)</u> to the accompanying notes to unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further details regarding this topic.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**Results of Operations**

The table below summarizes our results of operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Net sales | $376.4 | $359.1 | $1106.2 | $1041.1 |
| Cost of sales | 261.9 | 251.6 | 765.1 | 719.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 114.5 | 107.5 | 341.1 | 321.6 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 262.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 37.7 | 32.4 | 114.0 | 106.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 32.7 | 29.1 | 96.7 | 89.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 18.6 | 16.1 | 53.5 | 45.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of purchased intangibles | 10.4 | 11.0 | 31.7 | 33.4 |
| Total operating expenses | 99.4 | 88.7 | 558.1 | 275.3 |
| Income (loss) from operations | 15.1 | 18.8 | (217.0) | 46.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 13.9 | 14.2 | 41.2 | 41.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | (0.4) | (0.5) | (2.0) | (0.5) |
| Income (loss) before income taxes | 1.6 | 5.0 | (256.2) | 5.3 |
| Provision (benefit) from income taxes | 2.3 | 0.3 | 1.4 | (1.4) |
| Net (loss) income | $(0.7) | $4.8 | $(257.7) | $6.7 |
| Less: net loss attributable to non-controlling interest |  |  | (0.1) |  |
| Net (loss) income attributable to FOX stockholders | $(0.6) | $4.8 | $(257.6) | $6.7 |

---

*\*Amounts may not foot due to rounding.*

The following table sets forth selected statement of income data as a percentage of net sales for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| | **October 3, 2025** | **September 27, 2024** | **October 3, 2025** | **September 27, 2024** |
| Net sales | 100.0% | 100.0% | 100.0% | 100.0% |
| Cost of sales | 69.6 | 70.1 | 69.2 | 69.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 30.4 | 29.9 | 30.8 | 30.9 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 23.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 10.0 | 9.0 | 10.3 | 10.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 8.7 | 8.1 | 8.7 | 8.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 4.9 | 4.5 | 4.8 | 4.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of purchased intangibles | 2.8 | 3.1 | 2.9 | 3.2 |
| Total operating expenses | 26.4 | 24.7 | 50.4 | 26.4 |
| Income (loss) from operations | 4.0 | 5.2 | (19.6) | 4.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 3.7 | 4.0 | 3.7 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income, net | (0.1) | (0.1) | (0.2) |  |
| Income (loss) before income taxes | 0.4 | 1.4 | (23.2) | 0.5 |
| Provision (benefit) from income taxes | 0.6 | 0.1 | 0.1 | (0.1) |
| Net (loss) income | (0.2)% | 1.3% | (23.3)% | 0.6% |
| Less: net loss attributable to non-controlling interest |  |  |  |  |
| Net (loss) income attributable to FOX stockholders | (0.2)% | 1.3% | (23.3)% | 0.6% |

---

*\*Percentages may not foot due to rounding.*

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

***Three months ended October 3, 2025 compared to three months ended September 27, 2024***

*Consolidated net sales*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Net sales | $376.4 | $359.1 | $17.3 | 4.8% |

---

Total net sales for the three months ended October 3, 2025 increased $17.3 million, or 4.8%, compared to the three months ended September 27, 2024. The increase in net sales is driven by increased demand for aftermarket products, strategic customer program launches, and market share gains in motorcycle business, which more than offset lower industry demand in the automotive OE product lines and reduced inventory levels by OEMs, distributors, and dealers in response to market-wide economic conditions. Although net sales increased, high interest rates impacting industry and consumer demand, high vehicle costs, and macro-economic conditions remain headwinds.

*Cost of sales*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Cost of sales | $261.9 | $251.6 | $10.3 | 4.1% |

---

Cost of sales for the three months ended October 3, 2025 increased $10.3 million, or 4.1%, compared to the three months ended September 27, 2024. The increase in cost of sales is mainly due to our increased sales and impact of tariffs. Our gross margin increased 50 basis points to 30.4% for the three months ended October 3, 2025, as compared to the same prior fiscal year period, primarily due to our product mix.

*Operating expenses*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $37.7 | $32.5 | $5.2 | 16.0% |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 32.7 | 29.1 | 3.6 | 12.4 |
| &nbsp;&nbsp;&nbsp;Research and development | 18.6 | 16.1 | 2.5 | 15.5 |
| &nbsp;&nbsp;&nbsp;Amortization of purchased intangibles | 10.4 | 11.0 | (0.6) | (5.5) |
| Total operating expenses | $99.4 | $88.7 | $10.7 | 12.1% |

---

Total operating expenses for the three months ended October 3, 2025 were $99.4 million, compared to $88.7 million for the three months ended September 27, 2024. General and administrative expenses increased $5.2 million driven by our organizational restructuring initiatives. Sales and marketing expenses and research and development expenses increased $3.6 million and $2.5 million, respectively, mainly due to investments to support strategic customer launches and product innovation.

*Income from operations*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Income from operations | $15.1 | $18.8 | $(3.7) | (19.7)% |

---

As a result of the factors discussed above, income from operations for the three months ended October 3, 2025 decreased $3.7 million, or 19.7%, compared to income from operations for the three months ended September 27, 2024.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

*Interest and other expense, net*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | $13.9 | $14.2 | $(0.3) | (2.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | (0.4) | (0.5) | (0.1) | (20.0) |
| Interest and other expense, net | $13.5 | $13.7 | $(0.2) | (1.5)% |

---

Interest and other expense, net for the three months ended October 3, 2025 decreased by $0.2 million to $13.5 million, compared to $13.7 million for the three months ended September 27, 2024.

*Income taxes*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Provision for income taxes | $2.3 | $0.3 | $2.0 | 666.7% |

---

The effective tax rates were 140.8% and 5.0% for the three months ended October 3, 2025 and September 27, 2024, respectively.

For the three months ended October 3, 2025, the difference between the Company's effective tax rate of 140.8% and the 21% federal statutory rate was primarily due to unfavorable impact of discrete items in proportion to lower levels of pre-tax income.

For the three months ended September 27, 2024, the difference between our effective tax rate of 5.0% and the 21% federal statutory rate was primarily due to the favorable impact of discrete items on lower levels of pre-tax income.

*Net (loss) income*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Net (loss) income | $(0.7) | $4.8 | $(5.5) | (114.6)% |

---

As a result of the factors described above, our net income decreased $5.5 million, or 114.6%, to a net loss of $0.7 million in the three months ended October 3, 2025 from net income of $4.8 million for the three months ended September 27, 2024.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

*Segment Review*

We manage our activities based on three operating segments: PVG, AAG, and SSG.

For additional financial information related to our operating segments including the reconciliation of consolidated net (loss) income to adjusted EBITDA, see <u>[Note 15 – Segment Information](#i72ddbf5b43d2414d8aca6a34582c7ed2_76)</u>.

The following table summarizes consolidated net sales and adjusted EBITDA by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended** | **For the three months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| **Net sales** | | | | |
| &nbsp;&nbsp;Powered Vehicles Group | $125.9 | $109.3 | $16.5 | 15.1% |
| &nbsp;&nbsp;Aftermarket Applications Group | 117.8 | 100.3 | 17.5 | 17.4 |
| &nbsp;&nbsp;Specialty Sports Group | 132.7 | 149.5 | (16.8) | (11.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $376.4 | $359.1 | $17.3 | 4.8% |
| **Adjusted EBITDA** |  |  |  |  |
| &nbsp;&nbsp;Powered Vehicles Group | $18.9 | $8.9 | $10.0 | 112.4% |
| &nbsp;&nbsp;Aftermarket Applications Group | 12.4 | 9.4 | 3.0 | 31.9 |
| &nbsp;&nbsp;Specialty Sports Group | 27.5 | 36.5 | (9.0) | (24.7) |
| &nbsp;&nbsp;Unallocated corporate expenses | (14.4) | (12.8) | (1.6) | (12.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $44.4 | $42.0 | $2.4 | 5.7% |

---

*\*Numbers may not foot due to rounding.*

***Powered Vehicles Group***

Powered Vehicles Group net sales increased by $16.5 million, or 15.1%, mainly due to strategic customer program launches and the inclusion of $9.1 million in net sales from Marzocchi acquired in December 2024, partially offset by lower industry demand in automotive OE product lines.

Powered Vehicles Group adjusted EBITDA increased by $10.0 million, or 112.4%, primarily due to higher gross profit, partially offset by an increase in research and development expenses.

***Aftermarket Applications Group***

Aftermarket Applications Group net sales increased by $17.5 million, or 17.4%, driven by increased demand for aftermarket products; however, high interest rates, high vehicle costs, and macro-economic conditions impacting dealers and consumers continue to pose challenges.

Aftermarket Applications Group adjusted EBITDA increased by $3.0 million, or 31.9%, mainly due to higher gross profit, partially offset by an increase in sales and marketing expenses.

***Specialty Sports Group***

Specialty Sports Group net sales decreased by $16.8 million, or 11.2%, primarily due to OEMs, distributors, and dealers reducing inventory levels in response to market-wide economic conditions.

Specialty Sports Group adjusted EBITDA decreased by $9.0 million, or 24.7%, primarily due to a decrease in gross profit.

***Unallocated Corporate Expenses***

Unallocated corporate expenses consist of corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated occupancy costs for our corporate headquarters, acquisition costs, other benefit and

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

compensation programs, including performance-based compensation, and administrative expenses such as accounting, finance, legal, human resources, and information technology expenses.

Unallocated corporate expenses increased by $1.6 million, or 12.5%, to $14.4 million, compared to $12.8 million in the same period of the prior fiscal year.

***Nine months ended October 3, 2025 compared to nine months ended September 27, 2024***

*Consolidated net sales*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Net sales | $1106.2 | $1041.1 | $65.1 | 6.3% |

---

Total net sales for the nine months ended October 3, 2025 increased $65.1 million, or 6.3%, compared to the nine months ended September 27, 2024. The increase in net sales is primarily due to increased demand for aftermarket products, and the expansion of motorcycle business, which offset lower industry demand in the automotive OE product lines. Although net sales increased, high interest rates impacting industry and consumer demands, high vehicle costs, and macro-economic conditions remain headwinds.

*Cost of sales*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Cost of sales | $765.1 | $719.5 | $45.6 | 6.3% |

---

Cost of sales for the nine months ended October 3, 2025 increased $45.6 million, or 6.3%, compared to the nine months ended September 27, 2024. The increase in cost of sales is primarily due to our increased sales. Our gross margin decreased by 10 basis points to 30.8% for the nine months ended October 3, 2025, as compared to the same prior fiscal year period, primarily due to shifts in our product line mix and impact of tariffs.

*Operating expenses*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | $262.1 | $— | $262.1 | N/A |
| &nbsp;&nbsp;&nbsp;General and administrative | 114.0 | 106.8 | 7.2 | 6.7% |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 96.7 | 89.8 | 6.9 | 7.7 |
| &nbsp;&nbsp;&nbsp;Research and development | 53.5 | 45.3 | 8.2 | 18.1 |
| &nbsp;&nbsp;&nbsp;Amortization of purchased intangibles | 31.7 | 33.4 | (1.7) | (5.1) |
| Total operating expenses | $558.1 | $275.3 | $282.8 | 102.7% |

---

*\*Numbers may not foot due to rounding.*

Total operating expenses for the nine months ended October 3, 2025 were $558.1 million, compared to $275.3 million for the nine months ended September 27, 2024. During the nine months ended October 3, 2025, we recognized an impairment charge of $262.1 million as a result of our quantitative assessment on goodwill triggered by adverse changes in U.S. tariff policies, new and expanded tariffs enacted by the current presidential administration, and resulting sustained decline in our stock price. Research and development and sales and marketing expenses increased $8.2 million and $6.9 million, respectively, due to our investments to support future growth and product innovation. General and administrative expenses increased $7.2 million primarily on organizational restructuring initiatives.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Loss) income from operations*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| (Loss) income from operations | $(217.0) | $46.3 | $(263.3) | (568.7)% |

---

As a result of the factors discussed above, income from operations for the nine months ended October 3, 2025 decreased $263.3 million, or 568.7%, compared to income from operations for the nine months ended September 27, 2024.

*Interest and other expense, net*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** | **Change ($)** | **Change (%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | $41.2 | $41.4 | $(0.2) | (0.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | (2.0) | (0.5) | (1.5) | (300.0) |
| Interest and other expense, net | $39.2 | $40.9 | $(1.7) | (4.2)% |

---

Interest and other expense, net for the nine months ended October 3, 2025 decreased by $1.7 million to $39.2 million, compared to $40.9 million for the nine months ended September 27, 2024 due to the effect of foreign currency exchange rates.

*Income taxes*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Provision (Benefit) for income taxes | $1.4 | $(1.4) | $2.8 | (200.0)% |

---

The effective tax rates were (0.6)% and (26.2)% for the nine months ended October 3, 2025 and September 27, 2024, respectively.

For the nine months ended October 3, 2025, the difference between the Company's effective tax rate of (0.6)% and the 21% federal statutory rate was due to the impairment impact of non-deductible goodwill.

For the nine months ended September 27, 2024, the difference between our effective tax rate of (26.2)% and the 21% federal statutory rate was due to the favorable impact of discrete items on lower levels of pre-tax income.

*Net (loss) income*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| Net (loss) income | $(257.7) | $6.7 | $(264.4) | (3946.3)% |

---

As a result of the factors described above, our net income decreased $264.4 million to a net loss of $257.7 million for the nine months ended October 3, 2025 from a net income of $6.7 million for the nine months ended September 27, 2024.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

*Segment Review*

For additional financial information related to our operating segments including the reconciliation of consolidated net (loss) income to adjusted EBITDA, see <u>[Note 15 – Segment Information](#i72ddbf5b43d2414d8aca6a34582c7ed2_76)</u>.

The following table summarizes consolidated net sales and adjusted EBITDA by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** | | |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |<br>**Change ($)** |<br>**Change (%)** |
| **Net sales** | | | | |
| &nbsp;&nbsp;Powered Vehicles Group | $371.5 | $345.2 | $26.3 | 7.6% |
| &nbsp;&nbsp;Aftermarket Applications Group | 343.8 | 309.3 | 34.5 | 11.2 |
| &nbsp;&nbsp;Specialty Sports Group | 390.9 | 386.6 | 4.3 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net sales | $1106.2 | $1041.1 | $65.1 | 6.3% |
| **Adjusted EBITDA** |  |  |  |  |
| &nbsp;&nbsp;Powered Vehicles Group | $49.7 | $40.7 | $9.0 | 22.1% |
| &nbsp;&nbsp;Aftermarket Applications Group | 45.5 | 38.4 | 7.1 | 18.5 |
| &nbsp;&nbsp;Specialty Sports Group | 81.3 | 89.8 | (8.5) | (9.5) |
| &nbsp;&nbsp;Unallocated corporate expenses | (43.1) | (42.3) | (0.8) | (1.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $133.3 | $126.6 | $6.7 | 5.3% |

---

*\*Numbers may not foot due to rounding.*

***Powered Vehicles Group***

Powered Vehicles Group net sales increased by $26.3 million, or 7.6%, due to the inclusion of $32.7 million in net sales from Marzocchi acquired in December 2024, partially offset by lower industry demand in automotive OE.

Powered Vehicles Group adjusted EBITDA increased by $9.0 million, or 22.1%, mainly due to an increase in gross profit, partially offset by higher research and development expenses.

***Aftermarket Applications Group***

Aftermarket Applications Group net sales increased by $34.5 million, or 11.2%, driven by increased demand for aftermarket products; however, high interest rates, high vehicle costs, and macro-economic conditions impacting dealers and consumers continue to pose challenges.

Aftermarket Applications Group adjusted EBITDA increased by $7.1 million, or 18.5%, mainly due to higher gross profit.

***Specialty Sports Group***

Specialty Sports Group net sales increased by $4.3 million, or 1.1%.

Specialty Sports Group adjusted EBITDA decreased by $8.5 million, or 9.5%, primarily due to a decrease in gross profit and increases in sales and marketing and research and development expenses.

***Unallocated corporate expenses***

Unallocated corporate expenses increased by $0.8 million, or 1.9% to $43.1 million, compared to $42.3 million in the same period of the prior fiscal year.

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**<u>[**Table of Contents**](#i72ddbf5b43d2414d8aca6a34582c7ed2_7)</u>**

**Liquidity and Capital Resources**

Our primary cash needs are to support working capital, research and development, interest on debt, employee compensation, capital expenditures, acquisitions, debt repayments, and other general corporate purposes. Historically, we generally financed our liquidity needs with operating cash flows, borrowings under our Credit Agreement, and the issuance of common stock. These sources of liquidity may be impacted by events described in <u>[Cautionary Note Regarding Forward-Looking Statements](#i72ddbf5b43d2414d8aca6a34582c7ed2_85)</u> and <u>[Part II, Item 1A. Risk Factors](#i72ddbf5b43d2414d8aca6a34582c7ed2_127)</u>.

As of October 3, 2025, we held $12.7 million of our $65.4 million of cash and cash equivalents in accounts of our subsidiaries outside of the U.S., which we may repatriate.

A summary of our operating, investing, and financing activities is shown in the following table:

---

| | | |
|:---|:---|:---|
| | **For the nine months ended** | **For the nine months ended** |
| **(in millions)** | **October 3, 2025** | **September 27, 2024** |
| Net cash provided by operating activities | $42.8 | $50.1 |
| Net cash used in investing activities | (27.2) | (42.5) |
| Net cash used in financing activities | (21.5) | (1.7) |
| Effect of exchange rate changes on cash and cash equivalents | (0.4) | (0.4) |
| Change in cash and cash equivalents | $(6.3) | $5.6 |

---

*\*Amounts may not foot due to rounding.* 

We expect that cash on hand, cash flows from operations and availability under our Credit Agreement will be sufficient to fund our operations during the next 12 months from the date of this Form 10-Q and beyond.

***Operating activities***

In the nine months ended October 3, 2025, net cash provided by operating activities was $42.8 million. Our investment in operating assets and liabilities is mainly a result of an increase in accounts receivable of $30.7 million, a decrease in accrued expenses and other liabilities of $8.5 million, an increase in inventory of $4.9 million, and a decrease in income taxes payable of $4.8 million, partially offset by a decrease in prepaids and other assets of $0.6 million, excluding the impact of foreign currency translation. The change in our accounts receivable reflects an increase in our sales and the timing of customer collections. The decrease in income taxes payable is mainly due to our income tax payments. The decrease in accrued expenses and other liabilities is driven by a reduction in warranty reserve. On a reported currency basis, inventory increased primarily due to planned inventory builds to support anticipated demand, the impact from higher tariffs, and foreign currency translation, partially offset by our efforts to optimize inventory levels.

In the nine months ended September 27, 2024, net cash provided by operating activities was $50.1 million. Our investment in operating assets and liabilities is a result of an increase in inventory of $29.0 million, a decrease in income taxes payable of $25.3 million, and an increase in accounts receivable of $21.8 million, partially offset by an increase in accounts payable of $24.2 million, an increase in accrued expenses and other liabilities of $11.3 million, and a decrease in prepaids and other assets of $7.8 million. The decrease in income taxes payable is mainly due to lower income tax expense and our income tax payments. The increase in inventory is mainly due to timing and some seasonal inventory. The change in our accounts receivable reflects an increase in our sales and the timing of customer collections. The decrease in prepaids and other assets is primarily due to lower chassis deposits as we worked to sell through model year 2024. The increase in accrued expenses and other liabilities is mainly due to additional leases. The change in our accounts payable is driven by timing of inventory purchases and vendor payments.

***Investing activities***

In the nine months ended October 3, 2025 and September 27, 2024, net cash used in investing activities was $27.2 million and $42.5 million, respectively. Investing activities for the nine months ended October 3, 2025 consisted of $27.2 million of property and equipment additions. Investing activities for the nine months ended September 27, 2024 consisted of $32.1 million of property and equipment additions, $5.3 million of cash consideration for our purchase of other assets, and $5.0 million of cash consideration for our acquisitions.

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***Financing activities***

In the nine months ended October 3, 2025, net cash used in financing activities was $21.5 million, and consisted of the proceeds from our Credit Agreement revolver of $77.0 million that were used to support our working capital, offset by payments of $79.0 million to reduce the revolver borrowings, $18.2 million repayments on our term loans, and payments of $1.3 million to repurchase shares of our common stock to cover withholding taxes from our stock-based compensation program.

In the nine months ended September 27, 2024, net cash used in financing activities was $1.7 million, and consisted of the proceeds from our Credit Agreement revolver of $169.0 million and draw from the Delayed Draw Term Loan of $200.0 million that were used to support our working capital, offset by payments of $329.0 million to reduce the revolver borrowings, $13.2 million quarterly repayment on our Term A Loan, $25.0 million to repurchase shares of our common stock for retirement, and payments of $2.6 million to repurchase shares of our common stock to cover withholding taxes from our stock-based compensation program.

**Credit Agreement**

On April 5, 2022, the Company entered into a new credit agreement with Wells Fargo Bank, National Association, and other named lenders. The Credit Agreement, which matures on April 5, 2027, provides for revolving loans, swingline loans and letters of credit up to an aggregate amount of $650.0 million.

The Company may borrow, prepay, and re-borrow principal under the Credit Agreement during its term. Advances under the Credit Agreement can be either Adjusted Term SOFR loans or base rate loans. SOFR rate revolving loans bear interest on the outstanding principal amount thereof for each interest period at a rate per annum equal to Term SOFR for such calculation plus 0.10% plus a margin ranging from 1.00% to 2.25%. Base rate revolving loans bear interest on the outstanding principal amount thereof at a rate per annum equal to the highest of (i) Federal Funds Rate plus 0.50%, (ii) the rate of interest in effect for such day as publicly announced from time to time by the lender as its "prime rate", and (iii) Adjusted Term SOFR rate for a one-month tenor plus 1.00%, subject to the interest rate floors set forth therein, plus a margin ranging from 0.00% to 1.00%. At October 3, 2025, the one-month SOFR and three-month SOFR rates were 4.29% and 4.34%, respectively. At October 3, 2025, our weighted-average interest rate on outstanding borrowing was 6.28%.

On November 14, 2023, in connection and concurrently with the closing of the Marucci acquisition, the Company entered into the First Incremental Facility Amendment (the "First Amendment") amending the Credit Agreement. The Fist Amendment provided the Company with the Incremental Term A Loan in an amount of $400.0 million and the Delayed Draw Term Loan in an amount of $200.0 million, each of which are permitted under the Credit Agreement, subject to satisfaction of certain conditions. The Incremental Term A Loan was fully funded on November 14, 2023 and used to fund a portion of the consideration owed under the Marucci acquisition. The Delayed Draw Term Loan was available to the Company for up to six months commencing on December 6, 2023, until the earlier of (a) May 14, 2024 and (b) the date on which the Delayed Draw Term commitments have been terminated. Each Incremental Term Loan is subject to quarterly amortization payments of principal at a rate of 5.00% per annum. The Incremental Term Loans are in the form of term SOFR loans and base rate loans, at the option of the Company, and have an applicable margin ranging from 0.50% to 1.50% for base rate loans and 1.50% to 2.50% for term SOFR loans, subject to adjustment provisions. Each Incremental Term Loan has a maturity date of April 5, 2027, consistent with the Credit Agreement.

The Company paid $10.1 million in debt issuance costs, of which $6.7 million were allocated to the Term A Loan and $3.4 million were allocated to the Delayed Draw Term Loan. Loan fees allocated to the Term A Loan are amortized using the interest method over the term of the Credit Facility. Loan fees allocated to the Delayed Draw Term Loan were deferred as an asset until the debt is drawn.

On May 13, 2024, the Company borrowed the full amount of $200.0 million of the Delayed Draw Term Loan. The fees were reclassified to a contra-liability account and amortized over the term of the drawn debt using the interest method.

On July 31, 2024 and December 20, 2024, the Company entered into the Third and Fourth Amendment to the Credit Facility, respectively to secure an improved covenant profile on its capital structure to provide more flexibility given the uncertain macro environment.

The Credit Agreement is secured by substantially all of the Company's assets, restricts the Company's ability to make certain payments and engage in certain transactions, and requires that the Company satisfy customary financial ratios. The Company was in compliance with the covenants as of October 3, 2025.

On October 24, 2025, the Company entered into the Fifth Amendment to the Credit Agreement and Second Amendment to Guaranty and Security Agreement among the Company, certain subsidiaries of the Company, Wells Fargo Bank, National Association, as administrative agent, swingline lender and L/C issuer (the "Agent"), and a group of lenders party thereto. Refer to <u>[Note 16. Subsequent Events](#i72ddbf5b43d2414d8aca6a34582c7ed2_82)</u> for further information.

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**Recent Developments**

**Global Trade Actions and Tariffs** *-* New and expanded tariffs announced under the Trump administration and triggered retaliatory actions by certain affected countries, and other foreign governments have introduced additional costs and uncertainty into our supply chain, which may impact our cost structure and working capital needs in the near term. We are evaluating the potential effect on our supply chain and sourcing strategies, and while we expect some volatility in cash flows as we adjust, we believe our existing liquidity and access to the Credit Agreement provide sufficient flexibility to manage these developments. Please read "U.S. policies related to global trade and tariffs could have a material adverse effect on our results of operations" within <u>[Item 1A. Risk Factors](#i72ddbf5b43d2414d8aca6a34582c7ed2_127)</u> of this Quarterly Report on Form 10-Q.

**One Big Beautiful Bill Act** - On July 4, 2025, the OBBBA was enacted in the U.S. This legislation introduces several significant tax provisions, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, changes to the international tax framework, and the reinstatement of favorable tax treatment for select business provisions. The OBBBA includes multiple effective dates, with certain provisions taking effect in 2025 and others phased in through 2027. We have reviewed the enacted legislation and have determined that these provisions do not affect the measurement of our deferred tax assets and liabilities as of October 3, 2025. We will continue to assess the impact on the effective tax rate for future periods.

**Material Cash Requirements**

There have been no material changes to the information in our material cash requirements related to commitments or contractual obligations from those reported in our Annual Report on Form 10-K for the fiscal year ended January 3, 2025, as filed with the SEC on February 28, 2025.

**Inflation**

Significant increases in inflation, particularly those related to wages and increases in the cost of raw materials, have and could continue to have an adverse impact on our business, financial condition, and results of operations.

**Interest Rates**

Interest rate volatility can impact our borrowing costs and overall financial condition. Significant increases could lead to higher interest expense on our variable-rate debt. To mitigate this risk and enhance predictability, we utilize interest rate swaps to manage our exposure to interest rate fluctuations.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

There have been no material changes to the disclosures discussed in the section "Quantitative and Qualitative Disclosures About Market Risk" in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended January 3, 2025, as filed with the SEC on February 28, 2025.

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

We maintain "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Our management, under the direction and with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of October 3, 2025. Based on the evaluation of our disclosure controls and procedures as of October 3, 2025, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

**Changes in Internal Control over Financial Reporting**

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**Inherent Limitations on Effectiveness of Controls**

Our management, including our Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures and internal controls over financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance level. However, our management does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been or will be detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error, oversight, or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

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**PART II. OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

On February 20, 2024, a complaint alleging violations of federal securities laws and seeking certification as a class action was filed against the Company and certain of its current and former officers in the United States District Court for the Northern District of Georgia in Atlanta. On August 16, 2024, the plaintiff filed an amended complaint that purported to seek damages on behalf of a putative class of persons who purchased the Company's common stock between May 6, 2021 and November 2, 2023. The amended complaint asserted claims under Sections 10(b) and 20 of the Securities Exchange Act and alleged that the Company and certain current and former officers made material misstatements and omissions to investors regarding demand for the Company's products and its inventory levels. The amended complaint generally sought money damages, interest, attorneys' fees, and other costs. On October 15, 2024, the defendants filed a motion to dismiss the amended complaint, which plaintiff opposed. On March 13, 2025, the Court dismissed the amended complaint but granted plaintiff leave to file a second amended complaint. On April 14, 2025, plaintiff filed a second amended complaint asserting essentially the same claims and relief. The defendants moved to dismiss the second amended complaint on May 30, 2025, which plaintiff opposed on July 14, 2025, following which the defendants filed their reply on August 11, 2025. The defendants deny all allegations of wrongdoing, believe the plaintiff's positions are without merit, and intend to vigorously defend themselves.

On October 9, 2024, and October 29, 2024, two stockholder derivative complaints were filed in the United States District Court for the Northern District of Georgia against certain of the Company's officers and its directors, with the Company named as a nominal defendant. The cases are assigned to the same judge presiding over the securities fraud class action. The complaints are premised on substantially the same factual allegations as the securities fraud class action, but in these complaints, the plaintiff claims that the Company's officers and directors breached their fiduciary duties or otherwise engaged in wrongdoing by allowing the underlying securities fraud to occur. The court stayed these cases pending the decision on the motion to dismiss the securities fraud litigation. The defendants deny all allegations of wrongdoing, believe the plaintiffs' claims are without merit, and intend to vigorously defend themselves.

**ITEM 1A. RISK FACTORS** 

***U.S. policies related to global trade and tariffs could have a material adverse effect on our results of operations.***

The current domestic and international political environment, including existing and potential changes to U.S. policies related to global trade and tariffs, have resulted in uncertainty surrounding the future state of the global economy. In 2018, the U.S. imposed tariffs of 25% on steel and 10% on aluminum, with only a handful of countries exempt from the increase. The new Trump administration recently enhanced these measures by increasing the tariffs on aluminum and steel to 50% for all countries except the United Kingdom, expanding the products on which the tariffs will be assessed to include derivative products containing steel or aluminum, and terminating all countrywide exemptions and the product specific exemption process. There is an inclusion process through which domestic industry can request the U.S. include new derivative steel and aluminum products that will be subject to the increased tariffs.

Throughout the first Trump administration, the U.S. and China imposed a variety of tariffs on most goods traded between the two countries. This included the imposition of tariffs on a substantial number of Chinese-origin goods resulting from the U.S. investigation of Chinese theft of U.S. intellectual property under Section 301 of the Trade Act of 1974, which the Biden administration continued and increased for a number of products. The U.S. and the European Union also imposed tariffs on each other's products stemming from a dispute at the World Trade Organization related to aircraft. The Biden administration and U.S. Congress created significant uncertainty about their review of tariffs and future relationships between the U.S. and other countries with respect to regulations.

Since taking office, the new Trump administration implemented various new strategies regarding tariffs. President Trump invoked the International Emergency Economic Powers Act ("IEEPA") to impose 25% tariffs on products from Mexico and 25% tariffs on products from Canada (with a lower 10% tariff on Canadian energy and energy resources) but exempted from the tariffs those products that are entitled to preferential treatment under the United States-Mexico-Canada Agreement. President Trump also imposed a 20% tariff on all imports from China and Hong Kong under the International Emergency Economic Powers Act. Acting on an investigation concluded during the first Trump administration, the current Trump administration imposed tariffs of 25% on certain passenger vehicles and light trucks and parts for those vehicles.

In April 2025, the Trump administration imposed a universal "reciprocal" tariff of at least 10% on all countries and higher rates for certain countries, which took effect on August 1, 2025. While ongoing litigation challenges the IEEPA tariffs, arguing that the tariffs exceed the statutory authority under IEEPA, the U.S. Court of Appeals for the Federal Circuit granted a temporary, administrative stay, which keeps the tariffs in place during ongoing litigation. The tariff actions by the U.S. may result in a

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decrease of global trade volumes due to uncertainty, may create an administrative burden, and will cause retailers to make difficult decisions as to how to pay the tariff or absorb the cost into their profit margins.

While we have exposure to implemented tariffs at this time, in regard to our supply chain and end-user demand, any expansion in the types of tariffs implemented has the potential to negatively impact our supply chain costs and the operating performance of our customers, which in turn may negatively affect our sales, gross margin, and operating performance. Additionally, there is a risk that continued U.S. tariffs on imports could be met with additional retaliatory tariffs on U.S.-produced exports and that the broader trade uncertainty could intensify. This has the potential to significantly impact global trade and economic conditions in many of the regions where we do business and have a material adverse effect on our results of operations.

In addition, with respect to sourcing products and raw materials from third-party suppliers in other countries, our ability to timely or successfully import such products or those made with such raw materials may be adversely affected by changes in U.S. laws. As a result, products we import into the U.S. could be held for inspection by U.S. Customs and Border Patrol ("U.S. CBP") based on a suspicion of noncompliance. Additionally, the Uyghur Forced Labor Prevention Act ("UFLPA") empowers the U.S. CBP to withhold release of items produced in whole or in part in countries or by companies included on the UFLPA entities list, creating a presumption that such goods were produced using forced labor. In January 2025, the Department of Homeland Security added to the UFLPA entity list, marking the largest single expansion of the list to date, and including a large supplier of critical minerals and one of the world's largest textile manufacturers, both linked to forced labor practices in the People's Republic of China. Although we do not believe that our suppliers source materials from entities included on the UFLPA for the products they sell to us or use to manufacture our products, we could be subject to penalties, fines or sanctions if any of the suppliers from which we purchase goods is found to have dealings, directly or indirectly, with entities on the ULFPA entities list. We are committed to complying with the UFLPA and have taken significant steps to assess and mitigate risks within our supply chain. Given the complexity and multi-tiered nature of global supply chains, achieving full traceability for every supplier and sub-supplier presents substantial challenges. However, we are continuously working to enhance our due diligence processes, leveraging available data and supplier engagement to ensure compliance to the fullest extent possible.

Recently, in September 2025, the U.S. CBP issued a Withhold Release Order against bicycles, bicycle parts, and accessories manufactured in Taiwan by Giant Manufacturing Co. Ltd., based on information of possible forced labor use. The similarity in product offerings and our company's products being associated with Giant Manufacturing Co. Ltd. may subject our Taiwan-based or other operations to increased scrutiny and review, which could result in compliance and reporting costs and hinder or delay the importation and delivery of our products manufactured in Taiwan. With the majority of our manufacturing operations for our bike products occurring in Taiwan, any adverse order issued by the U.S. CBP on our company or other manufacturers of bicycles, bicycle parts, and related accessories could negatively affect our business, financial condition or results of operations.

Except as noted in this Item 1A, there have been no material changes to the risk factors described in our Form 10-K for the 2024 fiscal year ended January 3, 2025.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Issuer Purchases of Equity Securities**

The following table contains the details related to the repurchase of common stock based on the date of trade during the quarter ended October 3, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares Purchased** <sup>(1)</sup> | **Weighted-average Price Paid per Share** | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs** <sup>(2)</sup> | **Approximate Dollar Value of Shares that May Yet be Purchased under the Plans or Programs** <sup>(2)</sup> |
| 7/5-8/8 | 504 | $30.37 |  | $250000000 |
| 8/9-9/5 |  | $— |  | $250000000 |
| 9/6-10/3 |  | $— |  | $250000000 |
| Total | 504 | $30.37 |  | $250000000 |
| (1) Shares acquired from holders of restricted stock unit awards to satisfy tax-withholding obligations. | (1) Shares acquired from holders of restricted stock unit awards to satisfy tax-withholding obligations. | (1) Shares acquired from holders of restricted stock unit awards to satisfy tax-withholding obligations. | (1) Shares acquired from holders of restricted stock unit awards to satisfy tax-withholding obligations. | (1) Shares acquired from holders of restricted stock unit awards to satisfy tax-withholding obligations. |
| (2) On November 1, 2023, the Company's Board of Directors authorized a share repurchase plan for up to $300 million in shares of the Company's common stock, par value $0.001 per share. Refer to <u>[Note 11. Stockholders' Equity](#i72ddbf5b43d2414d8aca6a34582c7ed2_61)</u> for further details. | (2) On November 1, 2023, the Company's Board of Directors authorized a share repurchase plan for up to $300 million in shares of the Company's common stock, par value $0.001 per share. Refer to <u>[Note 11. Stockholders' Equity](#i72ddbf5b43d2414d8aca6a34582c7ed2_61)</u> for further details. | (2) On November 1, 2023, the Company's Board of Directors authorized a share repurchase plan for up to $300 million in shares of the Company's common stock, par value $0.001 per share. Refer to <u>[Note 11. Stockholders' Equity](#i72ddbf5b43d2414d8aca6a34582c7ed2_61)</u> for further details. | (2) On November 1, 2023, the Company's Board of Directors authorized a share repurchase plan for up to $300 million in shares of the Company's common stock, par value $0.001 per share. Refer to <u>[Note 11. Stockholders' Equity](#i72ddbf5b43d2414d8aca6a34582c7ed2_61)</u> for further details. | (2) On November 1, 2023, the Company's Board of Directors authorized a share repurchase plan for up to $300 million in shares of the Company's common stock, par value $0.001 per share. Refer to <u>[Note 11. Stockholders' Equity](#i72ddbf5b43d2414d8aca6a34582c7ed2_61)</u> for further details. |

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**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

**Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements**

During the three months ended October 3, 2025, none of our officers or directors (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).

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**ITEM 6. EXHIBITS**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit Number** | **Exhibit Description** | **Form** | **File No.** | **Filing Date** | **Filed or Furnished Herewith** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1424929/000142492923000133/foxf2023-06x3010xqex31.htm)</u> | Second Amended and Restated Certificate of Incorporation | 10-Q | 001-36040 | August 4, 2023 |  |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1424929/000142492924000105/exhibit31secondamendedandr.htm)</u> | Second Amended and Restated Bylaws | 8-K | 001-36040 | August 1, 2024 |  |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/1424929/000142492925000086/exhibit101fifthamendmentto.htm)</u> | Fifth Amendment to Credit Agreement and Second Amendment to Guaranty and Security Agreement, dated October 24, 2025, among Fox Factory Holding Corp. and certain of its subsidiaries, Wells Fargo Bank, National Association, and other financial institutions party thereto. | 8-K | 001-36040 | October 27, 2025 |  |
| <u>[31.1](foxf2025-10x0310xqex311.htm)</u> | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended. |  |  |  | **X** |
| <u>[31.2](foxf2025-10x0310xqex312.htm)</u> | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended. |  |  |  | **X** |
| <u>[32.1\*](foxf2025-10x0310xqex321.htm)</u> | Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended. |  |  |  | **X** |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |  |  |  | **X** |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  | **X** |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  | **X** |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  | **X** |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  | **X** |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  | **X** |
| 104 | Cover page formatted as Inline XBRL and contained in Exhibit 101 |  |  |  |  |

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X&nbsp;&nbsp;&nbsp;&nbsp;Filed herewith

\*&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | FOX FACTORY HOLDING CORP. | FOX FACTORY HOLDING CORP. |
| November 6, 2025 | By: | /s/ Dennis C. Schemm |
|  |  | **Dennis C. Schemm, Chief Financial Officer** |
|  |  | **(Principal Financial Officer)** |
|  | FOX FACTORY HOLDING CORP. | FOX FACTORY HOLDING CORP. |
| November 6, 2025 | By: | /s/ Brendan R. Enick |
|  |  | **Brendan R. Enick, Chief Accounting Officer** |
|  |  | **(Principal Accounting Officer)** |

---

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION OF DISCLOSURE IN FOX FACTORY HOLDING CORP'S** 

**QUARTERLY REPORT FILED ON FORM 10-Q**

I, Michael C. Dennison, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Fox Factory Holding Corp.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| November 6, 2025 |
| /s/ Michael C. Dennison |
| Michael C. Dennison |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION OF DISCLOSURE IN FOX FACTORY HOLDING CORP'S** 

**QUARTERLY REPORT FILED ON FORM 10-Q**

I, Dennis C. Schemm, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Fox Factory Holding Corp.:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| November 6, 2025 |
| /s/ Dennis C. Schemm |
| Dennis C. Schemm |
| Chief Financial Officer |
| (Principal Financial Officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND**

**PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

The undersigned hereby certify, pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, and in accordance with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in their capacities as officers of Fox Factory Holding Corp. (the "Company"), that, to their knowledge, the Quarterly Report on Form 10-Q of the Company for the quarter ended October 3, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such report.

---

| |
|:---|
| November 6, 2025 |
| /s/ Michael C. Dennison |
| Michael C. Dennison |
| Chief Executive Officer |
| (Principal Executive Officer) |
| /s/ Dennis C. Schemm |
| Dennis C. Schemm |
| Chief Financial Officer |
| (Principal Financial Officer) |

---

This certification accompanies the Report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Fox Factory Holding Corp. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.

<br>