Key Highlights

● Fourth-quarter revenue guidance of $287 million–$313 million sits below the $348.5 million consensus.

● The $300 million midpoint is $48.5 million under analysts' expectations.

● Fiscal 2026 net sales guidance now stands at $1.35 billion–$1.38 billion.

● The company also announced CEO Mike Dennison's departure and interim chief Douglas Grimm.

The gap with expectations

Fox Factory Holding (NASDAQ:FOXF) told investors it expects fourth-quarter revenue of $287 million to $313 million, per market reports. Analysts had been looking for about $348.5 million, meaning even the top of the company's range sits well below the consensus figure.

The S&P SmallCap 600 member plunged on Friday. Reports differed on the size of the move at different times: one described a steep premarket drop, and another reported a sharp decline by mid-morning.

A cut to the full year

The fourth-quarter guidance fed into a lower outlook for the full year. Fox Factory now expects fiscal 2026 net sales of $1.35 billion to $1.38 billion, down from its previous range of $1.42 billion to $1.47 billion. Adjusted EBITDA guidance was cut to $140 million to $150 million from $176 million to $196 million.

The company also released preliminary third-quarter numbers. Sales are expected at $336 million to $340 million, below the prior third-quarter guidance range of $355 million to $380 million cited in a separate report. Preliminary third-quarter adjusted EBITDA came in at $38 million to $42 million.

The midpoint of the fourth-quarter range, $300 million, sits $48.5 million below the consensus estimate.

Leadership change

The outlook arrived alongside a change at the top. Fox Factory said CEO Mike Dennison is departing and named Douglas Grimm as interim CEO. One report described the exit as unplanned. No further details on the transition were reported beyond the company's announcement.

Fox Factory designs and makes suspension and ride-dynamics products for mountain bikes, powersports vehicles and trucks, selling to vehicle manufacturers and through aftermarket channels.

Consumers and the market

The news came during a weak session for consumer stocks. The LSEG/Ipsos Primary Consumer Sentiment Index fell 5.3 points to 45.2, its lowest since October 2011, and market reports also noted declines in housing, media and leisure names. U.S. gasoline averaged $4.33 a gallon, compared with $3.06 a year earlier.

The S&P 500 fell 84.62 points to 7,659.44, the Nasdaq Composite dropped 572.99 points to 26,140.03 and the Dow Jones Industrial Average slipped 175.28 points to 52,002.41. The Russell 2000 lost 45.90 points to about 2,721. No closing level for the S&P SmallCap 600 was available. Investors rotated out of technology and into energy, utilities and consumer staples.

Rates stayed elevated. The 10-year Treasury yield eased to roughly 5.1 after topping 5.3 earlier in October, its highest since 2002. The Federal Reserve raised rates by a quarter point in September.

Q4 Range Detail in Fox Factory's Report

Next week's calendar includes General Motors (NYSE:GM) and Genuine Parts (NYSE:GPC) on Tuesday, Oct 20, which may offer context on vehicle and aftermarket demand, and the University of Michigan consumer sentiment survey on Friday, Oct 23. The Federal Reserve announces its next decision on Oct 28. Fed Chair Kevin Warsh declined to preview it at an IMF gathering in Bangkok. "I don't prejudge meetings," he said.

For Fox Factory, investors will look for the company's full third-quarter report for more detail on what is driving the lower fourth-quarter range, including trends by product line and end market, along with any further updates on leadership.