Fox Factory Holding Corp. (FOXF): Business Model Canvas [Dec-2025 Updated]

You're digging into how Fox Factory Holding Corp. actually makes its money, especially now, facing those macroeconomic bumps while still pushing high-end performance parts. Honestly, their engine runs on premium tech-think proprietary suspension and brands like Marucci-aiming for that $1.445 billion to $1.475 billion in net sales for 2025, even while managing debt around $687.7 million as of Q3. If you want to see exactly where the revenue hits, from OEM deals to that $117.8 million aftermarket haul last quarter, you need to look at the nine blocks that make up their entire operation below.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Fox Factory Holding Corp. maintains to get its performance products into the hands of enthusiasts and onto new vehicles. These aren't just handshake deals; they are critical revenue drivers, as you can see from the latest numbers.

Direct supplier relationships with major automotive OEMs. Fox Factory Holding Corp. serves as a direct supplier of shocks, suspension, and components to leading powered vehicle original equipment manufacturers (OEMs). The Powered Vehicles Group (PVG) reflects this channel, though the segment's performance is mixed. For the third quarter of fiscal 2025, PVG net sales hit $125.9 million, marking a solid 15.1% increase year-over-year. Still, management noted that the automotive OE product lines saw lower industry demand in Q2 2025, even as the overall PVG segment grew, partly due to expansion in the motorcycle business. Also, a recent fire at a major aluminum supplier caused some timing-of-shipment impact with automotive customers. You can see the OEM-related business is a significant piece of the pie, but it's not without its supply chain shocks.

Strategic partnerships with leading bicycle and powersports manufacturers. This ties heavily into the Specialty Sports Group (SSG), which serves bicycle OEMs, distributors, and dealers. This partnership channel faced headwinds in late 2025. SSG net sales actually decreased by $16.8 million, or 11.2%, in the third quarter of fiscal 2025 compared to the prior year. Honestly, OEMs, distributors, and retail partners were actively managing toward leaner inventories ahead of year-end, which definitely impacted those results. The company is working with these OEM partners to get components in-sourced to their own factories to help mitigate tariff expense.

The financial snapshot of these OEM-facing segments for the third quarter ended October 3, 2025, looks like this:

Global network of aftermarket retailers and distributors. The Aftermarket Applications Group (AAG) is where this relationship strength really shows. This group drives growth through increased demand for aftermarket products. AAG net sales were $117.8 million in Q3 2025, a strong 17.4% increase year-over-year. For the nine months ended October 3, 2025, AAG sales grew by $34.6 million, or 11.2%, to $343.8 million. This segment is clearly outpacing the OEM-dependent groups right now. Fox Factory Holding Corp. provides products through this global network, which is key when OE channels are tightening up.

Professional athlete and motorsports team sponsorships. While specific dollar amounts tied to these sponsorships aren't public, the qualitative impact is clear across the portfolio, which includes brands like FOX. The company states its portfolio of brands is fueled by innovation that continuously earns the trust of professional athletes and passionate enthusiasts. The PVG team, for example, recently entered the street performance sector with Stratton Shock solutions tuned for the American sports car market, signaling a commitment to improve driving performance through aftermarket channels, which sponsorships help drive.

Component and raw material suppliers for global manufacturing. These relationships are foundational, especially given the cost pressures. Fox Factory Holding Corp. expects pre-mitigated tariff expense to reach approximately $50 million for fiscal year 2025. The company is actively working on countermeasures, including supply-chain changes and selective onshoring, to offset these impacts. You can see the direct impact of supply chain issues, like the aluminum supplier fire, on the automotive OE business. Furthermore, the company is executing cost reduction initiatives, like the one highlighted by the Taiwan facility closure, on track to deliver $25 million of savings in 2025.

• The company's total debt stood at $687.7 million as of October 3, 2025.
• Cash and cash equivalents were $65.4 million as of October 3, 2025.
• Inventory levels were $412.1 million as of October 3, 2025.
• The company extended its credit agreement maturity through October 2030.

Finance: draft 13-week cash view by Friday.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Key Activities

You're looking to map out the core engine of Fox Factory Holding Corp. as of late 2025. This involves digging into the actual operational expenditures and strategic moves that define how they create and deliver value, especially given the tariff headwinds they've been managing.

Advanced research and development (R&D) for ride dynamics is a constant investment area, directly tied to maintaining their performance-defining product edge. This spending is embedded within their adjusted operating expenses, showing a clear commitment to innovation even when overall profitability is pressured by external factors like tariffs.

Here's a look at how R&D and related operating expenses trended in the first three quarters of fiscal 2025, showing the scale of their investment relative to sales:

The focus on precision manufacturing and engineering of performance products underpins their entire value proposition. This activity is being heavily influenced by external cost pressures, specifically the estimated full-year 2025 pre-mitigated tariff impact of approximately $50 million in higher costs. The company is actively countering this through supply chain optimization and manufacturing process adjustments.

The drive for operational efficiency and footprint consolidation is a major theme for 2025. The company is executing a specific cost program designed to save money:

• The $25 million cost reduction program remains on schedule for full delivery in fiscal 2025.
• As of the second quarter of fiscal 2025, approximately 30% of the benefits from this program had been realized.
• This consolidation effort included the closure of the Taiwan facility.
• Management is preparing to advance efforts with a second phase of optimization actions planned to start in fiscal 2026.

Strategic customer launches and product innovation are key to future revenue, even if near-term results are muted. The company has been accelerating these efforts, which impacted Q3 2025 operating expenses. A major innovation focus is the Live Valve system:

• The advanced Live Valve semi-active suspension system was announced as an aftermarket upgrade for trucks and Jeeps in November 2025.
• Meaningful revenue contributions from the Live Valve aftermarket launch are not expected until after its availability in early 2026.
• Q3 2025 margins reflected the impact of intentional timing shifts related to accelerated strategic customer launches in AAG.

Finally, brand portfolio management and targeted marketing campaigns are evident in segment performance. The company manages distinct groups like Aftermarket Applications Group (AAG), Powered Vehicles Group (PVG), and Specialty Sports Group (SSG). For the nine months ended October 3, 2025, year-to-date net sales grew 6.3% to $1,106.2 million, with AAG leading growth at 11.2% ($34.6 million increase) and PVG up 7.6% ($26.2 million increase). SSG sales were up only 1.1% ($4.4 million increase) year-to-date, reflecting inventory management by OEMs and dealers in that segment.

Finance: draft 13-week cash view by Friday.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Key Resources

You're analyzing the core assets Fox Factory Holding Corp. (FOXF) relies on to deliver its value propositions. These aren't just things they own; they are the engines driving performance, especially given the recent market shifts.

Strong portfolio of premium brands (FOX, Marucci, Method Race Wheels)

The strength here is rooted in brand equity across distinct, high-performance niches. You see this reflected in the segment performance, with Aftermarket and Performance Vehicles & Powersports (AAG) net sales up 17.4% year-over-year in Q3 2025, reaching $117.8 million. The portfolio includes:

• FOX
• Marucci
• Method Race Wheels

Proprietary intellectual property (IP) and advanced suspension technology

This is where the engineering moat shows up. The company is actively launching advanced systems, like the Live Valve Suspension aftermarket kits, which were unveiled on November 4, 2025. This continuous innovation is a key resource supporting premium pricing and market share. The company is a global leader in the design, engineering, and manufacturing of performance-defining products.

Global manufacturing and engineering facilities

The physical footprint supports global distribution and OEM supply. While specific facility counts aren't detailed here, the operational scale is evident in the financial results. For the nine months ended October 3, 2025, net sales year-to-date were up 6.3%. The company also noted facility consolidation activities were completed, suggesting optimization of this resource base.

Highly skilled R&D and engineering talent pool

The commitment to this talent is visible in the operating expense structure. For the third quarter of fiscal 2025, total operating expenses were $99.4 million, or 26.4% of net sales. This included $10.7 million in increased operating expenses driven by accelerated investments in research and development and sales and marketing to support strategic customer launches and product innovation. That's a direct investment in the people and projects that create the next generation of IP.

Significant balance sheet capacity, with total debt at $687.7 million (Q3 2025)

Financial flexibility is a critical resource, especially in a challenging macroeconomic environment. As of October 3, 2025, the total debt stood at $687.7 million, which was a reduction of $17.4 million from the fiscal year-end position. Furthermore, the company enhanced its financial flexibility by extending its credit agreement maturity through October 2030. You need to see the current snapshot of the balance sheet to gauge this capacity:

This debt level, relative to the updated full-year 2025 net sales guidance range of $1.445 billion to $1.475 billion, gives you a baseline for leverage assessment. Finance: draft 13-week cash view by Friday.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Value Propositions

Championship-level performance and superior ride dynamics.

Fox Factory Holding Corp. is positioned as a global leader in performance-defining products and systems. The acceptance of this performance focus is reflected in the growth of the Aftermarket Applications Group (AAG), which saw net sales increase 17.4% year-over-year to $117.8 million in the third fiscal quarter ended October 3, 2025. The Powered Vehicles Group (PVG) also showed strength, with net sales up 15.1% to $125.9 million in the same quarter.

Premium, high-end product quality and durability.

The commitment to premium quality supports a Gross Margin of 30.4% reported for the third quarter of fiscal 2025. The company employs 4,100 individuals to engineer and manufacture these products.

Integrated, semi-active electronic suspension systems (Live Valve).

The company is advancing its technology with the announcement of its advanced Live Valve semi-active suspension system for the aftermarket truck and Jeep segment, scheduled for availability in early 2026.

Broad product portfolio across three distinct market segments.

Fox Factory Holding Corp. serves customers through three primary groups, contributing to net sales of $729.9 million for the nine months ended October 3, 2025.

The segment performance for the three months ended July 4, 2025, was:

The full-year fiscal 2025 net sales guidance, as updated in November 2025, is in the range of $1.445 billion to $1.475 billion.

Custom upfitting and personalization for off-road vehicles.

Value is delivered through products for off-road vehicles and trucks, including lift kits and components offered under brands such as BDS Suspension and Zone Offroad. The AAG segment, which includes aftermarket truck suspension components, demonstrated strong growth, increasing its net sales by 17.4% year-over-year in the third quarter of fiscal 2025.

The company's offerings include:

• Powered vehicle products for off-road vehicles and trucks.
• Aftermarket truck suspension component products.
• Motorcycle shocks and forks under the Marzocchi brand.
• Lift kits and components.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Customer Relationships

You're looking at how Fox Factory Holding Corp. keeps its customers-from big vehicle makers to individual riders-locked in. It's a mix of deep integration and direct brand connection.

Deep, long-term technical collaboration with OEM partners.

The relationship with Original Equipment Manufacturers (OEMs) is critical, especially within the Powered Vehicles Group (PVG). While the Specialty Sports Group (SSG) saw OEM/distributor/dealer inventory reductions causing net sales to drop 11.2% year-over-year to $132.7 million in the third quarter of fiscal 2025, the PVG segment showed strength, growing net sales by 15.1% year-over-year to $125.9 million in the same quarter. This PVG growth was partly due to strategic customer program launches. For instance, Fox Factory Holding Corp. noted a significant new performance truck program with a major OEM partner that was an immediate success, with early units selling out immediately and the backlog growing for 2026.

Dedicated enthusiast community engagement and brand loyalty.

Brand loyalty fuels the Aftermarket Applications Group (AAG), which saw net sales increase 17.4% year-over-year to $117.8 million in the third quarter of fiscal 2025. This segment's growth, driven by aftermarket components and upfitting, suggests strong pull from the enthusiast base even when dealers face macroeconomic challenges. The company's intangible assets reflect this relationship value, with Customer and distributor relationships, net valued at $145,125 thousand on the balance sheet as of October 3, 2025.

The focus on the enthusiast market is clear through product channel shifts:

• Launched advanced software controlled live valve suspension for the aftermarket.
• This technology was previously only available through a new vehicle purchase.
• Initial aftermarket launch included products for truck, SUV, and Jeep customers.

High-touch service and support for aftermarket dealers/installers.

The AAG segment's growth of 17.4% in Q3 2025, reaching $117.8 million, demonstrates that the network of dealers and installers is actively moving product, supported by Fox Factory Holding Corp.'s offerings. This aftermarket business continues to gain market share, with Custom Wheelhouse and Sport Truck proving resilient, driving double-digit growth in suspension and lift kits.

Direct-to-consumer (DTC) engagement for select products.

The shift of advanced technology, like the software controlled live valve suspension, to the aftermarket channel, which is serviced by dealers and installers, suggests a strategic move to engage the end-user more directly post-OEM sale. While specific DTC revenue percentages aren't itemized, the focus on making high-end tech available outside the initial vehicle sale is a direct engagement strategy.

Performance validation through professional racing.

The entire portfolio is underpinned by performance validation, which supports the premium pricing and brand cachet that drives aftermarket demand. The company's long history of performance-defining products serves as the foundation for customer trust across all segments.

Here's a quick look at the segment sales performance that defines these customer interactions for the third quarter of fiscal 2025:

For the nine months ended October 3, 2025, AAG net sales increased by $34.6 million or 11.2%.

Finance: draft 13-week cash view by Friday.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Channels

You're looking at how Fox Factory Holding Corp. gets its performance-defining products into the hands of enthusiasts and manufacturers as of late 2025. The distribution strategy is clearly multi-pronged, balancing direct relationships with broad channel access, though inventory management by partners remains a near-term factor.

Direct sales to Original Equipment Manufacturers (OEMs).

Fox Factory Holding Corp. is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle OEMs. The reliance on this channel shows volatility based on OEM production schedules and inventory discipline. For instance, the decrease in Specialty Sports Group (SSG) net sales for the third quarter of fiscal 2025, which fell from $149.5 million in Q3 2024 to $132.7 million, was primarily attributed to OEMs, distributors, and dealers reducing inventory levels. Conversely, the Powered Vehicles Group (PVG) net sales of $125.9 million in Q3 2025 saw growth of 15.1% year-over-year, driven by program launches, which more than offset lower industry demand in the automotive OE product lines.

Global network of independent specialty retailers and dealers.

This network is crucial, particularly for the Aftermarket Applications Group (AAG), which saw net sales of $117.8 million in Q3 2025, a 17.4% increase year-over-year. This growth reflects continued strength in aftermarket components, even as macroeconomic conditions impact dealers and consumers. Fox Factory Holding Corp. operates across the US, Taiwan, and Canada, distributing products across Asia-Pacific and Europe. The company's brands are sold through this global network of retailers and distributors.

Aftermarket distributors for parts and accessories.

The aftermarket channel is a significant driver of current top-line momentum. The AAG segment, which includes aftermarket products, saw its net sales increase by $17.5 million sequentially from Q2 2025 to Q3 2025, reaching $117.8 million. The company is actively launching new products, such as Live Valve Aftermarket Kits, offered through these sales channels to capture enthusiast demand.

Direct-to-Consumer (DTC) e-commerce platforms.

Fox Factory Holding Corp. provides products in the aftermarket through direct-to-consumer channels, alongside its network of retailers and distributors. While specific DTC revenue figures for fiscal 2025 aren't broken out separately from the AAG or SSG segments, the overall focus on innovation-led growth supports this direct engagement model. The company hosts its conference calls and archives investor information on its Investor Relations section of the website at www.ridefox.com.

Vehicle upfitting centers (e.g., Outside Van).

Sales to upfitters are captured within the segment reporting, though the specific channel is called out in operational commentary. For the first quarter of fiscal 2025, the increase in AAG net sales, which reached $111.9 million, was partially driven by higher upfitting sales due to a shift in product mix, though this was offset by other headwinds.

Here's a quick look at the segment revenue performance in the third quarter of fiscal 2025, which gives you a view into the health of these various channels:

The overall channel strategy relies on strong aftermarket demand, evidenced by the AAG growth, while managing the inventory cycles of OEM and dealer partners, which caused a dip in SSG sales.

• Geographic Reach: US, Taiwan, Canada, Asia-Pacific, and Europe.
• Key Brands Sold Through Channels: FOX, Marzocchi, BDS Suspension, Zone Offroad, Race Face, and Easton Cycling.
• Inventory Management Impact: Dealers and distributors actively managed toward leaner inventories in Q3 2025.
• Full Year 2025 Net Sales Guidance: Range of $1.445 billion to $1.475 billion.

Finance: draft 13-week cash view by Friday.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Customer Segments

You're looking at the core customer groups Fox Factory Holding Corp. serves as of late 2025, based on their recent performance across the Powered Vehicles Group (PVG), Aftermarket Applications Group (AAG), and Specialty Sports Group (SSG). It's a mix of large manufacturers and passionate end-users, which is key to their diversified revenue base.

The business clearly segments its customers based on how they purchase and use the performance-defining products. For the nine months ended October 3, 2025, total net sales reached $1,106.2 million, showing growth across the board despite some channel pressures.

Here's a breakdown of the distinct customer segments:

• Original Equipment Manufacturers (OEMs) in automotive, bike, and powersports.
• Performance enthusiasts and professional athletes (Aftermarket).
• Off-road vehicle owners seeking high-end upgrades (AAG segment).
• Baseball and softball players (Marucci brand under SSG).
• Distributors and retailers managing inventory.

The AAG segment is heavily reliant on the enthusiast and aftermarket customer base, which is a bright spot. For the third quarter of fiscal 2025, AAG net sales grew 17.4% year-over-year to $117.8 million, driven by that increased demand for aftermarket components. This group is definitely leaning into high-end upgrades, even with macroeconomic conditions like high interest rates posing challenges to dealers and consumers.

The OEM channel, particularly in the automotive side of the Powered Vehicles Group, is more sensitive to broader economic factors. In the third quarter of fiscal 2025, the PVG segment saw net sales rise 15.1% to $125.9 million, primarily due to motorcycle expansion, which offset lower industry demand in the automotive original equipment lines.

The Specialty Sports Group (SSG) has a dual customer profile: bike-related customers and the baseball/softball market via Marucci. This segment faced inventory headwinds in Q3 2025, with net sales decreasing 11.2% to $132.7 million. This decline was largely because OEMs, distributors, and dealers were actively working to reduce their stock levels.

The Marucci business, which Fox Factory Holding Corp. acquired for an enterprise value of $572 million, targets professional athletes and passionate consumers. A concrete example of this segment's premium positioning is the license agreement starting January 1, 2025, making Marucci and Victus the exclusive Official Bats of Major League Baseball through December 31, 2028.

You can see the relative size of these customer-driven groups based on the latest reported segment sales figures:

Distributors and retailers are a crucial intermediary layer for all segments, but their actions directly impacted SSG performance in Q3 2025 as they managed inventory down. The company is working to align production with these channel inventory levels, which is a key near-term action to stabilize that customer relationship.

Finance: draft 13-week cash view by Friday.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Cost Structure

The cost structure for Fox Factory Holding Corp. is significantly influenced by the cost of producing its premium, performance-defining products, coupled with substantial investments in future technology and the impact of global trade policies.

Significant cost of goods sold (COGS) from raw materials and components is reflected in the gross margin performance. For the first quarter of fiscal 2025, Fox Factory Holding Corp. reported a gross margin of 30.9%, which was the same as the first quarter of fiscal 2024. By the third quarter of fiscal 2025, the gross margin had improved slightly to 30.4% year-over-year. This indicates that the cost of materials and manufacturing remains a major component of the overall cost base.

Tariffs and duties present a notable, quantifiable headwind. Fox Factory Holding Corp. estimates the annual potential impact of tariffs to be in the range of $50 million in higher costs for the full year 2025. This estimate was an increase from an earlier projection of $38 million. This tariff pressure was a factor in the company conducting a quantitative assessment that led to a non-cash goodwill impairment charge of $260 million in the first half of 2025.

Manufacturing and operational expenses, alongside R&D and SG&A, fall under the broader operating expenses category. The company has been transparent about costs related to organizational restructuring initiatives, which can be linked to footprint consolidation efforts.

You can see the breakdown of recent operating expenses below. Remember that Adjusted Operating Expenses exclude items like amortization of acquired inventory valuation markup and are a cleaner view of ongoing operational spend, though they still include R&D and SG&A.

Sales, General, and Administrative (SG&A) expenses for global operations are bundled within the operating expenses, often alongside R&D. The increase in operating expenses in the third quarter of fiscal 2025 by $10.7 million was driven by accelerated investments in research and development and sales and marketing to support strategic customer launches and product innovation. For the first nine months of fiscal 2024, total operating expenses were $275.3 million, or 26.4% of net sales.

The focus on innovation means High R&D investment is a structural cost. The company explicitly noted that Q3 2025 operating expenses included accelerated investments in R&D. Similarly, Q1 2025 adjusted operating expenses of $84.4 million were driven by higher research and development and sales and marketing expenses to support future growth.

• R&D and Sales/Marketing drove the $6.1 million operating expense increase in Q2 Fiscal 2025.
• Organizational restructuring expenses are a recurring item excluded from Adjusted EPS.
• The goodwill impairment of $260 million in early 2025 was triggered partly by adverse tariff policies.

Fox Factory Holding Corp. (FOXF) - Canvas Business Model: Revenue Streams

You're looking at how Fox Factory Holding Corp. (FOXF) brings in its money as of late 2025. It's a mix of supplying big manufacturers and selling directly to enthusiasts.

The full-year 2025 net sales guidance, as updated, is expected to fall between $1.445 billion and $1.475 billion. This gives you the top-line expectation for the year.

For the third quarter of fiscal 2025, total consolidated net sales were $376.4 million, which was a 4.8% increase versus the same quarter last year. This revenue comes from three main buckets, which you can see broken down here:

Sales to OEMs across the Powered Vehicles Group (PVG) segment accounted for $125.9 million in Q3 2025. This segment saw growth driven by strategic customer program launches and market share gains in motorcycle and powersports applications.

Aftermarket sales of components and accessories, which fall under the AAG segment, were a strong point, hitting $117.8 million in Q3 2025. This was up 17.4% year-over-year. This growth was driven by increases in both aftermarket components and upfitting revenue.

Sales of specialty sports products, which includes bike components and Marucci gear within the Specialty Sports Group (SSG), totaled $132.7 million for the quarter. This segment underperformed expectations, showing an 11.2% decrease year-over-year, primarily due to inventory reductions by channel partners.

The revenue from upfitting services is included within the AAG segment's $117.8 million figure. Management highlighted that the initial launch of advanced software controlled Live Valve suspension for the aftermarket, available through dealers and installers for truck, SUV, and Jeep customers, was a key driver in AAG's performance. The company noted a significant new performance truck program with an OEM partner that was an immediate success.

Here's a look at the specific revenue drivers within the AAG segment:

• Aftermarket components business continues to gain market share.
• Upfitting sales contributed to the 17.4% year-over-year growth in AAG.
• Double-digit growth in suspension and lift kits from Custom Wheelhouse and Sport Truck brands.

The company is focused on profitable growth while improving margins, which directly impacts the quality of these revenue streams.

Finance: draft 13-week cash view by Friday.