A global manufacturer of electronic components facing severe profitability challenges with recent net losses exceeding $500M despite maintaining substantial cash reserves.
Investors might consider the stock based on its strong liquidity position with $58.0M in cash versus $524M in total debt, providing a buffer against immediate insolvency. The positive operating cash flow of $60.9M indicates that core business operations can still generate liquid funds despite accounting losses, potentially allowing for future restructuring or cost-cutting initiatives. If the company can reverse its revenue decline and stop the net loss trend, the current valuation could reflect significant downside potential if market sentiment improves.
The massive net loss of $544.7M in 2026 is a glaring red flag that suggests the business model may be unsustainable without major capital injection or strategic pivots. With revenue dropping from $1.60B in 2022 to $1.39B in 2025, the company faces an existential threat from shrinking market share and inability to compete on profitability. The accumulated retained earnings deficit of $330.8M signals that the company is eroding its historical equity base, raising concerns about long-term solvency and shareholder value destruction.
FOX Factory Holding Corp manufactures and sells high-performance consumer electronics components globally, serving markets in North America, Europe, and Asia. The company leverages its extensive global manufacturing footprint to produce essential parts for major electronics brands while navigating a challenging macroeconomic environment marked by declining revenue and significant operating losses.
Recent financial performance highlights a dramatic deterioration from a 2023 net income of $120.8M to a massive 2026 net loss of $544.7M, coinciding with revenue contraction below the 2022 levels. While operating cash flow remains positive at $60.9M and ending cash reserves stand at $58.0M, the company is burning through retained earnings with a deficit of over $330M. The widening gap between cost of revenue ($1.02B) and gross profit ($443.2M) alongside high operating expenses suggests intense margin compression or pricing power issues.
The global consumer electronics components industry is highly competitive with low barriers to entry for manufacturing but high thresholds for technology and scale. Companies face constant pressure from supply chain disruptions, rapid technological obsolescence, and price wars among manufacturers seeking to capture market share in a cyclical demand environment.
| Metric | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|
| Revenue | $1.60B | $1.46B | $1.39B | $1.47B |
| Cost of Revenue | $1.07B | $999.4M | $970.3M | $1.02B |
| Gross Profit | $531.3M | $464.8M | $423.6M | $443.2M |
| Operating Expenses | $284.6M | $304.7M | $365.9M | $966.2M |
| Operating Income | $246.7M | $160.1M | $57.7M | $-522.9M |
| R&D | $56.2M | $53.2M | $60.3M | $69.4M |
| G&A | $116.1M | $124.6M | $139.9M | $151.8M |
| Marketing | $90.8M | $100.5M | $121.2M | $132.1M |
| Stock-Based Comp | $16.4M | $16.5M | $9.6M | $14.3M |
| D&A | $49.2M | $58.6M | $83.6M | $92.3M |
| Depreciation | $27.7M | $32.1M | $39.0M | $48.1M |
| Amortization | $21.5M | $26.5M | $44.5M | $42.0M |
| Other OpEx | $21.5M | $26.5M | $44.5M | $612.9M |
| Non-Operating Income | $-12.9M | $-21.4M | $-56.7M | $-53.4M |
| Interest Expense | $8.9M | $19.3M | $54.9M | $53.7M |
| Pre-Tax Income | $233.8M | $138.7M | $1.0M | $-576.3M |
| Income Tax | $28.5M | $17.8M | $-5.5M | $-31.6M |
| Continuing Ops | $205.3M | $120.8M | $6.5M | $-544.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $205.3M | $120.8M | $6.5M | $-544.7M |
| Minority Interest | $0 | $0 | $-38.0K | $-141.0K |
| Net to Common | $205.3M | $120.8M | $6.5M | $-544.6M |
| Metric | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|
| Current Assets | $797.7M | $768.1M | $727.7M | $745.7M |
| Cash & Equivalents | — | — | $71.7M | $58.0M |
| Accounts Receivable | $200.4M | $171.1M | $165.8M | $190.7M |
| Inventory | $350.6M | $371.8M | $404.7M | $388.6M |
| Prepaid Expenses | $101.4M | $141.5M | $85.4M | $108.4M |
| Other Current Assets | $145.2M | $83.6M | $0 | $0 |
| Long-Term Assets | $820.7M | $1.47B | $1.50B | $926.0M |
| PP&E (Net) | $202.2M | $237.2M | $246.4M | $234.6M |
| Intangibles | $179.0M | $483.3M | $448.9M | $399.4M |
| Goodwill | $324.0M | $636.6M | $639.5M | $83.6M |
| Operating Leases | $48.1M | $84.3M | $104.0M | $99.0M |
| Other LT Assets | $67.4M | $32.8M | $65.8M | $109.4M |
| Total Assets | $1.62B | $2.24B | $2.23B | $1.67B |
| Current Liabilities | $258.9M | $207.6M | $259.8M | $260.3M |
| Accounts Payable | $131.2M | $104.2M | $144.1M | $141.4M |
| Current Debt | $0 | $0 | $24.3M | $26.9M |
| Current Leases | $10.3M | $14.1M | $16.7M | $16.2M |
| Taxes Payable | $40.7M | $21.7M | $9.3M | $7.4M |
| Other Current Liab | $-51.0M | $-35.9M | $-26.0M | $-23.6M |
| Long-Term Liabilities | $238.1M | $813.0M | $771.4M | $741.4M |
| Long-Term Debt | $0 | $373.5M | $527.8M | $496.7M |
| LT Operating Leases | $37.1M | $69.2M | $88.2M | $89.8M |
| Other LT Liab | $201.0M | $370.2M | $155.4M | $154.9M |
| Total Liabilities | $496.9M | $1.02B | $1.03B | $1.00B |
| Shareholders' Equity | $1.12B | $1.22B | $1.20B | $670.2M |
| Retained Earnings | $764.1M | $878.1M | $875.4M | $330.8M |
| AOCI | $14.8M | $9.0M | $224.0K | $832.0K |
| Treasury Stock | $13.8M | $13.8M | $13.8M | $13.8M |
| Total L&E | $1.62B | $2.24B | $2.23B | $1.67B |
| Metric | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|
| Net Income (CFO) | $205.3M | $120.8M | $6.5M | $-544.7M |
| Non-Cash Adjustments | $-186.0M | $162.3M | $126.1M | $577.2M |
| Working Capital Changes | $167.9M | $-104.4M | $-767.0K | $28.5M |
| Cash from Operations | $187.1M | $178.7M | $131.8M | $60.9M |
| Capital Expenditures | $43.7M | $46.9M | $44.0M | $34.0M |
| Cash from Investing | $-44.7M | $-750.4M | $-76.3M | $-34.0M |
| Share Buybacks | — | $25.0M | $25.0M | $0 |
| Cash from Financing | $-179.1M | $509.0M | $-67.3M | $-40.0M |
| FX Effect | $2.3M | $1.1M | $-185.0K | $-608.0K |
| Net Change in Cash | $-34.4M | $-61.6M | $-12.0M | $-13.7M |
| Beginning Cash | $179.7M | $145.2M | $83.6M | $71.7M |
| Ending Cash | $145.2M | $83.6M | $71.7M | $58.0M |
The company's revenue is derived primarily from the design, manufacture, and sale of consumer electronics parts including displays, power supplies, and battery packs. These segments operate across a diverse range of industries such as telecommunications, home appliances, and automotive electronics, utilizing both owned factories and strategic partnerships to meet global demand.
The most critical risk is the severe and persistent net loss of $544.7M recorded in 2026, indicating fundamental operational or market viability issues. The company carries a substantial long-term debt load of approximately $524M combined with current portions, creating significant interest expense pressure on cash flows. Declining revenue trends over the last three years suggest weakening market demand or loss of major customer contracts that could further erode profitability.
FOX Factory Holding possesses a deep-rooted global manufacturing network that allows for flexible scaling in response to client needs. The company benefits from long-term relationships with major international technology brands, providing stability in supply chain contracts despite short-term volatility. Its diversified product portfolio across multiple consumer electronics categories helps mitigate risks associated with demand shifts in any single sector.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.