Can Fox Factory (FOXF) Balance Earnings Pressures With Innovation in Suspension Technology?

• Earlier this month, Fox Factory Holding Corp. reported third quarter 2025 results, updating its full-year net sales guidance to US$1.445 billion–US$1.475 billion and announcing the launch of its advanced Live Valve semi-active suspension system for the aftermarket truck and Jeep segment, available in early 2026.
• This combination of a new product unveiling and revised financial outlook reflects the company’s emphasis on innovation amid ongoing operating challenges in earnings performance.
• Next, we’ll examine how the introduction of the Live Valve suspension system may influence Fox Factory’s ongoing investment narrative.

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Fox Factory Holding Investment Narrative Recap

To be a Fox Factory Holding shareholder, you need to believe in the company’s ability to capitalize on demand for high-performance, innovative vehicle components, even as macro and operating risks remain pronounced. The recent Q3 results and lowered sales guidance highlight earnings volatility and reinforce that the biggest near-term catalyst, successful new product launches like Live Valve, may not immediately offset soft consumer markets or margin pressures, which remain the most important risk. At this stage, the impact of the recent news does not appear material for short-term catalysts or risks.

Among recent announcements, the introduction of the Live Valve semi-active suspension system stands out. While its long-term potential to strengthen Fox Factory’s product leadership is clear, meaningful revenue contributions and margin relief from this launch are not expected until after its 2026 availability, limiting its impact on near-term results.

However, with cost headwinds from tariffs still a factor, investors should be aware that continued margin pressure may limit near-term recovery if...

Read the full narrative on Fox Factory Holding (it's free!)

Fox Factory Holding's forecast targets $1.7 billion in revenue and $82.3 million in earnings by 2028. This scenario assumes annual revenue growth of 6.1% and an earnings increase of $334.6 million from the current earnings of -$252.3 million.

Uncover how Fox Factory Holding's forecasts yield a $28.14 fair value, a 76% upside to its current price.

Exploring Other Perspectives

Four private investor estimates from the Simply Wall St Community place Fox Factory’s fair value between US$15.70 and US$45.58. With cyclicality and consumer exposure a key risk flagged by the analyst consensus, it pays to see how your view compares.

Explore 4 other fair value estimates on Fox Factory Holding - why the stock might be worth over 2x more than the current price!

Build Your Own Fox Factory Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fox Factory Holding research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Fox Factory Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fox Factory Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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