Fri, May 9, 10:07 AM (46 days ago)
**Fox Factory Holding Corp. (FOXF) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $355.03 million, up 6.5% YoY. - **Gross Profit:** $109.68 million, with a gross margin of 30.9%. - **Net Loss:** $259.73 million, significantly impacted by a $262.13 million goodwill impairment charge. - **Cash Flow:** Negative operating cash flow of $0.7 million, with investing and financing activities resulting in a net outflow of $3.87 million. **Profit Margins:** - **Gross Margin:** 30.9%, stable compared to the previous year. - **Operating Margin:** -70.6%, significantly impacted by the goodwill impairment. **Cash Flow:** - **Operating Cash Flow:** Negative $0.7 million, primarily due to changes in working capital. - **Investing Cash Flow:** -$7.18 million, mainly due to property and equipment additions. - **Financing Cash Flow:** $3.35 million, primarily from revolver borrowings and repayments. **Earnings Changes:** - **EPS:** -$6.23, significantly lower due to the goodwill impairment. - **Adjusted EBITDA:** $39.60 million, slightly down 2.2% YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by higher upfitting sales, increased demand for aftermarket products, and growth in bike and motorcycle sales. - **Operating Expenses:** Significantly impacted by the $262.13 million goodwill impairment charge. - **Segment Performance:** All segments showed revenue growth, with the Aftermarket Applications Group showing the highest growth rate. **Trends and Uncertainties:** - **Macroeconomic Factors:** High interest rates, tariffs, and geopolitical tensions pose risks to demand and supply chains. - **Legal Proceedings:** Ongoing securities litigation and stockholder derivative complaints. - **Future Operations:** The company expects to manage liquidity through cash on hand, cash flow from operations, and availability under the 2022 Credit Facility. **Future Outlook:** - **Liquidity:** The company expects sufficient liquidity to fund operations for the next 12 months. - **Capital Expenditures:** The company plans to continue investing in property and equipment. - **Acquisitions:** The company may pursue strategic acquisitions to drive growth. **Ticker:** FOXF