FOX FACTORY HOLDING CORPFOXF
FOX FACTORY HOLDING CORP Segments Disclosure
Segment Information
Due in part to how we operate our business and to best serve our customers, we manage our activities based on three operating segments: Powered Vehicles Group, Aftermarket Applications Group, and Specialty Sports Group. All of our segments design, engineer and manufacture performance-defining products and systems for customers worldwide.
The following is a description of our operating segments.
Powered Vehicles Group: This segment operates 2 plants in the United States and 1 plant in Italy. Our premium products sold under the FOX brand are for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. These products are sold through both OEM and aftermarket channels.
Aftermarket Applications Group: This segment operates 13 plants across the United States. Our range of aftermarket applications products includes premium products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands designed for off-road vehicles and trucks, side-by-sides, on-road vehicles with or without off-road capabilities, specialty vehicles and applications, and commercial trucks.
Specialty Sports Group: This segment operates 8 plants and 11 distribution facilities (9 in the United States, 3 in Taiwan, and 1 facility each in Australia, Canada, Germany, Japan, Sweden, Switzerland, and United Kingdom). Our bike product offerings are used on a wide range of performance mountain bikes, e-bikes and gravel bikes under the FOX, Race Face, Easton Cycling and Marzocchi brands. These products are sold through both OEM and aftermarket channels. Our products for diamond sports include premium baseball and softball equipment under the Marucci, Victus, Lizard Skins, and Baum Bat brands and are sold through dealers and distributors and through direct-to-customer channels.
Net sales and expenses are measured in accordance with the policies and procedures described in Note 1. Business and Summary of Significant Accounting Policies.
We measure the profitability and financial performance of our operating segments based on adjusted EBITDA. Adjusted EBITDA provides a measure of our underlying segment results that is in line with our approach to risk management. We define adjusted EBITDA as net income adjusted for (a) interest expense, (b) income tax or tax benefits, (c) amortization including amortization of purchased intangibles, (d) depreciation, (e) stock-based compensation, (f) litigation and settlement related expenses, (g) organizational restructuring expenses, (h) acquisition and integration-related expenses, (i) strategic transformation costs, (j) goodwill impairment, and (k) intangible and long-lived asset impairment. Adjusted EBITDA Margin is defined as adjusted EBITDA divided by net sales.
Segment asset information is not presented because it is not evaluated by the CODM at the segment level. All transactions between reportable segments are eliminated in consolidation.
The tables that follow show selected segment financial information including information for prior comparative periods. Unallocated corporate expenses are corporate overhead expenses that are not directly attributable to one of our business segments and include unallocated occupancy costs for our corporate headquarters, acquisition costs, other benefit and compensation programs, including performance-based compensation, and administrative expenses such as accounting, finance, legal, human resources, and information technology expenses.
| For the fiscal years ended | ||||||||||||||||||||
| January 2, 2026 | January 3, 2025 | December 29, 2023 | ||||||||||||||||||
| Net sales | ||||||||||||||||||||
| Powered Vehicles Group | $ | 488,143 | $ | 461,403 | $ | 523,862 | ||||||||||||||
| Aftermarket Applications Group | 470,013 | 421,453 | 551,143 | |||||||||||||||||
| Specialty Sports Group | 509,165 | 511,065 | 389,173 | |||||||||||||||||
| Net sales | $ | 1,467,321 | $ | 1,393,921 | $ | 1,464,178 | ||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| Powered Vehicles Group | 62,283 | 53,819 | 79,159 | |||||||||||||||||
| Aftermarket Applications Group | 55,769 | 51,745 | 126,784 | |||||||||||||||||
| Specialty Sports Group | 107,642 | 117,811 | 117,766 | |||||||||||||||||
| $ | 225,694 | $ | 223,375 | $ | 323,709 | |||||||||||||||
| Reconciliation of segment adjusted EBITDA | ||||||||||||||||||||
| Unallocated corporate expenses | (57,338) | (56,362) | (62,661) | |||||||||||||||||
| Goodwill impairment | (557,307) | — | — | |||||||||||||||||
Intangible and long-lived asset impairment | (13,517) | — | — | |||||||||||||||||
Depreciation and amortization(1) | (88,398) | (83,566) | (58,603) | |||||||||||||||||
| Non-cash stock-based compensation | (14,266) | (9,606) | (16,465) | |||||||||||||||||
| Litigation and settlement-related expenses | (2,042) | (4,329) | (2,724) | |||||||||||||||||
Other acquisition and integration-related expenses(2) | (2,375) | (8,054) | (19,214) | |||||||||||||||||
| (13,890) | (3,218) | (3,952) | ||||||||||||||||||
| Loss on fixed asset disposals related to organizational restructure | — | — | (1,027) | |||||||||||||||||
| Strategic transformation costs | (491) | (1,689) | — | |||||||||||||||||
| Interest and other expense, net | (52,359) | (55,539) | (20,400) | |||||||||||||||||
| Consolidated income before income taxes | $ | (576,289) | $ | 1,012 | $ | 138,663 | ||||||||||||||
(1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment and accelerated depreciation related to organizational restructuring initiatives.
(2) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets.
(3) Represents expenses associated with various restructuring initiatives. See Note 21. Restructuring Charges for more information.
The CODM relies on adjusted EBITDA for assessing performance and allocating resources across segments. On a regular basis, the CODM reviews budget-to-actual variances for adjusted EBITDA to guide capital and personnel distribution. During the annual budgeting and forecasting process, segment adjusted EBITDA is used by the CODM to measure segment performance and to allocate resources such as employees, financial assets, or capital. Additionally, adjusted EBITDA is reviewed by the CODM in evaluating the efficiency of cost management strategies within each segment, ensuring that financial and operational resources are optimized and aligned with the Company's overall strategic objectives. No expense details by segment are regularly provided to the CODM, and accordingly, no significant segment expenses have been disclosed. The CODM reviews consolidated expense information.
The following table presents the Company’s other segment items that consist of costs of sales and operating expenses excluding goodwill impairment, intangible and long-lived asset impairment, depreciation and amortization, non-cash stock-based compensation, litigation and settlement-related expenses, other acquisition and integration-related expenses, organizational restructuring-related expenses, and strategic transformation costs, which represent the computable difference between segment net sales and segment adjusted EBITDA.
| For the fiscal years ended | |||||||||||||||||
| January 2, 2026 | January 3, 2025 | December 29, 2023 | |||||||||||||||
| Powered Vehicles Group | $ | 425,860 | $ | 407,584 | $ | 444,703 | |||||||||||
| Aftermarket Applications Group | 414,244 | 369,708 | 424,359 | ||||||||||||||
| Specialty Sports Group | 401,523 | 393,254 | 271,407 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2025 | Feb 28, 2025 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.