Fox Factory Holding (FOXF) has released its FY 2025 numbers with Q4 total revenue of US$361.1 million and a basic EPS loss of US$6.86, while trailing twelve month figures show revenue of US$1.5 billion and a basic EPS loss of US$13.03. The company’s total revenue increased from US$352.8 million in Q4 2024 to US$361.1 million in Q4 2025, while basic EPS moved from a small loss of US$0.00 to a much larger loss of US$6.86 over the same period, setting up a results season in which margins and the path back toward profitability are firmly in focus for investors.

See our full analysis for Fox Factory Holding.

With the headline numbers on the table, the next step is to see how this margin pressure and loss profile line up against the widely followed narratives around Fox Factory Holding’s recovery potential and long term earnings power.

FY 2025 losses remain heavy at TTM net loss of US$544.6 million

• Over the last twelve months, Fox Factory booked a net loss of US$544.6 million on US$1.5b of revenue, compared with a quarterly loss of US$287.0 million on US$361.1 million of revenue in Q4 2025, so the company is still running at a sizeable loss even with relatively stable sales levels.
• Consensus narrative expects margin recovery over time, but this trailing picture of losses challenges how quickly that can happen:
  • Analysts in the consensus narrative are working with a starting profit margin of about 17.5% in loss terms, while the last twelve months show that losses of US$544.6 million on US$1.5b of revenue are still large in absolute terms.
  • The consensus path to future earnings of US$82.3 million assumes a very different margin profile from what the current TTM data shows, so anyone leaning on that view needs to be comfortable with a sizeable shift in profitability from where the company sits today.

Price at US$16.84 versus DCF fair value of US$35.26

• FOXF trades at a P/S of 0.5x compared with 0.6x for peers and 0.8x for the wider US Auto Components industry, and the current share price of US$16.84 is well below the DCF fair value of US$35.26 that has been provided, so the stock screens as inexpensive against those benchmarks.
• Bulls argue that cost actions and new products can support that valuation gap, and the recent numbers partly line up with that stance:
  • The bullish narrative is built around revenue growing by 7.7% a year and margins moving from a loss of 17.5% to a positive 18.9%, while recent quarters show revenue holding around the US$355 million to US$376 million range but EPS swinging between small profits and sizeable losses.
  • If the bullish view of US$341.5 million of earnings by 2028 plays out, that would be a significant change from the current TTM loss of US$544.6 million, so the wide gap between the share price and the stated DCF fair value hinges on a very different earnings profile from what the trailing data shows today.

Bulls point to cost cuts and product expansion as reasons this low P/S might not last if earnings improve, and you can see how that argument is built out in the 🐂 Fox Factory Holding Bull Case

Interest coverage risk against a backdrop of growing losses

• The trailing analysis flags that interest payments are not well covered by earnings, and this lines up with the five year trend of losses growing at about 57.6% a year and the latest TTM loss of US$544.6 million, which together point to meaningful pressure on the income statement before even thinking about debt service.
• Bears focus on this weak coverage and the risk that higher costs stick around, and the historical data offers some backing for that more cautious take:
  • The bearish narrative assumes margins improve from a loss of 17.5% to a positive 13.1% by 2028, yet the last twelve months still show sizeable losses despite revenue of US$1.5b, which means the company has not yet shown in the reported figures that this margin lift is underway.
  • With losses persisting in Q1 and Q4 2025 at US$259.7 million and US$287.0 million respectively, the concern that operating performance has not yet eased interest coverage risk is grounded in the most recent reported numbers rather than just a theoretical worry.

Skeptics highlight these ongoing losses and weak interest coverage as key reasons to be cautious, and you can see how that more guarded case is laid out in the 🐻 Fox Factory Holding Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Fox Factory Holding on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With bulls and bears both making strong cases, it makes sense to look through the full picture yourself and not lean on just one storyline. If you want a clearer view of the trade off between optimism and concern around this stock, take a look at the 3 key rewards and 1 important warning sign.

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Fox Factory is carrying a TTM net loss of US$544.6 million, weak interest coverage, and a history of sizeable quarterly losses that keep risk firmly on the table.

If this level of earnings pressure and interest coverage risk feels uncomfortable, take a closer look at 76 resilient stocks with low risk scores to quickly zero in on companies with more resilient profiles and steadier fundamentals.

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.