Fox Factory's CEO Exits on the Same Day the Outlook Shrinks

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Fox Factory Holding delivered a full set of bad news in one morning on October 16, 2026. The maker of what it calls performance-defining products and systems said chief executive Mike Dennison was stepping down, reported preliminary third-quarter results below its own guidance and cut its outlook for the year. Independent director Douglas Grimm took over as interim CEO the same day. Shares fell more than 20% in premarket trading, which suggests investors were not comforted by the efficiency of announcing everything at once.

A temporary captain, by design

Grimm will run the company while the board searches for a permanent successor. He stays on the board but has explicitly ruled himself out of the permanent job. That is a common board move in a sudden transition: it signals stability without turning the interim period into a quiet audition.

The numbers explain the urgency. Preliminary net sales came in at $336 million to $340 million against guidance of $355 million to $380 million, and adjusted EBITDA reached $38 million to $42 million versus a target of $46 million to $54 million. The company pointed to several weak spots at once:

• softer sales and margins at Marucci Sports;
• supply disruptions and higher costs in the Powered Vehicles Group;
• operational problems in the Aftermarket Applications Group;
• weaker bicycle sales.

Resetting expectations

The full-year forecast came down accordingly. Net sales are now expected at $1.35 billion to $1.38 billion, down from $1.42 billion to $1.47 billion, and adjusted EBITDA excluding tariff refunds at $140 million to $150 million instead of $176 million to $196 million. The stock had actually closed up 5.84% at $18.50 the day before the announcement, a reminder that markets can only price in what they have been told. The next permanent CEO will start with a clear brief: fix several divisions at once and win back a very skeptical audience.