v3.26.1
Segments
 6 Months Ended
Jul. 03, 2026
Segment Reporting [Abstract]  
Segments Segment Information
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, and commercial trucks, and the Marzocchi brand for motorcycles. These products are sold through both OEM and aftermarket channels.
Aftermarket Applications Group: This segment operates 10 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, RTR, Fun-Haver, and Custom Wheel House brands designed for off-road vehicles and trucks, side-by-sides, on-road vehicles with and without off-road capabilities, specialty vehicles and applications, and commercial trucks.
Specialty Sports Group: This segment operates 8 plants and 10 distribution facilities (9 in the United States, 3 in Taiwan, and 1 facility each in Australia, Canada, 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 – Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies included in our Annual Report on Form 10-K for the fiscal year ended January 2, 2026, as filed with the SEC on February 27, 2026.
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) loss on divestiture.
Segment asset information is not presented because it is not evaluated by the CODM at the segment level.
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 three months endedFor the six months ended
July 3, 2026July 4, 2025July 3, 2026July 4, 2025
Net sales
Powered Vehicles Group$124,227 $123,514 $267,606 $245,612 
Aftermarket Applications Group109,553 114,144 224,337 226,058 
Specialty Sports Group124,342 137,206 234,836 258,224 
Net sales$358,122 $374,864 $726,779 $729,894 
Adjusted EBITDA
Powered Vehicles Group15,820 16,387 38,376 30,769 
Aftermarket Applications Group16,155 16,016 27,556 33,010 
Specialty Sports Group27,687 30,385 45,142 53,779 
$59,662 $62,788 $111,074 $117,558 
Reconciliation of segment adjusted EBITDA
Unallocated corporate expenses(14,202)(13,495)(29,914)(28,663)
Goodwill impairment— — — (262,129)
Depreciation and amortization(1)
(20,568)(21,449)(41,184)(43,188)
Loss on divestiture(618)— (10,612)— 
Non-cash stock-based compensation(3,372)(4,562)(7,492)(7,917)
Litigation and settlement-related expenses(114)(474)(308)(1,191)
Other acquisition and integration-related expenses(2)
(33)(739)(218)(1,356)
Organizational restructuring expenses(3)
(253)(3,933)(2,374)(6,244)
Strategic transformation costs(4)
(2,832)— (5,467)(20)
Interest and other expense, net(11,362)(12,631)(22,829)(24,716)
Consolidated income (loss) before income taxes$6,308 $5,505 $(9,324)$(257,866)

(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 valuation adjustment recorded in connection with the purchase of acquired assets.
(3) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees.
(4) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets.
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 three months endedFor the six months ended
July 3, 2026July 4, 2025July 3, 2026July 4, 2025
Powered Vehicles Group$108,407 $107,127 $229,230 $214,843 
Aftermarket Applications Group$93,398 $98,128 $196,781 $193,048 
Specialty Sports Group$96,655 $106,821 $189,694 $204,445