v3.25.2
Segments
 6 Months Ended
Jul. 04, 2025
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 15 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 or without off-road capabilities, specialty vehicles and applications, and commercial trucks.
Specialty Sports Group: This segment operates 10 plants and 13 distribution facilities (12 in the United States, 4 in Taiwan, and one 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 within our 2024 Form 10-K.
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, and (j) goodwill 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.
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 4, 2025June 28, 2024July 4, 2025June 28, 2024
Net sales
Powered Vehicles Group$123,514 $117,795 $245,612 $235,908 
Aftermarket Applications Group114,144 107,129 226,058 208,981 
Specialty Sports Group137,206 123,567 258,224 237,074 
Net sales$374,864 $348,491 $729,894 $681,963 
Net income (loss)2,705 5,407 (257,029)1,911 
Goodwill impairment— — 262,129 — 
Provision (benefit) from income taxes2,800 (371)(837)(1,638)
Depreciation and amortization(1)
21,449 20,403 43,188 40,854 
Non-cash stock-based compensation4,562 2,203 7,917 6,109 
Litigation and settlement-related expenses474 1,231 1,191 2,760 
Other acquisition and integration-related expenses(2)
723 470 1,340 5,633 
Organizational restructuring expenses(3)
3,557 413 5,170 476 
Organizational restructuring related losses
392 — 1,090 — 
Strategic transformation costs— 822 20 1,254 
Interest and other expense, net12,631 13,554 24,716 27,192 
Adjusted EBITDA$49,293 $44,132 $88,895 $84,551 
Powered Vehicles Group16,387 15,889 30,769 31,770 
Aftermarket Applications Group16,016 14,156 33,010 29,026 
Specialty Sports Group30,385 29,214 53,779 53,271 
Unallocated corporate expenses(13,495)(15,127)(28,663)(29,516)
Adjusted EBITDA$49,293 $44,132 $88,895 $84,551 
(1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment.
(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, per period as follows:
For the three months endedFor the six months ended
July 4, 2025June 28, 2024July 4, 2025June 28, 2024
Acquisition related costs and expenses$276 $470 $479 $1,148 
Purchase accounting property, plant and equipment fair value adjustment amortization269 — 519 — 
Purchase accounting inventory fair value adjustment amortization178 — 342 4,485 
Other acquisition and integration-related expenses$723 $470 $1,340 $5,633 
(3) Represents expenses associated with various restructuring initiatives across the organization.
Individual expenses are not a primary focus in segment-level decision-making as the CODM relies on adjusted EBITDA as the key financial metric for assessing performance and allocating resources across segments. The following table presents the Company’s other segment items that consist of costs of sales and operating expenses excluding depreciation and amortization, non-cash stock-based compensation, litigation and settlement-related expenses, other acquisition and integration-related expenses, organizational restructuring-related expenses, strategic transformation costs, and goodwill impairment.
For the three months endedFor the six months ended
July 4, 2025June 28, 2024July 4, 2025June 28, 2024
Powered Vehicles Group$107,127 $101,906 $214,843 $204,138 
Aftermarket Applications Group98,128 92,973 193,048 179,955 
Specialty Sports Group106,821 94,353 204,445 183,803 
Unallocated corporate expenses13,495 15,127 28,663 29,516 
$325,571 $304,359 $640,999 $597,412