Fox Factory Holding Corp. (NASDAQ: FOXF) announced a leadership transition on October 15, 2026, effective October 16, 2026. Michael C. Dennison has stepped down as Chief Executive Officer and resigned from the Board of Directors. The Board reduced its size from seven to six members as a result of this resignation. Mr. Dennison will remain employed by the company while discussions regarding the terms of his transition continue.
Independent Director Douglas J. Grimm has been appointed as Interim CEO. Mr. Grimm, age 64, joined the Board in March 2026. He will step down from the Audit Committee but remain on the Board and continue to serve on the Transformation Committee. The Board has retained executive search firm Heidrick & Struggles to assist in finding a permanent CEO, with the search led by Chair Jean Hlay and directors Tom Duncan and Doug Grimm.
Mr. Grimm’s employment agreement includes an annual base salary of $1,065,000. He is eligible for a completion bonus of $600,000 if he serves for at least six months or until a permanent CEO is appointed. Additionally, he will receive a restricted stock unit award with a target grant date fair value of $2 million, with potential additional awards of up to $1.6 million if he remains in the role beyond the six-month mark. He will also receive a taxable housing allowance and an allowance for legal fees.
In related financial news, the company issued preliminary unaudited results for the third quarter of fiscal 2026 ended October 2, 2026. Net sales were reported between $336 million and $340 million, compared to prior guidance of $355 million to $380 million. Adjusted EBITDA is expected to be between $38 million and $42 million, excluding approximately $12 million in IEEPA tariff refunds, compared to prior guidance of $46 million to $54 million.
The company has lowered its outlook for fiscal 2026. Net sales are now expected to be between $1.35 billion and $1.38 billion, down from prior guidance of $1.42 billion to $1.47 billion. Adjusted EBITDA is expected to be between $140 million and $150 million, excluding tariff refunds, compared to prior guidance of $176 million to $196 million. The company has scheduled an earnings conference call for November 5, 2026.
