Fox Factory (FOXF), a suspension systems manufacturer, saw its stock price plunge 24.86% in pre-market trading on Friday following the release of disappointing third-quarter earnings and a weak outlook. The significant drop reflects growing investor concerns about the company's near-term growth prospects and ability to navigate ongoing challenges.

For the third quarter, Fox Factory reported net sales of $376.4 million, up 4.8% year-over-year but falling short of the analyst consensus estimate of $383.3 million. The company's adjusted earnings per share (EPS) came in at $0.23, significantly below the expected $0.55, representing a 57.88% miss. More alarmingly, Fox Factory posted a net loss of $662,000, or $0.02 per diluted share, compared to a net income of $4.8 million, or $0.11 per diluted share, in the same period last year.

Adding to investor concerns, Fox Factory provided a cautious outlook for the fourth quarter and full year 2025. The company expects Q4 net sales between $340 million and $370 million, with adjusted EPS ranging from $0.05 to $0.25. For the full year, Fox Factory anticipates net sales of $1.445 billion to $1.475 billion and adjusted EPS between $0.92 and $1.12. These projections suggest ongoing challenges for the company, including higher tariff costs and continued investments that may pressure profitability in the near term. The market's severe reaction reflects growing unease about Fox Factory's ability to maintain its growth trajectory in the competitive auto parts industry.