Clarus Reports Second Quarter 2025 Results
Continued Focus on Simplifying the Business and Accelerating Long-Term Profitable GrowthCompletes Sale of PIEPS Snow Safety Brand for $9.1 Million
SALT LAKE CITY, July 31, 2025 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ:CLAR) ("Clarus" and/or the "Company"), a global company focused on the outdoor enthusiast markets, reported financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial Summary vs. Same Year‐Ago Quarter
Sales of $55.2 million compared to $56.5 million.
Gross margin was 35.6% compared to 36.1%; adjusted gross margin of 36.5% compared to 37.4%.
Net loss of $8.4 million, or $(0.22) per diluted share, compared to net loss of $5.5 million, or $(0.14) per diluted share.
Adjusted net loss of $1.1 million, or $(0.03) per diluted share, compared to adjusted net loss of $1.2 million, or $(0.03) per diluted share.
Adjusted EBITDA of $(2.1) million with an adjusted EBITDA margin of (3.8)% compared to $(1.9) million with an adjusted EBITDA margin of (3.4)%.
Management Commentary"Despite continued headwinds across the global outdoor market, we remain focused on operational execution and disciplined investment aligned with our strategic roadmap," said Warren Kanders, Clarus' Executive Chairman. "Following multiple quarters of progress strengthening the core, we have positioned Black Diamond for a return to growth, highlighted by a simplified product portfolio, sharper and more differentiated marketing message, key personnel hires, and a rationalized inventory position. At Adventure, where results continue to be affected by market softness and over-reliance on legacy customers, we are committed to prioritizing the highest-return initiatives, particularly those that improve our speed to market and enable us to fit more vehicles and, in turn, sell more roof racks and accessories."
Mr. Kanders continued, "Subsequent to the end of the quarter, we were pleased to complete the divestiture of our PIEPS snow safety brand, reflective of our focus on simplifying the Black Diamond business and rationalizing our product categories. This was a highly successful outcome following a competitive process that recognized the value of the brand and its intellectual property. We continue to evaluate all possible opportunities to unlock value at each of Outdoor and Adventure, including further simplification of the businesses and further cost reductions, incremental to those which have already been taken during July. Additionally, we believe that the sum of the parts of our two segments exceeds today's market valuation, and we are committed to maximizing long-term value for our shareholders. While we anticipate a challenging consumer demand outlook through the remainder of the year and additional uncertainty from tariffs, we believe Clarus will benefit from the structural actions and improvements we've made across both our Outdoor and Adventure segments as demand normalizes."
Second Quarter 2025 Financial ResultsSales in the second quarter were $55.2 million compared to $56.5 million in the same year‐ago quarter. Sales in the Outdoor segment increased 1% to $36.7 million, compared to $36.2 million in the year-ago quarter. Sales in the Adventure segment decreased 8% to $18.6 million, compared to $20.3 million in the year-ago quarter.
The increase in Outdoor sales was due to a shift in timing for IGD revenues into the second quarter, partially offset by decreases in our direct-to-consumer channels in both North America and Europe.
Lower sales in the Adventure segment reflect significantly reduced demand from global OEM customers and a challenging wholesale market in Australia for Rhino-Rack, partially offset by increased revenue from the acquisition of RockyMounts and higher promotional sales in North America.
Gross margin in the second quarter was 35.6% compared to 36.1% in the year‐ago quarter. The decrease in gross margin was primarily due to lower volumes and unfavorable product mix at the Adventure segment. Specifically, the unfavorable product mix at Adventure was due to promotional sales efforts in North America. This combined with lower wholesale volume at Rhino-Rack in Australia drove the decline in gross margin in the current quarter. These decreases were partially offset by higher volumes and a favorable product mix at the Outdoor segment.
Selling, general and administrative expenses in the second quarter were $26.9 million compared to $28.1 million in the same year‐ago quarter. The decrease was primarily due to lower employee-related expenses and marketing costs across the Company, as well as other expense reduction initiatives across both segments and at Corporate to manage costs.
Net loss in the second quarter of 2025 was $8.4 million, or $(0.22) per diluted share, compared to net loss of $5.5 million, or $(0.14) per diluted share in the year-ago quarter.
Adjusted net loss in the second quarter of 2025 was $1.1 million, or $(0.03) per diluted share, compared to adjusted net loss of $1.2 million, or $(0.03) per diluted share, in the year-ago quarter. Adjusted net loss excludes legal cost and regulatory matters expenses, inventory reserves, contingent consideration benefits, restructuring charges and transaction costs, as well as non-cash items for intangible amortization, impairment of indefinite-lived intangible assets, and stock-based compensation.
Adjusted EBITDA from continuing operations in the second quarter was $(2.1) million, or an adjusted EBITDA margin of (3.8)%, compared to adjusted EBITDA from continuing operations of $(1.9) million, or an adjusted EBITDA margin of (3.4)%, in the same year‐ago quarter.
Net cash used in operating activities for the three months ended June 30, 2025, was $(9.4) million compared to net cash generated of $0.8 million in the prior year quarter. Capital expenditures in the second quarter of 2025 were $1.9 million compared to $1.6 million in the prior year quarter. Free cash flow for the second quarter of 2025 was an outflow of $11.3 million.
Liquidity at June 30, 2025 vs. December 31, 2024
Cash and cash equivalents totaled $28.5 million compared to $45.4 million.
Total debt of $1.9 million (related to the RockyMounts acquisition) compared to $1.9 million.
Completed Sale of PIEPSOn July 11, 2025, the Company completed the previously announced sale of its PIEPS snow safety brand, including its portfolio of avalanche safety products such as avalanche transceivers and JetForce avalanche airbag systems, to a private investment firm for a total sales price of €7.8 million, or approximately $9.1 million, including cash and debt.
Conference CallThe Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2025 results.
Date: Thursday, July 31, 2025Time: 5:00 pm ETRegistration Link: https://register-conf.media-server.com/register/BIb5f720e357264d4fb254f3aa3f9d55cb
To access the call by phone, please register via the live call registration link above and you will be provided with dial-in instructions and details. The conference call will be broadcast live and available for replay here and on the Company's website at www.claruscorp.com.
About Clarus CorporationHeadquartered in Salt Lake City, Utah, Clarus Corporation is a global leader in the design and development of best-in-class equipment and lifestyle products for outdoor enthusiasts. Driven by our rich history of engineering and innovation, our objective is to provide safe, simple, effective and beautiful products so that our customers can maximize their outdoor pursuits and adventures. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company's products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, TRED Outdoors®, and RockyMounts® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers.
Use of Non‐GAAP MeasuresThe Company reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release contains the non-GAAP measures: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) earnings before interest, taxes, other income or expense, depreciation and amortization ("EBITDA"), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, and (iv) free cash flow (defined as net cash provided by operating activities less capital expenditures). The Company believes that the presentation of certain non-GAAP measures, i.e.: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provide useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, and thereby enhances the user's overall understanding of the Company's current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measures adjusted EBITDA and/or adjusted EBITDA margin for the fiscal year 2025 to net income for the fiscal year 2025, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not adjusted EBITDA and/or adjusted EBITDA margin. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.
Forward-Looking StatementsPlease note that in this press release we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this press release, include, but are not limited to, those risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the section titled "Risk Factors" in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company's Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward- looking statements to reflect events or circumstances after the date of this press release.
Company Contact:Michael J. YatesChief Financial
Investor Relations:The IGB GroupLeon Berman / Matt BerkowitzTel 1-212-477-8438 / /
CLARUS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share amounts)
June 30, 2025
December 31, 2024
Assets
Current assets
Cash
$
28,474
$
45,359
Accounts receivable, less allowance for
credit losses of $1,146 and $1,271
37,963
43,678
Inventories
91,527
82,278
Prepaid and other current assets
6,770
5,555
Income tax receivable
1,863
910
Assets held for sale
9,330
-
Total current assets
175,927
177,780
Property and equipment, net
18,247
17,606
Other intangible assets, net
27,570
31,516
Indefinite-lived intangible assets
45,022
46,750
Goodwill
3,804
3,804
Deferred income taxes
35
36
Other long-term assets
15,905
16,602
Total assets
$
286,510
$
294,094
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
9,068
$
11,873
Accrued liabilities
26,629
22,276
Current portion of long-term debt
1,949
1,888
Liabilities held for sale
980
-
Total current liabilities
38,626
36,037
Deferred income taxes
10,867
12,210
Other long-term liabilities
11,897
12,754
Total liabilities
61,390
61,001
Stockholders' Equity
Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued
-
-
Common stock, $0.0001 par value per share; 100,000 shares authorized; 43,054 and 43,004 issued and 38,402 and 38,362 outstanding, respectively
4
4
Additional paid in capital
700,616
697,592
Accumulated deficit
(422,455
)
(406,857
)
Treasury stock, at cost
(33,156
)
(33,114
)
Accumulated other comprehensive loss
(19,889
)
(24,532
)
Total stockholders' equity
225,120
233,093
Total liabilities and stockholders' equity
$
286,510
$
294,094
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
June 30, 2025
June 30, 2024
Sales
Domestic sales
$
24,724
$
22,934
International sales
30,523
33,550
Total sales
55,247
56,484
Cost of goods sold
35,567
36,078
Gross profit
19,680
20,406
Operating expenses
Selling, general and administrative
26,910
28,081
Restructuring charges
161
161
Transaction costs
108
27
Contingent consideration benefit
-
(125
)
Legal costs and regulatory matter expenses
1,837
399
Impairment of indefinite-lived intangible assets
1,565
-
Total operating expenses
30,581
28,543
Operating loss
(10,901
)
(8,137
)
Other income
Interest income, net
153
455
Other, net
1,483
414
Total other income, net
1,636
869
Loss before income tax
(9,265
)
(7,268
)
Income tax benefit
(831
)
(1,775
)
Net loss
$
(8,434
)
$
(5,493
)
Net loss per share:
Basic
$
(0.22
)
$
(0.14
)
Diluted
(0.22
)
(0.14
)
Weighted average shares outstanding:
Basic
38,402
38,297
Diluted
38,402
38,297
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(Unaudited)
(In thousands, except per share amounts)
Six Months Ended
June 30, 2025
June 30, 2024
Sales
Domestic sales
$
49,533
$
51,218
International sales
66,147
74,577
Total sales
115,680
125,795
Cost of goods sold
75,206
80,538
Gross profit
40,474
45,257
Operating expenses
Selling, general and administrative
53,526
56,296
Restructuring charges
334
531
Transaction costs
250
65
Contingent consideration benefit
-
(125
)
Legal costs and regulatory matter expenses
2,462
3,401
Impairment of indefinite-lived intangible assets
1,565
-
Total operating expenses
58,137
60,168
Operating loss
(17,663
)
(14,911
)
Other income (expense)
Interest income, net
410
825
Other, net
1,942
(495
)
Total other income, net
2,352
330
Loss before income tax
(15,311
)
(14,581
)
Income tax benefit
(1,633
)
(2,626
)
Loss from continuing operations
(13,678
)
(11,955
)
Discontinued operations, net of tax
-
28,346
Net (loss) income
$
(13,678
)
$
16,391
Loss from continuing operations per share:
Basic
$
(0.36
)
$
(0.31
)
Diluted
(0.36
)
(0.31
)
Net (loss) income per share:
Basic
$
(0.36
)
$
0.43
Diluted
(0.36
)
0.43
Weighted average shares outstanding:
