Clarus Reports First Quarter 2026 Results
Rhea-AI Summary
Clarus (NASDAQ: CLAR) reported Q1 2026 sales of $61.9M, up 2.5% year-over-year, gross margin of 36.8% (up 240 bps), and net loss of $3.3M (or $(0.09) per diluted share).
The Board initiated a strategic review and retained Jefferies LLC. The company lowered FY2026 revenue and adjusted EBITDA guidance and expects ~$3M of legal and regulatory expense for 2026.
Positive
- Sales +2.5% year-over-year to $61.9M
- Gross margin +240 basis points to 36.8%
- Adjusted net income of $0.7M (Q1 2026)
- Debt-free balance sheet with $29.8M cash
Negative
- FY2026 adjusted EBITDA guidance cut to $3M–$5M
- FY2026 revenue outlook lowered to $245M–$255M
- Expected ~$3M legal and regulatory expense in 2026
- First-quarter free cash flow negative $(5.7)M
Key Figures
Market Reality Check
Peers on Argus
CLAR gained 4.63% with near-average volume while sector peers were mixed: ESCA rose 4.11%, DOGZ and AOUT declined, JAKK was flat, and SRM jumped 32.05%. Momentum scans only flagged FNKO modestly higher, reinforcing a largely stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 05 | Q4/FY25 earnings | Negative | -3.5% | Weaker 2025 results, large impairments, but 2026 turnaround guidance and debt-free status. |
| Nov 06 | Q3 2025 earnings | Positive | +12.9% | Q3 2025 sales growth, improved loss, stronger Adventure and Outdoor apparel performance. |
| Jul 31 | Q2 2025 earnings | Negative | -12.2% | Sales and margin declines, larger net loss, and segment pressure despite PIEPS sale. |
| May 08 | Q1 2025 earnings | Negative | -7.9% | Revenue drop, swing to loss, PIEPS sale agreement, and withdrawal of 2025 guidance. |
| Mar 06 | Q4/FY24 earnings | Positive | +4.0% | Q4 2024 margin improvement, positive adjusted EBITDA and free cash flow, 2025 guidance. |
Earnings releases have typically driven aligned moves, with negative or mixed quarters often followed by share price declines.
Over the last five earnings cycles, Clarus has reported fluctuating sales and profitability but consistent focus on Outdoor and Adventure segments. Prior reports highlighted liquidity improvements, portfolio simplification via divestitures, and guidance for 2025–2026. Earlier quarters showed gross margin progress but recurring net losses and impairments. The current Q1 2026 update adds modest sales growth, margin expansion, and a strategic review, while revising 2026 revenue and adjusted EBITDA guidance lower versus prior expectations.
Historical Comparison
Past earnings releases moved CLAR by an average of -1.34%, often down on weaker results. Today’s 4.63% gain is stronger than typical, despite a guidance reset.
Earnings updates show Clarus shifting from declining 2024–2025 sales and sizeable impairments toward portfolio simplification and margin improvement. Guidance has moved from 2025 strength to a lower 2026 sales and adjusted EBITDA outlook, while the latest quarter introduces a strategic alternatives review alongside modest top-line and gross margin gains.
Market Pulse Summary
This announcement combines modest Q1 2026 sales growth and gross margin expansion with a significant reset of full-year guidance. Management now expects 2026 sales of $245M–$255M and adjusted EBITDA of $3M–$5M, down from prior targets, and forecasts a Q2 adjusted EBITDA loss. The newly launched strategic alternatives review, debt-free balance sheet, and historical earnings volatility underscore the importance of monitoring segment trends, cash generation, and future guidance updates.
Key Terms
basis points financial
adjusted gross margin financial
adjusted net income financial
adjusted EBITDA financial
free cash flow financial
AI-generated analysis. Not financial advice.
Grew Quarterly Sales
Retained Jefferies LLC to Assist the Company with Evaluating Strategic Alternatives
SALT LAKE CITY, May 07, 2026 (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 first quarter ended March 31, 2026.
First Quarter 2026 Financial Summary vs. Same Year‐Ago Quarter
- Sales of
$61.9 million compared to$60.4 million . - Gross margin was
36.8% compared to34.4% ; adjusted gross margin of36.8% compared to34.6% . - Net loss of
$3.3 million with a net loss margin of (5.3)%, or$(0.09) per diluted share, compared to net loss of$5.2 million with a net loss margin of (8.7)%, or$(0.14) per diluted share. - Adjusted net income of
$0.7 million , or$0.02 per diluted share, compared to adjusted net loss of$(1.2) million , or$(0.03) per diluted share. - Adjusted EBITDA of
$(1.1) million with an adjusted EBITDA margin of (1.8)%, compared to Adjusted EBITDA of$(1.4) million with an adjusted EBITDA margin of (2.3)%.
Management Commentary
“During the first quarter, we advanced key initiatives and delivered improved revenue and adjusted EBITDA year-over-year,” said Warren Kanders, Clarus’ Executive Chairman. “While geopolitical and macro factors continue to cause uncertainty and disruption, we remain focused on operational execution and simplification aligned with our strategic roadmap. Our Outdoor business continued to perform well despite challenging market conditions, with segment topline and earnings up versus last year’s first quarter, reflecting the steps we have taken to enhance inventory quality, prioritize our most profitable categories, and steadily shift toward a more premium, full-price business model. Importantly, our Apparel category continues to show strength, delivering sales growth for the fourth consecutive quarter.
"At Adventure, we delivered solid first quarter results, highlighted by increased revenue and gross profit. Revenue grew
Mr. Kanders continued, “Overall, we believe the sum of the parts of our two segments, Outdoor and Adventure, exceeds the Company’s current market valuation, and we are committed to seeking to maximize long-term value for our shareholders. As such, the Board has initiated, in conjunction with our management team, a review of strategic alternatives designed to enhance shareholder value. We are undertaking this process from a position of strength, supported by a debt-free balance sheet and significant liquidity.”
First Quarter 2026 Financial Results
On a consolidated basis, sales in the first quarter were
Sales in the Adventure segment increased due to a favorable wholesale market in Australia for Rhino-Rack and MAXTRAX, partially offset by decreases in North America. Sales in the Outdoor segment increased due to greater global wholesale and independent global distributor revenues. This increase was partially offset by lower PIEPS revenue due to its sale last July and lower global direct-to-consumer revenue.
Gross margin in the first quarter was
Selling, general and administrative expenses in the first quarter were
Net loss in the first quarter of 2026 was
Adjusted net income in the first quarter of 2026 was
Adjusted EBITDA in the first quarter was
Net cash used in operating activities for the three months ended March 31, 2026, was
Liquidity at March 31, 2026 vs. December 31, 2025
- Cash and cash equivalents totaled
$29.8 million compared to$36.7 million . - The balance sheet was debt free at the end of both periods.
Strategic Review
The Company announced today that its Board of Directors initiated a comprehensive review of strategic alternatives to enhance shareholder value. The review includes a range of potential strategic alternatives, including, among other things, the sale of all or part of the business or other strategic or financial transactions involving the Company. The review has no deadline or definitive timetable and there can be no assurance that the review will result in any transaction or other strategic outcome. The Company does not intend to disclose further developments regarding on the review unless and until it determines that further disclosure is appropriate or required. Clarus has retained Jefferies LLC as its financial advisor.
2026 Outlook
The Company is revising its fiscal year 2026 outlook and now expects sales to range between
Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its first quarter 2026 results. To access the call by phone, please dial (646)-307-1963 (domestic) or (800)-715-9871 (international) and ask to be joined into the Clarus Corporation call. The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com.
About Clarus Corporation
Headquartered 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®, and RockyMounts® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers.
Use of Non‐GAAP Measures
The 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 net income (loss) 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 net income (loss) and related earnings (loss) per diluted share, (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provides 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 2026 to net income for the fiscal year 2026, 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 Statements
Please 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, risks and uncertainties related to the Company’s review of strategic alternatives, including the timing and outcome of the review, whether the review results in any transaction or other strategic outcome, and the potential impact of the review on the Company’s business and operations, as well as 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. Yates
Chief Financial Officer
mike.yates@claruscorp.com
Investor Relations:
The IGB Group
Leon Berman / Matt Berkowitz
Tel 1-212-477-8438 / 1-212-227-7098
lberman@igbir.com / mberkowitz@igbir.com
| CLARUS CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (In thousands, except per share amounts) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 29,809 | $ | 36,691 | ||||
| Accounts receivable, less allowance for | ||||||||
| credit losses of | 48,368 | 44,839 | ||||||
| Inventories | 82,190 | 83,028 | ||||||
| Prepaid and other current assets | 5,000 | 5,457 | ||||||
| Income tax receivable | 1,511 | 1,407 | ||||||
| Total current assets | 166,878 | 171,422 | ||||||
| Property and equipment, net | 18,859 | 18,255 | ||||||
| Other intangible assets, net | 22,291 | 23,761 | ||||||
| Indefinite-lived intangible assets | 19,600 | 19,600 | ||||||
| Deferred income taxes | 55 | 55 | ||||||
| Other long-term assets | 15,581 | 15,935 | ||||||
| Total assets | $ | 243,264 | $ | 249,028 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 13,510 | $ | 15,907 | ||||
| Accrued liabilities | 24,140 | 24,403 | ||||||
| Income tax payable | 334 | 179 | ||||||
| Total current liabilities | 37,984 | 40,489 | ||||||
| Deferred income taxes | 1,412 | 1,418 | ||||||
| Other long-term liabilities | 10,211 | 10,728 | ||||||
| Total liabilities | 49,607 | 52,635 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 4 | 4 | ||||||
| Additional paid in capital | 704,641 | 703,487 | ||||||
| Accumulated deficit | (461,509 | ) | (457,253 | ) | ||||
| Treasury stock, at cost | (33,188 | ) | (33,156 | ) | ||||
| Accumulated other comprehensive loss | (16,291 | ) | (16,689 | ) | ||||
| Total stockholders’ equity | 193,657 | 196,393 | ||||||
| Total liabilities and stockholders’ equity | $ | 243,264 | $ | 249,028 | ||||
| CLARUS CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF LOSS | ||||||||
| (Unaudited) | ||||||||
| (In thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Sales | ||||||||
| Domestic sales | $ | 24,880 | $ | 24,809 | ||||
| International sales | 37,058 | 35,624 | ||||||
| Total sales | 61,938 | 60,433 | ||||||
| Cost of goods sold | 39,175 | 39,639 | ||||||
| Gross profit | 22,763 | 20,794 | ||||||
| Operating expenses | ||||||||
| Selling, general and administrative | 26,577 | 26,616 | ||||||
| Restructuring charges | 853 | 173 | ||||||
| Transaction costs | 22 | 142 | ||||||
| Legal costs and regulatory matter expenses | 1,379 | 625 | ||||||
| Total operating expenses | 28,831 | 27,556 | ||||||
| Operating loss | (6,068 | ) | (6,762 | ) | ||||
| Other income | ||||||||
| Interest income, net | 88 | 257 | ||||||
| Other, net | 2,908 | 459 | ||||||
| Total other income, net | 2,996 | 716 | ||||||
| Loss before income tax | (3,072 | ) | (6,046 | ) | ||||
| Income tax expense (benefit) | 223 | (802 | ) | |||||
| Net loss | $ | (3,295 | ) | $ | (5,244 | ) | ||
| Net loss per share: | ||||||||
| Basic | $ | (0.09 | ) | $ | (0.14 | ) | ||
| Diluted | (0.09 | ) | (0.14 | ) | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 38,408 | 38,366 | ||||||
| Diluted | 38,408 | 38,366 | ||||||
| CLARUS CORPORATION | ||||||||||
| RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT | ||||||||||
| AND ADJUSTED GROSS MARGIN | ||||||||||
| THREE MONTHS ENDED | ||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||
| Sales | $ | 61,938 | Sales | $ | 60,433 | |||||
| Gross profit as reported | $ | 22,763 | Gross profit as reported | $ | 20,794 | |||||
| Plus impact of inventory fair value adjustment | - | Plus impact of inventory fair value adjustment | 120 | |||||||
| Adjusted gross profit | $ | 22,763 | Adjusted gross profit | $ | 20,914 | |||||
| Gross margin as reported | 36.8 | % | Gross margin as reported | 34.4 | % | |||||
| Adjusted gross margin | 36.8 | % | Adjusted gross margin | 34.6 | % | |||||
| CLARUS CORPORATION | |||||||||||||||||||||||||||
| RECONCILIATION FROM NET LOSS TO ADJUSTED NET INCOME AND RELATED EARNINGS PER DILUTED SHARE | |||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||
| Total | Gross | Operating | Income tax | Tax | Net | Diluted | |||||||||||||||||||||
| sales | profit | expenses | expense | rate | (loss) income | EPS(1) | |||||||||||||||||||||
| As reported | $ | 61,938 | $ | 22,763 | $ | 28,831 | $ | 223 | 7.3 | % | $ | (3,295 | ) | $ | (0.09 | ) | |||||||||||
| Amortization of intangibles | - | - | (1,937 | ) | 14 | 1,923 | |||||||||||||||||||||
| Restructuring charges | - | - | (853 | ) | - | 853 | |||||||||||||||||||||
| Transaction costs | - | - | (22 | ) | - | 22 | |||||||||||||||||||||
| Stock-based compensation | - | - | (1,154 | ) | - | 1,154 | |||||||||||||||||||||
| As adjusted | $ | 61,938 | $ | 22,763 | $ | 24,865 | $ | 237 | 26.5 | % | $ | 657 | $ | 0.02 | |||||||||||||
| (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to net loss. Reported net loss per share is calculated based on 38,408 basic and diluted weighted average shares of common stock. Adjusted net income per share is calculated based on 38,410 diluted shares of common stock. | |||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||
| Total | Gross | Operating | Income tax | Tax | Net | Diluted | |||||||||||||||||||||
| sales | profit | expenses | (benefit) expense | rate | loss | EPS(1) | |||||||||||||||||||||
| As reported | $ | 60,433 | $ | 20,794 | $ | 27,556 | $ | (802 | ) | (13.3 | )% | $ | (5,244 | ) | $ | (0.14 | ) | ||||||||||
| Amortization of intangibles | - | - | (2,224 | ) | 295 | 1,929 | |||||||||||||||||||||
| Disposal of internally developed software | - | - | (365 | ) | 48 | 317 | |||||||||||||||||||||
| Restructuring charges | - | - | (173 | ) | 23 | 150 | |||||||||||||||||||||
| Transaction costs | - | - | (142 | ) | 19 | 123 | |||||||||||||||||||||
| Inventory fair value of purchase accounting | - | 120 | - | 16 | 104 | ||||||||||||||||||||||
| Stock-based compensation | - | - | (1,469 | ) | 48 | 1,421 | |||||||||||||||||||||
| As adjusted(2) | $ | 60,433 | $ | 20,914 | $ | 23,183 | $ | (353 | ) | 22.7 | % | $ | (1,200 | ) | $ | (0.03 | ) | ||||||||||
| (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to net loss. Reported net loss per share and adjusted net loss per share are both calculated based on 38,366 basic and diluted weighted average shares of common stock. | |||||||||||||||||||||||||||
| (2) Beginning in the first quarter of 2026, the Company will no longer add back Legal costs and regulatory matter expenses to adjusted net income (loss). During the three months ended March 31, 2025, the Company included an adjustment related to these costs of | |||||||||||||||||||||||||||
| CLARUS CORPORATION | ||||||||||||||||||||||||||||||||
| RECONCILIATION FROM CONSOLIDATED NET LOSS AND NET LOSS MARGIN TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN | ||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||
| Outdoor Segment | Adventure Segment | Corporate Costs | Total(1) | Outdoor Segment | Adventure Segment | Corporate Costs | Total(1) | |||||||||||||||||||||||||
| Net loss | $ | (3,295 | ) | $ | (5,244 | ) | ||||||||||||||||||||||||||
| Income tax expense (benefit) | 223 | (802 | ) | |||||||||||||||||||||||||||||
| Other, net | (2,908 | ) | (459 | ) | ||||||||||||||||||||||||||||
| Interest income, net | (88 | ) | (257 | ) | ||||||||||||||||||||||||||||
| Operating loss | $ | (218 | ) | $ | (1,837 | ) | $ | (4,013 | ) | $ | (6,068 | ) | $ | 122 | $ | (3,054 | ) | $ | (3,830 | ) | $ | (6,762 | ) | |||||||||
| Depreciation | 635 | 289 | 63 | 987 | 506 | 377 | - | 883 | ||||||||||||||||||||||||
| Amortization of intangibles | 222 | 1,715 | - | 1,937 | 283 | 1,941 | - | 2,224 | ||||||||||||||||||||||||
| EBITDA | $ | 639 | $ | 167 | $ | (3,950 | ) | $ | (3,144 | ) | $ | 911 | $ | (736 | ) | $ | (3,830 | ) | $ | (3,655 | ) | |||||||||||
| Restructuring charges | 793 | 60 | - | 853 | 173 | - | - | 173 | ||||||||||||||||||||||||
| Transaction costs | - | - | 22 | 22 | 70 | 40 | 32 | 142 | ||||||||||||||||||||||||
| Disposal of internally developed software | - | - | - | - | - | 365 | - | 365 | ||||||||||||||||||||||||
| Stock-based compensation | - | - | 1,154 | 1,154 | - | - | 1,469 | 1,469 | ||||||||||||||||||||||||
| Inventory fair value of purchase accounting | - | - | - | - | - | 120 | - | 120 | ||||||||||||||||||||||||
| Adjusted EBITDA(2) | $ | 1,432 | $ | 227 | $ | (2,774 | ) | $ | (1,115 | ) | $ | 1,154 | $ | (211 | ) | $ | (2,329 | ) | $ | (1,386 | ) | |||||||||||
| Sales | $ | 44,872 | $ | 17,066 | $ | - | $ | 61,938 | $ | 44,323 | $ | 16,110 | $ | - | $ | 60,433 | ||||||||||||||||
| Net loss margin | (5.3 | )% | (8.7 | )% | ||||||||||||||||||||||||||||
| EBITDA margin | 1.4 | % | 1.0 | % | (5.1 | )% | 2.1 | % | (4.6 | )% | (6.0 | )% | ||||||||||||||||||||
| Adjusted EBITDA margin | 3.2 | % | 1.3 | % | (1.8 | )% | 2.6 | % | (1.3 | )% | (2.3 | )% | ||||||||||||||||||||
| (1) The Company reconciles consolidated Net loss to EBITDA and Adjusted EBITDA as it has historically not allocated Income tax expense (benefit), Other, net, and Interest income, net to the segments or to Corporate. (2) Beginning in the first quarter of 2026, the Company will no longer add back Legal costs and regulatory matter expenses to Adjusted EBITDA. During the three months ended March 31, 2025, the Company included an adjustment related to these costs of | ||||||||||||||||||||||||||||||||
