Clarus Reports Second Quarter 2025 Results

Rhea-AI Summary

Clarus Corporation (NASDAQ: CLAR) reported Q2 2025 financial results, showing mixed performance across its segments. Sales decreased to $55.2 million from $56.5 million year-over-year, with gross margin declining to 35.6% from 36.1%. The company reported a net loss of $8.4 million, or $(0.22) per diluted share.

The Outdoor segment saw a 1% increase in sales to $36.7 million, while the Adventure segment experienced an 8% decrease to $18.6 million. Notably, Clarus completed the sale of its PIEPS snow safety brand for $9.1 million, aligning with its strategy to simplify operations and focus on core business segments.

The company maintains a strong liquidity position with $28.5 million in cash and cash equivalents, though this represents a decrease from $45.4 million at the end of 2024. Management acknowledges ongoing market challenges but remains focused on operational execution and strategic improvements.

Positive

• Sale of PIEPS snow safety brand for $9.1 million, improving business focus
• Outdoor segment showed 1% sales growth to $36.7 million
• Reduced selling, general and administrative expenses from $28.1M to $26.9M
• Strong liquidity position with $28.5M cash and minimal debt of $1.9M

Negative

• Overall sales declined to $55.2M from $56.5M year-over-year
• Net loss increased to $8.4M from $5.5M in the same quarter last year
• Adventure segment sales dropped 8% to $18.6M
• Negative adjusted EBITDA of $(2.1M) with deteriorating margin of (3.8)%
• Free cash flow showed significant outflow of $11.3M
• Cash position decreased from $45.4M to $28.5M compared to December 2024

Insights

Financial Analyst

Clarus faces headwinds with slight revenue decline and widening losses while selling PIEPS brand to streamline operations.

Clarus Corporation's Q2 2025 results paint a picture of a company navigating persistent challenges in the outdoor recreation market while taking strategic steps to right-size its business. The $55.2 million in quarterly revenue represents a 2.3% year-over-year decline, with contrasting performance between segments: Outdoor (primarily Black Diamond) grew 1% while Adventure (Rhino-Rack) declined 8%.

The company's margins remain under pressure with gross margin slipping to 35.6% from 36.1% in the prior-year quarter. More concerning is the widening net loss of $8.4 million ($0.22 per share) compared to a $5.5 million loss a year ago. The adjusted EBITDA of $(2.1) million and negative 3.8% EBITDA margin reflect ongoing operational challenges.

Cash position has deteriorated significantly, with cash and equivalents dropping to $28.5 million from $45.4 million at year-end 2024. The $11.3 million free cash flow outflow in Q2 signals concerning cash burn that the $9.1 million PIEPS divestiture helps offset but doesn't fully resolve.

Management's commentary suggests they're following a deliberate strategy of simplification and cost reduction. The sale of the PIEPS snow safety brand for $9.1 million represents an important step in this direction, allowing them to focus resources on core brands. Management has implemented expense reductions across segments, evidenced by the 4.3% decrease in SG&A expenses to $26.9 million.

Looking forward, management's cautious outlook about "challenging consumer demand" and "additional uncertainty from tariffs" suggests the company doesn't anticipate an immediate turnaround. Their focus on "maximizing long-term value" and belief that "the sum of the parts exceeds today's market valuation" hints at potential further strategic actions, possibly including additional divestitures or restructuring.

Continued Focus on Simplifying the Business and Accelerating Long-Term Profitable Growth
Completes 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 Results
Sales 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 PIEPS
On 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 Call
The 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, 2025
Time: 5:00 pm ET
Registration 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 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®, TRED Outdoors®, 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 (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 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, 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)
	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:
Basic		38,384				38,253
Diluted		38,384				38,253

CLARUS CORPORATION
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN
THREE MONTHS ENDED
		June 30, 2025						June 30, 2024
Sales		$	55,247			Sales		$	56,484
Gross profit as reported		$	19,680			Gross profit as reported		$	20,406
Plus impact of other inventory reserves			490			Plus impact of PFAS and other inventory reserves			716
Adjusted gross profit		$	20,170			Adjusted gross profit		$	21,122
Gross margin as reported			35.6	%		Gross margin as reported			36.1	%
Adjusted gross margin			36.5	%		Adjusted gross margin			37.4	%
SIX MONTHS ENDED
		June 30, 2025						June 30, 2024
Sales		$	115,680			Sales		$	125,795
Gross profit as reported		$	40,474			Gross profit as reported		$	45,257
Plus impact of inventory fair value adjustment			120			Plus impact of inventory fair value adjustment			-
Plus impact of other inventory reserves			490			Plus impact of PFAS and other inventory reserves			1,445
Adjusted gross profit		$	41,084			Adjusted gross profit		$	46,702
Gross margin as reported			35.0	%		Gross margin as reported			36.0	%
Adjusted gross margin			35.5	%		Adjusted gross margin			37.1	%

CLARUS CORPORATION
RECONCILIATION FROM NET LOSS TO ADJUSTED NET LOSS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
	Three Months Ended June 30, 2025
	Total sales			Gross profit			Operating expenses				Income tax benefit				Tax rate			Net loss				Diluted EPS (1)
As reported	$	55,247		$	19,680		$	30,581			$	(831	)		(9.0	)%		$	(8,434	)		$	(0.22	)
Amortization of intangibles		-			-			(2,213	)			217							1,996
Impairment of indefinite-lived intangible assets		-			-			(1,565	)			-							1,565
Restructuring charges		-			-			(161	)			16							145
Transaction costs		-			-			(108	)			10							98
Other inventory reserves		-			490			-				57							433
Legal costs and regulatory matter expenses		-			-			(1,837	)			201							1,636
Stock-based compensation		-			-			(1,554	)			57							1,497
As adjusted	$	55,247		$	20,170		$	23,143			$	(273	)		20.4	%		$	(1,064	)		$	(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 38,402 basic and diluted weighted average shares of common stock.
	Three Months Ended June 30, 2024
	Total sales			Gross profit			Operating expenses				Income tax benefit				Tax rate			Net loss				Diluted EPS (1)
As reported	$	56,484		$	20,406		$	28,543			$	(1,775	)		(24.4	)%		$	(5,493	)		$	(0.14	)
Amortization of intangibles		-			-			(2,451	)			265							2,186
Restructuring charges		-			-			(161	)			37							124
Transaction costs		-			-			(27	)			6							21
Contingent consideration benefit		-			-			125				(38	)						(87	)
PFAS and other inventory reserves		-			716			-				146							570
Legal costs and regulatory matter expenses		-			-			(399	)			152							247
Stock-based compensation		-			-			(1,528	)			306							1,222
As adjusted	$	56,484		$	21,122		$	24,102			$	(901	)		42.7	%		$	(1,210	)		$	(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 38,297 basic and diluted weighted average shares of common stock.

CLARUS CORPORATION
RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED LOSS FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
	Six Months Ended June 30, 2025
	Total sales			Gross profit			Operating expenses				Income tax benefit				Tax rate			Loss from continuing operations				Diluted EPS (1)
As reported	$	115,680		$	40,474		$	58,137			$	(1,633	)		(10.7	)%		$	(13,678	)		$	(0.36	)
Amortization of intangibles		-			-			(4,437	)			512							3,925
Impairment of indefinite-lived intangible assets		-			-			(1,565	)			-							1,565
Disposal of internally developed software		-			-			(365	)			48							317
Restructuring charges		-			-			(334	)			39							295
Transaction costs		-			-			(250	)			29							221
Inventory fair value of purchase accounting		-			120			-				16							104
Other inventory reserves		-			490			-				57							433
Legal costs and regulatory matter expenses		-			-			(2,462	)			284							2,178
Stock-based compensation		-			-			(3,023	)			105							2,918
As adjusted	$	115,680		$	41,084		$	45,701			$	(543	)		24.0	%		$	(1,722	)		$	(0.04	)
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,384 basic and diluted weighted average shares of common stock.
	Six Months Ended June 30, 2024
	Total sales			Gross profit			Operating expenses				Income tax benefit				Tax rate			Loss from continuing operations				Diluted EPS (1)
As reported	$	125,795		$	45,257		$	60,168			$	(2,626	)		(18.0	)%		$	(11,955	)		$	(0.31	)
Amortization of intangibles		-			-			(4,900	)			882							4,018
Restructuring charges		-			-			(531	)			96							435
Transaction costs		-			-			(65	)			12							53
Contingent consideration benefit		-			-			125				(38	)						(87	)
PFAS and other inventory reserves		-			1,445			-				260							1,185
Legal costs and regulatory matter expenses		-			-			(3,401	)			613							2,788
Stock-based compensation		-			-			(2,706	)			487							2,219
As adjusted	$	125,795		$	46,702		$	48,690			$	(314	)		18.9	%		$	(1,344	)		$	(0.04	)
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,253 basic and diluted weighted average shares of common stock.

CLARUS CORPORATION
RECONCILIATION FROM OPERATING LOSS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
	Three Months Ended June 30, 2025																Three Months Ended June 30, 2024
	Outdoor Segment				Adventure Segment				Corporate Costs				Total				Outdoor Segment				Adventure Segment				Corporate Costs				Total
Operating loss	$	(4,242	)		$	(2,203	)		$	(4,456	)		$	(10,901	)		$	(2,397	)		$	(1,267	)		$	(4,473	)		$	(8,137	)
Depreciation		534				343				-				877				661				384				-				1,045
Amortization of intangibles		245				1,968				-				2,213				285				2,166				-				2,451
EBITDA		(3,463	)			108				(4,456	)			(7,811	)			(1,451	)			1,283				(4,473	)			(4,641	)
Restructuring charges		(42	)			203				-				161				146				15				-				161
Transaction costs		86				-				22				108				-				-				27				27
Contingent consideration benefit		-				-				-				-				-				(125	)			-				(125	)
Legal costs and regulatory matter expenses		1,150				-				687				1,837				180				-				219				399
Impairment of indefinite-lived intangible assets		1,565				-				-				1,565				-				-				-				-
Stock-based compensation		-				-				1,554				1,554				-				-				1,528				1,528
PFAS and other inventory reserves		490				-				-				490				716				-				-				716
Adjusted EBITDA	$	(214	)		$	311			$	(2,193	)		$	(2,096	)		$	(409	)		$	1,173			$	(2,699	)		$	(1,935	)
Sales	$	36,661			$	18,586			$	-			$	55,247				36,187				20,297				-				56,484
EBITDA margin		(9.4	)%			0.6	%							(14.1	)%			(4.0	)%			6.3	%							(8.2	)%
Adjusted EBITDA margin		(0.6	)%			1.7	%							(3.8	)%			(1.1	)%			5.8	%							(3.4	)%

CLARUS CORPORATION
RECONCILIATION FROM OPERATING LOSS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
	Six Months Ended June 30, 2025																Six Months Ended June 30, 2024
	Outdoor Segment				Adventure Segment				Corporate Costs				Total				Outdoor Segment				Adventure Segment				Corporate Costs				Total
Operating loss	$	(4,120	)		$	(5,257	)		$	(8,286	)		$	(17,663	)		$	(4,106	)		$	(2,037	)		$	(8,768	)		$	(14,911	)
Depreciation		1,040				720				-				1,760				1,334				737				-				2,071
Amortization of intangibles		528				3,909				-				4,437				571				4,329				-				4,900
EBITDA		(2,552	)			(628	)			(8,286	)			(11,466	)			(2,201	)			3,029				(8,768	)			(7,940	)
Restructuring charges		131				203				-				334				370				161				-				531
Transaction costs		156				40				54				250				-				-				65				65
Contingent consideration benefit		-				-				-				-				-				(125	)			-				(125	)
Legal costs and regulatory matter expenses		1,728				-				734				2,462				2,885				-				516				3,401
Impairment of indefinite-lived intangible assets		1,565				-				-				1,565				-				-				-				-
Disposal of internally developed software		-				365				-				365				-				-				-				-
Stock-based compensation		-				-				3,023				3,023				-				-				2,706				2,706
Inventory fair value of purchase accounting		-				120				-				120				-				-				-				-
PFAS and other inventory reserves		490				-				-				490				1,445				-				-				1,445
Adjusted EBITDA	$	1,518			$	100			$	(4,475	)		$	(2,857	)		$	2,499			$	3,065			$	(5,481	)		$	83
Sales	$	80,984			$	34,696			$	-			$	115,680				83,209				42,586				-				125,795
EBITDA margin		(3.2	)%			(1.8	)%							(9.9	)%			(2.6	)%			7.1	%							(6.3	)%
Adjusted EBITDA margin		1.9	%			0.3	%							(2.5	)%			3.0	%			7.2	%							0.1	%

FAQ

What were Clarus (NASDAQ:CLAR) key financial results for Q2 2025?

Clarus reported sales of $55.2 million, a net loss of $8.4 million ($(0.22) per share), and gross margin of 35.6%. The company's adjusted EBITDA was negative at $(2.1) million.

How much did Clarus sell its PIEPS snow safety brand for in 2025?

Clarus completed the sale of PIEPS snow safety brand for €7.8 million (approximately $9.1 million) to a private investment firm on July 11, 2025.

How did Clarus's different segments perform in Q2 2025?

The Outdoor segment saw a 1% increase in sales to $36.7 million, while the Adventure segment experienced an 8% decrease to $18.6 million compared to the same year-ago quarter.

What is Clarus's current liquidity position as of Q2 2025?

As of June 30, 2025, Clarus had $28.5 million in cash and cash equivalents and total debt of $1.9 million related to the RockyMounts acquisition.

What are the main challenges facing Clarus in 2025?

Clarus faces continued headwinds across the global outdoor market, challenging consumer demand outlook, additional uncertainty from tariffs, and market softness particularly affecting the Adventure segment with reduced demand from global OEM customers.