Clarus Reports Third Quarter 2025 Results

Rhea-AI Summary

Clarus (NASDAQ: CLAR) reported Q3 2025 results for the quarter ended September 30, 2025: sales $69.3M versus $67.1M year‑ago, gross margin 35.1%, net loss $1.6M (EPS $(0.04)), adjusted net income $1.8M (EPS $0.05), and adjusted EBITDA $2.8M (4.0% margin).

Segment highlights: Adventure sales +16% to $20.7M and Outdoor apparel (Black Diamond) sales +29%; North America wholesale at Outdoor rose $3.1M (16%). Liquidity declined with cash of $29.5M at Sept 30, 2025 versus $45.4M at Dec 31, 2024. Management cited tariff impacts, PIEPS sale in July 2025, RockyMounts contribution, and ongoing cost actions.

Positive

• Adventure segment sales +16% to $20.7M
• Black Diamond apparel sales +29% year-over-year
• Adjusted EBITDA +15% to $2.8M (4.0% margin)
• North America wholesale at Outdoor up $3.1M (16%)

Negative

• Cash declined from $45.4M to $29.5M (Sept 30, 2025)
• Free cash flow outflow of $6.9M in Q3 2025
• Net loss of $1.6M in Q3 2025
• Adjusted gross margin fell from 37.8% to 35.1%

Insights

Equity Analyst

Mixed Q3: modest revenue and adjusted EBITDA growth but continued net loss and cash outflow leave impact muted.

Clarus reported higher third-quarter sales of $69.3 million versus $67.1 million year‑ago and an adjusted EBITDA increase to $2.8 million with a 4.0% margin, driven by a 16% rise in Adventure sales and a 29% jump in Black Diamond apparel within Outdoor.

The results show operational improvement in profitability metrics, but risks temper the read: the company still posted a net loss of $1.6 million, free cash flow was an outflow of $6.9 million, and cash declined to $29.5 million from $45.4 million; tariff effects, timing shifts in distributor revenue, the sale of PIEPS, and currency headwinds are explicit drags.

Watch near term for quarterly cash‑flow trends and margin recovery over the next 2-4 quarters, monitoring adjusted EBITDA trajectory, inventory/reserve changes, and any commentary on tariff impacts or distributor timing at the upcoming conference call today at 5:00 p.m. Eastern.

Increased Quarterly Sales 3% and Adjusted EBITDA 15%
Adventure Reported Sales up 16%
Apparel Sales at Outdoor up 29%

SALT LAKE CITY, Nov. 06, 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 third quarter ended September 30, 2025.

Third Quarter 2025 Financial Summary vs. Same Year‐Ago Quarter

• Sales of $69.3 million compared to $67.1 million.
• Gross margin was 35.1% compared to 35.0%; adjusted gross margin of 35.1% compared to 37.8%.
• Net loss of $1.6 million, or $(0.04) per diluted share, compared to net loss of $3.2 million, or $(0.08) per diluted share.
• Adjusted net income of $1.8 million, or $0.05 per diluted share, compared to adjusted net income of $1.9 million, or $0.05 per diluted share.
• Adjusted EBITDA of $2.8 million with an adjusted EBITDA margin of 4.0% compared to $2.4 million with an adjusted EBITDA margin of 3.6%.
  

Management Commentary
“During the third quarter, we continued to navigate a challenging global consumer landscape,” said Warren Kanders, Clarus’ Executive Chairman. “Amidst the macro uncertainty, particularly with respect to evolving tariff policies and consumer behavior, our focus is on controlling what we can to position Clarus for sustainable, profitable growth as market conditions normalize. We continued to make incremental progress against our operational initiatives, reflected in Q3 revenue and adjusted EBITDA growth year-over-year. Under the new leadership team, Adventure segment sales increased 16%, supported by solid results in the core Australia market. A key highlight in the Outdoor segment has been the success of the revamped Black Diamond apparel line, which saw sales growth of 29% over the prior year period. We continued to advance our overall strategic plan during the quarter, prioritizing our best customers and most profitable products and styles in Outdoor, and simplified the organizational structure at Adventure.”

“As we look toward the future, we are focused on unlocking the intrinsic value at each of the Outdoor and Adventure segments, especially as we consider the disconnect between the sum of the parts value of our two segments and today's market valuation. After multiple quarters of disciplined execution and operational progress, Black Diamond is emerging from a period of considerable transformation as a more resilient and focused business poised to capitalize on growth opportunities ahead. At Adventure, we are taking steps to align our cost structure and strategic roadmap with market realities. We continue to believe that the business is only beginning to tap into significant growth opportunities in the Americas and in Europe, and we are committed to fitting more vehicles across the globe to drive this growth. Across both segments, we are focused on near-term actions that will enhance profitability and set the stage for long-term value creation.”

Third Quarter 2025 Financial Results
Sales in the third quarter were $69.3 million compared to $67.1 million in the same year‐ago quarter. Sales in the Outdoor segment decreased 1% to $48.7 million, compared to $49.3 million in the year-ago quarter. Sales in the Adventure segment increased 16% to $20.7 million, compared to $17.8 million in the year-ago quarter.

The decrease in Outdoor sales was due to a shift in timing for independent global distributor revenues into the second quarter, lower global direct-to-consumer revenues, and lower PIEPS revenue due to its sale in July 2025, partially offset by an increase in North America wholesale revenue. North America wholesale sales at Outdoor were up $3.1 million or 16%.

Increased sales in the Adventure segment reflected a favorable wholesale market in Australia for Rhino-Rack and increased contributions from the acquisition of RockyMounts. RockyMounts contributed $1.5 million of the growth compared to the prior year period.

Gross margin in the third quarter was 35.1% compared to 35.0% in the year‐ago quarter. The increase in gross margin was primarily due to higher volumes at the Adventure segment and a favorable product mix at the Outdoor segment. These increases were partially offset by an unfavorable product mix within the Adventure segment, tariff impacts at both segments, lower volumes at the Outdoor segment due to the sale of PIEPS, and unfavorable foreign currency impacts at the Outdoor segment.

Selling, general and administrative expenses in the third quarter were $26.2 million compared to $27.9 million in the same year‐ago quarter. The decrease was primarily due to lower employee-related expenses, lower costs from PIEPS due to its sale, as well as other expense reduction initiatives across both segments and at Corporate to manage costs.

Net loss in the third quarter of 2025 was $1.6 million, or $(0.04) per diluted share, compared to net loss of $3.2 million, or $(0.08) per diluted share in the year-ago quarter.

Adjusted net income in the third quarter of 2025 was $1.8 million, or $0.05 per diluted share, compared to adjusted net income of $1.9 million, or $0.05 per diluted share, in the year-ago quarter. Adjusted net loss excludes legal cost and regulatory matters expenses, inventory reserves, restructuring charges and transaction costs, as well as non-cash items for intangible amortization, disposal of internally developed software, contingent consideration benefits, and stock-based compensation.

Adjusted EBITDA from continuing operations in the third quarter was $2.8 million, or an adjusted EBITDA margin of 4.0%, compared to adjusted EBITDA from continuing operations of $2.4 million, or an adjusted EBITDA margin of 3.6%, in the same year‐ago quarter.

Net cash used in operating activities for the three months ended September 30, 2025, was $5.7 million compared to net cash used of $8.3 million in the prior year quarter. Capital expenditures in the third quarter of 2025 were $1.2 million compared to $1.1 million in the prior year quarter. Free cash flow for the third quarter of 2025 was an outflow of $6.9 million.

Liquidity at September 30, 2025 vs. December 31, 2024

• Cash and cash equivalents totaled $29.5 million compared to $45.4 million.
• Total debt of $2.0 million compared to $1.9 million.

Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its third quarter 2025 results. To access the call by phone, please dial (888)-596-4144 or (646)-968-2525. When the line is picked up, dial 9696620 and press #. 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)
	September 30, 2025				December 31, 2024
Assets
Current assets
Cash	$	29,508			$	45,359
Accounts receivable, less allowance for
credit losses of $1,254 and $1,271		51,755				43,678
Inventories		86,546				82,278
Prepaid and other current assets		5,330				5,555
Income tax receivable		1,700				910
Total current assets		174,839				177,780
Property and equipment, net		18,582				17,606
Other intangible assets, net		25,577				31,516
Indefinite-lived intangible assets		45,212				46,750
Goodwill		3,804				3,804
Deferred income taxes		36				36
Other long-term assets		15,020				16,602
Total assets	$	283,070			$	294,094
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	10,610			$	11,873
Accrued liabilities		24,883				22,276
Income tax payable		47				-
Current portion of long-term debt		1,980				1,888
Total current liabilities		37,520				36,037
Deferred income taxes		8,485				12,210
Other long-term liabilities		11,260				12,754
Total liabilities		57,265				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		702,160				697,592
Accumulated deficit		(425,032	)			(406,857	)
Treasury stock, at cost		(33,156	)			(33,114	)
Accumulated other comprehensive loss		(18,171	)			(24,532	)
Total stockholders’ equity		225,805				233,093
Total liabilities and stockholders’ equity	$	283,070			$	294,094

CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
(In thousands, except per share amounts)
	Three Months Ended
	September 30, 2025				September 30, 2024
Sales
Domestic sales	$	28,261			$	24,365
International sales		41,086				42,750
Total sales		69,347				67,115
Cost of goods sold		44,981				43,618
Gross profit		24,366				23,497
Operating expenses
Selling, general and administrative		26,155				27,880
Restructuring charges		155				478
Transaction costs		436				103
Contingent consideration benefit		(355	)			-
Legal costs and regulatory matter expenses		1,001				394
Total operating expenses		27,392				28,855
Operating loss		(3,026	)			(5,358	)
Other (expense) income
Interest income, net		108				373
Other, net		(943	)			1,164
Total other (expense) income, net		(835	)			1,537
Loss before income tax		(3,861	)			(3,821	)
Income tax benefit		(2,244	)			(664	)
Net loss	$	(1,617	)		$	(3,157	)
Net loss per share:
Basic	$	(0.04	)		$	(0.08	)
Diluted		(0.04	)			(0.08	)
Weighted average shares outstanding:
Basic		38,402				38,352
Diluted		38,402				38,352

CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(Unaudited)
(In thousands, except per share amounts)
	Nine Months Ended
	September 30, 2025				September 30, 2024
Sales
Domestic sales	$	77,794			$	75,583
International sales		107,233				117,327
Total sales		185,027				192,910
Cost of goods sold		120,187				124,156
Gross profit		64,840				68,754
Operating expenses
Selling, general and administrative		79,681				84,176
Restructuring charges		489				1,009
Transaction costs		686				168
Contingent consideration benefit		(355	)			(125	)
Legal costs and regulatory matter expenses		3,463				3,795
Impairment of indefinite-lived intangible assets		1,565				-
Total operating expenses		85,529				89,023
Operating loss		(20,689	)			(20,269	)
Other income
Interest income, net		518				1,198
Other, net		999				669
Total other income, net		1,517				1,867
Loss before income tax		(19,172	)			(18,402	)
Income tax benefit		(3,877	)			(3,290	)
Loss from continuing operations		(15,295	)			(15,112	)
Discontinued operations, net of tax		-				28,346
Net (loss) income	$	(15,295	)		$	13,234
Loss from continuing operations per share:
Basic	$	(0.40	)		$	(0.39	)
Diluted		(0.40	)			(0.39	)
Net (loss) income per share:
Basic	$	(0.40	)		$	0.35
Diluted		(0.40	)			0.35
Weighted average shares outstanding:
Basic		38,390				38,286
Diluted		38,390				38,286

CLARUS CORPORATION
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN
THREE MONTHS ENDED
		September 30, 2025						September 30, 2024
Sales		$	69,347			Sales		$	67,115
Gross profit as reported		$	24,366			Gross profit as reported		$	23,497
Plus impact of other inventory reserves			-			Plus impact of PFAS and other inventory reserves			1,878
Adjusted gross profit		$	24,366			Adjusted gross profit		$	25,375
Gross margin as reported			35.1	%		Gross margin as reported			35.0	%
Adjusted gross margin			35.1	%		Adjusted gross margin			37.8	%
NINE MONTHS ENDED
		September 30, 2025						September 30, 2024
Sales		$	185,027			Sales		$	192,910
Gross profit as reported		$	64,840			Gross profit as reported		$	68,754
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			3,323
Adjusted gross profit		$	65,450			Adjusted gross profit		$	72,077
Gross margin as reported			35.0	%		Gross margin as reported			35.6	%
Adjusted gross margin			35.4	%		Adjusted gross margin			37.4	%

CLARUS CORPORATION
RECONCILIATION FROM NET LOSS TO ADJUSTED NET INCOME AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
	Three Months Ended September 30, 2025
	Total			Gross			Operating				Income tax				Tax				Net				Diluted
	sales			profit			expenses				benefit				rate				(loss) income				EPS(1)
As reported	$	69,347		$	24,366		$	27,392			$	(2,244	)		(58.1)%				$	(1,617	)		$	(0.04	)
Amortization of intangibles		-			-			(2,149	)			1,751								398
Disposal of internally developed software		-			-			-				129								(129	)
Restructuring charges		-			-			(155	)			147								8
Transaction costs		-			-			(436	)			(30	)							466
Contingent consideration benefit		-			-			355				-								(355	)
Inventory fair value of purchase accounting		-			-			-				(16	)							16
Other inventory reserves		-			-			-				(57	)							57
Legal costs and regulatory matter expenses		-			-			(1,001	)			(287	)							1,288
Stock-based compensation		-			-			(1,545	)			(106	)							1,651
As adjusted	$	69,347		$	24,366		$	22,461			$	(712	)		(66.5)%				$	1,782			$	0.05
(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 38,402 basic and diluted weighted average shares of common stock. Adjusted net income per share is calculated based on 38,452 diluted shares of common stock.
	Three Months Ended September 30, 2024
	Total			Gross			Operating				Income tax				Tax				Net				Diluted
	sales			profit			expenses				(benefit) expense				rate				(loss) income				EPS(1)
As reported	$	67,115		$	23,497		$	28,855			$	(664	)		(17.4)%				$	(3,157	)		$	(0.08	)
Amortization of intangibles		-			-			(2,416	)			629								1,787
Restructuring charges		-			-			(478	)			112								366
Transaction costs		-			-			(103	)			23								80
Contingent consideration benefit		-			-			-				12								(12	)
PFAS and other inventory reserves		-			1,878			-				427								1,451
Legal costs and regulatory matter expenses		-			-			(394	)			171								223
Stock-based compensation		-			-			(1,547	)			392								1,155
As adjusted	$	67,115		$	25,375		$	23,917			$	1,102			36.8 %				$	1,893			$	0.05
(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 38,352 basic and diluted weighted average shares of common stock. Adjusted net income per share is calculated based on 38,455 diluted shares of common stock.

CLARUS CORPORATION
RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED INCOME FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
	Nine Months Ended September 30, 2025
	Total			Gross			Operating				Income tax				Tax				(Loss) income from				Diluted
	sales			profit			expenses				benefit				rate				continuing operations				EPS(1)
As reported	$	185,027		$	64,840		$	85,529			$	(3,877	)		(20.2)%				$	(15,295	)		$	(0.40	)
Amortization of intangibles		-			-			(6,586	)			2,263								4,323
Impairment of indefinite-lived intangible assets		-			-			(1,565	)			-								1,565
Disposal of internally developed software		-			-			(365	)			177								188
Restructuring charges		-			-			(489	)			186								303
Transaction costs		-			-			(686	)			(1	)							687
Contingent consideration benefit		-			-			355				-								(355	)
Inventory fair value of purchase accounting		-			120			-				-								120
Other inventory reserves		-			490			-				-								490
Legal costs and regulatory matter expenses		-			-			(3,463	)			(3	)							3,466
Stock-based compensation		-			-			(4,568	)			(1	)							4,569
As adjusted	$	185,027		$	65,450		$	68,162			$	(1,256	)		105.1%				$	61			$	0.00
(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 is calculated based on 38,390 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 38,440 diluted shares of common stock.
	Nine Months Ended September 30, 2024
	Total			Gross			Operating				Income tax				Tax				(Loss) income from				Diluted
	sales			profit			expenses				(benefit) expense				rate				continuing operations				EPS(1)
As reported	$	192,910		$	68,754		$	89,023			$	(3,290	)		(17.9)%				$	(15,112	)		$	(0.39	)
Amortization of intangibles		-			-			(7,316	)			1,511								5,805
Restructuring charges		-			-			(1,009	)			208								801
Transaction costs		-			-			(168	)			35								133
Contingent consideration benefit		-			-			125				(26	)							(99	)
PFAS inventory reserve		-			3,323			-				687								2,636
Legal costs and regulatory matter expenses		-			-			(3,795	)			784								3,011
Stock-based compensation		-			-			(4,253	)			879								3,374
As adjusted	$	192,910		$	72,077		$	72,607			$	788			58.9%				$	549			$	0.01
(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 is calculated based on 38,286 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 38,426 diluted shares of common stock.

CLARUS CORPORATION
RECONCILIATION FROM OPERATING INCOME (LOSS) TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
	Three Months Ended September 30, 2025																Three Months Ended September 30, 2024
	Outdoor Segment			Adventure Segment				Corporate Costs				Total					Outdoor Segment			Adventure Segment				Corporate Costs				Total
Operating income (loss)	$	3,221		$	(1,721	)		$	(4,526	)		$	(3,026	)			$	1,210		$	(2,507	)		$	(4,061	)		$	(5,358	)
Depreciation		550			344				-				894					640			340				-				980
Amortization of intangibles		222			1,927				-				2,149					286			2,130				-				2,416
EBITDA		3,993			550				(4,526	)			17					2,136			(37	)			(4,061	)			(1,962	)
Restructuring charges		1			154				-				155					189			289				-				478
Transaction costs		414			-				22				436					-			-				103				103
Contingent consideration benefit		-			(355	)			-				(355	)				-			-				-				-
Legal costs and regulatory matter expenses		322			-				679				1,001					194			-				200				394
Stock-based compensation		-			-				1,545				1,545					-			-				1,547				1,547
PFAS and other inventory reserves		-			-				-				-					1,878			-				-				1,878
Adjusted EBITDA	$	4,730		$	349			$	(2,280	)		$	2,799				$	4,397		$	252			$	(2,211	)		$	2,438
Sales	$	48,688		$	20,659			$	-			$	69,347					49,287			17,828				-				67,115
EBITDA margin		8.2	%		2.7	%							0.0	%				4.3	%		(0.2	)%							(2.9	)%
Adjusted EBITDA margin		9.7	%		1.7	%							4.0	%				8.9	%		1.4	%							3.6	%

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)
	Nine Months Ended September 30, 2025																	Nine Months Ended September 30, 2024
	Outdoor Segment				Adventure Segment				Corporate Costs				Total					Outdoor Segment				Adventure Segment				Corporate Costs				Total
Operating loss	$	(899	)		$	(6,978	)		$	(12,812	)		$	(20,689	)			$	(2,896	)		$	(4,544	)		$	(12,829	)		$	(20,269	)
Depreciation		1,590				1,064				-				2,654					1,974				1,077				-				3,051
Amortization of intangibles		750				5,836				-				6,586					857				6,459				-				7,316
EBITDA		1,441				(78	)			(12,812	)			(11,449	)				(65	)			2,992				(12,829	)			(9,902	)
Restructuring charges		132				357				-				489					559				450				-				1,009
Transaction costs		570				40				76				686					-				-				168				168
Contingent consideration benefit		-				(355	)			-				(355	)				-				(125	)			-				(125	)
Legal costs and regulatory matter expenses		2,050				-				1,413				3,463					3,079				-				716				3,795
Impairment of indefinite-lived intangible assets		1,565				-				-				1,565					-				-				-				-
Disposal of internally developed software		-				365				-				365					-				-				-				-
Stock-based compensation		-				-				4,568				4,568					-				-				4,253				4,253
Inventory fair value of purchase accounting		-				120				-				120					-				-				-				-
PFAS and other inventory reserves		490				-				-				490					3,323				-				-				3,323
Adjusted EBITDA	$	6,248			$	449			$	(6,755	)		$	(58	)			$	6,896			$	3,317			$	(7,692	)		$	2,521
Sales	$	129,672			$	55,355			$	-			$	185,027					132,496				60,414				-				192,910
EBITDA margin		1.1	%			(0.1	)%							(6.2	)%				(0.0	)%			5.0	%							(5.1	)%
Adjusted EBITDA margin		4.8	%			0.8	%							(0.0	)%				5.2	%			5.5	%							1.3	%

FAQ

What were Clarus (CLAR) Q3 2025 revenue and adjusted EBITDA figures?

Clarus reported $69.3M revenue and $2.8M adjusted EBITDA for Q3 2025.

How did Clarus' Adventure segment perform in Q3 2025 (CLAR)?

Adventure sales rose 16% to $20.7M in Q3 2025, helped by Australia and RockyMounts.

What drove Black Diamond apparel growth at Clarus (CLAR) in Q3 2025?

Black Diamond apparel sales increased 29% year‑over‑year, cited as a key Outdoor segment driver.

How much cash did Clarus (CLAR) have at September 30, 2025 and how does that compare to year‑end?

Cash and equivalents were $29.5M at Sept 30, 2025 versus $45.4M at Dec 31, 2024.

Did Clarus (CLAR) report net income or a loss in Q3 2025?

Clarus reported a net loss of $1.6M, or $(0.04) per diluted share, in Q3 2025.

What operating cash flow and free cash flow did Clarus (CLAR) report for Q3 2025?

Net cash used in operations was $5.7M and free cash flow was an outflow of $6.9M in Q3 2025.