Clarus Corporation (CLAR) Market Cap
Clarus Corporation has a market capitalization of $107.9M.
Financials based on reported quarter end 2025-12-31
Price: $2.81
▼ -0.10 (-3.44%)
Market Cap: 107.91M
NASDAQ · time unavailable
CEO: Warren Kanders
Sector: Consumer Cyclical
Industry: Leisure
IPO Date: 1998-05-27
Website: https://www.claruscorp.com
Clarus Corporation (CLAR) - Company Information
Market Cap: 107.91M · Sector: Consumer Cyclical
Clarus Corporation develops, manufactures, and distributes outdoor equipment and lifestyle products focusing on the outdoor and consumer markets in the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America. Its Outdoor segment offers activity-based apparel, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; skincare and other products; and skis, ski poles, ski skins, and snow safety products, such as avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment, PIEPS, and SKINourishment brands. The company's Precision Sport segment manufactures bullets and ammunition products for precision target shooting, hunting, and military and law enforcement purposes under the Sierra and Barnes brands. The company sells its products to mountain, rock, ice, and gym climbers; and winter outdoor enthusiasts, trail runners, backpackers, competitive shooters, hunters, and outdoor consumers. Its Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was incorporated in 1991 and is headquartered in Salt Lake City, Utah.
Analyst Sentiment
Based on 11 ratings
Analyst 1Y Forecast: $4.83
Average target (based on 2 sources)
Consensus Price Target
Low
$5
Median
$5
High
$5
Average
$5
Potential Upside: 77.9%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"CLAR reported a revenue of $66.998M for the period ending December 31, 2025, despite posting a net income loss of $31.261M. With an operating cash flow of $12.488M and a free cash flow of $11.585M, the company is capable of generating positive cash flow. However, it faces significant leverage, given total liabilities of $52.635M against total assets of $12.664M. The balance sheet shows a net debt of -$24.404M, indicating a cash position exceeding liabilities. Shareholder returns have been impacted by the stock's decline of approximately 30.75% over the past year, with dividends totaling $3.87M in the last year ($0.025 per share each quarter), which provides minimal yield given the drop in stock price. Overall, while the company has shown some operational cash generation, the significant net losses and stock performance detract from its investment appeal."
Revenue Growth
Revenue of $66.998M indicates potential for growth, but historical performance needs to improve.
Profitability
Net income is negative, reflecting challenges in achieving profitability.
Cash Flow Quality
Positive operating cash flow and free cash flow, indicating good cash generation potential.
Leverage & Balance Sheet
Total liabilities exceed total assets, but the net cash position is a positive factor.
Shareholder Returns
Significant share price decline negates the impact of small dividend payments.
Analyst Sentiment & Valuation
Market performance has been weak; current price indicates little confidence from investors.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So what: Management is signaling 2026 as a “fix-the-margins” year after 2025 disruptions. The clearest hard numbers from operations are margin and tariff/FX damages: Outdoor Q4 gross margin fell 280 bps YoY, with tariffs alone contributing 390 bps and FX contracts 240 bps; Adventure Q4 gross margin dropped to 16.0% largely due to a $3.4M inventory reserve write-down. Management also quantified mitigation: Black Diamond’s gross tariff margin/earnings impact was $11M–$12M annually, with pricing/sourcing offsetting all but ~$2.8M (roughly 75–80%), implying an ~$7M–$8M overall price increase (split across May 2025 and early 2026 actions). However, the Q&A tone (partially cut off) reinforces demand uncertainty: retailers are cautious and deferring open-to-buy, and sell-in vs sell-through is not yet showing a clear pattern. Net: confident about gross margin mechanics and pricing execution, but visible volume/replenishment risk persists while macro/seasonality effects normalize.
Growth Catalysts
- Outdoor: Black Diamond apparel line sales growth of 10% in Q4 despite adverse seasonality (U.S. West & Europe); Apparel + Mountain + Climb grew 3.7% in Q4 and represented 86% of Q4 sales (90% for full year)
- Outdoor: e-comm platform + martech stack and a new S&OP system to improve supply/demand alignment (share-gain positioning as market normalizes)
- Outdoor: design-for-deep-winter catalog exceeded expectations and will continue as part of marketing mix
- Adventure: record number of new vehicle fitments delivered in 2025; expanding fitments to support future revenue growth
- Adventure: new 3PL warehouse in the Netherlands improved service levels/shortened lead times enabling new customer wins (Sweden, Norway, U.K., Spain, Eastern Europe)
Business Development
- Adventure (Rhino-Rack): secured chain-wide placement with a large retail customer across all 300 locations in Australia & New Zealand; expected to be a top-5 customer in 2026
- Adventure: added a new Japan distribution partner and multiple partners for off-road markets in Africa
- Adventure (North America): strengthened rack-specialty retailer relationships and upgraded point-of-sale displays driving new placements for Rhino-Rack and RockyMounts
- Outdoor: expanded Europe wholesale and D2C recovery initiatives (service level improvements and shortened lead times) driving new customer wins in Europe and Japan
Financial Highlights
- Outdoor gross margin rate declined 280 bps YoY in Q4 due to unrecovered tariffs + FX contracts + inventory exit write-downs; tariffs accounted for 390 bps impact, FX contracts 240 bps, inventory exits 80 bps
- Outdoor: comparable underlying gross margin improved 450 bps, but underlying improvement was wiped out in Q4 by tariffs & FX (about 630 bps headwind).
- Outdoor adjusted EBITDA: $2.0M for Q4; down $2.1M YoY, with unrecovered tariffs + FX losses totaling $2.4M drag.
- Outdoor gross margin: actual 32.3% vs 35.2% in Q4 2024; improvements were fully offset by tariffs/FX
- Adventure actual gross margin: 16.0% vs 28.9% in Q4 2024; included $3.4M inventory reserve write-down (excluding reserve, Adventure gross margin would have been 34.5%)
- Consolidated adjusted gross margin: 33.6% vs 38% in Q4 2024 (reflecting PFAS-related inventory reserves and purchase accounting inventory fair value adjustments)
- Adventure Q4 sales: $65.4M vs $71.4M prior year (down 8%); primary drivers included reduced demand from 2 OEM customers and weakness in U.S. bike market + customer transitions in Australia/NZ
- Outdoor Q4 revenue: down 2.1% YoY; down 2.9% in constant currency excluding FX; ski segment down 30% YoY due to rotation out of low-margin categories and worst seasonal conditions in 50 years
- Consolidated SG&A: $25.5M vs $27.8M prior year (down 8%)
- Consolidated adjusted EBITDA: $1.2M (adjusted EBITDA margin 1.8%)
- Liquidity: free cash flow in Q4 2025 was $11.6M vs $14.4M in Q4 2024
- Balance sheet: total debt = $0; cash & cash equivalents = $36.7M (vs $45.4M at 12/31/2024)
Capital Funding
- No buybacks or incremental debt disclosed in the transcript
- Debt-free position highlighted; CFO indicated cash range expectation of ~$35M–$40M by year-end (actual $36.7M)
Strategy & Ops
- Outdoor portfolio simplification since 2023: exited low-margin categories (PIEPS, bindings, JetForce mentioned) and rationalized styles/SKUs; headcount reduced 38% vs 2023 baseline (30% excluding manufacturing changes)
- Outdoor systems/ops: new e-comm platform + martech stack; new S&OP system; modernized ERP in EU with new North American ERP
- Outdoor inventory & pricing: concentrated mix into high-volume A styles; reduced markdown/discontinued merchandise; moved BD to a more full-priced lower-discount model; engineered >300 bps product margin improvement pre-tariff through line simplification, sourcing, supply chain improvements
- Outdoor restructuring/footprint actions: closing additional Black Diamond stores; exiting PIEPS/JetForce/bindings; exiting 3PL in Canada; initiating Europe logistics/fulfillment restructure; slimming down athlete roster
- Outdoor restructuring charges: ~$0.9M in Q4; expects additional $1.5M restructuring charges in 2026 (reflected in Q1 results)
- Adventure ops: closed high-cost Wellington, NZ facility and transitioned to 3PL in Auckland; closed Brendale, Queensland facility on March 1, 2026 consolidating MAXTRAX into Eastern Creek HQ (MAXTRAX + Rhino-Rack under one roof)
- Adventure pricing actions: price increases on fast turning RockyMounts SKUs in November; executed price increases across all brands and markets effective Q1 2026
Market Outlook
- 2026 consolidated guidance: full-year sales $255M–$265M; adjusted EBITDA $9M–$11M (3.8% margin at midpoint).
- 2026 segment sales: Adventure $80M; Outdoor $180M (midpoint $260M aligns with consolidated midpoint).
- Adjusted corporate costs: ~ $8M total (~$2M per quarter).
- 2026 capex: $6M–$7M; 2026 free cash flow: $3M–$4M.
- Q1 2026 sales expected: $60M–$62M.
- Guidance caveat: outlook does not include expense for ongoing litigation (Section 16(b), CPSC/DOJ matters).
- Outdoor pricing mitigation status: estimated to offset nearly 75% of tariff impact in 2026, leaving an estimated $2.8M unrecovered tariff/duty gap.
Risks & Headwinds
- Outdoor: Q4 gross margin hit by unrecovered tariffs and FX contracts (tariffs 390 bps; FX contracts 240 bps) plus inventory exit write-downs (80 bps) resulting in net 280 bps gross margin decline YoY in Q4
- Outdoor: management quantified tariff mitigation and remaining exposure—net unrecovered impact from tariffs/duties for 2025 ~ $3.4M to adjusted EBITDA; estimated remaining unrecovered gap for 2026 ~ $2.8M
- Outdoor: 50% Section 232 steel/aluminum tariffs remain in effect and are not covered by the Supreme Court decision (IEEPA tariffs may be partially recoverable)
- Outdoor: FX losses—2025 losses on FX contracts totaled $2.2M EBITDA swing YoY; rolled off and expects $1.6M EBITDA run-rate pickup in 2026 at current exchange rates
- Outdoor: Q4 ski segment down 30% due to rotation out of low-margin categories and the worst seasonal conditions in 50 years in key U.S. ski destinations; December trend tapered in both U.S. West and Europe
- Adventure: Q4 gross margin compressed to 16.0% due to $3.4M inventory reserve write-down on excess/old inventory (including old packaging for in-house assembled goods); also higher customer rebates and higher U.S. tariff impacts
- Adventure: Q4 revenue down 10.4% (in prepared remarks for Adventure segment context) driven by reduced demand from 2 OEM customers, U.S. bike market weakness, and customer transitions in Australia/NZ
- Retail demand visibility risk: management stated it is “hard to read” sell-in vs sell-through; retailers cautious, deferring open-to-buy decisions into latest possible moment (no clear destocking pattern emerged yet; environment of constant change)
Sentiment: MIXED
Note: This summary was synthesized by AI from the CLAR Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.