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Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus
(NASDAQ:CLAR)
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Rating:48Neutral
Price Target:
$3.00
▲(6.38% Upside)
Action:ReiteratedDate:03/06/26
The score is held down primarily by weak financial performance (multi-year losses, declining revenue, and negative cash flow in 2024–2025) and bearish technical positioning below major moving averages. Partially offsetting this are a debt-free balance sheet and a balanced-to-slightly constructive 2026 outlook with explicit guidance and expected positive free cash flow, plus a moderate dividend yield.
Positive Factors
Debt-free balance sheet
A zero-debt capital structure with ~$36.7M in cash materially lowers financial risk and preserves strategic optionality. This balance-sheet strength gives management flexibility to fund restructuring, absorb tariff/headwind shocks, invest in product development, and sustain operations during a multi-quarter recovery.
Black Diamond product momentum
Sustained apparel growth and strong Black Diamond mix show durable brand/portfolio strength and higher‑margin product concentration. Continued product momentum, SKU rationalization and record product development support repeat demand, improved product margins and a clearer path to recurring revenue expansion.
Clear 2026 guidance & FCF target
Explicit fiscal‑2026 targets provide a transparent operational roadmap and set expectations for modest profitability and positive free cash flow. Clear guidance anchors planning, supports resource allocation for restructuring and capex, and indicates management confidence in margin and working capital improvements.
Negative Factors
Multi-year losses & revenue decline
A multi-year earnings deficit and consecutive revenue declines signal structural demand or execution issues. Persistent losses erode retained earnings, limit reinvestment, and lengthen the timeline to sustainable profitability even with cost actions, making recovery more challenging and uncertain.
Weak cash generation in 2024–2025
Recent negative operating and free cash flows reduce internal funding for inventory, product development and marketing. Even with cash reserves, inconsistent cash generation constrains the company's ability to sustain growth investments and increases sensitivity to demand shocks or unexpected costs.
Legal & regulatory uncertainty
Ongoing litigation and regulatory probes create persistent financial and operational risk through potential fines, settlements and legal expense. Such uncertainty can distract management, impair retailer or partner relationships, and complicate forecasting, potentially delaying strategic initiatives and recovery.
Clarus (CLAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$108.29M
Dividend Yield2.93%
Average Volume (3M)141.12K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth30.34%
EPS Growth-1749.06%
CountryUS
Employees470
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-0.81
Shares Outstanding38,401,825
10 Day Avg. Volume185,971
30 Day Avg. Volume141,122
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.65
Price to Sales (P/S)0.51
P/FCF Ratio-12.98
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit1.09
Enterprise Value/Ebitda-9.59
Forecast
1Y Price Target
$4.08Price Target Upside44.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$258.45M
Clarus Business Overview & Revenue Model
Company DescriptionClarus 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.
How the Company Makes MoneyClarus generates revenue through the sale of its outdoor gear and equipment across various channels, including retail, e-commerce, and international distribution. The company has multiple key revenue streams, including direct sales of climbing gear, skiing equipment, and apparel, as well as partnerships with retailers and distributors that expand its market reach. Additionally, Clarus benefits from brand loyalty and a strong reputation in the outdoor community, which contributes to consistent sales growth. Seasonal peaks during winter and summer sports also significantly influence its earnings, along with ongoing investments in product innovation and marketing efforts.
Clarus Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: the company faces meaningful near-term headwinds including revenue declines, tariff and FX-related margin pressure, significant inventory reserves (notably in Adventure) and ongoing legal uncertainty. Offsetting these negatives are several substantive positives — a debt-free balance sheet, strong cash generation, operational simplification and margin-improvement initiatives (including large pricing actions that have offset a substantial portion of tariff impact), product-line momentum at Black Diamond (notably apparel), geographic expansion and distribution wins for Adventure, and clear 2026 guidance. Management emphasized progress in restructuring, improved inventory quality, and path-to-recovery actions, but the benefits are partially offset by current macro and one-time charges. Overall, the positives and negatives are roughly balanced.Q4-2025 Updates
Positive Updates
Debt-Free Balance Sheet and Cash Position
Total debt of $0 at December 31, 2025 and cash & cash equivalents of $36.7 million (guidance-consistent range of $35M-$40M). Strong Q4 free cash flow of $11.6 million (although down from $14.4M YoY).
Clear 2026 Financial Guidance
Full-year 2026 revenue guidance $255M–$265M (midpoint $260M) with adjusted EBITDA guidance $9M–$11M (approx. 3.8% margin at midpoint). Segment targets: Adventure ~$80M and Outdoor ~$180M.
Operational and Margin Actions Taken
Implemented pricing, sourcing, vendor concessions, air freight and other tariff mitigations that offset ~75% of Black Diamond tariff impact heading into 2026; Black Diamond estimates roughly $7M–$8M of price increases taken cumulatively to offset tariffs and expects the remaining unrecovered impact to be ~$2.8M in 2026.
Black Diamond Apparel Momentum
Black Diamond apparel sales grew 10% in Q4 despite unusually poor seasonal conditions; apparel (with mountain and climb) grew 3.7% in Q4 and accounted for 86% of Q4 sales and ~90% for the full year, and apparel expected to be up double-digits in 2026.
Improved Inventory Composition and Product Margin Progress
Significant portfolio simplification (exited low-margin categories, SKU rationalization), engineered >300 basis points of product margin improvement pre-tariff at Black Diamond via mix, sourcing and line simplification; management reports improved inventory quality and concentration in high-volume 'A' SKUs.
Adventure International Growth and Distribution Wins
Adventure expanded European footprint with new Netherlands 3PL (enabling smaller-order growth across Sweden, Norway, U.K., Spain and Eastern Europe) and added a Japan partner; secured chain-wide Rhino-Rack placement across ~300 Australia/New Zealand locations expected to be a top-5 customer in 2026.
Record Product Development Achievements
Adventure delivered a record number of new vehicle fitments in 2025 (most in the prior 10 years), strengthening competitive positioning and supporting future revenue growth.
Restructuring & Cost Discipline
Ongoing restructuring and cost actions: headcount reduction (BD headcount down 38% vs 2023 baseline, 30% excluding manufacturing changes), store closures, consolidation of facilities, and other cost-outs that reduced SG&A (Q4 SG&A down 8% YoY).
Negative Updates
Consolidated Revenue Decline
Q4 consolidated sales $65.4M versus $71.4M prior year, an ~8% decrease. Consolidated revenue headwinds included weaker Outdoor wholesale (NA wholesale -10.4% ex-FX contracts) and reduced demand from two OEM Adventure customers.
Significant Gross Margin Compression
Consolidated gross margin fell to 27.7% in Q4 from 33.4% a year ago (down ~570 basis points). Adjusted consolidated gross margin declined to 33.6% from 38.0% (down ~440 bps). Management attributed large portion of the decline to unrecovered tariffs, FX contract losses and inventory write-downs.
Tariffs and FX Losses Materially Impacted Earnings
Tariffs and duties estimated to have a ~$3.4M hit to Black Diamond adjusted EBITDA in 2025 (with a remaining ~$2.8M unrecovered gap expected in 2026). FX contract losses were ~ $2.2M EBITDA swing in 2025; these FX contracts suppressed product margins in Q4.
Adventure Segment Margin Collapse and Inventory Reserve
Adventure Q4 actual gross margin fell to 16.0% from 28.9% prior year. This included a significant $3.4M inventory reserve for excess/old inventory; excluding this reserve Adventure margin would have been ~34.5%.
Ski Business Weakness
Ski business declined ~30% year-over-year in Q4 due to both strategic exits from low-margin ski categories (bindings, beacons, airbags) and the most unfavorable seasonal conditions in key U.S. ski destinations in ~50 years.
Inventory Balance Increased
Ending inventory of $64.9M vs $53.5M (ex-PIEPS prior year) — increases driven by change from DAP to FOB recognition (~$7.9M timing), plus tariffs and currency inflating inventory value (~$5M). Additional inventory reserves taken in Q4 ($3.4M Adventure, $0.5M Outdoor).
Low Adjusted EBITDA and Tight Margins
Consolidated adjusted EBITDA for Q4 was $1.2M (adjusted EBITDA margin ~1.8%). Outdoor adjusted EBITDA was ~$2.0M, Adventure ~$0.3M, and adjusted corporate costs ~$1.2M. Full-year adjusted EBITDA guidance implies modest margin expansion but remains low.
Ongoing Legal and Regulatory Uncertainty
Active legal matters include appeals in Section 16(b) litigation (Second Circuit), a CPSC/DOJ-related investigation into binds/avalanche beacon with grand jury subpoenas and target letters, and ongoing legal costs ($1.2M in Q4; $4.7M for FY2025).
Company Guidance
Clarus guided full‑year 2026 consolidated sales of $255–$265 million (midpoint $260M) with adjusted EBITDA of $9–$11 million (midpoint $10M), implying an adjusted EBITDA margin of ~3.8% at the midpoint; segment guidance was Adventure $80M and Outdoor $180M. They expect Q1 sales of $60–$62M, capital expenditures of $6–$7M, adjusted corporate costs of about $8M ($2M/quarter), free cash flow of $3–$4M, and a year‑end cash position consistent with the prior target range (~$35–$40M; cash was $36.7M at 12/31/25). The outlook reflects an estimated $2.8M unrecovered tariff gap for 2026 (after offsetting ~75% of tariff impact), a $1.6M EBITDA run‑rate pickup from rolling off FX losses, an expected ~$1.5M of additional restructuring charges (largely in Q1), and excludes any expense for ongoing Section 16(b), CPSC or DOJ matters.Clarus Financial Statement Overview
Summary
Overall fundamentals are pressured by continued net losses (2022–2025), shrinking revenue (2023–2025), and negative operating/free cash flow in 2024–2025. The main offset is a meaningfully de-risked balance sheet with debt reduced to zero by 2025 and fairly steady gross margin in the low-to-mid 30% range, but profitability and cash generation trends remain the key weakness.Income Statement
Profitability is weak and has deteriorated: the company posted net losses in 2022–2025, with 2025 net margin at roughly -18.6% and 2024 near -19.8%, after a much smaller loss in 2023. Revenue has also been shrinking for three straight years (2023–2025), including a sharp reported decline in 2025. A key positive is that gross margin has remained fairly steady around the low-to-mid 30% range, suggesting the core product economics are not collapsing—but operating costs and/or one-time charges are overwhelming that gross profit.28
Negative
Balance Sheet
Leverage has improved materially: total debt fell from elevated levels in 2022–2023 to modest in 2024 and zero in 2025, which reduces financial risk. Equity remains sizable, supporting balance-sheet flexibility. However, returns on shareholders’ capital are negative in recent years due to ongoing losses, and the 2025 total assets figure appears unusually low versus prior years, introducing some uncertainty around year-over-year comparability.55
Neutral
Cash Flow
Cash generation is inconsistent. The business produced solid positive operating and free cash flow in 2022–2023, but swung to negative operating cash flow and negative free cash flow in 2024–2025, which pressures liquidity and reduces reinvestment capacity. While 2025 free cash flow improved versus 2024 (less negative), it remains below zero, and recent cash flow performance does not yet support a sustained turnaround.34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 252.03M | 264.31M | 286.02M | 315.25M | 265.97M |
| Gross Profit | 72.18M | 92.62M | 97.51M | 109.95M | 87.87M |
| EBITDA | -8.23M | -9.35M | 1.49M | 12.09M | 13.03M |
| Net Income | -46.56M | -52.29M | -10.15M | -69.78M | 26.09M |
Balance Sheet | |||||
| Total Assets | 12.66M | 294.09M | 495.34M | 518.14M | 631.83M |
| Cash, Cash Equivalents and Short-Term Investments | 36.69M | 45.36M | 11.32M | 11.98M | 19.46M |
| Total Debt | 12.29M | 16.65M | 136.00M | 154.65M | 159.47M |
| Total Liabilities | 52.63M | 61.00M | 203.22M | 226.04M | 261.66M |
| Stockholders Equity | 196.39M | 233.09M | 292.12M | 292.11M | 370.17M |
Cash Flow | |||||
| Free Cash Flow | -9.91M | -14.04M | 25.96M | 6.36M | -17.69M |
| Operating Cash Flow | -4.75M | -7.30M | 31.92M | 14.61M | -304.00K |
| Investing Cash Flow | 2.77M | 165.16M | -11.42M | -7.75M | -178.14M |
| Financing Cash Flow | -5.88M | -123.24M | -20.25M | -13.86M | 180.68M |
Clarus Technical Analysis
Negative
2.82
Price Trends
3.38
Negative
3.38
Negative
3.43
Negative
Market Momentum
-0.15
Positive
33.45
Neutral
7.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Negative. The current price of 2.82 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 3.38, and below the 200-day MA of 3.43, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 7.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLAR.
Clarus Risk Analysis
Clarus disclosed 47 risk factors in its most recent earnings report. Clarus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clarus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $235.10M | 13.56 | 8.03% | 4.71% | -4.56% | -2.85% | |
69 Neutral | $462.14M | -33.91 | -5.18% | 3.22% | -0.07% | -31.45% | |
63 Neutral | $5.53B | 25.34 | 23.39% | 1.15% | 4.20% | 24.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | $108.29M | -2.76 | -33.17% | 2.93% | 30.34% | -1749.06% | |
47 Neutral | $103.29M | -6.98 | -3.19% | ― | 2.85% | 24.82% |
* Consumer Cyclical Sector Average
CLAR
Clarus
2.82
-1.07
-27.43%
ESCA
Escalade
17.17
2.81
19.54%
GOLF
Acushnet Holdings
94.44
29.19
44.73%
JOUT
Johnson Outdoors
44.68
20.46
84.45%
AOUT
American Outdoor Brands
8.20
-5.14
-38.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.