Clarus Reports First Quarter 2026 Results

Grew Quarterly Sales 2.5% and Increased Gross Margin 240 Basis Points

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 to 34.4%; adjusted gross margin of 36.8% compared to 34.6%.
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 5.9% and gross margin increased 260 basis points compared to the prior year, with margin expansion driven by price growth, customer mix, and reduced incentives. The near-term outlook for Adventure remains challenging due to geopolitical and macro factors, including a difficult consumer environment in Australia. Over the long term, we continue to believe the Adventure segment will benefit from the structural improvements we have made over the last several quarters, with profitability recovering as new products launch and demand normalizes.”

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 $61.9 million compared to $60.4 million in the same year‐ago quarter, up 2.5%. Sales in the Outdoor segment increased 1.2% to $44.9 million, compared to $44.3 million in the year-ago quarter. Sales in the Adventure segment increased 5.9% to $17.1 million, compared to $16.1 million in the year-ago quarter.

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 36.8% compared to 34.4% in the year‐ago quarter. The gross margin increase was primarily attributable to higher volumes and a favorable product mix at both the Adventure and Outdoor segments.

Selling, general and administrative expenses in the first quarter were $26.6 million compared to $26.6 million in the same year‐ago quarter. First quarter 2026 expenses reflect lower wages, marketing costs and other expense reduction initiatives across both segments to manage costs and the removal of PIEPS due to its sale during 2025, partially offset by higher outside services and depreciation.

Net loss in the first quarter of 2026 was $(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, in the year-ago quarter.

Adjusted net income in the first quarter of 2026 was $0.7 million, or $0.02 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 income (loss) excludes amortization of intangibles, disposal of internally developed software, restructuring charges, transaction costs, inventory fair value adjustment from purchase accounting, and stock-based compensation.

Adjusted EBITDA in the first quarter was $(1.1) million, or an adjusted EBITDA margin of (1.8)%, compared to adjusted EBITDA of $(1.4) million, or an adjusted EBITDA margin of (2.3)%, in the same year‐ago quarter.

Net cash used in operating activities for the three months ended March 31, 2026, was $(4.1) million compared to net cash used in operating activities of $(2.1) million in the prior year quarter. Capital expenditures in the first quarter of 2026 were $1.6 million compared to $1.2 million in the prior year quarter. Free cash flow for the first quarter of 2026 was $(5.7) million compared to $(3.3) million in the prior year quarter.

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 $245 million and $255 million, compared to its prior outlook of $255 million to $265 million, and adjusted EBITDA to range between approximately $3 million and $5 million, compared to its prior outlook of $9 million to $11 million. The revised adjusted EBITDA guidance now includes an expected decline in our Adventure Segment in Australia and approximately $3 million of legal and regulatory expense for the remainder of 2026. At the midpoint of the revised revenue and adjusted EBITDA outlook, adjusted EBITDA margin is expected to be 1.6%. Capital expenditures are expected to remain between $6 million and $7 million, consistent with the Company’s prior outlook, and free cash flow is now expected to be flat for the full year 2026, compared to the Company’s prior outlook of $3 million to $4 million. For the second quarter of 2026, sales are expected to range between $51 million and $53 million, and adjusted EBITDA is expected to be approximately a $3 million loss. Clarus has not provided net income guidance due to the inherent difficulty of forecasting certain types of expenses and gains, which affect net income but not adjusted EBITDA and/or adjusted EBITDA margin. Therefore, we do not provide reconciliations of adjusted EBITDA and/or adjusted EBITDA margin guidance to net income guidance for fiscal year 2026.

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
[email protected]

Investor Relations:
The IGB Group
Leon Berman / Matt Berkowitz
Tel 1-212-477-8438 / 1-212-227-7098
[email protected] / [email protected]

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 $1,200 and $1,121		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, $0.0001 par value per share; 5,000 shares authorized; none issued		-			-
Common stock, $0.0001 par value per share; 100,000 shares authorized; 43,104 and 43,054 issued and 38,441 and 38,402 outstanding, respectively		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 $625 (net impact of $542). The three months ended March 31, 2025 reconciliation has been restated to conform to the 2026 presentation.

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 $625 ($578 recorded at the Outdoor segment and $47 recorded in Corporate costs). The three months ended March 31, 2025 reconciliation has been restated to conform to the 2026 presentation.