Clarus Corp.

Leisure • Consumer Cyclical • Salt Lake City, UT, United States • CLAR (NMS)

801 278 5552 2084 East 3900 South, Salt Lake City, UT 84124, United States

Quarter: Q4 2025 Reported: November 6, 2025 Sentiment: Neutral

Clarus Corporation designs, develops, manufactures, and distributes outdoor equipment and lifestyle products in the United States, Australia, China, Austria, and internationally. It operates in two segments, Outdoor and Adventure. The Outdoor segment offers apparels, 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; and skis, ski poles, ski skins, avalanche airbag systems and transceivers, shovels, and probes. This segment provides its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment and PIEPS brands. The Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards, bicycle racks, and accessories under the Rhino-Rack brand name; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand, as well as distributes and retails overlanding and off-road vehicle under the TRED brand name. The company 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 formerly known as Black Diamond, Inc. and changed its name to Clarus Corporation in August 2017. The company was founded in 1957 and is headquartered in Salt Lake City, Utah.

Analysis Summary

Clarus Corporation formally announced its financial results for the third quarter ended September 30, 2025, on November 6, 2025. The announcement was made via a press release and an accompanying presentation, both of which are incorporated by reference. A significant portion of the disclosure focused on the company's detailed methodology and rationale for presenting various non-GAAP financial measures. These measures include adjusted gross margin and adjusted gross profit, adjusted (loss) income from continuing operations and related earnings (loss) per diluted share, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, as well as free cash flow (defined as net cash provided by operating activities less capital expenditures).

Management's commentary, as inferred from the emphasis on non-GAAP measures, suggests a strategic intent to provide investors with a more focused view of core operational performance, enabling a clearer understanding of ongoing operations and period-over-period trends. These metrics are presented to enhance the user's overall understanding of the company's current financial performance relative to past performance and to provide a baseline for modeling future earnings expectations. The company explicitly stated that it does not provide a reconciliation of non-GAAP guidance measures like adjusted EBITDA for fiscal year 2025 to GAAP net income, citing the inherent difficulty of forecasting certain expenses and gains without unreasonable effort. Furthermore, Clarus cautioned that non-GAAP measures should be considered supplementary to, not a substitute for, GAAP results, and that there is no assurance these measures are comparable to similarly titled financial measures used by other publicly traded companies. No specific financial figures, growth rates, or detailed forward guidance beyond the mention of non-GAAP guidance were provided in this excerpt, nor were any strategic initiatives, competitive positioning, market trends, or analyst Q&A highlights.

Key Highlights

• Clarus Corporation announced its Q3 2025 financial results on November 6, 2025.
• Results were communicated via a press release and an accompanying presentation.
• The company extensively utilizes and details various non-GAAP financial measures.
• Key non-GAAP measures include adjusted gross margin, adjusted EBITDA, and free cash flow.
• Non-GAAP metrics are intended to provide useful information for understanding ongoing operations and future expectations.
• Reconciliation of non-GAAP guidance to GAAP net income for fiscal year 2025 is not provided due to forecasting difficulties.
• Caution is advised that non-GAAP measures are supplementary and may not be comparable to those of other companies.

Financial Metrics

eps

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revenue

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guidance

net income

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Stock Performance (90 Days)

Data through Dec 26, 2025

Layoff Events

Earnings Calls

Positive Signals

• Company's stated intent to provide useful information for understanding ongoing operations via non-GAAP measures.
• Commitment to transparency by detailing the non-GAAP measures used and their definitions.
• Provision of a presentation alongside the press release for detailed financial results (though not included in this excerpt).

Risks & Concerns

— Non-GAAP measures should be considered in addition to, but not as a substitute for, GAAP results.
— No assurance that non-GAAP financial measures are comparable to similarly titled measures used by other companies.
— Inherent difficulty in forecasting certain expenses and gains, preventing reconciliation of non-GAAP guidance to GAAP net income for fiscal year 2025.