Clarus Reports Second Quarter 2025 Results

Continued Focus on Simplifying the Business and Accelerating Long-Term Profitable GrowthCompletes Sale of PIEPS Snow Safety Brand for $9.1 Million SALT LAKE CITY, July 31, 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 second quarter ended June 30, 2025. Second Quarter 2025 Financial Summary vs. Same Year‐Ago Quarter Sales of $55.2 million compared to $56.5 million.Gross margin was 35.6% compared to 36.1%; adjusted gross margin of 36.5% compared to 37.4%.Net loss of $8.4 million, or $(0.22) per diluted share, compared to net loss of $5.5 million, or $(0.14) per diluted share.Adjusted net loss of $1.1 million, or $(0.03) per diluted share, compared to adjusted net loss of $1.2 million, or $(0.03) per diluted share.Adjusted EBITDA of $(2.1) million with an adjusted EBITDA margin of (3.8)% compared to $(1.9) million with an adjusted EBITDA margin of (3.4)%. Management Commentary“Despite continued headwinds across the global outdoor market, we remain focused on operational execution and disciplined investment aligned with our strategic roadmap,” said Warren Kanders, Clarus’ Executive Chairman. “Following multiple quarters of progress strengthening the core, we have positioned Black Diamond for a return to growth, highlighted by a simplified product portfolio, sharper and more differentiated marketing message, key personnel hires, and a rationalized inventory position. At Adventure, where results continue to be affected by market softness and over-reliance on legacy customers, we are committed to prioritizing the highest-return initiatives, particularly those that improve our speed to market and enable us to fit more vehicles and, in turn, sell more roof racks and accessories.” Mr. Kanders continued, “Subsequent to the end of the quarter, we were pleased to complete the divestiture of our PIEPS snow safety brand, reflective of our focus on simplifying the Black Diamond business and rationalizing our product categories. This was a highly successful outcome following a competitive process that recognized the value of the brand and its intellectual property. We continue to evaluate all possible opportunities to unlock value at each of Outdoor and Adventure, including further simplification of the businesses and further cost reductions, incremental to those which have already been taken during July. Additionally, we believe that the sum of the parts of our two segments exceeds today's market valuation, and we are committed to maximizing long-term value for our shareholders. While we anticipate a challenging consumer demand outlook through the remainder of the year and additional uncertainty from tariffs, we believe Clarus will benefit from the structural actions and improvements we’ve made across both our Outdoor and Adventure segments as demand normalizes.” Second Quarter 2025 Financial ResultsSales in the second quarter were $55.2 million compared to $56.5 million in the same year‐ago quarter. Sales in the Outdoor segment increased 1% to $36.7 million, compared to $36.2 million in the year-ago quarter. Sales in the Adventure segment decreased 8% to $18.6 million, compared to $20.3 million in the year-ago quarter. The increase in Outdoor sales was due to a shift in timing for IGD revenues into the second quarter, partially offset by decreases in our direct-to-consumer channels in both North America and Europe. Lower sales in the Adventure segment reflect significantly reduced demand from global OEM customers and a challenging wholesale market in Australia for Rhino-Rack, partially offset by increased revenue from the acquisition of RockyMounts and higher promotional sales in North America. Gross margin in the second quarter was 35.6% compared to 36.1% in the year‐ago quarter. The decrease in gross margin was primarily due to lower volumes and unfavorable product mix at the Adventure segment. Specifically, the unfavorable product mix at Adventure was due to promotional sales efforts in North America. This combined with lower wholesale volume at Rhino-Rack in Australia drove the decline in gross margin in the current quarter. These decreases were partially offset by higher volumes and a favorable product mix at the Outdoor segment. Selling, general and administrative expenses in the second quarter were $26.9 million compared to $28.1 million in the same year‐ago quarter. The decrease was primarily due to lower employee-related expenses and marketing costs across the Company, as well as other expense reduction initiatives across both segments and at Corporate to manage costs. Net loss in the second quarter of 2025 was $8.4 million, or $(0.22) per diluted share, compared to net loss of $5.5 million, or $(0.14) per diluted share in the year-ago quarter. Adjusted net loss in the second quarter of 2025 was $1.1 million, or $(0.03) 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 loss excludes legal cost and regulatory matters expenses, inventory reserves, contingent consideration benefits, restructuring charges and transaction costs, as well as non-cash items for intangible amortization, impairment of indefinite-lived intangible assets, and stock-based compensation. Adjusted EBITDA from continuing operations in the second quarter was $(2.1) million, or an adjusted EBITDA margin of (3.8)%, compared to adjusted EBITDA from continuing operations of $(1.9) million, or an adjusted EBITDA margin of (3.4)%, in the same year‐ago quarter. Net cash used in operating activities for the three months ended June 30, 2025, was $(9.4) million compared to net cash generated of $0.8 million in the prior year quarter. Capital expenditures in the second quarter of 2025 were $1.9 million compared to $1.6 million in the prior year quarter. Free cash flow for the second quarter of 2025 was an outflow of $11.3 million. Liquidity at June 30, 2025 vs. December 31, 2024 Cash and cash equivalents totaled $28.5 million compared to $45.4 million.Total debt of $1.9 million (related to the RockyMounts acquisition) compared to $1.9 million. Completed Sale of PIEPSOn July 11, 2025, the Company completed the previously announced sale of its PIEPS snow safety brand, including its portfolio of avalanche safety products such as avalanche transceivers and JetForce avalanche airbag systems, to a private investment firm for a total sales price of €7.8 million, or approximately $9.1 million, including cash and debt. Conference CallThe Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2025 results. Date: Thursday, July 31, 2025Time: 5:00 pm ETRegistration Link: https://register-conf.media-server.com/register/BIb5f720e357264d4fb254f3aa3f9d55cb To access the call by phone, please register via the live call registration link above and you will be provided with dial-in instructions and details. The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com. About Clarus CorporationHeadquartered 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 MeasuresThe 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 StatementsPlease 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. YatesChief Financial Officermike.yates@claruscorp.com Investor Relations:The IGB GroupLeon Berman / Matt BerkowitzTel 1-212-477-8438 / 1-212-227-7098lberman@igbir.com / mberkowitz@igbir.com CLARUS CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(In thousands, except per share amounts) June 30, 2025 December 31, 2024Assets Current assets Cash$28,474 $45,359 Accounts receivable, less allowance for credit losses of $1,146 and $1,271 37,963 43,678 Inventories 91,527 82,278 Prepaid and other current assets 6,770 5,555 Income tax receivable 1,863 910 Assets held for sale 9,330 - Total current assets 175,927 177,780 Property and equipment, net 18,247 17,606 Other intangible assets, net 27,570 31,516 Indefinite-lived intangible assets 45,022 46,750 Goodwill 3,804 3,804 Deferred income taxes 35 36 Other long-term assets 15,905 16,602 Total assets$286,510 $294,094 Liabilities and Stockholders’ Equity Current liabilities Accounts payable$9,068 $11,873 Accrued liabilities 26,629 22,276 Current portion of long-term debt 1,949 1,888 Liabilities held for sale 980 - Total current liabilities 38,626 36,037 Deferred income taxes 10,867 12,210 Other long-term liabilities 11,897 12,754 Total liabilities 61,390 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 700,616 697,592 Accumulated deficit (422,455) (406,857)Treasury stock, at cost (33,156) (33,114)Accumulated other comprehensive loss (19,889) (24,532)Total stockholders’ equity 225,120 233,093 Total liabilities and stockholders’ equity$286,510 $294,094 CLARUS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF LOSS(Unaudited)(In thousands, except per share amounts) Three Months Ended June 30, 2025 June 30, 2024 Sales Domestic sales$24,724 $22,934 International sales 30,523 33,550 Total sales 55,247 56,484 Cost of goods sold 35,567 36,078 Gross profit 19,680 20,406 Operating expenses Selling, general and administrative 26,910 28,081 Restructuring charges 161 161 Transaction costs 108 27 Contingent consideration benefit - (125)Legal costs and regulatory matter expenses 1,837 399 Impairment of indefinite-lived intangible assets 1,565 - Total operating expenses 30,581 28,543 Operating loss (10,901) (8,137) Other income Interest income, net 153 455 Other, net 1,483 414 Total other income, net 1,636 869 Loss before income tax (9,265) (7,268)Income tax benefit (831) (1,775)Net loss$(8,434) $(5,493) Net loss per share: Basic$(0.22) $(0.14)Diluted (0.22) (0.14) Weighted average shares outstanding: Basic 38,402 38,297 Diluted 38,402 38,297 CLARUS CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME(Unaudited)(In thousands, except per share amounts) Six Months Ended June 30, 2025 June 30, 2024 Sales Domestic sales$49,533 $51,218 International sales 66,147 74,577 Total sales 115,680 125,795 Cost of goods sold 75,206 80,538 Gross profit 40,474 45,257 Operating expenses Selling, general and administrative 53,526 56,296 Restructuring charges 334 531 Transaction costs 250 65 Contingent consideration benefit - (125)Legal costs and regulatory matter expenses 2,462 3,401 Impairment of indefinite-lived intangible assets 1,565 - Total operating expenses 58,137 60,168 Operating loss (17,663) (14,911) Other income (expense) Interest income, net 410 825 Other, net 1,942 (495) Total other income, net 2,352 330 Loss before income tax (15,311) (14,581)Income tax benefit (1,633) (2,626)Loss from continuing operations (13,678) (11,955) Discontinued operations, net of tax - 28,346 Net (loss) income$(13,678) $16,391 Loss from continuing operations per share: Basic$(0.36) $(0.31)Diluted (0.36) (0.31) Net (loss) income per share: Basic$(0.36) $0.43 Diluted (0.36) 0.43 Weighted average shares outstanding: Basic 38,384 38,253 Diluted 38,384 38,253 CLARUS CORPORATIONRECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFITAND ADJUSTED GROSS MARGIN THREE MONTHS ENDED June 30, 2025 June 30, 2024 Sales $55,247 Sales $56,484 Gross profit as reported $19,680 Gross profit as reported $20,406 Plus impact of other inventory reserves 490 Plus impact of PFAS and other inventory reserves 716 Adjusted gross profit $20,170 Adjusted gross profit $21,122 Gross margin as reported 35.6% Gross margin as reported 36.1% Adjusted gross margin 36.5% Adjusted gross margin 37.4% SIX MONTHS ENDED June 30, 2025 June 30, 2024 Sales $115,680 Sales $125,795 Gross profit as reported $40,474 Gross profit as reported $45,257 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 1,445 Adjusted gross profit $41,084 Adjusted gross profit $46,702 Gross margin as reported 35.0% Gross margin as reported 36.0% Adjusted gross margin 35.5% Adjusted gross margin 37.1% CLARUS CORPORATION RECONCILIATION FROM NET LOSS TO ADJUSTED NET LOSS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) Three Months Ended June 30, 2025 Totalsales Grossprofit Operatingexpenses Income taxbenefit Taxrate Netloss DilutedEPS (1) As reported$55,247 $19,680 $30,581 $(831) (9.0)% $(8,434) $(0.22) Amortization of intangibles - - (2,213) 217 1,996 Impairment of indefinite-lived intangible assets - - (1,565) - 1,565 Restructuring charges - - (161) 16 145 Transaction costs - - (108) 10 98 Other inventory reserves - 490 - 57 433 Legal costs and regulatory matter expenses - - (1,837) 201 1,636 Stock-based compensation - - (1,554) 57 1,497 As adjusted$55,247 $20,170 $23,143 $(273) 20.4% $(1,064) $(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 38,402 basic and diluted weighted average shares of common stock. Three Months Ended June 30, 2024 Totalsales Grossprofit Operatingexpenses Income taxbenefit Taxrate Netloss DilutedEPS (1) As reported$56,484 $20,406 $28,543 $(1,775) (24.4)% $(5,493) $(0.14) Amortization of intangibles - - (2,451) 265 2,186 Restructuring charges - - (161) 37 124 Transaction costs - - (27) 6 21 Contingent consideration benefit - - 125 (38) (87) PFAS and other inventory reserves - 716 - 146 570 Legal costs and regulatory matter expenses - - (399) 152 247 Stock-based compensation - - (1,528) 306 1,222 As adjusted$56,484 $21,122 $24,102 $(901) 42.7% $(1,210) $(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 38,297 basic and diluted weighted average shares of common stock. CLARUS CORPORATION RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED LOSS FROM CONTINUING OPERATIONS AND RELATED EARNINGS PER DILUTED SHARE (In thousands, except per share amounts) Six Months Ended June 30, 2025 Totalsales Grossprofit Operatingexpenses Income taxbenefit Taxrate Loss fromcontinuing operations DilutedEPS (1) As reported$115,680 $40,474 $58,137 $(1,633) (10.7)% $(13,678) $(0.36) Amortization of intangibles - - (4,437) 512 3,925 Impairment of indefinite-lived intangible assets - - (1,565) - 1,565 Disposal of internally developed software - - (365) 48 317 Restructuring charges - - (334) 39 295 Transaction costs - - (250) 29 221 Inventory fair value of purchase accounting - 120 - 16 104 Other inventory reserves - 490 - 57 433 Legal costs and regulatory matter expenses - - (2,462) 284 2,178 Stock-based compensation - - (3,023) 105 2,918 As adjusted$115,680 $41,084 $45,701 $(543) 24.0% $(1,722) $(0.04) (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 and adjusted loss from continuing operations per share are both calculated based on 38,384 basic and diluted weighted average shares of common stock. Six Months Ended June 30, 2024 Totalsales Grossprofit Operatingexpenses Income taxbenefit Taxrate Loss fromcontinuing operations DilutedEPS (1) As reported$125,795 $45,257 $60,168 $(2,626) (18.0)% $(11,955) $(0.31) Amortization of intangibles - - (4,900) 882 4,018 Restructuring charges - - (531) 96 435 Transaction costs - - (65) 12 53 Contingent consideration benefit - - 125 (38) (87) PFAS and other inventory reserves - 1,445 - 260 1,185 Legal costs and regulatory matter expenses - - (3,401) 613 2,788 Stock-based compensation - - (2,706) 487 2,219 As adjusted$125,795 $46,702 $48,690 $(314) 18.9% $(1,344) $(0.04) (1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share and adjusted loss from continuing operations per share are both calculated based on 38,253 basic and diluted weighted average shares of common stock. CLARUS CORPORATION RECONCILIATION FROM OPERATING LOSS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN (In thousands) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Outdoor Segment Adventure Segment Corporate Costs Total Outdoor Segment Adventure Segment Corporate Costs Total Operating loss$(4,242) $(2,203) $(4,456) $(10,901) $(2,397) $(1,267) $(4,473) $(8,137) Depreciation 534 343 - 877 661 384 - 1,045 Amortization of intangibles 245 1,968 - 2,213 285 2,166 - 2,451 EBITDA (3,463) 108 (4,456) (7,811) (1,451) 1,283 (4,473) (4,641) Restructuring charges (42) 203 - 161 146 15 - 161 Transaction costs 86 - 22 108 - - 27 27 Contingent consideration benefit - - - - - (125) - (125) Legal costs and regulatory matter expenses 1,150 - 687 1,837 180 - 219 399 Impairment of indefinite-lived intangible assets 1,565 - - 1,565 - - - - Stock-based compensation - - 1,554 1,554 - - 1,528 1,528 PFAS and other inventory reserves 490 - - 490 716 - - 716 Adjusted EBITDA$(214) $311 $(2,193) $(2,096) $(409) $1,173 $(2,699) $(1,935) Sales$36,661 $18,586 $- $55,247 36,187 20,297 - 56,484 EBITDA margin (9.4)% 0.6% (14.1)% (4.0)% 6.3% (8.2)% Adjusted EBITDA margin (0.6)% 1.7% (3.8)% (1.1)% 5.8% (3.4)% CLARUS CORPORATION RECONCILIATION FROM OPERATING LOSS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN (In thousands) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Outdoor Segment Adventure Segment Corporate Costs Total Outdoor Segment Adventure Segment Corporate Costs Total Operating loss$(4,120) $(5,257) $(8,286) $(17,663) $(4,106) $(2,037) $(8,768) $(14,911) Depreciation 1,040 720 - 1,760 1,334 737 - 2,071 Amortization of intangibles 528 3,909 - 4,437 571 4,329 - 4,900 EBITDA (2,552) (628) (8,286) (11,466) (2,201) 3,029 (8,768) (7,940) Restructuring charges 131 203 - 334 370 161 - 531 Transaction costs 156 40 54 250 - - 65 65 Contingent consideration benefit - - - - - (125) - (125) Legal costs and regulatory matter expenses 1,728 - 734 2,462 2,885 - 516 3,401 Impairment of indefinite-lived intangible assets 1,565 - - 1,565 - - - - Disposal of internally developed software - 365 - 365 - - - - Stock-based compensation - - 3,023 3,023 - - 2,706 2,706 Inventory fair value of purchase accounting - 120 - 120 - - - - PFAS and other inventory reserves 490 - - 490 1,445 - - 1,445 Adjusted EBITDA$1,518 $100 $(4,475) $(2,857) $2,499 $3,065 $(5,481) $83 Sales$80,984 $34,696 $- $115,680 83,209 42,586 - 125,795 EBITDA margin (3.2)% (1.8)% (9.9)% (2.6)% 7.1% (6.3)% Adjusted EBITDA margin 1.9% 0.3% (2.5)% 3.0% 7.2% 0.1%

Clarus Reports Second Quarter 2025 Results

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