Clarus Corporation reported fourth‑quarter 2025 revenue of $65.4 million, an 8% decline from $71.4 million in the same period a year earlier. Adjusted earnings per share were $0.09, beating consensus estimates of $0.06–$0.07. The earnings beat was driven by disciplined cost management and margin expansion in the Outdoor segment, while the revenue miss reflected softness in the North American wholesale market, lower direct‑to‑consumer sales, the disposal of PIEPS, and reduced demand from two OEM customers.
Full‑year 2025 sales totaled $250.4 million, down 5.2% from $264.3 million in 2024. Gross margin fell to 33.1% from 35.0% the prior year, largely due to tariff impacts and inventory reserves. Adjusted EBITDA for the year was $1.1 million, a margin of 0.4% versus 2.6% in 2024, reflecting inventory write‑downs and continued tariff headwinds.
Segment performance highlighted that the Outdoor division drove margin expansion, with apparel sales growing 10% in Q4. The Adventure segment experienced margin compression from tariff headwinds and inventory write‑downs; excluding the inventory reserve, its gross margin would have been 34.5%.
Management guidance for fiscal 2026 projects sales of $255 million to $265 million and adjusted EBITDA of $9 million to $11 million, above analyst estimates. The company remains debt‑free, holding $29.5 million in cash (though other sources report $36.7 million) and expects positive free cash flow in 2026. Executive Chairman Warren Kanders said, "We took decisive actions in 2025 to sharpen our focus and position Clarus for category‑specific growth and greater profitability." CFO Michael J. Yates noted, "Fourth quarter sales were $65.4 million compared to $71.4 million in the fourth quarter of the prior year," and added, "Excluding this inventory reserve, our gross margin at Adventure for Q4 2025 would have been 34.5%."
Market reaction was muted; the stock closed near its 52‑week low, with investors weighing the revenue miss and EBITDA miss against the EPS beat and positive 2026 guidance.
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