Clarus Corporation is a global enterprise specializing in the design, production, and supply of outdoor gear and lifestyle goods for consumer markets ...
Clarus Corporation is a global enterprise specializing in outdoor gear and lifestyle products, headquartered in Salt Lake City, Utah. Founded in 1957, it operates through three segments: Outdoor, Precision Sport, and Adventure. The Outdoor segment includes Black Diamond Equipment (climbing gear, apparel, and ski equipment), PIEPS (avalanche safety), and SKINourishment ...Clarus Corporation is a global enterprise specializing in outdoor gear and lifestyle products, headquartered in Salt Lake City, Utah. Founded in 1957, it operates through three segments: Outdoor, Precision Sport, and Adventure. The Outdoor segment includes Black Diamond Equipment (climbing gear, apparel, and ski equipment), PIEPS (avalanche safety), and SKINourishment (skincare). The Precision Sport segment produces high-quality bullets and ammunition under the Sierra and Barnes brands for precision shooters, hunters, and law enforcement. The Adventure segment offers automotive accessories like roof racks (Rhino-Rack) and recovery tracks (MAXTRAX). The company serves customers through specialty retailers, distributors, and direct-to-consumer channels. With approximately 390 employees, Clarus generates revenue from diverse markets worldwide. Recent financials show a market cap around $146 million, with a negative net profit margin (-12.4%) and an enterprise value-to-EBITDA of -3.79, indicating operational challenges. The company is currently reviewing strategic alternatives to unlock shareholder value. Its brand portfolio is well-recognized, and it continues to focus on innovation and high-performance products.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$250.4M
-5.2%
-9.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-46.6M
+11.0%
+243.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+33.1%
-5.4%
+33.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-10.7%
+59.7%
+182.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-18.6%
+6.0%
+257.8%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-9.9M
+29.4%
+111.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-4.0%
+25.5%
+112.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
6.3%
-12.4%
+46.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
4.23x
-14.2%
+1.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clarus Corporation's financial results for the second quarter ended June 30, 2026. Joining us today are Clarus Corporation's Executive Chairman, Warren Kanders; CFO, Mike Yates; President of Black Diamond Equipment, Neil Fiske; and the company's External Director of Investor Relations, Matt Berkowitz. Following their remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Mr. Berkowitz as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Matt, please go ahead.
Matthew Berkowitz: Thank you. Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we will make these statements under the safe harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to potential risks and uncertainties that could cause the actual results of operations or financial condition of Clarus Corporation to differ materially from those expressed or implied by the forward-looking statements. More information on potential factors that could affect the company's operating and financial results is included from time to time in the company's public reports filed with the SEC. I'd like to remind everyone this call will be available for replay starting at 7:00 p.m. Eastern Time tonight. A webcast replay will also be available via the link provided in today's press release as well as on the company's website at claruscorp.com. Now I'd like to turn the call over to Clarus' Executive Chairman, Warren Kanders.
Warren Kanders: Good afternoon, and thank you for joining Clarus' earnings call to review our results for the second quarter. I am joined today by our CFO, Mike Yates, who will provide a financial update, including Adventure segment performance as well as Neil Fiske, who will discuss our Outdoor segment. Overall, our second quarter performance reflected continued operational execution and simplification. Mike will discuss the IEEPA tariff refund, which we recognized during the quarter, which lifted earnings and gross margin. Excluding that benefit, our underlying results across both Outdoor and Adventure were solid and reflect progress across our overall earnings profile. At Outdoor, second quarter revenue, margin and EBITDA all increased year-over-year, evidence of the team's hard work concentrating inventory on our highest volume, highest margin products. Our big 3 Outdoor categories of Mountain, Climb and Apparel drove 95% of total segment revenues. Apparel is a key pillar of our long-term strategy. Our product continues to …
