Clarus (CLAR) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales were $65.4M, down 8% year-over-year, with full-year sales at $250.4M, a 5.2% decrease from 2024.

• Adjusted EBITDA for Q4 was $1.2M (1.8% margin); full-year adjusted EBITDA was $1.1M (0.4% margin), both lower than prior year.

• The business remains debt-free with $36.7M in cash at year-end, emphasizing simplification, cost reductions, and operational improvements.

• Apparel sales in the Outdoor segment grew 10% in Q4 despite adverse seasonal conditions.

• Adventure segment faced market pressures, but corrective actions, price increases, and RockyMounts acquisition contributed to performance.

Financial highlights

• Q4 consolidated sales were $65.4M, down 8% year-over-year; full-year sales were $250.4M, down 5%.

• Q4 gross margin was 27.7% (adjusted 33.6%), down from 33.4% (adjusted 38.0%) year-over-year, impacted by tariffs, FX, and inventory reserves.

• Q4 net loss from continuing operations was $31.3M ($0.81 per share); full-year net loss was $46.6M ($1.21 per share).

• Adjusted Q4 income from continuing operations was $3.6M ($0.09 per share), compared to an adjusted loss of $3.2M in Q4 2024.

• Free cash flow for Q4 was $11.6M; cash and equivalents at year-end were $36.7M with zero debt.

Outlook and guidance

• 2026 sales expected between $255M–$265M; adjusted EBITDA $9M–$11M (3.8% margin at midpoint).

• Segment guidance: Adventure $80M, Outdoor $180M in sales for 2026.

• Capex expected at $6M–$7M; free cash flow $3M–$4M for 2026.

• Q1 2026 sales expected at $60M–$62M.