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Clarus (CLAR) investor relations material
Clarus Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 sales declined 2% year-over-year to $55.2M, with Outdoor segment up slightly and Adventure down.
Net loss widened to $8.4M, or $(0.22) per share, compared to $5.5M in Q2 2024, driven by lower sales, margin compression, and higher legal costs.
Completed sale of PIEPS snow safety brand for $9.1M in July 2025, supporting business simplification and strengthening the balance sheet.
Ongoing restructuring and cost actions, including organizational right-sizing and headcount reductions, with cumulative charges since 2023 totaling $5.5M.
Management remains focused on operational execution, cost discipline, and maximizing long-term shareholder value amid challenging macro conditions.
Financial highlights
Q2 2025 gross margin was 35.6%, down from 36.1% prior year; adjusted gross margin was 36.5% vs. 37.4%.
Adjusted EBITDA was $(2.1)M (margin -3.8%), compared to $(1.9)M and (3.4)% last year.
Net loss for Q2 was $(8.4)M, or $(0.22) per share; adjusted net loss was $(1.1)M, or $(0.03) per share.
Cash and equivalents at quarter-end were $28.5M, with total debt of $1.9M related to RockyMounts acquisition.
Free cash flow was an outflow of $11.3M, mainly due to working capital and inventory build for tariff mitigation.
Outlook and guidance
No formal guidance for Q3 or full year 2025 due to ongoing uncertainty in tariffs, consumer sentiment, and macro conditions.
Management expects continued restructuring costs through year-end 2025 and anticipates structural actions will benefit results as demand normalizes.
Liquidity needs for the next 12 months expected to be met by operating cash flows and proceeds from divestitures.
Focus remains on organic reinvestment in core segments and maintaining capital discipline.
Tariff mitigation plan implemented to offset nearly half of projected 2025 tariff impact.
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