Investors in Clarus Corporation (CLAR) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct. 17, 2025 $5 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also ...

Group 1 - Clarus Corporation (NASDAQ: CLAR) has approximately 6% exposure to tariffs in its annualized operating expenses [2] - The company has recently implemented price increases to address the tariff impact [2] - The Value Lab focuses on long-only value investment strategies, targeting a portfolio yield of about 4% [1][2] Group 2 - The Valkyrie Trading Society consists of analysts who share high conviction investment ideas that are expected to generate non-correlated and outsized returns [3] - The society emphasizes downside protection in the current economic environment [3]

Core Points - Ontario's five largest REALTOR® associations support the Ford government's intervention in the review of the Real Estate Council of Ontario (RECO) following the iPro Realty Ltd. investigation [1] - The associations advocate for a comprehensive review of RECO's governance and practices, emphasizing the need for reforms such as Ombudsperson oversight and stronger accountability measures [2][4] - The iPro Realty investigation has raised concerns about transparency and accountability within Ontario's real estate regulator, impacting consumer confidence and the reputation of honest REALTORS® [3] Recommendations - The associations recommend bringing RECO under the oversight of Ombudsman Ontario, similar to real estate regulators in British Columbia and Québec, to enhance consumer protection and professionalism [4] - There is a commitment from the associations to collaborate with the government to ensure the review leads to a transparent and effective regulatory body [5]

Financial Data and Key Metrics Changes - The company reported net sales of $55.2 million for Q2 2025, a slight increase compared to the same period last year [4][30] - Consolidated gross margin for Q2 was 35.6%, down from 36.1% in the prior year [31] - Adjusted EBITDA for Q2 was a loss of $2.1 million, reflecting a negative adjusted EBITDA margin of -3.8% [34] Business Line Data and Key Metrics Changes - The Adventure segment experienced an 8% decline in sales year-over-year, primarily due to reduced demand from a global OEM customer [23][30] - The Outdoor segment saw a 1% increase in sales, with North American wholesale up 1.6% and European wholesale up 4.8% [16][31] - Black Diamond's revenue for Q2 was $36.5 million, up 2.1% from the prior year, with gross margin at 34.9%, an increase of 80 basis points [15][18] Market Data and Key Metrics Changes - North American digital direct-to-consumer sales were down 20.1%, reflecting a strategic shift towards full-price sales [16][70] - International distributor markets saw an 81.3% increase, indicating a shift in delivery timing [17] - The company faced a $3.9 million consolidated headwind from tariffs in 2025, despite mitigation efforts [38] Company Strategy and Development Direction - The company is focused on simplifying its organizational structure and product offerings to drive sustainable growth [5][8] - A divestiture of the PEEPS brand for $9.1 million aligns with the company's simplification strategy [6][37] - The company aims to maintain a nearly debt-free balance sheet while prioritizing reinvestment in existing segments for organic growth [8][39] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding macroeconomic conditions, consumer sentiment, and evolving tariff policies impacting future performance [9][21] - The company is optimistic about its positioning compared to a year ago, despite ongoing challenges [21][43] - Management refrained from providing specific guidance for Q3 or full-year 2025 due to uncertainties [39] Other Important Information - The company has initiated a review to evaluate opportunities for shareholder value creation, including further cost reductions [8] - The sale of PEEPS is expected to be accretive, as it previously incurred losses [74] - The company is focused on improving inventory quality and reducing exposure to discounted merchandise [6][20] Q&A Session Summary Question: What is the status of the Adventure segment's vehicle fit growth? - Management confirmed an increase to 579 vehicle fits, focusing on the top-selling vehicles in both the Australian and U.S. markets [46][49] Question: Can you elaborate on the promotional actions taken in the Adventure segment? - The company has moved inventory that was previously written off, recovering costs but impacting margins [50][52] Question: How does the Outdoor segment's discontinued merchandise sales compare year-over-year? - The decrease in discontinued merchandise sales is attributed to less PFAS inventory being sold compared to the previous year [53][55] Question: What are the trends in outdoor revenue and growth expectations for the rest of the year? - The wholesale business is expected to show low single-digit growth, while direct-to-consumer sales are anticipated to remain soft due to a shift towards full-price selling [63][70] Question: What is the cash flow outlook for the remainder of the year? - The company aims to improve cash flow through working capital management and does not anticipate share buybacks, focusing instead on organic reinvestment [82][84] Question: Can you clarify the company's exposure to tariffs by country? - The Adventure segment sources most products from China, while Black Diamond sources from various Southeast Asian countries, with ongoing efforts to mitigate tariff impacts [88][89]

Financial Performance - Q2 2025 - Revenue decreased by 2% year-over-year to $55.2 million[16, 24] - Adjusted EBITDA was $(2.1) million, compared to $(1.9) million in Q2 2024[16, 24] - Adjusted Gross Margin decreased by 90 BPS year-over-year to 36.5%[16, 24] - Net loss was $(8.434) million, or $(0.22) per share[29] Segment Performance - Q2 2025 - Adventure Revenue decreased to $18.6 million[16] - Outdoor Revenue increased by 1% year-over-year to $36.7 million[16] Financial Position - The company had $28.5 million in cash on the balance sheet as of June 30, 2025[14] - Total current assets were $175.927 thousand as of June 30, 2025[27] Financial Performance - YTD 2025 - Total sales decreased to $115.680 million from $125.795 million[31] - Net loss was $(13.678) million, or $(0.36) per share[31]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Clarus Corporation's unaudited condensed consolidated financial statements, detailing balance sheets, comprehensive loss, cash flows, and notes, with key events including the PIEPS business classification as held for sale and the Precision Sport segment sale [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets decreased to $286.5 million, total liabilities remained stable at $61.4 million, and stockholders' equity decreased to $225.1 million, with PIEPS assets and liabilities classified as held for sale Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$286,510** | **$294,094** | | Total Current Assets | $175,927 | $177,780 | | Cash | $28,474 | $45,359 | | Inventories | $91,527 | $82,278 | | Assets held for sale | $9,330 | $- | | **Total Liabilities** | **$61,390** | **$61,001** | | Total Current Liabilities | $38,626 | $36,037 | | Liabilities held for sale | $980 | $- | | **Total Stockholders' Equity** | **$225,120** | **$233,093** | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The company reported a Q2 2025 net loss of $8.4 million, increasing from $5.5 million year-over-year, and a six-month loss from continuing operations of $13.7 million, contrasting with prior year's net income due to discontinued operations Q2 Financial Performance (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Sales | $55,247 | $56,484 | | Gross Profit | $19,680 | $20,406 | | Operating Loss | $(10,901) | $(8,137) | | Net Loss | $(8,434) | $(5,493) | | Diluted Net Loss Per Share | $(0.22) | $(0.14) | Six-Month Financial Performance (in thousands, except per share) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Sales | $115,680 | $125,795 | | Gross Profit | $40,474 | $45,257 | | Operating Loss | $(17,663) | $(14,911) | | Loss from Continuing Operations | $(13,678) | $(11,955) | | Income from Discontinued Operations | $- | $28,346 | | Net (Loss) Income | $(13,678) | $16,391 | - An impairment charge of **$1.565 million** on indefinite-lived intangible assets was recorded in Q2 2025, contributing to the increased operating loss[13](index=13&type=chunk)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for H1 2025 was $11.5 million, while investing activities used $3.0 million, a significant shift from the prior year's $172.2 million provided by the Precision Sport segment sale Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(11,497) | $(15,527) | | Net Cash (Used in) Provided by Investing Activities | $(2,990) | $172,162 | | Net Cash Used in Financing Activities | $(1,962) | $(121,602) | | **Change in Cash** | **$(15,929)** | **$34,897** | - The significant variance in investing and financing cash flows year-over-year is primarily due to the **$175.7 million** proceeds from the sale of a business in H1 2024, which was subsequently used to repay over **$150 million** in debt[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail key events including the RockyMounts acquisition, the Precision Sport segment sale, the PIEPS business classification as held for sale with a related $1.565 million impairment, and a $2.5 million accrued liability for ongoing CPSC legal matters - On February 29, 2024, the company completed the sale of its Precision Sport segment (Sierra and Barnes) for **$175 million** in cash, with activities reported as discontinued operations and a pre-tax gain on sale of **$40.6 million**[32](index=32&type=chunk) - On May 8, 2025, the company entered an agreement to sell its PIEPS business, resulting in PIEPS assets and liabilities being classified as held for sale, with the sale closing subsequent to the quarter end on July 11, 2025[37](index=37&type=chunk)[119](index=119&type=chunk) - A triggering event in Q2 2025 led to a quantitative assessment and a resulting impairment charge of **$1.565 million** for the PIEPS trademark[38](index=38&type=chunk)[47](index=47&type=chunk) - The company is under investigation by the CPSC and Department of Justice regarding product recalls, and believing an unfavorable outcome is probable, recorded a liability of **$2.5 million**, representing the low end of its estimated exposure[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial results, noting a 2.2% sales decrease and gross margin contraction to 35.6%, driven by Adventure segment weakness, while liquidity is supported by cash and prior asset sales after credit facility termination [Results of Operations](index=55&type=section&id=Results%20of%20Operations) Q2 2025 sales decreased 2.2% to $55.2 million, and H1 2025 sales decreased 8.0% to $115.7 million, primarily due to Adventure segment weakness, while gross margin contracted and operating loss widened to $10.9 million due to impairment and legal costs Q2 2025 vs. Q2 2024 Sales (in thousands) | Segment | Q2 2025 Sales | Q2 2024 Sales | Change (%) | | :--- | :--- | :--- | :--- | | Outdoor | $36,661 | $36,187 | +1.3% | | Adventure | $18,586 | $20,297 | -8.4% | | **Total** | **$55,247** | **$56,484** | **-2.2%** | - The Adventure segment's sales decrease was due to lower demand from global OEM customers and a challenging Australian wholesale market, partially offset by the RockyMounts acquisition[147](index=147&type=chunk) - Q2 2025 gross margin fell to **35.6%** from **36.1%** year-over-year, primarily due to lower volumes and an unfavorable product mix at the Adventure segment, driven by promotional sales in North America and lower wholesale volume in Australia[151](index=151&type=chunk) - Operating loss for Q2 2025 increased to **$10.9 million** from **$8.1 million** in Q2 2024, largely due to a **$1.6 million** impairment of the PIEPS trademark and a **$1.4 million** increase in legal costs[143](index=143&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, cash decreased to $28.5 million, with $11.5 million net cash used in operating activities for H1 2025, following the termination of credit facilities and debt repayment from prior asset sales Cash and Liquidity (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $28,474 | $45,359 | - The company terminated and settled all outstanding borrowings on its revolving credit facility and term debt in February 2024 upon closing the sale of the Precision Sport segment[187](index=187&type=chunk)[198](index=198&type=chunk) Free Cash Flow Reconciliation (Non-GAAP) - H1 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Net cash used in operating activities | $(11,497) | | Purchase of property and equipment | $(3,044) | | **Free cash flow** | **$(14,541)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes to its market risk disclosures compared to its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to market risk were reported for the period[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[201](index=201&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[202](index=202&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) The company details ongoing legal proceedings, primarily CPSC and Department of Justice investigations regarding avalanche transceivers, for which a $2.5 million liability has been accrued, with potential for materially adverse outcomes - The company is under investigation by the CPSC and the U.S. Department of Justice regarding avalanche transceivers distributed by its subsidiary, BDEL[209](index=209&type=chunk)[217](index=217&type=chunk) - CPSC staff recommended civil monetary penalties of **$16.1 million** and **$9.0 million** for two separate matters related to the transceivers, with the matter referred to the U.S. Department of Justice for further proceedings[214](index=214&type=chunk)[215](index=215&type=chunk) - The company believes an unfavorable outcome is probable and has accrued a liability of **$2.5 million**, though it cannot reasonably estimate the final terms of resolution, and any penalties could have a material adverse effect[219](index=219&type=chunk)[222](index=222&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) The company reported no material changes to its risk factors compared to its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported for the period[223](index=223&type=chunk) [Item 5. Other information](index=72&type=section&id=Item%205.%20Other%20information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the second quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter ended June 30, 2025[224](index=224&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Amended and Restated 2015 Stock Incentive Plan and Sarbanes-Oxley officer certifications - Key exhibits filed with this report include the Amended and Restated 2015 Stock Incentive Plan and various Sarbanes-Oxley certifications[227](index=227&type=chunk)

[Q2 2025 Financial Highlights and Management Commentary](index=1&type=section&id=Q2%202025%20Financial%20Highlights%20and%20Management%20Commentary) This section provides an overview of Clarus's Q2 2025 financial performance and management's strategic insights amidst market challenges [Second Quarter 2025 Financial Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Summary%20vs.%20Same%20Year-Ago%20Quarter) In the second quarter of 2025, Clarus reported a slight year-over-year sales decline to $55.2 million. The company's net loss widened to $8.4 million from $5.5 million, while the adjusted net loss remained flat at $(0.03) per diluted share. Adjusted EBITDA showed a slightly larger loss of $(2.1) million compared to the prior year Financial Metric Comparison | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Sales | $55.2 million | $56.5 million | -2.3% | | Gross Margin | 35.6% | 36.1% | -50 bps | | Adjusted Gross Margin | 36.5% | 37.4% | -90 bps | | Net Loss | $(8.4) million | $(5.5) million | Increased Loss | | Net Loss per Diluted Share | $(0.22) | $(0.14) | Increased Loss | | Adjusted Net Loss | $(1.1) million | $(1.2) million | Improved | | Adjusted Net Loss per Diluted Share | $(0.03) | $(0.03) | Flat | | Adjusted EBITDA | $(2.1) million | $(1.9) million | Increased Loss | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized its focus on operational execution and disciplined investment amid ongoing headwinds in the global outdoor market. Key strategic actions include simplifying the Black Diamond business, highlighted by the recent divestiture of the PIEPS brand, and prioritizing high-return initiatives for the Adventure segment. While anticipating a challenging consumer demand outlook for the remainder of the year, the company believes its structural improvements will yield benefits as market conditions normalize - Completed the divestiture of the PIEPS snow safety brand for approximately **$9.1 million**, reflecting a strategy to simplify the Black Diamond business and rationalize product categories[3](index=3&type=chunk) - Positioned the Black Diamond brand for a return to growth through a simplified product portfolio, sharper marketing, key hires, and a rationalized inventory position[3](index=3&type=chunk) - The Adventure segment continues to be affected by market softness and over-reliance on legacy customers; the focus is on improving speed to market and expanding vehicle fitment[3](index=3&type=chunk) - Management believes the combined value of its Outdoor and Adventure segments exceeds the current market valuation and is committed to maximizing long-term shareholder value[3](index=3&type=chunk) [Q2 2025 Financial Performance Analysis](index=2&type=section&id=Q2%202025%20Financial%20Performance%20Analysis) This section provides a detailed analysis of Clarus's sales performance, profitability, and adjusted financial metrics for the second quarter of 2025 [Sales Performance](index=2&type=section&id=Sales%20Performance) Total sales for Q2 2025 decreased by 2.3% to $55.2 million. The Outdoor segment's sales grew 1% to $36.7 million, driven by a timing shift in IGD revenues. Conversely, the Adventure segment's sales declined 8% to $18.6 million, impacted by reduced demand from global OEM customers and a challenging wholesale market in Australia, which was partially offset by the RockyMounts acquisition Segment Sales Performance | Segment | Q2 2025 Sales | Q2 2024 Sales | YoY Change | | :--- | :--- | :--- | :--- | | Outdoor | $36.7 million | $36.2 million | +1% | | Adventure | $18.6 million | $20.3 million | -8% | | **Total Sales** | **$55.2 million** | **$56.5 million** | **-2.3%** | - The increase in Outdoor sales was attributed to a shift in the timing of IGD revenues into the second quarter[6](index=6&type=chunk) - The decrease in Adventure sales was due to lower demand from global OEM customers and a weak wholesale market for Rhino-Rack in Australia[6](index=6&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross margin for Q2 2025 decreased to 35.6% from 36.1% year-over-year, primarily due to lower volumes and an unfavorable product mix from promotional sales in the Adventure segment. Selling, general and administrative (SG&A) expenses were reduced to $26.9 million from $28.1 million due to cost management initiatives. The company's net loss increased to $8.4 million from $5.5 million in the prior-year quarter - Gross margin decreased to **35.6%** from **36.1%** YoY, driven by lower volumes and unfavorable product mix at the Adventure segment[7](index=7&type=chunk) - SG&A expenses decreased by **$1.2 million** YoY to **$26.9 million**, primarily due to lower employee-related and marketing costs[8](index=8&type=chunk) - Net loss was **$8.4 million**, or **$(0.22)** per diluted share, compared to a net loss of **$5.5 million**, or **$(0.14)** per diluted share, in Q2 2024[9](index=9&type=chunk) [Adjusted Performance Metrics](index=2&type=section&id=Adjusted%20Performance%20Metrics) On an adjusted basis, the company's performance was relatively stable year-over-year. Adjusted net loss was $1.1 million, or $(0.03) per share, compared to an adjusted net loss of $1.2 million in the prior year. Adjusted EBITDA was a loss of $(2.1) million, with the adjusted EBITDA margin declining slightly to (3.8)% from (3.4)% in Q2 2024 Adjusted Financial Metrics | Adjusted Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Adjusted Net Loss | $(1.1) million | $(1.2) million | | Adjusted Net Loss per Share | $(0.03) | $(0.03) | | Adjusted EBITDA | $(2.1) million | $(1.9) million | | Adjusted EBITDA Margin | (3.8)% | (3.4)% | [Liquidity and Strategic Transactions](index=3&type=section&id=Liquidity%20and%20Strategic%20Transactions) This section details Clarus's cash flow, liquidity position, and the strategic divestiture of the PIEPS brand [Cash Flow and Capital Expenditures](index=3&type=section&id=Cash%20Flow%20and%20Capital%20Expenditures) For the three months ended June 30, 2025, the company used $(9.4) million in cash from operating activities, a reversal from the $0.8 million generated in the same period last year. Capital expenditures rose to $1.9 million, leading to a total free cash flow outflow of $11.3 million for the quarter Cash Flow Summary (Q2) | Cash Flow Metric (Q2) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Generated by Operating Activities | $(9.4) million | $0.8 million | | Capital Expenditures | $1.9 million | $1.6 million | | Free Cash Flow | $(11.3) million | N/A | [Liquidity Position](index=3&type=section&id=Liquidity%20at%20June%2030%2C%202025%20vs.%20December%2031%2C%202024) The company's liquidity position weakened compared to the end of 2024. Cash and cash equivalents decreased to $28.5 million as of June 30, 2025, from $45.4 million at December 31, 2024. Total debt remained unchanged at $1.9 million Liquidity Snapshot | Liquidity Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $28.5 million | $45.4 million | | Total debt | $1.9 million | $1.9 million | [Completed Sale of PIEPS](index=3&type=section&id=Completed%20Sale%20of%20PIEPS) Subsequent to the quarter's end, on July 11, 2025, Clarus finalized the sale of its PIEPS snow safety brand. The divestiture, which included avalanche transceivers and JetForce airbag systems, was made to a private investment firm for a total price of €7.8 million (approximately $9.1 million) - The sale of the PIEPS brand was completed on **July 11, 2025**[13](index=13&type=chunk) - The total sale price was **€7.8 million**, or approximately **$9.1 million**, including cash and debt[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated balance sheets and statements of loss for Clarus Corporation [Condensed Consolidated Balance Sheets](index=5&type=section&id=CLARUS%20CORPORATION%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Clarus reported total assets of $286.5 million, down from $294.1 million at year-end 2024. The decrease was primarily driven by a reduction in cash. Total liabilities remained stable at $61.4 million, while total stockholders' equity decreased to $225.1 million from $233.1 million Balance Sheet Summary (in thousands) | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$175,927** | **$177,780** | | Cash | $28,474 | $45,359 | | Inventories | $91,527 | $82,278 | | **Total Assets** | **$286,510** | **$294,094** | | **Total Current Liabilities** | **$38,626** | **$36,037** | | **Total Liabilities** | **$61,390** | **$61,001** | | **Total Stockholders' Equity** | **$225,120** | **$233,093** | [Condensed Consolidated Statements of Loss (Quarterly)](index=6&type=section&id=CLARUS%20CORPORATION%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20LOSS) For the three months ended June 30, 2025, the company recorded a net loss of $(8.4) million on total sales of $55.2 million. This compares to a net loss of $(5.5) million on sales of $56.5 million in the prior-year quarter. The operating loss widened to $(10.9) million from $(8.1) million, driven by higher operating expenses including impairment and legal costs Income Statement Summary (Q2, in thousands) | Income Statement Item (Q2, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Sales | $55,247 | $56,484 | | Gross Profit | $19,680 | $20,406 | | Operating Loss | $(10,901) | $(8,137) | | Net Loss | $(8,434) | $(5,493) | | Diluted Loss Per Share | $(0.22) | $(0.14) | [Condensed Consolidated Statements of (Loss) Income (YTD)](index=7&type=section&id=CLARUS%20CORPORATION%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20%28LOSS%29%20INCOME) For the six months ended June 30, 2025, Clarus reported a loss from continuing operations of $(13.7) million on sales of $115.7 million. This represents an increased loss from the $(12.0) million reported in the first half of 2024. The prior year's six-month period included a significant gain from discontinued operations, resulting in a net income of $16.4 million in H1 2024 Income Statement Summary (YTD, in thousands) | Income Statement Item (YTD, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Sales | $115,680 | $125,795 | | Gross Profit | $40,474 | $45,257 | | Operating Loss | $(17,663) | $(14,911) | | Loss from Continuing Operations | $(13,678) | $(11,955) | | Net (Loss) Income | $(13,678) | $16,391 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of Clarus's GAAP financial measures to their corresponding non-GAAP adjusted metrics [Reconciliation of Gross Profit to Adjusted Gross Profit](index=8&type=section&id=RECONCILIATION%20FROM%20GROSS%20PROFIT%20TO%20ADJUSTED%20GROSS%20PROFIT%20AND%20ADJUSTED%20GROSS%20MARGIN) After adjusting for inventory reserves, the company's adjusted gross margin for Q2 2025 was 36.5%, a decrease from 37.4% in Q2 2024. For the six-month period, the adjusted gross margin was 35.5%, down from 37.1% in the prior year. The adjustments in 2025 were for other inventory reserves, while 2024 also included adjustments for PFAS-related reserves Gross Margin Reconciliation (Q2) | Gross Margin Reconciliation (Q2) | 2025 | 2024 | | :--- | :--- | :--- | | Gross Margin (GAAP) | 35.6% | 36.1% | | Adjusted Gross Margin (Non-GAAP) | 36.5% | 37.4% | Gross Margin Reconciliation (YTD) | Gross Margin Reconciliation (YTD) | 2025 | 2024 | | :--- | :--- | :--- | | Gross Margin (GAAP) | 35.0% | 36.0% | | Adjusted Gross Margin (Non-GAAP) | 35.5% | 37.1% | [Reconciliation of Net Loss to Adjusted Net Loss](index=9&type=section&id=RECONCILIATION%20FROM%20NET%20LOSS%20TO%20ADJUSTED%20NET%20LOSS) This section details the adjustments made to the GAAP net loss to arrive at the non-GAAP adjusted net loss. Major adjustments for Q2 2025 include amortization of intangibles, impairment charges, legal costs, and stock-based compensation. The resulting adjusted net loss per share was flat year-over-year for both the quarterly and year-to-date periods [Quarterly Reconciliation of Net Loss](index=9&type=section&id=Quarterly%20Reconciliation%20of%20Net%20Loss) For Q2 2025, the reported net loss of $(8.4) million was adjusted to a non-GAAP net loss of $(1.1) million, or $(0.03) per share. This is consistent with the adjusted net loss of $(1.2) million, or $(0.03) per share, in Q2 2024. Key adjustments included amortization ($2.0M), impairment ($1.6M), and legal costs ($1.6M) Net Loss Reconciliation (Q2) | Net Loss Reconciliation (Q2) | 2025 | 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | $(8.4) million | $(5.5) million | | Adjusted Net Loss (Non-GAAP) | $(1.1) million | $(1.2) million | | Diluted EPS (GAAP) | $(0.22) | $(0.14) | | Adjusted Diluted EPS (Non-GAAP) | $(0.03) | $(0.03) | [Year-to-Date Reconciliation of Net Loss](index=10&type=section&id=Year-to-Date%20Reconciliation%20of%20Net%20Loss) For the six months ended June 30, 2025, the reported loss from continuing operations of $(13.7) million was adjusted to a non-GAAP loss of $(1.7) million, or $(0.04) per share. This is slightly higher than the adjusted loss of $(1.3) million, or $(0.04) per share, in the same period of 2024 Loss from Continuing Operations Reconciliation (YTD) | Loss from Cont. Ops Reconciliation (YTD) | 2025 | 2024 | | :--- | :--- | :--- | | Loss from Cont. Ops (GAAP) | $(13.7) million | $(12.0) million | | Adjusted Loss from Cont. Ops (Non-GAAP) | $(1.7) million | $(1.3) million | | Diluted EPS (GAAP) | $(0.36) | $(0.31) | | Adjusted Diluted EPS (Non-GAAP) | $(0.04) | $(0.04) | [Reconciliation of Operating Loss to Adjusted EBITDA](index=11&type=section&id=RECONCILIATION%20FROM%20OPERATING%20LOSS%20TO%20ADJUSTED%20EBITDA) The company provides a reconciliation from operating loss to adjusted EBITDA, broken down by its Outdoor and Adventure segments. For Q2 2025, the total adjusted EBITDA was a loss of $(2.1) million, and for the first six months of 2025, the loss was $(2.9) million. The Adventure segment showed positive adjusted EBITDA in Q2, while the Outdoor segment posted a small loss [Quarterly Reconciliation of Adjusted EBITDA](index=11&type=section&id=Quarterly%20Reconciliation%20of%20Adjusted%20EBITDA) In Q2 2025, total adjusted EBITDA was a loss of $(2.1) million, slightly larger than the $(1.9) million loss in Q2 2024. The Outdoor segment reported an adjusted EBITDA loss of $(0.2) million, while the Adventure segment generated a positive adjusted EBITDA of $0.3 million. Corporate costs contributed $(2.2) million to the adjusted EBITDA loss Adjusted EBITDA by Segment (Q2 2025, in thousands) | Adjusted EBITDA by Segment (Q2 2025, in thousands) | Outdoor | Adventure | Corporate | Total | | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $(214) | $311 | $(2,193) | $(2,096) | [Year-to-Date Reconciliation of Adjusted EBITDA](index=12&type=section&id=Year-to-Date%20Reconciliation%20of%20Adjusted%20EBITDA) For the six months ended June 30, 2025, total adjusted EBITDA was a loss of $(2.9) million, a significant decline from a positive $0.1 million in the prior-year period. The Outdoor segment contributed $1.5 million in adjusted EBITDA, and the Adventure segment added $0.1 million, which was more than offset by $(4.5) million in corporate costs Adjusted EBITDA by Segment (YTD 2025, in thousands) | Adjusted EBITDA by Segment (YTD 2025, in thousands) | Outdoor | Adventure | Corporate | Total | | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $1,518 | $100 | $(4,475) | $(2,857) |

Core Viewpoint - Clarus Corporation reported a decline in sales and an increase in net loss for the second quarter of 2025, while emphasizing a strategic focus on operational execution and simplification of its product portfolio to drive future growth [3][4][8]. Financial Performance - Total sales for Q2 2025 were $55.2 million, down from $56.5 million in Q2 2024 [4][8]. - Sales in the Outdoor segment increased by 1% to $36.7 million, while the Adventure segment saw an 8% decrease to $18.6 million [4][5]. - Gross margin decreased to 35.6% from 36.1% year-over-year, primarily due to lower volumes and an unfavorable product mix in the Adventure segment [6][8]. - Selling, general and administrative expenses decreased to $26.9 million from $28.1 million, attributed to lower employee-related expenses and marketing costs [7][8]. Net Loss and Adjusted Metrics - The net loss for Q2 2025 was $8.4 million, or $(0.22) per diluted share, compared to a net loss of $5.5 million, or $(0.14) per diluted share in the prior year [8][9]. - Adjusted net loss was $1.1 million, or $(0.03) per diluted share, compared to an adjusted net loss of $1.2 million, or $(0.03) per diluted share in Q2 2024 [10][8]. - Adjusted EBITDA for the quarter was $(2.1) million, with an adjusted EBITDA margin of (3.8)%, compared to $(1.9) million and (3.4)% in the same quarter last year [11][8]. Cash Flow and Liquidity - Net cash used in operating activities was $(9.4) million, compared to net cash generated of $0.8 million in the prior year [12]. - Cash and cash equivalents totaled $28.5 million, down from $45.4 million at the end of 2024 [17]. Strategic Actions - The company completed the divestiture of its PIEPS snow safety brand for approximately $9.1 million, reflecting a focus on simplifying the Black Diamond business [13]. - Management is committed to prioritizing high-return initiatives to improve market responsiveness and product offerings [3].

Core Viewpoint - Clarus Corporation will hold a conference call on July 31, 2025, to discuss its financial results for Q2 2025, which ended on June 30, 2025. The results will be released after market hours on the same day [1]. Company Overview - Clarus Corporation is headquartered in Salt Lake City, Utah, and is a global leader in designing and developing equipment and lifestyle products for outdoor enthusiasts. The company aims to provide safe, effective, and aesthetically pleasing products to enhance outdoor experiences [3]. - The company's products are sold under well-known brands such as Black Diamond®, Rhino-Rack®, MAXTRAX®, and TRED Outdoors®, through various channels including outdoor specialty retailers, online platforms, and original equipment manufacturers [3]. Conference Call Details - The conference call is scheduled for July 31, 2025, at 5:00 pm ET, and will be accessible via a registration link provided in the announcement. The call will also be available for replay on the company's website [2].

Core Viewpoint - Clarus Corporation has completed the sale of PIEPS and JetForce avalanche pack intellectual property for €7.8 million (approximately $9.1 million), indicating a strategic move to simplify its business and strengthen its balance sheet [1][2]. Company Overview - Clarus Corporation is headquartered in Salt Lake City, Utah, and is a global leader in designing and developing equipment and lifestyle products for outdoor enthusiasts [2]. - The company aims to provide safe, simple, effective, and aesthetically pleasing products to enhance outdoor experiences, with a focus on continuous product innovation [2]. Strategic Focus - The divestiture of PIEPS is part of a broader strategy to rationalize product categories and focus on long-term growth opportunities [2].