Clarus Q4 Earnings Lag Estimates, Revenues Beat, Stock Up

Core Viewpoint - Clarus Corporation (CLAR) reported mixed fourth-quarter 2024 results, with adjusted earnings missing estimates while revenues exceeded expectations, although both metrics declined year-over-year [1][4]. Financial Performance - Adjusted loss per share was 8 cents, compared to a consensus estimate of 7 cents per share, and a loss of 7 cents per share in the prior year [4]. - Revenues reached $71.4 million, surpassing the consensus mark of $69.3 million, but decreased by 6.7% year-over-year due to challenges in the Adventure segment [5]. - Outdoor segment sales increased by 2% year-over-year to $51.1 million, while Adventure segment sales fell by 22.9% to $20.3 million [6]. Operational Highlights - Gross margin improved to 33.4%, up 450 basis points from the previous year, and adjusted EBITDA was $4.4 million, compared to $1.6 million a year ago [7]. - Adjusted EBITDA margin expanded by 400 basis points year-over-year to 6.1% [7]. Balance Sheet - As of December 31, 2024, cash and cash equivalents were $45.4 million, up from $11.3 million a year earlier, while total debt decreased significantly to $1.9 million from $119.8 million [8]. 2025 Outlook - The company expects sales in the range of $250-$260 million for 2025, with adjusted EBITDA projected between $14-$16 million and an adjusted EBITDA margin of 5.9% at the midpoint [9]. - Capital expenditures are forecasted to be between $4 million and $5 million [9].