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].