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1. Company Snapshot

1.a. Company Description

Clarus Corporation develops, manufactures, and distributes outdoor equipment and lifestyle products focusing on the outdoor and consumer markets in the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America.Its Outdoor segment offers activity-based apparel, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; skincare and other products; and skis, ski poles, ski skins, and snow safety products, such as avalanche airbag systems, avalanche transceivers, shovels, and probes.This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment, PIEPS, and SKINourishment brands.


The company's Precision Sport segment manufactures bullets and ammunition products for precision target shooting, hunting, and military and law enforcement purposes under the Sierra and Barnes brands.The company sells its products to mountain, rock, ice, and gym climbers; and winter outdoor enthusiasts, trail runners, backpackers, competitive shooters, hunters, and outdoor consumers.Its Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand.


It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites.The company was incorporated in 1991 and is headquartered in Salt Lake City, Utah.

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1.b. Last Insights on CLAR

The recent 3-month performance of Clarus Corporation was negatively impacted by challenges in its Adventure segment, which hindered its fourth-quarter earnings. Despite beating revenue estimates, the company's Q4 loss of $0.08 per share versus the Zacks Consensus Estimate of $0.07 was a disappointment. The Adventure segment's struggles were partially offset by growth in the Outdoor segment, but overall, the company's results were marred by operational inefficiencies and declining demand in certain product categories.

1.c. Company Highlights

2. Clarus Corporation's Q3 2025 Earnings: A Mixed Bag

Clarus Corporation reported net sales of $69.3 million for the third quarter of 2025, a 3% increase from the same period last year, driven by strong outdoor demand in North American wholesale and success with new adventure customers in Australia. The company's quarterly adjusted EBITDA increased by 15%. The reported EPS of $0.05 was slightly below estimates of $0.06. The Outdoor segment delivered solid results, with revenue up 0.7% and adjusted EBITDA up 9% year-over-year, driven by a 29% sales growth in the revamped Black Diamond apparel line. The consolidated gross margin rate was 35.1%, compared to 35% in the prior year, impacted by higher sales volumes at Adventure and a favorable product mix at Outdoor. SG&A expenses decreased 6% to $26.2 million, driven by lower employee-related costs and expense reduction initiatives.

Publication Date: Nov -24

📋 Highlights
  • Net Sales Growth:: Clarus Corporation reported $69.3 million in net sales for Q3 2025, a 3% increase from the same period last year, driven by strong outdoor demand in North America and new adventure customers in Australia.
  • Adjusted EBITDA Increase:: Quarterly adjusted EBITDA rose 15%, reflecting improved operational efficiency and higher sales volumes, particularly in the Outdoor segment.
  • Outdoor Segment Performance:: The Outdoor segment saw 0.7% revenue growth and 9% adjusted EBITDA growth, supported by a 29% increase in the Black Diamond apparel line and a 320-basis-point improvement in gross margin.
  • Adventure Segment Growth:: The Adventure segment delivered 15.9% year-over-year revenue growth, with adjusted EBITDA rising to $349,000, driven by higher sales volumes and favorable product mix.
  • Cost Management:: SG&A expenses decreased 6% to $26.2 million, with $1.1 million in annualized fixed cost reductions, and the company anticipates offsetting 70% of the tariff impact in 2026 through strategic initiatives.

Segment Performance

The Outdoor segment reported revenue of $67.1 million, a 1% decrease from the prior year, but was up 1% excluding the PIEPS business sold in July. The Adventure segment reported 15.9% year-over-year growth, with adjusted EBITDA of $349,000, up $100,000 from the prior year. The company's management stated that "revenue for October exceeded the company's forecast for both segments," indicating a positive momentum heading into the fourth quarter.

Cash Flow and Balance Sheet

The company used $7.0 million of free cash flow in the quarter and ended with $29.5 million in cash and cash equivalents. Total debt was $2 million, related to the RockyMounts acquisition, which will be paid in December 2025. The company expects to generate free cash flow in the fourth quarter and have a consolidated cash balance of $35-40 million by year-end.

Valuation and Outlook

With a P/S Ratio of 0.5 and an EV/EBITDA of -7.78, the market appears to be pricing in a challenging environment for Clarus Corporation. Analysts estimate next year's revenue growth at 3.9%. Given the company's commitment to a prudent approach to capital allocation and its focus on driving profitable top-line growth, it remains to be seen whether Clarus Corporation can meet these expectations and deliver sustainable value for shareholders.

3. NewsRoom

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Clarus Corporation (CLAR) Q3 2025 Earnings Call Transcript

Nov -07

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Clarus Sets Third Quarter 2025 Conference Call for Thursday, November 6, 2025, at 5:00 p.m. ET

Oct -23

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Is the Options Market Predicting a Spike in Clarus Stock?

Sep -26

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Clarus: DTC Worrying Bellwether For Consumer Response To Price Hikes

Aug -29

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Statement from TRREB, Cornerstone, OREB, OnePoint, and CLAR on Ford Government Review of RECO

Aug -29

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Clarus (CLAR) Q2 Loss Beats Estimates

Aug -01

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Clarus Corporation (CLAR) Q2 2025 Earnings Call Transcript

Aug -01

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Clarus Reports Second Quarter 2025 Results

Jul -31

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.15%)

6. Segments

Outdoor

Expected Growth: 8%

Outdoor segment from Clarus Corporation, with 8% growth, driven by increasing outdoor recreation participation, growing demand for camping and hiking gear, and rising popularity of eco-tourism. Additionally, innovative product offerings, strategic acquisitions, and expanding e-commerce presence contribute to the segment's growth.

Adventure

Expected Growth: 12%

The 12% growth of Adventure from Clarus Corporation is driven by increasing outdoor recreation participation, rising demand for experiential travel, and growing popularity of adventure sports. Additionally, strategic acquisitions, expansion into new markets, and innovative product offerings have contributed to the segment's growth.

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8. Clarus Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Clarus Corporation is medium due to the presence of alternative products in the market, but the company's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Clarus Corporation due to the company's strong market position and limited availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Clarus Corporation due to the presence of multiple suppliers, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high for Clarus Corporation due to the attractiveness of the industry and the relatively low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high for Clarus Corporation due to the presence of several established competitors and the high stakes of competition in the industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.77%
Debt Cost 3.95%
Equity Weight 68.23%
Equity Cost 8.44%
WACC 7.01%
Leverage 46.56%

11. Quality Control: Clarus Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Johnson Outdoors

A-Score: 5.4/10

Value: 8.7

Growth: 1.9

Quality: 3.3

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Clarus

A-Score: 4.2/10

Value: 9.6

Growth: 1.3

Quality: 4.4

Yield: 4.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

Stock-Card
JAKKS Pacific

A-Score: 4.1/10

Value: 5.9

Growth: 4.4

Quality: 4.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Xponential Fitness

A-Score: 3.7/10

Value: 8.5

Growth: 5.7

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

Stock-Card
Inspirato

A-Score: 3.3/10

Value: 9.8

Growth: 2.6

Quality: 5.5

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

Stock-Card
F45 Training

A-Score: 3.1/10

Value: 10.0

Growth: 3.7

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.56$

Current Price

3.56$

Potential

-0.00%

Expected Cash-Flows