Clarus Corporation, parent of the Black Diamond, MaxTrax, Rhino-Rack, and RockyMounts brands, reported that Q2 sales dipped 2.2 percent year-over-year to $55.2 million, compared to $56.5 million in the 2024 second quarter.

Sales in the Outdoor segment, which is comprised mainly of the Black Diamond business, increased 1 percent to $36.7 million, compared to $36.2 million in the year-ago quarter. The gain was reportedly due to a shift in timing for IGD revenues into the second quarter, partially offset by decreases in the direct-to-consumer (DTC) channels in both North America and Europe.

Sales in the Adventure segment, which includes the Rhino-Rack, MaxTrax and RockyMounts businesses, decreased 8 percent to $18.6 million, compared to $20.3 million in the year-ago quarter. Lower sales in the Adventure segment were said to reflect reduced demand from global OEM customers and a challenging wholesale market in Australia for Rhino-Rack, partially offset by increased revenue from the acquisition of RockyMounts and higher promotional sales in North America.

Consolidated Domestic U.S. sales grew 7.8 percent to $24.7 million, while International sales fell 9.0 percent to $30.5 million.

Profitability and Expenses
Gross margin in the second quarter was 35.6 percent of sales, compared to 36.1 percent in the year‐ago quarter. The 50 basis-point decrease in gross margin was said to be primarily due to lower volumes and unfavorable product mix at the Adventure segment. Specifically, the unfavorable product mix at Adventure was reportedly due to promotional sales efforts in North America. This combined with lower wholesale volume at Rhino-Rack in Australia drove the decline in gross margin in the quarter. These decreases were partially offset by higher volumes and a favorable product mix at the Outdoor segment.

Selling, general and administrative (SG&A) expenses in the second quarter were $26.9 million in Q2, compared to $28.1 million in the 2024 comparative quarter. The decrease was said to be primarily due to lower employee-related expenses and marketing costs across the company, as well as other expense reduction initiatives across both segments and at Corporate to manage costs.

The company’s net loss in the second quarter was $8.4 million, or a loss of 22 cents per diluted share, compared to a net loss of $5.5 million, or a loss of 14 cents per diluted share, in the year-ago quarter.

Adjusted net loss in the second quarter of 2025 was $1.1 million, or an adjusted net loss of 3 cents per diluted share, compared to Adjusted net loss of $1.2 million, or a loss of 3 cents per diluted share, in the 2024 quarter. The Adjusted net loss excludes legal cost and regulatory matters expenses, inventory reserves, contingent consideration benefits, restructuring charges and transaction costs, as well as non-cash items for intangible amortization, impairment of indefinite-lived intangible assets, and stock-based compensation.

Adjusted EBITDA from continuing operations in the second quarter was negative $2.1 million, or an Adjusted EBITDA margin of negative 3.8 percent, compared to Adjusted EBITDA from continuing operations of negative $1.9 million, or an Adjusted EBITDA margin of negative 3.4 percent, in the 2024 Q2 period.

Net cash used in operating activities for the three months ended June 30, 2025, was negative $9.4 million compared to net cash generated of $0.8 million in the prior-year second quarter. Capital expenditures in the 2025 second quarter were $1.9 million, compared to $1.6 million in the prior-year second quarter. Free cash flow for the second quarter of 2025 was an outflow of $11.3 million.

Balance Sheet Summary
Cash and cash equivalents totaled $28.5 million at June 30, 2025, compared to $45.4 million at June 30, 2024.

Total debt was $1.9 million (related to the RockyMounts acquisition) at quarter-end, compared to $1.9 million at the end of the year-ago quarter.

Completed Sale of Pieps
On July 11, 2025, the company completed the previously announced sale of its Pieps snow safety brand, including its portfolio of avalanche safety products such as avalanche transceivers and JetForce avalanche airbag systems, to a private investment firm for a total sales price of €7.8 million (~ $9.1 million) including cash and debt.

Image courtesy Black Diamond/Clarus Corporation