Clarus Corp. reported earnings recovered smartly in the second quarter ended June 30 due in part to tariff refunds, but sales also topped guidance for the period. Black Diamond delivered improved revenue, margin, and EBITDA, thanks to a focus on full-price selling while Adventure segment sales were down but the segment generated a strong uptick in gross margins.

Sales in the quarter of $56.2 million topped guidance in the range of $51 million and $53 million. Adjusted EBITDA of $7.6 million exceeded guidance calling for a $3 million loss.

“Our second quarter results reflect disciplined execution of our simplification strategy,” said Warren Kanders, Clarus’ executive chairman. “The IEEPA tariff refund we recognized during the quarter lifted earnings and gross margin, but our underlying performance was solid and we continue to see encouraging signs of progress across both segments. At Outdoor, where second quarter revenue, margin, and EBITDA all increased year-over-year, we believe that the team’s hard work concentrating inventory on our highest-volume, highest-margin products is paying off. Our big three Outdoor categories of Mountain, Climb, and Apparel drove 95 percent of total segment revenues, a testament to the deliberate actions we have taken to prioritize Black Diamond’s best and most profitable styles. In the Adventure segment, we continue to carefully balance targeted investments with ongoing cost and productivity initiatives. Notably, Adventure’s second quarter gross margin improved 420 basis points year-over-year driven by price growth and better segmentation across our retailer base.”

Kanders added, “Despite geopolitical and macroeconomic headwinds, we continue to expect full-year revenue to fall within our previously provided guidance range. Outdoor has performed well in a challenging market, and we remain confident that Black Diamond is positioned to capitalize on the growth opportunities ahead. With cleaner inventory, less discounting, and a shift toward a full-price premium model, we are well positioned to drive improved profitability. At Adventure, we have improved the organizational shape to capture more margin as the business re-scales. During the second quarter, we completed the bolt-on acquisition of ONWRD Supply Co. brand and related assets, enhancing our portfolio mix with complementary, high margin in-vehicle accessories. Overall, we remain committed to unlocking the intrinsic value of both segments and to maximizing long-term value for our shareholders.”

Second Quarter 2026 Financial Results

  • On a consolidated basis, sales in the second quarter were $56.2 million compared to $55.2 million in the same year‐ago quarter, up 1.6 percent. Sales in the Outdoor segment increased 8.5 percent to $39.8 million, compared to $36.7 million in the year-ago quarter. Sales in the Adventure segment decreased 11.9 percent to $16.4 million, compared to $18.6 million in the year-ago quarter.
  • Sales in the Outdoor segment increased due to increases in global wholesale, independent global distributor, and global direct-to-consumer revenues, partially offset by lower PIEPS revenue due to the sale of PIEPS in July 2025. Sales in the Adventure segment decreased due to an unfavorable wholesale market in Australia and North America for Rhino-Rack and Maxtrax, partially offset by favorable FX rates.
  • Gross margin in the second quarter was 48.9 percent of sales compared to 35.6 percent in the year‐ago quarter. The gross margin increase was primarily attributable to receiving $6.1 million of IEEPA tariff refunds, higher volumes and a favorable product mix at the Outdoor segment, and a favorable product mix at the Adventure segment, which was partially offset by lower volume at the Adventure segment.
  • Selling, general and administrative expenses in the second quarter were $24.3 million compared to $26.9 million in the same year‐ago quarter. Second quarter 2026 expenses reflect lower marketing costs, depreciation, amortization and other expense reduction initiatives across both segments to manage costs and the removal of PIEPS due to its sale during 2025.
  • Net income in the second quarter of 2026 was $4.7 million with a net income margin of 8.4 percent, or 12 cents per diluted share, compared to net loss of $8.4 million with a net loss margin of negative 15.3 percent, or 22 cents per diluted share, in the year-ago quarter.
  • Adjusted net income in the second quarter of 2026 was $6.8 million, or 18 cents per diluted share, compared to adjusted net loss of $3.1 million, or 8 cents per diluted share, in the year-ago quarter. Adjusted net income (loss) excludes amortization of intangibles, impairment of indefinite-lived intangible assets, restructuring charges, transaction costs, contingent consideration benefit, and stock-based compensation.
  • Adjusted EBITDA in the second quarter was $7.6 million, or an Adjusted EBITDA margin of 13.6 percent, compared to Adjusted EBITDA of negative $4.4 million, or an adjusted EBITDA margin of negative 8.0 percent, in the comparative year‐ago quarter.
  • Net cash provided by operating activities for the three months ended June 30, 2026, was $1.7 million compared to net cash used in operating activities of negative $9.4 million in the prior year quarter. Capital expenditures in the second quarter of 2026 were $1.1 million compared to $1.9 million in the prior year quarter. Free cash flow for the second quarter of 2026 was $0.6 million compared to an outflow of $11.3 million in the prior year quarter.

Liquidity at June 30, 2026 vs. December 31, 2025

  • Cash and cash equivalents totaled $28.9 million compared to $36.7 million.
  • The balance sheet was debt free at the end of both periods.

Stock Repurchase Program
During the second quarter, the company repurchased 153,331 shares of its common stock for approximately $0.4 million, or $2.92 per share, leaving approximately $42.4 million remaining under its $50 million stock repurchase program.

Acquisition of ONWRD
In June 2026, Rhino-Rack USA completed the acquisition of certain assets and liabilities constituting ONWRD Supply Co. (ONWRD), an outdoor inspired accessories brand that makes modular storage and organization systems for cars, trucks, vans, and SUVs. ONWRD’s products feature customizable panels, headrest attachments, and pouches designed to keep gear secure during off-road or daily travel. The ONWRD business has been integrated into Rhino-Rack USA’s existing operations in Colorado.

Strategic Review
The company previously announced that its Board of Directors initiated a comprehensive review of strategic alternatives to enhance shareholder value. The review includes a range of potential strategic alternatives, including, among other things, the sale of all or part of the business or other strategic or financial transactions involving the company. The review has no deadline or definitive timetable and there can be no assurance that the review will result in any transaction or other strategic outcome. The company does not intend to disclose further developments regarding the review unless and until it determines that further disclosure is appropriate or required. Clarus has retained Jefferies LLC as its financial advisor.

2026 Outlook
The company continues to expect fiscal year 2026 sales to range between $245 million and $255 million. It now expects adjusted EBITDA to range between approximately $12 million and $13 million, or an adjusted EBITDA margin of 5.0 percent at the mid-point of the revenue and adjusted EBITDA ranges. Previously, adjusted EBITDA were expected in the range of $3 million and $5 million.

Capital expenditures are expected to remain between $6 million and $7 million, consistent with the company’s prior outlook, and free cash flow is now expected to be $6 million for the full year 2026 compared to flat previously.

For the third quarter of 2026, sales are expected to range between $66 million and $68 million, and adjusted EBITDA is expected to be approximately $3 million.

Clarus has not provided net income or net cash provided by operating activities guidance due to the inherent difficulty of forecasting certain expenses, gains, changes in working capital and other items affecting those measures. Accordingly, the company does not provide reconciliations of adjusted EBITDA, adjusted EBITDA margin or free cash flow guidance to their most directly comparable GAAP measures for fiscal year 2026.

Image courtesy Black Diamond