Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus
(NASDAQ:CLAR)
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Rating:51Neutral
Price Target:
$3.00
▲(2.39% Upside)
Action:Reiterated
Date:06/02/26
The score is held back primarily by ongoing losses and renewed cash burn, reinforced by reduced 2026 guidance and near-term EBITDA losses. Offsetting factors include a de-risked, debt-free balance sheet, improving gross margins, and moderately positive technical momentum.
Positive Factors
Debt-free balance sheet
A zero-debt capital structure with nearly $30M in cash materially increases Clarus's strategic flexibility over the next several months. It supports working capital needs, targeted product investments, and absorbing near-term losses without immediate financing, lowering solvency risk while management executes recovery plans.
Negative Factors
Negative cash flow and free cash flow
A return to persistent cash burn reduces runway and forces reliance on cash reserves or cost-cutting to sustain operations. Negative operating and free cash flow constrain reinvestment, raise liquidity risk if losses persist, and limit the company's ability to fund inventory and marketing without eroding balance-sheet flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt capital structure with nearly $30M in cash materially increases Clarus's strategic flexibility over the next several months. It supports working capital needs, targeted product investments, and absorbing near-term losses without immediate financing, lowering solvency risk while management executes recovery plans.
Read all positive factors
Clarus (CLAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.94M
Dividend Yield2.93%
Average Volume (3M)141.12K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-0.50%
EPS Growth44.02%
CountryUS
Employees470
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-1.16
Shares Outstanding38,441,486
10 Day Avg. Volume185,971
30 Day Avg. Volume141,122
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.65
Price to Sales (P/S)0.51
P/FCF Ratio-12.98
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit1.07
Enterprise Value/Ebitda-5.31
Forecast
1Y Price Target
$3.63Price Target Upside24.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.22
Revenue Forecast (FY)$251.39M
Clarus Business Overview & Revenue Model
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...
How the Company Makes Money
Clarus makes money primarily by selling branded outdoor products through wholesale and direct-to-consumer channels. Revenue is generated from (1) wholesale sales to specialty outdoor retailers, distributors, and other retail partners who purchase ...
Clarus Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong execution in the Outdoor segment, meaningful gross margin expansion, product traction, and a debt-free balance sheet are offset by material near-term headwinds in the Adventure business (primarily Australia), a downward revision to full-year revenue and EBITDA guidance, higher legal/regulatory costs now driving adjusted EBITDA lower, negative Q2 EBITDA guidance, and working capital/ cash-flow pressure. Management is pursuing cost controls, price capture, and a strategic review to unlock shareholder value, but geopolitical and consumer-demand risks create meaningful uncertainty for the remainder of 2026.Positive Updates
Consolidated Gross Margin Expansion
Consolidated gross margin widened to 36.8% in Q1 2026 from 34.4% a year ago, an improvement of ~240 basis points driven by favorable product mix and higher volumes across both segments.
Negative Updates
Full-Year Guidance Reduction
Full-year 2026 sales guidance was lowered to $245M–$255M (midpoint $250M). The midpoint decline of $10M is entirely at Adventure (now expected ~ $70M vs prior ~$80M). Adjusted EBITDA guidance cut from $9M–$11M to $3M–$5M (midpoint decline ~$6M).
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Gross Margin Expansion
Consolidated gross margin widened to 36.8% in Q1 2026 from 34.4% a year ago, an improvement of ~240 basis points driven by favorable product mix and higher volumes across both segments.
Read all positive updates
Company Guidance
Clarus revised its 2026 outlook to consolidated sales of $245–$255 million (new midpoint $250M vs prior midpoint $260M) and adjusted EBITDA of $3–$5 million (prior $9–$11M), implying an adjusted EBIT margin of ~1.6% at the midpoint; the $10M midpoint revenue reduction is entirely in Adventure (now expected ~ $70M FY vs prior ~$80M) while Outdoor remains guided at ~$180M. Near‑term guidance calls for Q2 sales of $51–$53M and Q2 adjusted EBITDA of about a $3M loss. Management now assumes roughly $1M of legal/CPSC/DOJ costs per remaining quarter (≈$3M total), which, together with the Adventure top‑line hit, explains the $6M midpoint adjusted‑EBITDA decline ($3M from Adventure, $3M from legal inclusion). Recent quarterly metrics cited on the call include Q1 consolidated sales $61.9M, consolidated gross margin 36.8% (up 240 bps YoY), Outdoor GM 36.0% (+220 bps), Adventure GM 38.8% (+260 bps), Q1 adjusted EBITDA -$1.1M (would have been +$0.3M excluding the change in legal add‑backs), segment adj. EBITDA: Outdoor $1.4M and Adventure $0.2M, SG&A $26.6M, free cash flow Q1 outflow $5.7M, cash $29.8M, debt $0, inventory $61.9M (up 10% YoY), and an estimated tariff IEEPA credit of ~$6.2M subject to approval; key upside/downside drivers remain tariff relief vs. rising input/freight costs (and the risk that a prolonged Iran war could force price increases beginning with July shipments).Clarus Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 252.46M | 250.44M | 264.31M | 286.02M | 315.25M | 265.97M |
| Gross Profit | 82.32M | 82.98M | 92.62M | 97.51M | 109.95M | 87.87M |
| EBITDA | -16.56M | -14.50M | -9.35M | 1.49M | 12.09M | 13.03M |
| Net Income | -44.61M | -46.56M | -52.29M | -10.15M | -69.78M | 26.09M |
Balance Sheet | ||||||
| Total Assets | 243.26M | 249.03M | 294.09M | 495.34M | 518.14M | 631.83M |
| Cash, Cash Equivalents and Short-Term Investments | 29.81M | 36.69M | 45.36M | 11.32M | 11.98M | 19.46M |
| Total Debt | 0.00 | 12.29M | 16.65M | 136.00M | 154.65M | 159.47M |
| Total Liabilities | 49.61M | 52.63M | 61.00M | 203.22M | 226.04M | 261.66M |
| Stockholders Equity | 193.66M | 196.39M | 233.09M | 292.12M | 292.11M | 370.17M |
Cash Flow | ||||||
| Free Cash Flow | -12.35M | -9.91M | -14.04M | 25.96M | 6.36M | -17.69M |
| Operating Cash Flow | -6.81M | -4.75M | -7.30M | 31.92M | 14.61M | -304.00K |
| Investing Cash Flow | 2.42M | 2.77M | 165.16M | -11.42M | -7.75M | -178.14M |
| Financing Cash Flow | -5.87M | -5.88M | -123.24M | -20.25M | -13.86M | 180.68M |
Clarus Technical Analysis
Negative
2.93
Price Trends
2.78
Positive
3.02
Negative
3.22
Negative
Market Momentum
0.05
Positive
49.25
Neutral
21.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Negative. The current price of 2.93 is above the 20-day moving average (MA) of 2.89, above the 50-day MA of 2.78, and below the 200-day MA of 3.22, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLAR.
Clarus Risk Analysis
Clarus disclosed 52 risk factors in its most recent earnings report. Clarus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clarus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $244.35M | 16.30 | 8.97% | 4.71% | -3.69% | 12.42% | |
67 Neutral | $462.38M | -31.32 | -3.57% | 3.22% | 17.59% | 68.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $5.14B | 31.22 | 20.87% | 1.15% | 6.34% | -21.30% | |
51 Neutral | $109.94M | -2.46 | -21.22% | 2.93% | -0.50% | 44.02% | |
47 Neutral | $120.92M | -12.70 | -5.76% | ― | -0.61% | -126.06% |
* Consumer Cyclical Sector Average
CLAR
Clarus
2.86
-0.40
-12.27%
ESCA
Escalade
18.31
3.81
26.29%
GOLF
Acushnet Holdings
88.99
19.11
27.35%
JOUT
Johnson Outdoors
45.85
19.35
73.00%
AOUT
American Outdoor Brands
9.94
-1.95
-16.40%
Clarus Corporate Events
Executive/Board ChangesShareholder Meetings
Clarus Shareholders Approve Directors, Pay and Auditor Slate
Positive
Jun 1, 2026
At its recent annual meeting, Clarus reported that 32,544,653 of 38,441,486 outstanding common shares were present or represented by proxy, reflecting approximately 84.66% shareholder participation in the vote. Stockholders elected five directors&...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.