Clarus Corporation reported second-quarter 2025 sales of $55.2 million, a decrease from $56.5 million in the prior year's quarter. Outdoor segment sales increased 1% to $36.7 million, while Adventure segment sales decreased 8% to $18.6 million due to reduced global OEM demand and a challenging Australian wholesale market.
Gross margin for the quarter was 35.6%, a slight decrease from 36.1% in the prior year, primarily due to lower volumes and an unfavorable product mix in the Adventure segment. The company reported a net loss of $8.4 million, or $(0.22) per diluted share, widening from a $5.5 million loss in the year-ago quarter.
Adjusted EBITDA from continuing operations was a negative $(2.1) million, compared to a negative $(1.9) million in the same period last year. Net cash used in operating activities was $(9.4) million, a significant outflow compared to $0.8 million generated in the prior year quarter.
Management acknowledged a challenging consumer demand outlook for the remainder of the year and additional uncertainty from tariffs. The company stated it continues to evaluate opportunities for further simplification and cost reductions across both segments.
The completion of the PIEPS snow safety brand divestiture on July 11, 2025, for approximately $9.1 million, was highlighted as a move to simplify the Black Diamond business and rationalize product categories.
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