Clarus (CLAR) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales grew 1.6% year-over-year to $56.2M, driven by 8.5% Outdoor segment growth and favorable FX, while Adventure segment sales declined 11.9%.

• Gross margin improved to 48.9% from 35.6%, primarily due to a $6.1M IEEPA tariff refund and favorable product mix.

• Net income was $4.7M (8.4% margin), reversing a net loss of $8.4M in Q2 2025, reflecting improved gross margins and lower operating expenses.

• Adjusted EBITDA reached $7.6M (13.6% margin), up from a loss of $4.4M (-8.0% margin) year-over-year.

• Completed the acquisition of ONWRD Supply Co. and repurchased 153,331 shares for $0.4M.

Financial highlights

• Q2 2026 revenue: $56.2M (+1.6% YoY); Outdoor segment up 8.5% to $39.8M, Adventure down 11.9% to $16.4M.

• Gross margin: 48.9% (up 1,330 bps), including a $6.1M tariff refund; adjusted EBITDA: $7.6M (13.6% margin).

• Net income: $4.7M (EPS $0.12); adjusted net income: $6.8M ($0.18/share).

• Free cash flow: $0.6M, compared to an $11.3M outflow prior year.

• Cash and cash equivalents: $28.9M; no debt at quarter-end.

Outlook and guidance

• FY2026 sales expected between $245M–$255M; adjusted EBITDA guidance raised to $12M–$13M (5% margin), including $6.1M tariff refund.

• Q3 2026 sales expected between $66M–$68M; adjusted EBITDA around $3M.

• Capex guidance for 2026: $6M–$7M; free cash flow expected at $6M.

• Legal expenses to decrease in 2H26 due to resolution of CPSC/DoJ matter.