Short answer
Clarus Corp (CLAR) filed its fiscal 2025 10-K annual report with the SEC on Mar 5, 2026. It reported revenue of $250M (−5.2% year over year) and net income of −$47M.
- Top risk flagged: Regulatory/legal risk: U.S. Consumer Product Safety Commission investigation and proposed civil penalties totaling $25.1M for Black Diamond avalanche transceivers reporting violations under Consumer Product Safety Act
FY2025 key financial metrics · XBRL
- Revenue
- $250M
- −5.2% YoY
- Net income
- −$47M
- +11.0% YoY
- Operating margin
- -23.8%
- +2.8 pp YoY
- Gross margin
- 33.1%
- −1.9 pp YoY
- EPS (diluted)
- −$1.21
- +11.7% YoY
- ROE
- -23.7%
- −1.3 pp YoY
- Operating cash flow
- −$5M
- +35.0% YoY
Source: XBRL data from the Clarus Corp (CLAR) FY2025 10-K on SEC EDGAR. USD.
Clarus Corp FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Global designer, manufacturer, and distributor of outdoor and adventure equipment across iconic brands like Black Diamond and Rhino-Rack
- New segment emphasis: Completed acquisition of RockyMounts in Dec 2024 and divested Precision Sport segment and PIEPS asset by mid-2025
- Strategic shift: Expanded Adventure segment with multiple Australia-based acquisitions, exiting Precision Sport to focus on core outdoor lifestyle markets
- Notable metric: Over 225 product awards won by Black Diamond alone in 2025, reflecting strong innovation recognition
- Unique fact: Debt-free capital structure as of Dec 31, 2025, enabling capacity for future growth investments
Management Discussion & Analysis
- Operating cash use $4.7M in 2025 vs $7.3M in 2024; free cash flow negative $9.9M in 2025 vs negative $14M in 2024
- Investing cash inflow $2.8M in 2025 vs $165.2M in 2024; 2024 includes Precision Sport segment sale proceeds
- Financing cash outflow $5.9M in 2025 vs $123.2M in 2024; 2024 includes debt repayment after segment sale
- Cash and restricted cash $38.2M at 2025 year-end vs $45.4M at 2024 year-end
Risk Factors
- Regulatory/legal risk: U.S. Consumer Product Safety Commission investigation and proposed civil penalties totaling $25.1M for Black Diamond avalanche transceivers reporting violations under Consumer Product Safety Act
- Geopolitical/macro risk: Revenue exposure $144.3M international sales in 2025, with significant operations and assets in Australia and Austria facing diverse tax rates and regulatory environments
- Operational/supply chain risk: Impairment charges related to Adventure segment intangible assets totaling $26.1M in 2025 indicate potential asset obsolescence or underperformance risks
- Competitive/market disruption risk: Outdoor segment faces pressure from innovative product demands in technical outdoor equipment, competing with established brands like Black Diamond Equipment
- Financial/structural risk: Significant valuation allowance increase of $5.97M in deferred tax assets in 2025, reflecting uncertainty in future taxable income realization and financial flexibility
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