Clarus Reports Second Quarter 2026 Results

Grew Quarterly Sales at Outdoor by 8.5%

Increased Apparel Sales in Outdoor Segment for Fifth Consecutive Quarter

Repurchased 153,331 Shares of Common Stock for Approximately $0.4 Million

Jefferies LLC Continues to Assist the Company with Evaluating Strategic Alternatives

SALT LAKE CITY, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a global company focused on the outdoor enthusiast markets, reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Financial Summary vs. Same Year‐Ago Quarter

• Sales of $56.2 million compared to $55.2 million.
• The Company received a refund of approximately $6.1 million related to previously paid International Emergency Economic Powers Act (“IEEPA”) tariffs, which was recorded as an offset to cost of goods sold.
• Gross margin was 48.9% compared to 35.6%. Second quarter 2026 gross margin includes a benefit of approximately 1,090 basis points from the recovery of IEEPA tariffs.
• Net income of $4.7 million with a net income margin of 8.4%, or $0.12 per diluted share, compared to net loss of $8.4 million with a net loss margin of (15.3)%, or $(0.22) per diluted share.
• Adjusted net income of $6.8 million, or $0.18 per diluted share, compared to adjusted net loss of $(3.1) million, or $(0.08) per diluted share.
• Adjusted EBITDA of $7.6 million with an adjusted EBITDA margin of 13.6%, compared to Adjusted EBITDA loss of $(4.4) million with an adjusted EBITDA margin of (8.0)%.
  

Management Commentary
“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% 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.”

Mr. 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%. Sales in the Outdoor segment increased 8.5% to $39.8 million, compared to $36.7 million in the year-ago quarter. Sales in the Adventure segment decreased 11.9% 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.

Gross margin in the second quarter was 48.9% compared to 35.6% 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%, or $0.12 per diluted share, compared to net loss of $(8.4) million with a net loss margin of (15.3)%, or $(0.22) per diluted share, in the year-ago quarter.

Adjusted net income in the second quarter of 2026 was $6.8 million, or $0.18 per diluted share, compared to adjusted net loss of $(3.1) million, or $(0.08) 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%, compared to adjusted EBITDA of $(4.4) million, or an adjusted EBITDA margin of (8.0)%, in the same 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 $(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 and now expects adjusted EBITDA to range between approximately $12 million and $13 million, or an adjusted EBITDA margin of 5.0% at the mid-point of the revenue and adjusted EBITDA ranges. 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. 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.

Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2026 results.

Date: Thursday, August 6, 2026
Time: 5:00 pm ET
Registration Link: https://register-conf.media-server.com/register/BI19da625963174778be074ad27b47b34c

To access the call by phone, please register via the live call registration link above and you will be provided with dial-in instructions and details. The conference call will be broadcast live and available for replay here and on the Company’s website at www.claruscorp.com.

About Clarus Corporation
Headquartered in Salt Lake City, Utah, Clarus Corporation is a global leader in the design and development of best-in-class equipment and lifestyle products for outdoor enthusiasts. Driven by our rich history of engineering and innovation, our objective is to provide safe, simple, effective and beautiful products so that our customers can maximize their outdoor pursuits and adventures. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, Rhino-Rack®, MAXTRAX®, RockyMounts®, and Onwrd® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers.

Use of Non‐GAAP Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release contains the non-GAAP measures: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted net income (loss) and related earnings (loss) per diluted share, (iii) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, and (iv) free cash flow (defined as net cash provided by operating activities less capital expenditures). The Company believes that the presentation of certain non-GAAP measures, i.e.: (i) adjusted gross margin and adjusted gross profit, (ii) adjusted net income (loss) and related earnings (loss) per diluted share, (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measures adjusted EBITDA and/or adjusted EBITDA margin for the fiscal year 2026 to net income for the fiscal year 2026, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not adjusted EBITDA and/or adjusted EBITDA margin. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.

Forward-Looking Statements
Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this press release, include, but are not limited to, risks and uncertainties related to the Company’s review of strategic alternatives, including the timing and outcome of the review, whether the review results in any transaction or other strategic outcome, whether and when the Company provides further updates, and the potential impact of the review on the Company’s business and operations, as well as those risks and uncertainties more fully described from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward- looking statements to reflect events or circumstances after the date of this press release.

Company Contact:
Michael J. Yates
Chief Financial Officer
mike.yates@claruscorp.com

Investor Relations:
The IGB Group
Leon Berman / Matt Berkowitz
Tel 1-212-477-8438 / 1-212-227-7098
lberman@igbir.com / mberkowitz@igbir.com

CLARUS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share amounts)
	June 30, 2026				December 31, 2025
Assets
Current assets
Cash	$	28,925			$	36,691
Accounts receivable, less allowance for
credit losses of $1,269 and $1,121		43,119				44,839
Inventories		92,008				83,028
Prepaid and other current assets		8,076				5,457
Income tax receivable		1,427				1,407
Total current assets		173,555				171,422
Property and equipment, net		18,867				18,255
Other intangible assets, net		21,565				23,761
Indefinite-lived intangible assets		19,600				19,600
Deferred income taxes		55				55
Other long-term assets		21,188				15,935
Total assets	$	254,830			$	249,028
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	17,861			$	15,907
Accrued liabilities		20,843				24,403
Income tax payable		320				179
Total current liabilities		39,024				40,489
Deferred income taxes		1,301				1,418
Other long-term liabilities		16,433				10,728
Total liabilities		56,758				52,635
Stockholders’ Equity
Preferred stock, $0.0001 par value per share; 5,000 shares authorized; none issued		-				-
Common stock, $0.0001 par value per share; 100,000 shares authorized; 43,104 and 43,054 issued and 38,288 and 38,402 outstanding, respectively		4				4
Additional paid in capital		704,909				703,487
Accumulated deficit		(457,756	)			(457,253	)
Treasury stock, at cost		(33,635	)			(33,156	)
Accumulated other comprehensive loss		(15,450	)			(16,689	)
Total stockholders’ equity		198,072				196,393
Total liabilities and stockholders’ equity	$	254,830			$	249,028

CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(In thousands, except per share amounts)
	Three Months Ended
	June 30, 2026				June 30, 2025
Sales
Domestic sales	$	24,522			$	24,724
International sales		31,634				30,523
Total sales		56,156				55,247
Cost of goods sold		28,684				35,567
Gross profit		27,472				19,680
Operating expenses
Selling, general and administrative		24,303				26,910
Restructuring charges		140				161
Transaction costs		22				108
Contingent consideration benefit		(254	)			-
Legal and regulatory matter (benefit) costs		(1,299	)			1,837
Impairment of indefinite-lived intangible assets		-				1,565
Total operating expenses		22,912				30,581
Operating income (loss)		4,560				(10,901	)
Other income
Interest income, net		84				153
Other, net		92				1,483
Total other income, net		176				1,636
Income (loss) before income tax		4,736				(9,265	)
Income tax expense (benefit)		22				(831	)
Net income (loss)	$	4,714			$	(8,434	)
Net income (loss) per share:	$	0.12			$	(0.22	)
Basic		0.12				(0.22	)
Diluted
Weighted average shares outstanding:
Basic		38,369				38,402
Diluted		38,369				38,402

CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(In thousands, except per share amounts)
	Six Months Ended
	June 30, 2026				June 30, 2025
Sales
Domestic sales	$	49,402			$	49,533
International sales		68,692				66,147
Total sales		118,094				115,680
Cost of goods sold		67,859				75,206
Gross profit		50,235				40,474
Operating expenses
Selling, general and administrative		50,880				53,526
Restructuring charges		993				334
Transaction costs		44				250
Contingent consideration benefit		(254	)			-
Legal and regulatory matter costs		80				2,462
Impairment of indefinite-lived intangible assets		-				1,565
Total operating expenses		51,743				58,137
Operating loss		(1,508	)			(17,663	)
Other income
Interest income, net		172				410
Other, net		3,000				1,942
Total other income, net		3,172				2,352
Income (loss) before income tax		1,664				(15,311	)
Income tax expense (benefit)		245				(1,633	)
Net income (loss)	$	1,419			$	(13,678	)
Net income (loss) per share:
Basic	$	0.04			$	(0.36	)
Diluted		0.04				(0.36	)
Weighted average shares outstanding:
Basic		38,389				38,384
Diluted		38,390				38,384

CLARUS CORPORATION
RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN
THREE MONTHS ENDED
		June 30, 2026						June 30, 2025
Sales		$	56,156			Sales		$	55,247
Gross profit as reported		$	27,472			Gross profit as reported		$	19,680
Adjusted gross profit		$	27,472			Adjusted gross profit		$	19,680
Gross margin as reported			48.9	%		Gross margin as reported			35.6	%
Adjusted gross margin			48.9	%		Adjusted gross margin			35.6	%
SIX MONTHS ENDED
		June 30, 2026						June 30, 2025
Sales		$	118,094			Sales		$	115,680
Gross profit as reported		$	50,235			Gross profit as reported		$	40,474
Plus impact of inventory fair value adjustment			-			Plus impact of inventory fair value adjustment			120
Adjusted gross profit		$	50,235			Adjusted gross profit		$	40,594
Gross margin as reported			42.5	%		Gross margin as reported			35.0	%
Adjusted gross margin			42.5	%		Adjusted gross margin			35.1	%

CLARUS CORPORATION
RECONCILIATION FROM NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
	Three Months Ended June 30, 2026
	Total			Gross			Operating				Income tax				Tax				Net				Diluted
	sales			profit			expenses				expense				rate				income				EPS(1)
As reported	$	56,156		$	27,472		$	22,912			$	22			(0.5	)	%		$	4,714			$	0.12
Amortization of intangibles		-			-			(1,906	)			9								1,897
Restructuring charges		-			-			(140	)			-								140
Transaction costs		-			-			(22	)			-								22
Contingent consideration benefit		-			-			254				-								(254	)
Stock-based compensation		-			-			(268	)			-								268
As adjusted	$	56,156		$	27,472		$	20,830			$	31			0.5		%		$	6,787			$	0.18
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to net loss. Reported net income per share and adjusted net income per share are both calculated based on 38,369 diluted weighted average shares of common stock.
	Three Months Ended June 30, 2025
	Total			Gross			Operating				Income tax				Tax				Net				Diluted
	sales			profit			expenses				benefit				rate				loss				EPS(1)
As reported	$	55,247		$	19,680		$	30,581			$	(831	)		(9.0	)	%		$	(8,434	)		$	(0.22	)
Amortization of intangibles		-			-			(2,213	)			217								1,996
Impairment of indefinite-lived intangible assets		-			-			(1,565	)			-								1,565
Restructuring charges		-			-			(161	)			16								145
Transaction costs		-			-			(108	)			10								98
Stock-based compensation		-			-			(1,554	)			57								1,497
As adjusted	$	55,247		$	19,680		$	24,980			$	(531	)		14.5		%		$	(3,133	)		$	(0.08	)
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to net loss. Reported net loss per share and adjusted net loss per share are both calculated based on 38,402 basic and diluted weighted average shares of common stock.

CLARUS CORPORATION
RECONCILIATION FROM NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) AND RELATED EARNINGS PER DILUTED SHARE
(In thousands, except per share amounts)
	Six Months Ended June 30, 2026
	Total			Gross			Operating				Income tax				Tax				Net				Diluted
	sales			profit			expenses				expense				rate				income				EPS(1)
As reported	$	118,094		$	50,235		$	51,743			$	245			(14.7	)	%		$	1,419			$	0.04
Amortization of intangibles		-			-			(3,843	)			23								3,820
Restructuring charges		-			-			(993	)			-								993
Transaction costs		-			-			(44	)			-								44
Contingent consideration benefit		-			-			254				-								(254	)
Stock-based compensation		-			-			(1,422	)			-								1,422
As adjusted	$	118,094		$	50,235		$	45,695			$	268			3.5		%		$	7,444			$	0.19
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to net loss. Reported net income per share and adjusted net income per share are both calculated based on 38,390 diluted weighted average shares of common stock.
	Six Months Ended June 30, 2025
	Total			Gross			Operating				Income tax				Tax				Net				Diluted
	sales			profit			expenses				benefit				rate				loss				EPS(1)
As reported	$	115,680		$	40,474		$	58,137			$	(1,633	)		(10.7	)	%		$	(13,678	)		$	(0.36	)
Amortization of intangibles		-			-			(4,437	)			512								3,925
Impairment of indefinite-lived intangible assets		-			-			(1,565	)			-								1,565
Disposal of internally developed software		-			-			(365	)			48								317
Restructuring charges		-			-			(334	)			39								295
Transaction costs		-			-			(250	)			29								221
Inventory fair value of purchase accounting		-			120			-				16								104
Stock-based compensation		-			-			(3,023	)			105								2,918
As adjusted	$	115,680		$	40,594		$	48,163			$	(884	)		16.9		%		$	(4,333	)		$	(0.11	)
(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to net loss. Reported net loss per share and adjusted net loss per share are both calculated based on 38,384 basic and diluted weighted average shares of common stock.

CLARUS CORPORATION
RECONCILIATION FROM CONSOLIDATED NET INCOME (LOSS) AND NET INCOME (LOSS) MARGIN TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
	Three Months Ended June 30, 2026																	Three Months Ended June 30, 2025
	Outdoor Segment				Adventure Segment				Corporate Costs				Total(1)					Outdoor Segment				Adventure Segment				Corporate Costs				Total(1)
Net income (loss)													$	4,714																$	(8,434	)
Income tax expense (benefit)														22																	(831	)
Other, net														(92	)																(1,483	)
Interest income, net														(84	)																(153	)
Operating income (loss)	$	8,177			$	(1,333	)		$	(2,284	)		$	4,560				$	(4,242	)		$	(2,203	)		$	(4,456	)		$	(10,901	)
Depreciation		616				322				62				1,000					534				343				-				877
Amortization of intangibles		162				1,744				-				1,906					245				1,968				-				2,213
EBITDA	$	8,955			$	733			$	(2,222	)		$	7,466				$	(3,463	)		$	108			$	(4,456	)		$	(7,811	)
Restructuring charges		92				48				-				140					(42	)			203				-				161
Transaction costs		-				-				22				22					86				-				22				108
Contingent consideration benefit		-				(254	)			-				(254	)				-				-				-				-
Impairment of indefinite-lived intangible assets		-				-				-				-					1,565				-				-				1,565
Stock-based compensation		-				-				268				268					-				-				1,554				1,554
Adjusted EBITDA(2)	$	9,047			$	527			$	(1,932	)		$	7,642				$	(1,854	)		$	311			$	(2,880	)		$	(4,423	)
Sales	$	39,776			$	16,380			$	-			$	56,156				$	36,661			$	18,586			$	-			$	55,247
Net income (loss) margin														8.4	%																(15.3	)%
EBITDA margin		22.5	%			4.5	%							13.3	%				(9.4	)%			0.6	%							(14.1	)%
Adjusted EBITDA margin		22.7	%			3.2	%							13.6	%				(5.1	)%			1.7	%							(8.0	)%
(1) The Company reconciles consolidated Net income (loss) to EBITDA and Adjusted EBITDA as it has historically not allocated Income tax expense (benefit), Other, net, and Interest income, net to the segments or to Corporate.
(2) Beginning in the first quarter of 2026, the Company will no longer add back Legal costs and regulatory matter expenses or Other inventory reserves to Adjusted EBITDA. During the three months ended June 30, 2025, the Company included an adjustment related to Legal costs and regulatory matter expenses of $1,837 ($1,150 recorded at the Outdoor segment and $687 recorded in Corporate costs) and Other inventory reserves of $490 at the Outdoor segment. The three months ended June 30, 2025 reconciliation has been restated to conform to the 2026 presentation.

CLARUS CORPORATION
RECONCILIATION FROM CONSOLIDATED NET INCOME (LOSS) AND NET INCOME (LOSS) MARGIN TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN
(In thousands)
	Six Months Ended June 30, 2026																Six Months Ended June 30, 2025
	Outdoor Segment				Adventure Segment				Corporate Costs				Total(1)				Outdoor Segment				Adventure Segment				Corporate Costs				Total(1)
Net income (loss)													$	1,419															$	(13,678	)
Income tax expense (benefit)														245																(1,633	)
Other, net														(3,000	)															(1,942	)
Interest income, net														(172	)															(410	)
Operating income (loss)	$	7,959			$	(3,170	)		$	(6,297	)		$	(1,508	)		$	(4,120	)		$	(5,257	)		$	(8,286	)		$	(17,663	)
Depreciation		1,251				611				125				1,987				1,040				720				-				1,760
Amortization of intangibles		384				3,459				-				3,843				528				3,909				-				4,437
EBITDA	$	9,594			$	900			$	(6,172	)		$	4,322			$	(2,552	)		$	(628	)		$	(8,286	)		$	(11,466	)
Restructuring charges		885				108				-				993				131				203				-				334
Transaction costs		-				-				44				44				156				40				54				250
Contingent consideration benefit		-				(254	)			-				(254	)			-				-				-				-
Impairment of indefinite-lived intangible assets		-				-				-				-				1,565				-				-				1,565
Disposal of internally developed software		-				-				-				-				-				365				-				365
Stock-based compensation		-				-				1,422				1,422				-				-				3,023				3,023
Inventory fair value of purchase accounting		-				-				-				-				-				120				-				120
Adjusted EBITDA(2)	$	10,479			$	754			$	(4,706	)		$	6,527			$	(700	)		$	100			$	(5,209	)		$	(5,809	)
Sales	$	84,648			$	33,446			$	-			$	118,094			$	80,984			$	34,696			$	-			$	115,680
Net income (loss) margin														1.2	%															(11.8	)%
EBITDA margin		11.3	%			2.7	%							3.7	%			(3.2	)%			(1.8	)%							(9.9	)%
Adjusted EBITDA margin		12.4	%			2.3	%							5.5	%			(0.9	)%			0.3	%							(5.0	)%
(1) The Company reconciles consolidated Net income (loss) to EBITDA and Adjusted EBITDA as it has historically not allocated Income tax expense (benefit), Other, net, and Interest income, net to the segments or to Corporate.
(2) Beginning in the first quarter of 2026, the Company will no longer add back Legal costs and regulatory matter expenses or Other inventory reserves to Adjusted EBITDA. During the six months ended June 30, 2025, the Company included an adjustment related to Legal costs and regulatory matter expenses of $2,462 ($1,728 recorded at the Outdoor segment and $734 recorded in Corporate costs) and Other inventory reserves of $490 at the Outdoor segment. The six months ended June 30, 2025 reconciliation has been restated to conform to the 2026 presentation.