Clarus Corp 10-Q for FY2026 Q3

Clarus Corp (CLAR)

10-Q 2026-11-05 For: 2026-09-30

Added on November 05, 2026

About this 10-Q

Clarus Corp filed this 10-Q on November 5, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $71.22M; up 2.7% from $69.35M a year earlier
Net income: $3.26M; compared with a net loss of $1.62M a year earlier
Diluted EPS: $0.09; compared with -$0.04 a year earlier

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Delaware		58-1972600
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)


2084 East 3900 South Salt Lake City, Utah		84124
(Address of principal executive offices)		(Zip code)

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $.0001 per share		CLAR		NASDAQ Global Select Market

Large accelerated filer	☐	Non-accelerated filer	☐

Accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☐


		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets – September 30, 2026 and December 31, 2025	3
	Condensed Consolidated Statements of Comprehensive Income – Three months ended September 30, 2026 and 2025	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) – Nine months ended September 30, 2026 and 2025	5
	Condensed Consolidated Statements of Cash Flows – Nine months ended September 30, 2026 and 2025	6
	Condensed Consolidated Statements of Stockholders’ Equity – Three and nine months ended September 30, 2026 and 2025	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	44
Item 5.	Other information	44
Item 6.	Exhibits	45
Signature Page		46



	September 30, 2026			December 31, 2025
Assets
Current assets
Cash	$	20,792		$	36,691
Accounts receivable, less allowance for
credit losses of $1,335 and $1,121		59,525			44,839
Inventories		94,074			83,028
Prepaid and other current assets		7,463			5,457
Income tax receivable		574			1,407
Total current assets		182,428			171,422

Property and equipment, net		19,761			18,255
Other intangible assets, net		20,243			23,761
Indefinite-lived intangible assets		19,600			19,600
Deferred income taxes		55			55
Other long-term assets		21,355			15,935
Total assets	$	263,442		$	249,028

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	20,288		$	15,907
Accrued liabilities		23,609			24,403
Income tax payable		792			179
Total current liabilities		44,689			40,489

Deferred income taxes		1,324			1,418
Other long-term liabilities		16,312			10,728
Total liabilities		62,325			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		704,947			703,487
Accumulated deficit		(455,451)			(457,253)
Treasury stock, at cost		(33,635)			(33,156)
Accumulated other comprehensive loss		(14,748)			(16,689)
Total stockholders’ equity		201,117			196,393
Total liabilities and stockholders’ equity	$	263,442		$	249,028


	Three Months Ended
	September 30, 2026			September 30, 2025

Sales
Domestic sales	$	30,520		$	28,261
International sales		40,698			41,086
Total sales		71,218			69,347

Cost of goods sold		42,028			44,981
Gross profit		29,190			24,366

Operating expenses
Selling, general and administrative		25,273			26,155
Restructuring charges		196			155
Transaction costs		323			436
Contingent consideration benefit		-			(355)
Legal and regulatory matter costs		63			1,001

Total operating expenses		25,855			27,392

Operating income (loss)		3,335			(3,026)

Other income (expense)
Interest income, net		86			108
Other, net		265			(943)

Total other income (expense), net		351			(835)

Income (loss) before income tax		3,686			(3,861)
Income tax expense (benefit)		424			(2,244)
Net income (loss)		3,262			(1,617)

Other comprehensive income, net of tax:
Foreign currency translation adjustment		699			850
Unrealized gain on hedging activities		3			868
Other comprehensive income		702			1,718
Comprehensive income	$	3,964		$	101

Net income (loss) per share:
Basic	$	0.09		$	(0.04)
Diluted		0.09			(0.04)

Weighted average shares outstanding:
Basic		38,288			38,402
Diluted		38,295			38,402



	Nine Months Ended
	September 30, 2026		September 30, 2025

Sales
Domestic sales	$	79,922	$	77,794
International sales		109,390		107,233
Total sales		189,312		185,027

Cost of goods sold		109,887		120,187
Gross profit		79,425		64,840

Operating expenses
Selling, general and administrative		76,153		79,681
Restructuring charges		1,189		489
Transaction costs		367		686
Contingent consideration benefit		(254)		(355)
Legal and regulatory matter costs		143		3,463
Impairment of indefinite-lived intangible assets		-		1,565

Total operating expenses		77,598		85,529

Operating income (loss)		1,827		(20,689)

Other income
Interest income, net		258		518
Other, net		3,265		999

Total other income, net		3,523		1,517

Income (loss) before income tax		5,350		(19,172)
Income tax expense (benefit)		669		(3,877)
Net income (loss)		4,681		(15,295)

Other comprehensive income, net of tax:
Foreign currency translation adjustment		1,938		7,244
Unrealized gain (loss) on hedging activities		3		(883)
Other comprehensive income		1,941		6,361
Comprehensive income (loss)	$	6,622	$	(8,934)

Net income (loss) per share:
Basic	$	0.12	$	(0.40)
Diluted		0.12		(0.40)

Weighted average shares outstanding:
Basic		38,355		38,390
Diluted		38,358		38,390


CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(In thousands, except per share amounts)

													Accumulated
					Additional								Other		Total
	Common Stock				Paid-In		Accumulated		Treasury Stock				Comprehensive		Stockholders’
	Shares		Amount		Capital		Deficit		Shares		Amount		Loss		Equity

Balance, December 31, 2024		43,004	$	4	$	697,592	$	(406,857)		(4,642)	$	(33,114)	$	(24,532)	$	233,093
Net loss		-		-		-		(5,244)		-		-		-		(5,244)
Other comprehensive income		-		-		-		-		-		-		973		973
Cash dividends ($0.025 per share)		-		-		-		(959)		-		-		-		(959)
Purchase of treasury stock		-		-		-		-		(10)		(42)		-		(42)
Stock-based compensation expense		-		-		1,469		-		-		-		-		1,469
Proceeds from exercise of options		50		-		-		-		-		-		-		-
Balance, March 31, 2025		43,054	$	4	$	699,061	$	(413,060)		(4,652)	$	(33,156)	$	(23,559)	$	229,290
Net loss		-		-		-		(8,434)		-		-		-		(8,434)
Other comprehensive income		-		-		-		-		-		-		3,670		3,670
Cash dividends ($0.025 per share)		-		-		-		(961)		-		-		-		(961)
Stock-based compensation expense		-		-		1,555		-		-		-		-		1,555
Balance, June 30, 2025		43,054	$	4	$	700,616	$	(422,455)		(4,652)	$	(33,156)	$	(19,889)	$	225,120
Net loss		-		-		-		(1,617)		-		-		-		(1,617)
Other comprehensive income		-		-		-		-		-		-		1,718		1,718
Cash dividends ($0.025 per share)		-		-		-		(960)		-		-		-		(960)
Stock-based compensation expense		-		-		1,544		-		-		-		-		1,544
Balance, September 30, 2025		43,054	$	4	$	702,160	$	(425,032)		(4,652)	$	(33,156)	$	(18,171)	$	225,805


	ONWRD
	June 18, 2026
	Estimated Fair Value

Cash paid	$	375

Contingent consideration		499

Total purchase consideration	$	874

Assets acquired and liabilities assumed
Assets
Accounts receivable	$	13
Inventories		214
Prepaid and other current assets		6
Other intangible assets		646
Total assets		879

Liabilities
Accounts payable and accrued liabilities	$	5
Total liabilities		5

Net Book Value Acquired	$	874


	Outdoor			Adventure			Total

Gross value of goodwill	$	29,507		$	96,966		$	126,473
Accumulated goodwill impairments adjusted for impact of foreign currency exchange rates		(29,507)			(96,966)			(126,473)
	$	-		$	-		$	-


Gross balance at December 31, 2025	$	77,740

Increase due to ONWRD Acquisition		646
Impact of foreign currency exchange rates		4,454

Gross balance at September 30, 2026	$	82,840


	September 30, 2026
	Gross			Accumulated Amortization			Net			Weighted Average Useful Life
Intangibles subject to amortization
Customer relationships	$	62,335		$	(47,372)		$	14,963			13.6 years
Product technologies		17,769			(14,154)			3,615			9.1 years
Tradenames		2,504			(986)			1,518			9.8 years
Non-compete agreements		232			(85)			147			5.0 years
	$	82,840		$	(62,597)		$	20,243			12.5 years


Years Ending December 31,		Amortization Expense
2026 (excluding the nine months ended September 30, 2026)		$	1,742
2027			5,504
2028			3,947
2029			2,915
2030			2,031
2031			1,457
Thereafter			2,647
		$	20,243


	December 31, 2025
	Notional		Latest
	Amount		Maturity

Foreign exchange contracts - Canadian Dollars	$1,208		February 2026
Foreign exchange contracts - Euros	€ 3,134		February 2026


	Nine Months Ended
	September 30, 2026			September 30, 2025
Cash Flows From Operating Activities:
Net income (loss)	$	4,681		$	(15,295)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation of property and equipment		3,066			2,654
Amortization of other intangible assets		5,583			6,586
Impairment of indefinite-lived intangible assets		-			1,565
Loss on sale of business		-			410
Accretion of notes payable		-			92
Loss on disposition of property and equipment		197			424
Noncash lease expense		2,768			2,673
Contingent consideration benefit		(254)			(355)
Stock-based compensation		1,460			4,568
Deferred income taxes		(434)			(4,428)
Changes in operating assets and liabilities, net of dispositions:
Accounts receivable		(14,976)			(7,951)
Inventories		(10,804)			(5,359)
Prepaid and other assets		(1,493)			(763)
Accounts payable		3,458			(1,493)
Accrued liabilities		(3,373)			147
Income taxes		1,516			(709)
Net cash used in operating activities		(8,605)			(17,234)

Cash Flows From Investing Activities:
Proceeds from sale of business, net of cash		-			7,813
Purchase of business, net of cash acquired		(375)			-
Proceeds from disposition of property and equipment		31			70
Purchases of property and equipment		(3,845)			(4,259)
Net cash (used in) provided by investing activities		(4,189)			3,624

Cash Flows From Financing Activities:
Purchase of treasury stock		(479)			(42)
Cash dividends paid		(2,879)			(2,880)
Net cash used in financing activities		(3,358)			(2,922)

Effect of foreign exchange rates on cash and restricted cash		691			681

Change in cash and restricted cash		(15,461)			(15,851)


	September 30, 2026			December 31, 2025
Finished goods	$	90,540		$	79,584
Work-in-process		46			338
Raw materials and supplies		3,488			3,106
	$	94,074		$	83,028


	September 30, 2026			December 31, 2025

Land	$	2,850		$	2,850
Building and improvements		8,002			8,356
Furniture and fixtures		4,933			5,194
Computer hardware and software		9,842			8,278
Machinery and equipment		16,873			16,246
Construction in progress		4,115			968
		46,615			41,892
Less accumulated depreciation		(26,854)			(23,637)
	$	19,761		$	18,255


	September 30, 2026			December 31, 2025

Accrued payroll and related items	$	3,400		$	2,837
Accrued bonus		3,128			2,005
Designated forward exchange contracts		-			358
Accrued warranty		1,207			1,480
Current lease liabilities		3,085			3,021
Accrued commissions		1,066			576
Sales returns and rebates		2,947			3,300
Contingent consideration liabilities		160			254
Accrued CPSC regulatory matter		-			2,500
Accrued legal expenses		362			1,183
Restructuring liabilities		-			407
Other		8,254			6,482
	$	23,609		$	24,403


	Classification		December 31, 2025

Derivative instruments in liability positions:
Designated forward exchange contracts	Accrued liabilities		$	358


	Foreign Currency Translation Adjustments			Unrealized Gains (Losses) on Cash Flow Hedges			Total

Balance as of June 30, 2026	$	(15,447)		$	(3)		$	(15,450)
Current period other comprehensive income		699			3			702
Balance as of September 30, 2026	$	(14,748)		$	-		$	(14,748)


	Gains (losses) reclassified from AOCI to the Consolidated Statements of Comprehensive Income (Loss)
Affected line item in the Consolidated	Three Months Ended			Nine Months Ended
Statements of Comprehensive Income (Loss)	September 30, 2025			September 30, 2025
Foreign exchange contracts:
Sales	$	(641)		$	(1,068)
Less: Income tax benefit		(157)			(262)
Amount reclassified, net of tax	$	(484)		$	(806)

Total reclassifications from AOCI	$	(484)		$	(806)


		September 30, 2026
		Level 1			Level 2			Level 3			Total

Liabilities
Contingent consideration liabilities		$	-		$	-		$	499		$	499
		$	-		$	-		$	499		$	499

		December 31, 2025
		Level 1			Level 2			Level 3			Total

Liabilities
Designated forward exchange contracts		$	-		$	358		$	-		$	358
Contingent consideration liabilities			-			-			254			254
		$	-		$	358		$	254		$	612


	RockyMounts		ONWRD		Total

Balance at December 31, 2025	$	254	$	-	$	254

Increase due to ONWRD Acquisition		-		499		499
Fair value adjustments		(254)		-		(254)

Balance at September 30, 2026	$	-	$	499	$	499


Number of options		80
Option vesting period		1 Year
Grant price (per share)		$3.11
Dividend yield		3.22%
Expected volatility (a)		52.1% - 52.2%
Risk-free interest rate		4.21% - 4.27%
Expected life (years) (b)		5.81 - 6.69
Weighted average fair value (per share)		$1.25 - $1.30


	Outdoor		Adventure		Corporate		Total
Balance at December 31, 2025	$	407	$	-	$	-	$	407
Charges to expense:
Employee termination benefits		680		119		-		799
Exit costs		390		-		-		390
Total restructuring charges	$	1,070	$	119	$	-	$	1,189
Cash payments and non-cash charges:
Cash payments		(1,477)		(119)		-		(1,596)
Balance at September 30, 2026	$	-	$	-	$	-	$	-


	Three Months Ended September 30, 2026
	Outdoor		Adventure		Total
Sales
Domestic sales	$	26,453	$	4,067	$	30,520
International sales		28,277		12,421		40,698
Total sales		54,730		16,488		71,218
Cost of goods sold		32,563		9,357
Inventory fair value of purchase accounting		-		108
Selling, general and administrative		14,861		8,405
Restructuring charges		185		11
Legal and regulatory matter benefit		(21)		-
Segment operating income (loss)	$	7,142	$	(1,393)	$	5,749
Corporate costs						(2,414)
Interest income, net						86
Other, net						265
Income before income tax					$	3,686


	Three Months Ended September 30, 2025
	Outdoor		Adventure		Total
Sales
Domestic sales	$	24,140	$	4,121	$	28,261
International sales		24,548		16,538		41,086
Total sales		48,688		20,659		69,347
Cost of goods sold		31,174		13,807
Selling, general and administrative		13,556		8,774
Restructuring charges		1		154
Transaction costs		414		-
Contingent consideration benefit		-		(355)
Legal and regulatory matter costs		322		-
Segment operating income (loss)	$	3,221	$	(1,721)	$	1,500
Corporate costs						(4,526)
Interest income, net						108
Other, net						(943)
Loss before income tax					$	(3,861)


	Nine Months Ended September 30, 2026
	Outdoor		Adventure		Total
Sales
Domestic sales	$	67,548	$	12,374	$	79,922
International sales		71,830		37,560		109,390
Total sales		139,378		49,934		189,312
Cost of goods sold		80,387		29,392
Inventory fair value of purchase accounting		-		108
Selling, general and administrative		43,435		25,132
Restructuring charges		1,070		119
Contingent consideration benefit		-		(254)
Legal and regulatory matter benefit		(615)		-
Segment operating income (loss)	$	15,101	$	(4,563)	$	10,538
Corporate costs						(8,711)
Interest income, net						258
Other, net						3,265
Income before income tax					$	5,350


	Nine Months Ended September 30, 2025
	Outdoor		Adventure		Total
Sales
Domestic sales	$	63,455	$	14,339	$	77,794
International sales		66,217		41,016		107,233
Total sales		129,672		55,355		185,027
Cost of goods sold		83,957		35,620
Inventory fair value of purchase accounting		-		120
Other inventory reserves		490		-
Selling, general and administrative		41,807		26,551
Restructuring charges		132		357
Transaction costs		570		40
Contingent consideration benefit		-		(355)
Legal and regulatory matter costs		2,050		-
Impairment of indefinite-lived intangible assets		1,565		-
Segment operating loss	$	(899)	$	(6,978)	$	(7,877)
Corporate costs						(12,812)
Interest income, net						518
Other, net						999
Loss before income tax					$	(19,172)


Exhibit		Description
31.1		Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
31.2		Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and Rule 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **
101.INS		Inline XBRL Instance Document *
101.SCH		Inline XBRL Taxonomy Extension Schema Document *
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document *
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document *
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document *
104		Cover Page Interactive Data File – formatted as Inline XBRL and contained in Exhibit 101
*		Filed herewith
**		Furnished herewith


	CLARUS CORPORATION
Date: November 5, 2026	By:	/s/ Warren B. Kanders
	Name:	Warren B. Kanders
	Title:	Executive Chairman
		(Principal Executive Officer)

Date: November 5, 2026	By:	/s/ Michael J. Yates
	Name:	Michael J. Yates
	Title:	Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)


Date: November 5, 2026	By:	/s/ Warren B. Kanders
	Name:	Warren B. Kanders
	Title:	Executive Chairman
		(Principal Executive Officer)


Date: November 5, 2026	By:	/s/ Michael J. Yates
	Name:	Michael J. Yates
	Title:	Chief Financial Officer
		(Principal Financial Officer and
		Principal Accounting Officer)