Clarus Cuts 2026 Sales Outlook to $245M–$255M, Roth Capital Lowers Target to $2.90
Roth Capital reduced Clarus’s price target to $2.90 from $3.25 after Q1 revenue rose 2.5% to $61.9M and adjusted net income jumped to $0.7M. The company lowered its 2026 sales outlook to $245M–$255M, initiated a strategic review, and reported a 36.8% gross margin.
1. Roth Capital Cuts Price Target
Roth Capital trimmed its price target on Clarus to $2.90 from $3.25, maintaining a Neutral rating and implying roughly 10.3% upside from current share levels.
2. Q1 Financial Results
In Q1 2026, Clarus reported revenue of $61.9 million, up 2.5% year-over-year, adjusted net income of $0.7 million, and a GAAP net loss of $3.3 million while gross margin expanded by 240 basis points to 36.8%.
3. Lowered Full-Year Guidance
The company revised its 2026 sales outlook down to $245 million–$255 million from $255 million–$265 million and cut adjusted EBITDA guidance to $3 million–$5 million from $9 million–$11 million.
4. Strategic Alternatives Review
Clarus’s board has launched a strategic review, potentially exploring a sale of assets or the entire business, with Jefferies LLC appointed as financial advisor and no set timeline for a transaction.