Clarus Q4 Gross Margin Falls to 27.7%, Guides $255–265M 2026 Revenue
Clarus ended 2025 debt-free with $36.7M cash and guided 2026 sales of $255–265M, adjusted EBITDA of $9–11M and 75% tariff offset, leaving a $2.8M gap. Q4 sales dipped to $65.4M and gross margin fell to 27.7% as tariffs, FX losses and a $3.4M write-down cut adjusted EBITDA to $1.2M.
1. Q4 Financial Results
Consolidated Q4 sales declined to $65.4M from $71.4M, with gross margin dropping to 27.7% (from 33.4%). Reduced demand, $3.4M inventory write-down, $2.2M FX contract losses and a 390-bp tariff impact drove adjusted EBITDA down to $1.2M.
2. Portfolio Simplification
Since 2023 Black Diamond exited low-margin categories (PIEPS, bindings, JetForce), cut headcount 38% versus 2023 baseline, and upgraded leadership. Investments in Asia sourcing, e-commerce, marketing technology and ERP modernization shifted sales mix toward higher-margin apparel, mountain and climb products (now 86% of Q4 sales).
3. Balance Sheet and 2026 Outlook
Clarus closed 2025 debt-free with $36.7M cash and plans to preserve liquidity into H1 2026. Management forecasts $255–265M in sales, $9–11M adjusted EBITDA, expects to offset 75% of tariff impacts (leaving a $2.8M gap), and anticipates a potential $6.5M tariff recovery on a Supreme Court decision.