EX-99.1 2 tm2530439d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Clarus Reports Third Quarter 2025 Results

Increased Quarterly Sales 3% and Adjusted EBITDA 15%

Adventure Reported Sales up 16%

Apparel Sales at Outdoor up 29%

SALT LAKE CITY, November 6, 2025 (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 third quarter ended September 30, 2025.

Third Quarter 2025 Financial Summary vs. Same Year-Ago Quarter

| · | Sales of $69.3 million compared to $67.1 million.

| · | Gross margin was 35.1% compared to 35.0%; adjusted gross margin of 35.1% compared to 37.8%.

| · | Net loss of $1.6 million, or $(0.04) per diluted share, compared to net loss of $3.2 million, or $(0.08) per diluted share.

| · | Adjusted net income of $1.8 million, or $0.05 per diluted share, compared to adjusted net income of $1.9 million, or $0.05 per diluted share.

| · | Adjusted EBITDA of $2.8 million with an adjusted EBITDA margin of 4.0% compared to $2.4 million with an adjusted EBITDA margin of 3.6%.

Management Commentary

“During the third quarter, we continued to navigate a challenging global consumer landscape,” said Warren Kanders, Clarus’ Executive Chairman. “Amidst the macro uncertainty, particularly with respect to evolving tariff policies and consumer behavior, our focus is on controlling what we can to position Clarus for sustainable, profitable growth as market conditions normalize. We continued to make incremental progress against our operational initiatives, reflected in Q3 revenue and adjusted EBITDA growth year-over-year. Under the new leadership team, Adventure segment sales increased 16%, supported by solid results in the core Australia market. A key highlight in the Outdoor segment has been the success of the revamped Black Diamond apparel line, which saw sales growth of 29% over the prior year period. We continued to advance our overall strategic plan during the quarter, prioritizing our best customers and most profitable products and styles in Outdoor, and simplified the organizational structure at Adventure.”

“As we look toward the future, we are focused on unlocking the intrinsic value at each of the Outdoor and Adventure segments, especially as we consider the disconnect between the sum of the parts value of our two segments and today's market valuation. After multiple quarters of disciplined execution and operational progress, Black Diamond is emerging from a period of considerable transformation as a more resilient and focused business poised to capitalize on growth opportunities ahead. At Adventure, we are taking steps to align our cost structure and strategic roadmap with market realities. We continue to believe that the business is only beginning to tap into significant growth opportunities in the Americas and in Europe, and we are committed to fitting more vehicles across the globe to drive this growth. Across both segments, we are focused on near-term actions that will enhance profitability and set the stage for long-term value creation.”

Third Quarter 2025 Financial Results

Sales in the third quarter were $69.3 million compared to $67.1 million in the same year-ago quarter. Sales in the Outdoor segment decreased 1% to $48.7 million, compared to $49.3 million in the year-ago quarter. Sales in the Adventure segment increased 16% to $20.7 million, compared to $17.8 million in the year-ago quarter.

The decrease in Outdoor sales was due to a shift in timing for independent global distributor revenues into the second quarter, lower global direct-to-consumer revenues, and lower PIEPS revenue due to its sale in July 2025, partially offset by an increase in North America wholesale revenue. North America wholesale sales at Outdoor were up $3.1 million or 16%.

Increased sales in the Adventure segment reflected a favorable wholesale market in Australia for Rhino-Rack and increased contributions from the acquisition of RockyMounts. RockyMounts contributed $1.5 million of the growth compared to the prior year period.

Gross margin in the third quarter was 35.1% compared to 35.0% in the year-ago quarter. The increase in gross margin was primarily due to higher volumes at the Adventure segment and a favorable product mix at the Outdoor segment. These increases were partially offset by an unfavorable product mix within the Adventure segment, tariff impacts at both segments, lower volumes at the Outdoor segment due to the sale of PIEPS, and unfavorable foreign currency impacts at the Outdoor segment.

Selling, general and administrative expenses in the third quarter were $26.2 million compared to $27.9 million in the same year-ago quarter. The decrease was primarily due to lower employee-related expenses, lower costs from PIEPS due to its sale, as well as other expense reduction initiatives across both segments and at Corporate to manage costs.

Net loss in the third quarter of 2025 was $1.6 million, or $(0.04) per diluted share, compared to net loss of $3.2 million, or $(0.08) per diluted share in the year-ago quarter.

Adjusted net income in the third quarter of 2025 was $1.8 million, or $0.05 per diluted share, compared to adjusted net income of $1.9 million, or $0.05 per diluted share, in the year-ago quarter. Adjusted net loss excludes legal cost and regulatory matters expenses, inventory reserves, restructuring charges and transaction costs, as well as non-cash items for intangible amortization, disposal of internally developed software, contingent consideration benefits, and stock-based compensation.

Adjusted EBITDA from continuing operations in the third quarter was $2.8 million, or an adjusted EBITDA margin of 4.0%, compared to adjusted EBITDA from continuing operations of $2.4 million, or an adjusted EBITDA margin of 3.6%, in the same year-ago quarter.

Net cash used in operating activities for the three months ended September 30, 2025, was $5.7 million compared to net cash used of $8.3 million in the prior year quarter. Capital expenditures in the third quarter of 2025 were $1.2 million compared to $1.1 million in the prior year quarter. Free cash flow for the third quarter of 2025 was an outflow of $6.9 million.

Liquidity at September 30, 2025 vs. December 31, 2024

| · | Cash and cash equivalents totaled $29.5 million compared to $45.4 million.

| · | Total debt of $2.0 million compared to $1.9 million.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its third quarter 2025 results. To access the call by phone, please dial (888)-596-4144 or (646)-968-2525. When the line is picked up, dial 9696620 and press #. 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®, TRED Outdoors®, and RockyMounts® 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 (loss) income from continuing operations 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 (loss) income from continuing operations and related earnings (loss) per diluted share, (iii) EBITDA, EBITDA margin, adjusted EBITDA and adjusted EBITDA margin, and (iv) free cash flow, provide 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 2025 to net income for the fiscal year 2025, 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, 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)

|  | September 30, 2025 |  |  | December 31, 2024 |
Assets |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash |  | $ | 29,508 |  |  | $ | 45,359 |
Accounts receivable, less allowance for |  |  |  |  |  |  |  |
credit losses of $1,254 and $1,271 |  |  | 51,755 |  |  |  | 43,678 |
Inventories |  |  | 86,546 |  |  |  | 82,278 |
Prepaid and other current assets |  |  | 5,330 |  |  |  | 5,555 |
Income tax receivable |  |  | 1,700 |  |  |  | 910 |
Total current assets |  |  | 174,839 |  |  |  | 177,780 |
Property and equipment, net |  |  | 18,582 |  |  |  | 17,606 |
Other intangible assets, net |  |  | 25,577 |  |  |  | 31,516 |
Indefinite-lived intangible assets |  |  | 45,212 |  |  |  | 46,750 |
Goodwill |  |  | 3,804 |  |  |  | 3,804 |
Deferred income taxes |  |  | 36 |  |  |  | 36 |
Other long-term assets |  |  | 15,020 |  |  |  | 16,602 |
Total assets |  | $ | 283,070 |  |  | $ | 294,094 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 10,610 |  |  | $ | 11,873 |
Accrued liabilities |  |  | 24,883 |  |  |  | 22,276 |
Income tax payable |  |  | 47 |  |  |  | - |
Current portion of long-term debt |  |  | 1,980 |  |  |  | 1,888 |
Total current liabilities |  |  | 37,520 |  |  |  | 36,037 |
Deferred income taxes |  |  | 8,485 |  |  |  | 12,210 |
Other long-term liabilities |  |  | 11,260 |  |  |  | 12,754 |
Total liabilities |  |  | 57,265 |  |  |  | 61,001 |
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; 43,054 and 43,004 issued and 38,402 and 38,362 outstanding, respectively |  |  | 4 |  |  |  | 4 |
Additional paid in capital |  |  | 702,160 |  |  |  | 697,592 |
Accumulated deficit |  |  | (425,032 | ) |  |  | (406,857 | )
Treasury stock, at cost |  |  | (33,156 | ) |  |  | (33,114 | )
Accumulated other comprehensive loss |  |  | (18,171 | ) |  |  | (24,532 | )
Total stockholders’ equity |  |  | 225,805 |  |  |  | 233,093 |
Total liabilities and stockholders’ equity |  | $ | 283,070 |  |  | $ | 294,094 |

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF LOSS

(Unaudited)

(In thousands, except per share amounts)

|  | Three Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
Sales |  |  |  |  |  |  |  |
Domestic sales |  | $ | 28,261 |  |  | $ | 24,365 |
International sales |  |  | 41,086 |  |  |  | 42,750 |
Total sales |  |  | 69,347 |  |  |  | 67,115 |
Cost of goods sold |  |  | 44,981 |  |  |  | 43,618 |
Gross profit |  |  | 24,366 |  |  |  | 23,497 |
Operating expenses |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | 26,155 |  |  |  | 27,880 |
Restructuring charges |  |  | 155 |  |  |  | 478 |
Transaction costs |  |  | 436 |  |  |  | 103 |
Contingent consideration benefit |  |  | (355 | ) |  |  | - |
Legal costs and regulatory matter expenses |  |  | 1,001 |  |  |  | 394 |
Total operating expenses |  |  | 27,392 |  |  |  | 28,855 |
Operating loss |  |  | (3,026 | ) |  |  | (5,358 | )
Other (expense) income |  |  |  |  |  |  |  |
Interest income, net |  |  | 108 |  |  |  | 373 |
Other, net |  |  | (943 | ) |  |  | 1,164 |
Total other (expense) income, net |  |  | (835 | ) |  |  | 1,537 |
Loss before income tax |  |  | (3,861 | ) |  |  | (3,821 | )
Income tax benefit |  |  | (2,244 | ) |  |  | (664 | )
Net loss |  | $ | (1,617 | ) |  | $ | (3,157 | )
Net loss per share: |  |  |  |  |  |  |  |
Basic |  | $ | (0.04 | ) |  | $ | (0.08 | )
Diluted |  |  | (0.04 | ) |  |  | (0.08 | )
Weighted average shares outstanding: |  |  |  |  |  |  |  |
Basic |  |  | 38,402 |  |  |  | 38,352 |
Diluted |  |  | 38,402 |  |  |  | 38,352 |

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(Unaudited)

(In thousands, except per share amounts)

|  | Nine Months Ended |
|  | September 30, 2025 |  |  | September 30, 2024 |
Sales |  |  |  |  |  |  |  |
Domestic sales |  | $ | 77,794 |  |  | $ | 75,583 |
International sales |  |  | 107,233 |  |  |  | 117,327 |
Total sales |  |  | 185,027 |  |  |  | 192,910 |
Cost of goods sold |  |  | 120,187 |  |  |  | 124,156 |
Gross profit |  |  | 64,840 |  |  |  | 68,754 |
Operating expenses |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | 79,681 |  |  |  | 84,176 |
Restructuring charges |  |  | 489 |  |  |  | 1,009 |
Transaction costs |  |  | 686 |  |  |  | 168 |
Contingent consideration benefit |  |  | (355 | ) |  |  | (125 | )
Legal costs and regulatory matter expenses |  |  | 3,463 |  |  |  | 3,795 |
Impairment of indefinite-lived intangible assets |  |  | 1,565 |  |  |  | - |
Total operating expenses |  |  | 85,529 |  |  |  | 89,023 |
Operating loss |  |  | (20,689 | ) |  |  | (20,269 | )
Other income |  |  |  |  |  |  |  |
Interest income, net |  |  | 518 |  |  |  | 1,198 |
Other, net |  |  | 999 |  |  |  | 669 |
Total other income, net |  |  | 1,517 |  |  |  | 1,867 |
Loss before income tax |  |  | (19,172 | ) |  |  | (18,402 | )
Income tax benefit |  |  | (3,877 | ) |  |  | (3,290 | )
Loss from continuing operations |  |  | (15,295 | ) |  |  | (15,112 | )
Discontinued operations, net of tax |  |  | - |  |  |  | 28,346 |
Net (loss) income |  | $ | (15,295 | ) |  | $ | 13,234 |
Loss from continuing operations per share: |  |  |  |  |  |  |  |
Basic |  | $ | (0.40 | ) |  | $ | (0.39 | )
Diluted |  |  | (0.40 | ) |  |  | (0.39 | )
Net (loss) income per share: |  |  |  |  |  |  |  |
Basic |  | $ | (0.40 | ) |  | $ | 0.35 |
Diluted |  |  | (0.40 | ) |  |  | 0.35 |
Weighted average shares outstanding: |  |  |  |  |  |  |  |
Basic |  |  | 38,390 |  |  |  | 38,286 |
Diluted |  |  | 38,390 |  |  |  | 38,286 |

CLARUS CORPORATION

RECONCILIATION FROM GROSS PROFIT TO ADJUSTED GROSS PROFIT

AND ADJUSTED GROSS MARGIN

THREE MONTHS ENDED

|  | September 30, 2025 |  |  |  |  | September 30, 2024 |
Sales |  | $ | 69,347 |  |  | Sales |  | $ | 67,115 |
Gross profit as reported |  | $ | 24,366 |  |  | Gross profit as reported |  | $ | 23,497 |
Plus impact of other inventory reserves |  |  | - |  |  | Plus impact of PFAS and other inventory reserves |  |  | 1,878 |
Adjusted gross profit |  | $ | 24,366 |  |  | Adjusted gross profit |  | $ | 25,375 |
Gross margin as reported |  |  | 35.1 | % |  | Gross margin as reported |  |  | 35.0 | %
Adjusted gross margin |  |  | 35.1 | % |  | Adjusted gross margin |  |  | 37.8 | %

NINE MONTHS ENDED

|  | September 30, 2025 |  |  |  |  | September 30, 2024 |
Sales |  | $ | 185,027 |  |  | Sales |  | $ | 192,910 |
Gross profit as reported |  | $ | 64,840 |  |  | Gross profit as reported |  | $ | 68,754 |
Plus impact of inventory fair value adjustment |  |  | 120 |  |  | Plus impact of inventory fair value adjustment |  |  | - |
Plus impact of other inventory reserves |  |  | 490 |  |  | Plus impact of PFAS and other inventory reserves |  |  | 3,323 |
Adjusted gross profit |  | $ | 65,450 |  |  | Adjusted gross profit |  | $ | 72,077 |
Gross margin as reported |  |  | 35.0 | % |  | Gross margin as reported |  |  | 35.6 | %
Adjusted gross margin |  |  | 35.4 | % |  | Adjusted gross margin |  |  | 37.4 | %

CLARUS CORPORATION

RECONCILIATION FROM NET LOSS TO ADJUSTED NET INCOME
AND RELATED EARNINGS PER DILUTED SHARE

(In thousands, except per share amounts)

|  | Three Months Ended September 30, 2025 |
|  | Total |  |  | Gross |  |  | Operating |  |  | Income tax |  |  | Tax |  |  | Net |  |  | Diluted |
|  | sales |  |  | profit |  |  | expenses |  |  | benefit |  |  | rate |  |  | (loss) income |  |  | EPS (1) |
As reported |  | $ | 69,347 |  |  | $ | 24,366 |  |  | $ | 27,392 |  |  | $ | (2,244 | ) |  |  | (58.1 | )% |  | $ | (1,617 | ) |  | $ | (0.04 | )
Amortization of intangibles |  |  | - |  |  |  | - |  |  |  | (2,149 | ) |  |  | 1,751 |  |  |  |  |  |  |  | 398 |  |  |  |  |
Disposal of internally developed software |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 129 |  |  |  |  |  |  |  | (129 | ) |  |  |  |
Restructuring charges |  |  | - |  |  |  | - |  |  |  | (155 | ) |  |  | 147 |  |  |  |  |  |  |  | 8 |  |  |  |  |
Transaction costs |  |  | - |  |  |  | - |  |  |  | (436 | ) |  |  | (30 | ) |  |  |  |  |  |  | 466 |  |  |  |  |
Contingent consideration benefit |  |  | - |  |  |  | - |  |  |  | 355 |  |  |  | - |  |  |  |  |  |  |  | (355 | ) |  |  |  |
Inventory fair value of purchase accounting |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (16 | ) |  |  |  |  |  |  | 16 |  |  |  |  |
Other inventory reserves |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (57 | ) |  |  |  |  |  |  | 57 |  |  |  |  |
Legal costs and regulatory matter expenses |  |  | - |  |  |  | - |  |  |  | (1,001 | ) |  |  | (287 | ) |  |  |  |  |  |  | 1,288 |  |  |  |  |
Stock-based compensation |  |  | - |  |  |  | - |  |  |  | (1,545 | ) |  |  | (106 | ) |  |  |  |  |  |  | 1,651 |  |  |  |  |
As adjusted |  | $ | 69,347 |  |  | $ | 24,366 |  |  | $ | 22,461 |  |  | $ | (712 | ) |  |  | (66.5 | )% |  | $ | 1,782 |  |  | $ | 0.05 |

(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 is calculated based on 38,402 basic and diluted weighted average shares of common stock. Adjusted net income per share is calculated based on 38,452 diluted shares of common stock.

|  | Three Months Ended September 30, 2024 |
|  | Total |  |  | Gross |  |  | Operating |  |  | Income tax |  |  | Tax |  |  | Net |  |  | Diluted |
|  | sales |  |  | profit |  |  | expenses |  |  | (benefit) expense |  |  | rate |  |  | (loss) income |  |  | EPS (1) |
As reported |  | $ | 67,115 |  |  | $ | 23,497 |  |  | $ | 28,855 |  |  | $ | (664 | ) |  |  | (17.4 | )% |  | $ | (3,157 | ) |  | $ | (0.08 | )
Amortization of intangibles |  |  | - |  |  |  | - |  |  |  | (2,416 | ) |  |  | 629 |  |  |  |  |  |  |  | 1,787 |  |  |  |  |
Restructuring charges |  |  | - |  |  |  | - |  |  |  | (478 | ) |  |  | 112 |  |  |  |  |  |  |  | 366 |  |  |  |  |
Transaction costs |  |  | - |  |  |  | - |  |  |  | (103 | ) |  |  | 23 |  |  |  |  |  |  |  | 80 |  |  |  |  |
Contingent consideration benefit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12 |  |  |  |  |  |  |  | (12 | ) |  |  |  |
PFAS and other inventory reserves |  |  | - |  |  |  | 1,878 |  |  |  | - |  |  |  | 427 |  |  |  |  |  |  |  | 1,451 |  |  |  |  |
Legal costs and regulatory matter expenses |  |  | - |  |  |  | - |  |  |  | (394 | ) |  |  | 171 |  |  |  |  |  |  |  | 223 |  |  |  |  |
Stock-based compensation |  |  | - |  |  |  | - |  |  |  | (1,547 | ) |  |  | 392 |  |  |  |  |  |  |  | 1,155 |  |  |  |  |
As adjusted |  | $ | 67,115 |  |  | $ | 25,375 |  |  | $ | 23,917 |  |  | $ | 1,102 |  |  |  | 36.8 | % |  | $ | 1,893 |  |  | $ | 0.05 |

(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 is calculated based on 38,352 basic and diluted weighted average shares of common stock. Adjusted net income per share is calculated based on 38,455 diluted shares of common stock.

CLARUS CORPORATION

RECONCILIATION FROM LOSS FROM CONTINUING OPERATIONS TO ADJUSTED INCOME FROM CONTINUING OPERATIONS
AND RELATED EARNINGS PER DILUTED SHARE

(In thousands, except per share amounts)

|  | Nine Months Ended September 30, 2025 |
|  | Total |  |  | Gross |  |  | Operating |  |  | Income tax |  |  | Tax |  |  | (Loss) income from |  |  | Diluted |
|  | sales |  |  | profit |  |  | expenses |  |  | benefit |  |  | rate |  |  | continuing operations |  |  | EPS (1) |
As reported |  | $ | 185,027 |  |  | $ | 64,840 |  |  | $ | 85,529 |  |  | $ | (3,877 | ) |  |  | (20.2 | )% |  | $ | (15,295 | ) |  | $ | (0.40 | )
Amortization of intangibles |  |  | - |  |  |  | - |  |  |  | (6,586 | ) |  |  | 2,263 |  |  |  |  |  |  |  | 4,323 |  |  |  |  |
Impairment of indefinite-lived intangible assets |  |  | - |  |  |  | - |  |  |  | (1,565 | ) |  |  | - |  |  |  |  |  |  |  | 1,565 |  |  |  |  |
Disposal of internally developed software |  |  | - |  |  |  | - |  |  |  | (365 | ) |  |  | 177 |  |  |  |  |  |  |  | 188 |  |  |  |  |
Restructuring charges |  |  | - |  |  |  | - |  |  |  | (489 | ) |  |  | 186 |  |  |  |  |  |  |  | 303 |  |  |  |  |
Transaction costs |  |  | - |  |  |  | - |  |  |  | (686 | ) |  |  | (1 | ) |  |  |  |  |  |  | 687 |  |  |  |  |
Contingent consideration benefit |  |  | - |  |  |  | - |  |  |  | 355 |  |  |  | - |  |  |  |  |  |  |  | (355 | ) |  |  |  |
Inventory fair value of purchase accounting |  |  | - |  |  |  | 120 |  |  |  | - |  |  |  | - |  |  |  |  |  |  |  | 120 |  |  |  |  |
Other inventory reserves |  |  | - |  |  |  | 490 |  |  |  | - |  |  |  | - |  |  |  |  |  |  |  | 490 |  |  |  |  |
Legal costs and regulatory matter expenses |  |  | - |  |  |  | - |  |  |  | (3,463 | ) |  |  | (3 | ) |  |  |  |  |  |  | 3,466 |  |  |  |  |
Stock-based compensation |  |  | - |  |  |  | - |  |  |  | (4,568 | ) |  |  | (1 | ) |  |  |  |  |  |  | 4,569 |  |  |  |  |
As adjusted |  | $ | 185,027 |  |  | $ | 65,450 |  |  | $ | 68,162 |  |  | $ | (1,256 | ) |  |  | 105.1 | % |  | $ | 61 |  |  | $ | 0.00 |

(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share is calculated based on 38,390 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 38,440 diluted shares of common stock.

|  | Nine Months Ended September 30, 2024 |
|  | Total |  |  | Gross |  |  | Operating |  |  | Income tax |  |  | Tax |  |  | (Loss) income from |  |  | Diluted |
|  | sales |  |  | profit |  |  | expenses |  |  | (benefit) expense |  |  | rate |  |  | continuing operations |  |  | EPS (1) |
As reported |  | $ | 192,910 |  |  | $ | 68,754 |  |  | $ | 89,023 |  |  | $ | (3,290 | ) |  |  | (17.9 | )% |  | $ | (15,112 | ) |  | $ | (0.39 | )
Amortization of intangibles |  |  | - |  |  |  | - |  |  |  | (7,316 | ) |  |  | 1,511 |  |  |  |  |  |  |  | 5,805 |  |  |  |  |
Restructuring charges |  |  | - |  |  |  | - |  |  |  | (1,009 | ) |  |  | 208 |  |  |  |  |  |  |  | 801 |  |  |  |  |
Transaction costs |  |  | - |  |  |  | - |  |  |  | (168 | ) |  |  | 35 |  |  |  |  |  |  |  | 133 |  |  |  |  |
Contingent consideration benefit |  |  | - |  |  |  | - |  |  |  | 125 |  |  |  | (26 | ) |  |  |  |  |  |  | (99 | ) |  |  |  |
PFAS inventory reserve |  |  | - |  |  |  | 3,323 |  |  |  | - |  |  |  | 687 |  |  |  |  |  |  |  | 2,636 |  |  |  |  |
Legal costs and regulatory matter expenses |  |  | - |  |  |  | - |  |  |  | (3,795 | ) |  |  | 784 |  |  |  |  |  |  |  | 3,011 |  |  |  |  |
Stock-based compensation |  |  | - |  |  |  | - |  |  |  | (4,253 | ) |  |  | 879 |  |  |  |  |  |  |  | 3,374 |  |  |  |  |
As adjusted |  | $ | 192,910 |  |  | $ | 72,077 |  |  | $ | 72,607 |  |  | $ | 788 |  |  |  | 58.9 | % |  | $ | 549 |  |  | $ | 0.01 |

(1) Potentially dilutive securities are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive to the loss from continuing operations. Reported loss from continuing operations per share is calculated based on 38,286 basic and diluted weighted average shares of common stock. Adjusted income from continuing operations per share is calculated based on 38,426 diluted shares of common stock.

CLARUS CORPORATION

RECONCILIATION FROM OPERATING INCOME (LOSS) TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN

(In thousands)

|  | Three Months Ended September 30, 2025 |  |  | Three Months Ended September 30, 2024 |
|  | Outdoor Segment |  |  | Adventure Segment |  |  | Corporate Costs |  |  | Total |  |  | Outdoor Segment |  |  | Adventure Segment |  |  | Corporate Costs |  |  | Total |
Operating income (loss) |  | $ | 3,221 |  |  | $ | (1,721 | ) |  | $ | (4,526 | ) |  | $ | (3,026 | ) |  | $ | 1,210 |  |  | $ | (2,507 | ) |  | $ | (4,061 | ) |  | $ | (5,358 | )
Depreciation |  |  | 550 |  |  |  | 344 |  |  |  | - |  |  |  | 894 |  |  |  | 640 |  |  |  | 340 |  |  |  | - |  |  |  | 980 |
Amortization of intangibles |  |  | 222 |  |  |  | 1,927 |  |  |  | - |  |  |  | 2,149 |  |  |  | 286 |  |  |  | 2,130 |  |  |  | - |  |  |  | 2,416 |
EBITDA |  |  | 3,993 |  |  |  | 550 |  |  |  | (4,526 | ) |  |  | 17 |  |  |  | 2,136 |  |  |  | (37 | ) |  |  | (4,061 | ) |  |  | (1,962 | )
Restructuring charges |  |  | 1 |  |  |  | 154 |  |  |  | - |  |  |  | 155 |  |  |  | 189 |  |  |  | 289 |  |  |  | - |  |  |  | 478 |
Transaction costs |  |  | 414 |  |  |  | - |  |  |  | 22 |  |  |  | 436 |  |  |  | - |  |  |  | - |  |  |  | 103 |  |  |  | 103 |
Contingent consideration benefit |  |  | - |  |  |  | (355 | ) |  |  | - |  |  |  | (355 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Legal costs and regulatory matter expenses |  |  | 322 |  |  |  | - |  |  |  | 679 |  |  |  | 1,001 |  |  |  | 194 |  |  |  | - |  |  |  | 200 |  |  |  | 394 |
Stock-based compensation |  |  | - |  |  |  | - |  |  |  | 1,545 |  |  |  | 1,545 |  |  |  | - |  |  |  | - |  |  |  | 1,547 |  |  |  | 1,547 |
PFAS and other inventory reserves |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,878 |  |  |  | - |  |  |  | - |  |  |  | 1,878 |
Adjusted EBITDA |  | $ | 4,730 |  |  | $ | 349 |  |  | $ | (2,280 | ) |  | $ | 2,799 |  |  | $ | 4,397 |  |  | $ | 252 |  |  | $ | (2,211 | ) |  | $ | 2,438 |
Sales |  | $ | 48,688 |  |  | $ | 20,659 |  |  | $ | - |  |  | $ | 69,347 |  |  |  | 49,287 |  |  |  | 17,828 |  |  |  | - |  |  |  | 67,115 |
EBITDA margin |  |  | 8.2 | % |  |  | 2.7 | % |  |  |  |  |  |  | 0.0 | % |  |  | 4.3 | % |  |  | (0.2 | )% |  |  |  |  |  |  | (2.9 | )%
Adjusted EBITDA margin |  |  | 9.7 | % |  |  | 1.7 | % |  |  |  |  |  |  | 4.0 | % |  |  | 8.9 | % |  |  | 1.4 | % |  |  |  |  |  |  | 3.6 | %

CLARUS CORPORATION

RECONCILIATION FROM OPERATING LOSS TO EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AND AMORTIZATION (EBITDA), EBITDA MARGIN, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN

(In thousands)

|  | Nine Months Ended September 30, 2025 |  |  | Nine Months Ended September 30, 2024 |
|  | Outdoor Segment |  |  | Adventure Segment |  |  | Corporate Costs |  |  | Total |  |  | Outdoor Segment |  |  | Adventure Segment |  |  | Corporate Costs |  |  | Total |
Operating loss |  | $ | (899 | ) |  | $ | (6,978 | ) |  | $ | (12,812 | ) |  | $ | (20,689 | ) |  | $ | (2,896 | ) |  | $ | (4,544 | ) |  | $ | (12,829 | ) |  | $ | (20,269 | )
Depreciation |  |  | 1,590 |  |  |  | 1,064 |  |  |  | - |  |  |  | 2,654 |  |  |  | 1,974 |  |  |  | 1,077 |  |  |  | - |  |  |  | 3,051 |
Amortization of intangibles |  |  | 750 |  |  |  | 5,836 |  |  |  | - |  |  |  | 6,586 |  |  |  | 857 |  |  |  | 6,459 |  |  |  | - |  |  |  | 7,316 |
EBITDA |  |  | 1,441 |  |  |  | (78 | ) |  |  | (12,812 | ) |  |  | (11,449 | ) |  |  | (65 | ) |  |  | 2,992 |  |  |  | (12,829 | ) |  |  | (9,902 | )
Restructuring charges |  |  | 132 |  |  |  | 357 |  |  |  | - |  |  |  | 489 |  |  |  | 559 |  |  |  | 450 |  |  |  | - |  |  |  | 1,009 |
Transaction costs |  |  | 570 |  |  |  | 40 |  |  |  | 76 |  |  |  | 686 |  |  |  | - |  |  |  | - |  |  |  | 168 |  |  |  | 168 |
Contingent consideration benefit |  |  | - |  |  |  | (355 | ) |  |  | - |  |  |  | (355 | ) |  |  | - |  |  |  | (125 | ) |  |  | - |  |  |  | (125 | )
Legal costs and regulatory matter expenses |  |  | 2,050 |  |  |  | - |  |  |  | 1,413 |  |  |  | 3,463 |  |  |  | 3,079 |  |  |  | - |  |  |  | 716 |  |  |  | 3,795 |
Impairment of indefinite-lived intangible assets |  |  | 1,565 |  |  |  | - |  |  |  | - |  |  |  | 1,565 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Disposal of internally developed software |  |  | - |  |  |  | 365 |  |  |  | - |  |  |  | 365 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Stock-based compensation |  |  | - |  |  |  | - |  |  |  | 4,568 |  |  |  | 4,568 |  |  |  | - |  |  |  | - |  |  |  | 4,253 |  |  |  | 4,253 |
Inventory fair value of purchase accounting |  |  | - |  |  |  | 120 |  |  |  | - |  |  |  | 120 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
PFAS and other inventory reserves |  |  | 490 |  |  |  | - |  |  |  | - |  |  |  | 490 |  |  |  | 3,323 |  |  |  | - |  |  |  | - |  |  |  | 3,323 |
Adjusted EBITDA |  | $ | 6,248 |  |  | $ | 449 |  |  | $ | (6,755 | ) |  | $ | (58 | ) |  | $ | 6,896 |  |  | $ | 3,317 |  |  | $ | (7,692 | ) |  | $ | 2,521 |
Sales |  | $ | 129,672 |  |  | $ | 55,355 |  |  | $ | - |  |  | $ | 185,027 |  |  |  | 132,496 |  |  |  | 60,414 |  |  |  | - |  |  |  | 192,910 |
EBITDA margin |  |  | 1.1 | % |  |  | (0.1 | )% |  |  |  |  |  |  | (6.2 | )% |  |  | (0.0 | )% |  |  | 5.0 | % |  |  |  |  |  |  | (5.1 | )%
Adjusted EBITDA margin |  |  | 4.8 | % |  |  | 0.8 | % |  |  |  |  |  |  | (0.0 | )% |  |  | 5.2 | % |  |  | 5.5 | % |  |  |  |  |  |  | 1.3 | %