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Dec 31, 2024
Clarus Q4 2024 Earnings Report
Clarus reported a decline in revenue and a significant net loss for Q4 2024, impacted by goodwill impairments and weaker sales in the Adventure segment.
Key Takeaways
Clarus reported Q4 2024 revenues of $71.4 million, down from $76.5 million in the prior year quarter. The company posted a net loss of $65.5 million, primarily driven by a $44.8 million goodwill impairment and a $21.0 million tax valuation allowance. Gross margin improved to 33.4% from 28.9% due to better product mix and lower inventory reserves at the Outdoor segment. Despite headwinds, Clarus generated $14.4 million in free cash flow and completed the acquisition of RockyMounts to expand its Adventure segment product offerings.
Revenue declined 6.7% year-over-year to $71.4 million.
Net loss widened to $65.5 million, driven by a $44.8 million goodwill impairment.
Gross margin improved to 33.4% from 28.9% in Q4 2023.
Free cash flow increased to $14.4 million from $13.3 million in Q4 2023.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Clarus expects revenue between $250 million and $260 million for fiscal year 2025, with adjusted EBITDA ranging from $14 million to $16 million. The company remains focused on inventory management, improving margins, and expanding global reach in the Adventure segment.
Positive Outlook
- Expected revenue of $250M-$260M in 2025 with adjusted EBITDA of $14M-$16M.
- Completed the acquisition of RockyMounts to strengthen the Adventure segment.
- Free cash flow improved to $14.4 million in Q4 2024.
- Gross margin improved due to better product mix and lower inventory reserves.
- Continued investment in product development and commercialization efforts.
Challenges Ahead
- Revenue declined 6.7% year-over-year due to weaker Adventure segment sales.
- Recorded a $44.8 million impairment charge impacting Q4 financials.
- Net loss widened significantly to $65.5 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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