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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.
Clarus
Clarus
Clarus Revenue by Segment
Clarus Revenue by Geographic Location
Revenue by Segment
Outdoor Segment Revenue
CapyFin.comAdventure Segment Revenue
CapyFin.comRevenue by Geographic Location
Domestic Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.com 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.
- Operating loss increased to $50.1 million from $10.1 million in Q4 2023.
- Market conditions and inventory challenges remain a risk to future growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income