Clarus Corp. (CLAR)
NASDAQConsumer DiscretionaryLeisureSnapshot 2026-09-04
$3.75-1.57%
Close 2026-09-04 · 1-day change
NASDAQConsumer DiscretionaryLeisureSnapshot 2026-09-04
Warn: Management is running behind on a stated commitment.
Clarus aims to achieve adjusted EBITDA between $3M and $5M in 2026. Sales are expected near $250M despite recent downward revisions. The company has beaten earnings recently and is exploring a sale to boost growth. Management is stable and focused on maintaining free cash flow.
Sales and EBITDA guidance have been lowered, showing limited progress. Free cash flow is weak and the company remains loss-making. Analysts have cut earnings estimates and the sector faces headwinds.
The price is about 11% above our fair value near $2.87. Analysts expect only about 2% revenue growth, which is modest. Our view is cautious given lowered guidance and weak cash flow.
Breaks if: adjusted EBITDA falls below $3 million in FY26
Breaks if: free cash flow declines significantly below prior year in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the Consumer Discretionary sector. The current thesis state is cautious, as the company has shown some signs of improvement but faces significant challenges ahead.
The market appears to be pricing in a low level of fragility, suggesting that investors are not fully accounting for the company's weak execution and the potential for further negative developments. The valuation is relatively cheap compared to peers, but there is an expectations gap that indicates some caution.
Fundamentals are likely to remain mixed in the near term, with management aiming for adjusted EBITDA of $12M to $13M and maintaining flat free cash flow. Recent financial performance has been weak, but there have been positive earnings beats that could indicate some operational progress.
The long-term thesis hinges on management's ability to execute on their priorities and external factors such as inflation trends and the performance of sector bellwethers. If guidance is cut or inflation rises, the outlook could worsen significantly.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats identified that could weaken the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Manage operations and capital expenditures to maintain flat free cash flow for the full year 2026 compared to prior outlook.
Stated as a priority in 2 of last 2 quarters. Free cash flow guidance was initially flat for 2026 in 2026-Q1, then revised to $6 million in 2026-Q2. Actual free cash flow for 2026-Q2 was positive at $0.6 million, indicating progress toward the full-year target.
“Free cash flow is now expected to be $6 million for the full year 2026.”
“Free cash flow is now expected to be flat for the full year 2026, compared to prior outlook of $3 million to $4 million.”
Breaks if: revenue falls below $245 million in FY26
Adjust fiscal year 2026 sales guidance to a range of $245 million to $255 million reflecting market conditions and segment performance.
Stated as a priority in 2 of last 2 quarters. The sales guidance was revised downward from $255M-$265M in 2026-Q1 to $245M-$255M in 2026-Q2. Actual revenue for first half 2026 was $118.1M, consistent with the revised outlook. The trajectory matches management's revised guidance.
“The Company continues to expect fiscal year 2026 sales to range between $245 million and $255 million.”
“The Company is revising its fiscal year 2026 outlook and now expects sales to range between $245 million and $255 million, compared to prior outlook of $255 million to $265 million.”
In the next 1 to 3 years, CLAR's performance will depend on its operational execution and external economic conditions. Not investment advice.