Clarus (CLAR) Stock: Roth Capital Cuts PT After Mixed Q1 2026

Font: Financial Modeling Prep  • May 13, 2026

Clarus (NASDAQ: CLAR) Stock Analysis: Roth Capital Cuts Price Target After Mixed Q1 2026 Results

Clarus (NASDAQ: CLAR) faced a price target reduction from Roth Capital to $2.90 from $3.25, although the firm kept a Neutral rating on the shares. Based on the article’s cited share price of $2.63, the new target implies potential upside of approximately 10.3%. 

Clarus is a Salt Lake City-based company focused on designing and developing equipment and lifestyle products for outdoor enthusiasts. Its products are sold under brands including Black Diamond, Rhino-Rack, MAXTRAX, TRED Outdoors, and RockyMounts.

The price target adjustment followed the release of Clarus’ first-quarter 2026 financial results. For the quarter ended March 31, 2026, the company reported sales of $61.9 million, up from $60.4 million in the prior-year period, representing growth of 2.5%.

Clarus reported adjusted net income of $0.7 million, or $0.02 per diluted share, compared with an adjusted net loss of $1.2 million, or $0.03 per diluted share, in the year-ago quarter. However, on a GAAP basis, the company still posted a net loss of $3.3 million, or $0.09 per diluted share, compared with a net loss of $5.2 million, or $0.14 per diluted share, a year earlier.

The company’s margin profile improved during the quarter. Gross margin increased to 36.8% from 34.4%, a gain of 240 basis points, driven primarily by higher volumes and a favorable product mix in both the Outdoor and Adventure segments.

Despite the year-over-year improvement in sales and margins, Clarus’ profitability remained pressured. Adjusted EBITDA was negative $1.1 million, compared with negative $1.4 million in the prior-year quarter. The company also revised its full-year 2026 outlook lower, now expecting sales of $245 million to $255 million, down from its prior outlook of $255 million to $265 million, and adjusted EBITDA of approximately $3 million to $5 million, down from $9 million to $11 million previously.

In a key strategic move, Clarus announced that its board had initiated a review of strategic alternatives to enhance shareholder value. The review may include the sale of all or part of the business or other strategic or financial transactions. Clarus has retained Jefferies LLC as its financial advisor, and the company said there is no deadline or guarantee that the review will result in a transaction.

CLAR shares are trading near their 52-week low of about $2.58, with the company’s market capitalization around $99 million to $101 million, depending on the intraday share price used.