Compass Diversified Declares Fourth Quarter 2025 Distributions on Series A, B and C Preferred Shares

Rhea-AI Summary

Compass Diversified (NYSE: CODI) announced quarterly cash distributions on its three preferred share series. The Board declared $0.453125 per share on 7.250% Series A and $0.4921875 per share on 7.875% Series B and Series C. Each distribution covers the period from October 30, 2025 up to, but excluding, January 30, 2026, is payable on January 30, 2026, and applies to holders of record as of January 15, 2026.

The company said preferred cash distributions should generally be qualified dividends for U.S. federal income tax purposes to the extent paid from earnings and profits; amounts exceeding earnings and profits are treated first as a non-taxable return of capital to the extent of basis and then as capital gain.

Positive

• Series A distribution declared: $0.453125 per share
• Series B distribution declared: $0.4921875 per share
• Series C distribution declared: $0.4921875 per share
• Payment date: January 30, 2026; Record date: January 15, 2026
• Tax treatment: Generally qualifies as qualified dividends if paid from earnings

Negative

• Excess distributions over earnings treated as return of capital then capital gain

Key Figures

Series A coupon 7.250% Series A Preferred Shares distribution rate

Series A distribution $0.453125 per share Quarterly cash distribution for period Oct 30, 2025–Jan 30, 2026

Series B coupon 7.875% Series B Preferred Shares distribution rate

Series B distribution $0.4921875 per share Quarterly cash distribution for period Oct 30, 2025–Jan 30, 2026

Series C coupon 7.875% Series C Preferred Shares distribution rate

Series C distribution $0.4921875 per share Quarterly cash distribution for period Oct 30, 2025–Jan 30, 2026

Record date January 15, 2026 Holders of record date for all three preferred series

Payment date January 30, 2026 Payment date for all three preferred distributions

Market Reality Check

$5.50 Last Close

Volume Volume 1,352,381 vs 20-day average 1,902,273, indicating lighter-than-normal trading ahead of this announcement. normal

Technical Shares at $4.65 are trading below the $8.57 200-day moving average and sit close to the $4.60 52-week low.

Peers on Argus

Peers show mixed moves: FIP up 5.17%, TTI up 3.71%, BOC up 1.86%, while CRESY and TRC are down modestly. CODI’s negative move of -3.12% appears more stock-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 29	Earnings update	Neutral	-4.3%	Reported Q2 2025 results and reiterated full-year subsidiary Adjusted EBITDA guidance.
Dec 19	Credit amendment	Neutral	+6.9%	Amended credit facility restoring access to $100M revolver and adding covenant flexibility.
Dec 18	Earnings update	Neutral	-3.6%	Reported Q1 2025 results and reiterated 2025 subsidiary Adjusted EBITDA guidance range.
Dec 08	Restatement completed	Neutral	+6.5%	Announced completion of restatement of previously issued financial statements.
Nov 26	Restatement call	Neutral	+4.2%	Scheduled conference call to discuss restated results and related uncertainties.

Recent Company History

Over late 2025, CODI focused on restating financials, addressing credit issues, and updating quarterly results. Multiple filings and press releases in November–December 2025 detailed restatements tied to Lugano, going concern risks, and amendments that restored access to a $100 million revolver. Earnings releases on Dec. 18 and Dec. 29, 2025 reiterated subsidiary Adjusted EBITDA guidance of $330–360 million. Today’s preferred distribution declaration fits into this period of active capital structure and reporting updates.

Market Pulse Summary

This announcement confirmed quarterly cash distributions on CODI’s three preferred share series, with per-share amounts of $0.453125 for Series A and $0.4921875 for Series B and C, payable on January 30, 2026. Distributions may qualify as qualified dividends for U.S. tax purposes depending on earnings and profits and holding periods. Set against recent filings citing losses, leverage and going concern language, investors may watch how ongoing operations support these preferred payouts over time.

Key Terms

qualified dividends financial

"CODI’s preferred cash distributions should generally constitute “qualified dividends” for U.S. federal income tax..."

Dividends that meet tax rules allowing them to be taxed at the lower long-term capital gains rates instead of higher ordinary income rates. For investors, that means more of the payment stays in your pocket; it influences which dividend-paying stocks you buy and how long you hold them, similar to getting a discount for meeting a store’s membership conditions.

earnings and profits financial

"to the extent they are paid from “earnings and profits” (as determined under U.S. federal income tax principles)..."

Earnings and profits describe the money a business keeps after covering its costs and expenses; 'earnings' usually means the final bottom-line amount while 'profits' can refer to that or to earlier stages after some costs are deducted. Investors watch these figures as a measure of a company's ability to grow, pay dividends and justify its stock price—think of it like a household’s leftover income after all bills, savings and necessary spending are paid.

return of capital financial

"will first be treated as a non- taxable return of capital to the extent of the holder’s adjusted tax basis..."

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

capital gain financial

"and thereafter be treated as a capital gain from the sale or exchange of such shares."

A capital gain is the profit an investor earns when they sell an asset — such as a stock, bond, or property — for more than they originally paid. Think of it like selling a used car for more than you bought it: the difference is your gain. Capital gains matter because they increase an investor’s overall return and can affect taxable income, which influences net profit from an investment.

AI-generated analysis. Not financial advice.

WESTPORT, Conn., Jan. 05, 2026 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced today that its Board of Directors (the “Board”) has declared a quarterly cash distribution for each of its three preferred share series.

The Board declared a quarterly cash distribution of $0.453125 per share on the Company’s 7.250% Series A Preferred Shares (the “Series A Preferred Shares”). The distribution on Series A Preferred Shares covers the period from, and including, October 30, 2025, up to, but excluding, January 30, 2026. The distribution for such period is payable on January 30, 2026, to all holders of record of Series A Preferred Shares as of January 15, 2026.

The Board also declared a quarterly cash distribution of $0.4921875 per share on the Company’s 7.875% Series B Preferred Shares (the “Series B Preferred Shares”). The distribution on Series B Preferred Shares covers the period from, and including, October 30, 2025, up to, but excluding, January 30, 2026. The distribution for such period is payable on January 30, 2026, to all holders of record of Series B Preferred Shares as of January 15, 2026.

The Board also declared a quarterly cash distribution of $0.4921875 per share on the Company’s 7.875% Series C Preferred Shares (the “Series C Preferred Shares”). The distribution on Series C Preferred Shares covers the period from, and including, October 30, 2025, up to, but excluding, January 30, 2026. The distribution for such period is payable on January 30, 2026, to all holders of record of Series C Preferred Shares as of January 15, 2026.

CODI’s preferred cash distributions should generally constitute “qualified dividends” for U.S. federal income tax purposes to the extent they are paid from “earnings and profits” (as determined under U.S. federal income tax principles), provided that the requisite holding period is met. To the extent that the amount of cash distributions exceeds earnings and profits, such distribution will first be treated as a non- taxable return of capital to the extent of the holder’s adjusted tax basis in the shares and thereafter be treated as a capital gain from the sale or exchange of such shares.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, CODI’s expectations with respect to payment of its quarterly distributions and timing related to the same.. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as “believe,” “expect,” “may,” “could,” “would,” “plan,” “intend,” “estimate,” “predict,” “future,” “potential,” “continue,” “should” or “anticipate” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These statements are based on beliefs and assumptions by CODI’s Board of Directors and management, and on information currently available to CODI’s Board of Directors and management. These statements involve risk and uncertainties that could cause actual results and outcomes to differ, perhaps materially, including but not limited to: changes in the economy, financial markets and political environment, including changes in inflation, interest rates and U.S. tariff and import/export regulations; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, war, natural disasters, or social, civil or political unrest; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); environmental risks affecting the business or operations of our subsidiaries; disruption in the global supply chain, labor shortages and labor costs; our business prospects and the prospects of our subsidiaries; the impact of, and ability to successfully complete and integrate, acquisitions that we have made or may make; the ability to successfully complete when we’ve executed divestitures agreements; the dependence of our future success on the general economy and its impact on the industries in which we operate; the ability of our subsidiaries to achieve their objectives; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our subsidiaries; CODI’s ability to regain compliance with NYSE continued listing requirements; the cooperation of, and future concessions granted by, CODI’s lenders; control deficiencies identified or that may be identified in the future that have resulted or will result in material weaknesses in CODI’s internal control over financial reporting; and litigation relating to the Lugano Holding, Inc. (“Lugano”) investigation, including CODI’s representations regarding its financial statements, and current and future litigation, enforcement actions or investigations relating to CODI’s internal controls, restatement reviews, the Lugano investigation or related matters. Please see CODI’s Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December 31, 2024 filed with the SEC on December 8, 2025 for other risk factors that you should consider in connection with such forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements have been made. Except as required by law, CODI does not undertake any public obligation to update any forward-looking statements to reflect events, circumstances, or new information after the date of this press release, or to reflect the occurrence of unanticipated events.

Investor Relations
Compass Diversified
irinquiry@compassdiversified.com

Source: Compass Diversified Holdings

FAQ

What distribution did Compass Diversified (CODI) declare for its Series A preferred shares on January 5, 2026?

The Board declared a quarterly cash distribution of $0.453125 per Series A preferred share covering Oct 30, 2025–Jan 30, 2026.

What are the Series B and Series C preferred distributions for CODI and when are they payable?

The Board declared $0.4921875 per share for both Series B and Series C, payable on January 30, 2026 to holders of record as of January 15, 2026.

Are CODI preferred cash distributions taxable as qualified dividends for U.S. federal tax purposes?

CODI said preferred distributions should generally be qualified dividends if paid from earnings and profits and holding-period requirements are met.

How is any CODI preferred distribution treated if it exceeds earnings and profits?

Amounts exceeding earnings and profits are first treated as a non-taxable return of capital to the extent of basis and then as a capital gain.

What period do the declared CODI preferred distributions cover for the January 30, 2026 payment?

Each distribution covers the period from and including October 30, 2025 up to, but excluding, January 30, 2026.