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.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
News Market Reaction – CODI
On the day this news was published, CODI gained 1.05%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h 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. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
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.
Regulatory & Risk Context
Key Terms
qualified dividends financial
earnings and profits financial
return of capital financial
capital gain financial
AI-generated analysis. How Rhea-AI works. 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
The Board also declared a quarterly cash distribution of
The Board also declared a quarterly cash distribution of
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
