Compass Diversified Declares Third Quarter 2025 Distributions on Series A, B and C Preferred Shares
Rhea-AI Summary
Compass Diversified (NYSE: CODI) declared quarterly cash distributions on its three preferred share series payable Oct 30, 2025. The Board set $0.453125 per share for the 7.250% Series A (period July 30–Oct 30, 2025) and $0.4921875 per share for both the 7.875% Series B and Series C (same period). Record date for all series is Oct 15, 2025. CODI states preferred distributions generally qualify as qualified dividends for U.S. federal tax purposes to the extent of earnings and profits; excess is return of capital then capital gain. The release also discloses forward-looking risks tied to an ongoing Lugano investigation and potential impacts on CODI’s financial reporting.
Positive
- Series A distribution: $0.453125 payable Oct 30, 2025
- Series B distribution: $0.4921875 payable Oct 30, 2025
- Series C distribution: $0.4921875 payable Oct 30, 2025
- Preferred distributions may be qualified dividends for U.S. tax purposes
Negative
- Ongoing Lugano investigation may affect CODI financials
- Potential delays in financial reporting and periodic filings
- Risk of restatements or material weaknesses in controls
News Market Reaction
On the day this news was published, CODI gained 0.90%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
WESTPORT, Conn., Oct. 02, 2025 (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 as to the timing and outcome of the Lugano investigation, CODI’s credit availability and future liquidity, actions taken in response to the outcome of the investigation, the future performance of Lugano and CODI’s other subsidiaries, the filing or delay of CODI’s periodic reports, and the amount of any potential misstatements associated with Lugano and the impact any such misstatements may have on CODI’s previously issued financial statements or results of operations. 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,” “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 the 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 CODI’s actual results and outcomes to differ, perhaps materially, including but not limited to: the discovery of additional information relevant to the investigation; the conclusions (and timing of those conclusions) concerning matters relating to the investigation; the timing of the review by, and the conclusions of, Grant Thornton regarding the investigation and CODI’s financial statements; a further material delay in CODI’s financial reporting or ability to hold an annual meeting of stockholders; the impacts of restatement reviews; the likelihood that the control deficiencies identified or that may be identified in the future will result in material weaknesses in CODI’s internal control over financial reporting; and commercial litigation relating to the investigation, including CODI’s representations regarding its financial statements, and the possibility of future litigation or investigation relating to CODI’s internal controls, restatement reviews, the investigation, or related matters. Please see CODI’s Annual Report on Form 10-K for the year ended December 31, 2024 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 distributions did Compass Diversified (CODI) declare on Oct 2, 2025?
What is the record date for CODI preferred distributions in Oct 2025?
Are CODI’s Oct 30, 2025 preferred distributions taxable as qualified dividends?
How could the Lugano investigation mentioned in CODI’s Oct 2, 2025 release affect shareholders?
When will CODI pay the declared preferred distributions?
Which CODI preferred series carry 7.875% stated rates?
