Compass Diversified Reports Third Quarter 2025 Financial Results
Rhea-AI Summary
Compass Diversified (NYSE: CODI) reported consolidated results and filed its Form 10-Q for the quarter ended September 30, 2025, and said it is now current with SEC filings and compliant with credit facility and bond indenture reporting.
CODI provided 2025 guidance of subsidiary Adjusted EBITDA $335M–$355M (excluding Lugano) and noted use of non-GAAP measures with reconciliations attached; management will host a conference call on Jan 14, 2026 at 5:00 p.m. ET.
Positive
- Guidance: 2025 subsidiary Adjusted EBITDA $335M–$355M (excl. Lugano)
- SEC compliance: Company is current on 2025 filings
- Debt reporting: In compliance with credit facilities and bond indentures
Negative
- 2025 subsidiary Adjusted EBITDA guidance excludes Lugano, limiting comparability
- Company invoked Regulation S-K unreasonable efforts exception and did not reconcile 2025 guidance to GAAP
News Market Reaction
On the day this news was published, CODI gained 3.06%, reflecting a moderate positive market reaction. Argus tracked a trough of -7.5% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $12M to the company's valuation, bringing the market cap to $407M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CODI was down 1.32% pre-release while peers showed mixed moves (e.g., FIP +6.5%, BOC -1.9%, TRC +2.06%), pointing to stock-specific factors rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 7 | Earnings call notice | Neutral | -1.7% | Announced timing and access details for Q3 2025 earnings call. |
| Jan 5 | Preferred distributions | Positive | +1.1% | Declared Q4 2025 cash distributions on Series A, B and C preferred shares. |
| Dec 29 | Q2 2025 results | Positive | -4.3% | Reported Q2 2025 results and reiterated 2025 subsidiary Adjusted EBITDA guidance. |
| Dec 19 | Credit amendment | Positive | +6.9% | Amended credit facility, restoring access to $100M revolver and adding flexibility. |
| Dec 18 | Q1 2025 results | Positive | -3.6% | Reported Q1 2025 results and reiterated 2025 subsidiary Adjusted EBITDA guidance. |
Recent earnings-related updates (Q1 and Q2 2025) saw negative next-day moves, while the December 2025 credit facility amendment drew a strong positive reaction.
Over the past several months, CODI has focused on catching up financial reporting, managing credit facility constraints, and maintaining distributions. Q1 and Q2 2025 results reiterated subsidiary Adjusted EBITDA guidance of $330M–$360M (excluding Lugano) while emphasizing deleveraging and cash generation. A December 2025 credit facility amendment restored access to a $100M revolver and added covenant flexibility, which drew a positive market response. Preferred distributions have been maintained, even as Lugano-related issues and restatements weighed on sentiment. Today’s Q3 2025 results and updated outlook continue this earnings and guidance narrative.
Market Pulse Summary
This announcement reports Q3 2025 results, confirms that CODI is now current on its 2025 SEC filings, and sets 2025 subsidiary Adjusted EBITDA guidance at $335M–$355M excluding Lugano. Management reiterates reliance on non-GAAP measures such as Adjusted EBITDA, Adjusted Earnings, and pro forma net sales under the Regulation S-K unreasonable efforts exception. Investors may track future filings, covenant developments under the credit facility, and any updates on Lugano-related issues to assess how operating performance translates into GAAP results and balance sheet flexibility.
Key Terms
form 10-q regulatory
adjusted ebitda financial
adjusted earnings (loss) financial
non-gaap financial
pro forma net sales financial
regulation s-k regulatory
gaap financial
bond indentures financial
AI-generated analysis. Not financial advice.
WESTPORT, Conn., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle-market businesses, announced today its consolidated operating results for the three and nine months ended September 30, 2025 and filed its Quarterly Report on Form 10-Q for the period.
“I’m pleased to report that with today’s filing we are now fully current with our SEC filings for 2025,” said Elias Sabo, Chief Executive Officer of Compass Diversified, “and we are in full compliance with the periodic reporting requirements of our credit facilities and bond indentures.”
Sabo continued, “Excluding Lugano, our eight operating subsidiaries continue to deliver solid performance in an uncertain macroeconomic environment. We are focused on executing against our strategic priorities with the objective of delivering consistent, long-term shareholder value by partnering with our management teams to drive performance, invest for growth, and enhance profitability.”
2025 Outlook
CODI now expects full-year 2025 subsidiary Adjusted EBITDA of
Conference Call
Management will host a conference call today, Wednesday, January 14, 2026, at 5:00 p.m. E.T. / 2:00 p.m. P.T. A live webcast of the call will be available on the Investor Relations section of CODI’s website. To avoid delays, we encourage participants to log in to the webcast 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.
Note Regarding Use of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted Earnings (Loss) are non-GAAP measures used by the Company to assess its performance. We have reconciled Adjusted EBITDA to Income (Loss) from Continuing Operations and Adjusted Earnings (Loss) to Net Income (Loss) on the attached schedules. We consider Income (Loss) from Continuing Operations to be the most directly comparable GAAP financial measure to Adjusted EBITDA and Net Income (Loss) to be the most directly comparable GAAP financial measure to Adjusted Earnings (Loss). We believe that Adjusted EBITDA and Adjusted Earnings (Loss) provide useful information to investors and reflect important financial measures as each excludes the effects of items that reflect the impact of long-term investment decisions, rather than the performance of near-term operations. When compared to Net Income (Loss) and Income (Loss) from Continuing Operations, Adjusted Earnings (Loss) and Adjusted EBITDA, respectively, are each limited in that they do not reflect the periodic costs of certain capital assets used in generating revenues of our businesses or the non-cash charges associated with impairments, as well as certain cash charges. The presentation of Adjusted EBITDA allows investors to view the performance of our businesses in a manner similar to the methods used by us and the management of our businesses, provides additional insight into our operating results and provides a measure for evaluating targeted businesses for acquisition. The presentation of Adjusted Earnings (Loss) provides insight into our operating results.
Pro forma net sales is defined as net sales including the historical net sales relating to the pre-acquisition periods of The Honey Pot Co., assuming that the Company acquired The Honey Pot Co. on January 1, 2024. We have reconciled pro forma net sales to net sales, the most directly comparable GAAP financial measure, on the attached schedules. We believe that pro forma net sales is useful information for investors as it provides a better understanding of sales performance, and relative changes thereto, on a comparable basis. Pro forma net sales is not necessarily indicative of what the actual results would have been if the acquisition had in fact occurred on the date or for the periods indicated nor does it purport to project net sales for any future periods or as of any date.
In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled 2025 Subsidiary Adjusted EBITDA to its comparable GAAP measure because we do not provide guidance on Net Income (Loss) from Continuing Operations or the applicable reconciling items as a result of the uncertainty regarding, and the potential variability of, these items. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.
Adjusted EBITDA, Adjusted Earnings and pro forma net sales are not meant to be a substitute for GAAP measures and may be different from or otherwise inconsistent with non-GAAP financial measures used by other companies.
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 regarding its subsidiary Adjusted EBITDA and its future performance, liquidity and leverage, and the future performance of CODI’s subsidiaries. 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 risks 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 divestitures that we may execute; 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 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
| Compass Diversified Holdings Condensed Consolidated Balance Sheets | ||||||||
| September 30, 2025 | December 31, 2024 | |||||||
| (in thousands) | (Unaudited) | (As Restated) | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 61,139 | $ | 59,659 | ||||
| Accounts receivable, net | 224,689 | 207,172 | ||||||
| Inventories, net | 602,180 | 571,248 | ||||||
| Prepaid expenses and other current assets | 122,742 | 126,692 | ||||||
| Total current assets | 1,010,750 | 964,771 | ||||||
| Property, plant and equipment, net | 214,451 | 244,746 | ||||||
| Goodwill | 895,420 | 895,916 | ||||||
| Intangible assets, net | 915,666 | 983,396 | ||||||
| Other non-current assets | 210,881 | 208,593 | ||||||
| Total assets | $ | 3,247,168 | $ | 3,297,422 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 459,719 | $ | 421,715 | ||||
| Due to related party | 22,604 | 18,036 | ||||||
| Current portion, long-term debt | 1,878,852 | 1,774,290 | ||||||
| Subsidiary financing arrangements | 183,853 | 169,765 | ||||||
| Other current liabilities | 53,910 | 49,617 | ||||||
| Total current liabilities | 2,598,938 | 2,433,423 | ||||||
| Deferred income taxes | 106,804 | 108,091 | ||||||
| Long-term debt | — | — | ||||||
| Other non-current liabilities | 223,060 | 225,334 | ||||||
| Total liabilities | 2,928,802 | 2,766,848 | ||||||
| Stockholders' equity | ||||||||
| Total stockholders' equity attributable to Holdings | 519,217 | 678,620 | ||||||
| Noncontrolling interest | (200,851 | ) | (148,046 | ) | ||||
| Total stockholders' equity | 318,366 | 530,574 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,247,168 | $ | 3,297,422 | ||||
| Compass Diversified Holdings Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands, except per share data) | (As Restated) | (As Restated) | ||||||||||||||
| Net sales | $ | 472,562 | $ | 456,553 | $ | 1,405,027 | $ | 1,294,084 | ||||||||
| Cost of sales | 264,847 | 259,920 | 792,739 | 734,314 | ||||||||||||
| Gross profit | 207,715 | 196,633 | 612,288 | 559,770 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expense | 179,315 | 145,959 | 491,804 | 421,264 | ||||||||||||
| Management fees | 16,213 | 18,633 | 54,111 | 55,314 | ||||||||||||
| Amortization expense | 23,254 | 23,721 | 69,722 | 71,317 | ||||||||||||
| Impairment expense | — | — | 31,515 | 8,182 | ||||||||||||
| Operating income (loss) | (11,067 | ) | 8,320 | (34,864 | ) | 3,693 | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net | (66,721 | ) | (31,620 | ) | (136,668 | ) | (86,483 | ) | ||||||||
| Amortization of debt issuance costs | (826 | ) | (1,005 | ) | (2,922 | ) | (3,014 | ) | ||||||||
| Loss on debt modification | — | — | (2,827 | ) | — | |||||||||||
| Gain (loss) on sale of Crosman | — | 388 | — | (24,218 | ) | |||||||||||
| Other income (expense), net | (2,343 | ) | (37,769 | ) | (14,311 | ) | (125,853 | ) | ||||||||
| Net loss from continuing operations before income taxes | (80,957 | ) | (61,686 | ) | (191,592 | ) | (235,875 | ) | ||||||||
| Provision for income taxes | 5,763 | 2,772 | 25,659 | 21,475 | ||||||||||||
| Loss from continuing operations | (86,720 | ) | (64,458 | ) | (217,251 | ) | (257,350 | ) | ||||||||
| Income from discontinued operations, net of income tax | — | (1,088 | ) | — | 101 | |||||||||||
| Gain on sale of discontinued operations | (523 | ) | — | 2,326 | 3,345 | |||||||||||
| Net loss | (87,243 | ) | (65,546 | ) | (214,925 | ) | (253,904 | ) | ||||||||
| Less: Net loss from continuing operations attributable to noncontrolling interest | (13,228 | ) | (28,922 | ) | (59,700 | ) | (87,480 | ) | ||||||||
| Less: Net loss from discontinued operations attributable to noncontrolling interest | — | (592 | ) | — | (1,163 | ) | ||||||||||
| Net income (loss) attributable to Holdings | $ | (74,015 | ) | $ | (36,032 | ) | $ | (155,225 | ) | $ | (165,261 | ) | ||||
| Amounts attributable to Holdings | ||||||||||||||||
| Loss from continuing operations | $ | (73,492 | ) | $ | (35,536 | ) | $ | (157,551 | ) | $ | (169,870 | ) | ||||
| Income from discontinued operations | — | (496 | ) | — | 1,264 | |||||||||||
| Gain on sale of discontinued operations, net of income tax | (523 | ) | — | 2,326 | 3,345 | |||||||||||
| Net loss attributable to Holdings | $ | (74,015 | ) | $ | (36,032 | ) | $ | (155,225 | ) | $ | (165,261 | ) | ||||
| Basic income (loss) per common share attributable to Holdings | ||||||||||||||||
| Continuing operations | $ | (1.20 | ) | $ | (0.61 | ) | $ | (2.53 | ) | $ | (3.22 | ) | ||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | 0.03 | 0.06 | ||||||||||
| $ | (1.21 | ) | $ | (0.62 | ) | $ | (2.50 | ) | $ | (3.16 | ) | |||||
| Basic weighted average number of common shares outstanding | 75,236 | 75,645 | 75,236 | 75,437 | ||||||||||||
| Compass Diversified Holdings Net Income (Loss) to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (As Restated) | (As Restated) | |||||||||||||||
| Net loss | $ | (87,243 | ) | $ | (65,546 | ) | $ | (214,925 | ) | $ | (253,904 | ) | ||||
| Income from discontinued operations, net of tax | — | (1,088 | ) | — | 101 | |||||||||||
| Gain on sale of discontinued operations, net of tax | (523 | ) | — | 2,326 | 3,345 | |||||||||||
| Net loss from continuing operations | $ | (86,720 | ) | $ | (64,458 | ) | $ | (217,251 | ) | $ | (257,350 | ) | ||||
| Less: loss from continuing operations attributable to noncontrolling interest | (13,228 | ) | (28,922 | ) | (59,700 | ) | (87,480 | ) | ||||||||
| Net loss attributable to Holdings – continuing operations | $ | (73,492 | ) | $ | (35,536 | ) | $ | (157,551 | ) | $ | (169,870 | ) | ||||
| Adjustments: | ||||||||||||||||
| Distributions paid – preferred shares | (9,715 | ) | (6,345 | ) | (27,863 | ) | (18,491 | ) | ||||||||
| Amortization expense – intangibles and inventory step up | 23,254 | 23,721 | 69,722 | 75,006 | ||||||||||||
| Impairment expense | — | — | 31,515 | 8,182 | ||||||||||||
| (Gain) loss on sale of Crosman | — | (388 | ) | — | 24,218 | |||||||||||
| Tax effect – loss on sale of Crosman | — | — | — | 7,254 | ||||||||||||
| Stock compensation | 4,073 | 4,537 | 12,274 | 12,288 | ||||||||||||
| Acquisition expenses | — | — | — | 3,479 | ||||||||||||
| Integration services fee | — | 875 | 875 | 1,750 | ||||||||||||
| Other | 3,155 | 964 | 8,582 | 1,368 | ||||||||||||
| Adjusted Earnings | $ | (52,725 | ) | $ | (12,172 | ) | $ | (62,446 | ) | $ | (54,816 | ) | ||||
| Plus (less): | ||||||||||||||||
| Depreciation expense | 10,884 | 10,178 | 34,247 | 31,249 | ||||||||||||
| Income tax provision | 5,763 | 2,772 | 25,659 | 21,475 | ||||||||||||
| Interest expense | 66,721 | 31,620 | 136,668 | 86,483 | ||||||||||||
| Amortization of debt issuance costs | 826 | 1,005 | 2,922 | 3,014 | ||||||||||||
| Loss on debt modification | — | — | 2,827 | — | ||||||||||||
| Tax effect – loss on sale of Crosman | — | — | — | (7,254 | ) | |||||||||||
| Income from continuing operations attributable to noncontrolling interest | (13,228 | ) | (28,922 | ) | (59,700 | ) | (87,480 | ) | ||||||||
| Distributions paid – preferred shares | 9,715 | 6,345 | 27,863 | 18,491 | ||||||||||||
| Other (income) expense | 2,343 | 37,769 | 14,311 | 125,853 | ||||||||||||
| Adjusted EBITDA | $ | 30,299 | $ | 48,595 | $ | 122,351 | $ | 137,015 | ||||||||
| Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended September 30, 2025 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 5.11 | BOA | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | ||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (77,345 | ) | $ | 9,628 | $ | 5,399 | $ | (34,211 | ) | $ | (4,534 | ) | $ | 196 | $ | 1,318 | $ | (714 | ) | $ | 7,546 | $ | 5,997 | $ | (86,720 | ) | |||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 9,601 | 3,006 | 1,573 | — | (1,439 | ) | 76 | (72 | ) | (265 | ) | (8,643 | ) | 1,926 | 5,763 | |||||||||||||||||||||||||||||
| Interest expense, net | 61,480 | (1 | ) | (1 | ) | 5,084 | (9 | ) | (1 | ) | 21 | — | 148 | — | 66,721 | |||||||||||||||||||||||||||||
| Intercompany interest | (40,752 | ) | 3,819 | 3,515 | 16,555 | 4,037 | 2,347 | 1,908 | 4,427 | 2,152 | 1,992 | — | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | (251 | ) | 5,443 | 5,253 | 725 | 5,296 | 4,156 | 1,353 | 6,672 | 2,781 | 3,536 | 34,964 | ||||||||||||||||||||||||||||||||
| EBITDA | (47,267 | ) | 21,895 | 15,739 | (11,847 | ) | 3,351 | 6,774 | 4,528 | 10,120 | 3,984 | 13,451 | 20,728 | |||||||||||||||||||||||||||||||
| Other (income) expense | — | (257 | ) | 118 | 1,288 | 8 | (21 | ) | (268 | ) | 1,587 | 4 | (116 | ) | 2,343 | |||||||||||||||||||||||||||||
| Noncontrolling shareholder compensation | — | 571 | 1,375 | 643 | 585 | 382 | 5 | 239 | 4 | 269 | 4,073 | |||||||||||||||||||||||||||||||||
| Other (1) | — | — | — | — | — | — | — | 2,889 | 149 | 117 | 3,155 | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (47,267 | ) | $ | 22,209 | $ | 17,232 | $ | (9,916 | ) | $ | 3,944 | $ | 7,135 | $ | 4,265 | $ | 14,835 | $ | 4,141 | $ | 13,721 | $ | 30,299 | ||||||||||||||||||||
(1) Other represents non-recurring operating expenses that are included by management in the calculation of Adjusted EBITDA when analyzing monthly operating results of our subsidiaries. In the current year, the calculation of Adjusted EBITDA for Arnold includes the add-back of certain expenses that have been incurred related to the relocation of two of Arnold's facilities in the United States and severance costs related to chief executive officer at Arnold. For Altor, other includes the add-back of certain expenses incurred related to restructuring of their facilities after the acquisition of Lifoam. | ||||||||||||||||||||||||||||||||||||||||||||
| Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended September 30, 2024 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 5.11 | BOA | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | ||||||||||||||||||||||||||||||||||
| (As Restated) | (As Restated) | |||||||||||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (10,855 | ) | $ | 9,737 | $ | 3,902 | $ | (72,736 | ) | $ | (4,273 | ) | $ | (160 | ) | $ | 1,831 | $ | 2,682 | $ | 2,260 | $ | 3,154 | $ | (64,458 | ) | |||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | — | 1,782 | 1,451 | 496 | (2,315 | ) | (20 | ) | (2,223 | ) | 1,466 | 1,196 | 939 | 2,772 | ||||||||||||||||||||||||||||||
| Interest expense, net | 27,239 | (2 | ) | (4 | ) | 4,262 | (10 | ) | (3 | ) | (1 | ) | — | 139 | — | 31,620 | ||||||||||||||||||||||||||||
| Intercompany interest | (39,258 | ) | 3,334 | 4,925 | 15,080 | 4,480 | 2,907 | 2,038 | 1,735 | 1,816 | 2,943 | — | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 140 | 5,617 | 5,402 | 1,463 | 5,337 | 4,166 | 1,397 | 4,080 | 2,340 | 4,960 | 34,902 | |||||||||||||||||||||||||||||||||
| EBITDA | (22,734 | ) | 20,468 | 15,676 | (51,435 | ) | 3,219 | 6,890 | 3,042 | 9,963 | 7,751 | 11,996 | 4,836 | |||||||||||||||||||||||||||||||
| Other (income) expense | (1 | ) | 12 | (110 | ) | 37,641 | 2 | 25 | (164 | ) | 58 | — | (82 | ) | 37,381 | |||||||||||||||||||||||||||||
| Noncontrolling shareholder compensation | — | 544 | 1,504 | 459 | 828 | 540 | 186 | 237 | 4 | 235 | 4,537 | |||||||||||||||||||||||||||||||||
| Integration services fee | — | — | — | — | — | 875 | — | — | — | — | 875 | |||||||||||||||||||||||||||||||||
| Other | 3 | — | — | — | — | — | — | — | 880 | 83 | 966 | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (22,732 | ) | $ | 21,024 | $ | 17,070 | $ | (13,335 | ) | $ | 4,049 | $ | 8,330 | $ | 3,064 | $ | 10,258 | $ | 8,635 | $ | 12,232 | $ | 48,595 | ||||||||||||||||||||
| Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Nine Months Ended September 30, 2025 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 5.11 | BOA | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | ||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (105,368 | ) | $ | 18,392 | $ | 22,656 | $ | (154,653 | ) | $ | (4,710 | ) | $ | 2,785 | $ | (5,413 | ) | $ | 492 | $ | (7,395 | ) | $ | 15,963 | $ | (217,251 | ) | ||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 9,601 | 5,468 | 3,796 | (255 | ) | (511 | ) | 846 | 41 | 377 | 1,172 | 5,124 | 25,659 | |||||||||||||||||||||||||||||||
| Interest expense, net | 115,406 | (3 | ) | (3 | ) | 20,846 | (22 | ) | (8 | ) | 8 | — | 444 | — | 136,668 | |||||||||||||||||||||||||||||
| Intercompany interest | (121,688 | ) | 10,910 | 11,235 | 48,360 | 12,180 | 7,371 | 5,004 | 13,980 | 6,186 | 6,462 | — | ||||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 2,827 | — | — | — | — | — | — | — | — | — | 2,827 | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | (283 | ) | 16,746 | 15,749 | 3,793 | 15,950 | 12,475 | 4,090 | 19,787 | 8,062 | 10,522 | 106,891 | ||||||||||||||||||||||||||||||||
| EBITDA | (99,505 | ) | 51,513 | 53,433 | (81,909 | ) | 22,887 | 23,469 | 3,730 | 34,636 | 8,469 | 38,071 | 54,794 | |||||||||||||||||||||||||||||||
| Other (income) expense | 12 | (394 | ) | 223 | 13,017 | 20 | 18 | (478 | ) | 2,177 | 25 | (309 | ) | 14,311 | ||||||||||||||||||||||||||||||
| Non-controlling shareholder compensation | — | 1,738 | 4,089 | 2,185 | 1,753 | 826 | 127 | 726 | 12 | 818 | 12,274 | |||||||||||||||||||||||||||||||||
| Impairment expense | — | — | — | 31,515 | — | — | — | — | — | — | 31,515 | |||||||||||||||||||||||||||||||||
| Integration services fee | — | — | — | — | — | 875 | — | — | — | — | 875 | |||||||||||||||||||||||||||||||||
| Other (1) | — | — | — | — | — | — | — | 5,943 | 2,359 | 280 | 8,582 | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (99,493 | ) | $ | 52,857 | $ | 57,745 | $ | (35,192 | ) | $ | 24,660 | $ | 25,188 | $ | 3,379 | $ | 43,482 | $ | 10,865 | $ | 38,860 | $ | 122,351 | ||||||||||||||||||||
(1) Other represents non-recurring operating expenses that are included by management in the calculation of Adjusted EBITDA when analyzing monthly operating results of our subsidiaries. In the current year, the calculation of Adjusted EBITDA for Arnold includes the add-back of certain expenses that have been incurred related to the relocation of two of Arnold's facilities in the United States and severance costs related to chief executive officer at Arnold. For Altor, other includes the add-back of certain expenses incurred related to restructuring of their facilities after the acquisition of Lifoam. | ||||||||||||||||||||||||||||||||||||||||||||
| Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Nine Months Ended September 30, 2024 (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 5.11 | BOA | Lugano | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Sterno | Consolidated | ||||||||||||||||||||||||||||||||||
| (As Restated) | (As Restated) | |||||||||||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (27,589 | ) | $ | 18,594 | $ | 16,248 | $ | (218,166 | ) | $ | (5,261 | ) | $ | (7,764 | ) | $ | (53,368 | ) | $ | 6,076 | $ | 6,169 | $ | 7,711 | $ | (257,350 | ) | ||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | — | 4,792 | 3,920 | 1,041 | (1,731 | ) | (2,589 | ) | 7,074 | 3,192 | 3,182 | 2,594 | 21,475 | |||||||||||||||||||||||||||||||
| Interest expense, net | 77,280 | (3 | ) | (16 | ) | 8,992 | (15 | ) | (28 | ) | 53 | — | 220 | — | 86,483 | |||||||||||||||||||||||||||||
| Intercompany interest | (115,845 | ) | 10,114 | 15,716 | 40,417 | 13,526 | 7,827 | 7,620 | 5,612 | 5,313 | 9,700 | — | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 624 | 17,198 | 16,251 | 3,865 | 15,987 | 14,811 | 6,679 | 12,250 | 6,754 | 14,850 | 109,269 | |||||||||||||||||||||||||||||||||
| EBITDA | (65,530 | ) | 50,695 | 52,119 | (163,851 | ) | 22,506 | 12,257 | (31,942 | ) | 27,130 | 21,638 | 34,855 | (40,123 | ) | |||||||||||||||||||||||||||||
| Other (income) expense | 462 | 86 | 22 | 121,477 | 5 | (5 | ) | 25,734 | 2,722 | (9 | ) | (423 | ) | 150,071 | ||||||||||||||||||||||||||||||
| Non-controlling shareholder compensation | — | 1,630 | 4,352 | 1,662 | 1,823 | 1,157 | 556 | 741 | 13 | 354 | 12,288 | |||||||||||||||||||||||||||||||||
| Impairment expense | — | — | — | — | — | — | 8,182 | — | — | — | 8,182 | |||||||||||||||||||||||||||||||||
| Acquisition expenses | — | — | — | — | — | 3,479 | — | — | — | — | 3,479 | |||||||||||||||||||||||||||||||||
| Integration services fee | — | — | — | — | — | 1,750 | — | — | — | — | 1,750 | |||||||||||||||||||||||||||||||||
| Other | — | — | — | — | — | 90 | — | — | 880 | 398 | 1,368 | |||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (65,068 | ) | $ | 52,411 | $ | 56,493 | $ | (40,712 | ) | $ | 24,334 | $ | 18,728 | $ | 2,530 | $ | 30,593 | $ | 22,522 | $ | 35,184 | $ | 137,015 | ||||||||||||||||||||
| Compass Diversified Holdings Non-GAAP Adjusted EBITDA (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | (As Restated) | (As Restated) | ||||||||||||||
| Branded Consumer | ||||||||||||||||
| 5.11 | $ | 22,209 | $ | 21,024 | $ | 52,857 | $ | 52,411 | ||||||||
| BOA | 17,232 | 17,070 | 57,745 | 56,493 | ||||||||||||
| Lugano | (9,916 | ) | (13,335 | ) | (35,192 | ) | (40,712 | ) | ||||||||
| PrimaLoft | 3,944 | 4,049 | 24,660 | 24,334 | ||||||||||||
| The Honey Pot Co. (1) | 7,135 | 8,330 | 25,188 | 18,728 | ||||||||||||
| Velocity Outdoor | 4,265 | 3,064 | 3,379 | 2,530 | ||||||||||||
| Total Branded Consumer | $ | 44,869 | $ | 40,202 | $ | 128,637 | $ | 113,784 | ||||||||
| Niche Industrial | ||||||||||||||||
| Altor Solutions | 14,835 | 10,258 | 43,482 | 30,593 | ||||||||||||
| Arnold Magnetics | 4,141 | 8,635 | 10,865 | 22,522 | ||||||||||||
| Sterno | 13,721 | 12,232 | 38,860 | 35,184 | ||||||||||||
| Total Niche Industrial | $ | 32,697 | $ | 31,125 | $ | 93,207 | $ | 88,299 | ||||||||
| Corporate expense | (47,267 | ) | (22,732 | ) | (99,493 | ) | (65,068 | ) | ||||||||
| Total Adjusted EBITDA | $ | 30,299 | $ | 48,595 | $ | 122,351 | $ | 137,015 | ||||||||
(1) The above results for The Honey Pot Co. do not include management's estimate of Adjusted EBITDA, before the Company's ownership of | ||||||||||||||||
| Compass Diversified Holdings Net Sales to Pro Forma Net Sales Reconciliation (unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (As Restated) | (As Restated) | |||||||||||||||
| Net Sales | $ | 472,562 | $ | 456,553 | $ | 1,405,027 | $ | 1,294,084 | ||||||||
| Acquisitions (1) | — | — | — | 10,671 | ||||||||||||
| Pro Forma Net Sales | $ | 472,562 | $ | 456,553 | $ | 1,405,027 | $ | 1,304,755 | ||||||||
(1) Acquisitions reflects the net sales for The Honey Pot Co. on a pro forma basis as if the Company had acquired The Honey Pot Co. on January 1, 2024. | ||||||||||||||||
| Compass Diversified Holdings Subsidiary Pro Forma Net Sales (unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | (As Restated) | (As Restated) | ||||||||||||||
| Branded Consumer | ||||||||||||||||
| 5.11 | $ | 143,240 | $ | 139,218 | $ | 404,052 | $ | 387,393 | ||||||||
| BOA | 43,941 | 45,607 | 141,187 | 142,670 | ||||||||||||
| Lugano | 17,350 | 14,269 | 70,966 | 37,087 | ||||||||||||
| PrimaLoft | 13,294 | 13,686 | 61,794 | 61,518 | ||||||||||||
| The Honey Pot (1) | 34,727 | 31,545 | 103,716 | 55,018 | ||||||||||||
| Velocity Outdoor | 29,040 | 28,809 | 57,454 | 48,610 | ||||||||||||
| Total Branded Consumer | $ | 281,592 | $ | 273,134 | $ | 839,169 | $ | 732,296 | ||||||||
| Niche Industrial | ||||||||||||||||
| Altor Solutions | $ | 79,824 | 52,129 | $ | 239,386 | $ | 157,746 | |||||||||
| Arnold Magnetics | 37,686 | 46,103 | 110,126 | 130,545 | ||||||||||||
| Sterno | 73,460 | 85,187 | 216,346 | 223,814 | ||||||||||||
| Total Niche Industrial | $ | 190,970 | $ | 183,419 | $ | 565,858 | $ | 512,105 | ||||||||
| Total Subsidiary Net Sales | $ | 472,562 | $ | 456,553 | $ | 1,405,027 | $ | 1,244,401 | ||||||||
(1) Net sales for The Honey Pot Co. are pro forma as if the Company had acquired this business on January 1, 2024. | ||||||||||||||||
FAQ
What 2025 Adjusted EBITDA guidance did Compass Diversified (CODI) announce on Jan 14, 2026?
Does Compass Diversified (CODI) say it is current with SEC filings in the Jan 14, 2026 release?
When is Compass Diversified's (CODI) conference call for the Jan 14, 2026 results?
Why did Compass Diversified (CODI) not reconcile 2025 subsidiary Adjusted EBITDA to GAAP?
How does the Jan 14, 2026 release treat non-GAAP measures for CODI?
