Compass Diversified Reports Third Quarter 2026 Financial Results
Consumer earnings growth contrasted with Industrial declines, while debt and covenant leverage decreased.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Compass Diversified (NYSE: CODI) returned to third-quarter profitability, reporting income from continuing operations of $23.2 million versus a year-earlier loss. The prior-year loss was $86.7 million. Revenue fell 10.5% to $422.9 million; comparisons include businesses subsequently divested or deconsolidated. Excluding Lugano and Sterno’s divested Food Service Business, revenue rose 0.8% and subsidiary adjusted EBITDA, an earnings measure before corporate expense and specified adjustments, increased 12.9% to $89.7 million.
Consumer earnings improved while Industrial earnings declined. Operating cash flow rose to $51.6 million from $10.7 million. Total debt was $1,571.7 million, versus $1,890.7 million at year-end. CODI narrowed its 2026 subsidiary adjusted EBITDA outlook to $330 million–$355 million, with an unchanged midpoint. Guidance includes approximately $9 million from the sold Food Service Business that will not recur following the sale.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter income from continuing operations of $23.2 million reversed a year-earlier $86.7 million loss.
- Moderate pointThird-quarter operating cash flow rose to $51.6 million from $10.7 million a year earlier.
- Moderate pointComparable third-quarter subsidiary adjusted EBITDA rose 12.9% to $89.7 million, excluding Lugano and divested Food Service.
- Moderate pointComparable third-quarter revenue increased 0.8% to $422.9 million, excluding Lugano and divested Food Service.
- Moderate pointTotal debt decreased to $1,571.7 million at September 30, 2026, from $1,890.7 million at December 31, 2025.
- Moderate pointDebt-covenant leverage declined to approximately 4.5x at September 30, 2026, from 4.8x at June 30, 2026.
- Moderate pointCash and equivalents increased to $127.167 million at September 30, 2026, from $68.015 million at year-end.
- Moderate pointThird-quarter selling, general and administrative expense fell to $130.362 million from $179.315 million a year earlier.
- Moderate pointThird-quarter net interest expense fell to $21.769 million from $66.721 million a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.CODI raised Branded Consumer expectations relative to prior guidance; 2026 subsidiary adjusted EBITDA outlook is $250 million–$270 million.
13 minor points
- Minor pointThird-quarter Holdings net income of $21.5 million, or $0.06 per common share, reversed $74.0 million, or $1.21, losses.
- Minor pointComparable Branded Consumer third-quarter revenue increased 4.3% to $275.6 million year over year.
- Minor pointComparable Branded Consumer third-quarter adjusted EBITDA increased 27.5% to $69.8 million year over year.
- Minor pointThe Honey Pot and Arnold each more than doubled third-quarter adjusted EBITDA year over year.
- Minor pointBOA third-quarter adjusted EBITDA grew 22% year over year.
- Minor pointPrimaLoft third-quarter adjusted EBITDA grew 28% year over year.
- Minor pointLugano bankruptcy distribution proceeds of nearly $30 million were applied to senior secured term loan debt.
- Minor pointThird-quarter operating income reached $31.845 million, versus an $11.067 million year-earlier operating loss.
- Minor pointThird-quarter management fees fell to $13.651 million from $16.213 million a year earlier.
- Minor pointThird-quarter income tax benefit was $20.140 million, versus a $5.763 million year-earlier provision.
- Minor pointNine-month income from continuing operations reached $74.236 million, versus a $217.251 million year-earlier loss.
- Minor pointNine-month Holdings earnings per common share reached $0.45, versus a $2.50 year-earlier loss.
- Minor point. Forward-looking: it has not happened yet and may not happen.CODI plans to generate cash for debt reduction and pursue divestitures where it sees attractive value.
Negative
- Moderate pointThird-quarter GAAP revenue declined 10.5% to $422.9 million; prior-year results included subsequently divested or deconsolidated businesses.
- Moderate pointComparable Industrial third-quarter adjusted EBITDA declined 19.6% to $19.8 million year over year.
- Moderate pointComparable Industrial third-quarter revenue declined 5.2% to $147.3 million year over year.
- Moderate point. Forward-looking: it has not happened yet and may not happen.CODI lowered Industrial expectations relative to prior guidance; 2026 subsidiary adjusted EBITDA outlook is $80 million–$85 million.
- Moderate pointNine-month affiliate receivable fair-value decrease was $57.697 million, versus none a year earlier. 6.4% of market cap
6 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Full-year guidance includes approximately $9 million of Food Service adjusted EBITDA that will not recur following its sale.
- Minor pointRimports retained shared management and other indirect costs following the Food Service Business sale.
- Minor pointThird-quarter gross profit decreased to $198.510 million from $207.715 million a year earlier.
- Minor pointThird-quarter debt modification loss was $1.038 million, versus none a year earlier.
- Minor pointThird-quarter debt issuance cost amortization increased to $1.711 million from $0.826 million a year earlier.
- Minor pointNine-month net sales declined to $1,273.827 million from $1,405.027 million a year earlier.
News Explained
As of
Key Figures
- Income from continuing operations
- $23.2 million vs. loss of $86.7 million
- Q3 2026 vs. Q3 2025
- Net revenues
- $422.9 million, down 10.5%
- Q3 2026 GAAP, year over year
- Subsidiary Adjusted EBITDA
- $89.7 million, up 12.9%
- Q3 2026, excluding Lugano and divested Sterno Food Service
- Branded Consumer Subsidiary Adjusted EBITDA
- $69.8 million, up 27.5%
- Q3 2026, excluding Lugano and divested Sterno Food Service
- Industrial Subsidiary Adjusted EBITDA
- $19.8 million, down 19.6%
- Q3 2026, excluding Lugano and divested Sterno Food Service
- Proceeds applied to debt
- Nearly $30 million
- Lugano bankruptcy distribution proceeds applied to senior secured term loan debt
- Total debt
- $1,571.7 million vs. $1,890.7 million
- September 30, 2026 vs. December 31, 2025
- Fiscal 2026 Subsidiary Adjusted EBITDA outlook
- $330 million to $355 million
- Tightened range; midpoint remains consistent with previous guidance
Previous Earnings Reports
-
Q2 Subsidiary Adjusted EBITDA rose 12.6%, while 2026 guidance remained $320–$365 million.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
form 10-q regulatory
non-gaap financial measures financial
deconsolidation financial
regulation s-k regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Income from Continuing Operations of
$23.2 million , compared with a loss of$86.7 million in the prior-year period - Subsidiary Adjusted EBITDA excluding divested assets was
$89.7 million , up12.9% year-over-year
WESTPORT, Conn., Nov. 04, 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, 2026 and filed its Quarterly Report on Form 10-Q for the period.
“Our third-quarter results demonstrate the strength of our businesses and the durability of CODI’s diversified model,” said Elias Sabo, Chief Executive Officer of Compass Diversified. “Our teams delivered while continuing to advance our strategic priorities.”
“Our consumer businesses delivered an outstanding third quarter, with Adjusted EBITDA increasing
Sawtelle continued, “Our priorities remain clear: drive profitable growth, generate cash for debt reduction and pursue divestitures where we can realize attractive value. As we reduce leverage, we will evaluate opportunities to return capital to shareholders when appropriate. We are focused on disciplined execution and a capital allocation strategy that delivers long-term value for shareholders.”
Financial Summary – GAAP Results
Year-over-year GAAP comparisons reflect the inclusion of Lugano and Sterno’s Food Service Business in the 2025 periods. The 2026 periods exclude Lugano's operating results following its deconsolidation on November 16, 2025, while Sterno’s Food Service Business is included through its May 1, 2026 sale date.
Q3 2026 vs Q3 2025 (GAAP)
- Net revenues:
$422.9 million , down10.5% - Net income from continuing operations:
$23.2 million vs net loss from continuing operations of$86.7 million - Net income attributable to Holdings:
$21.5 million , or$0.06 per common share, vs. a net loss of$74.0 million , or$1.21 per common share - Cash provided by operating activities:
$51.6 million , vs.$10.7 million
Financial Summary – Non-GAAP Results
To facilitate comparison of CODI’s continuing subsidiaries, the following non-GAAP results exclude Lugano from the prior-year period and exclude net sales and Adjusted EBITDA attributable to the divested Sterno Food Service Business from both current and prior-year periods.
Rimports and the Food Service Business historically operated and were reported together as Sterno Group under a shared management structure. Following the sale, certain shared management and other indirect costs remained with Rimports. To provide a comparable view of the continuing business, the non-GAAP results exclude the Food Service Business’s net sales and Adjusted EBITDA and reflect the costs retained by Rimports on a consistent basis in both periods.
Q3 2026 vs Q3 2025 (Non-GAAP)
- Net revenues:
$422.9 million , up0.8% - Branded Consumer:
$275.6 million , up4.3% - Industrial:
$147.3 million , down5.2%
- Branded Consumer:
- Subsidiary Adjusted EBITDA:
$89.7 million , up12.9% - Branded Consumer:
$69.8 million , up27.5% - Industrial:
$19.8 million , down19.6%
- Branded Consumer:
Key Business Updates
During and subsequent to the quarter, CODI:
- Applied nearly
$30 million in proceeds from the Lugano bankruptcy distribution to senior secured term loan debt.
Liquidity and Capital Resources
As of September 30, 2026, CODI had approximately
CODI’s leverage ratio for debt covenant purposes was approximately 4.5x as of September 30, 2026, down from 4.8x as of June 30, 2026, and senior secured net leverage was 0.5x as of September 30, 2026.
2026 Outlook
CODI is tightening its fiscal 2026 total Subsidiary Adjusted EBITDA outlook to a range of
The outlook includes approximately
CODI’s outlook reflects higher expectations for the Branded Consumer businesses and lower expectations for the Industrial businesses relative to prior guidance.
| 2026 Outlook | ||||||
| Low | High | |||||
| (in millions) | ||||||
| Subsidiary Adjusted EBITDA | ||||||
| Branded Consumer | $ | 250.0 | $ | 270.0 | ||
| Industrial | $ | 80.0 | $ | 85.0 | ||
| Subsidiary Adjusted EBITDA | $ | 330.0 | $ | 355.0 | ||
Conference Call
In conjunction with this announcement, CODI will host a conference call on November 4, 2026, at 5:00 p.m. ET / 2:00 p.m. PT with the Company’s Chief Executive Officer, Elias Sabo, Chief Operating Officer, Zach Sawtelle and Chief Financial Officer, Stephen Keller. 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 into 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, Subsidiary Adjusted EBITDA, Subsidiary Adjusted EBITDA excluding Lugano and the divested Sterno Food Service Business, Net Sales excluding Lugano, and Net Sales excluding Lugano and the divested Sterno Food Service Business are non-GAAP financial measures used by the Company to assess its performance. We have reconciled Adjusted EBITDA, Subsidiary Adjusted EBITDA and Subsidiary Adjusted EBITDA excluding Lugano and the divested Sterno Food Service Business to Income (Loss) from Continuing Operations, and non-GAAP Net Sales measures to Net Sales on the attached schedules. We consider Income (Loss) from Continuing Operations to be the most directly comparable GAAP financial measure to Adjusted EBITDA, Subsidiary Adjusted EBITDA, and Subsidiary Adjusted EBITDA excluding Lugano and the divested Sterno Food Service Business; and Net Sales to be the most directly comparable GAAP financial measure to the non-GAAP Net Sales measures. The attached schedules should be read together as continuous reconciliations of the applicable non-GAAP measures to their most directly comparable GAAP measures.
We believe that Adjusted EBITDA provides useful information to investors and reflects important financial measures, as it 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) from Continuing Operations, Adjusted EBITDA is limited in that it does not reflect the periodic costs of certain capital assets used in generating revenues of our businesses, non-cash charges associated with impairments and 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.
As used in the body of this press release, Subsidiary Adjusted EBITDA refers to the sum of Adjusted EBITDA for the applicable period attributable to each consolidated subsidiary of the Company, disregarding corporate expense, unless the context indicates otherwise. Management uses Subsidiary Adjusted EBITDA to evaluate the operating performance of subsidiaries before corporate expense. Because the measure excludes corporate expense, it does not reflect CODI’s consolidated operating results and should be considered together with the comparable GAAP measure and the other information in this release.
Subsidiary Adjusted EBITDA, excluding Lugano and the divested Sterno Food Service Business, represents Subsidiary Adjusted EBITDA after excluding Adjusted EBITDA (loss) attributable to Lugano and Adjusted EBITDA attributable to the divested Sterno Food Service Business. Net Sales excluding Lugano represents reported Net Sales after excluding Net Sales attributable to Lugano for the applicable periods. Net Sales excluding Lugano and the divested Sterno Food Service Business represent reported Net Sales after excluding Net Sales attributable to those businesses for the applicable periods. We believe these measures facilitate comparison of the operating performance and net sales of CODI’s continuing subsidiaries across periods.
Adjusted EBITDA attributable to the divested Sterno Food Service Business is calculated from Rimports’ reported results by identifying the net sales and directly attributable expenses of the Food Service Business and applying CODI’s Adjusted EBITDA methodology. Rimports and the Food Service Business historically operated and were reported together as Sterno Group under a shared management structure. Following the sale, certain shared management and other indirect costs remained with Rimports. Those costs remain in Rimports' results for all periods presented. Therefore, the exclusion of the Food Service Business does not eliminate all costs historically shared by the combined operations.
In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled our 2026 Subsidiary Adjusted EBITDA guidance to the most directly comparable GAAP measure because certain components of Income (Loss) from Continuing Operations, including potential impairment charges, acquisition- and disposition-related gains, losses and expenses, fair-value adjustments and related income-tax effects, cannot be reasonably predicted without unreasonable effort. These items could be material to our future results.
These non-GAAP financial measures are not intended to be substitutes for the most directly comparable GAAP financial measures and may differ from, or otherwise be inconsistent with, similarly titled non-GAAP financial measures used by other companies.
About Compass Diversified
CODI leverages its permanent capital base and long-term disciplined approach, maintaining controlling ownership interests in each of its subsidiaries and maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and seeks to generate strong returns through its culture of transparency, alignment and accountability.
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 Adjusted EBITDA, subsidiary Adjusted EBITDA, plans for future divestitures and return of capital and its future performance, growth, 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 management’s current expectations, estimates, forecasts and assumptions and information available to management as of the date of this press release. 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 execute divestitures and 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; 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; the amount and timing of any additional recoveries from the court-approved Lugano liquidation settlement; and litigation relating to the 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 Annual Report on Form 10-K filed with the SEC on February 27, 2026 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 (Unaudited) | |||||
| September 30, 2026 | December 31, 2025 | ||||
| (in thousands) | |||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 127,167 | $ | 68,015 | |
| Accounts receivable, net | 195,889 | 202,887 | |||
| Inventories, net | 370,228 | 404,102 | |||
| Prepaid expenses and other current assets | 65,723 | 78,398 | |||
| Due from related parties | 1,300 | 20,757 | |||
| Due from unconsolidated affiliate | — | 71,000 | |||
| Total current assets | 760,307 | 845,159 | |||
| Property, plant and equipment, net | 182,625 | 209,742 | |||
| Goodwill | 830,902 | 895,421 | |||
| Intangible assets, net | 795,144 | 892,811 | |||
| Due from unconsolidated affiliate | 9,500 | 26,000 | |||
| Other non-current assets | 171,072 | 170,051 | |||
| Total assets | $ | 2,749,550 | $ | 3,039,184 | |
| Liabilities and stockholders’ equity | |||||
| Current liabilities | |||||
| Accounts payable and accrued expenses | $ | 245,903 | $ | 259,600 | |
| Current portion, long-term debt | 75,000 | 37,500 | |||
| Other current liabilities | 47,118 | 52,519 | |||
| Total current liabilities | 368,021 | 349,619 | |||
| Deferred income taxes | 91,970 | 104,189 | |||
| Long-term debt | 1,486,272 | 1,839,817 | |||
| Other non-current liabilities | 177,640 | 171,896 | |||
| Total liabilities | 2,123,903 | 2,465,521 | |||
| Stockholders' equity | |||||
| Total stockholders' equity attributable to Holdings | 483,579 | 442,024 | |||
| Noncontrolling interest | 142,068 | 131,639 | |||
| Total stockholders' equity | 625,647 | 573,663 | |||
| Total liabilities and stockholders’ equity | $ | 2,749,550 | $ | 3,039,184 | |
| Compass Diversified Holdings Consolidated Statements of Operations (Unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net sales | $ | 422,930 | $ | 472,562 | $ | 1,273,827 | $ | 1,405,027 | |||||||
| Cost of sales | 224,420 | 264,847 | 685,996 | 792,739 | |||||||||||
| Gross profit | 198,510 | 207,715 | 587,831 | 612,288 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative expense | 130,362 | 179,315 | 396,709 | 491,804 | |||||||||||
| Management fees | 13,651 | 16,213 | 43,402 | 54,111 | |||||||||||
| Amortization expense | 22,652 | 23,254 | 68,182 | 69,722 | |||||||||||
| Impairment expense | — | — | 20,500 | 31,515 | |||||||||||
| Other operating income | — | — | (10,234 | ) | — | ||||||||||
| Operating income (loss) | 31,845 | (11,067 | ) | 69,272 | (34,864 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest expense, net | (21,769 | ) | (66,721 | ) | (73,159 | ) | (136,668 | ) | |||||||
| Amortization of debt issuance costs | (1,711 | ) | (826 | ) | (5,805 | ) | (2,922 | ) | |||||||
| Loss on debt modification | (1,038 | ) | — | (1,038 | ) | (2,827 | ) | ||||||||
| Increase (decrease) in fair value of receivable due from unconsolidated affiliate | 303 | — | (57,697 | ) | — | ||||||||||
| Gain on sale of product division | (4,338 | ) | — | 178,004 | — | ||||||||||
| Other expense, net | (239 | ) | (2,343 | ) | (3,038 | ) | (14,311 | ) | |||||||
| Net income (loss) from continuing operations before income taxes | 3,053 | (80,957 | ) | 106,539 | (191,592 | ) | |||||||||
| Provision (benefit) for income taxes | (20,140 | ) | 5,763 | 32,303 | 25,659 | ||||||||||
| Income (loss) from continuing operations | 23,193 | (86,720 | ) | 74,236 | (217,251 | ) | |||||||||
| Gain (loss) on sale of discontinued operations | 435 | (523 | ) | 2,072 | 2,326 | ||||||||||
| Net income (loss) | 23,628 | (87,243 | ) | 76,308 | (214,925 | ) | |||||||||
| Less: Net income (loss) from continuing operations attributable to noncontrolling interest | 2,084 | (13,228 | ) | 4,434 | (59,700 | ) | |||||||||
| Net income (loss) attributable to Holdings | $ | 21,544 | $ | (74,015 | ) | $ | 71,874 | $ | (155,225 | ) | |||||
| Amounts attributable to Holdings | |||||||||||||||
| Income (loss) from continuing operations | $ | 21,109 | $ | (73,492 | ) | $ | 69,802 | $ | (157,551 | ) | |||||
| Gain (loss) on sale of discontinued operations, net of income tax | 435 | (523 | ) | 2,072 | 2,326 | ||||||||||
| Net income (loss) attributable to Holdings | $ | 21,544 | $ | (74,015 | ) | $ | 71,874 | $ | (155,225 | ) | |||||
| Basic income (loss) per common share attributable to Holdings | |||||||||||||||
| Continuing operations | $ | 0.05 | $ | (1.20 | ) | $ | 0.42 | $ | (2.53 | ) | |||||
| Discontinued operations | 0.01 | (0.01 | ) | 0.03 | 0.03 | ||||||||||
| $ | 0.06 | $ | (1.21 | ) | $ | 0.45 | $ | (2.50 | ) | ||||||
| Basic weighted average number of common shares outstanding | 75,236 | 75,236 | 75,236 | 75,236 | |||||||||||
| Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three months ended September 30, 2026 (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Corporate | 5.11 | BOA | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Rimports | Consolidated | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | (5,312 | ) | $ | 11,334 | $ | 10,214 | $ | (3,492 | ) | $ | 7,481 | $ | 2,546 | $ | (1,936 | ) | $ | 1,761 | $ | 597 | $ | 23,193 | |||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | (27,176 | ) | 2,972 | 2,125 | (1,097 | ) | 2,572 | (44 | ) | (1,965 | ) | 2,240 | 233 | (20,140 | ) | |||||||||||||||||||||||
| Interest expense, net | 21,633 | (1 | ) | — | (12 | ) | 6 | 9 | — | 134 | (1 | ) | 21,768 | |||||||||||||||||||||||||
| Intercompany interest | (17,264 | ) | 2,147 | 2,225 | 3,590 | 1,495 | 1,800 | 3,866 | 2,128 | 13 | — | |||||||||||||||||||||||||||
| Loss on debt modification | 1,038 | — | — | — | — | — | — | — | — | 1,038 | ||||||||||||||||||||||||||||
| Depreciation and amortization | 1,111 | 4,971 | 5,322 | 5,313 | 4,150 | 1,522 | 6,607 | 2,647 | 3,007 | 34,650 | ||||||||||||||||||||||||||||
| EBITDA | (25,970 | ) | 21,423 | 19,886 | 4,302 | 15,704 | 5,833 | 6,572 | 8,910 | 3,849 | 60,509 | |||||||||||||||||||||||||||
| Other (income) expense | 4,036 | (44 | ) | 125 | 3 | (16 | ) | 58 | 175 | 1 | (62 | ) | 4,276 | |||||||||||||||||||||||||
| Noncontrolling shareholder compensation | — | 489 | 990 | 755 | 325 | 4 | 251 | 27 | — | 2,841 | ||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | — | — | 113 | 113 | ||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (21,934 | ) | $ | 21,868 | $ | 21,001 | $ | 5,060 | $ | 16,013 | $ | 5,895 | $ | 6,998 | $ | 8,938 | $ | 3,900 | $ | 67,739 | |||||||||||||||||
| 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 | — | ||||||||||||||||||||||||||||||||
| Loss on debt modification | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||
| Impairment expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| 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 specified operating expenses that are included by management in the calculation of Adjusted EBITDA when analyzing monthly operating results of our subsidiaries. In the third quarter of 2025, 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, 2026 (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Corporate | 5.11 | BOA | PrimaLoft | THP | Velocity Outdoor | Altor | Arnold | Rimports(1) | Consolidated | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 8,923 | $ | 23,810 | $ | 36,686 | $ | (22,771 | ) | $ | 16,787 | $ | (2,406 | ) | $ | 522 | $ | 2,314 | $ | 10,371 | $ | 74,236 | ||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 8,734 | 4,765 | 5,996 | 883 | 5,479 | 81 | (261 | ) | 2,948 | 3,678 | 32,303 | |||||||||||||||||||||||||||
| Interest expense, net | 72,833 | (3 | ) | — | (28 | ) | 17 | 25 | — | 422 | (107 | ) | 73,159 | |||||||||||||||||||||||||
| Intercompany interest | (55,609 | ) | 7,664 | 7,547 | 10,875 | 5,148 | 4,915 | 11,633 | 6,382 | 1,445 | — | |||||||||||||||||||||||||||
| Loss on debt modification | 1,038 | — | — | — | — | — | — | — | — | 1,038 | ||||||||||||||||||||||||||||
| Depreciation and amortization | 3,754 | 16,415 | 15,867 | 15,957 | 12,457 | 4,301 | 19,768 | 8,095 | 9,930 | 106,544 | ||||||||||||||||||||||||||||
| EBITDA | 39,673 | 52,651 | 66,096 | 4,916 | 39,888 | 6,916 | 31,662 | 20,161 | 25,317 | 287,280 | ||||||||||||||||||||||||||||
| Other (income) expense(2) | (117,504 | ) | (16 | ) | 249 | 14 | (82 | ) | (256 | ) | 579 | 3 | (256 | ) | (117,269 | ) | ||||||||||||||||||||||
| Non-controlling shareholder compensation | — | 1,786 | 2,942 | 1,937 | 1,008 | 12 | 601 | 79 | 315 | 8,680 | ||||||||||||||||||||||||||||
| Impairment expense | — | — | — | 20,500 | — | — | — | — | — | 20,500 | ||||||||||||||||||||||||||||
| Other(3) | — | — | — | — | — | — | (9,698 | ) | — | 338 | (9,360 | ) | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (77,831 | ) | $ | 54,421 | $ | 69,287 | $ | 27,367 | $ | 40,814 | $ | 6,672 | $ | 23,144 | $ | 20,243 | $ | 25,714 | $ | 189,831 | |||||||||||||||||
(1) Rimports includes the Adjusted EBITDA of the Sterno food service product division from January 1, 2026 through the date of sale, May 1, 2026.
(2) The amount of Other (income) expense at corporate includes the change in the fair value of the receivable due from unconsolidated affiliate (
(3) Other in the nine months ended September 30, 2026 includes the add-back of a gain on sale leaseback at Altor.
| 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 modification | 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 specified 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 the 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 Non-GAAP Adjusted EBITDA (Unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Branded Consumer | |||||||||||||||
| 5.11 | $ | 21,868 | $ | 22,209 | $ | 54,421 | $ | 52,857 | |||||||
| BOA | 21,001 | 17,232 | 69,287 | 57,745 | |||||||||||
| Lugano | — | (9,916 | ) | — | (35,192 | ) | |||||||||
| PrimaLoft | 5,060 | 3,944 | 27,367 | 24,660 | |||||||||||
| The Honey Pot Co. | 16,013 | 7,135 | 40,814 | 25,188 | |||||||||||
| Velocity Outdoor | 5,895 | 4,265 | 6,672 | 3,379 | |||||||||||
| Total Branded Consumer | $ | 69,837 | $ | 44,869 | $ | 198,561 | $ | 128,637 | |||||||
| Industrial | |||||||||||||||
| Altor Solutions | 6,998 | 14,835 | 23,144 | 43,482 | |||||||||||
| Arnold Magnetics | 8,938 | 4,141 | 20,243 | 10,865 | |||||||||||
| Rimports | 3,900 | 13,721 | 25,714 | 38,860 | |||||||||||
| Total Industrial | $ | 19,836 | $ | 32,697 | $ | 69,101 | $ | 93,207 | |||||||
| Total Subsidiary Adjusted EBITDA | 89,673 | 77,566 | 267,662 | 221,844 | |||||||||||
| Corporate expense | (21,934 | ) | (47,267 | ) | (77,831 | ) | (99,493 | ) | |||||||
| Total Adjusted EBITDA | $ | 67,739 | $ | 30,299 | $ | 189,831 | $ | 122,351 | |||||||
| Compass Diversified Holdings Subsidiary Adjusted EBITDA, Excluding Lugano and Divested Sterno Food Service Business (Unaudited) | |||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||
| Total Branded Consumer | $ | 69,837 | $ | 44,869 | $ | 198,561 | $ | 128,637 | |||||
| Less: Adjusted EBITDA (loss) attributable to Lugano | — | (9,916 | ) | — | (35,192 | ) | |||||||
| Total Branded Consumer, excluding Lugano | $ | 69,837 | $ | 54,785 | $ | 198,561 | $ | 163,829 | |||||
| Total Industrial | $ | 19,836 | $ | 32,697 | $ | 69,101 | $ | 93,207 | |||||
| Less: Adjusted EBITDA attributable to the divested Sterno Food Service Business(1) | — | 8,029 | 9,401 | 24,392 | |||||||||
| Total Industrial, excluding the divested Sterno Food Service Business | $ | 19,836 | $ | 24,668 | $ | 59,700 | $ | 68,815 | |||||
| Subsidiary Adjusted EBITDA, excluding Lugano and the divested Sterno Food Service Business | $ | 89,673 | $ | 79,453 | $ | 258,261 | $ | 232,644 | |||||
(1) Adjusted EBITDA attributable to the divested Sterno Food Service Business is calculated from the reported results of Rimports by identifying the net sales and directly attributable expenses of the Food Service Business and applying CODI’s Adjusted EBITDA methodology. The calculation does not allocate to the Food Service Business shared management or other indirect costs that were not specifically attributable to that business.
| Compass Diversified Holdings Subsidiary Net Sales (unaudited) | |||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||
| Branded Consumer | |||||||||||
| 5.11 | $ | 133,866 | $ | 143,240 | $ | 384,337 | $ | 404,052 | |||
| BOA | 52,970 | 43,941 | 164,146 | 141,187 | |||||||
| Lugano | — | 17,350 | — | 70,966 | |||||||
| PrimaLoft | 16,311 | 13,294 | 67,977 | 61,794 | |||||||
| The Honey Pot | 42,774 | 34,727 | 126,320 | 103,716 | |||||||
| Velocity Outdoor | 29,719 | 29,040 | 60,654 | 57,454 | |||||||
| Total Branded Consumer | $ | 275,640 | $ | 281,592 | $ | 803,434 | $ | 839,169 | |||
| Industrial | |||||||||||
| Altor Solutions | $ | 64,627 | 79,824 | $ | 194,931 | $ | 239,386 | ||||
| Arnold Magnetics | 47,654 | 37,686 | 131,059 | 110,126 | |||||||
| Rimports(1) | 35,009 | 73,460 | 144,403 | 216,346 | |||||||
| Total Industrial | $ | 147,290 | $ | 190,970 | $ | 470,393 | $ | 565,858 | |||
| Total Subsidiary Net Sales | $ | 422,930 | $ | 472,562 | $ | 1,273,827 | $ | 1,405,027 | |||
(1) During the second quarter of 2026, the Company completed the sale of Sterno’s food service business. Prior to the sale, Sterno distributed Rimports, its home fragrance business, to its stockholders, and Rimports remained a majority owned subsidiary of the LLC. Accordingly, the net sales presented above includes the results of Sterno’s food service business through the May 1, 2026 date of sale and the results of Rimports for all periods presented, including the three and nine months ended September 30, 2026 and 2025.
| Compass Diversified Holdings Net Sales to Non-GAAP Net Sales (excluding Lugano and the Divested Sterno Food Service Business) Reconciliation (unaudited) | ||||||||||||||
| Three Months Ended September 30, | Nine months ended September 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net sales | $ | 422,930 | $ | 472,562 | $ | 1,273,827 | $ | 1,405,027 | ||||||
| Less: net sales attributable to Lugano | — | (17,350 | ) | — | (70,966 | ) | ||||||||
| Net sales, excluding Lugano | $ | 422,930 | $ | 455,212 | $ | 1,273,827 | $ | 1,334,061 | ||||||
| Less: net sales attributable to the divested Sterno Food Service Business(1) | — | (35,665 | ) | (45,125 | ) | (107,212 | ) | |||||||
| Net sales, excluding Lugano and the divested Sterno Food Service Business | $ | 422,930 | $ | 419,547 | $ | 1,228,702 | $ | 1,226,849 | ||||||
| Total Branded Consumer | $ | 275,640 | $ | 281,592 | $ | 803,434 | $ | 839,169 | ||||||
| Less: net sales attributable to Lugano | — | (17,350 | ) | — | (70,966 | ) | ||||||||
| Total Branded Consumer, excluding Lugano | $ | 275,640 | $ | 264,242 | $ | 803,434 | $ | 768,203 | ||||||
| Total Industrial | $ | 147,290 | $ | 190,970 | $ | 470,393 | $ | 565,858 | ||||||
| Less: net sales attributable to the divested Sterno Food Service Business | — | (35,665 | ) | (45,125 | ) | (107,212 | ) | |||||||
| Total Industrial, excluding the divested Sterno Food Service Business | $ | 147,290 | $ | 155,305 | $ | 425,268 | $ | 458,646 | ||||||
| Net sales, excluding Lugano and the divested Sterno Food Service Business | $ | 422,930 | $ | 419,547 | $ | 1,228,702 | $ | 1,226,849 | ||||||
(1) Net sales attributable to the divested Sterno Food Service Business represent the net sales of those operations through the May 1, 2026 date of sale and for all prior periods presented.
| Compass Diversified Holdings Condensed Consolidated Cash Flows (unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net cash provided by (used in) operating activities | $ | 51,551 | $ | 10,674 | $ | 105,168 | $ | (53,834 | ) | ||||||
| Net cash provided by (used in) investing activities | 21,508 | (10,897 | ) | 310,635 | (33,084 | ) | |||||||||
| Net cash provided by (used in) financing activities | (32,731 | ) | (12,323 | ) | (355,195 | ) | 86,055 | ||||||||
| Foreign currency impact on cash | (604 | ) | (72 | ) | (1,456 | ) | 2,343 | ||||||||
| Net increase (decrease) in cash and cash equivalents | 39,724 | (12,618 | ) | 59,152 | 1,480 | ||||||||||
| Cash and cash equivalents - beginning of the period | 87,443 | 73,757 | 68,015 | 59,659 | |||||||||||
| Cash and cash equivalents - end of the period | $ | 127,167 | $ | 61,139 | $ | 127,167 | $ | 61,139 | |||||||
| Compass Diversified Holding | |||||||||||||||
| Selected Financial Data - Cash Flows | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Changes in operating assets and liabilities | $ | (7,642 | ) | $ | 38,220 | $ | 33,229 | $ | (12,547 | ) | |||||
| Purchases of property and equipment | $ | (6,628 | ) | $ | (10,193 | ) | $ | (17,971 | ) | $ | (34,176 | ) | |||
| Distributions paid - common shares | $ | — | $ | — | $ | — | $ | (37,618 | ) | ||||||
| Distributions paid - preferred shares | $ | (9,714 | ) | $ | (9,714 | ) | $ | (29,143 | ) | $ | (18,148 | ) | |||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Compass Diversified’s third-quarter 2026 earnings?
Compass Diversified reported $23.2 million in income from continuing operations, compared with an $86.7 million loss a year earlier. Net income attributable to Holdings was $21.5 million, or $0.06 per common share, versus a $74.0 million loss, or $1.21 per common share.
What is CODI’s updated 2026 earnings outlook?
CODI narrowed its 2026 subsidiary adjusted EBITDA outlook to $330 million–$355 million, leaving the midpoint unchanged. The outlook includes approximately $9 million generated by Sterno’s Food Service Business through its May 1, 2026 sale date. That contribution will not recur following the sale.
How much revolving credit availability did CODI have at September 30, 2026?
CODI had approximately $53.0 million in revolver availability at September 30, 2026. Senior secured net leverage was 0.5x at that date.
Why do CODI’s comparable revenue results differ from its GAAP revenue results?
CODI’s comparable revenue figures exclude Lugano and the divested Sterno Food Service Business from the applicable periods. GAAP comparisons include Lugano in 2025, before its November 16, 2025 deconsolidation, and include the Food Service Business through its May 1, 2026 sale date.
Does CODI’s subsidiary adjusted EBITDA include corporate expenses?
Subsidiary adjusted EBITDA excludes corporate expense, so it does not represent CODI’s consolidated operating results. It sums adjusted EBITDA attributable to consolidated subsidiaries and should be considered alongside income from continuing operations, the comparable GAAP measure.