Compass Diversified Reports Fourth Quarter and Full Year 2025 Financial Results

2/26/26 4:10:00 PM ET

Home Furnishings

Consumer Discretionary

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WESTPORT, Conn., Feb. 26, 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 months and full year ended December 31, 2025.

"2025 was a challenging year as we navigated the Lugano investigation and completed the related restatement. Despite this, our operating companies, excluding Lugano, delivered solid performance in 2025, reflecting the strength of our diversified subsidiaries and our ability to perform across a range of economic conditions," said Elias Sabo, CEO of Compass Diversified. "We remain focused on driving profitable growth while continuing to deleverage."

Sabo continued, "Despite ongoing macro uncertainty, we are confident in our ability to generate top and bottom-line growth in 2026 for our remaining subsidiary companies. Our focus is on rebuilding investor confidence by creating consistent, long-term shareholder value through our differentiated business model, strong operating subsidiaries, and permanent capital base."

On November 16, 2025, CODI deconsolidated Lugano Holding, Inc. ("Lugano"). GAAP results include Lugano's operating results through that date and include a loss on deconsolidation of $111.9 million. Certain non-GAAP results excluding Lugano are also presented to help investors evaluate the performance of our remaining subsidiaries.

Each of CODI's subsidiaries represents an operating segment. For ease of presentation, CODI has grouped its operating segments into Branded Consumer and Industrial groups for certain results described below.

Financial Summary – Including Lugano (GAAP)

Q4 2025 (GAAP – As reported)

Net revenues were $468.6 million, down 5.1% vs Q4 2024
Net loss from continuing operations was $79.4 million, compared to $70.5 million in Q4 2024

Full Year 2025 (GAAP – As reported)

Net revenues were $1,873.6 million, up 4.8% vs 2024
- Branded Consumer: $1,114.1 million, up 5.2% vs 2024
- Industrial: $759.5 million, up 4.1% vs 2024
Net loss from continuing operations was $296.6 million, compared to $327.8 million in 2024
- Branded Consumer: net loss from continuing operations of $129.1 million compared to $309.5 million in 2024
- Industrial: net income from continuing operations of $12.6 million compared to $17.3 million in 2024

Financial Summary – Excluding Lugano (non-GAAP)

Q4 2025 (excluding Lugano, non-GAAP)

Net revenues were $460.4 million, down 2.2% vs Q4 2024
Subsidiary adjusted EBITDA was $88.8 million, up 18.4% vs Q4 2024

Full Year 2025 (excluding Lugano, non-GAAP)

Net revenues were $1,794.5 million, up 3.9% vs 2024
- Branded Consumer: $1,035.0 million, up 3.7% vs 2024
- Industrial: $759.5 million, up 4.1% vs 2024
Subsidiary Adjusted EBITDA was $345.8 million, up 8.8% vs 2024
- Branded Consumer: $219.7 million, up 13.8% vs 2024
- Industrial: $126.1 million, up 1.1% vs 2024

Recent Business Updates

Completed sale-leaseback of selected Altor facilities, generating approximately $11 million in proceeds used to pay down debt
Announced Amended Credit Facility
- Restoring full access to $100 million of revolver capacity
- Providing additional covenant flexibility to enable compliant deleveraging

Liquidity and Capital Resources

As of December 31, 2025, CODI had approximately $68.0 million in cash and cash equivalents and approximately $96 million in revolver availability.

2026 Outlook

The Company provides the following fiscal 2026 financial guidance:

	2026 Outlook
	Low		High

Subsidiary Adjusted EBITDA
Branded Consumer	$	220.0	$	260.0
Industrial	$	125.0	$	135.0
Subsidiary Adjusted EBITDA	$	345.0	$	395.0

In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, CODI has not reconciled 2026 Subsidiary Adjusted EBITDA or 2026 Adjusted EBITDA to their comparable GAAP measure because it does not provide guidance on Income (Loss) from Continuing Operations and because management cannot predict, with sufficient certainty, all of the inputs necessary to provide such a reconciliation. For the same reasons, CODI is unable to address the probable significance of the unavailable information, which could be material to future results.

Conference Call

In conjunction with this announcement, CODI will host a conference call on February 26, 2026, at 5:00 p.m. E.T. / 2:00 p.m. PT with the Company's Chief Executive Officer, Elias Sabo and the Company's 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 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). Unless the context indicates otherwise, Subsidiary Adjusted EBITDA disclosed in the press release exclude Lugano, a deconsolidated subsidiary of the Company, and corporate expenses. We believe that Adjusted EBITDA and Adjusted Earnings (Loss) provide useful information to investors and reflect important financial measures as each of Adjusted EBITDA and Adjusted Earnings (Loss) 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. As used in this press release, Subsidiary Adjusted EBITDA refers to the sum of Adjusted EBITDA for the applicable period attributable to each and every consolidated subsidiary of the Company, excluding Lugano and disregarding corporate expense, unless the context indicates otherwise.

Net Revenues (excluding Lugano) is defined as net revenues excluding Lugano. Net Revenues (excluding Lugano) is reconciled to Net Revenues. We consider Net Revenues to be the most directly comparable GAAP financial measure to Net Revenues (excluding Lugano). We believe that Net Revenues (excluding Lugano) provides useful information to investors and reflects important financial measures as it helps investors evaluate the performance of our remaining subsidiaries.

In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled 2026 Adjusted EBITDA or 2026 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 Net Revenues (excluding Lugano) 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.

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 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 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 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.

Compass Diversified Investor Relations

[email protected]


Compass Diversified Holdings Condensed Consolidated Balance Sheets

(in thousands)	December 31, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	68,015	$	59,659
Accounts receivable, net		202,887		207,172
Inventories, net		404,102		571,248
Prepaid expenses and other current assets		78,398		126,692
Due from related parties		20,757		—
Due from unconsolidated affiliate		71,000		—
Total current assets		845,159		964,771
Property, plant and equipment, net		209,742		244,746
Goodwill		895,421		895,916
Intangible assets, net		892,811		983,396
Due from unconsolidated affiliate		26,000		—
Other non-current assets		170,051		208,593
Total assets	$	3,039,184	$	3,297,422

Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	96,335	$	103,239
Accrued expenses		163,265		318,476
Due to related parties		—		18,036
Current portion, long-term debt		37,500		1,774,290
Subsidiary financing arrangements		—		169,765
Other current liabilities		52,519		49,617
Total current liabilities		349,619		2,433,423
Deferred income taxes		104,189		108,091
Long-term debt		1,839,817		—
Other non-current liabilities		171,896		225,334
Total liabilities		2,465,521		2,766,848
Stockholders' equity
Total stockholders' equity attributable to Holdings		442,024		678,620
Noncontrolling interest		131,639		(148,046	)
Total stockholders' equity		573,663		530,574
Total liabilities and stockholders' equity	$	3,039,184	$	3,297,422


Compass Diversified Holdings Consolidated Statements of Operations

	Three months ended December 31,						Year ended December 31,
(in thousands, except per share data)		2025			2024			2025			2024
Net revenues	$	468,557		$	493,929		$	1,873,584		$	1,788,013
Cost of revenues		266,453			303,280			1,059,192			1,037,594
Gross profit		202,104			190,649			814,392			750,419
Operating expenses:
Selling, general and administrative expense		168,870			166,257			660,674			587,521
Management fees		(36,174	)		19,453			17,937			74,767
Amortization expense		23,434			23,500			93,156			94,817
Impairment expense		—			—			31,515			8,182
Operating income (loss)		45,974			(18,561	)		11,110			(14,868	)
Other income (expense):
Interest expense, net		(38,602	)		(36,319	)		(175,270	)		(122,802	)
Amortization of debt issuance costs		(1,130	)		(1,004	)		(4,052	)		(4,018	)
Loss on deconsolidation of Lugano		(111,876	)		—			(111,876	)		—
Loss on sale of Crosman		—			—			—			(24,218	)
Loss on debt extinguishment		—			—			(2,827	)		—
Other income (expense), net		(353	)		(17,451	)		(14,664	)		(143,304	)
Net loss before income taxes		(105,987	)		(73,335	)		(297,579	)		(309,210	)
Provision for income taxes		(26,604	)		(2,863	)		(945	)		18,612
Loss from continuing operations		(79,383	)		(70,472	)		(296,634	)		(327,822	)
Loss from discontinued operations, net of income tax		—			(7,006	)		—			(6,905	)
Gain on sale of discontinued operations		580			8,612			2,906			11,957
Net loss		(78,803	)		(68,866	)		(293,728	)		(322,770	)
Less: Net loss attributable to noncontrolling interest		(7,613	)		(23,545	)		(67,313	)		(111,025	)
Less: Net loss from discontinued operations attributable to noncontrolling interest		—			(1,721	)		—			(2,884	)
Net loss attributable to Holdings	$	(71,190	)	$	(43,600	)	$	(226,415	)	$	(208,861	)

Basic income (loss) per common share attributable to Holdings
Continuing operations	$	(1.21	)	$	(0.75	)	$	(3.63	)	$	(3.94	)
Discontinued operations		0.01			2.45			0.04			0.11
	$	(1.20	)	$	1.70		$	(3.59	)	$	(3.83	)

Basic weighted average number of common shares outstanding		75,236			75,505			75,236			75,454

Cash distributions declared per Trust common share	$	—		$	0.25		$	0.50		$	1.00


Compass Diversified Holdings Net Income to Non-GAAP Adjusted Earnings and Non-GAAP Adjusted EBITDA (unaudited)

	Three months ended December 31,						Year ended December 31,
(in thousands)		2025			2024			2025			2024
Net loss	$	(78,803	)	$	(68,866	)	$	(293,728	)	$	(322,770	)
Loss from discontinued operations		—			(7,006	)		—			(6,905	)
Gain on sale of discontinued operations		580			8,612			2,906			11,957
Loss from continuing operations	$	(79,383	)	$	(70,472	)	$	(296,634	)	$	(327,822	)
Less: loss from continuing operations attributable to noncontrolling interest		(7,613	)		(23,545	)		(67,313	)		(111,025	)
Net loss attributable to Holdings - continuing operations	$	(71,770	)	$	(46,927	)	$	(229,321	)	$	(216,797	)
Adjustments:
Distribution paid - preferred shares		(9,714	)		(6,967	)		(37,577	)		(25,458	)
Amortization expense - intangibles and inventory step up		23,434			25,106			93,156			100,112
Impairment expense		—			—			31,515			8,182
Loss on deconsolidation of Lugano		111,876			—			111,876			—
Loss on sale of Crosman		—			—			—			24,218
Tax effect - loss on sale of Crosman		—			—			—			7,254
Stock compensation		3,854			4,057			16,128			16,345
Acquisition expenses		—			1,872			—			5,351
Integration Services Fee		—			875			875			2,625
Other		6,694			11,820			15,191			13,188
Adjusted Earnings	$	64,374		$	(10,164	)	$	1,843		$	(64,980	)
Plus (less):
Depreciation		11,065			12,642			45,312			43,889
Income taxes		(26,604	)		(2,863	)		(945	)		18,612
Interest expense, net		38,602			36,319			175,270			122,802
Amortization of debt issuance		1,130			1,004			4,052			4,018
Noncontrolling interest		(7,613	)		(23,545	)		(67,313	)		(111,025	)
Preferred distributions		9,714			6,967			37,577			25,458
Loss on debt modification		—			—			2,827			—
Tax effect - Loss on Sale of Crosman		—			—			—			(7,254	)
Other expense (income)		354			17,451			14,664			143,304
Adjusted EBITDA	$	91,022		$	37,811		$	213,287		$	174,824


Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended December 31, 2025 (Unaudited)

(in thousands)	Corporate				5.11		BOA			Lugano			PrimaLoft			THP			Velocity Outdoor			Altor Solutions			Arnold			Sterno			Consolidated
Net income (loss) from continuing operations	$	(74,817	)		9,863			6,296		$	(20,700	)	$	(4,757	)	$	1,876		$	(712	)	$	(7,563	)	$	211		$	10,920		$	(79,383	)
Adjusted for:
Provision (benefit) for income taxes		(30,653	)		3,188			1,761			—			(2,556	)		98			(136	)		(1,545	)		543			2,696			(26,604	)
Interest expense, net		36,170			(5	)		(1	)		2,493			(4	)		2			(7	)		(160	)		114			—			38,602
Intercompany interest		(30,930	)		3,655			3,202			8,284			3,975			2,159			1,548			4,174			2,157			1,776			—
Depreciation and amortization		(3,251	)		5,298			5,396			3,838			5,357			4,156			1,427			6,723			2,889			3,797			35,630
EBITDA		(103,481	)		21,999			16,654			(6,085	)		2,015			8,291			2,120			1,629			5,914			19,189			(31,755	)
Other (income) expense		—			71			85			(521	)		2			(50	)		(1,267	)		2,172			(45	)		(94	)		353
Non-controlling shareholder compensation		—			678			1,333			310			594			430			5			110			54			340			3,854
Loss on deconsolidation		111,876			—			—			—			—			—			—			—			—			—			111,876
Other⁽¹⁾		—			—			—			—			667			945			1,280			3,478			213			111			6,694
Adjusted EBITDA	$	8,395		$	22,748		$	18,072		$	(6,296	)	$	3,278		$	9,616		$	2,138		$	7,389		$	6,136		$	19,546		$	91,022


Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended December 31, 2024 (Unaudited)

(in thousands)	Corporate				5.11		BOA			Lugano			PrimaLoft			THP			Velocity Outdoor			Altor Solutions			Arnold			Sterno			Consolidated
Net income (loss) from continuing operations	$	(8,045	)		2,040			4,543		$	(57,564	)	$	(5,314	)	$	(1,997	)	$	(1,483	)	$	(441	)	$	(9,138	)	$	6,927		$	(70,472	)
Adjusted for:
Provision (benefit) for income taxes		(2,095	)		(266	)		1,042			(137	)		(2,010	)		(305	)		(264	)		(912	)		(196	)		2,280			(2,863	)
Interest expense, net		29,134			(11	)		(5	)		7,130			(55	)		(24	)		(1	)		—			151			—			36,319
Intercompany interest		(41,740	)		3,252			4,409			15,596			4,390			2,725			1,635			5,159			1,808			2,766			—
Depreciation and amortization		51			5,536			5,343			1,528			5,331			4,163			1,363			9,303			2,511			3,623			38,752
EBITDA		(22,695	)		10,551			15,332			(33,447	)		2,342			4,562			1,250			13,109			(4,864	)		15,596			1,736
Other (income) expense		(2	)		(46	)		489			18,146			176			8			(1,177	)		24			—			(167	)		17,451
Non-controlling shareholder compensation		—			499			1,331			775			559			517			(153	)		247			5			277			4,057
Acquisition expenses		—			—			—			—			—			—			—			1,872			—			—			1,872
Integration services fee		—			—			—			—			—			875			—			—			—			—			875
Other⁽¹⁾		—			—			—			—			—			—			1,500			696			9,546			78			11,820
Adjusted EBITDA	$	(22,697	)	$	11,004		$	17,152		$	(14,526	)	$	3,077		$	5,962		$	1,420		$	15,948		$	4,687		$	15,784		$	37,811


Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Year ended December 31, 2025 (Unaudited)

(in thousands)	Corporate				5.11		BOA			Lugano			PrimaLoft			THP			Velocity Outdoor			Altor Solutions			Arnold			Sterno			Consolidated
Net income (loss) from continuing operations	$	(180,185	)	$	28,255		$	28,952		$	(175,353	)	$	(9,467	)	$	4,661		$	(6,125	)	$	(7,071	)	$	(7,184	)	$	26,883		$	(296,634	)
Adjusted for:
Provision (benefit) for income taxes		(21,052	)		8,656			5,557			(255	)		(3,067	)		944			(95	)		(1,168	)		1,715			7,820			(945	)
Interest expense, net		151,576			(8	)		(4	)		23,339			(26	)		(6	)		1			(160	)		558			—			175,270
Intercompany interest		(152,618	)		14,565			14,437			56,644			16,155			9,530			6,552			18,154			8,343			8,238			—
Loss on debt modification		2,827			—			—			—			—			—			—			—			—			—			2,827
Depreciation and amortization		(3,535	)		22,044			21,145			7,631			21,307			16,631			5,517			26,510			10,951			14,319			142,520
EBITDA		(202,987	)		73,512			70,087			(87,994	)		24,902			31,760			5,850			36,265			14,383			57,260			23,038
Other (income) expense		13			(323	)		308			12,495			22			(32	)		(1,745	)		4,349			(20	)		(403	)		14,664
Non-controlling shareholder compensation		—			2,416			5,422			2,495			2,347			1,256			132			836			66			1,158			16,128
Impairment expense		—			—			—			31,515			—						—			—			—			—			31,515
Loss on deconsolidation		111,876			—			—			—			—			—			—			—			—			—			111,876
Integration services fee		—			—			—			—			—			875			—			—			—			—			875
Other⁽¹⁾		—			—			—			—			667			945			1,280			9,421			2,487			391			15,191
Adjusted EBITDA	$	(91,098	)	$	75,605		$	75,817		$	(41,489	)	$	27,938		$	34,804		$	5,517		$	50,871		$	16,916		$	58,406		$	213,287

⁽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 costs related to the retirement of 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 Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Year ended December 31, 2024 (Unaudited)

(in thousands)	Corporate				5.11		BOA			Lugano			PrimaLoft			THP			Velocity Outdoor			Altor Solutions		Arnold			Sterno			Consolidated
Net income (loss) from continuing operations	$	(35,634	)	$	20,634		$	20,791		$	(275,730	)	$	(10,575	)	$	(9,761	)	$	(54,851	)	$	5,635	$	(2,969	)	$	14,638		$	(327,822	)
Adjusted for:
Provision (benefit) for income taxes		(2,095	)		4,526			4,962			904			(3,741	)		(2,894	)		6,810			2,280		2,986			4,874			18,612
Interest expense, net		106,414			(14	)		(21	)		16,122			(70	)		(52	)		52			—		371			—			122,802
Intercompany interest		(157,585	)		13,366			20,125			56,013			17,916			10,552			9,255			10,771		7,121			12,466			—
Depreciation and amortization		675			22,734			21,594			5,391			21,318			18,974			8,042			21,553		9,265			18,473			148,019
EBITDA		(88,225	)		61,246			67,451			(197,300	)		24,848			16,819			(30,692	)		40,239		16,774			50,451			(38,389	)
Other (income) expense		460			40			511			139,623			181			3			24,557			2,746		(9	)		(590	)		167,522
Non-controlling shareholder compensation		—			2,129			5,683			2,437			2,382			1,674			403			988		18			631			16,345
Impairment expense		—			—			—			—			—						8,182			—		—			—			8,182
Acquisition expenses		—			—			—			—			—			3,479			—			1,872		—			—			5,351
Integration services fee		—			—			—			—			—			2,625			—			—		—			—			2,625
Other		—			—			—			—			—			90			1,500			696		10,426			476			13,188
Adjusted EBITDA	$	(87,765	)	$	63,415		$	73,645		$	(55,240	)	$	27,411		$	24,690		$	3,950		$	46,541	$	27,209		$	50,968		$	174,824


Compass Diversified Holdings Adjusted EBITDA (Unaudited)

	Three months ended December 31,						Year ended December 31,
(in thousands)		2025			2024			2025			2024

Branded Consumer
5.11	$	22,748		$	11,004			75,605			63,415
BOA		18,072			17,152			75,817			73,645
Lugano		(6,296	)		(14,526	)		(41,489	)		(55,240	)
PrimaLoft		3,278			3,077			27,938			27,411
The Honey Pot Co.⁽¹⁾		9,616			5,962			34,804			24,690
Velocity Outdoor		2,138			1,420			5,517			3,950
Total Branded Consumer	$	49,556		$	24,089		$	178,192		$	137,871

Industrial
Altor Solutions	$	7,389			15,948			50,871			46,541
Arnold Magnetics		6,136			4,687			16,916			27,209
Sterno		19,546			15,784			58,406			50,968
Total Industrial	$	33,071		$	36,419		$	126,193		$	124,718
Corporate expense		8,395			(22,697	)		(91,098	)		(87,765	)
Total Adjusted EBITDA	$	91,022		$	37,811		$	213,287		$	174,824

⁽¹⁾The above results for The Honey Pot Co. do not include management's estimate of Adjusted EBITDA, before the Company's ownership of $3.9 million for the year ended December 31, 2024. The Honey Pot Co. was acquired on January 31, 2024.


Compass Diversified Holdings Net Sales to Non-GAAP Net Sales (excluding Lugano) Reconciliation (unaudited)

	Three months ended December 31,						Year ended December 31,
(in thousands)		2025			2024			2025			2024

Net Sales	$	468,557		$	493,929		$	1,873,584		$	1,788,013
Less: Lugano net sales		(8,146	)		(23,358	)		(79,113	)		(60,445	)
Net Sales excluding Lugano	$	460,411		$	470,571		$	1,794,471		$	1,727,568


Compass Diversified Holdings Subsidiary Net Sales (unaudited)

	Three months ended December 31,				Year ended December 31,
(in thousands)		2025		2024		2025		2024
Branded Consumer
5.11	$	147,793	$	144,768	$	551,845	$	532,161
BOA		49,303		48,141		190,489		190,811
Lugano⁽¹⁾		8,146		23,358		79,113		60,445
PrimaLoft		14,719		12,708		76,512		74,226
The Honey Pot⁽²⁾		35,973		28,697		139,689		104,589
Velocity Outdoor		18,962		19,008		76,416		96,427
Total Branded Consumer⁽³⁾	$	274,896	$	276,680	$	1,114,064	$	1,058,659

Industrial
Altor Solutions		63,635		81,323		303,021		239,069
Arnold Magnetics		40,841		41,292		150,967		171,837
Sterno		89,185		94,634		305,532		318,448
Total Industrial	$	193,661	$	217,249	$	759,520	$	729,354

Total Subsidiary Net Sales⁽³⁾	$	468,557	$	493,929	$	1,873,584	$	1,788,013

⁽¹⁾ Lugano net sales for the three months and year ended December 31, 2025 are through November 16, 2025, on which date Lugano was deconsolidated.

⁽²⁾ Net sales for The Honey Pot Co. do not include net sales prior to the Company's ownership of $10.7 million in the year ended December 31, 2024. The Honey Pot Co. was acquired on January 31, 2024.

⁽³⁾Reconciliation of Total Branded Consumer Net Sales and Total Subsidiary Net Sales excluding Lugano:

	Three months ended December 31,						Year ended December 31,
(in thousands)		2025			2024			2025			2024
Total Branded Consumer	$	274,896		$	276,680		$	1,114,064		$	1,058,659
Less: Lugano		(8,146	)		(23,358	)		(79,113	)		(60,445	)
Total Branded Consumer		266,750			253,322			1,034,951			998,214
Industrial	$	193,661		$	217,249		$	759,520		$	729,354
Total Subsidiary Net Sales (excluding Lugano)	$	460,411		$	470,571		$	1,794,471		$	1,727,568


Compass Diversified Holdings Condensed Consolidated Cash Flows

	Three months ended December 31,						Year ended December 31,
(in thousands)		2025			2024			2025			2024

Net cash provided by (used in) operating activities	$	47,002		$	(16,106	)	$	(6,830	)	$	(151,086	)
Net cash used in investing activities		(9,528	)		(70,199	)		(42,614	)		(422,450	)
Net cash provided by (used in) financing activities		(30,967	)		75,811			55,088			184,064
Foreign currency impact on cash		369			(1,727	)		2,712			(1,278	)
Net increase (decrease) in cash and cash equivalents		6,876			(12,221	)		8,356			(390,750	)
Cash and cash equivalents - beginning of the period⁽¹⁾		61,139			71,880			59,659			450,409
Cash and cash equivalents - end of the period	$	68,015		$	59,659		$	68,015		$	59,659

⁽¹⁾Includes cash from discontinued operations of $3.8 million at January 1, 2024.

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Date	Price Target	Rating	Analyst
5/8/2025	$18.00	Buy → Neutral	B. Riley Securities
11/27/2024	$34.00	Buy	TD Cowen
12/23/2022	$26.00	Buy	Jefferies
4/8/2022	$33.00	Buy	B. Riley Securities
9/14/2021	$32.00	Perform	Oppenheimer

Compass Diversified Reports Fourth Quarter and Full Year 2025 Financial Results

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D/B/A Compass Diversified Holdings Shares of Beneficial Intere filed SEC Form 8-K: Entry into a Material Definitive Agreement, Financial Statements and Exhibits

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