Compass Diversified (CODI) Reports Q3 Net Sales of $472.56M and Adjusted EBITDA Guidance of $335M-$355M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: seekingalpha
- Financial Performance: Compass Diversified reported a Q3 GAAP EPS of -$1.21 with net sales of $472.56 million, reflecting a modest year-over-year growth of 3.5%, indicating weak performance under market pressures and ongoing profitability challenges.
- EBITDA Guidance: The company anticipates full-year 2025 subsidiary Adjusted EBITDA between $335 million and $355 million, excluding the impact of Lugano Holding, Inc., which reflects cautious optimism about future profitability amid ongoing concerns related to the Lugano incident.
- Stock Price Reaction: Shares of Compass Diversified fell 2.78% in after-hours trading, signaling negative investor sentiment towards the earnings report and future outlook, which may impact the company's ability to raise capital in the market.
- Audit Investigation Impact: The ongoing financial restatement and audit investigation, particularly concerning the fraud linked to Lugano, could erode investor confidence and negatively affect the company's future business development and market performance.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on CODI
About CODI
Compass Diversified Holdings is engaged in owning and managing a diverse set of defensible, middle-market businesses across the branded consumer, industrial, healthcare, and critical outsourced services sectors. It categorizes its businesses into two separate groups: branded consumer businesses and industrial businesses. Its segments include 5.11 Acquisition Corp. (5.11), Boa Holdings Inc. (BOA), Lugano Holdings, Inc. (Lugano), Relentless Topco, Inc. (PrimaLoft), THP Topco, Inc., CBCP Products, LLC, AMTAC Holdings, LLC (Arnold), FFI Compass, Inc. (Altor Solutions or Altor) and SternoCandleLamp Holdings, Inc. (Sterno). 5.11 is a provider of purpose-built technical apparel and gear for law enforcement, firefighters, EMS, and military special operations as well as outdoor and adventure enthusiasts. BOA is a creator of the patented BOA Fit System, which consists of three integral parts: a micro-adjustable dial, high-tensile lightweight laces, and low friction lace guides.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Compass Diversified (CODI) Earnings Transcript
Continue Reading
Compass Diversified Holdings Reports $73.49M Loss in Q3 Despite 3.5% Revenue Growth
- Financial Performance: Compass Diversified Holdings reported a Q3 loss of $73.49 million, translating to a loss of $1.20 per share, which is a significant deterioration from last year's loss of $35.54 million or $0.61 per share, indicating increasing financial pressure on the company.
- Revenue Growth: Despite the worsening losses, the company achieved a 3.5% year-over-year revenue increase in Q3, reaching $472.56 million compared to $456.55 million last year, suggesting some resilience in sales amid challenging market conditions.
- Year-over-Year Comparison: The nearly doubling of the loss compared to last year highlights the company's challenges in cost control and profitability, which could impact investor confidence and future financing capabilities.
- Market Outlook: In the current economic environment, Compass Diversified Holdings must implement effective measures to improve profitability to address ongoing financial pressures and restore market trust.
Continue Reading