BOA & PrimaLoft Owner Compass Diversified Reports Fourth Quarter and Full Year 2025 Financial Results

Compass Diversified an owner of leading middle-market businesses, has announced 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:

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.