AI Earnings Predictions for D/B/A Compass Diversified Holdings Shares of Beneficial Interest (CODI)

EX-99.1

3 exhibit991earningsreleaseq.htm

EX-99.1

Document

Exhibit 99.1

Compass Diversified Reports Second Quarter 2026 Financial Results

Westport, Conn., August 10, 2026 – 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 six months ended June 30, 2026 and filed its Quarterly Report on Form 10-Q for the period.

“In the second quarter, our subsidiaries delivered strong operating performance and cash flow,” said Elias Sabo, Chief Executive Officer of Compass Diversified. “We took concrete actions to strengthen our balance sheet, including selling Sterno’s Food Service Business at an attractive valuation and applying more than $280 million of proceeds to debt reduction. We also amended our Management Services Agreement to lower expected fees and increase alignment with shareholders by tying more of the Manager’s compensation to shareholder returns and operating performance.”

“Our performance was broad-based, with Adjusted EBITDA growth across our Branded Consumer businesses and at Arnold,” added Zach Sawtelle, Chief Operating Officer of Compass Diversified. “BOA, PrimaLoft and The Honey Pot were each up more than 25% year-over-year, and Arnold was a standout, up nearly 50%. 5.11 expanded margins despite a softer top line.”

Sawtelle continued, “Our work is not done. Our shares trade at what we believe is a meaningful discount to intrinsic value, and we remain focused on closing that gap. Our near-term priorities are straightforward: drive profitable growth, pursue divestitures where we can realize attractive value, further reduce debt and, when appropriate, efficiently return capital to shareholders. We are moving with urgency and discipline to realize value for shareholders.”

Financial Summary – GAAP Results

Year-over-year GAAP comparisons reflect the operating results of Lugano and a full quarter of Sterno’s Food Service Business in the 2025 period, versus the 2026 period, which excludes Lugano's operating results (following its deconsolidation in connection with its bankruptcy proceedings) and includes the Food Service Business through its May 1 sale date.

Q2 2026 vs Q2 2025 (GAAP)

•Net revenues were $424.0 million, down 11.4% vs Q2 2025

•Net income from continuing operations: $81.9 million vs net loss from continuing operations of $80.8 million in Q2 2025

•Net income attributable to Holdings: $81.1 million, or $0.86 per common share, vs. a net loss of $51.2 million, or $(0.88) per common share

•Cash provided by operating activities: $29.7 million, vs. cash used of $35.2 million

•Q2 2026 results included a $182.3 million gain on the sale of Sterno’s Food Service Business and a $58.0 million reduction in the fair value of CODI’s receivable from Lugano.

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.

Q2 2026 vs Q2 2025 (Non-GAAP)

•Net revenues were $410.6 million, approximately flat vs. Q2 2025

◦Branded Consumer:     $270.8 million, up 7.2%

◦Industrial:     $139.8 million, down 11.5%

•Subsidiary Adjusted EBITDA was $91.5 million, up 12.6% vs. Q2 2025

◦Branded Consumer: $69.3 million, up 24.2%

◦Industrial: $22.3 million, down 12.8%

Key Business Updates

During and subsequent to the quarter, CODI:

•Completed the sale of Sterno’s Food Service Business and applied more than $280 million of the proceeds to senior secured term loan debt.

•Amended its Management Services Agreement to reduce expected management fees beginning in 2027 and further strengthen shareholder alignment.

•Amended its senior credit facility to extend the maturity of its term loan and revolving commitments, providing financial flexibility.

•Announced a settlement to facilitate the orderly liquidation of Lugano’s assets.

•Announced that Elias Sabo will retire as Chief Executive Officer on December 31, 2026, and appointed Zach Sawtelle Chief Operating Officer and named him CEO successor.

Liquidity and Capital Resources

As of June 30, 2026, CODI had approximately $87.4 million in cash and cash equivalents and approximately $97 million in revolver availability. Total debt was $1,592.3 million, compared with

EX-99.1

2 exhibit991earningsreleaseq.htm

EX-99.1

Document

Exhibit 99.1

Compass Diversified Reports First Quarter 2026 Financial Results

Westport, Conn., May 6, 2026 – 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 ended March 31, 2026 and filed its Quarterly Report on Form 10-Q for the period.

"The first quarter of 2026 was a quarter of execution, with strong subsidiary performance led by our Consumer vertical, and a meaningful divestiture at an attractive valuation,” said Elias Sabo, Chief Executive Officer of Compass Diversified. “We are delivering against the priorities we laid out for shareholders at the beginning of the year."

Sabo continued, “A single quarter does not make a turnaround. Trust is earned through consistent execution, and that is what we expect to deliver for shareholders going forward.”

On November 16, 2025, CODI deconsolidated Lugano Holding, Inc. ("Lugano"). Accordingly, CODI’s GAAP results for the three months ended March 31, 2026 do not include Lugano’s operating results. Certain non-GAAP results and their associated growth rates are presented excluding Lugano’s 2025 results to facilitate comparisons of year-over-year performance for 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. Subsidiary details are available in the appendix.

Financial Summary – (GAAP)

Q1 2026 (GAAP)

•Net revenues were $426.9 million, down 5.9% vs Q1 2025

•Net loss from continuing operations was $30.8 million vs $49.8 million in Q1 2025

Financial Summary – (non-GAAP)

Q1 2026 (non-GAAP – Excluding Lugano in the prior year period)

•Net revenues were $426.9 million, flat to Q1 2025

▪Branded Consumer: $257.0 million, up 2.3% vs Q1 2025

▪Industrial: $169.9 million, down 3.3% vs Q1 2025

•Subsidiary Adjusted EBITDA was $83.9 million, up 6.3% vs Q1 2025

▪Branded Consumer: $59.4 million, up 11.6% vs Q1 2025

▪Industrial: $24.4 million, down 4.5% vs Q1 2025

Recent Business Updates

•Completed the sale of Sterno’s food service business for an enterprise value of $292.5 million, with net proceeds used to repay outstanding debt.

•The Sterno transaction generated proceeds to CODI of approximately $280 million, reducing senior secured indebtedness below 1.0x, sufficient to avoid second quarter milestone fees associated with excess leverage under the Company’s senior secured credit arrangements, as of June 30, 2026.

Liquidity and Capital Resources

As of March 31, 2026, CODI had approximately $65.2 million in cash and cash equivalents and approximately $100 million in revolver availability.

2026 Outlook

The Company is updating its fiscal 2026 financial guidance to reflect the sale of Sterno's food service business. The updated guidance is at or above the expectations set at the start of the year, adjusting for the divested business.

2026 Outlook

HighLow

(in millions)

Subsidiary Adjusted EBITDA

Branded Consumer$225.0 $260.0

Industrial$95.0 $105.0

Subsidiary Adjusted EBITDA$320.0 $365.0

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 to its 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 May 6, 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). Unl

EX-99.1

2 exhibit991earningsreleaseq.htm

EX-99.1

Document

Exhibit 99.1

Compass Diversified Reports Fourth Quarter and Full Year 2025 Financial Results

Westport, Conn., February 26, 2026 – 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

LowHigh

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 th