Compass Diversified Shares Surge Following Restoration of $100M Credit Line Access
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Should l Buy CODI?
Source: SeekingAlpha
Stock Performance: Compass Diversified (CODI) stock surged 8.7% in midday trading after amending its credit agreement, allowing full access to $100M in revolving credit facilities.
CEO Statement: CEO Elias Sabo emphasized the company's focus on cash flow generation, reducing leverage, and exploring strategic opportunities to enhance the balance sheet.
Year-to-Date Decline: Despite the recent gain, CODI has experienced a significant decline of 77% year-to-date and 19% over the past six months.
Trading Volume: The stock's trading volume was lower than average, with approximately 865K shares traded compared to a three-month daily average of 1.86M shares.
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Analyst Views on CODI
Wall Street analysts forecast CODI stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 6.210
Low
13.00
Averages
14.00
High
15.00
Current: 6.210
Low
13.00
Averages
14.00
High
15.00
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
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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.
See More
Compass Diversified (CODI) Reports Q3 EPS Loss of $1.21, Up from $0.62 Year Ago
- Declining Financial Performance: Compass Diversified reported a Q3 EPS loss of $1.21, significantly worsening from a loss of $0.62 in the same quarter last year, indicating increased financial pressure on the company.
- Rising Expenses: Selling, general, and administrative expenses surged 23% to $179.3 million, while net interest expenses more than doubled to $66.7 million, directly impacting the company's profitability.
- Slight Revenue Growth: For the quarter ending September 30, 2025, net revenue increased by 3.5% to $472.6 million year-over-year, demonstrating some market resilience despite overall financial challenges.
- Adjusted Future Outlook: The company now expects full-year 2025 adjusted EBITDA to range between $335 million and $355 million, slightly lower than previous expectations, reflecting uncertainty about future performance.
See More
Compass Diversified (CODI) Reports Q3 Net Sales of $472.56M and Adjusted EBITDA Guidance of $335M-$355M
- 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.
See More
Compass Diversified Reports Q3 2025 Results, Adjusted EBITDA Guidance of $335M to $355M
- Financial Compliance Update: CEO Elias Sabo announced that Compass Diversified is fully current with its SEC filings for 2025, ensuring compliance with credit facilities and bond indentures, which enhances investor confidence.
- Subsidiary Performance: Excluding Lugano, the company's eight operating subsidiaries continue to deliver solid performance in an uncertain macroeconomic environment, with 2025 Adjusted EBITDA expected to reach between $335 million and $355 million, reflecting a strategic commitment to growth investment and profitability enhancement.
- Sales Performance Review: The company reported net sales of $472.6 million for Q3 2025, a 3.3% increase compared to the same period in 2024, indicating strong sales momentum despite economic challenges.
- Future Outlook and Risks: The company highlighted potential risks such as economic fluctuations and supply chain disruptions in its future performance outlook, emphasizing the importance of continuous monitoring and flexible responses to market changes to ensure long-term shareholder value.
See More
Earnings Preview: Compass Diversified and Others Set to Report After Bell
- Earnings Release Preview: Compass Diversified (CODI) is set to report earnings after the bell on Wednesday, with market expectations focusing on the effectiveness of its diversified investment strategy.
- Industry Focus: Calavo Growers (CVGW) will be closely watched as investors look for insights into how its performance in the fresh produce market impacts overall revenue.
- Market Dynamics: H.B. Fuller Company (FUL) will provide crucial data on its competitiveness in the construction and industrial adhesives market, potentially influencing future market expectations.
- Banking Sector Performance: The earnings reports from Home Bancshares (HOMB) and RF Industries, Ltd. (RFIL) will offer investors the latest insights into the banking and industrial products markets, aiding in the assessment of economic recovery progress.
See More
Compass Diversified (CODI) Earnings Transcript
See More
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.
See More
Compass Diversified (CODI) Reports Q3 EPS Loss of $1.21, Up from $0.62 Year Ago
- Declining Financial Performance: Compass Diversified reported a Q3 EPS loss of $1.21, significantly worsening from a loss of $0.62 in the same quarter last year, indicating increased financial pressure on the company.
- Rising Expenses: Selling, general, and administrative expenses surged 23% to $179.3 million, while net interest expenses more than doubled to $66.7 million, directly impacting the company's profitability.
- Slight Revenue Growth: For the quarter ending September 30, 2025, net revenue increased by 3.5% to $472.6 million year-over-year, demonstrating some market resilience despite overall financial challenges.
- Adjusted Future Outlook: The company now expects full-year 2025 adjusted EBITDA to range between $335 million and $355 million, slightly lower than previous expectations, reflecting uncertainty about future performance.
See More
Compass Diversified (CODI) Reports Q3 Net Sales of $472.56M and Adjusted EBITDA Guidance of $335M-$355M
- 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.
See More
Compass Diversified Reports Q3 2025 Results, Adjusted EBITDA Guidance of $335M to $355M
- Financial Compliance Update: CEO Elias Sabo announced that Compass Diversified is fully current with its SEC filings for 2025, ensuring compliance with credit facilities and bond indentures, which enhances investor confidence.
- Subsidiary Performance: Excluding Lugano, the company's eight operating subsidiaries continue to deliver solid performance in an uncertain macroeconomic environment, with 2025 Adjusted EBITDA expected to reach between $335 million and $355 million, reflecting a strategic commitment to growth investment and profitability enhancement.
- Sales Performance Review: The company reported net sales of $472.6 million for Q3 2025, a 3.3% increase compared to the same period in 2024, indicating strong sales momentum despite economic challenges.
- Future Outlook and Risks: The company highlighted potential risks such as economic fluctuations and supply chain disruptions in its future performance outlook, emphasizing the importance of continuous monitoring and flexible responses to market changes to ensure long-term shareholder value.
See More
Earnings Preview: Compass Diversified and Others Set to Report After Bell
- Earnings Release Preview: Compass Diversified (CODI) is set to report earnings after the bell on Wednesday, with market expectations focusing on the effectiveness of its diversified investment strategy.
- Industry Focus: Calavo Growers (CVGW) will be closely watched as investors look for insights into how its performance in the fresh produce market impacts overall revenue.
- Market Dynamics: H.B. Fuller Company (FUL) will provide crucial data on its competitiveness in the construction and industrial adhesives market, potentially influencing future market expectations.
- Banking Sector Performance: The earnings reports from Home Bancshares (HOMB) and RF Industries, Ltd. (RFIL) will offer investors the latest insights into the banking and industrial products markets, aiding in the assessment of economic recovery progress.
See More
