Compass Diversified (CODI) investor relations material

Executive summary

• 2025 was marked by operational disruptions, including the Lugano investigation and deconsolidation, but core subsidiaries demonstrated resilience and delivered growth across economic cycles.

• Excluding Lugano, mid-single-digit revenue growth and high single-digit subsidiary adjusted EBITDA growth were achieved.

• Focus for 2026 is on deleveraging, operational execution, profitable growth, and rebuilding investor confidence.

• Multiple subsidiary sale processes have been initiated to accelerate deleveraging and restore financial flexibility.

Financial highlights

• Q4 2025 GAAP net revenue was $468.6 million, down 5.1% year-over-year, primarily due to Lugano's deconsolidation.

• Q4 GAAP net loss was $78.8 million, including over $25 million in one-time Lugano-related costs; full-year GAAP net loss was $293.7 million, including $60 million in investigation and restatement expenses.

• Full-year GAAP net revenues were $1.9 billion, up 4.8%; excluding Lugano, net sales were $1.8 billion (+3.9%), with subsidiary adjusted EBITDA at $345.8 million (+8.8%).

• Ended 2025 with $68 million in cash and $96 million available on the revolver; leverage ratio at 5.47x.

Outlook and guidance

• 2026 subsidiary adjusted EBITDA expected between $345 million and $395 million, with consumer at $220–$260 million and industrial at $125–$135 million.

• CapEx guidance for 2026 is $30–$40 million; cash management fees expected at $25–$30 million.

• Guidance excludes potential impacts from acquisitions, divestitures, or significant trade environment changes.

• Long-term leverage target is 3–3.5x; aiming for ~4x by end of 2026, requiring asset sales to achieve.