CompoSecure delivers record ROS-driven results- Husky impacted by unexpected market headwinds due to oil and resin price shock and continued tariff uncertainty
- ROS deployment accelerating across the enterprise
First Quarter Highlights
Results compared to prior year period unless otherwise noted; pro forma metrics inclusive of Husky Technologies for full quarter.
- Pro Forma Adjusted
Net Sales of$421.2 million , up 3% - GAAP Net Loss of
$235.0 million - Pro
Forma Adj . EBITDA of$82.1 million , down 16%, and ProForma Adj . EBITDA margin of 19.5%, down 430 bps
Second Quarter 2026 Outlook
Following quarterly guidance is based upon expectations for the combined results of
- Adjusted
Net Sales of$425 to$475 million - Adjusted EBITDA of
$105 to$120 million
Full Year 2026 Outlook
Following annual guidance is based upon expectations for the combined results of
- Pro Forma Adjusted
Net Sales of$1,950 to$2,100 million - Pro Forma Adjusted EBITDA of
$550 to$610 million - Pro Forma Adjusted Free Cash Flow of
$275 to$325 million - Non-GAAP year-end Net LTM Leverage of approximately 3.0x
Financial Results – First Quarter 2026
| 1Q 2026 | 1Q 2025 | |||||||||
| Reported GAAP | Pro Forma Non-GAAP (1) (2) | Reported GAAP | Pro Forma Non-GAAP (1) (2) | |||||||
| Adjusted | - | $421.2 | $410.7 | |||||||
| Adjusted EBITDA ($ in millions) | - | $82.1 | - | $97.7 | ||||||
| Reported GAAP | Adjusted Non-GAAP (2) | Reported GAAP | Adjusted Non-GAAP (2) | |||||||
| Net Income (Loss) | ( | $32.7 | $28.3 | |||||||
| EPS - Diluted | ( | $0.12 | $0.25 | |||||||
| Cash & Short-Term Investments ($ in millions) (3) | $121.6 | $71.7 | ||||||||
| Total Debt ($ in millions) | - | $2,175.0 | - | $195.0 | ||||||
(1) Pro Forma measures reflect financial results as if the business combination with Husky Technologies had occurred on
Note on Accounting Treatment
As a result of the spin-off of Resolute Holdings Management, Inc. (“Resolute Holdings”) and the execution of the management agreement with
The GAAP results presented above for the first quarter 2026 and the portion of the 2025 comparative period from
First Quarter 2026 Earnings Conference Call
GPGI’s leadership team will discuss the Company’s results during a conference call on
Date:
Time:
Dial-in registration link: Here
Live webcast registration link: Here
About GPGI
About
Founded in 2000,
About Husky Technologies, a
Founded in 1953, Husky is a technology pioneer that enables the delivery of essential needs to the global community with industry-leading expertise and service. Husky is a leader in highly engineered equipment and aftermarket services. Husky’s products are used to manufacture a wide range of plastic products, including beverage and food containers, medical devices, and consumer electronic parts. Husky provides comprehensive and integrated systems solutions that are comprised of injection molding machines, molds, hot runners, controllers, and auxiliaries. For more information, please visit Husky.co.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although GPGI believes that its plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, GPGI cannot assure you that it will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including but not limited to statements concerning GPGI’s possible or assumed future actions, business strategies, plans including with respect to cost actions, events, results of operations, demand, the implementation and anticipated impacts of the Resolute Operating System, and statements relating to macroeconomic factors including oil and resin price volatility, trade policy including tariff uncertainty, customer demand, profitability, strategic investments and otherwise with respect to, and guidance for, second quarter and full year 2026, are forward-looking statements. In some instances, these statements may be preceded by, followed by, or include the words “believes,” “estimates,” “expects,” “projects,” “outlook” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or the negatives of these terms or variations of them or similar terminology. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect GPGI’s future results and could cause those results or other outcomes to differ materially from those expressed or implied in GPGI’s forward-looking statements: the ability of GPGI to grow and manage growth profitably, implement the Resolute Operating System successfully, maintain relationships with customers, compete within its industry and retain its key employees; impacts on customers and on us of global geopolitical, economic, business, competitive and/or other factors, including tariffs, conflicts, supply chain constraints, oil and resin prices and financing constraints; risks associated with our plans and strategies including cost actions; the outcome of any legal proceedings that may be instituted against GPGI or others; future exchange and interest rates; changes in our accounting and/or financial presentation; anticipated levels and timing of demand for the products and services of GPGI’s businesses; the successful implementation of GPGI’s strategies; and other risks and uncertainties, including those under “Risk Factors” in filings that have been made or will be made with the Securities and Exchange Commission. GPGI undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Use of Non-GAAP Financial Measures
Due to the spin-off of
GPGI Contact
ir@gpgi.com
(Non-GAAP Reconciliation) ($ in millions) (unaudited) | ||||||||||||||
| GAAP to Non-GAAP Operating Results | Three Months Ended | |||||||||||||
| GAAP | Elimination of | Addition of | Addition of (1/1-1/11) | |||||||||||
| Net sales | $ | — | $ | — | $ | 407.8 | $ | 13.4 | $ | 421.2 | ||||
| Cost of sales | — | — | 252.2 | 12.3 | 264.5 | |||||||||
| Gross profit | $ | — | $ | — | $ | 155.6 | $ | 1.1 | $ | 156.7 | ||||
| Operating expenses: | ||||||||||||||
| Research and development | — | — | 8.4 | — | 8.4 | |||||||||
| Selling, general and administrative expenses | 55.6 | — | 162.8 | 13.9 | 232.3 | |||||||||
| Foreign currency losses (gains) | — | — | (1.2 | ) | (1.9 | ) | (3.1 | ) | ||||||
| Income from operations | $ | (55.6 | ) | $ | — | $ | (14.4 | ) | $ | (10.9 | ) | $ | (80.9 | ) |
| Other (expense) income: | ||||||||||||||
| Loss on remeasurement of TRA liability | (21.9 | ) | — | — | — | (21.9 | ) | |||||||
| Interest expense | — | — | (29.4 | ) | (7.1 | ) | (36.5 | ) | ||||||
| Interest income | 0.2 | — | 0.2 | — | 0.4 | |||||||||
| Loss on extinguishment of debt | — | — | (106.8 | ) | — | (106.8 | ) | |||||||
| Amortization of deferred financing costs | — | — | (0.5 | ) | — | (0.5 | ) | |||||||
| Loss of sale of assets | — | — | — | — | — | |||||||||
| Total other income (expense), net | $ | (21.7 | ) | $ | — | $ | (136.5 | ) | $ | (7.1 | ) | $ | (165.3 | ) |
| Income (loss) before income taxes | (77.3 | ) | — | (150.9 | ) | (18.0 | ) | (246.2 | ) | |||||
| Income tax (expense) benefit | $ | (3.6 | ) | $ | — | $ | (3.2 | ) | $ | — | $ | (6.8 | ) | |
| Earnings in GPGI Holdings L.L.C equity method investment | (154.1 | ) | 154.1 | — | — | — | ||||||||
| Net income (loss) | $ | (235.0 | ) | $ | 154.1 | $ | (154.1 | ) | $ | (18.0 | ) | $ | (253.0 | ) |
| Add: | |||
| Depreciation and amortization | $ | 63.7 | |
| Income tax expenses | 6.8 | ||
| Interest expense, net (1) | 36.7 | ||
| Stock-based compensation | 5.2 | ||
| Husky transaction costs | 98.0 | ||
| Loss on extinguishment and refinancing of debts | 106.8 | ||
| Loss on remeasurement of TRA liability | 21.9 | ||
| Loss on sale of assets | 0.6 | ||
| FX gain | (4.2 | ) | |
| Severance costs | 0.6 | ||
| Incremental Pro Forma Management Fee | (1.0 | ) | |
| Pro Forma Adjusted EBITDA | $ | 82.1 | |
Note: The Non-GAAP columns represent (1) a consolidation of the Company’s results with those of
(1) Includes amortization of deferred financing costs for the three months ended
(Non-GAAP Reconciliation) ($ in millions) (unaudited) | ||||||||||||||
| GAAP to Non-GAAP Operating Results | Three Months Ended | |||||||||||||
| GAAP | Elimination of | Addition of | Adjusted | |||||||||||
| Net sales | $ | 59.8 | $ | — | $ | 44.1 | $ | 103.9 | ||||||
| Cost of sales | 31.1 | — | 18.3 | 49.4 | ||||||||||
| Gross profit | $ | 28.7 | $ | — | $ | 25.8 | $ | 54.5 | ||||||
| Operating expenses: | ||||||||||||||
| Selling, general and administrative expenses | 22.7 | — | 10.1 | 32.8 | ||||||||||
| Income from operations | $ | 6.0 | $ | — | $ | 15.7 | $ | 21.7 | ||||||
| Other (expense) income: | ||||||||||||||
| Revaluation of warrant liability | 17.9 | — | — | 17.9 | ||||||||||
| Revaluation of earnout consideration liability | 11.2 | — | — | 11.2 | ||||||||||
| Change in fair value of derivative liability | — | — | — | — | ||||||||||
| Interest expense | (1.6 | ) | — | (1.7 | ) | (3.3 | ) | |||||||
| Interest income | 0.2 | — | 0.9 | 1.1 | ||||||||||
| Amortization of deferred financing costs | — | — | (0.1 | ) | (0.1 | ) | ||||||||
| Total other income (expense), net | $ | 27.7 | $ | — | $ | (0.9 | ) | $ | 26.8 | |||||
| Income (loss) before income taxes | 33.7 | 14.8 | 48.5 | |||||||||||
| Income tax (expense) benefit | $ | (27.0 | ) | $ | — | $ | — | $ | (27.0 | ) | ||||
| Earnings in GPGI Holdings L.L.C equity method investment | 14.8 | (14.8 | ) | — | — | |||||||||
| Net income (loss) | $ | 21.5 | $ | (14.8 | ) | $ | 14.8 | $ | 21.5 | |||||
| Add: | |||
| Depreciation and amortization | $ | 2.3 | |
| Income tax expense (benefit) | 27.0 | ||
| Interest expense, net (1) | 2.4 | ||
| Stock-based compensation | 5.7 | ||
| Mark to market adjustments (2) | (29.2 | ) | |
| Spin-Off cost | 5.0 | ||
| Add back actual 1Q25 Management Fee for one month | 1.1 | ||
| Add back expenses incurred on behalf of | 1.0 | ||
| Pro Forma full quarter Management Fee | (3.2 | ) | |
| Pro Forma Adjusted EBITDA | $ | 33.7 | |
Note: The Non-GAAP columns represent a consolidation of the Company’s results with those of
(1) Includes amortization of deferred financing cost and for the three months ended
(2) Includes the changes in fair value of warrant liability and earnout consideration liability for the three months ended
(Non-GAAP Reconciliation) ($ in millions) (unaudited) | ||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | |||||
2026 | 2026 | 2025 | 2025 | |||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 6.5 | $ | 121.6 | $ | 114.6 | $ | 271.6 |
| Short-term investments | — | — | — | 41.1 | ||||
| Accounts receivable | — | 328.1 | — | 44.2 | ||||
| Inventories, net | — | 411.1 | — | 44.2 | ||||
| Prepaid expenses and other current assets | 16.4 | 38.0 | 5.5 | 8.6 | ||||
| Total current assets | $ | 22.9 | $ | 898.8 | $ | 120.1 | $ | 409.7 |
| Property and equipment, net and right of use assets | — | 557.9 | — | 30.7 | ||||
| Deferred tax asset | 258.0 | 261.8 | 271.7 | 271.7 | ||||
| Intangibles assets, net | — | 1,624.1 | — | — | ||||
| — | 3,041.9 | — | — | |||||
| Other assets | — | 48.1 | — | 4.0 | ||||
| Equity method investment | 3,133.2 | — | 125.5 | — | ||||
| Total assets | $ | 3,414.1 | $ | 6,432.6 | $ | 517.3 | $ | 716.1 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 1.4 | $ | 101.8 | $ | 0.8 | $ | 12.7 |
| Accrued expenses | 3.1 | 269.6 | 1.9 | 48.7 | ||||
| Deferred revenues | — | 164.8 | — | — | ||||
| Current portion of tax receivable agreement liability | 20.4 | 20.4 | 16.2 | 16.2 | ||||
| Current portion of long-term debt | — | 9.0 | — | 15.0 | ||||
| Other current liabilities | — | 56.3 | — | 5.8 | ||||
| Total current liabilities | $ | 24.9 | $ | 621.9 | $ | 18.9 | $ | 98.4 |
| Long-term debt, net of deferred financing costs | — | 2,138.3 | — | 170.0 | ||||
| Deferred tax liability | — | 303.2 | — | |||||
| Tax receivable agreement liability | 272.9 | 272.9 | 255.2 | 255.2 | ||||
| Other liabilities | — | 62.7 | — | 7.3 | ||||
| Total liabilities | $ | 297.8 | $ | 3,399.0 | $ | 274.1 | $ | 530.9 |
| Shareholders' equity (deficit) | 3,116.3 | 3,033.6 | 243.2 | 185.2 | ||||
| Total liabilities and shareholder's equity (deficit) | $ | 3,414.1 | $ | 6,432.6 | $ | 517.3 | $ | 716.1 |
Note: The non-GAAP columns represent a consolidation of the Company’s results with those of
(Non-GAAP Reconciliation) ($ in millions) (unaudited) | ||||||
| Three Months Ended | ||||||
| GAAP | Non-GAAP | |||||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||
| Net income (loss) | $ | (235.0 | ) | $ | (253.0 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||||
| Depreciation and amortization | — | 63.8 | ||||
| Stock-based compensation expense | 2.0 | 5.3 | ||||
| Earnings in equity method investment | 154.1 | — | ||||
| Amortization of deferred financing costs | — | 1.0 | ||||
| Non-cash operating lease expense | — | — | ||||
| Revaluation of earnout consideration liability | — | — | ||||
| Revaluation of warrant liability | — | — | ||||
| Cash receipts from Holdings | — | — | ||||
| Loss on remeasurement of TRA Liability | 21.9 | 21.9 | ||||
| Loss on extinguishment of debt | — | 66.3 | ||||
| Non-cash interest on operating lease expense | — | — | ||||
| Loss/ (gain) on dispositions of property, plant and equipment and intangible assets | — | — | ||||
| Other | — | 2.4 | ||||
| Change in fair value of derivative liability | — | — | ||||
| Deferred tax expense (benefit) | 13.7 | 4.0 | ||||
| Changes in assets and liabilities | (9.3 | ) | (65.5 | ) | ||
| Net cash (used in) provided by operating activities | $ | (52.6 | ) | $ | (153.8 | ) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Investment in | $ | (2,016.8 | ) | $ | — | |
| Cash used for acquisition | — | (762.2 | ) | |||
| Purchase of property and equipment | — | (8.9 | ) | |||
| Proceeds from sale of property and equipment and intangible assets | — | 0.2 | ||||
| Acquisition of a business, net of cash and cash equivalents acquired | — | — | ||||
| Maturities of short-term investments | — | 41.1 | ||||
| Capitalized software expenditures | — | (4.3 | ) | |||
| — | — | |||||
| — | — | |||||
| Net cash used in investing activities | $ | (2,016.8 | ) | $ | (734.1 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Repayment of preference share capital | $ | — | $ | (457.4 | ) | |
| Contributions from | — | — | ||||
| Proceeds from employee stock purchase plan and exercise of options | — | — | ||||
| Payments for taxes related to net share settlement of equity awards | — | (26.6 | ) | |||
| Debt issuance cots | — | (37.5 | ) | |||
| Payment of term loan | — | — | ||||
| Proceeds from revolving credit facility | — | 50.0 | ||||
| Proceeds from issuance of common stock | 1,962.0 | 1,962.0 | ||||
| Payment of debt, net of associated fees | — | (3,309.2 | ) | |||
| Proceeds from issuance of long-term debt - net of discounts | — | 2,523.5 | ||||
| Dividend to Class A shareholders | (0.7 | ) | (0.7 | ) | ||
| Net cash obtained from PIPE in connection with Husky transaction | — | — | ||||
| Proceeds from the exercise of warrants | — | — | ||||
| Net cash provided by (used in) financing activities | $ | 1,961.3 | $ | 704.1 | ||
| Effect of exchange rate changes on cash and cash equivalents | — | (2.3 | ) | |||
| Net increase (decrease) in cash and cash equivalents | (108.1 | ) | (186.1 | ) | ||
| Cash and cash equivalents, beginning of period | 114.6 | 307.7 | ||||
| Cash and cash equivalents, end of period | $ | 6.5 | $ | 121.6 | ||
Note: The Non-GAAP column represents a consolidation of the Company’s results with those of
(Non-GAAP Reconciliation) ($ in millions, except share amounts) (unaudited) | ||||||
| Basic | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| Net (loss) income | $ | (235.0 | ) | $ | 21.4 | |
| Add (less): provision (benefit) for income taxes | 6.8 | 27.0 | ||||
| Add (less): mark-to-market adjustments (1) | — | (29.2 | ) | |||
| Add: stock-based compensation | 3.9 | 5.7 | ||||
| Add: Debt refinance costs and loss on debt extinguishment | 106.8 | — | ||||
| Add: Husky transactions costs | 92.9 | — | ||||
| Add: Loss on remeasurement of TRA Liability | 21.9 | — | ||||
| Add: Foreign exchange (gain) loss | (2.3 | ) | — | |||
| Add: Severance costs | 0.6 | — | ||||
| Add: Loss on disposal of assets | 0.6 | — | ||||
| Add: Spin-Off costs | — | 5.0 | ||||
| Add:Purchase accounting amortization and depreciation | 46.8 | — | ||||
| Adjusted net income before tax | $ | 43.0 | $ | 29.9 | ||
| Income tax expense (2) | 10.3 | 1.6 | ||||
| Adjusted net income | $ | 32.7 | $ | 28.3 | ||
| Common shares outstanding used in computing net income per share, basic: | ||||||
| Class A common shares | 269,993,148 | 102,039,611 | ||||
| Adjusted net income per share – basic | $ | 0.12 | $ | 0.28 | ||
| Diluted | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| Adjusted net income | $ | 32.7 | $ | 28.3 | ||
| Common shares outstanding used in computing earnings per share, basic: | 269,993,148 | 102,039,611 | ||||
| Warrants (3) | — | 9,878,000 | ||||
| Equity awards | 4,391,631 | 3,533,000 | ||||
| Total shares outstanding used in computing adjusted earnings per share – diluted | 274,384,779 | 115,450,611 | ||||
| Adjusted net income per share – diluted | $ | 0.12 | $ | 0.25 | ||
Note: Non-GAAP EPS does not pro forma for periods preceding the acquisition of Husky.
1. Includes the changes in fair value of warrant liability and earnout consideration liability.
2. Reflects current and deferred income tax expenses. For the three months ended
3. Applies treasury stock method with assumed exercise at average market price. No warrants were outstanding as of the three months ended
