CompoSecure delivers record ROS-enabled results- Husky performance in line with expectations
- ROS deployment accelerating at both companies
- Progress across the platform – reiterating full year 2026 guidance
Second Quarter Highlights
Results compared to prior year period unless otherwise noted; pro forma metrics inclusive of Husky.
- Pro Forma Adjusted
Net Sales of$473.2 million , down 4% - GAAP Net Income of
$50.3 million - Pro
Forma Adj . EBITDA of$113.9 million , down 13%, and ProForma Adj . EBITDA margin of 24.1%, down 230 bps
Reiterating Full Year 2026 Outlook
- Pro Forma Adjusted
Net Sales of$1,950 to$2,100 million , flat year-over-year at midpoint - Pro Forma Adjusted EBITDA of
$550 to$610 million , up 7% year-over-year at midpoint - Pro Forma Adjusted Free Cash Flow of
$275 to$325 million - Targeting Non-GAAP year-end Net LTM Leverage of approximately 3.0x
Financial Results – Second Quarter 2026
| 2Q 2026 | 2Q 2025 | |||||
| Reported GAAP | Pro Forma Non-GAAP (1) (2) | Reported GAAP | Pro Forma Non-GAAP (1) (2) | |||
| Adjusted | - | $473.2 | - | $493.7 | ||
| Adjusted EBITDA ($ in millions) | - | $113.9 | - | $130.2 | ||
| Reported GAAP | Adjusted Non-GAAP (2) | Reported GAAP | Adjusted Non-GAAP (2) | |||
| Net Income (Loss) ($ in millions) | $50.3 | ( | ($22.7) | |||
| EPS - Diluted | $0.17 | ( | $0.25 | |||
| Cash & Short-Term Investments ($ in millions) (3) | $114.8 | $96.5 | ||||
| Total Debt ($ in millions) | - | $2,115.0 | - | $192.5 | ||
Note: All values are $ in millions, except EPS. (1) Pro forma measures reflect financial results as if the business combination with Husky 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 second quarter 2026 and the 2025 comparative period reflect the conversion to equity method accounting. For clarity of comparisons and to best reflect the financial results, the Company is also presenting the second quarters of 2026 and 2025 on a consolidated basis consistent with historical presentation under the “Non-GAAP” headings.
Second Quarter 2026 Earnings Conference Call
GPGI’s leadership team will discuss the Company’s results during a conference call on
Date:
Time:
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, macroeconomic factors, trade policy including tariff uncertainty, customer demand, the Company’s anticipated responses to the foregoing, strategic investments and anticipated M&A activity, and guidance for 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; adverse impacts of global economic, business, competitive and/or other factors, including tariffs, regional instability, including in the
Use of Non-GAAP Financial Measures
This press release includes certain Non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in
GPGI Contact
ir@gpgi.com
(Non-GAAP Reconciliation) ($ in millions) (unaudited) | ||||||||||
| GAAP to Non-GAAP Operating Results | Three Months Ended | |||||||||
| GAAP | Elimination of Equity Method Investment | Addition of | Adjusted Non-GAAP | |||||||
| Net sales | $ | — | — | 473.2 | 473.2 | |||||
| Cost of sales | — | — | 308.2 | 308.2 | ||||||
| Gross profit | — | — | 165.0 | 165.0 | ||||||
| Operating expenses: | ||||||||||
| Selling, general and administrative expenses | 9.4 | — | 139.0 | 148.4 | ||||||
| Income (loss) from operations | (9.4 | ) | — | 26.0 | 16.6 | |||||
| Other income (expense): | ||||||||||
| Loss on remeasurement of TRA liability | (6.2 | ) | — | — | (6.2 | ) | ||||
| Interest expense | — | — | (33.1 | ) | (33.1 | ) | ||||
| Interest income | — | — | 0.1 | 0.1 | ||||||
| Gain (loss) on extinguishment of debt | — | — | 96.2 | 96.2 | ||||||
| Total other income (expense), net | (6.2 | ) | — | 63.2 | 57.0 | |||||
| Income (loss) before income taxes | (15.6 | ) | — | 89.2 | 73.6 | |||||
| Income tax (expense) benefit | (1.2 | ) | — | (22.1 | ) | (23.3 | ) | |||
| Earnings in | 67.1 | (67.1 | ) | — | — | |||||
| Net income (loss) | $ | 50.3 | (67.1 | ) | 67.1 | $ | 50.3 | |||
| Add: | ||||||||||
| Depreciation and amortization | 64.3 | |||||||||
| Income tax expenses | 23.3 | |||||||||
| Interest expense, net (1) | 33.0 | |||||||||
| Stock-based compensation | 6.1 | |||||||||
| Husky Transaction costs | 1.3 | |||||||||
| Loss (gain) on debt extinguishment | (96.2 | ) | ||||||||
| Loss (gain) on remeasurement of TRA liability | 6.2 | |||||||||
| Loss (gain) on sale of assets | 0.3 | |||||||||
| FX (gain) loss | (1.9 | ) | ||||||||
| Severance cost | 3.6 | |||||||||
| Fair value inventory step-up | 23.6 | |||||||||
| Pro Forma Adjusted EBITDA | $ | 113.9 | ||||||||
Note: The Non-GAAP columns represent 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 Equity Method Investment | Addition of | Adjusted Non- GAAP | Addition of | Pro GAAP | |||||||||
| Net sales | $ | — | — | 119.6 | 119.6 | 374.1 | 493.7 | |||||||
| Cost of sales | — | — | 50.8 | 50.8 | 245.2 | 296.0 | ||||||||
| Gross profit | — | — | 68.8 | 68.8 | 128.9 | 197.7 | ||||||||
| Operating expenses: | ||||||||||||||
| Selling, general and administrative expenses | 2.6 | — | 27.8 | 30.4 | 99.2 | 129.6 | ||||||||
| Income (loss) from operations | (2.6 | ) | — | 41.0 | 38.4 | 29.7 | 68.1 | |||||||
| Other income (expense): | ||||||||||||||
| Revaluation of warrant liability | (53.5 | ) | — | — | (53.5 | ) | — | (53.5 | ) | |||||
| Revaluation of earnout consideration liability | (10.7 | ) | — | — | (10.7 | ) | — | (10.7 | ) | |||||
| Interest expense | — | — | (3.5 | ) | (3.5 | ) | (65.0 | ) | (68.5 | ) | ||||
| Interest income | — | — | 1.4 | 1.4 | 0.3 | 1.7 | ||||||||
| Total other income (expense), net | (64.2 | ) | — | (2.1 | ) | (66.3 | ) | (64.7 | ) | (131.0 | ) | |||
| Income (loss) before income taxes | (66.8 | ) | — | 38.9 | (27.9 | ) | (35.0 | ) | (62.9 | ) | ||||
| Income tax (expense) benefit | 1.8 | — | — | 1.8 | 38.4 | 40.2 | ||||||||
| Earnings in | 38.9 | (38.9 | ) | — | — | — | — | |||||||
| Net income (loss) | $ | (26.1 | ) | (38.9 | ) | 38.9 | (26.1 | ) | 3.4 | $ | (22.7 | ) | ||
| Add: | ||||||||||||||
| Depreciation and amortization | 2.3 | 37.5 | 39.8 | |||||||||||
| Income tax expenses | (1.8 | ) | (38.4 | ) | (40.2 | ) | ||||||||
| Interest expense, net (1) | 2.1 | 64.7 | 66.8 | |||||||||||
| Stock-based compensation | 5.1 | 0.4 | 5.5 | |||||||||||
| Mark to market adjustments, net (2) | 64.1 | — | 64.1 | |||||||||||
| 0.6 | — | 0.6 | ||||||||||||
| Business transformation and other | — | 25.4 | 25.4 | |||||||||||
| Platinum management fee | — | 1.3 | 1.3 | |||||||||||
| Incremental Pro Forma Management Fee | — | (10.4 | ) | (10.4 | ) | |||||||||
| Pro Forma Adjusted EBITDA | 46.3 | 83.9 | $ | 130.2 | ||||||||||
Note: The Non-GAAP columns represent a consolidation of the Company’s results with those of
(1) Includes amortization of deferred financing cost 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 | $ | 7.7 | 114.8 | 114.6 | $ | 271.6 | |
| Short-term investments | — | — | — | 41.1 | |||
| Accounts receivable | — | 295.6 | — | 44.2 | |||
| Inventories, net | — | 322.9 | — | 44.2 | |||
| Prepaid expenses and other current assets | 3.8 | 40.2 | 5.5 | 8.6 | |||
| Income taxes receivable | 15.5 | 22.1 | — | — | |||
| Total current assets | 27.0 | 795.6 | 120.1 | 409.7 | |||
| Property and equipment, net | — | 572.0 | — | 21.6 | |||
| Deferred tax asset | 263.3 | 291.1 | 271.7 | 271.7 | |||
| Intangibles assets, net | — | 1,711.8 | — | 1.9 | |||
| Right of use assets, net | — | 66.0 | — | 8.9 | |||
| — | 2,916.5 | — | — | ||||
| Other assets | — | 13.9 | — | 1.6 | |||
| Equity method investment | 3,172.1 | — | 125.5 | — | |||
| Total assets | $ | 3,462.4 | 6,366.9 | 517.3 | $ | 715.4 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | $ | 2.2 | 89.4 | 0.9 | $ | 12.7 | |
| Accrued expenses | 3.0 | 262.4 | 1.8 | 50.8 | |||
| Deferred revenues | — | 183.4 | — | — | |||
| Current portion of tax receivable agreement liability | 18.5 | 18.5 | 16.2 | 16.2 | |||
| Current portion of long-term debt | — | 12.0 | — | 15.0 | |||
| Other current liabilities | — | 59.7 | — | 0.1 | |||
| Total current liabilities | 23.7 | 625.4 | 18.9 | 94.8 | |||
| Long-term debt, net of deferred financing costs | — | 2,076.6 | — | 169.1 | |||
| Deferred tax liability | — | 214.9 | — | — | |||
| Tax receivable agreement liability | 266.4 | 266.4 | 255.2 | 255.2 | |||
| Other liabilities | — | 99.2 | — | 7.3 | |||
| Total liabilities | 290.1 | 3,282.5 | 274.1 | 526.4 | |||
| Shareholders' equity (deficit) | 3,172.3 | 3,084.4 | 243.2 | 189.0 | |||
| Total liabilities and shareholder's equity (deficit) | $ | 3,462.4 | 6,366.9 | 517.3 | $ | 715.4 | |
Note: The non-GAAP columns represent a consolidation of the Company’s results with those of
(Non-GAAP Reconciliation) ($ in millions) (unaudited) | ||||||
| Six Months Ended | ||||||
| GAAP | Non-GAAP | |||||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||
| Net income (loss) | $ | (184.7 | ) | $ | (202.7 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||||
| Depreciation and amortization | — | 128.1 | ||||
| Stock-based compensation expense | 5.3 | 11.4 | ||||
| (Earnings) losses in equity method investment | 87.0 | — | ||||
| Distributions from | 20.1 | — | ||||
| Amortization of deferred financing costs | — | 1.9 | ||||
| Non-cash operating lease expense | — | 8.0 | ||||
| Fair value inventory step-up | — | 23.6 | ||||
| Unrealized foreign exchange loss (gain) | — | (4.1 | ) | |||
| Deferred tax benefit | 8.6 | 15.2 | ||||
| Gain on debt extinguishment | — | (29.9 | ) | |||
| Loss on remeasurement of tax receivable agreement liability | 28.1 | 28.1 | ||||
| Other | — | 3.9 | ||||
| Changes in assets and liabilities | (8.4 | ) | (60.2 | ) | ||
| Net cash (used in) provided by operating activities | (44.0 | ) | (76.7 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Investment in | (2,120.4 | ) | — | |||
| Distributions from | 111.6 | |||||
| Cash used for acquisition | — | (762.2 | ) | |||
| Purchase of property and equipment | — | (21.2 | ) | |||
| Proceeds from sale of property and equipment and intangible assets | — | 0.2 | ||||
| Maturities of short-term investments | — | 41.1 | ||||
| Capitalized software expenditures | — | (7.4 | ) | |||
| Net cash used in investing activities | (2,008.8 | ) | (749.5 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Repayment of preference share capital | — | (457.4 | ) | |||
| Payments for taxes related to net share settlement of equity awards | — | (26.6 | ) | |||
| Debt issuance costs | — | (37.1 | ) | |||
| Proceeds from revolving credit facility | — | 50.0 | ||||
| Proceeds from issuance of Class A common stock in relation to Husky Transaction | 1,962.0 | 1,962.0 | ||||
| Payment of debt, net of associated fees | — | (3,369.4 | ) | |||
| Proceeds from issuance of long-term debt - net of discounts | — | 2,523.5 | ||||
| Payment of tax receivable agreement liability | (14.6 | ) | (14.6 | ) | ||
| Dividends to Class A shareholders | (1.5 | ) | (1.5 | ) | ||
| Net cash provided by (used in) financing activities | 1,945.9 | 628.9 | ||||
| Effect of exchange rate changes on cash and cash equivalents | — | 4.4 | ||||
| Net increase (decrease) in cash and cash equivalents | (106.9 | ) | (192.9 | ) | ||
| Cash and cash equivalents, beginning of period | 114.6 | 307.7 | ||||
| Cash and cash equivalents, end of period | $ | 7.7 | $ | 114.8 | ||
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 income (loss) | $ | 50.3 | $ | (26.1 | ) | |
| Add: | ||||||
| Provision (benefit) for income taxes | 23.3 | (1.8 | ) | |||
| Mark-to-market adjustments (1) | — | 64.1 | ||||
| Stock-based compensation | 6.1 | 5.1 | ||||
| Loss (gain) on debt extinguishment | (96.2 | ) | — | |||
| Husky Transaction costs | 1.3 | — | ||||
| Loss (gain) on remeasurement of TRA liability | 6.2 | — | ||||
| FX (gain) loss | (1.9 | ) | — | |||
| Severance cost | 3.6 | — | ||||
| Loss (gain) on sale of assets | 0.3 | — | ||||
| — | 0.6 | |||||
| Fair value inventory step-up | 23.6 | — | ||||
| Purchase accounting amortization and depreciation | 50.3 | — | ||||
| Adjusted net income before tax | 66.9 | 41.9 | ||||
| Income tax expense (2) | 16.1 | 13.5 | ||||
| Adjusted net income | $ | 50.8 | $ | 28.4 | ||
| Common shares outstanding used in computing net income per share - basic: | ||||||
| Class A common shares | 289,863,943 | 102,321,754 | ||||
| Adjusted net income per share – basic | $ | 0.18 | $ | 0.28 | ||
| Diluted | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| Adjusted net income | 50.8 | 28.4 | ||||
| Common shares outstanding used in computing earnings per share, basic: | 289,863,943 | 102,321,754 | ||||
| Warrants (3) | — | 9,878,000 | ||||
| Equity awards | 2,486,887 | 2,694,000 | ||||
| Total shares outstanding used in computing adjusted earnings per share – diluted | 292,350,830 | 114,893,754 | ||||
| Adjusted net income per share – diluted | $ | 0.17 | $ | 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
