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Jun 30
CompoSecure Q2 2025 Earnings Report
CompoSecure reported record second quarter 2025 financial results, exceeding expectations across all key metrics with strong top-line growth and record profitability.
Key Takeaways
CompoSecure delivered a strong second quarter in 2025, achieving record financial results driven by accelerating sales and improved profitability. The company saw robust domestic demand from both traditional banks and fintechs, alongside a net positive quarter for Arculus. Significant gross margin improvement was noted, attributed to the CompoSecure Operating System (COS), which is enhancing execution and profitability. The company also raised its full-year 2025 guidance.
Non-GAAP Net Sales increased by 10% year-over-year to $119.6 million, driven by strong domestic demand from traditional financial institutions and fintech partners.
Non-GAAP Gross Profit rose to $68.8 million, with gross margin expanding to 57.5%, reflecting improved manufacturing efficiencies and favorable product mix.
Non-GAAP Adjusted Net Income increased to $28.4 million, and Non-GAAP Pro Forma Adjusted EBITDA reached $46.3 million, demonstrating enhanced profitability.
The company launched new customer programs with major players like Chase Sapphire Reserve, Crypto.com, and Coinbase, including the first crypto card on the American Express network.
CompoSecure
CompoSecure
Forward Guidance
For the full year 2025, CompoSecure now anticipates Non-GAAP Net Sales of approximately $455 million and Pro Forma Adjusted EBITDA of approximately $158 million, an increase from prior guidance of mid-single-digit growth for both metrics. This updated outlook reflects continued commercial and operational momentum in the second half of the year and ongoing foundational investments.
Positive Outlook
- Raised full-year 2025 guidance for Non-GAAP Net Sales to approximately $455 million.
- Raised full-year 2025 guidance for Pro Forma Adjusted EBITDA to approximately $158 million.
- Anticipates continued commercial momentum in the second half of the year.
- Expects ongoing operational momentum to contribute to performance.
- Guidance includes foundational investments, suggesting future growth.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the report.
- The report does not detail potential headwinds or challenges for the second half of the year.
- No specific risks to achieving the raised guidance were outlined.
- The impact of potential economic downturns on future performance is not discussed.
- No mention of increased competition or market saturation as potential future challenges.