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Sep 30
CompoSecure Q3 2025 Earnings Report
CompoSecure reported strong Q3 2025 results with double-digit growth in sales and profitability, supported by operational efficiencies and customer demand.
Key Takeaways
CompoSecure delivered strong Q3 2025 performance, with revenue up 13% YoY and gross margin expansion to 59.0%. Despite a GAAP net loss driven by non-cash items, adjusted net income and EBITDA improved significantly.
Non-GAAP revenue grew 13% YoY to $120.9 million, driven by strong domestic demand and new program wins.
Adjusted EBITDA rose to $47.7 million, up 30% from Q3 2024.
Gross margin expanded to 59.0%, reflecting operational efficiency gains.
GAAP net loss of $174.7 million was due to non-cash revaluation of warrant and earnout liabilities.
CompoSecure
CompoSecure
Forward Guidance
CompoSecure raised full-year 2025 guidance and introduced 2026 outlook with double-digit growth expectations.
Positive Outlook
- Raised 2025 non-GAAP net sales guidance to $463 million.
- Forecasts 2026 non-GAAP net sales of $510 million, a 10% increase.
- 2026 adjusted EBITDA expected to grow 12–15% to $190 million.
- Continued growth in fintech and traditional banking client base.
- Arculus gaining traction with integrated security offerings.
Challenges Ahead
- Guidance excludes any financial impact from Husky acquisition.
- GAAP losses could persist due to non-cash liabilities.
- Operating structure change post-spin-off may introduce accounting complexity.
- Capital allocation toward share buybacks and treasury stock limits flexibility.
- Heavy reliance on management fee adjustments in earnings metrics.