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Dec 31, 2024
CompoSecure Q4 2024 Earnings Report
CompoSecure reported modest revenue growth but a significant net loss in Q4 2024.
Key Takeaways
CompoSecure posted Q4 2024 revenue of $100.9 million, up 1% year-over-year. Despite higher sales, the company reported a net loss of $48.4 million, driven by changes in fair value liabilities. Adjusted EPS came in at $0.20 (diluted), reflecting a decrease from the previous year. Adjusted EBITDA declined by 10% to $33.6 million due to investments in M&A capabilities.
Revenue increased 1% to $100.9 million in Q4 2024.
Net loss widened to $48.4 million from a profit of $31.0 million in Q4 2023.
Adjusted EPS (diluted) was $0.20, down from $0.24 in the prior year.
Adjusted EBITDA declined 10% to $33.6 million.
CompoSecure
CompoSecure
Forward Guidance
CompoSecure expects mid-single-digit growth in both Net Sales and Adjusted EBITDA for FY 2025, supported by strong product innovations and cost management initiatives.
Positive Outlook
- Steady revenue growth with new product innovations.
- Increased contributions from Arculus business.
- Strengthened balance sheet with reduced net debt.
- Positive momentum in international sales growth.
- Continued investment in operational efficiencies.
Challenges Ahead
- Net loss impacted by changes in fair value liabilities.
- Decline in adjusted EBITDA due to higher investments.
- Lower gross margin attributed to inflationary pressures.
- Potential volatility in market demand for metal payment cards.
- Uncertainty surrounding the impact of the Resolute Holdings spin-off.