Key Highlights

  • Net revenues were USD 422.93 million against an estimate of USD 410.52 million and USD 472.56 million a year earlier.
  • EPS was USD 0.84 against an estimate of USD 0.07, while GAAP income per common share was USD 0.06.
  • Net income was USD 23.63 million against a net loss of USD 87.24 million in the third quarter of 2025.
  • The Lugano Liquidation plan became effective on September 30, 2026, after USD 29.8 million was received on September 29.

Compass Diversified Holdings (NYSE:CODI) reported third quarter net revenues of USD 422.93 million, against USD 472.56 million a year earlier and an estimate of USD 410.52 million. EPS was USD 0.84 against an estimate of USD 0.07, and GAAP basic and diluted income per common share was USD 0.06. The quarter also marked the effective date of the Chapter 11 plan of liquidation for its former Subsidiary Lugano.

Results for the Quarter

Gross profit was USD 198.51 million against USD 207.72 million, a Margin of 46.9% against 44.0%. Selling, general and administrative expense was USD 130.36 million against USD 179.32 million. Operating Income was USD 31.85 million, against an operating loss of USD 11.07 million.

Interest expense was USD 21.77 million against USD 66.72 million. The company recorded a USD 4.34 million loss on the sale of a product division and a USD 20.14 million income tax benefit. Net Income was USD 23.63 million, against a net loss of USD 87.24 million a year earlier.

Net revenues fell by USD 49.6 million, which the company tied mainly to lower Revenue at Rimports, Altor and 5.11. The Sterno division's USD 35.7 million of third quarter 2025 revenue did not recur following the May 1, 2026 sale, and Lugano's USD 17.4 million of prior-year revenue did not recur after its deconsolidation.

Branded Consumer and Industrial Businesses

Branded Consumer net revenues were USD 275.64 million against USD 281.59 million. 5.11 reported USD 133.87 million against USD 143.24 million, BOA USD 52.97 million against USD 43.94 million, The Honey Pot Co. USD 42.77 million against USD 34.73 million, PrimaLoft USD 16.31 million against USD 13.29 million and Velocity USD 29.72 million against USD 29.04 million.

Industrial net revenues were USD 147.29 million against USD 190.97 million. Altor reported USD 64.63 million against USD 79.82 million, Arnold USD 47.65 million against USD 37.69 million and Rimports USD 35.01 million against USD 73.46 million.

Lugano, Cash and Debt

Lugano filed for Chapter 11 on November 16, 2025 and was deconsolidated. The plan was confirmed on September 24, 2026 and became effective on September 30, 2026. On September 29 the company received a USD 29.8 million initial distribution on its secured claim, which was used to repay part of the 2022 Term Loan in October 2026. It then received a Special Beneficial Interest in the Lugano Liquidation Trust, carried at an estimated Fair Value of USD 9.5 million. Management said the timing and amount of ultimate recoveries remain uncertain.

Cash and cash equivalents were USD 127.2 million at September 30, against USD 68.0 million at year end 2025. Debt included USD 1,029.4 million of 5.250% senior notes due 2029, USD 308.8 million of 5.000% senior notes due 2032 and USD 233.5 million under the term loans, with no revolving borrowings outstanding and net availability of USD 53.0 million. Over nine months, USD 319.0 million of term-loan repayments were funded by the Altor sale-leaseback and the Sterno food service sale.

The company suspended its quarterly common distribution on May 27, 2025, and no common distributions have been paid since April 24, 2025.

What Management Pointed To

Net revenues of USD 422.93 million sit alongside net income of USD 23.63 million, cash of USD 127.2 million and a Special Beneficial Interest valued at USD 9.5 million. Management named the October 2026 term loan repayment using the USD 29.8 million Lugano recovery and the continued suspension of the common distribution. The company did not state numerical guidance.