Highlights

  • Second quarter 2026 net income was $50.3 million, compared with a net loss of $26.1 million in the second quarter of 2025.
  • Six-month net loss was $184.7 million, which included Husky Transaction costs of $49.8 million within operating expenses.
  • GPGI Holdings generated net sales of $473.2 million and non-GAAP Adjusted EBITDA of $113.9 million in the second quarter.
  • GPGI Holdings had total debt principal outstanding of $2,115.0 million as of June 30, 2026, following a January 2026 refinancing.

GPGI, Inc. (NYSE: GPGI) shares were trading at USD 10.62 on October 27, 2026, down 0.65%, with a relative volume at time of 2.66. The permanent capital platform completed the Husky Transaction on January 12, 2026, reincorporated from Delaware to Nevada on June 5, 2026, and reported second quarter 2026 results on August 6, 2026 along with a quarterly dividend of $0.0025 per share.

GPGI, formerly CompoSecure, Inc., is a Nevada corporation with its principal executive offices at 309 Pierce Street in Somerset, New Jersey. Through its wholly owned subsidiary GPGI Holdings, it describes itself as a permanent capital platform designed to acquire, operate and scale businesses. GPGI Holdings includes CompoSecure, which designs and manufactures metal payment cards and secure authentication solutions, and Husky, a manufacturer of injection molding equipment and aftermarket tooling and services. GPGI accounts for GPGI Holdings under the equity method. Its fiscal year ends December 31.

Second Quarter 2026 Results

The Form 10-Q for the quarter ended June 30, 2026 reports unaudited results. GPGI, Inc. reported no net sales, as GPGI Holdings has been deconsolidated since February 28, 2025. Selling, general and administrative expenses were $9.4 million, compared with $2.6 million, and the loss from operations was $9.4 million. Earnings in equity method investment were $67.1 million, compared with $38.9 million, and net income was $50.3 million, or $0.17 per share, compared with a net loss of $26.1 million, or $0.26 per share.

For the six months ended June 30, 2026, the net loss was $184.7 million, or $0.66 per share, compared with a net loss of $4.6 million, or $0.05 per share. The loss from operations was $65.0 million, and the company said operating expenses included Husky Transaction costs of $49.8 million.

GPGI Holdings generated net sales of $473.2 million in the second quarter, compared with $119.6 million a year earlier, and the company said the increase reflected revenue from the Husky business. GPGI Holdings also recognized a $96.2 million gain on debt extinguishment. Non-GAAP Adjusted EBITDA was $113.9 million, compared with $46.3 million.

Balance Sheet, Debt and Cash Flow

As of June 30, 2026, GPGI, Inc. had cash and cash equivalents of $7.7 million and no debt principal. GPGI Holdings had cash and cash equivalents of $107.1 million and total debt principal outstanding of $2,115.0 million, compared with $186.3 million at December 31, 2025.

On January 14, 2026, GPGI Holdings refinanced approximately $2,100 million of assumed indebtedness. The refinancing included $900 million of 5.625% senior secured notes due 2033, a new $1,200 million term loan maturing in 2033 and $400 million of revolving credit commitments maturing in 2031. The company expects increased cash interest payments during the year.

Cash used in operating activities of GPGI, Inc. was $44.0 million for the six months ended June 30, 2026, compared with cash provided of $3.0 million a year earlier. The company said the change was primarily attributable to Husky Transaction costs. It stated that GPGI, Inc. and GPGI Holdings may need additional liquidity from borrowings, other indebtedness or equity or debt offerings, and that it cannot be assured such liquidity will be available on reasonable terms, or at all.

Management Commentary and 2026 Outlook

On the August 6, 2026 call, management reported pro forma adjusted net sales of $473.2 million, pro forma adjusted EBITDA of $113.9 million and pro forma adjusted free cash flow of approximately $63 million for the quarter.

Management said it is reiterating full-year 2026 guidance of pro forma net sales between $1.95 billion and $2.1 billion, pro forma adjusted EBITDA between $550 million and $610 million and pro forma adjusted free cash flow between $275 million and $325 million. It adjusted its pro forma adjusted EBITDA margin guidance to between 27% and 29%, citing tariff pass-through revenues. Management also stated a leverage ratio target of 3.0 times by the end of 2026.