Executive Summary

Q3 2025 delivered strong operating performance at CompoSecure Holdings: non-GAAP net sales rose 13% year over year to $120.9M and gross margin expanded to 59.0%; pro forma adjusted EBITDA increased 30% to $47.7M with momentum concentrated in U.S. programs and multiple new launches .
Management raised FY25 guidance (revenue to ~$463M from $455M; EBITDA to ~$165–$170M from $158M) and introduced FY26 targets ($510M revenue; ~$190M EBITDA); guidance includes RHLD management fees and excludes the Husky deal impact .
Strategic developments likely to drive stock narrative: announced business combination with Husky (20%+ EPS accretion in first full year post-close), NYSE listing transfer completed in September, and warrant redemption notice issued (cashless exercise) .
Consensus comparisons were not available via S&P Global for Q3 2025; focus shifts to trajectory (2Q→3Q sequential uptick, YoY improvement) and to guidance raise as the primary positive surprise [GetEstimates: Q3 2025 returned no data].

What Went Well and What Went Wrong

What Went Well
- Margin execution: Gross margin expanded to 59.0% (vs. 51.7% YoY), attributed to the CompoSecure Operating System (COS), manufacturing efficiency, and mix; EBITDA rose 30% YoY to $47.7M .
- Commercial wins: New/expanded programs launched (Citi Strata Elite, Chime, Bank of America/American Airlines, Alaska Airlines, BMO, Gemini XRP), reinforcing issuer demand for premium cards and security .
- Balance sheet/capital structure milestones: Continued deleveraging at the operating unit and warrant redemption announcement (cashless exercise) simplifying the structure and potentially reducing future dilution .
What Went Wrong
- International softness: International net sales fell 42% YoY to $15.8M due to order timing; management flagged higher variability in international given smaller scale .
- GAAP noise: Corporate-level GAAP EPS diluted was $(1.58) driven by large non-cash fair value adjustments (warrants/earnout), complicating headline comparability despite strong underlying operations .
- Estimate visibility: S&P Global consensus for revenue/EPS was unavailable for Q3 2025, limiting conventional “beat/miss” framing despite a positive guidance revision [GetEstimates: Q3 2025 returned no data].

Financial Results

Note: Given the February 28 spin-off and equity method presentation, the operating performance below reflects CompoSecure Holdings’ non-GAAP figures where indicated; GAAP EPS reflects the CMPO corporate entity.

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue (Non-GAAP Net Sales, $USD Millions)	$107.135	$103.9	$119.6	$120.865
Gross Margin (%)	51.7%	52.5%	57.5%	59.0%
Pro Forma Adjusted EBITDA ($USD Millions)	$36.6	$33.7	$46.3	$47.7
GAAP Diluted EPS ($)	—	$0.07	$(0.26)	$(1.58)
Adjusted Diluted EPS ($)	$0.23	$0.25	$0.25	$0.29

Segment and mix (Q3 2025 vs. YoY):

Domestic revenue: $105.1M (+31% YoY)
International revenue: $15.8M (−42% YoY)
Prior-year Q3 revenue baseline: $107.135M (domestic $80.033M; international $27.102M)

Additional KPIs and balance sheet highlights (operating unit, Q3 2025):

Cash and cash equivalents: $98.247M; short-term investments: $49.727M
Total debt: $188.431M (LT $173.431M + current $15.000M)
Arculus contribution: “another strong net positive quarter”

Estimates versus actuals:

S&P Global consensus for Q3 2025 (Revenue, EPS, EBITDA) was unavailable; comparisons to estimates are not provided [GetEstimates: Q3 2025 returned no data].

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Non-GAAP Net Sales	FY 2025	~$455M	~$(463)M	Raised
Pro Forma Adjusted EBITDA	FY 2025	~$158M	~$165–$170M	Raised
Non-GAAP Net Sales	FY 2026	—	~$510M	Introduced
Pro Forma Adjusted EBITDA	FY 2026	—	~$190M	Introduced

Notes: FY25 and FY26 guidance include RHLD management fee and exclude the impact of the Husky transaction .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q1)	Current Period (Q3 2025)	Trend
Operating system (COS) driving margins	COS credited for margin lift; 2Q Gross Margin 57.5% and record profitability . Q1 highlighted early COS impact and steady execution .	Gross margin at 59.0%; management reiterates COS routines/culture as key driver .	Improving, sustainable efficiency gains.
Program wins and demand	Q2 launches: Chase Sapphire Reserve, Crypto.com, XP Legacy, MGM Rewards; Coinbase One Card (AMEX) via Arculus . Q1 “record” Arculus contribution .	New/expanded Q3 programs: Citi Strata Elite, Chime, BofA/AA, Alaska Airlines, BMO, Gemini XRP .	Broadening across banks/fintechs; reinforcing leadership.
Arculus commercialization	Positive contribution highlighted in Q1; Coinbase One Card partnership in Q2 .	“Another strong net positive quarter,” growing traction across banks/fintechs/exchanges .	Strengthening incremental profit driver.
Geographic mix	U.S. demand strong in Q2; mix favors domestic .	Domestic +31% YoY to $105.1M; International −42% YoY (timing-related) .	U.S. strength offsets int’l variability.
Capital structure and liquidity	Net debt leverage improvement vs. 2024 in Q2 .	Warrant redemption notice (cashless), further simplifying capital structure path .	Cleaner equity overhang post-redemption.
Corporate/strategic actions	RHLD spin-off and equity method framing in Q1; Arculus narrative .	Announced Husky combination (20%+ EPS accretion in first full year), NYSE listing .	Platform expansion and higher investor visibility.
Tariffs/macro risk	Tariff/macro uncertainty discussed in filings .	10-Q reiterates tariff/macro risks; ongoing disclosures .	Unchanged, monitored.

Management Commentary

Strategic message: “The third quarter results are terrific… The combination of CompoSecure and Husky [forms] a best-in-class, diversified compounder” — David M. Cote, Executive Chairman .
Operating execution: “Net sales increased 13% year over year to $120.9 million… Pro forma adjusted EBITDA increased 30% to $47.7 million… gross margins of 59%” — Jon Wilk, CEO .
On COS and margins: “Putting in place that operating system… routines… culture change… driving the improvements… sustainable… opportunity ahead” — Jon Wilk .
On synergy expectations with Husky: “We’re not pointing to nor counting on any kind of synergies… it’s the consistent application of a management operating system” — Management .
Tone on Husky: “We are incredibly psyched… identified more than 500 bps of margin upside [for the combined company]” — David M. Cote .
CFO transition: CompoSecure appointed Mary Holt as CFO (Honeywell pedigree), reinforcing financial leadership depth .

Q&A Highlights

Share count for Husky pro forma: ~291M shares post-transaction context clarified in Q&A .
Margin expansion durability: Management emphasized COS-driven, sustainable efficiency with room to reinvest in growth and R&D as needed .
Synergies: No modeled revenue/cost synergies between CompoSecure and Husky; value creation expected from disciplined operating system deployment .
Recurring revenue for Husky: Aftermarket parts/services (~65%) drive recurring profile; installed base (~13,500 systems) supports razor/razor-blade model .
Guidance clarity: FY25 raise and FY26 introduction framed as momentum-based; excludes Husky impact and includes RHLD management fee .

Estimates Context

S&P Global (Capital IQ) consensus for Q3 2025 (Revenue, EPS, EBITDA) was not available for CMPO at the time of analysis; GetEstimates returned no data for the period. As a result, we do not present beat/miss versus Wall Street estimates for this quarter [GetEstimates: Q3 2025 returned no data].
Given the lack of published estimates, the key surprise was the guidance raise (FY25) and the introduction of FY26 targets relative to prior guidance .

Key Takeaways for Investors

Trajectory is positive: sequential revenue uptick (Q2→Q3) and sustained margin expansion (59% GM), with EBITDA growing 30% YoY; execution under COS is the central driver .
Guidance revision is meaningful: FY25 raised and FY26 introduced, providing multi-year visibility even after absorbing the RHLD management fee and excluding Husky, indicating confidence in core operations .
Domestic-led growth with timing noise internationally: U.S. demand remains robust; international timing variability is the main near-term watch item for quarterly cadence .
Strategic catalysts: Husky deal (expected 20%+ first-year EPS accretion) and NYSE listing can broaden investor base and re-rate the multiple; later-stage warrant redemption should simplify the equity stack .
GAAP vs. non-GAAP optics: Expect continued GAAP volatility from fair value items at the holding company; use non-GAAP operating figures (revenue, GM, EBITDA, adjusted EPS) and Holdings financials for core performance assessment .
Near-term trading implications: Positive skew from guidance raise and margin story; monitor international order timing, Husky closing milestones (target 1Q26), and the pace of warrant exercises ahead of redemption .
Medium-term: COS-driven compounding plus platform diversification via Husky targets mid-to-high single-digit organic growth, ~100 bps annual margin expansion, and solid FCF yield at scale .

Additional Relevant Q3 Documents and Disclosures

Q3 10-Q (equity method framework, Holdings results table, warrants/earnouts revaluation) .
Resolute Holdings press release including consolidated/segment data for CompoSecure Holdings: Q3 net sales $120.865M, GM $71.327M (59.0%), debt and liquidity detail .
Listing transfer to NYSE (symbol CMPO) completed on Sept 23, 2025 .
Warrant redemption notice (cashless exercise mechanics) dated Nov 3, 2025 .
CFO appointment (Mary Holt) press release and 8-K .

CompoSecure, Inc. (CMPO)·Q3 2025 Earnings Summary