Compass Diversified (NYSE:CODI) reported third-quarter results on Thursday that fell well short of analyst expectations, with both earnings and revenue missing forecasts by a wide margin.
Shares of the company dropped about 2.60% in U.S. premarket trading following the release.
Compass Diversified, which owns a portfolio of middle-market businesses, posted a third-quarter loss of -$1.21 per share, compared with analyst expectations for earnings of $0.61 per share. Revenue totaled $472.56 million, below the consensus estimate of $568.95 million. Compared with the same period last year, revenue rose modestly from $456.55 million, representing year-over-year growth of 3.5%.
“Excluding Lugano, our eight operating subsidiaries continue to deliver solid performance in an uncertain macroeconomic environment,” said Elias Sabo, chief executive officer of Compass Diversified. “We are focused on executing against our strategic priorities with the objective of delivering consistent, long-term shareholder value by partnering with our management teams to drive performance, invest for growth, and enhance profitability.”
Looking ahead, the company issued full-year 2025 guidance, forecasting subsidiary Adjusted EBITDA in the range of $335 million to $355 million, excluding Lugano Holding, Inc. Compass Diversified did not provide quarterly guidance that could be directly compared with current analyst estimates.
Adjusted EBITDA for the third quarter declined to $30.30 million, down sharply from $48.60 million in the same quarter last year. The branded consumer segment generated Adjusted EBITDA of $44.87 million, while the niche industrial segment contributed $32.70 million.
The company also said it is now fully current with its 2025 SEC filings and in full compliance with the reporting requirements tied to its credit facilities and bond indentures.
More about Compass Diversified
Compass Diversified is a holding company that owns and manages a diversified group of middle-market businesses operating across consumer, industrial, and niche markets. The company focuses on long-term value creation through active ownership, strategic investment, and operational improvement across its portfolio.