Compass Diversified (NYSE:CODI) Releases Quarterly Earnings Results, Misses Expectations By $0.56 EPS

Compass Diversified (NYSE:CODI) posted its quarterly earnings data on Wednesday. The financial services provider reported ($0.62) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.56), FiscalAI reports. The company had revenue of $426.86 million during the quarter, compared to analysts’ expectations of $437.75 million.

Here are the key takeaways from Compass Diversified’s conference call:

• Closed sale of Sterno’s food service business, used proceeds to repay more than $280 million of senior secured term loan debt, reducing total leverage to ~5x and senior secured net leverage below 1x while avoiding upcoming milestone fees.
• Q1 subsidiary-adjusted EBITDA was $83.9 million (+6.3% YoY) with consumer EBITDA up 11.6%; The Honey Pot delivered ~25% revenue growth and >40% EBITDA growth, and Arnold’s EBITDA nearly doubled.
• Updated 2026 outlook: subsidiary-adjusted EBITDA of $320–$365 million (consumer $225–$260M; industrial $95–$105M), which management says is at or above prior expectations and reflects the Sterno divestiture.
• Management retained Rimports after the Sterno sale and expects stranded costs plus a pending customer renegotiation to weigh on 2026 results, with improvement targeted for 2027.
• Company is pursuing an MSA review to better align incentives, is prioritizing deleveraging (near-term goal: <4x; long-term target: 3–3.5x) and may consider share buybacks once leverage improves, supported by $23.9M of Q1 operating cash flow, $65M cash and near-full revolver availability.

Compass Diversified Stock Up 1.9%

Shares of NYSE:CODI traded up $0.23 on Thursday, hitting $11.85. 410,140 shares of the company’s stock were exchanged, compared to its average volume of 1,270,598. The firm’s 50-day moving average is $8.58 and its 200 day moving average is $6.95. The company has a market capitalization of $891.22 million, a PE ratio of -3.09 and a beta of 1.29. Compass Diversified has a 1-year low of $4.58 and a 1-year high of $12.41. The company has a debt-to-equity ratio of 19.20, a quick ratio of 1.26 and a current ratio of 2.42.

Insider Activity

In other Compass Diversified news, insider Stephen Keller acquired 30,000 shares of the stock in a transaction dated Monday, April 6th. The stock was acquired at an average cost of $8.61 per share, with a total value of $258,300.00. Following the transaction, the insider owned 20,000 shares in the company, valued at $172,200. The trade was a -300.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Southeast Asset Advisors LLC boosted its position in shares of Compass Diversified by 66.7% in the 4th quarter. Southeast Asset Advisors LLC now owns 20,000 shares of the financial services provider’s stock valued at $96,000 after purchasing an additional 8,000 shares during the period. CIBC Bancorp USA Inc. acquired a new stake in shares of Compass Diversified in the 3rd quarter valued at about $81,000. Voleon Capital Management LP boosted its position in shares of Compass Diversified by 32.0% in the 3rd quarter. Voleon Capital Management LP now owns 16,098 shares of the financial services provider’s stock valued at $107,000 after purchasing an additional 3,901 shares during the period. Tower Research Capital LLC TRC boosted its position in shares of Compass Diversified by 157.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 13,972 shares of the financial services provider’s stock valued at $88,000 after purchasing an additional 8,555 shares during the period. Finally, Tidal Investments LLC acquired a new stake in shares of Compass Diversified in the 2nd quarter valued at about $89,000. 72.73% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on CODI shares. Wall Street Zen upgraded Compass Diversified from a “sell” rating to a “hold” rating in a report on Saturday, March 7th. Raymond James Financial started coverage on Compass Diversified in a report on Wednesday, March 11th. They issued a “hold” rating on the stock. CJS Securities upgraded Compass Diversified to an “outperform” rating in a report on Tuesday, January 27th. B. Riley Financial boosted their price objective on Compass Diversified from $8.00 to $10.50 and gave the company a “neutral” rating in a report on Tuesday, April 7th. Finally, Zacks Research raised Compass Diversified from a “strong sell” rating to a “hold” rating in a research note on Monday, March 16th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $12.75.

About Compass Diversified

Compass Diversified Holdings (NYSE:CODI) is a publicly traded private equity company headquartered in Bethesda, Maryland. The firm specializes in acquiring and managing middle-market businesses across a variety of industries, with a focus on driving operational performance and sustainable growth. As an externally managed entity, Compass Diversified leverages a disciplined investment approach to build a portfolio of market-leading companies that benefit from strategic oversight, capital support and shared best practices.

Compass Diversified’s investment activities span five core sectors: branded consumer, consumer services, differentiated industrial products, value-added distribution and business services.