Compass Diversified Full Year Revenues Rise 4.8% to $1.87B, EBITDA Up 8.8%
Compass Diversified reported Q4 2025 GAAP revenues of $468.6m (down 5.1%) with a net loss of $79.4m, and full-year GAAP revenues grew 4.8% to $1.87bn with net loss narrowing to $296.6m. Excluding deconsolidated Lugano, subsidiary adjusted EBITDA climbed 8.8% to $345.8m on revenues of $1.79bn.
1. Q4 and Full-Year GAAP Results
In Q4 2025, Compass Diversified recorded GAAP net revenues of $468.6m, a 5.1% decline year-over-year, and a net loss from continuing operations of $79.4m compared with a $70.5m loss in Q4 2024. For the full year, GAAP revenues rose 4.8% to $1,873.6m, with a net loss of $296.6m versus a $327.8m loss in 2024; Branded Consumer revenues reached $1,114.1m (+5.2%) and Industrial revenues hit $759.5m (+4.1%), while Branded Consumer net loss improved to $129.1m and Industrial net income was $12.6m.
2. Non-GAAP Performance Excluding Lugano
After deconsolidating Lugano on November 16, 2025, Q4 non-GAAP revenues were $460.4m (down 2.2%) while subsidiary adjusted EBITDA jumped 18.4% to $88.8m. For the full year, non-GAAP revenues increased 3.9% to $1,794.5m and subsidiary adjusted EBITDA rose 8.8% to $345.8m, driven by a 13.8% increase in Branded Consumer EBITDA to $219.7m and a 1.1% rise in Industrial EBITDA to $126.1m.
3. Balance Sheet and Debt Management
As of December 31, 2025, the company held $68.0m in cash and $96.0m of revolver availability. Recent actions include an $11m sale-leaseback of selected Altor facilities applied to debt reduction and an amended credit facility restoring full $100m revolver capacity with added covenant flexibility to support deleveraging.
4. 2026 Financial Outlook
Compass Diversified projects subsidiary adjusted EBITDA of $345m–$395m in fiscal 2026, with Branded Consumer EBITDA of $220m–$260m and Industrial EBITDA of $125m–$135m. GAAP reconciliation of 2026 guidance is unavailable due to complexity and management’s inability to predict all inputs for net income guidance.