Compass Diversified Q1 Revenue Dips 5.9%, Divests Sterno Food Service for $292.5M
CODI•Compass Diversified’s Q1 GAAP net revenues fell 5.9% to $426.9 million with a $30.8 million loss from continuing operations, an improvement from a $49.8 million loss a year earlier. Non-GAAP subsidiary adjusted EBITDA rose 6.3% to $83.9 million led by an 11.6% Branded Consumer gain, and the $280 million Sterno divestiture reduced leverage below 1.0x.
1. First Quarter Financial Results
Compass Diversified reported GAAP net revenues of $426.9 million for Q1 2026, down 5.9% year-over-year, and a net loss from continuing operations of $30.8 million versus a $49.8 million loss in Q1 2025. On a non-GAAP basis excluding Lugano, revenues were flat and subsidiary adjusted EBITDA rose 6.3% to $83.9 million.
2. Segment Performance
The Branded Consumer group generated $257.0 million in revenues, up 2.3% year-over-year, and delivered $59.4 million in adjusted EBITDA, an 11.6% increase. The Industrial group saw revenues decline 3.3% to $169.9 million and adjusted EBITDA decrease 4.5% to $24.4 million.
3. Sterno Food Service Divestiture
CODI completed the sale of Sterno’s food service business for an enterprise value of $292.5 million, yielding approximately $280 million in net proceeds. Proceeds were used to repay debt, reducing senior secured leverage below 1.0x and avoiding second quarter milestone fees.
4. Liquidity and 2026 Outlook
As of March 31, 2026, CODI held $65.2 million in cash and $100 million revolver availability. Updated 2026 subsidiary adjusted EBITDA guidance ranges to $320.0–$365.0 million, with Branded Consumer at $225.0–$260.0 million and Industrial at $95.0–$105.0 million.
