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

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

NYSE CODI traded up $0.01 on Wednesday, reaching $11.64. The company’s stock had a trading volume of 527,436 shares, compared to its average volume of 984,575. Compass Diversified has a twelve month low of $4.58 and a twelve month high of $17.46. The company has a debt-to-equity ratio of 19.20, a quick ratio of 1.26 and a current ratio of 2.42. The firm’s 50 day moving average is $8.58 and its two-hundred day moving average is $6.95. The stock has a market cap of $875.42 million, a PE ratio of -3.00 and a beta of 1.29.

Insider Activity

In related news, insider Stephen Keller bought 30,000 shares of Compass Diversified 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 completion of the acquisition, the insider directly owned 20,000 shares in the company, valued at approximately $172,200. This trade represents a -300.00% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 1.60% of the stock is owned by insiders.

Institutional Trading of Compass Diversified

Several hedge funds and other institutional investors have recently modified their holdings of the business. Invesco Ltd. boosted its holdings in shares of Compass Diversified by 64.2% during the fourth quarter. Invesco Ltd. now owns 305,005 shares of the financial services provider’s stock worth $1,464,000 after purchasing an additional 119,224 shares during the period. XTX Topco Ltd purchased a new position in shares of Compass Diversified during the 4th quarter valued at $227,000. Tudor Investment Corp ET AL increased its stake in shares of Compass Diversified by 3.7% in the fourth quarter. Tudor Investment Corp ET AL now owns 458,624 shares of the financial services provider’s stock worth $2,201,000 after acquiring an additional 16,266 shares during the last quarter. Saba Capital Management L.P. raised its holdings in shares of Compass Diversified by 36.0% during the fourth quarter. Saba Capital Management L.P. now owns 409,259 shares of the financial services provider’s stock worth $1,964,000 after acquiring an additional 108,327 shares in the last quarter. Finally, Inspire Investing LLC boosted its position in Compass Diversified by 42.5% during the fourth quarter. Inspire Investing LLC now owns 98,544 shares of the financial services provider’s stock valued at $473,000 after purchasing an additional 29,389 shares during the last quarter. Institutional investors and hedge funds own 72.73% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on CODI. B. Riley Financial boosted their target price on shares of Compass Diversified from $8.00 to $10.50 and gave the company a “neutral” rating in a research note on Tuesday, April 7th. Raymond James Financial started coverage on Compass Diversified in a research report on Wednesday, March 11th. They set a “hold” rating for the company. Weiss Ratings raised Compass Diversified from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, April 21st. Compass Point set a $15.00 target price on Compass Diversified in a research report on Tuesday, January 27th. Finally, Wall Street Zen upgraded Compass Diversified from a “sell” rating to a “hold” rating in a research report on Saturday, March 7th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Compass Diversified currently has a consensus rating of “Hold” and an average price target of $12.75.

Compass Diversified Company Profile

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.