Graham Robinson, CompoSecure President and CEO Graham Robinson, CompoSecure President and CEO Appoints Graham Robinson as President and Chief Executive Officer of the CompoSecure reporting segmentAdds 30-year industry veteran with extensive global executive experience and deep expertise transforming industrial and technology companiesSupports the next phase of CompoSecure’s growth strategy SOMERSET, N.J., Jan. 21, 2026 (GLOBE NEWSWIRE) -- CompoSecure, Inc. (NYSE: CMPO), which will be renamed GPGI, Inc. ...

We recently published 10 Stock With Eye-Popping Gains; 5 Are on Fresh Highs. CompoSecure Inc. (NYSE:CMPO) was one of the top performers on Thursday. CompoSecure extended its winning streak to a third straight day on Thursday, jumping 7.86 percent to close at $25.25 apiece as investors took heart from an initiative to reduce its existing debt, while digesting the impact of its rebranding. In a statement, CompoSecure Inc. (NYSE:CMPO) said that it was able to reduce its existing old debt following the succ ...

Company Overview - CompoSecure, Inc. (CMPO) shares increased by 9.2% to $23.41, with a notable trading volume, reflecting a 9.7% gain over the past four weeks [1] - The company completed a merger with Husky Technologies on January 12, forming a new entity valued at $7.4 billion, rebranded as GPGI, Inc. [2] - The combined company is expected to achieve over 20% accretion to adjusted EPS in the first year post-merger, supported by $2 billion in private placement, $2 billion in debt, and a $1 billion rollover from Platinum Equity [2] Competitive Strengths - CompoSecure has a strong position in metal payment card technology and digital security, with over 65 patents and a robust R&D pipeline [3] - The company has established long-term relationships with major clients such as American Express and JP Morgan Chase, enhancing its market credibility [3] - Its proprietary Arculus platform offers secure authentication and digital asset storage, positioning CompoSecure as a high-growth provider in fintech and security sectors [3] Financial Performance Expectations - The company is projected to report quarterly earnings of $0.16 per share, reflecting a year-over-year decline of 40.7%, while revenues are expected to reach $117.01 million, a 16% increase from the previous year [4] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a potential lack of momentum in stock price movement without earnings estimate revisions [5] Industry Context - CompoSecure operates within the Zacks Financial Transaction Services industry, which includes other companies like Cantaloupe (CTLP) [6] - CTLP has a consensus EPS estimate of $0.1, representing a 42.9% increase from the previous year, and also holds a Zacks Rank of 3 (Hold) [7]

Core Viewpoint - CompoSecure, Inc. has successfully closed a significant refinancing transaction, which includes a private placement of senior secured notes, a new term loan facility, and revolving commitments, aimed at enhancing its capital structure and supporting strategic growth initiatives [1][3]. Financing Details - The company issued $900 million in senior secured notes due 2033 at a fixed annual interest rate of 5.625%, with interest payable semi-annually [2]. - A new term loan facility of $1.2 billion, maturing in 2033, was established, bearing interest at the term SOFR reference rate plus 2.25% and issued at a price of 99.875% of the face amount [2]. - Additionally, $400 million in revolving commitments maturing in 2031 were secured [1]. Use of Proceeds - The net proceeds from the new term loan, borrowings under the new revolving loan, and the issuance of the notes will be utilized to repay outstanding borrowings under the existing revolving credit facility, refinance the existing Term Loan B, and cover related fees and expenses [3]. Corporate Rebranding - On January 12, 2026, CompoSecure announced its rebranding to GPGI, Inc., with both CompoSecure and Husky retaining their trade names as distinct reporting segments [5]. - The company's Class A common stock is expected to begin trading under the new name and ticker symbol "GPGI" on the New York Stock Exchange starting January 23, 2026 [5]. Company Overview - GPGI, Inc. is described as a diversified, multi-industry compounder, managing companies with strong positions in their respective industries, and is purpose-built to acquire and scale high-quality businesses [7].

Completed business combination with Husky Technologies creating a $7.4 billion best-in-class, diversified compounderRebrands corporate entity to GPGI, Inc. (“Great Positions in Good Industries”) with two reporting segments CompoSecure and Husky Completed Business Combination SOMERSET, N.J., Jan. 12, 2026 (GLOBE NEWSWIRE) -- CompoSecure, Inc. (NYSE: CMPO) completed its previously announced business combination with Husky Technologies Limited (“Husky”), a leader in highly engineered equipment and aftermarket ...

Group 1 - CompoSecure, Inc. has received approval from its stockholders for the issuance of shares of Class A Common Stock related to the business combination with Husky Technologies Limited [1] - The business combination is anticipated to close in January 2026, pending customary closing conditions and regulatory approvals [1] - Final voting results from the special meeting of stockholders will be disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission [2]

Amid a monster year and, more recently, a transformative deal announcement, this move raises a sharper question about how much upside is really left at today’s valuation.Charlotte-based Tikvah Management cut its stake in CompoSecure (CMPO +0.62%) by 280,000 shares and saw its position value reduced by an estimated $9.31 million, according to a November 14 SEC filing.What HappenedAccording to a Securities and Exchange Commission (SEC) filing dated November 14, Tikvah Management reduced its position in  Compo ...

Core Viewpoint - CompoSecure, Inc. (CMPO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - The upgrade in Zacks Rank for CompoSecure suggests an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - CompoSecure is projected to earn $0.99 per share for the fiscal year ending December 2025, with a 5.1% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Financial Performance - The Company reported net sales of $0 for the three months ended September 30, 2025, a decrease of $107.1 million, or 100%, compared to $107.1 million in the same period of 2024, primarily due to the deconsolidation of Holdings[166]. - Gross profit for the same period decreased by $55.4 million, or 100%, to $0, with the gross margin dropping from 52% to 0% as a result of the Spin-Off[171]. - The Company experienced a loss from operations of $9.9 million for the three months ended September 30, 2025, compared to income from operations of $29.1 million in the same period of 2024[173]. - The loss before income taxes increased to $184.5 million for the three months ended September 30, 2025, compared to a loss of $84.8 million in the prior year, representing a 117% increase[166]. - The net loss attributable to CompoSecure, Inc. was $174.7 million for the three months ended September 30, 2025, compared to a net loss of $42.1 million in the same period of 2024, marking a 315% increase[166]. - For the nine months ended September 30, 2025, net sales decreased by $259.9 million, or 81%, to $59.8 million compared to $319.7 million for the same period in 2024[178]. - Gross profit for the nine months ended September 30, 2025, decreased by $137.9 million, or 83%, to $28.7 million, with a gross margin decline from 52% to 48%[181]. - The company reported a net loss of $179.3 million for the nine months ended September 30, 2025, compared to a net loss of $34.8 million for the same period in 2024, representing a 415% increase in net loss[177]. - The company had a loss from operations of $6.6 million for the nine months ended September 30, 2025, compared to income from operations of $92.0 million for the same period in 2024[183]. - For the three months ended September 30, 2025, the company reported a net loss of $174.7 million, compared to a net loss of $85.5 million for the same period in 2024[196]. Sales Performance - The Company’s domestic net sales for the three months ended September 30, 2025 decreased by $80.0 million, or 100%, to $0, while Holdings generated $105.1 million of domestic net sales for the same period[169]. - International net sales also decreased by $27.1 million, or 100%, to $0, with Holdings generating $15.8 million of international net sales for the three months ended September 30, 2025[170]. - Domestic net sales decreased by $203.5 million, or 79%, to $54.5 million for the nine months ended September 30, 2025, compared to $258.0 million for the same period in 2024[179]. - International net sales decreased by $56.4 million, or 91%, to $5.3 million for the nine months ended September 30, 2025, compared to $61.7 million for the same period in 2024[180]. Operating Expenses - Operating expenses decreased by $16.4 million, or 62%, to $9.9 million for the three months ended September 30, 2025, compared to $26.3 million in the prior year[172]. - Operating expenses for the nine months ended September 30, 2025, decreased by $39.4 million, or 53%, to $35.3 million compared to $74.7 million for the same period in 2024[182]. - Other expenses for the nine months ended September 30, 2025, were $211.1 million, an increase of $84.3 million, or 67%, compared to $126.8 million for the same period in 2024[184]. Equity Method Investment - Earnings in equity method investment amounted to $39.6 million for the three months ended September 30, 2025, reflecting a 100% increase from the previous period[166]. - Earnings in equity method investment amounted to $93.4 million for the nine months ended September 30, 2025, resulting from the deconsolidation associated with the Spin-Off[185]. Cash Flow and Financing - The company had cash and cash equivalents of $127.4 million as of September 30, 2025, up from $77.5 million as of December 31, 2024[205]. - Cash used in operating activities for the nine months ended September 30, 2025, was $8.9 million, a decrease of $104.3 million compared to cash provided by operating activities of $95.4 million in the same period of 2024[207]. - Cash used in investing activities for the nine months ended September 30, 2025, was $60.7 million, primarily due to cash and cash equivalents deconsolidated from the Spin-Off[208]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $119.5 million, compared to cash used of $78.5 million in the same period of 2024[209]. - The company reported total debt principal outstanding of $190.0 million as of September 30, 2025, down from $197.5 million as of December 31, 2024[205]. - The company anticipates using acquisitions as part of its growth strategy, which may require additional equity or debt financing[206]. Interest Rate Risk - Holdings had $190.0 million in variable rate debt outstanding as of September 30, 2025, exposing the company to interest rate risk[213]. - An increase or decrease of 100 basis points in the applicable interest rate would result in an annual change in interest expense of approximately $1.9 million[214]. Spin-Off Impact - The Spin-Off of Resolute Holdings was completed on February 28, 2025, resulting in the Company no longer consolidating Holdings and accounting for it as an equity method investment[151]. - Adjusted net income for the three months ended September 30, 2025, was $33.99 million, representing an increase of 50.8% from $22.52 million in the same period of 2024[196].

Financial Data and Key Metrics Changes - Non-GAAP net sales increased by 13% year-over-year to $120.9 million, up from $107.1 million [11][17] - Non-GAAP gross margin for the quarter was 59%, compared to 51.7% in the same quarter last year [12][18] - Pro forma adjusted EBITDA increased by 30% to $47.7 million, with an EBITDA margin of 39.5%, up 529 basis points year-over-year [12][19] - Cash and cash equivalents rose to $224.6 million, compared to $52.7 million a year ago, while total debt decreased from $330 million to $190 million [18] Business Line Data and Key Metrics Changes - Domestic net sales grew by 31% to $105.1 million, while international net sales declined by 42% to $15.8 million due to timing of customer orders [18] Market Data and Key Metrics Changes - The demand for metal card products remains strong, supported by ongoing market trends [14] Company Strategy and Development Direction - The company is focused on implementing the CompoSecure Operating System to drive organic growth, improve margins, and enhance capital allocation [5][9] - The planned business combination with Husky Technologies is viewed as a foundation for a diversified compounder, enhancing growth and profitability opportunities [6][23] - The company aims to maintain discipline in execution, innovation, and strategic investments to capitalize on growth opportunities [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial performance and operational improvements, highlighting the positive impact of the CompoSecure Operating System [21][32] - The company raised its 2025 guidance for non-GAAP net sales to approximately $463 million and introduced guidance for 2026 of approximately $510 million [12][20] Other Important Information - The company is transitioning to a new CFO, Mary Holt, who is expected to contribute significantly to the company's strategic initiatives [10][11] - The combination with Husky is expected to close in the first quarter of 2026, subject to regulatory approvals [27] Q&A Session Summary Question: Share count for pro forma basis - The pro forma share count will be 291 million shares [34] Question: Margin improvement expectations - There is significant potential for further efficiency improvements through the operating system, with ongoing investments in growth areas [36] Question: Synergies from the acquisition - The company does not expect to rely on synergies between the two businesses but emphasizes the importance of consistent application of the management operating system [40] Question: Recurring revenue nature of Husky's business - Husky's business model includes a large installed base of machines, generating recurring revenue from aftermarket parts and services [42] Question: Margin expansion potential - The company believes there is still substantial opportunity for margin improvement across the combined businesses, with a commitment to sustainable growth and innovation [48]