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Core Insights - CompoSecure, Inc. reported strong execution in its payment card and Arculus business, with expectations for sustained growth throughout 2025 [2][12] - The company achieved record results for Arculus, indicating a positive contribution and differentiation in the digital asset and Web3 payments landscape [2][11] - The financial results reflect a transition to equity method accounting following the spin-off of Resolute Holdings Management, impacting the presentation of operating results [3][4] Financial Results - For Q1 2025, net sales were $59.8 million, a decrease from $104.0 million in Q1 2024, while non-GAAP net sales were $103.9 million [5][13] - Gross profit for Q1 2025 was $28.7 million, with a gross margin of 48.1%, compared to $55.2 million and 53.1% in Q1 2024 [5][13] - Adjusted net income increased by 21% to $28.4 million, while diluted adjusted EPS was $0.25, compared to $0.24 in the prior year [13][29] Financial Condition - As of March 31, 2025, CompoSecure had $9.5 million in cash and cash equivalents, with total debt of $195.0 million, resulting in net debt of $180.7 million [13][19] - The company's liquidity needs are expected to be met through the operations of CompoSecure Holdings [13][19] - The bank agreement's senior secured debt leverage ratio improved to 1.05x from 1.34x year-over-year [13][19] 2025 Financial Outlook - CompoSecure reiterated its full-year 2025 guidance, projecting mid-single digit growth in both consolidated net sales and Pro Forma Adjusted EBITDA [12][18] - The company anticipates continued sales momentum throughout the year, supported by strategic investments and the implementation of the CompoSecure Operating System [2][12]