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]