Financial Data and Key Metrics Changes - GPGI reported non-GAAP net sales of approximately $2.18-$2.23 billion for fiscal year 2026, representing an expected growth of 8.5% [54] - Pro forma adjusted EBITDA is projected to be approximately $620-$650 million, indicating a growth of around 17% [54] - Pro forma adjusted free cash flow is anticipated to be approximately $325-$375 million, reflecting a strong cash generation capability [54] Business Line Data and Key Metrics Changes - CompoSecure achieved net sales of $462.1 million in fiscal year 2025, up 9.9%, with pro forma adjusted EBITDA increasing to $170.7 million, up 23.5% [25][34] - In the fourth quarter, CompoSecure's non-GAAP net sales were $117.7 million, up approximately 17% year-over-year, with pro forma adjusted EBITDA increasing approximately 41% to $43 million [33] - Husky's net sales for the fourth quarter reached $521 million, up over 6% from the prior year, while full year 2025 net sales were approximately $1.57 billion, up 5% [51] Market Data and Key Metrics Changes - CompoSecure is positioned as the global leader in premium metal payment cards, with over 200 active metal card programs and partnerships with 9 of the top 10 U.S. card issuers [25][26] - The global market for payment cards is expanding, with credit and debit cards in circulation growing at approximately 8% over the past five years, providing a favorable environment for CompoSecure [28] - Husky operates in a growing industry characterized by cyclical customer demand, particularly in PET markets, which are expected to continue gaining share over other materials [45] Company Strategy and Development Direction - GPGI aims to deliver mid- to high-single-digit annual organic growth, with a focus on margin expansion and free cash flow conversion [8][9] - The company is implementing the Resolute Operating System (ROS) to enhance operational efficiency and drive growth across its business lines [10][13] - GPGI is strategically positioned to acquire high-quality private businesses that can benefit from its operating system, particularly targeting family-owned businesses and non-core divisions of public companies [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of both CompoSecure and Husky, highlighting strong organic growth opportunities and the successful implementation of ROS [54][56] - The company anticipates that the second half of fiscal year 2026 will see accelerated revenue growth and margin expansion compared to the first half [57] - Management emphasized the importance of a high-performance culture and disciplined capital allocation to achieve long-term value creation [59] Other Important Information - The results of GPGI Holdings and its subsidiaries are accounted for under the equity method of accounting following the spin-off of Resolute Holdings Management [3] - The company is focused on maintaining a strong balance sheet, with expectations to reduce total leverage below 3x [63] Q&A Session Summary Question: Factors driving revenue expectations for CompoSecure - Key drivers include growth in the core card payment business, international expansion, and ramping up the Arculus business overall [62] Question: Thoughts on leverage levels - Total leverage is expected to be below 3x, which is considered a comfortable and normal operating level [64] Question: Margin expansion breakdown for CompoSecure - Margin expansion is attributed to favorable price mix impacts and improved yields driven by the implementation of ROS [68] Question: Plans to license the ROS system and potential conflicts of interest - There are no plans to license the ROS system to other companies, and management does not see a conflict of interest between GPGI and RHLD [71][76]

Core Viewpoint - CompoSecure, Inc. will be rebranded as GPGI, Inc. and has appointed Graham Robinson as the new President and CEO, effective January 22, 2026, to lead the company through its next growth phase [1][5][7]. Group 1: Leadership Transition - Graham Robinson has been appointed as President and CEO of CompoSecure, succeeding Jon Wilk, who served for 10 years [1][5]. - Robinson brings 30 years of experience in technology and industrial sectors, having held leadership roles at companies like Stanley Black & Decker and Honeywell [2][3]. - The transition is not due to any disagreements with the Board regarding financial matters, and the company's financial performance remains in line with expectations [6]. Group 2: Strategic Direction - The appointment of Robinson is seen as a strategic move to support CompoSecure's growth strategy, focusing on operational excellence and M&A [2][5]. - CompoSecure is positioned in a high-growth market for metal payment cards and authentication solutions, with sustained customer demand and investment [3]. - The recent business combination with Husky Technologies is expected to enhance the company's market position, characterized by approximately 70% recurring revenues and strong cash flow generation [7][8]. Group 3: Company Overview - CompoSecure is a leader in metal payment cards and security solutions, providing innovative technology that ensures trust in transactions [9]. - The company aims to deliver exceptional experiences and value for customers, shareholders, and employees through continued innovation and operational excellence [3][9].

Company Overview - CompoSecure is a leader in the design and manufacture of premium metal payment cards, having pioneered the metal card form factor and embedded payment card technology [3][4] - The company was founded in 2000 and went public in December 2021 through a SPAC merger [3] - Major customers include American Express and JP Morgan Chase, which together accounted for 70.5% of CompoSecure's revenue in 2023 [3] Business Model and Revenue - In 2023, CompoSecure generated revenue of US$390.6 million, with a production volume of 31 million metal cards [3][12] - The company’s revenue is primarily derived from the sale of metal cards, with 82.3% coming from the USA [3] - Contracts with major clients like American Express and JP Morgan Chase have been extended, ensuring a steady revenue stream [3] Product Innovation - CompoSecure has introduced innovative features in its payment cards, including biometrics, dynamic CVV, and LED indicators [3] - The company has also entered the cryptocurrency market with the Arculus Platform, offering secure storage and transaction solutions for digital assets [7] Market Opportunity - CompoSecure's market share in the payment card industry is approximately 0.7%, indicating significant growth potential [13] - The company sees opportunities for expanding metal card adoption among existing customers and in international markets, particularly in Europe, Asia, and Latin America [13] Financial Performance - CompoSecure's revenue CAGR from 2019 to 2023 was 12.6%, with a notable increase of 41.3% in 2022 [12] - The company has consistently generated profit and free cash flow, with a net profit of US$112.52 million in 2023 [15] - As of June 2024, CompoSecure had a total diluted share count of 112.52 million, resulting in a PE ratio of 12.9 and a PFCF ratio of 14.3 [15] Management and Ownership Changes - David Cote became the majority shareholder after investing US$372 million in August 2024, simplifying the company's capital structure [12][15] - Cote's track record includes significant operational improvements at Honeywell and Vertiv Holdings, which may benefit CompoSecure [10][15]