17. SEGMENTS As a result of the Husky Transaction, the Company is managed and operated as three businesses and reporting segments given each of Resolute Holdings, CompoSecure, and Husky are distinct operating businesses. The CompoSecure and Husky businesses are wholly owned by GPGI Holdings and are consolidated by Resolute Holdings only for U.S. GAAP accounting purposes. Intercompany transactions consisting of management fees paid by GPGI Holdings and Husky Holdings to Resolute Holdings along with expenses incurred by Resolute Holdings while still as a wholly owned subsidiary of GPGI Holdings are also eliminated in consolidation. Since the GPGI Holdings entity does not generate any revenue and solely consists of corporate administrative and debt related activity that is not directly allocable to the reporting segments, it is not considered an operating segment, and its activity is reported in Holdings Corporate Adjusted EBITDA. Prior period segment information has been recast such that the activity of the GPGI Holdings entity is no longer presented in the CompoSecure segment. The Chief Executive Officer of Resolute Holdings is the Company’s CODM who makes resource allocation decisions and assesses performance based on Adjusted EBITDA of each business, which management believes allows for the analysis of core operating performance across periods and because it is the calculation which forms the basis used to calculate the management fees paid to Resolute Holdings from its managed businesses. Characteristics of the consolidated organization which were relied upon in making the determination that the Company operates three reportable segments include the distinct management teams, nature and location of operations, and existence of the CompoSecure Management Agreement and Husky Management Agreement as Resolute Holdings’ sole sources of revenue that are eliminated in consolidation, and the reports that are regularly reviewed by the CODM for the purpose of assessing performance and allocating resources. We define Adjusted EBITDA as net income (loss) adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense (income), net; equity-based compensation expense; non-cash foreign exchange transaction/translation (gain) loss; and certain special items such as non-recurring acquisition and integration related costs; mark to market adjustments; net (gain) loss on sale of property and equipment; gain/loss on extinguishment and refinancing of debt; and other special items. The following tables present each reportable segment’s statements of operations and select cash flow metrics for the three and six months ended June 30, 2026 and June 30, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | | June 30, 2026 | | June 30, 2026 | | | ($ in millions) | | ($ in millions) | | | Resolute | | | | | | | | | Resolute | | | | | | | | | | Holdings | | CompoSecure | | Husky | | Total | | Holdings | | CompoSecure | | Husky | | Total | External customers | | $ | — | | $ | 133.6 | | $ | 339.6 | | $ | 473.2 | | $ | — | | $ | 264.0 | | $ | 617.0 | | $ | 881.0 | Intercompany | | | 13.6 | | | — | | | — | | | 13.6 | | | 26.5 | | | — | | | — | | | 26.5 | Segment net sales | | | 13.6 | | | 133.6 | | | 339.6 | | | 486.8 | | | 26.5 | | | 264.0 | | | 617.0 | | | 907.5 | Elimination of intercompany net sales | | | | | | | | | | | | (13.6) | | | | | | | | | | | | (26.5) | Net sales | | | | | | | | | | | | 473.2 | | | | | | | | | | | | 881.0 | Less: | | | | | | | | | | | | | | | | | | | | | | | | | Material | | | — | | | 22.0 | | | 116.1 | | | | | | — | | | 49.0 | | | 215.4 | | | | Personnel | | | 3.4 | | | 31.7 | | | 101.6 | | | | | | 6.3 | | | 64.7 | | | 195.9 | | | | Overhead | | | 0.3 | | | 13.1 | | | 32.6 | | | | | | 0.6 | | | 25.3 | | | 55.7 | | | | Management fees | | | — | | | 4.7 | | | 8.9 | | | | | | — | | | 9.2 | | | 17.3 | | | | Professional fees | | | 0.4 | | | 3.3 | | | 4.7 | | | | | | 1.1 | | | 6.3 | | | 7.8 | | | | Sales and marketing | | | — | | | 0.7 | | | 4.5 | | | | | | — | | | 1.1 | | | 8.6 | | | | Other segment expenses | | | 0.1 | | | 2.9 | | | 6.3 | | | | | | 0.2 | | | 5.6 | | | 10.2 | | | | Segment Adjusted EBITDA | | $ | 9.4 | | $ | 55.2 | | $ | 64.9 | | $ | 129.5 | | $ | 18.3 | | $ | 102.8 | | $ | 106.1 | | $ | 227.2 | Reconciliation to net income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | Holdings Corporate Adjusted EBITDA | | | | | | | | | | | | (1.0) | | | | | | | | | | | | (1.0) | Depreciation and amortization | | | | | | | | | | | | (64.3) | | | | | | | | | | | | (123.6) | Equity-based compensation | | | | | | | | | | | | (2.9) | | | | | | | | | | | | (5.2) | Income tax benefit (expense) | | | | | | | | | | | | (42.8) | | | | | | | | | | | | 6.9 | Interest income (expense), net | | | | | | | | | | | | (33.9) | | | | | | | | | | | | (63.7) | Unrealized foreign currency gain (losses) | | | | | | | | | | | | 1.8 | | | | | | | | | | | | 4.1 | Transaction costs | | | | | | | | | | | | (0.4) | | | | | | | | | | | | (43.3) | Gain (loss) on sale of property, equipment, and intangible assets | | | | | | | | | | | | (0.3) | | | | | | | | | | | | (0.9) | Gain (loss) on debt extinguishment | | | | | | | | | | | | 96.2 | | | | | | | | | | | | (10.6) | Severance costs | | | | | | | | | | | | (3.6) | | | | | | | | | | | | (4.2) | Fair value inventory step-up | | | | | | | | | | | | (23.6) | | | | | | | | | | | | (23.6) | Net income (loss) | | | | | | | | | | | $ | 54.7 | | | | | | | | | | | $ | (37.9) | | | | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | — | | $ | 5.0 | | $ | 10.4 | | | | | $ | — | | $ | 6.7 | | $ | 20.4 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | | June 30, 2025 | | June 30, 2025 | | | ($ in millions) | | ($ in millions) | | | Resolute | | | | | | | | | Resolute | | | | | | | | | | Holdings | | CompoSecure | | Husky | | Total | | Holdings | | CompoSecure | | Husky | | Total | External customers | | $ | — | | $ | 119.6 | | $ | — | | $ | 119.6 | | $ | — | | $ | 223.5 | | $ | — | | $ | 223.5 | Intercompany | | | 3.4 | | | — | | | — | | | 3.4 | | | 4.5 | | | — | | | — | | | 4.5 | Segment net sales | | | 3.4 | | | 119.6 | | | — | | | 123.0 | | | 4.5 | | | 223.5 | | | — | | | 228.0 | Elimination of intercompany net sales | | | | | | | | | | | | (3.4) | | | | | | | | | | | | (4.5) | Net sales | | | | | | | | | | | | 119.6 | | | | | | | | | | | | 223.5 | Less: | | | | | | | | | | | | | | | | | | | | | | | | | Material | | | — | | | 20.7 | | | — | | | | | | — | | | 39.5 | | | — | | | | Personnel | | | 1.8 | | | 29.3 | | | — | | | | | | 3.6 | | | 58.7 | | | — | | | | Overhead | | | 0.3 | | | 12.5 | | | — | | | | | | 0.5 | | | 25.3 | | | — | | | | Management fees | | | — | | | 3.4 | | | — | | | | | | — | | | 4.5 | | | — | | | | Professional fees | | | 0.3 | | | 3.3 | | | — | | | | | | 0.8 | | | 8.4 | | | — | | | | Sales and marketing | | | — | | | 0.3 | | | — | | | | | | — | | | 0.6 | | | — | | | | Other segment expenses | | | — | | | 1.5 | | | — | | | | | | 0.3 | | | 2.0 | | | — | | | | Segment Adjusted EBITDA | | $ | 1.0 | | $ | 48.6 | | $ | — | | $ | 49.6 | | $ | (0.7) | | $ | 84.5 | | $ | — | | $ | 83.8 | Reconciliation to net income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany/eliminations | | | | | | | | | | | | — | | | | | | | | | | | | 1.1 | Depreciation and amortization | | | | | | | | | | | | (2.3) | | | | | | | | | | | | (4.6) | Equity-based compensation | | | | | | | | | | | | (6.4) | | | | | | | | | | | | (12.4) | Income tax benefit (expense) | | | | | | | | | | | | (0.3) | | | | | | | | | | | | (0.9) | Interest income (expense), net | | | | | | | | | | | | (2.0) | | | | | | | | | | | | (4.4) | Spin-Off costs | | | | | | | | | | | | (0.3) | | | | | | | | | | | | (1.7) | Net income (loss) | | | | | | | | | | | $ | 38.3 | | | | | | | | | | | | 60.9 | | | | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures | | $ | — | | $ | 1.6 | | $ | — | | | | | $ | — | | $ | 2.8 | | $ | — | | | |
The following tables reconcile each reportable segment’s cash, assets and debt to the Company’s consolidated total: | | | | | | | | | | | | | | | | | | June 30, 2026 | | | ($ in millions) | | | Resolute | | | | | | Other/ | | | | | | Holdings | | CompoSecure | | Husky | | Eliminations | | Consolidated | Cash and cash equivalents | | $ | 9.9 | | $ | 33.5 | | $ | 71.3 | | $ | 2.3 | | $ | 117.0 | Total assets | | $ | 63.4 | | $ | 215.6 | | $ | 5,859.6 | | $ | (11.3) | | $ | 6,127.3 | Total debt | | $ | 88.9 | | $ | — | | $ | — | | $ | 2,088.6 | | $ | 2,177.5 |
| | | | | | | | | | | | | | | | | | June 30, 2025 | | | ($ in millions) | | | Resolute | | | | | | Other/ | | | | | | Holdings | | CompoSecure | | Husky | | Eliminations | | Consolidated | Cash and cash equivalents | | $ | 8.2 | | $ | 91.7 | | $ | — | | $ | — | | $ | 99.9 | Total assets | | $ | 13.3 | | $ | 242.6 | | $ | — | | $ | (3.4) | | $ | 252.5 | Total debt | | $ | — | | $ | 190.1 | | $ | — | | $ | — | | $ | 190.1 |
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