v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING
9. SEGMENT REPORTING
During the three and nine months ended September 30, 2026, the Chief Operating Decision Maker (“CODM”) was the Principal Executive Officer of the Company. The CODM evaluates performance based on Adjusted EBITDA of our reportable segments, CompoSecure and Husky.
We define Adjusted EBITDA as net income (loss) adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense (income), net; stock-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; loss on extinguishment and refinancing of debt; and other special items. We use Adjusted EBITDA because we believe this measure assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. For each
of our segments, our CODM uses Adjusted EBITDA to measure operational performance by comparing actual, budgeted and forecasted amounts on a regular basis, and to allocate resources as part of the annual budget and forecasting process. Adjusted EBITDA is also a significant performance measure in each of our business' annual incentive plans.
As a result of the Spin‑Off and the execution of the CompoSecure Management Agreement, the Company deconsolidated GPGI Holdings on February 28, 2025. From that date through the Husky Transaction Date, the Company had one operating segment and one reportable segment, which consisted of its equity method investment in GPGI Holdings. The Company accounts for GPGI Holdings under the equity method as discussed in Note 3.
Following the Husky Transaction Date, the Company has two operating and reportable segments, CompoSecure and Husky (which comprise the underlying operations of the Company’s equity method investment in GPGI Holdings). This change in operating and reportable segments reflects a change in the information regularly reviewed by the CODM, who began evaluating CompoSecure and Husky as separate businesses with discrete financial information for purposes of assessing performance and allocating resources. Accordingly, the Company has recast prior period segment information, including for the three and nine months ended September 30, 2025, to conform to the current period segment presentation, excluding the corporate administrative allocations to the GPGI Holdings corporate entity as noted below.
The Company’s corporate entity and GPGI Holdings entity are not considered operating segments because these entities do not generate revenues and activities occurring at these entities are limited to corporate administrative activities that are not directly allocable to the reportable segments. These activities are aggregated in the “Corporate Adjusted EBITDA” row in the tables below. Starting with the period for the three months ended June 30, 2026, certain corporate administrative activities previously reported in the CompoSecure and Husky reporting segments were allocated to the GPGI Holdings and corporate entity totaling $1.1 and $2.1 for the three and nine months ended September 30, 2026, respectively. This presentation is on a prospective basis and prior periods have not been recast. The Company does not have any intra‑entity sales.
The information below represents a disaggregation of the operating results of the Company segments consistent with the information reviewed by the CODM.
Three Months Ended September 30,
2026
2025
CompoSecure
Husky
Total
CompoSecure
Husky
Total
Net Sales
$
140.7 
$
368.9 
$
509.6 
$
120.9 
$
— 
$
120.9 
Less(1)
Material
22.8 
132.6 
155.4 
20.2 
— 
20.2 
Personnel
32.3 
95.8 
128.1 
30.3 
— 
30.3 
Overhead
13.1 
34.4 
47.5 
11.7 
— 
11.7 
Professional fees
3.5 
6.2 
9.7 
3.1 
— 
3.1 
Management fees
5.1 
8.7 
13.8 
3.7 
— 
3.7 
Sales and marketing
0.5 
2.6 
3.1 
0.2 
— 
0.2 
Other segment expenses(2)
2.2 
(0.2)
2.0 
1.9 
— 
1.9 
Adjusted EBITDA
$
61.2 
$
88.8 
150.0 
$
49.8 
$
— 
49.8 
Reconciliation of Adjusted EBITDA to net income (loss)
Corporate Adjusted EBITDA(3)
(3.7)
(2.1)
Depreciation and amortization
(32.6)
(2.3)
Stock-based compensation
(6.6)
(5.8)
Income tax (expense) benefit
5.0 
(29.8)
Interest expense, net
(32.1)
(1.8)
Foreign currency gain (loss)
(0.3)
— 
Husky Transaction costs
(1.0)
(2.8)
Loss on disposal of assets
(0.2)
— 
Severance cost
(2.5)
— 
Additional earnout cost
— 
(5.0)
Mark to market adjustments, net
— 
(174.9)
Net income (loss)
$
76.0 
$
(174.7)
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM, which nets out discrete items noted in the reconciliation of Adjusted EBITDA to net income (loss).
(2) Other segment expenses relate to miscellaneous expenses.
(3) Corporate Adjusted EBITDA consists of the activity of the corporate entities, which are not considered operating segments.
Nine Months Ended September 30,
2026
2025
CompoSecure
Husky
Total
CompoSecure
Husky
Total
Net Sales
$
404.7 
$
985.9 
$
1,390.6 
$
344.3 
$
— 
$
344.3 
Less(1)
Material
71.8 
348.0 
419.8 
59.7 
— 
59.7 
Personnel
97.0 
291.7 
388.7 
88.8 
— 
88.8 
Overhead
38.4 
90.1 
128.5 
37.0 
— 
37.0 
Professional fees
9.8 
14.0 
23.8 
11.5 
— 
11.5 
Management fees
14.3 
26.0 
40.3 
8.2 
— 
8.2 
Sales and marketing
1.6 
11.2 
12.8 
0.8 
— 
0.8 
Other segment expenses(2)
7.8 
10.0 
17.8 
4.0 
— 
4.0 
Adjusted EBITDA
$
164.0 
$
194.9 
358.9 
$
134.3 
$
— 
134.3 
Reconciliation of Adjusted EBITDA to net income (loss)
Corporate Adjusted EBITDA(3)
(13.7)
(5.5)
Depreciation and amortization
(156.2)
(6.9)
Stock-based compensation
(16.7)
(16.6)
Income tax expense
(25.1)
(55.0)
Interest expense, net
(94.5)
(6.3)
Foreign currency gain (loss)
3.9 
— 
Husky Transaction costs
(95.2)
(2.8)
Loss on disposal of assets
(1.1)
— 
Severance cost
(6.7)
— 
Loss on remeasurement of TRA liability
(28.1)
— 
Fair value inventory step-up(4)
(23.6)
— 
Additional earnout cost
— 
(5.0)
Loss on debt extinguishment(4)
(10.6)
— 
Mark to market adjustments, net
— 
(209.9)
Spin-Off costs
— 
(5.6)
Net income (loss)
$
(108.7)
$
(179.3)
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM, which nets out discrete items noted in the reconciliation of Adjusted EBITDA to net income (loss).
(2) Other segment expenses relate to miscellaneous expenses.
(3) Corporate Adjusted EBITDA consists of the activity of the corporate entities, which are not considered operating segments.
(4) Measurement period adjustments reflected in the condensed consolidated statements of operations in the current period related to the Husky Transaction.
The following table reconciles each reportable segment's cash and assets to the Company's totals.
September 30, 2026
CompoSecure
Husky
Other
Total
Total cash
$
72.5 
$
96.9 
$
(163.9)
$
5.5 
Total assets
$
275.6 
$
5,884.7 
$
(2,616.8)
$
3,543.5 
September 30, 2025
CompoSecure
Other
Total
Total cash
$
97.2 
$
30.2 
$
127.4 
Total assets
$
280.8 
$
224.7 
$
505.5