Overview

• Middle-market business owner reported Q4 net revenues down 5.1% yr/yr

• Adjusted EBITDA for Q4 rose 18.4% yr/yr, excluding Lugano

• Company completed sale-leaseback of Altor facilities to reduce debt

Outlook

• Company expects 2026 subsidiary Adjusted EBITDA between $345 mln and $395 mln

• CODI sees 2026 Branded Consumer Adjusted EBITDA between $220 mln and $260 mln

• Company anticipates Industrial Adjusted EBITDA between $125 mln and $135 mln in 2026

Result Drivers

• DECONSOLIDATION IMPACT - CODI deconsolidated Lugano, affecting GAAP results with a $111.9 mln loss on deconsolidation

• SOLID SUBSIDIARY PERFORMANCE - Excluding Lugano, subsidiary adjusted EBITDA rose 18.4% in Q4, reflecting strong performance across remaining businesses

• DEBT REDUCTION - Completed sale-leaseback of Altor facilities, generating $11 mln to pay down debt

Company press release: ID:nGNXb4nWCj

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Slight Miss*	$468.56 mln	$472.84 mln (2 Analysts)
Q4 Net Income	Miss	-$78.80 mln	$9.80 mln (1 Analyst)
Q4 Adjusted EBITDA	Beat	$91.02 mln	$86.35 mln (2 Analysts)
Q4 Operating Income	Beat	$45.97 mln	$15.50 mln (2 Analysts)
Q4 Pretax Profit	Miss	-$105.99 mln	$1.20 mln (3 Analysts)
Q4 Gross Profit		$202.10 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment holding companies peer group is "buy"

• Wall Street's median 12-month price target for Compass Diversified Holdings is $15.00, about 82.7% above its February 25 closing price of $8.21

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