CompoSecure 2025 Q3 Earnings Beats Expectations as Revenue Rises 13% Despite Wider Losses

CompoSecure (CMPO) reported fiscal 2025 Q3 earnings on Nov 3, 2025, with non-GAAP revenue rising 13% year-over-year to $120.9 million, exceeding estimates. The company raised full-year guidance and introduced 2026 targets, signaling confidence in its strategic pivot.

Revenue

CompoSecure’s total revenue surged 13% to $120.9 million in Q3 2025, driven by strong domestic demand and new client wins. This marked a significant reversal from the $0 reported earlier in the article, reflecting robust performance in traditional banks and fintech partnerships.

Earnings/Net Income

The company’s losses widened to $1.58 per share in Q3 2025, a 43.6% increase in loss per share from Q3 2024. Net losses expanded to $174.7 million, a 104.4% year-over-year jump. Despite these setbacks, CompoSecure has maintained profitability for five consecutive years in the corresponding quarter, underscoring operational resilience. The EPS and net loss indicate a challenging quarter, with the loss per share worsening significantly.

Post-Earnings Price Action Review

The stock price of CompoSecure tumbled 10.73% during the latest trading day but edged up 1.58% over the prior week and 0.69% month-to-date. Post-earnings volatility suggests mixed investor sentiment, with short-term corrections offset by gradual recovery.

CEO Commentary

CEO Jonathan Wilk highlighted a 13% revenue increase to $120.9 million and a 30% rise in pro forma adjusted EBITDA to $47.7 million, driven by the CompoSecure Operating System (COS). He emphasized 59% gross margins, new customer programs like Citi Strata Elite, and strategic priorities such as expanding sales teams and R&D investments.

Guidance

CompoSecure raised 2025 guidance to $463 million in non-GAAP net sales and $165–$170 million in pro forma adjusted EBITDA. For 2026, it introduced $510 million in non-GAAP net sales and $190 million in pro forma adjusted EBITDA, excluding Husky’s impact.

Additional News

1. M&A Activity: CompoSecure announced a $5 billion acquisition of Husky Technologies, valuing the combined entity at $7.4 billion. The deal, expected to close in Q1 2026, is financed via a $2 billion PIPE and $1 billion equity rollover.

2. C-Level Changes: Mary Holt was appointed as CFO, succeeding Tim Fitzsimmons, who will retire.

3. Stock Performance: Shares surged 11% pre-market after reporting a $0.29 EPS beat and introducing 2026 guidance, signaling renewed investor optimism.

CompoSecure’s strategic pivot to industrial manufacturing via the Husky acquisition marks a bold shift. The company’s raised guidance and operational improvements, including 59% gross margins, reflect disciplined execution. However, the widened net loss underscores integration challenges and financing risks. Investors will monitor the $2 billion PIPE’s impact on shareholder dilution and the combined entity’s ability to leverage Husky’s engineering expertise.

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Revenue

Earnings/Net Income

Price Action

Post-Earnings Price Action Review

CEO Commentary

Guidance