Did CompoSecure beat or miss consensus estimates last quarter?

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What does CompoSecure do and what are its main business segments?

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What were the key takeaways from CompoSecure's earnings call?

What is the market's earnings forecast for CompoSecure next quarter?

- **Husky Transaction**: $5B acquisition (11.2x 2026 EBITDA) creating a diversified compounder with 70% recurring revenue and 12.5% EBITDA growth target.
- **Q3 Financials**: 13% revenue growth, 30% EBITDA increase, 59% gross margin; 2026 guidance of $510M net sales and $190M EBITDA.
- **Margin Expansion**: 100bps annual target for combined company; CompoSecure still early in operating system implementation.
- **Recurring Revenue**: Husky's 65% from aftermarket; CompoSecure's 70% from metal cards.

**【Management Opening Remarks】**
- Steven Feder introduced the call, highlighting the business combination with Husky Technologies and emphasizing non-GAAP financial measures.
- David Cote expressed excitement about the Husky transaction, noting it creates a diversified compounder with strong growth potential and margin expansion opportunities.

**【CEO Summary Section】**
- Jonathan Wilk reported Q3 2025 results: 13% YoY revenue growth to $120.9M, 30% EBITDA increase to $47.7M, and 59% gross margin (vs. 51.7% prior year).
- Raised 2025 guidance to $463M net sales and $165-170M EBITDA; introduced 2026 guidance of $510M net sales and $190M EBITDA.
- Highlighted new CFO Mary Holt's experience and role in advancing strategic initiatives.

**【CFO Financial Commentary】**
- Timothy Fitzsimmons detailed financials: $224.6M cash on hand, $190M total debt (down from $330M), and strong free cash flow generation.
- Domestic net sales grew 31% to $105.1M, while international sales declined 42% due to order timing.
- Pro forma EBITDA margin expanded 529bps to 39.5%.

**【Q&A Highlights】**
- Share count: 291M on a pro forma basis post-Husky transaction.
- Margin expansion: 100bps annually for combined company, with CompoSecure still early in COS implementation.
- Recurring revenue: Husky's 65% from aftermarket parts/services; CompoSecure's 70% recurring from metal cards.
- Synergies: No direct business synergies; focus on operating system implementation for both companies.

CompoSecure, Inc. (CMPO) Q3 2025 Earnings Call Transcript

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International

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