The Sterno divestiture and deleveraging are near-term positives, but core revenue (ex-Lugano) is flat, signaling muted organic growth. Monitor Q2 2026 for evidence of sustained EBITDA improvement and further debt paydown.
Price Chart
Executive Summary
Compass Diversified reported Q1 2026 GAAP net revenues of $426.9M (down 5.9% YoY, missing $437.7M consensus), but ex-Lugano revenues were flat at $426.9M. Net loss narrowed to $30.8M from $49.8M, and Subsidiary Adjusted EBITDA rose 6.3% to $83.9M. The company completed the sale of Sterno's food service business for $292.5M, using proceeds to reduce debt and avoid milestone fees.
Key Financial Metrics
Key Facts
- GAAP net revenues $426.9M vs. $453.8M prior year, down 5.9%
- Excluding Lugano, revenues flat at $426.9M vs. $426.9M prior year
- Net loss from continuing operations improved to $30.8M from $49.8M
- Subsidiary Adjusted EBITDA up 6.3% to $83.9M
- Sold Sterno food service business for $292.5M enterprise value, net proceeds ~$280M
- Guidance for FY2026 Subsidiary Adjusted EBITDA $320M-$365M (adjusted for Sterno sale)
- Cash and cash equivalents $65.2M; revolver availability ~$100M
Financial Impact
Sale of Sterno generated ~$280M in net proceeds, reducing debt below 1.0x senior secured leverage
Risk Factors
- Ongoing Lugano bankruptcy and litigation over internal controls
- Potential NYSE listing non-compliance
- Macroeconomic headwinds affecting middle-market subsidiaries
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001345126-26-000041 |
| Document: codi-20260506.htm | 0001345126-26-000041 |
| Document: 0001345126-26-000041-index-headers.html | 0001345126-26-000041 |
| Document: 0001345126-26-000041-index.html | 0001345126-26-000041 |
| Document: 0001345126-26-000041.txt | 0001345126-26-000041 |
| 8-K Data (Synthetic) | 0001345126-26-000041 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | Press Release | $10.41 | awaiting T+60 | — | $10.26 (−1.44%) |
Oct 1, 2026 25d ago | Press Release | $10.93 | awaiting T+60 | — | $10.26 (−6.13%) |
Aug 27, 2026 8w ago | Insider Buy | $11.45 | awaiting T+60 | — | $10.26 (−10.39%) |
Aug 18, 2026 9w ago | Insider Cluster | $11.59 | awaiting T+60 | — | $10.26 (−11.48%) |
Aug 14, 2026 10w ago | Insider Cluster | $12.10 | awaiting T+60 | — | $10.26 (−15.21%) |
Aug 13, 2026 10w ago | Insider Cluster | $12.71 | awaiting T+60 | — | $10.26 (−19.28%) |
Aug 10, 2026 11w ago | 8-K | $12.32 | awaiting T+60 | — | $10.26 (−16.72%) |
Jul 13, 2026 15w ago | 8-K | $9.93 $11.02 | ▲ +10.98% | ▲ +6.98% | $10.26 (+3.32%) |
Jul 1, 2026 16w ago | Press Release | $10.61 $11.25 | ▲ +6.03% | ▲ +3.02% | $10.26 (−3.30%) |
Jun 24, 2026 17w ago | 8-K | $9.85 $11.03 | ▲ +11.98% | ▲ +8.25% | $10.26 (+4.16%) |
US Market Status
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