Compass Diversified gets extension for restated financial results

WESTPORT, Conn. - Compass Diversified (NYSE:CODI) announced Monday that its senior secured lender group has extended the deadline for publishing restated financial results to November 10, 2025. The company's stock, currently trading at $6.18, has fallen dramatically from its 52-week high of $24.32, with a 71.61% decline year-to-date according to InvestingPro data.

The extension applies to CODI's financial restatements for fiscal years 2022, 2023, and 2024. The company indicated it is in active discussions with lenders regarding a formal forbearance extension to provide additional time to complete the restatement process, which it expects to finalize soon.

CODI continues to investigate financial and accounting irregularities at its Lugano Holding Inc. subsidiary. The company emphasized that the investigation is isolated to Lugano and does not affect its other subsidiaries, which reportedly continue to perform well.

"We are nearing the end of a highly complex restatement process as we unwind a sophisticated financial and accounting fraud perpetrated by Lugano's founder and former CEO," said Elias Sabo, CEO of CODI.

The company has not disclosed the potential financial impact of the restatements or when it expects to complete the process. The investigation could result in material changes to previously reported financial statements. Despite recent challenges, InvestingPro analysis indicates CODI is trading below its Fair Value, with analysts forecasting a return to profitability with projected earnings of $2.13 per share this fiscal year.

According to the press release statement, CODI is working to resolve these accounting issues while maintaining operations across its portfolio of businesses. Despite rapidly burning through cash, the company maintains a strong current ratio of 4.07, indicating its liquid assets exceed short-term obligations. CODI also continues to pay a significant dividend with a current yield of 15.67%. For comprehensive analysis of CODI and 1,400+ other stocks, investors can access detailed Pro Research Reports through InvestingPro.

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