CompoSecure Q2 2025 presentation: revenue up 10%, raises full-year guidance

CompoSecure Inc (NASDAQ:CMPO) reported strong second-quarter results on August 7, 2025, with accelerating revenue growth and record profitability leading the company to raise its full-year guidance. The premium payment card manufacturer continues to benefit from increasing consumer demand for metal cards and operational efficiencies from its CompoSecure Operating System implementation.

Executive Summary

CompoSecure delivered Non-GAAP Net Sales of $119.6 million in Q2 2025, representing a 10% increase compared to the same period last year. The company’s profitability metrics showed even stronger improvement, with Pro Forma Adjusted EBITDA rising 26% year-over-year to $46.3 million and Adjusted Net Income increasing 17% to $28.4 million.

As shown in the following summary of Q2 2025 results:

"Our strong second quarter was driven by accelerating sales and improved profitability, giving us confidence to raise our full-year guidance," said Jon Wilk, CEO of CompoSecure, during the earnings presentation. The company highlighted several high-profile card program wins, including the Chase Sapphire Reserve and Coinbase (NASDAQ:COIN) One Card, demonstrating continued momentum in securing premium partnerships.

Quarterly Performance Highlights

CompoSecure’s Q2 performance revealed a significant regional shift in its business. Domestic Net Sales surged 22% year-over-year to $104.3 million, while International Net Sales declined 35% to $15.3 million. This represents a notable reversal from Q1 2025, when the company reported a 4% decline in domestic sales and a 28% increase in international sales.

The following chart illustrates this regional performance:

Gross margin expanded significantly to 57.5%, up 588 basis points from 51.6% in Q2 2024. This margin improvement, along with other profitability metrics, demonstrates the effectiveness of the company’s operational initiatives.

The implementation of the CompoSecure Operating System (COS) appears to be a key driver of these efficiency gains, as shown in the profitability metrics below:

The company’s balance sheet remains solid with $96.5 million in cash and a net leverage ratio of 0.66x Net Debt/Pro Forma Adjusted EBITDA, providing financial flexibility for future investments and potential M&A opportunities.

Strategic Initiatives & Recent Wins

CompoSecure continues to strengthen its position in the premium payment card market through high-profile partnerships. The company showcased several recent card program wins, including designs for major financial institutions and cryptocurrency platforms.

The following image displays some of these recent card designs:

These partnerships span traditional financial institutions like Chase and FNBO, as well as cryptocurrency platforms such as Coinbase, Gemini, and Crypto.com, demonstrating CompoSecure’s ability to serve both established and emerging financial service providers.

The company is also advancing its Arculus platform, which extends beyond payment cards into authentication and digital asset security. Arculus serves as a versatile platform for securing digital transactions and assets, potentially opening new revenue streams beyond the core metal card business.

As illustrated in the Arculus product lineup:

"Arculus momentum is accelerating as customers seek out future-proof secure authentication and digital asset solutions," the company noted in its presentation, suggesting this could become a more significant growth driver in coming quarters.

Market Opportunity (SO:FTCE11B) & Competitive Position

Despite its leadership position in metal payment cards, CompoSecure estimates it currently captures less than 1% of the total payment card market, indicating substantial room for growth. The company’s produced cards as a percentage of total payment cards shipped has grown from 0.49% in 2021 to an estimated 0.70% in 2024.

The following chart illustrates this market opportunity:

CompoSecure also highlighted favorable industry trends among major card issuers that support its growth thesis. JPMorgan Chase (NYSE:JPM) reported an 11% CAGR on active Sapphire Preferred and Reserve accounts, American Express (NYSE:AXP) noted that 71% of new acquisitions are fee-paying cards, and Capital One (NYSE:COF) increased its card marketing by 26% in Q2 2025.

These industry trends are visualized in the following slide:

Forward-Looking Statements & Guidance

Based on its strong Q2 performance and increased visibility into second-half customer demand, CompoSecure raised its full-year 2025 guidance. The company now expects consolidated Net Sales of approximately $455 million, up 8% from its previous guidance, and Pro Forma Adjusted EBITDA of approximately $158 million, up 14% from prior estimates.

The revised guidance is illustrated below:

This represents a significant increase from the company’s outlook provided after Q1 results, when it reaffirmed expectations for mid-single-digit growth. The raised guidance suggests management has growing confidence in both customer demand and operational execution for the remainder of 2025.

CompoSecure’s stock closed at $14.40 on August 7, 2025, up 0.21% for the day. The shares have traded between $8.57 and $17.15 over the past 52 weeks, with the current price reflecting the market’s positive reaction to the company’s improving performance trajectory.

Full presentation:

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