CompoSecure raises 2025 guidance after strong Q3 results

NEW YORK - CompoSecure, Inc. (NYSE:CMPO), a manufacturer of metal payment cards and security solutions, reported Monday that third-quarter revenue increased 13% year-over-year, driven by strong customer demand and new program wins across traditional banks and fintechs. The company’s stock is currently trading near its 52-week high of $21.16, reflecting strong investor confidence following a remarkable 60% price return over the past year.

The company posted non-GAAP net sales of $120.9 million for the quarter ended September 30, compared to $107.1 million in the same period last year. Gross profit rose to $71.3 million with a 59.0% gross margin, up from $55.4 million and 51.7% margin in the prior-year quarter.

Non-GAAP pro forma adjusted EBITDA increased 30% to $47.7 million, reflecting strong organic sales growth and margin expansion. The company reported a GAAP net loss of $174.7 million, primarily due to non-cash items related to revaluation of warrant and earnout liabilities.

"CompoSecure’s third quarter performance exceeded expectations across all key metrics," said Jon Wilk, President and CEO of CompoSecure, in a statement based on the company’s press release.

CompoSecure also announced a business combination with Husky Technologies Limited, a manufacturer of engineered equipment and aftermarket services. The transaction values the combined business at approximately $7.4 billion and is expected to close in the first quarter of 2026, subject to regulatory approval.

The company raised its full-year 2025 guidance, now expecting total non-GAAP net sales of approximately $463 million and non-GAAP pro forma adjusted EBITDA of approximately $165-170 million. For fiscal year 2026, CompoSecure projects non-GAAP net sales of approximately $510 million, up 10% year-over-year.

At September 30, CompoSecure had $265.3 million in cash and short-term investments and $190.0 million of total debt, resulting in a net cash position of $75.3 million, compared to net debt of $277.3 million a year earlier.

In other recent news, CompoSecure Inc. has seen significant developments. Needham has raised its price target for CompoSecure to $22 from $18, maintaining a Buy rating due to strong card growth among its customer base, particularly in the fintech sector. Similarly, Benchmark increased its price target to $24 from $17, also maintaining a Buy rating. On the management front, CompoSecure announced the appointment of Mary Holt as the new Chief Financial Officer, effective immediately following the company’s Q3 2025 Quarterly Report. Holt will succeed Tim Fitzsimmons, who is retiring but will stay on in an advisory capacity to ensure a smooth transition. Additionally, CompoSecure plans to transfer its stock listing from Nasdaq to the New York Stock Exchange while keeping its current ticker symbol. Despite these positive moves, JPMorgan downgraded the stock to Underweight from Neutral, citing valuation concerns after a 25% rally in shares following a strong second-quarter earnings report. The report highlighted a return to double-digit growth with a 10% increase and a gross profit margin beat.

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