CompoSecure, Inc. SEC 10-Q Report
CompoSecure, Inc. has released its Form 10-Q report for Q3 2025, showing net sales of $59.824 million, a decrease due to operational changes. Gross profit improved to $28.749 million, but the company reported a net loss of $(179.329) million, largely from warrant liabilities. Customer concentration is high, with four customers making up 70% of revenue. The company expects growth in the financial payment card market, following its operational restructuring post the spin-off of Resolute Holdings.
CompoSecure, Inc., a leading provider in the financial payment card market, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the company's strategic initiatives and market conditions.
Financial Highlights
- Net Sales: $59.824 million, reflecting a decrease from the previous period due to changes in the company's operational structure.
- Gross Profit: $28.749 million, indicating a margin improvement driven by cost management and efficiency gains.
- (Loss) Income from Operations: $(6.551) million, impacted by increased selling, general, and administrative expenses.
- Net Loss: $(179.329) million, primarily due to significant revaluation of warrant liabilities and earnout consideration.
- Net Loss Per Share - Basic: $(1.70), reflecting the impact of the net loss on shareholders.
Business Highlights
- Revenue Segments: The company reported net sales of $120,865 for the three months ended September 30, 2025, and $284,522 for the period from February 28, 2025, through September 30, 2025, primarily driven by its operations in the financial payment card market.
- Geographical Performance: The company's principal customers are primarily located in the U.S., Europe, Asia, Latin America, Canada, and the Middle East. For the nine months ended September 30, 2025, domestic sales accounted for $54,480, while international sales contributed $5,344.
- Customer Concentration: Four customers accounted for 70.0% of total revenue for the nine months ended September 30, 2025, indicating a high level of customer concentration.
- Operational Changes: Following the Spin-Off of Resolute Holdings, the company now operates as a single reportable segment, focusing on its equity method investment in CompoSecure Holdings, LLC.
- Future Outlook: The company anticipates continued growth in its core market of financial payment cards, leveraging its established position and long-term customer relationships to drive future performance.
SEC Filing: CompoSecure, Inc. [ CMPO ] - 10-Q - Nov. 03, 2025
