Earnings release
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Exhibit 99.1 Compass Diversified Reports Third Quarter 2026 Financial Results • Income from Continuing Operations of $23.2 million, compared with a loss of $86.7 million in the prior-year period • Subsidiary Adjusted EBITDA excluding divested assets was $89.7 million, up 12.9% year-over-year Westport, Conn., November 4, 2026 – Compass Diversified (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced today its consolidated operating results for the three and nine months ended September 30, 2026 and filed its Quarterly Report on Form 10-Q for the period. “Our third-quarter results demonstrate the strength of our businesses and the durability of CODI’s diversified model,” said Elias Sabo, Chief Executive Officer of Compass Diversified. “Our teams delivered while continuing to advance our strategic priorities.” “Our consumer businesses delivered an outstanding third quarter, with Adjusted EBITDA increasing 28% year- over-year, led by The Honey Pot, BOA and PrimaLoft,” said Zach Sawtelle, Chief Operating Officer of Compass Diversified. “The Honey Pot and Arnold each more than doubled Adjusted EBITDA, while BOA and PrimaLoft grew 22% and 28%, respectively.” Sawtelle continued, “Our priorities remain clear: drive profitable growth, generate cash for debt reduction and pursue divestitures where we can realize attractive value. As we reduce leverage, we will evaluate opportunities to return capital to shareholders when appropriate. We are focused on disciplined execution and a capital allocation strategy that delivers long-term value for shareholders.” Financial Summary – GAAP Results Year-over-year GAAP comparisons reflect the inclusion of Lugano and Sterno’s Food Service Business in the 2025 periods. The 2026 periods exclude Lugano's operating results following its deconsolidation on November 16, 2025, while Sterno’s Food Service Business is included through its May 1, 2026 sale date. Q3 2026 vs Q3 2025 (GAAP) • Net revenues: $422.9 million, down 10.5% • Net income from continuing operations: $23.2 million vs net loss from continuing operations of $86.7 million • Net income attributable to Holdings: $21.5 million, or $0.06 per common share, vs. a net loss of $74.0 million, or $1.21 per common share • Cash provided by operating activities: $51.6 million, vs. $10.7 million
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Financial Summary – Non-GAAP Results To facilitate comparison of CODI’s continuing subsidiaries, the following non-GAAP results exclude Lugano from the prior-year period and exclude net sales and Adjusted EBITDA attributable to the divested Sterno Food Service Business from both current and prior-year periods. Rimports and the Food Service Business historically operated and were reported together as Sterno Group under a shared management structure. Following the sale, certain shared management and other indirect costs remained with Rimports. To provide a comparable view of the continuing business, the non-GAAP results exclude the Food Service Business’s net sales and Adjusted EBITDA and reflect the costs retained by Rimports on a consistent basis in both periods. Q3 2026 vs Q3 2025 (Non-GAAP) • Net revenues: $422.9 million, up 0.8% ◦ Branded Consumer: $275.6 million, up 4.3% ◦ Industrial: $147.3 million, down 5.2% • Subsidiary Adjusted EBITDA: $89.7 million, up 12.9% ◦ Branded Consumer: $69.8 million, up 27.5% ◦ Industrial: $19.8 million, down 19.6% Key Business Updates During and subsequent to the quarter, CODI: • Applied nearly $30 million in proceeds from the Lugano bankruptcy distribution to senior secured term loan debt. Liquidity and Capital Resources As of September 30, 2026, CODI had approximately $127.2 million in cash and cash equivalents and approximately $53.0 million in revolver availability. Total debt was $1,571.7 million, compared with $1,890.7 million as of December 31, 2025. CODI’s leverage ratio for debt covenant purposes was approximately 4.5x as of September 30, 2026, down from 4.8x as of June 30, 2026, and senior secured net leverage was 0.5x as of September 30, 2026. 2026 Outlook CODI is tightening its fiscal 2026 total Subsidiary Adjusted EBITDA outlook to a range of $330 million to $355 million. The midpoint remains consistent with previous guidance. The outlook includes approximately $9 million of Adjusted EBITDA generated by the Sterno Food Service Business through its May 1, 2026 sale date. That contribution will be reflected in CODI’s reported full-year results but will not recur following the sale. CODI’s outlook reflects higher expectations for the Branded Consumer businesses and lower expectations for the Industrial businesses relative to prior guidance.
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2026 Outlook Low High (in millions) Subsidiary Adjusted EBITDA Branded Consumer $ 250.0 $ 270.0 Industrial $ 80.0 $ 85.0 Subsidiary Adjusted EBITDA $ 330.0 $ 355.0 Conference Call In conjunction with this announcement, CODI will host a conference call on November 4, 2026, at 5:00 p.m. ET / 2:00 p.m. PT with the Company’s Chief Executive Officer, Elias Sabo, Chief Operating Officer, Zach Sawtelle and Chief Financial Officer, Stephen Keller. A live webcast of the call will be available on the Investor Relations section of CODI’s website. To avoid delays, we encourage participants to log into the webcast 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website. Note Regarding Use of Non-GAAP Financial Measures Adjusted EBITDA, Subsidiary Adjusted EBITDA, Subsidiary Adjusted EBITDA excluding Lugano and the divested Sterno Food Service Business, Net Sales excluding Lugano, and Net Sales excluding Lugano and the divested Sterno Food Service Business are non-GAAP financial measures used by the Company to assess its performance. We have reconciled Adjusted EBITDA, Subsidiary Adjusted EBITDA and Subsidiary Adjusted EBITDA excluding Lugano and the divested Sterno Food Service Business to Income (Loss) from Continuing Operations, and non-GAAP Net Sales measures to Net Sales on the attached schedules. We consider Income (Loss) from Continuing Operations to be the most directly comparable GAAP financial measure to Adjusted EBITDA, Subsidiary Adjusted EBITDA, and Subsidiary Adjusted EBITDA excluding Lugano and the divested Sterno Food Service Business; and Net Sales to be the most directly comparable GAAP financial measure to the non-GAAP Net Sales measures. The attached schedules should be read together as continuous reconciliations of the applicable non-GAAP measures to their most directly comparable GAAP measures. We believe that Adjusted EBITDA provides useful information to investors and reflects important financial measures, as it excludes the effects of items that reflect the impact of long-term investment decisions, rather than the performance of near-term operations. When compared to Net Income (Loss) from Continuing Operations, Adjusted EBITDA is limited in that it does not reflect the periodic costs of certain capital assets used in generating revenues of our businesses, non-cash charges associated with impairments and certain cash charges. The presentation of Adjusted EBITDA allows investors to view the performance of our businesses in a manner similar to the methods used by us and the management of our businesses, provides additional insight into our operating results and provides a measure for evaluating targeted businesses for acquisition. As used in the body of this press release, Subsidiary Adjusted EBITDA refers to the sum of Adjusted EBITDA for the applicable period attributable to each consolidated subsidiary of the Company, disregarding corporate expense, unless the context indicates otherwise. Management uses Subsidiary Adjusted EBITDA to evaluate the operating performance of subsidiaries before corporate expense. Because the measure excludes corporate expense, it does not reflect CODI’s consolidated operating results and should be considered together with the comparable GAAP measure and the other information in this release. Subsidiary Adjusted EBITDA, excluding Lugano and the divested Sterno Food Service Business, represents Subsidiary Adjusted EBITDA after excluding Adjusted EBITDA (loss) attributable to Lugano and Adjusted EBITDA attributable to the divested Sterno Food Service Business. Net Sales excluding Lugano represents reported Net Sales after excluding Net Sales attributable to Lugano for the applicable
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periods. Net Sales excluding Lugano and the divested Sterno Food Service Business represent reported Net Sales after excluding Net Sales attributable to those businesses for the applicable periods. We believe these measures facilitate comparison of the operating performance and net sales of CODI’s continuing subsidiaries across periods. Adjusted EBITDA attributable to the divested Sterno Food Service Business is calculated from Rimports’ reported results by identifying the net sales and directly attributable expenses of the Food Service Business and applying CODI’s Adjusted EBITDA methodology. Rimports and the Food Service Business historically operated and were reported together as Sterno Group under a shared management structure. Following the sale, certain shared management and other indirect costs remained with Rimports. Those costs remain in Rimports' results for all periods presented. Therefore, the exclusion of the Food Service Business does not eliminate all costs historically shared by the combined operations. In reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K, we have not reconciled our 2026 Subsidiary Adjusted EBITDA guidance to the most directly comparable GAAP measure because certain components of Income (Loss) from Continuing Operations, including potential impairment charges, acquisition- and disposition-related gains, losses and expenses, fair-value adjustments and related income-tax effects, cannot be reasonably predicted without unreasonable effort. These items could be material to our future results. These non-GAAP financial measures are not intended to be substitutes for the most directly comparable GAAP financial measures and may differ from, or otherwise be inconsistent with, similarly titled non-GAAP financial measures used by other companies. About Compass Diversified CODI leverages its permanent capital base and long-term disciplined approach, maintaining controlling ownership interests in each of its subsidiaries and maximizing its ability to impact long-term cash flow generation and value creation. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and seeks to generate strong returns through its culture of transparency, alignment and accountability. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation, CODI’s expectations regarding its Adjusted EBITDA, subsidiary Adjusted EBITDA, plans for future divestitures and return of capital and its future performance, growth, liquidity and leverage, and the future performance of CODI’s subsidiaries. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as “believe,” “expect,” “may,” “could,” “would,” “plan,” “intend,” “estimate,” “predict,” “future,” “potential,” “continue,” “should” or “anticipate” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These statements are based on management’s current expectations, estimates, forecasts and assumptions and information available to management as of the date of this press release. These statements involve risks and uncertainties that could cause actual results and outcomes to differ, perhaps materially, including but not limited to: changes in the economy, financial markets and political environment, including changes in inflation, interest rates and U.S. tariff and import/export regulations; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, war, natural disasters, or social, civil or political unrest; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); environmental risks affecting the business or operations of our subsidiaries; disruption in the global supply chain, labor shortages and labor costs; our business prospects and the prospects of our subsidiaries; the impact of, and ability to successfully complete and integrate, acquisitions that we have made or may make; the ability to successfully execute divestitures
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and complete divestitures that we may execute; the dependence of our future success on the general economy and its impact on the industries in which we operate; the ability of our subsidiaries to achieve their objectives; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our subsidiaries; the cooperation of, and future concessions granted by, CODI’s lenders; control deficiencies identified or that may be identified in the future that will result in material weaknesses in CODI’s internal control over financial reporting; the amount and timing of any additional recoveries from the court-approved Lugano liquidation settlement; and litigation relating to the Lugano investigation, including CODI’s representations regarding its financial statements, and current and future litigation, enforcement actions or investigations relating to CODI’s internal controls, restatement reviews, the Lugano investigation or related matters. Please see CODI’s Annual Report on Form 10-K filed with the SEC on February 27, 2026 for other risk factors that you should consider in connection with such forward-looking statements. Investors are cautioned not to place undue reliance on forward- looking statements, which speak only as of the date such statements have been made. Except as required by law, CODI does not undertake any public obligation to update any forward-looking statements to reflect events, circumstances, or new information after the date of this press release, or to reflect the occurrence of unanticipated events. Investor Relations Compass Diversified irinquiry@compassdiversified.com
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Compass Diversified Holdings Condensed Consolidated Balance Sheets (Unaudited) September 30, 2026 December 31, 2025 (in thousands) Assets Current assets Cash and cash equivalents $ 127,167 $ 68,015 Accounts receivable, net 195,889 202,887 Inventories, net 370,228 404,102 Prepaid expenses and other current assets 65,723 78,398 Due from related parties 1,300 20,757 Due from unconsolidated affiliate — 71,000 Total current assets 760,307 845,159 Property, plant and equipment, net 182,625 209,742 Goodwill 830,902 895,421 Intangible assets, net 795,144 892,811 Due from unconsolidated affiliate 9,500 26,000 Other non-current assets 171,072 170,051 Total assets $ 2,749,550 $ 3,039,184 Liabilities and stockholders’ equity Current liabilities Accounts payable and accrued expenses $ 245,903 $ 259,600 Current portion, long-term debt 75,000 37,500 Other current liabilities 47,118 52,519 Total current liabilities 368,021 349,619 Deferred income taxes 91,970 104,189 Long-term debt 1,486,272 1,839,817 Other non-current liabilities 177,640 171,896 Total liabilities 2,123,903 2,465,521 Stockholders' equity Total stockholders' equity attributable to Holdings 483,579 442,024 Noncontrolling interest 142,068 131,639 Total stockholders' equity 625,647 573,663 Total liabilities and stockholders’ equity $ 2,749,550 $ 3,039,184
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Compass Diversified Holdings Consolidated Statements of Operations (Unaudited) Three months ended September 30, Nine months ended September 30, (in thousands, except per share data) 2026 2025 2026 2025 Net sales $ 422,930 $ 472,562 $ 1,273,827 $ 1,405,027 Cost of sales 224,420 264,847 685,996 792,739 Gross profit 198,510 207,715 587,831 612,288 Operating expenses: Selling, general and administrative expense 130,362 179,315 396,709 491,804 Management fees 13,651 16,213 43,402 54,111 Amortization expense 22,652 23,254 68,182 69,722 Impairment expense — — 20,500 31,515 Other operating income — — (10,234) — Operating income (loss) 31,845 (11,067) 69,272 (34,864) Other income (expense): Interest expense, net (21,769) (66,721) (73,159) (136,668) Amortization of debt issuance costs (1,711) (826) (5,805) (2,922) Loss on debt modification (1,038) — (1,038) (2,827) Increase (decrease) in fair value of receivable due fromunconsolidated affiliate 303 — (57,697) — Gain on sale of product division (4,338) — 178,004 — Other expense, net (239) (2,343) (3,038) (14,311) Net income (loss) from continuing operations beforeincome taxes 3,053 (80,957) 106,539 (191,592) Provision (benefit) for income taxes (20,140) 5,763 32,303 25,659 Income (loss) from continuing operations 23,193 (86,720) 74,236 (217,251) Gain (loss) on sale of discontinued operations 435 (523) 2,072 2,326 Net income (loss) 23,628 (87,243) 76,308 (214,925) Less: Net income (loss) from continuing operationsattributable to noncontrolling interest 2,084 (13,228) 4,434 (59,700) Net income (loss) attributable to Holdings $ 21,544 $ (74,015) $ 71,874 $ (155,225) Amounts attributable to Holdings Income (loss) from continuing operations $ 21,109 $ (73,492) $ 69,802 $ (157,551) Gain (loss) on sale of discontinued operations, net ofincome tax 435 (523) 2,072 2,326 Net income (loss) attributable to Holdings $ 21,544 $ (74,015) $ 71,874 $ (155,225) Basic income (loss) per common share attributable toHoldings Continuing operations $ 0.05 $ (1.20) $ 0.42 $ (2.53) Discontinued operations 0.01 (0.01) 0.03 0.03 $ 0.06 $ (1.21) $ 0.45 $ (2.50) Basic weighted average number of common sharesoutstanding 75,236 75,236 75,236 75,236
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Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three months ended September 30, 2026 (Unaudited) Corporate 5.11 BOA PrimaLoft THP VelocityOutdoor Altor Arnold Rimports Consolidated Income (loss)from continuingoperations $ (5,312) $11,334 $10,214 $ (3,492) $ 7,481 $ 2,546 $(1,936) $1,761 $ 597 $ 23,193 Adjusted for: Provision(benefit) forincome taxes (27,176) 2,972 2,125 (1,097) 2,572 (44) (1,965) 2,240 233 (20,140) Interest expense,net 21,633 (1) — (12) 6 9 — 134 (1) 21,768 Intercompanyinterest (17,264) 2,147 2,225 3,590 1,495 1,800 3,866 2,128 13 — Loss on debtmodification 1,038 — — — — — — — — 1,038 Depreciation andamortization 1,111 4,971 5,322 5,313 4,150 1,522 6,607 2,647 3,007 34,650 EBITDA (25,970) 21,423 19,886 4,302 15,704 5,833 6,572 8,910 3,849 60,509 Other (income)expense 4,036 (44) 125 3 (16) 58 175 1 (62) 4,276 Noncontrollingshareholdercompensation — 489 990 755 325 4 251 27 — 2,841 Other — — — — — — — — 113 113 Adjusted EBITDA $(21,934) $21,868 $21,001 $ 5,060 $16,013 $ 5,895 $ 6,998 $8,938 $ 3,900 $ 67,739
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Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Three Months Ended September 30, 2025 (Unaudited) Corporate 5.11 BOA Lugano PrimaLoft THP VelocityOutdoor Altor Arnold Sterno Consolidated Income (loss)from continuingoperations $ (77,345) $ 9,628 $ 5,399 $ (34,211) $ (4,534) $ 196 $ 1,318 $ (714) $7,546 $ 5,997 $ (86,720) Adjusted for: Provision(benefit) forincome taxes 9,601 3,006 1,573 — (1,439) 76 (72) (265) (8,643) 1,926 5,763 Interestexpense, net 61,480 (1) (1) 5,084 (9) (1) 21 — 148 — 66,721 Intercompanyinterest (40,752) 3,819 3,515 16,555 4,037 2,347 1,908 4,427 2,152 1,992 — Loss on debtmodification — — — — — — — — — — — Depreciationandamortization (251) 5,443 5,253 725 5,296 4,156 1,353 6,672 2,781 3,536 34,964 EBITDA (47,267) 21,895 15,739 (11,847) 3,351 6,774 4,528 10,120 3,984 13,451 20,728 Other (income)expense — (257) 118 1,288 8 (21) (268) 1,587 4 (116) 2,343 Noncontrollingshareholdercompensation — 571 1,375 643 585 382 5 239 4 269 4,073 Impairmentexpense — — — — — — — — — — Other — — — — — — — 2,889 149 117 3,155 AdjustedEBITDA $ (47,267) $22,209 $17,232 $ (9,916) $ 3,944 $7,135 $ 4,265 $14,835 $4,141 $13,721 $ 30,299 Other represents specified operating expenses that are included by management in the calculation of Adjusted EBITDA when analyzing monthly operating results of our subsidiaries. In the third quarter of 2025, the calculation of Adjusted EBITDA for Arnold includes the add-back of certain expenses that have been incurred related to the relocation of two of Arnold's facilities in the United States and severance costs related to chief executive officer at Arnold. For Altor, other includes the add-back of certain expenses incurred related to restructuring of their facilities after the acquisition of Lifoam. (1) (1)
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Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Nine months ended September 30, 2026 (Unaudited) Corporate 5.11 BOA PrimaLoft THP VelocityOutdoor Altor Arnold Rimports Consolidated Income (loss) fromcontinuingoperations $ 8,923 $23,810 $36,686 $(22,771) $16,787 $(2,406) $ 522 $ 2,314 $ 10,371 $ 74,236 Adjusted for: Provision (benefit)for income taxes 8,734 4,765 5,996 883 5,479 81 (261) 2,948 3,678 32,303 Interest expense,net 72,833 (3) — (28) 17 25 — 422 (107) 73,159 Intercompanyinterest (55,609) 7,664 7,547 10,875 5,148 4,915 11,633 6,382 1,445 — Loss on debtmodification 1,038 — — — — — — — — 1,038 Depreciation andamortization 3,754 16,415 15,867 15,957 12,457 4,301 19,768 8,095 9,930 106,544 EBITDA 39,673 52,651 66,096 4,916 39,888 6,916 31,662 20,161 25,317 287,280 Other (income)expense (117,504) (16) 249 14 (82) (256) 579 3 (256) (117,269) Non-controllingshareholdercompensation — 1,786 2,942 1,937 1,008 12 601 79 315 8,680 Impairmentexpense — — — 20,500 — — — — — 20,500 Other — — — — — — (9,698) — 338 (9,360) Adjusted EBITDA $(77,831) $54,421 $69,287 $ 27,367 $40,814 $ 6,672 $23,144 $20,243 $ 25,714 $ 189,831 Rimports includes the Adjusted EBITDA of the Sterno food service product division from January 1, 2026 through the date of sale, May 1, 2026. The amount of Other (income) expense at corporate includes the change in the fair value of the receivable due from unconsolidated affiliate ($57.7 million) and the gain on the sale of the Sterno food service product division ($178.0 million). Other in the nine months ended September 30, 2026 includes the add-back of a gain on sale leaseback at Altor. (1) (2) (3) (1) (2) (3)
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Compass Diversified Holdings Net Income (Loss) from Continuing Operations to Non-GAAP Consolidated Adjusted EBITDA Reconciliation Nine Months Ended September 30, 2025 (Unaudited) Corporate 5.11 BOA Lugano PrimaLoft THP VelocityOutdoor Altor Arnold Sterno Consolidated Income (loss)from continuingoperations $(105,368) $18,392 $22,656 $(154,653) $ (4,710) $ 2,785 $(5,413) $ 492 $(7,395) $15,963 $ (217,251) Adjusted for: Provision(benefit) forincome taxes 9,601 5,468 3,796 (255) (511) 846 41 377 1,172 5,124 25,659 Interestexpense, net 115,406 (3) (3) 20,846 (22) (8) 8 — 444 — 136,668 Intercompanyinterest (121,688) 10,910 11,235 48,360 12,180 7,371 5,004 13,980 6,186 6,462 — Loss on debtmodification 2,827 — — — — — — — — — 2,827 Depreciation andamortization (283) 16,746 15,749 3,793 15,950 12,475 4,090 19,787 8,062 10,522 106,891 EBITDA (99,505) 51,513 53,433 (81,909) 22,887 23,469 3,730 34,636 8,469 38,071 54,794 Other (income)expense 12 (394) 223 13,017 20 18 (478) 2,177 25 (309) 14,311 Non-controllingshareholdercompensation — 1,738 4,089 2,185 1,753 826 127 726 12 818 12,274 Impairmentexpense — — — 31,515 — — — — — — 31,515 Integrationservices fee — — — — — 875 — — — — 875 Other — — — — — — — 5,943 2,359 280 8,582 Adjusted EBITDA $ (99,493) $52,857 $57,745 $ (35,192) $ 24,660 $25,188 $ 3,379 $43,482 $10,865 $38,860 $ 122,351 Other represents specified operating expenses that are included by management in the calculation of Adjusted EBITDA when analyzing monthly operating results of our subsidiaries. In the current year, the calculation of Adjusted EBITDA for Arnold includes the add-back of certain expenses that have been incurred related to the relocation of two of Arnold's facilities in the United States and severance costs related to the chief executive officer at Arnold. For Altor, other includes the add-back of certain expenses incurred related to restructuring of their facilities after the acquisition of Lifoam. (1) (1)
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Compass Diversified Holdings Non-GAAP Adjusted EBITDA (Unaudited) Three months ended September 30, Nine months ended September 30, (in thousands) 2026 2025 2026 2025 Branded Consumer 5.11 $ 21,868 $ 22,209 $ 54,421 $ 52,857 BOA 21,001 17,232 69,287 57,745 Lugano — (9,916) — (35,192) PrimaLoft 5,060 3,944 27,367 24,660 The Honey Pot Co. 16,013 7,135 40,814 25,188 Velocity Outdoor 5,895 4,265 6,672 3,379 Total Branded Consumer $ 69,837 $ 44,869 $ 198,561 $ 128,637 Industrial Altor Solutions 6,998 14,835 23,144 43,482 Arnold Magnetics 8,938 4,141 20,243 10,865 Rimports 3,900 13,721 25,714 38,860 Total Industrial $ 19,836 $ 32,697 $ 69,101 $ 93,207 Total Subsidiary Adjusted EBITDA 89,673 77,566 267,662 221,844 Corporate expense (21,934) (47,267) (77,831) (99,493) Total Adjusted EBITDA $ 67,739 $ 30,299 $ 189,831 $ 122,351
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Compass Diversified Holdings Subsidiary Adjusted EBITDA, Excluding Lugano and Divested Sterno Food Service Business (Unaudited) Three months ended September 30, Nine months ended September 30, (in thousands) 2026 2025 2026 2025 Total Branded Consumer $ 69,837 $ 44,869 $ 198,561 $ 128,637 Less: Adjusted EBITDA (loss) attributable to Lugano — (9,916) — (35,192) Total Branded Consumer, excluding Lugano $ 69,837 $ 54,785 $ 198,561 $ 163,829 Total Industrial $ 19,836 $ 32,697 $ 69,101 $ 93,207 Less: Adjusted EBITDA attributable to the divestedSterno Food Service Business — 8,029 9,401 24,392 Total Industrial, excluding the divested Sterno FoodService Business $ 19,836 $ 24,668 $ 59,700 $ 68,815 Subsidiary Adjusted EBITDA, excluding Lugano andthe divested Sterno Food Service Business $ 89,673 $ 79,453 $ 258,261 $ 232,644 Adjusted EBITDA attributable to the divested Sterno Food Service Business is calculated from the reported results of Rimports by identifying the net sales and directly attributable expenses of the Food Service Business and applying CODI’s Adjusted EBITDA methodology. The calculation does not allocate to the Food Service Business shared management or other indirect costs that were not specifically attributable to that business. (1) (1)
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Compass Diversified Holdings Subsidiary Net Sales (unaudited) Three months ended September 30,Nine months ended September 30, (in thousands) 2026 2025 2026 2025 Branded Consumer 5.11 $ 133,866 $ 143,240 $ 384,337 $ 404,052 BOA 52,970 43,941 164,146 141,187 Lugano — 17,350 — 70,966 PrimaLoft 16,311 13,294 67,977 61,794 The Honey Pot 42,774 34,727 126,320 103,716 Velocity Outdoor 29,719 29,040 60,654 57,454 Total Branded Consumer $ 275,640 $ 281,592 $ 803,434 $ 839,169 Industrial Altor Solutions $ 64,627 79,824 $ 194,931 $ 239,386 Arnold Magnetics 47,654 37,686 131,059 110,126 Rimports 35,009 73,460 144,403 216,346 Total Industrial $ 147,290 $ 190,970 $ 470,393 $ 565,858 Total Subsidiary Net Sales $ 422,930 $ 472,562 $ 1,273,827 $ 1,405,027 During the second quarter of 2026, the Company completed the sale of Sterno’s food service business. Prior to the sale, Sterno distributed Rimports, its home fragrance business, to its stockholders, and Rimports remained a majority owned subsidiary of the LLC. Accordingly, the net sales presented above includes the results of Sterno’s food service business through the May 1, 2026 date of sale and the results of Rimports for all periods presented, including the three and nine months ended September 30, 2026 and 2025. (1) (1)
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Compass Diversified Holdings Net Sales to Non-GAAP Net Sales (excluding Lugano and the Divested Sterno Food Service Business) Reconciliation (unaudited) Three Months Ended September 30,Nine months ended September 30, (in thousands) 2026 2025 2026 2025 Net sales $ 422,930 $ 472,562 $ 1,273,827 $ 1,405,027 Less: net sales attributable to Lugano — (17,350) — (70,966) Net sales, excluding Lugano $ 422,930 $ 455,212 $ 1,273,827 $ 1,334,061 Less: net sales attributable to the divested Sterno FoodService Business — (35,665) (45,125) (107,212) Net sales, excluding Lugano and the divestedSterno Food Service Business $ 422,930 $ 419,547 $ 1,228,702 $ 1,226,849 Total Branded Consumer $ 275,640 $ 281,592 $ 803,434 $ 839,169 Less: net sales attributable to Lugano — (17,350) — (70,966) Total Branded Consumer, excluding Lugano $ 275,640 $ 264,242 $ 803,434 $ 768,203 Total Industrial $ 147,290 $ 190,970 $ 470,393 $ 565,858 Less: net sales attributable to the divested Sterno FoodService Business — (35,665) (45,125) (107,212) Total Industrial, excluding the divested SternoFood Service Business $ 147,290 $ 155,305 $ 425,268 $ 458,646 Net sales, excluding Lugano and the divestedSterno Food Service Business $ 422,930 $ 419,547 $ 1,228,702 $ 1,226,849 Net sales attributable to the divested Sterno Food Service Business represent the net sales of those operations through the May 1, 2026 date of sale and for all prior periods presented. (1) (1)
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Compass Diversified Holdings Condensed Consolidated Cash Flows (unaudited) Three months ended September 30, Nine months ended September 30, (in thousands) 2026 2025 2026 2025 Net cash provided by (used in) operating activities $ 51,551 $ 10,674 $ 105,168 $ (53,834) Net cash provided by (used in) investing activities 21,508 (10,897) 310,635 (33,084) Net cash provided by (used in) financing activities (32,731) (12,323) (355,195) 86,055 Foreign currency impact on cash (604) (72) (1,456) 2,343 Net increase (decrease) in cash and cash equivalents 39,724 (12,618) 59,152 1,480 Cash and cash equivalents - beginning of the period 87,443 73,757 68,015 59,659 Cash and cash equivalents - end of the period $ 127,167 $ 61,139 $ 127,167 $ 61,139 Compass Diversified Holding Selected Financial Data - Cash Flows (unaudited) Three months ended September 30, Nine months ended September 30, (in thousands) 2026 2025 2026 2025 Changes in operating assets and liabilities $ (7,642) $ 38,220 $ 33,229 $ (12,547) Purchases of property and equipment $ (6,628) $ (10,193) $ (17,971) $ (34,176) Distributions paid - common shares $ — $ — $ — $ (37,618) Distributions paid - preferred shares $ (9,714) $ (9,714) $ (29,143) $ (18,148)