CompoSecure Reports Strong Q3 Results and Merges with Husky

Composecure Inc. ( (CMPO) ) has released its Q3 earnings. Here is a breakdown of the information Composecure Inc. presented to its investors.

CompoSecure, Inc., a prominent player in the metal payment cards and security solutions industry, has reported robust financial results for the third quarter of 2025 and announced a significant business combination with Husky Technologies. The company, known for its innovative payment card technology and security solutions, is set to merge with Husky Technologies, a leader in engineered equipment manufacturing, creating a diversified entity valued at approximately $7.4 billion.

In the third quarter of 2025, CompoSecure achieved double-digit growth in both net sales and gross profit, driven by strong customer demand and new client acquisitions. The company’s non-GAAP net sales rose by 13% to $120.9 million, while the gross profit increased to $71.3 million, reflecting a gross margin of 59.0%. Despite a GAAP net loss due to non-cash revaluation items, the company reported a non-GAAP adjusted net income of $34.0 million, highlighting its operational efficiency and market traction.

The strategic merger with Husky Technologies is expected to enhance CompoSecure’s market position and growth potential. The transaction, valued at $5 billion, will be funded through a combination of private placement and equity rollover, with the combined entity anticipated to deliver significant accretive value to shareholders. Husky will continue to operate as a standalone business under its current management, leveraging its strong position in the engineered equipment sector.

Looking ahead, CompoSecure has raised its 2025 guidance and introduced a positive outlook for 2026, projecting continued growth in net sales and adjusted EBITDA. The company remains confident in its growth strategy and operational execution, aiming to capitalize on the synergies from the Husky merger and further expand its market presence.

Overall, CompoSecure’s strong financial performance and strategic initiatives underscore its commitment to delivering value to investors and enhancing its competitive edge in the payment card and security solutions market.