Compass Diversified Q1 Net Loss $30.8M; Sells Sterno Food Service for $292.5M
Compass Diversified reported a Q1 2026 net loss from continuing operations of $30.8 million, an improvement from $49.8 million in Q1 2025. GAAP net revenues were $426.9 million, down 5.9% year-over-year. Excluding the deconsolidated Lugano, non-GAAP net revenues were flat at $426.9 million, with Branded Consumer up 2.3% and Industrial down 3.3%. Subsidiary Adjusted EBITDA increased 6.3% to $83.9 million (excluding Lugano). The company also completed the sale of Sterno's food service business for an enterprise value of $292.5 million, using net proceeds to repay debt and reduce senior secured indebtedness below 1.0x. Compass Diversified updated its fiscal 2026 guidance, which is at or above initial expectations, adjusted for the divestment.
Key Highlights
- Q1 2026 GAAP Net revenues were $426.9 million, down 5.9% from Q1 2025.
- Q1 2026 GAAP Net loss from continuing operations was $30.8 million, compared to $49.8 million in Q1 2025.
- Completed sale of Sterno's food service business for an enterprise value of $292.5 million.
- Net proceeds from Sterno sale were approximately $280 million, used to repay outstanding debt.
- Q1 2026 non-GAAP Net revenues (excluding Lugano) were $426.9 million, flat to Q1 2025.
- Q1 2026 non-GAAP Subsidiary Adjusted EBITDA (excluding Lugano) was $83.9 million, up 6.3% YoY.
- Branded Consumer non-GAAP Net revenues were $257.0 million, up 2.3% YoY.
- Updated 2026 Subsidiary Adjusted EBITDA outlook is $320.0 million to $365.0 million.
- Cash and cash equivalents were $65.2 million with $100 million revolver availability as of March 31, 2026.
Price Impact
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