Quarterly ResultMay 6, 2026, 04:12 PM
Compass Diversified Sells Sterno Food Service; Q1 Net Loss Narrows
AI Summary
Compass Diversified announced its Q1 2026 operating results, reporting a GAAP net loss from continuing operations of $30.8 million, an improvement from $49.8 million in Q1 2025. The company completed the sale of Sterno's food service business for $292.5 million, using net proceeds of $280 million to repay debt and reduce senior secured indebtedness below 1.0x. Excluding the deconsolidated Lugano and the Sterno divestiture, non-GAAP net revenues were flat at $426.9 million, and Subsidiary Adjusted EBITDA increased by 6.3% to $83.9 million. The company also updated its fiscal 2026 guidance, reflecting the Sterno sale, with Subsidiary Adjusted EBITDA projected between $320.0 million and $365.0 million.
Key Highlights
- Completed sale of Sterno's food service business for $292.5 million.
- Used $280 million net proceeds from Sterno sale to repay debt.
- Q1 2026 GAAP net revenues were $426.9 million, down 5.9% YoY.
- Q1 2026 GAAP net loss from continuing operations was $30.8 million.
- Non-GAAP Subsidiary Adjusted EBITDA rose 6.3% to $83.9 million.
- Branded Consumer non-GAAP net revenues up 2.3% to $257.0 million.
- Updated 2026 Subsidiary Adjusted EBITDA guidance: $320.0M-$365.0M.
- Cash and cash equivalents were $65.2 million as of March 31, 2026.