Compass Diversified Holdings — Cyborg Score 3/10

Challenged
Diversified Holding Companies / Private Equity

Strategic Profile

The company is focused on driving profitable growth while continuing to deleverage, with goals to generate top and bottom-line growth for remaining subsidiaries through its differentiated business model, strong operating subsidiaries, and permanent capital base. CODI seeks to invest between $80 million to $800 million with EBITDA starting from $10 million per annum and maintains controlling ownership interests in portfolio companies.

Cyborg Score Rationale

The company reported a trailing twelve months net income of -$208.9M, diluted EPS of -$3.83, and operating cash flow of -$151.1M. CODI received NYSE non-compliance notices regarding failure to hold annual meetings during 2025 while completing financial restatement, and deconsolidated Lugano Holding on November 16, 2025, creating material headwinds.

Top Insights

  • 2025 was challenging due to Lugano investigation and restatement, though operating companies excluding Lugano delivered solid performance
  • Market cap of approximately $480.8M as of February 17, 2026
  • Altor Solutions completed a sale-leaseback generating $11M in cash proceeds on January 28, 2026 to reduce debt
  • Annual meeting scheduled for May 21, 2026 to regain NYSE compliance

Named Competitors

  • Middle-Market PE Platforms — Diversified multi-platform middle-market acquirers
  • Business Development Companies — Publicly-traded middlemarket investment vehicles
  • Strategic Buyers — Direct competitors for acquisition targets

Recent Developments

  • (February 26, 2026) Reported full year 2025 financial results showing impact of Lugano deconsolidation
  • (January 28, 2026) Altor Solutions completed sale-leaseback for $11M in debt reduction proceeds
  • (November 16, 2025) Deconsolidated Lugano Holding following Chapter 11 filing
  • (January 2026) NYSE non-compliance resolved with May 21, 2026 annual meeting scheduled

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