Compass Diversified Holdings (CODI)

The past six months have seen several significant events impacting CODI's stock price. The bankruptcy filing of Lugano Holding, Inc. in November 2025 triggered selling pressure. Accounting irregularities related to Lugano Holding, Inc. in May 2025 led to a downgrade by S&P Global Ratings and a restatement of financial statements for fiscal years 2024, 2023, and 2022. CODI received a non-compliance notice from the New York Stock Exchange in January 2026 for failing to hold an annual shareholder meeting. CODI's share price experienced a substantial decline of 73.72% between January 10, 2025, and January 9, 2026.

Demand seasonality for Compass Diversified Holdings' products and services varies across its diverse portfolio. The first quarter typically sees higher revenue for businesses like Marucci due to shipments ahead of the baseball season. Sterno's consumer business has experienced record seasonal demand, while its catering line saw decreased demand during periods when large gatherings were discouraged. Branded consumer businesses have benefited from increased consumer demand in outdoor categories, while niche industrial businesses have faced headwinds. In Q2 2024, consumer sales were up double digits, while industrial sales were down double digits, with lower and middle-income consumers particularly affected by inflationary pressures.

Compass Diversified Holdings (CODI) is a publicly traded holding company that acquires and manages controlling interests in small and middle-market businesses, utilizing a permanent capital structure for long-term value creation. CODI focuses on niche industrial or branded consumer companies, with key holdings including 5.11, Boa Holdings Inc., PrimaLoft, Altor Solutions, Arnold, SternoCandleLamp Holdings, Inc., and The Honey Pot Company. Lugano Holding, Inc. was formerly a significant investment but faced financial turbulence and bankruptcy in late 2025.

Compass Diversified Holdings is headquartered in Westport, Connecticut, USA, with additional offices in Costa Mesa and Irvine, California. The company's operations and acquired businesses have a geographic reach across the Americas, Europe, and Asia, with a primary investment focus on companies based in North America.

Compass Diversified Holdings' brand reputation has been significantly impacted in the past year by negative events. The discovery of accounting irregularities and subsequent internal investigation at Lugano Holding, Inc. led to a downgrade of CODI's credit rating and a required restatement of financial statements. Lugano's bankruptcy filing followed, and the company received a non-compliance notice from the NYSE for failing to hold its annual shareholder meeting. These events signal heightened governance and reporting risk and have negatively impacted the company's reputation.

Compass Diversified Holdings' ownership is a mix of institutional, individual, and insider investors. Institutional investors hold the majority stake, ranging from approximately 60.98% to 74.43%. Insiders hold a significant portion, estimated to be around 15.94% to 34.28%. The largest individual shareholder is Path Spirit Ltd., holding an estimated 10.21% ownership stake.