CompoSecure Reports Strong Q3 2024 Earnings Growth

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

CompoSecure Inc., a leader in metal payment cards and security solutions, reported its third-quarter 2024 financial results, revealing solid growth in net sales and adjusted earnings. The company, which operates in the technology and security industry, focuses on delivering premium branded experiences through its innovative card technology.

The third quarter of 2024 saw CompoSecure’s net sales increase by 11% to $107.1 million, alongside an 18% rise in adjusted net income to $25.6 million. Despite a GAAP net loss of $85.5 million, attributed to improved stock prices affecting non-cash items, the company’s adjusted EBITDA grew by 13% to $40 million. The period was marked by strong international demand and a successful transaction with Resolute Holdings, as well as a two-year contract extension with Capital One.

CompoSecure’s financial highlights include gross profit margins improving to 52% of net sales and a shift in its balance sheet with cash reserves rising to $52.7 million. The company also celebrated the completion of the Resolute Holdings acquisition, which led to changes in its capital structure and board appointments. Furthermore, the firm secured new customer programs with major clients like US Bank and HSBC Global Singapore, and achieved ISO 27001 certification for its premium card manufacturing.

Looking ahead, CompoSecure has revised its 2024 outlook to reflect continued investment in growth opportunities. The company forecasts net sales to range between $418 and $424 million, with adjusted EBITDA expected between $148 and $151 million. CompoSecure remains focused on strategic investments, enhancing operational efficiency, and exploring accretive M&A activities to sustain its growth trajectory.