CompoSecure, Inc. reported significant changes in its financial performance for the second quarter of 2025, primarily due to the deconsolidation of its subsidiary, CompoSecure Holdings, L.L.C., following the spin-off of Resolute Holdings. The company recorded no net sales for the three months ended June 30, 2025, a decrease of 100% compared to $108.6 million in the same period last year. For the six months ended June 30, 2025, net sales were $59.8 million, down 72% from $212.6 million in the prior year. The company attributed these declines to the shift to equity method accounting, which resulted in the exclusion of Holdings' revenues from its consolidated financial statements.
Operating expenses for the second quarter decreased by 89% to $2.7 million, down from $24.3 million in the prior year, reflecting the reduced operational scope following the spin-off. The company reported a loss from operations of $2.7 million for the quarter, compared to an income of $31.8 million in the same quarter of 2024. Other expenses also increased significantly, totaling $64.1 million, primarily due to changes in the fair value of warrant and earnout liabilities. The net loss attributable to CompoSecure, Inc. was $26.1 million, compared to a profit of $11.1 million in the previous year.
In terms of strategic developments, the spin-off of Resolute Holdings on February 28, 2025, marked a pivotal change in CompoSecure's structure. Following the spin-off, the company entered into a management agreement with Resolute Holdings, which now provides management services to CompoSecure. This agreement allows Resolute Holdings to influence key operational decisions, including business objectives and capital allocation strategies. As of June 30, 2025, CompoSecure had approximately 102.4 million shares of Class A common stock outstanding.
Operationally, the company reported a significant reduction in its cash and cash equivalents, which fell to $4.8 million from $77.5 million at the end of 2024. The total liabilities also decreased to $423.7 million from $617.4 million, largely due to the deconsolidation of Holdings. The company’s equity method investment in Holdings was valued at $44.7 million as of June 30, 2025, reflecting its share of Holdings' earnings. CompoSecure's outlook remains cautious, as it navigates the complexities of its new operational structure and the broader economic environment, which includes uncertainties in the digital asset marketplace and potential impacts from geopolitical events.
Looking ahead, CompoSecure anticipates that its liquidity needs will be met through cash flows from Holdings and available credit facilities. The company has expressed confidence in its ability to manage its financial obligations, although it acknowledges the challenges posed by market conditions and the evolving regulatory landscape surrounding digital assets. The management team remains focused on leveraging its equity method investment in Holdings to drive future growth and operational efficiency.
About CompoSecure, Inc.
CompoSecure specializes in designing and manufacturing premium metal payment cards and secure authentication solutions. Its core offerings include innovative metal credit, debit, and co-branded cards, featuring advanced security features like NFC, biometric sensors, and dynamic CVV. The company serves global financial institutions, fintechs, and consumers, providing differentiated, durable products that enhance brand prestige and security in the evolving payments and digital asset markets.
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