GPGI, Inc. (formerly CompoSecure, Inc.) reported significant financial changes in its recent 10-K filing for the fiscal year ending December 31, 2025. The company experienced a substantial decline in net sales, which fell by 86% to $59.8 million from $420.6 million in the previous year. This decrease was primarily attributed to the deconsolidation of its subsidiary, Holdings, following a management agreement and spin-off completed on February 28, 2025. The deconsolidation resulted in Holdings' sales being reflected as earnings from equity method investment rather than direct revenue.
The company's gross profit also saw a significant drop, decreasing by 87% to $28.7 million, with a gross margin of 48%, down from 52% in 2024. Operating expenses were reduced by 62% to $42.5 million, reflecting the impact of the deconsolidation. However, GPGI reported a loss from operations of $13.7 million, compared to an income of $107.6 million in the prior year. Other expenses increased by 12% to $212.1 million, largely due to changes in the fair value of earnout and warrant liabilities.
Strategically, GPGI has transitioned into a diversified permanent capital platform, now comprising two main businesses: CompoSecure, a leader in premium metal credit cards, and Husky Holdings, a manufacturer of injection molding equipment. The Husky transaction, valued at approximately $4.976 billion, was completed on January 12, 2026, and is expected to enhance GPGI's operational scale and market presence. The company anticipates that the integration of Husky will provide opportunities for growth and operational efficiencies across multiple industries.
As of December 31, 2025, GPGI reported cash and cash equivalents of $114.6 million, with total debt principal outstanding at $186.3 million. The company has outlined plans to focus on deleveraging and pursuing accretive acquisitions. Looking ahead, GPGI's management believes that the enhanced scale from the Husky acquisition will significantly influence its liquidity profile and capital allocation strategies, although the company acknowledges the challenges posed by increased leverage and the need for successful integration of Husky's operations.
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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