Westport-based Compass Diversified Holdings reported second-quarter 2025 earnings Monday — more than five months late — as it seeks to regain New York Stock Exchange compliance amid an investigation into a financially troubled subsidiary.
The delayed filings have put Compass, a holding company for middle market businesses, at risk of being delisted from the NYSE.
Compass said it plans to file its third-quarter results “in coming weeks.” The NYSE has extended the company’s deadline to regain compliance to Jan. 20, 2026.
Compass’ diamond jewelry subsidiary, Lugano Holding Inc., filed for Chapter 11 bankruptcy in November after an internal investigation found “unrecorded financing arrangements and irregularities in sales, cost of sales, inventory, and accounts receivable,” according to an SEC filing.
Compass disclosed in its quarterly report that it faces “substantial doubt” about its ability to continue as a going concern. It also disclosed that management has identified material weaknesses in its internal controls over financial reporting that have not been fully remediated.
“We continue to make meaningful progress toward bringing our financial reporting up to date,” CEO Elias Sabo said in a statement.
Compass Diversified Holdings is a publicly traded holding company that owns controlling stakes in a portfolio of middle-market branded consumer and industrial businesses — including companies such as 5.11, BOA Technology, PrimaLoft, The Honey Pot Co. and Sterno — and generates revenue from the operating income and cash flow of those subsidiaries.
Compass posted a net loss of $51.2 million attributable to holdings for the second quarter, compared to a net loss of $103 million for the same period last year. It reported $46.5 million in adjusted EBITDA for the three-month period, down from $47.9 million a year ago. Revenue came in at $479 million, up from $427 million a year earlier.
For the first half of the year, Compass reported a net loss of $81.2 million versus a $129 million net loss for the same period in 2024. It posted $92.1 million in adjusted EBITDA for the three-month period, up from $88.4 million a year ago. Revenue came in at $933 million, up from $838 million a year earlier.
The company said in the regulatory filing that it could not “timely file” its second-quarter and half-year results as a result of the Lugano investigation, which began in April 2025.
In May, Compass disclosed its probe into the Newport Beach, California-based jewelry retailer, which has eight U.S. stores, according to its website.
