Compass Diversified Enters Fourth Forbearance Agreement

The latest announcement is out from Compass Diversified Holdings ( (CODI) ).

Compass Diversified Holdings, a company involved in diverse business operations, has faced significant financial and operational challenges due to irregularities at its subsidiary, Lugano Holding, Inc. These issues have led to delays in financial reporting and potential defaults under its credit agreements. To address these challenges, Compass Diversified Holdings has entered into multiple forbearance agreements with its lenders, most recently the Fourth Forbearance Agreement on November 7, 2025, which provides temporary relief from exercising rights related to defaults. This agreement allows the company to continue discussions for waivers and relief while working on restating its financial statements. However, failure to resolve these issues could have a material adverse effect on the company’s business and financial condition.

The most recent analyst rating on (CODI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

Spark’s Take on CODI Stock

According to Spark, TipRanks’ AI Analyst, CODI is a Neutral.

The overall stock score of 53 reflects significant challenges in financial performance, particularly in cash flow and leverage, combined with bearish technical indicators. The high dividend yield offers some appeal, but the negative P/E ratio and weak market momentum are concerning. The company’s financial stability is moderate, but improvements in cash flow and leverage are needed to enhance investor confidence.

To see Spark’s full report on CODI stock, click here.

More about Compass Diversified Holdings

Average Trading Volume: 1,388,744

Technical Sentiment Signal: Sell

Current Market Cap: $447.7M

See more data about CODI stock on TipRanks’ Stock Analysis page.