Composecure Inc. ( (CMPO) ) has released its Q4 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, operates in the technology sector, providing innovative payment card technology and security authentication capabilities. The company recently reported its financial results for the fourth quarter and full year of 2024, highlighting an 8% increase in net sales to $420.6 million and a significant boost in free cash flow by 62% to $84.9 million. The company also completed a strategic spin-off of Resolute Holdings.
CompoSecure’s 2024 financial performance was marked by a robust increase in cash flow from operations by 24% to $129.6 million. Despite a challenging economic environment, the company achieved a 1% increase in net sales for the fourth quarter, amounting to $100.9 million. However, the company faced a net loss of $48.4 million for the quarter, attributed to changes in the fair value of warrant liabilities and other financial instruments.
The company made strategic investments in its CompoSecure Operating System (COS) to enhance operational excellence and support growth initiatives. Adjusted net income for the year increased by 11% to $98.2 million, while adjusted EBITDA rose by 4% to $151.4 million. The company also reduced its net debt by 60% to $120 million, showcasing strong financial management.
Looking ahead, CompoSecure anticipates mid-single-digit growth in net sales and adjusted EBITDA for 2025. The company plans to accelerate the adoption of its COS and expects continued positive contributions from its Arculus product line, positioning itself for sustained growth and diversification.