Compass Diversified Holdings
CODI on NYSE. Household furniture. Market value $832m.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
Recent profit includes a one-time gain, so we price the company excluding that gain.
Should I look at this?
Look carefully before going further
Why it could be worth it
Read the warning sign in its own filings
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $9.60 of spare cash in the past 12 months. A savings account pays about $4.
The filings do not give us enough to work this out.
Each dollar kept in the business earns 0 cents a year. Above 10 is good.
Quality score: 20 of 100. Price score: 33 of 100. Our list needs 70 on quality and 60 on price.
$11.02 a share, 141% above its 1-year low
Over the past year the price has ranged from $4.58 to $13.25.
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: $80 million in the past 12 months, a shortfall of $51 million in the year to December 2025.
| Revenue | |||||
| Revenue | $1.7bn | $1.8bn | $1.7bn | $1.8bn | $1.9bn |
| Operating margin | |||||
| Operating margin | 7.1% | 2.5% | -4.1% | -0.8% | 0.6% |
| Debt to equity | |||||
| Debt to equity | 1.16 | 2.09 | 1.80 | 2.62 | 4.26 |
| Shares outstanding | |||||
| Shares outstanding | 0.07bn | 0.07bn | 0.08bn | 0.08bn | 0.08bn |
Health checks
- Free cash flow positive1 of 5 years
- Accounting looks honest (Beneish)Nothing unusual
- Financial strength (Piotroski)5 of 9
- Profit backed by cash (accruals)Yes
- Debt4.26× equity
- Revenue growth, five yearsSlow, 3.7% a year
- Buying back its own sharesRoughly flat
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $424 million last quarter, down 11% on a year ago.
- Profit: $81 million, after a loss of $51 million a year ago.
- It keeps 4 cents of each $1 of sales as operating profit, after losing 2 cents a year earlier.
- Spare cash over the past 12 months: $80 million. A year earlier it spent $191 million more than it brought in.
- About the same number of shares as a year ago.
- Debt is $1.5 billion more than cash, down from $1.8 billion a year ago.
- Sales grew on a year ago in 1 of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $457m |
| December 2024 | $494m |
| March 2025 | $454m |
| June 2025 | $479m |
| September 2025 | $473m |
| December 2025 | $469m |
| March 2026 | $427m |
| June 2026 | $424m |
| Quarter to | Amount |
|---|---|
| September 2024 | -$36m |
| December 2024 | -$44m |
| March 2025 | -$30m |
| June 2025 | -$51m |
| September 2025 | -$74m |
| December 2025 | -$71m |
| March 2026 | -$31m |
| June 2026 | $81m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 27 February 2026
- Next quarterly (estimated, 10-Q)
- 9 November 2026
Who owns it
3 long-term investors we follow own it, up from 2 last quarter. 181 funds in all.
- First Manhattan Co.First Manhattan partners
- Value
- $1m
- Share of fund
- <0.1%
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Greenhaven Road CapitalScott Miller | $7m | 4.6% | New |
| First Manhattan Co.First Manhattan partners | $1m | <0.1% | |
| Boston PartnersBoston Partners team | $296,130 | <0.1% | Cut |
Largest holders overall
- Allspring Global Investments Holdings$44mCut
- American Century Companies$43mCut
- BlackRock$42mAdded
- ADW Capital Management$40m
- Mangrove Partners IM$39m
- D. E. Shaw$31mCut
- Western Standard$28mCut
- SG Capital Management$26mCut
- Vanguard Capital Management$24m
- Morgan Stanley$18mCut
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
6 investors own more than 5%; 1 of them is pushing for change.
- ADW Capital Management, LLCActivistat least 19.3%0.0 pts(filed with 2 related holders)Since 16 July 2026
What they said
Item 4 is hereby amended and supplemented as follows: "On July 16, 2026, ADW Capital Partners, L.P. delivered an open letter to the Issuer's board of directors (the "July Letter"). In the July Letter, ADW Capital Partners, L.P. called for the Issuer to immediately commence a…
Read the filing - G1 Execution Services, LLCPassive investorat least 7.5%(filed with 2 related holders)Since 30 June 2026
- American Century Investment Management, Inc.Passive investorat least 5.4%−1.2 pts(filed with 2 related holders)Since 30 June 2026
- BlackRock, Inc.Passive investor5.3%+0.4 ptsSince 30 June 2026
- Allspring Global Investments Holdings, LLCPassive investor5.1%−1.3 ptsSince 30 June 2026
- Divisadero Street Capital Management, LPPassive investorat least 1.1%−4.3 pts(filed with 4 related holders)Since 30 June 2026
- American Century Capital Portfolios, Inc.Passive investorSold down below 5%Since 30 September 2025
- The Vanguard GroupPassive investorSold down below 5%Since 30 September 2025
| Holder | Stake | Since | |
|---|---|---|---|
ADW Capital Management, LLC Activist | at least 19.3%0.0 pts (filed with 2 related holders) | 16 July 2026 | What they saidItem 4 is hereby amended and supplemented as follows: "On July 16, 2026, ADW Capital Partners, L.P. delivered an open letter to the Issuer's board of directors (the "July Letter"). In the July Letter, ADW Capital Partners, L.P. called for the Issuer to immediately commence a… Read the filing |
G1 Execution Services, LLC Passive investor | at least 7.5% (filed with 2 related holders) | 30 June 2026 | |
American Century Investment Management, Inc. Passive investor | at least 5.4%−1.2 pts (filed with 2 related holders) | 30 June 2026 | |
BlackRock, Inc. Passive investor | 5.3%+0.4 pts | 30 June 2026 | |
Allspring Global Investments Holdings, LLC Passive investor | 5.1%−1.3 pts | 30 June 2026 | |
Divisadero Street Capital Management, LP Passive investor | at least 1.1%−4.3 pts (filed with 4 related holders) | 30 June 2026 | |
American Century Capital Portfolios, Inc. Passive investor | Sold down below 5% | 30 September 2025 | |
The Vanguard Group Passive investor | Sold down below 5% | 30 September 2025 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought or sold on the open market in the last 12 months.
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
2 serious warning signs in Compass Diversified Holdings’ filings.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 27 Feb 2026, plus the 10-Q filed 10 Aug 2026 and 13 later 8-Ks.
Weak checks on its own accounts
SeriousThe company said its checks on its own accounts did not work at the end of its latest quarter. Mistakes could slip into the numbers.
“Because these material weaknesses described in the 2025 Form 10-K had not been fully remediated as of June 30, 2026, management concluded that the Company’s disclosure controls and procedures were not effective as of that date.”
Show the full paragraph
Management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Form 10-Q. As previously disclosed in the 2025 Form 10-K, management identified material weaknesses in internal control over financial reporting. Because these material weaknesses described in the 2025 Form 10-K had not been fully remediated as of June 30, 2026, management concluded that the Company’s disclosure controls and procedures were not effective as of that date.
From the 10-Q filed 10 August 2026, Part I, Item 4. Controls and Procedures. Read it in the filing
Its past accounts can't be relied on
SeriousIt told the SEC its earlier accounts should no longer be relied on, usually because they contained errors.
8-K Item 4.02 filed 25 Jun 2025: the company said its earlier financial statements should no longer be relied on.
From an 8-K filed 25 June 2025: Previously issued accounts should no longer be relied on. Open the filing
Changed auditor
Worth knowingThe company changed its auditor (the firm that checks its books) in the last two years.
“On July 16, 2026, the Audit Committee approved the dismissal of Grant Thornton LLP (“Grant Thornton”) as CODI’s independent registered public accounting firm, and CODI notified Grant Thornton of its dismissal on that date, effective immediately.”
From an 8-K filed 16 July 2026: Change of auditor. Read it in the filing
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
- It carries a lot of debt: 4.3× its equity.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.