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Compass Diversified provides equity capital and loans to businesses it controls. Customers pay those businesses for their products; cash reaches the parent mainly through interest and principal payments on its loans to them, alongside dividends and other distributions. Its ability to meet its own obligations therefore depends on the businesses’ earnings and cash flow.
Branded consumer businesses supply most revenue, with 5.11 the largest contributor. 5.11 mainly sells apparel for work, training and adventure, reaching consumers through its stores and online channels and professional customers through distributors, uniform dealers and agency relationships. BOA earns by selling its dial-and-lace Fit System to factories assembling footwear and other products for partner brands. Its customers are spread across many factories, but it relies on one supplier for most purchases, including key plastic components.
Industrial businesses provide another substantial revenue stream. Altor Solutions makes protective foam packaging and temperature-controlled shipping solutions for manufacturers and other businesses. Sterno sells food-warming fuels and home-fragrance products through foodservice distributors and retailers; a small group of large customers supplies most of its sales.
Compass Diversified no longer operates the Lugano jewelry business following its bankruptcy, though it retains an equity interest. Cash payments from subsidiaries face legal and minority-owner restrictions, while parent debt covenants limit borrowing, investments, asset sales and distributions.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Compass Diversified’s varied businesses extend beyond apparel rivalry: watch Nike and The North Face, absent here, while BOA, Sterno and Altor add performance-footwear, foodservice and packaging exposure.
Under Armour competes with Compass Diversified’s 5.11 for performance-apparel, footwear and accessories sales through retailers and their own stores and websites; 5.11 supplied 29.5% of Compass’s consolidated net revenue in 2025. Under Armour’s apparel sales are the clearest line to watch for this overlap, while 5.11 also serves tactical professionals and enthusiasts.
DICK’S Sporting Goods competes with Compass Diversified’s 5.11 stores for shoppers buying performance apparel and gear, while sporting-goods demand and inventory cycles also affect Compass’s BOA and PrimaLoft businesses. Watch DICK’S apparel, footwear and equipment demand alongside retail inventory: improved inventories helped BOA’s 2024 sales, while normalized inventories and more retailer orders from brand partners helped PrimaLoft.
lululemon competes with Compass Diversified’s 5.11 for consumers buying premium technical apparel for training and active lifestyles. Its sales of athletic pants, tops and jackets offer a window into that spending, though 5.11 also sells clothing, footwear and gear for work and tactical use.
Prestige Consumer Healthcare Inc.’s feminine-care brands compete with Compass Diversified’s Honey Pot products for purchases through mass retailers, drugstores and online.
Procter & Gamble’s Always and Tampax compete with Compass Diversified’s Honey Pot pads and tampons for consumers’ menstrual-care purchases.
Procter & Gamble Company earningsPG
Procter & Gamble's report offers a read on demand in the feminine-care aisle where its Always and Tampax brands compete with CODI's Honey Pot.
Read P&G's Baby, Feminine & Family Care sales alongside its reported volume and price effects. Sales growth led by volume points to resilient demand across the broader category; if sales rise only because of price while volume falls, shoppers are buying fewer units, a tougher backdrop for Honey Pot. The segment includes other products, so it does not establish Honey Pot's sales or share.
Fed Interest Rate Decision
Compass Diversified’s Fed-rate exposure runs through its $553 million SOFR-linked term loan: higher borrowing rates mean more interest paid and less cash available for its obligations and distributions.
Expected4.0%Last release4.0%
If it comes in above expectations
If the Fed rate is above expectations, the SOFR-linked loan may become more expensive as rates rise, leaving less cash for Compass Diversified to meet company-level obligations and make shareholder distributions.
If it comes in below expectations
If the Fed rate is below expectations, falling rates may lower the cost of the SOFR-linked loan, leaving Compass Diversified more cash to meet company-level obligations and make shareholder distributions.
Compass Diversified earningsThis company
Compass Diversified's report shows whether earnings from its businesses are turning into cash the parent can use to meet debt and other obligations.
Read operating income across the businesses alongside operating cash flow, then check the parent's liquidity and debt covenants—the financial tests set by lenders. Steady earnings across businesses, cash generation and room to meet those tests show the portfolio is supporting the parent; weaker earnings or continued cash use, especially with tighter liquidity or less room under the covenants, show that support is weakening.
Under Armour, Inc. earningsUA
Under Armour's report gives Compass Diversified a read on performance-apparel demand that overlaps with 5.11, its largest business.
Read Under Armour's apparel sales alongside footwear sales: apparel growth points to resilient demand in the area that overlaps with 5.11's clothing, while falling apparel sales with steadier footwear would point to pressure in clothing. Under Armour reflects a consumer-brand market; it does not establish demand among 5.11's tactical professionals and enthusiasts or show 5.11's own sales or share.
Dick's Sporting Goods, Inc. earningsDKS
DICK'S Sporting Goods' report signals whether sporting-goods demand and inventory cycles support 5.11's retail market and the brand partners that buy from BOA and PrimaLoft.
Read DICK'S comparable sales alongside its inventory. Steady sales without excess stock suggest retailers are moving goods and the conditions for replenishment are healthier, a useful demand signal for 5.11 and for BOA and PrimaLoft's brand partners; weak sales with rising inventory raise the risk of slower future orders. This does not show that DICK'S buys directly from those CODI businesses or that their orders have changed.
