Free cash flow has deteriorated from a $32.1 million contribution in 2024Q1 to a negative $11.9 million in 2025Q3, highlighting significant volatility in operational cash generation.
| Cash from Operations | 26.52M | 129.55M | 104.31M | 92.78M | 77.78M | 87.06M | 81.19M |
| Operating CF Margin % | - | 30.8% | 26.7% | 24.51% | 29.03% | 33.41% | 33.37% |
| Operating CF Growth % | -299.42% | 24.2% | 12.43% | 19.29% | -10.66% | 7.24% | - |
| Net Income | -216.66M | -83.16M | 112.52M | 18.66M | 83.41M | 77.82M | 81.47M |
| Depreciation & Amortization | 3.87M | 9.17M | 8.39M | 8.57M | 10.43M | 9.92M | 8.61M |
| Stock-Based Compensation | 10.19M | 21.23M | 17.56M | 0 | 6.11M | 1.85M | 1.68M |
| Deferred Taxes | 507K | -2.47M | 2.67M | 3.19M | -857K | 1.16M | -473K |
| Other Non-Cash Items | 199.39M | 172.83M | -21.78M | 86.1M | -10.81M | 842K | 669K |
| Working Capital Changes | 40.26M | 11.95M | -15.04M | -23.75M | -10.51M | -4.52M | -10.77M |
| Change in Receivables | -1.59M | -6.96M | -3.22M | -9.35M | -19.13M | 10.25M | 5.83M |
| Change in Inventory | 5.36M | 8M | -8.98M | -18.24M | 3.79M | -12.87M | -5.68M |
| Change in Payables | 1.82M | 6.35M | -1.93M | 68K | 4.64M | -456K | -29K |
| Cash from Investing | -4.43M | -9.95M | -10.94M | -9.05M | -4.75M | -7.5M | -9.64M |
| Capital Expenditures | -2.63M | -7.41M | -10.94M | -9.05M | -4.75M | -7.5M | -9.64M |
| CapEx % of Revenue | 1.64% | 1.76% | 2.8% | 2.39% | 1.77% | 2.88% | 3.96% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -1.81M | -1.03M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 113.29M | -83.36M | -65.79M | -92.03M | -64.51M | -92.87M | -57.84M |
| Debt Issued (Net) | -2.48M | -12.81M | -22.81M | -31.8M | 132.4M | 127M | 47M |
| Equity Issued (Net) | -1000K | 1000K | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | -8.92M | 0 | 0 | -240.63M | -216.67M | -103.81M |
| Share Repurchases | -14.97M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 130.74M | -66.63M | -42.98M | -60.24M | 43.72M | -3.2M | -1.03M |
| Net Change in Cash | 74.69M | 36.24M | 27.57M | -8.3M | 8.52M | -13.31M | 13.7M |
| Free Cash Flow | 23.2M | 122.14M | 93.37M | 83.73M | 73.03M | 79.56M | 71.54M |
| FCF Margin % | 14.44% | 29.04% | 23.9% | 22.12% | 27.26% | 30.53% | 29.41% |
| FCF Growth % | -79.06% | 30.82% | 11.51% | 14.65% | -8.2% | 11.21% | - |
| FCF per Share | 0.21 | 2.78 | 2.64 | 2.57 | 4.89 | 5.33 | 4.79 |
| FCF Conversion (FCF/Net Income) | -0.11x | -2.41x | 5.42x | 4.97x | 24.66x | 1.12x | 1.00x |
| Interest Paid | 5.79M | 20.61M | 27.25M | 0 | 10.1M | 0 | 0 |
| Taxes Paid | 5.28M | 4.82M | 2.76M | 0 | 0 | 0 | 0 |
Operational cash flow volatility
As reported in recent financial statements, CompoSecure's operating cash flow has frequently diverged from net income, with the 2025Q3 period showing a negative $11.9 million operating cash flow despite a massive $174.7 million net loss, highlighting significant accounting noise that obscures the underlying manufacturing cash generation.
The persistent gap between net income and operating cash flow suggests that non-cash charges, likely related to warrant liabilities or tax receivable agreements, are distorting the company's true economic performance. Investors should monitor whether the core manufacturing business can sustain positive cash flow without the benefit of favorable working capital swings.
Based on historical data, the company's free cash flow has shifted from a consistent positive contributor in 2024 to a negative $11.9 million in 2025Q3, indicating that the previous model of self-funding operations through card shipments is currently under significant pressure from broader structural headwinds.
The rapid erosion of free cash flow margins suggests that the company's cost structure may be too rigid to accommodate the recent contraction in revenue. This trend warrants further investigation into whether the current cash burn is a temporary byproduct of strategic investments or a sign of permanent margin compression.
According to quarterly filings, working capital changes have been highly erratic, swinging from a $22.7 million source of cash in 2025Q3 to a $524,000 use in 2024Q2, suggesting that the company's cash position is heavily dependent on the timing of large, lumpy shipments to Tier 1 issuers.
This reliance on working capital fluctuations to bridge cash flow gaps implies that the company lacks a stable, predictable cash conversion cycle. Such volatility makes it difficult to assess the underlying health of the business, as cash inflows appear tied more to inventory management than to consistent demand.
As indicated by recent SEC filings, CompoSecure utilized $15 million for share repurchases in 2025Q3 despite reporting a net loss and negative operating cash flow, which suggests a potentially aggressive capital allocation strategy that may prioritize shareholder optics over the preservation of liquidity during periods of operational stress.
The decision to return capital to shareholders while the core business is burning cash warrants further investigation into management's long-term liquidity planning. This approach appears to contradict the need for a conservative balance sheet given the current volatility in the company's primary revenue streams.
Quick answers to the most common questions about buying CMPO stock.
CompoSecure, Inc. (CMPO) generated $129.6M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
CompoSecure, Inc. (CMPO) generated $122.1M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CompoSecure, Inc. (CMPO) spent $7.4M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, CompoSecure, Inc. (CMPO) returned $8.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.