Cash flow generation remains highly volatile and insufficient, as demonstrated by a 2026Q1 operating cash flow to net income ratio of -0.78, which complicates the sustainability of the 4.8% dividend yield.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | 46.43M | -6.83M | -67.64M | 78.08M | -46.65M | 134.05M | 148.63M | 84.56M | 114.45M | 81.77M | 111.37M | 84.55M | 70.69M | 72.37M | 52.57M | 91.37M | 44.84M | 20.21M | 40.55M | 41.77M | 20.56M | 0 |
| Operating CF Margin % | - | -0.36% | -3.78% | 4.62% | -2.66% | 7.78% | 10.27% | 6.69% | 8.43% | 8.15% | 11.38% | 11.61% | 11.1% | 9.77% | 5.94% | 15.06% | 8.89% | 1.62% | 2.64% | 4.96% | 5.2% | - |
| Operating CF Growth % | 689.31% | 89.9% | -186.62% | 267.39% | -134.8% | -9.81% | 75.76% | -26.12% | 39.97% | -26.58% | 31.73% | 19.6% | -2.32% | 37.68% | -42.47% | 103.77% | 121.84% | -50.15% | -2.93% | 103.14% | - | - |
| Net Income | -227.18M | 0 | 42.3M | -38.74M | -143.43M | 114.55M | 27.1M | -40.77M | -18.88M | 33.27M | 56.53M | 165.77M | 291.15M | 78.82M | 4.34M | 72.81M | -44.77M | -39.65M | 78.29M | 40.37M | -19.25M | -1K |
| Depreciation & Amortization | 103.06M | 0 | 143.65M | 142.37M | 112.13M | 109.13M | 102.75M | 87.31M | 90.7M | 110.05M | 87.41M | 63.07M | 55.7M | 46.23M | 49.45M | 49.11M | 42.12M | 33M | 36.99M | 25.33M | 10.29M | 0 |
| Stock-Based Compensation | 10.82M | 0 | 16.34M | 10.66M | 10.52M | 9.84M | 8.97M | 5.78M | 6.71M | 7.03M | 4.38M | 3.17M | 4.74M | 4.68M | 4.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.85M | 0 | -17.88M | -21.71M | 3.02M | -11.77M | -781K | -546K | -2.25M | -59.43M | -9.67M | -3.13M | -8.6M | -5.26M | -2.06M | -17.86M | -7.15M | -24.96M | -8.91M | -1.29M | -2.28M | 0 |
| Other Non-Cash Items | 234.03M | 47.27M | 40.83M | -19.49M | 62.31M | -6.71M | 7.24M | 47.97M | 45.89M | 31.24M | -45.76M | -136.02M | -262.58M | -33.49M | 22.05M | 18.3M | 32.96M | 2.43M | -59.73M | -15.33M | 2.76M | 0 |
| Working Capital Changes | -33.81M | -54.1M | -292.88M | 4.98M | -91.19M | -80.99M | 3.35M | -15.18M | -7.72M | -40.39M | 18.48M | -8.31M | -9.71M | -18.61M | -26.97M | 25M | -26.58M | -13.73M | -6.09M | -7.3M | -5.31M | 1K |
| Change in Receivables | -14.72M | -3.86M | -117.74M | 8.92M | 16.25M | -30.54M | -28.8M | 10.8M | 4.48M | -17.58M | -15.6M | 11.81M | -20.85M | -10.99M | -2.14M | -7.52M | -22.5M | 143K | 29.97M | -13.23M | -7.87M | 0 |
| Change in Inventory | 37.62M | 2.58M | -229.37M | 37.09M | -126.09M | -106.4M | -28.02M | -10.45M | -18.42M | -28.25M | 2.89M | -3.3M | 19.59M | -24.45M | -13.7M | 5.06M | -13.03M | -557K | 102K | -5.77M | -6.31M | 0 |
| Change in Payables | -43.51M | 629K | 51.09M | -39.09M | 0 | 63.43M | 62.51M | -8.53M | 23.92M | 8.75M | 25.15M | -6.43M | -2.25M | 17.25M | 4.34M | 26.49M | 12.76M | -8.88M | -17.34M | 16.74M | 8.55M | 0 |
| Cash from Investing | -23.46M | -48.03M | -422.45M | 570.5M | -626.72M | -317.5M | -700.83M | 743.13M | -604.08M | -77.28M | -363.02M | 233.88M | -424.75M | 66.29M | -84.43M | -86.62M | -182.39M | -4.98M | -22.54M | -114.16M | -362.29M | 0 |
| Capital Expenditures | -26.18M | 0 | -56.7M | -55.78M | -64.27M | -39.88M | -30.76M | -34.9M | -41M | -44.77M | -23.97M | -16.59M | -15.26M | -20.41M | -18.55M | -21.87M | -8.67M | -3.58M | -11.58M | -8.7M | -5.82M | 0 |
| CapEx % of Revenue | 1.42% | 2.37% | 3.17% | 3.3% | 3.66% | 2.31% | 2.13% | 2.76% | 3.02% | 4.46% | 2.45% | 2.28% | 2.4% | 2.76% | 2.1% | 3.6% | 1.72% | 0.29% | 0.75% | 1.03% | 1.47% | - |
| Acquisitions | 157K | 0 | -443.14M | 496.4M | -561.15M | -303.28M | -667M | 502.7M | -495.04M | -28.46M | -343.93M | 255.22M | -407.13M | 79.8M | -66.77M | -60.73M | -173.73M | -1.44M | -167.55M | -105.46M | -356.46M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.56M | -48.03M | 77.39M | 129.88M | -1.3M | 25.66M | -3.07M | 1.72M | -134K | -84K | -10K | -104K | -355K | 6.9M | 891K | -4.02M | 8K | 38K | 156.58M | 119.65M | 0 | 0 |
| Cash from Financing | -105.96M | 60.5M | 100.61M | -260.16M | 575.24M | 273.21M | 521.73M | -779.52M | 500.11M | -2.59M | 208.73M | -254.36M | 265.49M | -44.12M | -82.23M | 114.08M | 119.59M | -81.21M | -39.81M | 184.88M | 351.07M | 100K |
| Debt Issued (Net) | -41.76M | 76.92M | 100M | -165M | 568.35M | 365.31M | 509M | -724.25M | 521.03M | 31.91M | 248.06M | -173.41M | 243.35M | 11.22M | 50.99M | 129M | 19.5M | -76.5M | 1.92M | 59.4M | 85M | 0 |
| Equity Issued (Net) | 59.78M | 58.94M | 113.05M | 64.92M | 83.85M | 114.63M | 83.88M | 111M | 96.5M | 96.42M | 99.36M | 0 | 99.87M | 0 | -48.02M | 64.6M | 152.97M | 42.09M | 0 | 168.74M | 273.41M | 100K |
| Dividends Paid | -57.67M | -75.19M | -149.89M | -96.15M | -95.03M | -175.13M | -113.53M | -101.38M | -98.44M | -88.71M | -78.19M | -78.19M | -69.55M | -69.55M | -69.55M | -66.92M | -55.16M | -46.34M | -41.45M | -45.96M | -7.96M | 0 |
| Share Repurchases | -83K | -59K | -9.57M | -9.34M | 0 | 0 | 0 | -1.01M | -6.11M | 0 | 0 | 0 | 0 | 0 | -48.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -66.31M | -156K | 37.45M | -63.94M | 18.06M | -31.61M | 42.38M | -64.89M | -18.99M | -42.21M | -60.5M | -2.75M | -8.18M | 14.21M | -15.65M | -12.6M | 2.28M | -452K | -273K | 2.7M | 615K | 0 |
| Net Change in Cash | -81.05M | 8.36M | -390.75M | 389.21M | -99.46M | 89.99M | -29.57M | 46.99M | 13.44M | 113K | -46.1M | 62.17M | -89.53M | 94.99M | -114.13M | 118.83M | -17.96M | -65.98M | -21.89M | 112.35M | 9.61M | 100K |
| Free Cash Flow | 10.11M | -51.15M | -124.34M | 22.3M | -106.83M | 94.17M | 117.86M | 49.66M | 73.45M | 37M | 87.4M | 67.96M | 55.43M | 51.96M | 34.02M | 69.51M | 36.17M | 16.63M | 28.97M | 33.07M | 14.74M | 0 |
| FCF Margin % | 0.55% | -2.73% | -6.95% | 1.32% | -6.08% | 5.46% | 8.14% | 3.93% | 5.41% | 3.69% | 8.93% | 9.34% | 8.71% | 7.02% | 3.85% | 11.46% | 7.17% | 1.33% | 1.88% | 3.93% | 3.73% | - |
| FCF Growth % | 106.93% | 58.87% | -657.47% | 120.88% | -213.44% | -20.1% | 137.32% | -32.39% | 98.5% | -57.66% | 28.61% | 22.6% | 6.68% | 52.75% | -51.05% | 92.15% | 117.54% | -42.61% | -12.4% | 124.37% | - | - |
| FCF per Share | 0.13 | -0.68 | -1.65 | 0.31 | -1.51 | 1.44 | 1.87 | 0.83 | 1.23 | 0.62 | 1.60 | 1.25 | 1.13 | 1.08 | 0.70 | 1.44 | 0.88 | 0.48 | 0.92 | 1.20 | 1.16 | - |
| FCF Conversion (FCF/Net Income) | -0.04x | 0.03x | 0.32x | 0.72x | 0.79x | 1.17x | 6.52x | 0.28x | -20.07x | 2.92x | 2.04x | 0.52x | 0.25x | 1.06x | -13.33x | 1.41x | -0.92x | -0.77x | 0.52x | 1.03x | -1.07x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 75.75M | 58.55M | 42.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 32.67M | 30.77M | 12.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High Debt Service Burden
As reported in financial statements, CODI's operating cash flow to net income ratio has frequently fluctuated, with a 2026Q1 reading of -0.78, indicating that GAAP net losses are not being fully reconciled by cash-generative operations, which warrants significant caution regarding the quality of reported earnings.
The persistent divergence between net income and operating cash flow suggests that non-cash charges and accounting adjustments are masking the underlying cash reality of the portfolio. Investors should monitor whether this gap reflects genuine operational inefficiency or merely the structural impact of amortization from past acquisitions.
Based on recent SEC filings, CODI's free cash flow trajectory remains highly erratic, swinging from a negative $46.4M in 2024Q2 to a positive $36.9M in 2025Q4, which highlights the difficulty in maintaining consistent cash generation across the company's diverse and cyclical industrial and consumer subsidiaries.
The inability to sustain positive free cash flow suggests that the company's capital-intensive model is highly sensitive to external market conditions. This volatility complicates the dividend sustainability thesis, as cash available for distribution appears to be highly dependent on the timing of divestitures and subsidiary performance.
According to the provided data, working capital changes have been a significant drag on cash flow, with a $99.8M outflow in 2024Q3, suggesting that the company is struggling to optimize its cash conversion cycle amidst fluctuating inventory levels and potentially delayed collections across its diverse business units.
The frequent negative working capital swings indicate that the company may be over-investing in inventory or facing challenges in managing payables effectively. This trend appears to be a primary contributor to the company's inconsistent operating cash flow, necessitating a closer look at subsidiary-level inventory management practices.
As indicated by historical data, CODI has continued to pay dividends despite periods of negative free cash flow, such as the $28.5M payout in 2025Q2, which suggests that capital allocation is being prioritized to maintain shareholder yield even when operational cash generation is insufficient to cover these obligations.
The reliance on external financing or balance sheet liquidity to fund dividends and acquisitions appears unsustainable if the current negative net margin trend persists. Investors should monitor whether management will be forced to reduce capital deployment to subsidiaries if interest expenses continue to consume the majority of operating cash.
Based on reported figures, the company's cash flow statement obscures the impact of significant non-cash items, as evidenced by the consistent D&A charges often exceeding $30M per quarter, which suggests that headline cash flow figures may overstate the actual liquidity available for debt service and growth.
The heavy reliance on non-cash adjustments to reconcile net income to operating cash flow suggests that the company's true cash-generating capacity is lower than the headline figures imply. This warrants further investigation into whether capitalized costs are being used to defer expenses that would otherwise impact the bottom line.
Quick answers to the most common questions about buying CODI stock.
Compass Diversified (CODI) generated $-6.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Compass Diversified (CODI) reported negative free cash flow of $51.1M in 2025, indicating capital requirements exceeded cash from operations.
Compass Diversified (CODI) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Compass Diversified (CODI) returned $75.2M to shareholders via cash dividends and spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.