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Resolute Holdings Reports Second Quarter 2025 Results

NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Resolute Holdings Management, Inc. (“Resolute Holdings”) (Nasdaq: RHLD), an operating management company responsible for providing management services to CompoSecure Holdings, L.L.C. (“CompoSecure Holdings”), a wholly owned subsidiary of CompoSecure, Inc. (“CompoSecure”) (Nasdaq: CMPO), today reported financial results for its fiscal second quarter ending June 30, 2025. Resolute Holdings reported second quarter earnings per share attributable to common stockholders of ($0.07) and Non-GAAP Fee-Related Earnings per share of $0.08.

“I am pleased with our performance in the second quarter. We are seeing strong early results from the implementation of the operating system at CompoSecure, and our activity levels evaluating new acquisition opportunities remain high. Our platform combines proven operating capabilities with a permanent capital base, which we believe positions us as a differentiated buyer and long-term owner of market leading businesses. We reiterate our expectation for limited profitability for the full year” said Tom Knott, Resolute Holdings’ Chief Executive Officer.

Dave Cote, Resolute Holdings’ Executive Chairman added “I remain pleased with the progress we are making to improve operations, drive organic growth, and build a high-performance culture at CompoSecure. While still early in the process, I believe the second quarter’s performance is a good indicator of what’s possible. We are committed to making the necessary investments in the business to ensure it can reach its full potential over time. Beyond the specific operating system work at CompoSecure, Tom and I remain focused diligently evaluating the growing list of acquisition opportunities we are seeing against our core investment criteria.”

As a result of the spin-off from CompoSecure and execution of the Management Agreement with CompoSecure Holdings, Resolute Holdings is required to consolidate the financial results of CompoSecure Holdings in accordance with U.S. GAAP. This presentation of financial results does not represent the underlying economics or the positive attributes of Resolute Holdings’ standalone business model, which consist of recurring, long-duration management fees and a relatively fixed expense base. The results of the Resolute Holdings standalone business and associated Non-GAAP Fee-Related Earnings calculation are included below to provide a clear picture of the economic performance of the business directly attributable to shareholders of RHLD. This release includes such results presented in accordance with U.S. GAAP, as well as certain Non-GAAP measures, including Fee-Related Earnings. See “Use of Non-GAAP Financial Measures” below.

       
Resolute Holdings Segment Financial Information (GAAP); Fee-Related Earnings and Fee-Related Earnings Per Share (Non-GAAP) ($ in thousands except per share figures)
       
  Three months  Six months
  ended  ended
  June 30, 2025  June 30, 2025
Management fees $3,419   4,548 
Selling, general and administrative expenses  3,804   7,730 
Income from operations  (385)  (3,182)
Total other income (expense)  73   72 
Income (loss) before income taxes  (312)  (3,110)
Income tax (expense)  (299)  (867)
Net income (loss)  (611)  (3,977)
Net income (loss) attributable to non-controlling interest      
Net income (loss) attributable to common stockholders  (611)  (3,977)
Net income (loss) per share attributable to common stockholders - diluted $(0.07)  (0.47)
       
Adjustments to reconcile Fee-Related Earnings to net income (loss) attributable to common stockholders:      
Add: Equity-based compensation at CompoSecure (1)  1,310   2,458 
Add: Pro forma management fees from Jan 1, 2025 to Feb 27, 2025 (2)     2,046 
Add: Spin-Off costs (3)     290 
Net tax impact of adjustments (4)     (724)
Fee-Related Earnings  699   93 
Fee-Related Earnings per share - diluted $0.08   0.01 


(1)Equity-based compensation required to be reported by Resolute Holdings related to awards issued under the CompoSecure Equity Plan. Equity granted under the CompoSecure Equity Plan relates to CompoSecure Class A common stock and has no impact on Resolute Holdings’ common stock outstanding.
(2)Incremental management fees as if the CompoSecure Management Agreement was executed on January 1, 2025.
(3)One-time costs associated with the Spin-Off from CompoSecure.
(4)Tax-effect of adjustments at a 31% effective tax rate. Only applied to those adjustments that would impact Resolute Holdings’ taxes. Equity-based compensation expense under the CompoSecure Equity Plan is expensed for tax purposes at CompoSecure and not Resolute Holdings.
  

Exhibit – Structural Relationship & Non-GAAP Financial Summary

Exhibit – Structural Relationship & Non-GAAP Financial Summary

About Resolute Holdings Management, Inc.

Resolute Holdings (Nasdaq: RHLD) is an alternative asset management platform led by David Cote and Tom Knott that provides operating management services including the oversight of capital allocation strategy, operational practices, and M&A sourcing and execution at CompoSecure Holdings and other managed businesses in the future. Resolute Holdings brings a differentiated approach to long-term value creation through the systematic deployment of the Resolute Operating System, which will create value at both the underlying managed businesses and at Resolute Holdings. For additional information on Resolute Holdings, please refer to Resolute Holdings’ filings with the U.S. Securities and Exchange Commission or please visit www.resoluteholdings.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although Resolute Holdings believes that its plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, Resolute Holdings cannot assure you that it will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning Resolute Holdings’ expectations regarding personnel, potential future investments and opportunities, future platform acquisitions, limited profitability for the year ending December 31, 2025, revenues from management fees, the deployment of the Resolute Operating System, market opportunities, possible or assumed future actions, business strategies, events, or results of operations, and other matters, are forward-looking statements. In some instances, these statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or the negatives of these terms or variations of them or similar terminology. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should understand that the following important factors, among others, could affect Resolute Holdings’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in Resolute Holdings’ forward-looking statements: the timing and amount of the management fees payable to Resolute Holdings, including unexpected fluctuations therein, unexpected changes in costs, risks associated with the implementation of the Resolute Operating System, unexpected market and macroeconomic developments, demand for Resolute Holdings’ services, the ability of Resolute Holdings to grow and manage growth profitably, compete within its industry and attract and retain its key employees; the possibility that Resolute Holdings may be adversely impacted by other global economic, business, competitive and/or other factors, including but not limited to inflationary pressures, volatile interest rates, variable tariff policies or intensified disruptions in the global financial markets; the outcome of any legal proceedings that may be instituted against Resolute Holdings or others; future exchange and interest rates; and other risks and uncertainties, including those under “Risk Factors” in filings that have been made or will be made with the Securities and Exchange Commission. Resolute Holdings undertakes no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and that may be different from non-GAAP financial measures used by other companies. Resolute Holdings believes Fee-Related Earnings and Fee-Related Earnings per share are useful to investors in evaluating Resolute Holdings’ financial performance. Resolute Holdings believes that these non-GAAP financial measures depict the performance of the business and underlying economics attributable to Resolute Holdings common stockholders. Fee-Related Earnings and Fee-Related Earnings per share should not be considered as measures of financial performance under U.S. GAAP, and the items excluded from Fee-Related Earnings and Fee-Related Earnings per share are significant components in understanding and assessing Resolute Holdings’ financial performance. Accordingly, these key business metrics have limitations as an analytical tool. They should not be considered as an alternative to net income, net income per share, or any other performance measures derived in accordance with U.S. GAAP and may be different from similarly titled non-GAAP measures used by other companies.

For investor inquiries, please contact:

Resolute Holdings
(212) 256-8405
info@resoluteholdings.com

       
Consolidated Balance Sheets
Resolute Holdings Management, Inc.
($ in thousands, except par value and share amounts)
       
  June 30,  December 31, 
  2025
 2024
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $99,862  $71,589 
Accounts receivable  69,260   47,449 
Inventories, net  44,239   44,833 
Prepaid expenses and other current assets  3,681   2,696 
Deferred tax asset  24   24 
Total current assets  217,066   166,591 
       
Property and equipment, net  21,181   23,448 
Right of use assets, net  9,729   5,404 
Derivative asset - interest rate swap  1,377   2,749 
Deposits and other assets  3,938   3,600 
Total assets $253,291  $201,792 
       
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)      
CURRENT LIABILITIES      
Accounts payable $14,390  $5,691 
Accrued expenses  33,576   31,091 
Current portion of long-term debt  13,750   11,250 
Current portion of lease liabilities – operating leases  2,160   2,113 
Total current liabilities  63,876   50,145 
       
Long-term debt, net of deferred financing costs  177,071   184,389 
Lease liabilities, operating leases  8,203   3,888 
Total liabilities  249,150   238,422 
       
Commitments and contingencies (Note 16)      
       
Preferred stock, $0.0001 par value; 100,000,000 shares authorized, 0 shares issued and outstanding      
Common stock, $0.0001 par value; 1,000,000,000 shares authorized, 8,525,998 and 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.      
Additional paid-in capital  15,922   1,544 
Accumulated deficit  (6,311)  (2,334)
Total stockholders' equity (deficit)  9,611   (790)
Non-controlling interest  (5,470)  (35,840)
Total equity (deficit)  4,141   (36,630)
Total liabilities and stockholders' equity (deficit) $253,291  $201,792 
 


             
Consolidated Statements of Operations
Resolute Holdings Management, Inc.
($ in thousands, except per share amounts)
             
  Three months ended  Six months ended
  June 30,  June 30, 
  2025 2024 2025 2024
Net sales $119,592  $108,567  $223,481  $212,577 
Cost of sales  50,792   52,495   100,134   101,292 
Gross profit  68,800   56,072   123,347   111,285 
Operating expenses:            
Selling, general and administrative expenses  28,167   22,681   57,093   45,451 
Income from operations  40,633   33,391   66,254   65,834 
             
Other income (expense):            
Change in fair value of derivative liability - convertible notes redemption make-whole provision     178      (119)
Interest income  1,504   1,100   2,581   2,204 
Interest expense  (3,376)  (6,435)  (6,760)  (12,972)
Amortization of deferred financing costs  (165)  (332)  (296)  (659)
Total other expense, net  (2,037)  (5,489)  (4,475)  (11,546)
Income (loss) before income taxes  38,596   27,902   61,779   54,288 
Income tax (expense)  (299)     (867)   
Net income (loss) $38,297  $27,902  $60,912  $54,288 
             
Net income (loss) attributable to non-controlling interest  38,908   27,902   64,889   54,288 
             
Net income (loss) attributable to common stockholders $(611) $  $(3,977) $ 
             
Net income (loss) per share attributable to common stockholders - basic & diluted $(0.07) $  $(0.47) $ 
             
Weighted average shares used to compute net income (loss) per share attributable to common stockholders - basic & diluted (in thousands)  8,526   8,526   8,526   8,526 
             


       
Consolidated Statements of Cash Flows
Resolute Holdings Management, Inc.
($ in thousands)
       
  Six months ended June 30, 
  2025 2024
       
Cash flows from operating activities:      
Net income (loss) $60,912  $54,288 
Adjustments to reconcile net income (loss) to net cash provided by operating activities      
Depreciation and amortization  4,614   4,601 
Equity-based compensation expense  12,448   9,210 
Amortization of deferred financing costs  296   669 
Non-cash operating lease expense  1,245   1,168 
Change in fair value of derivative liability – convertible notes redemption make-whole provisions     119 
Changes in assets and liabilities      
Accounts receivable  (21,811)  840 
Inventories  594   (4,974)
Prepaid expenses and other assets  (985)  1,943 
Accounts payable  8,699   4,206 
Accrued expenses  2,485   903 
Lease liabilities  (1,209)  (1,213)
Net cash provided by operating activities  67,288   71,760 
       
Cash flows from investing activities:      
Purchase of property and equipment  (1,976)  (3,129)
Capitalized software costs  (822)  (398)
Net cash used in investing activities  (2,798)  (3,527)
       
Cash flows from financing activities:      
Payment of term loan  (5,000)  (9,375)
Distributions to CompoSecure Holdings members  (15,933)  (61,545)
Contribution by CompoSecure Holdings  11,869    
Contribution to Resolute Holdings  (11,869)   
Payments for taxes related to net share settlement of CompoSecure equity awards  (15,284)  (8,432)
Net cash used in financing activities  (36,217)  (79,352)
       
Net increase (decrease) in cash and cash equivalents  28,273   (11,119)
       
Cash and cash equivalents, beginning of period  71,589   38,191 
       
Cash and cash equivalents, end of period $99,862  $27,072 
       
Supplementary disclosure of cash flow information:      
Cash paid for interest expense $6,593  $12,890 
Supplemental disclosure of non-cash financing activities:      
Consolidation of CompoSecure Holdings net assets (liabilities), excluding cash, from execution of CompoSecure Management Agreement $(98,508) $ 
Derivative asset - interest rate swap $(1,372) $(77)
         


                          
Segment Statements of Operations and Non-GAAP Reconciliations
Resolute Holdings Management, Inc.
($ in thousands, except per share amounts)
                          
  Three months ended  Six months ended
  June 30, 2025  June 30, 2025
  ($ in thousands except per share figures)  ($ in thousands except per share figures)
  Resolute CompoSecure Intercompany/    Resolute CompoSecure Intercompany/    
  Holdings Holdings Eliminations Consolidated Holdings Holdings Eliminations Consolidated 
Management fees $3,419  $  $(3,419) $  $4,548  $  $(4,548) $  
Product sales     119,592      119,592      223,481      223,481  
Net sales  3,419   119,592   (3,419)  119,592   4,548   223,481   (4,548)  223,481  
Cost of sales     50,792      50,792      100,134      100,134  
Gross profit  3,419   68,800   (3,419)  68,800   4,548   123,347   (4,548)  123,347  
Total selling, general and administrative expenses  3,804   27,782   (3,419)  28,167   7,730   55,721   (6,358)  57,093  
Income from operations  (385)  41,018      40,633   (3,182)  67,626   1,810   66,254  
Total other income (expense)  73   (2,110)     (2,037)  72   (4,547)     (4,475) 
Income (loss) before income taxes  (312)  38,908      38,596   (3,110)  63,079   1,810   61,779  
Income tax (expense)  (299)        (299)  (867)        (867) 
Net income (loss)  (611)  38,908      38,297   (3,977)  63,079   1,810   60,912  
Net income (loss) attributable to non-controlling interest     38,908      38,908      63,079   1,810   64,889  
Net income (loss) attributable to common stockholders  (611)        (611)  (3,977)        (3,977) 
Net income (loss) per share attributable to common stockholders - diluted $(0.07)       $(0.07) $(0.47)       $(0.47) 
                          
Adjustments to reconcile fee-related earnings to net income (loss) attributable to common stockholders:                         
Add: Equity-based compensation at CompoSecure (1)  1,310         1,310   2,458         2,458  
Add: Pro forma management fees from Jan 1, 2025 to Feb 27, 2025 (2)              2,046         2,046  
Add: Spin-Off costs (3)              290         290  
Net tax impact of adjustments (4)              (724)        (724) 
Fee-Related Earnings  699         699   93         93  
Fee-Related Earnings per share - diluted $0.08        $0.08  $0.01        $0.01  
                          
Diluted weighted average shares used to compute:                         
Net income (loss) per share attributable to common stockholders (in thousands)  8,526         8,526   8,526         8,526  
Fee-Related Earnings per share (in thousands)  8,527         8,527   8,526         8,526  


(1)Equity-based compensation required to be reported by Resolute Holdings related to awards issued under the CompoSecure Equity Plan. Equity granted under the CompoSecure Equity Plan relates to CompoSecure Class A common stock and has no impact on Resolute Holdings’ common stock outstanding.
(2)Incremental management fees as if the CompoSecure Management Agreement was executed on January 1, 2025.
(3)One-time costs associated with the Spin-Off from CompoSecure.
(4)Tax-effect of adjustments at a 31% effective tax rate. Only applied to those adjustments that would impact Resolute Holdings’ taxes. Equity-based compensation expense under the CompoSecure Equity Plan is expensed for tax purposes at CompoSecure and not Resolute Holdings.
  


                         
Additional Information
Segment Balance Sheets
Resolute Holdings Management, Inc.
($ in thousands, except per share amounts)
                         
  June 30, 2025 December 31, 2024
  ($ in thousands) ($ in thousands)
  Resolute CompoSecure Intercompany/    Resolute CompoSecure Intercompany/   
  Holdings Holdings Eliminations Consolidated Holdings Holdings Eliminations Consolidated
ASSETS                        
CURRENT ASSETS                        
Cash and cash equivalents $8,196  $91,666  $  $99,862  $  $71,589  $  $71,589 
Accounts receivable  3,419   69,260   (3,419)  69,260      47,449      47,449 
Inventories, net     44,239      44,239      44,833      44,833 
Prepaid expenses and other current assets  546   3,135      3,681      2,696      2,696 
Deferred tax asset  24         24   24         24 
Total current assets  12,185   208,300   (3,419)  217,066   24   166,567      166,591 
                         
Property and equipment, net     21,181      21,181      23,448      23,448 
Right of use assets, net  1,093   8,636      9,729      5,404      5,404 
Derivative asset - interest rate swap     1,377      1,377      2,749      2,749 
Deposits and other assets     3,938      3,938      3,600      3,600 
Total assets  13,278   243,432   (3,419)  253,291   24   201,768      201,792 
                         
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                        
CURRENT LIABILITIES                        
Accounts payable  122   14,202   66   14,390      5,691      5,691 
Accrued expenses  2,451   34,544   (3,419)  33,576   814   30,954   (677)  31,091 
Current portion of long-term debt     13,750      13,750      11,250      11,250 
Current portion of lease liabilities – operating leases  74   2,086      2,160      2,113      2,113 
Total current liabilities  2,647   64,582   (3,353)  63,876   814   50,008   (677)  50,145 
                         
Long-term debt, net of deferred financing costs     177,071      177,071      184,389      184,389 
Lease liabilities, operating leases  1,020   7,183      8,203      3,888      3,888 
Total liabilities  3,667   248,836   (3,353)  249,150   814   238,285   (677)  238,422 
                         
Additional paid-in capital  15,922         15,922   1,544         1,544 
Accumulated deficit  (6,311)        (6,311)  (2,334)        (2,334)
Total stockholders' equity (deficit)  9,611         9,611   (790)        (790)
Non-controlling interest     (5,404)  (66)  (5,470)     (36,517)  677   (35,840)
Total equity (deficit)  9,611   (5,404)  (66)  4,141   (790)  (36,517)  677   (36,630)
Total liabilities and stockholders' equity (deficit) $13,278  $243,432  $(3,419) $253,291  $24  $201,768  $  $201,792 
 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d35da345-3975-4487-838f-e85fd06f39ff



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