Gpgi, Inc.NYSE: GPGI

Q1 2026 Earnings Call Q1 2026 Earnings Presentation

· Issued by Gpgi, Inc.

TM

First Quarter 2026 Earnings Presentation

May 7, 2026



Executive Summary

Strength at CompoSecure Offset by Market-Driven Weakness at Husky - Thesis Remains Intact

1Q performance

  • CompoSecure delivered record sales, strong operating performance, and continued margin expansion

  • Husky impacted by unanticipated market headwinds due to oil / resin price shock and continued tariff uncertainty

Market demand drivers

  • CompoSecure seeing robust demand from both traditional banks and leading fintechs

  • Husky faced demand deferrals as customers rapidly shifted to "wait-and-see" mode in second half of March

Revising full year 2026 guidance

  • Continued strong performance anticipated at CompoSecure

  • Cannot predict when transient demand headwinds abate for Husky, so being cautious with full year outlook

Committed to continued ROS deployment and strategic investments

  • CompoSecure one year ahead of Husky - see clear impact from high-performance culture and investments

  • ROS implementation focused on both growth and operations at CompoSecure and accelerating at Husky

3

1Q26 Financial Performance

Continued Strength at CompoSecure Overshadowed by Market-Driven Weakness at Husky

PF Adjusted Net Sales1 ($mn)

PF Adjusted EBITDA ($mn)2,3

PF Adjusted EBITDA Margin2,3

▲

2.6%

$130.4

↑ 25.6%

$103.9

$306.8

$290.8

↓ 5.2%

▼

430bps

▼

(16.0%)

Husky / CompoSecure Husky / CompoSecure

$410.7 $421.2

$97.73

23.8%

19.5%

$47.6

↑ 36.8%

$34.8

$38.2

↓ 40.2%

$63.9

$82.13

1Q25 1Q26

1Q25 1Q26

1Q25 1Q26

  • CompoSecure benefited from accelerating demand across both banks and fintechs

  • Husky faced market ambiguity from oil / resin price shock and continued tariff uncertainty creating demand delays

  • CompoSecure delivered significant EBITDA growth from higher sales and operational productivity gains

  • Husky decline due to lower sales, higher cost base than planned, and continued investments in R&D and front-end sales

  • CompoSecure margin expansion from ROS initiatives delivering improved manufacturing yields and operational efficiencies

  • Husky burdened by under absorbed labor costs, negative operating leverage, and one-time investments

ROS driven performance at CompoSecure offset by market-driven weakness at Husky

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

  1. Pro Forma Adjusted Net Sales include sales generated prior to the closing of the Husky transaction on January 12, 2026.

  2. Pro Forma Adjusted EBITDA includes the management fees (collectively, "Management Fee") that would have been paid had the management agreements between Resolute Holdings and each of GPGI Holdings, L.L.C. (the "CompoSecure Management 4

    Agreement") and Husky Holdings LLC (the "Husky Management Agreement", and together, the "Management Agreements") been in effect from January 1, 2025.

  3. Pro Forma Adjusted EBITDA quarterly totals are inclusive of Corporate segment allocation. In 1Q25, Corporate Pro Forma Adjusted EBITDA was ($1.1mn). For 1Q26, Corporate Pro Forma Adjusted EBITDA was ($3.8mn).

1Q26 Pro Forma Adjusted EBITDA Reconciliation

Simplified, GAAP to Non-GAAP Operating Results

($ in millions)

GAAP Net Loss

($235.0)

Plus: Pro Forma impact of Husky Holdings (1/1-1/11)

($18.0)

Pro Forma Net Loss

($253.0)

Plus: Loss on extinguishment and refinancing of debt

106.8

Plus: Husky transaction costs

98.0

Plus: Depreciation and amortization

63.7

Plus: Net interest expense

36.7

Plus: Other items

29.9

Pro Forma Adjusted EBITDA

$82.1

Simplified walk to Pro Forma Adjusted EBITDA given transaction and accounting complexity

Note: For a comprehensive reconciliation, please reference the 1Q26 Statement of Operations on page 16.

5

What Changed for Husky?

Oil / Resin Price Shock Following 4Q25 Earnings Impacted 1Q26 Performance and FY26 Outlook

4Q25 Call

March

1Q26

So What?

Jan: +7% y/y

Pipeline +4% y/y +4% y/y

Feb: +6% y/y

  • Pipeline healthy, but conversion to orders began extending in mid-March with oil price shock

  • April pipeline up ~8% y/y with May trending similar1

Jan: +32% y/y

Orders -16% y/y +8% y/y

Feb: +22% y/y

  • As oil / resin prices spiked in March, customers delayed orders

    - this trend continued in April

  • April orders up ~2% y/y1

Jan: -4% y/y

Backlog -5% y/y -5% y/y

Feb: +1% y/y

  • Backlog recovered year-over-year in February offset by decline in March, consistent with order activity

  • April backlog down ~5% y/y1

Aftermarket Orders = Jan: +11% y/y

Embedded Resiliency Feb: +26% y/y -11% y/y +6% y/y

  • March declines consistent with customer demand uncertainty given market conditions; 1Q26 aftermarket tooling, spare parts, and services orders all increased over prior year levels

Other Factors

  • Positive: Oil / resin prices increasing customer focus on light weighting and upgrades, and further evaluation of rPET systems

  • Negative: Customer uncertainty driving lower end-of-quarter shipments vs. historical levels and continued "wait-and-see" behavior

Oil and resin price shock pushed out orders and deliveries

1. Numbers for periods beyond 1Q26 are estimates subject to change including in connection with normal quarter-end procedures.

6

Resilient End-Market Demand Impacted by Near-Term Volatility

Short-Term Disruption

Oil / Resin Price Shock Impacted Customer Purchases

Demand Remains Resilient

Non-Alcoholic Beverage Demand

Spike in PET Resin Prices ($ / tonne)

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

Apr-25 May-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26

Apr-26

-4.0%

Volume Pricing Sales Growth

$1,929

$1,433

$1,620

US

+36% vs. Jan

Feb-26 Mar-26 Apr-26

Europe

+64% vs. Jan

$1,632 $1,701

$1,077

Feb-26 Mar-26 Apr-26

$860

China

+48% vs. Jan

$1,285 $1,205

Feb-26 Mar-26 Apr-26

  • Lightweighting - increased focus on

    Long-Term Trends

Customer Focus on Productivity

lightweighting given PET is ~60-70% of the cost

  • Format Shifts - family / in-home packs, value-focused sizes, penetration of cheaper brands

  • Alternative Feedstocks - shift to rPET (similar price as virgin resin now) and bio-resins

  • Uptime & Throughput - focus on resin wastage, energy usage, and machine uptime to manage production economics

  • Asset Renewal - customer reevaluating their aging installed bases

Pipeline Remains Strong1

Customers Delay Orders2

Husky Differentiation

Y/Y Growth

+7%

+6%

+4%

+8%

103%

98%

98%

107%

Jan-26 Feb-26 Mar-26 Apr-26

32%

22%

2%

-16%

Jan-26 Feb-26 Mar-26 Apr-26

  • Husky has market leadership in lighter weight applications given higher precision

  • Recycled resins add more variability (viscosity, inclusions) - Husky has differentiated solutions to support up to 100% recycled PET

  • 15-20% TCO advantage vs. competitors

  • Long track record of best-in-class uptime and throughput with continuous monitoring via Advantage+Elite service

    Sources: NielsenIQ xAOC + C & Amazon and Wood Mackenzie.

    1. Reflects growth in the 12-month opportunity pipeline, indexed starting in December 2025.

    2. Represents year-over-year growth rates. 7

1Q26 Summary

Oil / Resin Price Shock Delaying Demand

Pro Forma Adjusted Net Sales1 of $290.8 million down 5.2% compared to first quarter 2025, driven by declines in PET system sales and tooling offsetting strong growth in spare parts, hot runners, and controllers.

Pro Forma Adjusted EBITDA of $38.2 million down 40.2% compared to first quarter 20252, due to lower revenues with resulting negative operating leverage, and continued investments in R&D and sales.

Orders and backlog weakened quickly in late March with resin price shock; pipeline strength provides support for revenue growth and improved profitability in the second half of the year.

Focused on accelerating ROS implementation to establish a high-performance culture while making necessary investments to catalyze innovation and accelerate long-term organic growth.

Focused on disciplined execution, ROS implementation, and ongoing investment to scale the business

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

  1. Pro Forma Adjusted Net Sales include sales generated prior to the closing of the Husky transaction on January 12, 2026.

  2. Pro Forma Adjusted EBITDA includes the Management Fee that would have been paid had the Management Agreements been in effect from January 1, 2025. 8

New Systems Decline Offset by Recurring Aftermarket Demand

Market Environment by Product Line and Region

Product Line

1H26

FY26

Key Drivers

New Systems





  • Customers deferring orders due to resin price volatility, resin supply shortages, tariff related uncertainty,

    and elevated financing costs

  • Weakness to continue in second half if the idiosyncratic headwinds persist

Aftermarket Tooling





  • Orders were impacted by tariffs in 4Q25 which weighed on 1Q26 sales

  • Similar to new system sales, orders are being deferred in the near-term, but we expect the segment to return to growth in 2H26 as customers invest in tooling for existing machines

Hot Runners & Controllers





  • Strong revenue growth in hot runners to date in most regions

  • Continued market uncertainty weighing on the outlook in the near term

Parts &

Services





  • Services demand was impacted at the end of 1Q and beginning of 2Q due to market ambiguity and tariff

    noise

  • We expect growth in 2H26 as customers focus on productivity for existing machines

Region

FY26

Key Drivers

North

America



  • Decline in PET systems partly offset by growth in tooling, parts, and services

  • Near-term order deferrals due to resin price volatility and changes in Section 232 tariffs

  • Oldest Husky install base - refresh cycle is overdue

  • rPET and virgin PET prices converging; lightweighting initiatives are gaining momentum

Europe, Middle East, Africa



  • Growth in PET systems in Middle East and Africa driven by favorable demographics and macroeconomics,

    including consumption growth, partly offset by near-term geopolitical disruptions

  • Aftermarket tooling growth in Europe driven by lightweighting and sustainability regulations

  • Growth in hot runners driven by growth in medical applications

Latin America



  • Decline in CSD consumption driven by sugar tax, affecting growth in PET systems

  • Aftermarket tooling continued growth driven by lightweighting and package optimization

Asia Pacific



  • Growth in PET systems driven by favorable demographics and macroeconomics, including consumption growth

  • Growth in hot runners driven by food packaging and medical applications

9

1Q26 Financial Performance

▼

770bps

Macroeconomic Demand Ambiguity Led to Revenue Decline and Margin Degradation

PF Adjusted Net Sales ($mn)1

PF Adjusted EBITDA ($mn)2

PF Adjusted EBITDA Margin2

▼

(5.2%)

$306.8

$290.8

▼

(40.2%)

$63.9

20.8%

$38.2

13.2%

1Q25 1Q26

1Q25 1Q26

1Q25 1Q26

  • Decline driven by customer demand delays and specific delivery problems caused by Middle East conflict, oil price shock, and continued tariff uncertainty

  • Over $20 million in revenue shifted out of the quarter due to customer deferrals, shipment delays in the Middle East, and delayed payments - trend continues in 2Q

  • Decline primarily attributable to lower revenue growth, under absorbed labor and fixed costs, and one-time strategic investments in R&D and front-end sales capabilities

  • Margin compression due to negative operating leverage and product mix

    • ~250bps from under absorbed labor

    • ~160bps from one-time growth investments

    • Remaining from negative operating leverage as revenues were pushed out

  • Margins expected to improve significantly through the year with improving fixed cost absorption and planned cost saving actions

Managing through demand uncertainty while continuing "seed planting" investments to position the business for growth and margin expansion

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

  1. Pro Forma Adjusted Net Sales include sales generated in the period in January prior to the closing of the Husky transaction on January 12, 2026.

  2. Pro Forma Adjusted EBITDA includes the Management Fee that would have been paid had the Management Agreements been in effect from January 1, 2025. 10

1Q26 Summary

Delivering Record Net Sales and Strong Operating Performance

Record Adjusted Net Sales of $130.4 million up 25.6% compared to first quarter 2025, driven by robust demand from traditional banks and leading fintechs.

Adjusted EBITDA of $47.6 million up 36.8% compared to first quarter 20251, due to organic revenue growth and continued operational efficiencies from ROS implementation.

Numerous high-profile card program wins include American Express Graphite, Robinhood Platinum, Intuit, Fold, MetaMask in the US, Kraken (debit), X Money (debit), and Revolut Audi F1 (debit).

Investments aligned to our strategic and execution framework include key leadership expansion with the appointment of General Managers for our International and Arculus businesses.

Record sales and strong operating leverage in the first quarter

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

  1. Pro Forma Adjusted EBITDA includes the Management Fee that would have been paid had the Management Agreements been in effect from January 1, 2025.

11

1Q26 Financial Performance

▲

36.8%

Significant Progress Against All Key Metrics Catalyzed by ROS

Adjusted Net Sales ($mn)

Adjusted EBITDA ($mn)1

Adjusted EBITDA Margin1

▲

25.6%

$130.4

$47.6

$103.9

▲

300bps

36.5%

33.5%

$34.8

1Q25 1Q26

1Q25 1Q26

1Q25 1Q26

  • Driven by robust demand across both traditional banks and leading fintechs

  • Reinvigorated go-to-market with sales process training and sales enablement tools

  • Process innovation consistently improving manufacturing yields

  • Investment in engineering and manufacturing capabilities enhancing margins

Strong sales and margin expansion from ROS-enabled operating efficiency gains

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

1. Pro Forma Adjusted EBITDA includes the Management Fee that would have been paid had the Management Agreements been in effect from January 1, 2025.

12

Introducing 2Q26 and Revising FY26 Guidance

Focused on Execution - Implementing ROS to Catalyze Growth and Improve Profitability

($ in millions)

Guidance Metrics

2Q26

FY261

Pro Forma Adjusted Net Sales2

$425 - $475 (-9% y/y)

$1,950 - $2,100 (+0% y/y)2

Pro Forma Adjusted EBITDA2,3

$105 - $120 (-14% y/y)

$550 - $610 (+7% y/y)

Pro Forma Adjusted EBITDA Margin2,3

24.7% - 25.3% (-140bps)

28.2% - 29.0% (+180bps)

Pro Forma Adjusted Free Cash Flow4

$275 - $325

Delay

Resolve

Iran? Oil? Tariffs?

GPGI Expectations

  • Flat organic revenue growth in FY26

    • CompoSecure to grow LDD driven by continued penetration of large, untapped addressable market

    • Husky to decline MSD driven by macro disruptions and demand softness in select regional markets

  • Margin expansion in second half of the year from organic sales growth, continued cost savings, and fixed cost leverage from ROS implementation

  • Healthy free cash flow with higher growth capital expenditures

  • Effectively mitigating tariff impacts through pricing and sourcing initiatives

Continued strong performance at CompoSecure expected to be offset by market-driven weakness at Husky

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

  1. Year-over-year growth rate based on midpoint of guidance ranges. For FY26, measures include pro forma effect of Husky for periods prior to the completion of the Husky acquisition on January 12, 2026.

  2. Pro Forma Adjusted Net Sales for FY 2026 include sales generated prior to the closing of the Husky transaction on January 12, 2026. 13

  3. Pro Forma Adjusted EBITDA includes the Management Fee that would have been paid had each of the Management Agreements been in effect from January 1, 2025.

  4. FY26E Pro Forma Adjusted Free Cash Flow includes ~$45mn in one-time, growth capital expenditures across both CompoSecure and Husky and excludes one-time Husky transaction and debt refinancing costs.

Capital Structure Update

Key Financial Metrics

($ in millions)

As of March 31, 2026

Cash Balance

$122

Total Debt Outstanding1

$2,175

Net Debt

$2,053

LTM Net Debt / Pro Forma Adjusted EBITDA2

3.7x

Revolver Capacity3

$322

Total Liquidity

$444

Credit Highlights

  • GPGI has no near-term maturities

    • $400mn revolver matures in 2031 (~5 years)

    • $1.2bn term loan and $900mn of senior secured notes both mature in 2033 (~7 years)

  • Term loan has annual amortization of $12mn - represents $3mn per quarter commencing in 3Q 2026 - with bullet payment at maturity (2033)

  • Debt instruments are all covenant lite

  • Non-GAAP year-end Net LTM leverage of approximately 3.0x

GPGI has ample liquidity and manageable leverage, with a continued focus on debt paydown

Note: For a reconciliation of Non-GAAP measures to the most directly comparable measures prepared in accordance with GAAP, please reference the Appendix.

  1. Total debt outstanding includes term loan, senior secured notes, and drawn revolver.

  2. Pro Forma Adjusted EBITDA includes the Management Fee that would have been paid had each of the Management Agreements been in effect from January 1, 2025. 14

  3. Revolver capacity reflects undrawn revolver balance net of outstanding letters of credit.

Appendix -Financial Supplement

Statement of Operations - 1Q26

Unaudited GAAP to Non-GAAP Operating Results

($ in millions)

Three Months Ended

March 31, 2026

GAAP

Pro Forma Non-GAAP

GPGI, Inc. (1/1 - 3/31)

Addition of

Husky Holdings (1/1-1/11)

Addition of

GPGI Holdings

Elimination of Equity

Method Investment

Net sales

-

-

$407.8

$13.4

$421.2

Cost of sales

-

-

252.2

12.3

264.5

Gross profit

Operating expenses:

-

-

155.6

1.1

156.7

Research and development

-

-

8.4

-

8.4

Selling, general and administrative expenses

55.6

-

162.8

13.9

232.3

Foreign currency losses (gains)

-

-

(1.2)

(1.9)

(3.1)

Income from operations

(55.6)

-

(14.4)

(10.9)

(80.9)

Other (expense) income:

Revaluation of warrant liability

-

-

-

-

-

Revaluation of earnout consideration liability

-

-

-

-

-

Change in fair value of derivative liability

-

-

-

-

-

Loss on remeasurement of TRA liability

(21.9)

-

-

-

(21.9)

Interest expense

-

-

(29.4)

(7.1)

(36.5)

Interest income

0.2

-

0.2

-

0.4

Loss on extinguishment of debt

-

-

(106.8)

-

(106.8)

Amortization of deferred financing costs

-

-

(0.5)

-

(0.5)

Loss of sale of assets

-

-

-

-

-

Total other income (expense), net

(21.7)

-

(136.5)

(7.1)

(165.3)

Income (loss) before income taxes

(77.3)

-

(150.9)

(18.0)

(246.2)

Income tax expense

(3.6)

-

(3.2)

-

(6.8)

Earnings in GPGI Holdings L.L.C equity method investment

(154.1)

154.1

-

-

-

Net Income (Loss)

($235.0)

$154.1

($154.1)

($18.0)

($253.0)

Add:

Depreciation and amortization

63.7

Income tax expense (benefit)

6.8

Interest expense, net (1)

36.7

Stock-based compensation

5.2

Husky transaction cost

98.0

Loss on extinguishment and refinancing of debts

106.8

Loss on remeasurement of TRA liability

21.9

Loss on sale of assets

0.6

FX (gain) loss

(4.2)

Severance costs

0.6

Incremental pro forma Management Fee

(1.0)

Pro Forma Adjusted EBITDA $82.1

Note: The Non-GAAP columns represent a consolidation of the Company's results with those of GPGI Holdings, for consistency with prior consolidated presentation.

  1. Includes amortization of deferred financing costs for the three months ended March 31, 2026.

16

Statement of Operations - 1Q25

Unaudited GAAP to Non-GAAP Operating Results

($ in millions)

Three Months Ended

March 31, 2025

GAAP

Equity Method Adjustments

Non-GAAP

GPGI, Inc.

GAAP Results

Elimination of Equity Method Investment

Addition of GPGI Holdings

Adjusted March 31, 2025

Net sales

$59.8

-

$44.1

$103.9

Cost of sales

31.1

-

18.3

49.4

Gross profit

Operating expenses:

28.7

-

25.8

54.5

Selling, general and administrative expenses

22.7

-

10.1

32.8

Income from operations

6.0

-

15.7

21.7

Other (expense) income:

Revaluation of warrant liability

17.9

-

-

17.9

Revaluation of earnout consideration liability

11.2

-

-

11.2

Interest expense

(1.6)

-

(1.7)

(3.3)

Interest income

0.2

-

0.9

1.1

Amortization of deferred financing costs

-

-

(0.1)

(0.1)

Total other income (expense), net

27.7

-

(0.9)

26.8

Income before income taxes

33.7

-

14.8

48.5

Income tax (expense) benefit

(27.0)

-

-

(27.0)

Earnings in CompoSecure Holdings L.L.C equity method investment

14.8

(14.8)

-

-

Net Income (Loss)

$21.5

($14.8)

$14.8

$21.5

Add:

Depreciation and amortization (3)

2.3

Income tax expense (benefit)

27.0

Interest expense, net (1) (3)

2.4

Stock-based compensation

5.7

Mark-to-market adjustments (2)

(29.2)

Resolute spin-off costs

5.0

Add back actual 1Q25 Management Fee for one month

1.1

Add back expenses incurred on behalf of Resolute Holdings prior to Spin-Off

1.0

Pro forma full quarter Management Fee

(3.2)

Pro Forma Adjusted EBITDA

$33.7

Note: The Non-GAAP columns represent a consolidation of the Company's results with those of CompoSecure Holdings, for consistency with prior consolidated presentation.

  1. Includes amortization of deferred financing costs for the three months ended March 31, 2025.

  2. Includes the changes in fair value of warrant liability, derivative liabilities, and earnout consideration liability for the three months ended March 31, 2025. 17

  3. The presented adjustments include amounts related to both CompoSecure and its equity method investment in Holdings.

Statement of Cash Flows - 1Q26

Unaudited (GAAP and Non-GAAP)

($ in millions)

Three Months Ended March 31,

2026

2026

CASH FLOWS FROM OPERATING ACTIVITIES:

GAAP

Non-GAAP

Net income (loss)

($235.0)

($253.0)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities

Depreciation and amortization

-

63.8

Stock-based compensation expense

2.0

5.3

Earnings in equity method investment

154.1

-

Amortization of deferred financing costs Non-cash operating lease expense Revaluation of earnout consideration liability Revaluation of warrant liability

Cash receipts from Holdings

-

-

-

-

-

1.0

-

-

-

-

Loss on remeasurement of TRA Liability

21.9

21.9

Loss on extinguishment of debt

Non-cash interest on operating lease expense

Loss/ (gain) on dispositions of property, plant and equipment and intangible assets Other

Change in fair value of derivative liability

-

-

-

-

-

66.3

-

-

2.4

-

Deferred tax expense (benefit)

13.7

4.0

Changes in assets and liabilities

(9.3)

(65.5)

Net cash (used in) provided by operating activities

($52.6)

($153.8)

CASH FLOWS FROM INVESTING ACTIVITIES:

Investment in GPGI Holdings

(2,016.8)

-

Cash used for acquisition

-

(762.2)

Purchase of property and equipment

-

(8.9)

Proceeds from sale of property and equipment and intangible assets

-

0.2

Acquisition of a business, net of cash and cash equivalents acquired

-

-

Maturities of short-term investments

-

41.1

Capitalized software expenditures

-

(4.3)

Resolute Holdings cash deconsolidated as a result of the Spin-Off

GPGI Holdings cash deconsolidated as a result of the CompoSecure Management Agreement

-

-

-

-

Net cash used in investing activities

($2,016.8)

($734.1)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of preference share capital Contributions from GPGI Inc

Proceeds from employee stock purchase plan and exercise of options

Payments for taxes related to net share settlement of equity awards

-

-

-

-

(457.4)

-

-(26.6)

Debt issuance costs

Payment of term loan

-

-

(37.5)

-

Proceeds from Revolver

-

50.0

Proceeds from issuance of common stock

1,962.0

1,962.0

Payment of debt, net of associated fees

-

(3,309.2)

Proceeds from issuance of long-term debt - net of discounts

-

2,523.5

Dividend to Class A shareholders Net cash obtained from PIPE

Proceeds from the exercise of warrants

(0.7)

-

-

(0.7)

-

-

Net cash used in financing activities

$1,961.3

$704.1

Effect of exchange rate changes on cash and cash equivalents

-

(2.3)

Net increase (decrease) in cash and cash equivalents

(108.1)

(186.1)

Cash and cash equivalents, beginning of period

114.6

307.7

Cash and cash equivalents, end of period

$6.5

$121.6

Note: The Non-GAAP column represents a consolidation of the Company's results with those of GPGI Holdings L.L.C. ("GPGI Holdings"), for consistency with prior consolidated presentation.

Note: All instruments have been redeemed / exercised and no mark to market adjustments are expected going forward.

18

Balance Sheet

Unaudited (GAAP and Non-GAAP)

($ in millions)

GAAP

Non-GAAP

GAAP

Non-GAAP

March 31, 2026 March 31, 2026 December 31, 2025 December 31, 2025

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$6.5

$121.6

$114.6

$271.6

Short-term investments

-

-

-

41.1

Accounts receivable

-

328.1

-

44.2

Inventories, net

-

411.1

-

44.2

Prepaid expenses and other current assets

16.4

38.0

5.5

8.6

Total Current Assets

$22.9

$898.8

$120.1

$409.7

Property and equipment, net and right of use asset

-

$557.9

-

$30.7

Deferred tax asset

258.0

261.8

271.7

271.7

Intangible assets, net

-

1,624.1

-

-

Goodwill

-

3,041.9

-

-

Other assets

-

48.1

-

4.0

Equity method investment

3,133.2

-

125.5

-

Total Assets

$3,414.1

$6,432.6

$517.3

$716.1

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable

$1.4

$101.8

$0.8

$12.7

Accrued expenses

3.1

269.6

1.9

48.7

Deferred revenues

-

164.8

-

-

Current portion of tax receivable agreement liability

20.4

20.4

16.2

16.2

Current portion of long-term debt

-

9.0

-

15.0

Other current liabilities

-

56.3

-

5.8

Total Current Liabilities

$24.9

$621.9

$18.9

$98.4

Long-term debt, net of deferred finance costs

-

2,138.3

-

170.0

Deferred tax liability

-

303.2

-

-

Tax receivable agreement liability

272.9

272.9

255.2

255.2

Other liabilities

-

62.7

-

7.3

Total Liabilities

$297.8

$3,399.0

$274.1

$530.9

Stockholder's equity / (deficit)

3,116.3

3,033.6

243.2

185.2

Total Liabilities and Stockholder's Equity / (Deficit)

$3,414.1

$6,432.6

$517.3

$716.1

Finished 1Q26 with ~$122 million in cash

Note: The Non-GAAP columns represent a consolidation of the Company's results with those of GPGI Holdings, for consistency with prior consolidated presentation.

19

1Q26 Earnings Per Share and Adjusted Free Cash Flow

Non-GAAP Reconciliation

($ in millions, except per share amounts)

Basic Earnings Per Share

Diluted Earnings Per Share

Three Months Ended March 31, 2026 2025

Net income (loss) ($235.0) $21.4

Add (less): Provision (benefit) for income taxes 6.8 27.0

Three Months Ended March 31, 2026 2025

Adjusted net income $32.7 $28.3

Add: Interest on Exchangeable Notes net of tax - -

Add (less): Mark-to-market adjustments (1) - (29.2)

Add: Stock-based compensation 3.9 5.7

Add: Debt refinance costs and loss on debt extinguishment 106.8 -

Adjusted net income used in computing net income per

share, diluted

Common shares outstanding used in computing earnings per share, diluted:

$32.7 $28.3

269,993,148 102,039,611

Add: Husky transactions costs 92.9 -

Add: Loss on remeasurement of TRA liability 21.9 -

Add: Foreign exchange (gain) loss (2.3) -

Add: Severance costs 0.6 -

Add: Loss on disposal of assets 0.6 -

Add: Spin-off costs - 5.0

Adjusted net income before tax

$43.0

$29.9

Income tax expense (2)

10.3

1.6

Add: Purchase accounting amortization and depreciation 46.8

Adjusted net income $32.7 $28.3

Common shares outstanding used in computing net income per share, basic:

Class A common shares 269,993,148 102,039,611

Warrants (3) - 9,878,000

Equity awards 4,391,631 3,533,000

Total shares outstanding used in computing adjusted

earnings per share - diluted

274,384,779

115,450,611

Adjusted net income per share - diluted $0.12 $0.25

Adjusted Free Cash Flow

Pro forma Non-GAAP cash from operations (4) ($153.8)

Pro forma Non-GAAP capital expenditures (including software) (4) (13.2)

Transaction and debt refinancing expenses paid (4) 196.0

Pro Forma Adjusted Free Cash Flow $29.0

Adjusted net income per share - basic $0.12 $0.28

Note: Non-GAAP EPS does not pro forma for period preceding the acquisition of Husky (January 1-11, 2026).

  1. Includes the changes in fair value of warrant liability, make-whole provision of the previously outstanding exchangeable notes of GPGI Holdings (f/k/a CompoSecure Holdings, L.L.C.) (the "Exchangeable Notes") and earnout consideration liability.

  2. Reflects current and deferred income tax expenses. For the three months ended March 31, 2026, it was calculated by applying the Company's assumed effective tax rate. 20

  3. Applies treasury stock method with assumed exercise at average market price. No warrants were outstanding as of the three months ended March 31, 2026.

  4. Reference 1Q26 Statement of Operations on page 16 and 1Q26 Statement of Cash Flows on page 18 for corresponding metrics.

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