CompoSecure, Inc.

Good day everyone and welcome to the Compass Secure second quarter 2025 earnings call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question and answer session. To participate you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question simply press star 1-1 again. Please note this event is being recorded. Now it's my pleasure to turn the call over to the General Counsel Steve Federer.

Good afternoon and thank you for joining us to review Compass Secure second quarter 2025 financial results. With me on the call from Compass Secure are Dave Cody, Executive Chairman, John Wilk, Chief Executive Officer, and Tim Fitzsimmons, Chief Financial Officer. They will begin with prepared remarks and then we will open the call for Q&A. During the call we will make statements relating to our business that may be considered forward-looking, including statements concerning our plans to execute on our growth strategy, customer demand, our ability to maintain existing and acquire new customers, implementation of the Compass Secure operating system, and our guidance for the balance of 2025, as well as other statements regarding our plans and prospects. Forward-looking statements may often be identified with words such as we expect, we anticipate, or upcoming. These statements reflect our views only as of today and should not be considered our views as of any subsequent date. We undertake no obligation to update or revise these forward-looking statements. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from our expectations. For a discussion of these risks and other important factors that could affect our results, please refer to the information in our 10-K, 10-Qs, and other reports filed with the SEC available on the Investors Relations section of our website and on the SEC's website at sec.gov. Please note that effective as of February 28, 2025, the date of the spin-off of Resolute Holdings Management, Inc., and as a result of the management agreement between Resolute Holdings Management, Inc., and the company's wholly-owned subsidiary, Compass Secure Holdings, the results of operations of Compass Secure Holdings and the operating companies which are its subsidiaries are not consolidated in the financial statements of Compass Secure, Inc., included in our quarterly report on Form 10-Q and the company earnings presentation, and instead are accounted for by Compass Secure under the equity method of accounting. In the earnings release we issued earlier today and in the discussion on today's call, we also present non-GAAP results to help investors reconcile and better understand our operating performance. The company believes these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends impacting the company's financial condition and results of operations. These non-GAAP financial measures should not be considered as an alternative to net income 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. A reconciliation of GAAP to non-GAAP measures is available in our press release and earnings presentation available in the IR section of our website. Thank you and with that said let me turn the call over to Executive Chairman Dave Cody.

...of our investment in Compass Secure and I want to step back and assess the opportunity compared to what we saw at the time of our investment. For example, Tom and I were confident that Compass Secure had a great position in a good industry. This has proven to be true. We are far and away the leader in metal cards globally but importantly metal cards in total represent less than 1% penetration of the payment card market. This is the case even though the financial and brand benefits our metal cards offer to an issuer are huge and proven with the most recognizable card programs in the world. We believe the upside for us and our customers is significant and we believe the opportunity for metal to take a larger share of the total market is very real. I can confirm we are seeing early results from our focus on Compos sales efforts and are confident in the continued investments we're making to capitalize on the very large opportunity we see. We're also very encouraged with the early results from the implementation of the Compo operating system or COS. We believe at the time of our investment that opportunities existed for step changes in performance and we're beginning to see those come to fruition. We're making capital investments across the enterprise that we believe will drive meaningful results over time. All of this is intended to enable Compos Secure to build and sustain a culture of excellence that delivers for our customers, employees, and investors in a very real way over time. The high performance culture is the glue that allows COS to become ingrained throughout the enterprise and it's beginning to happen. This will take time but proven before this approach to building a business really work. As I've said, I have even greater confidence today about what is possible for Compos Secure than when we first invested. And with that, I'll turn the call over to John.