Mon, May 12, 8:19 PM (35 days ago)
**Resolute Holdings Management, Inc. (RHLD) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $103.89 million, slightly down from $104.01 million in Q1 2024. - **Gross Profit:** $54.55 million, a slight decrease from $55.21 million in Q1 2024. - **Operating Expenses:** $28.93 million, up 27% from $22.77 million in Q1 2024. - **Net Income:** $22.62 million, down 14% from $26.39 million in Q1 2024. - **Cash Flow from Operations:** $18.37 million, down from $35.67 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 53%, consistent with Q1 2024. - **Operating Margin:** 26%, down from 31% in Q1 2024. **Cash Flow and Earnings Changes:** - **Operating Cash Flow:** Decreased by $17.3 million due to higher expenses and changes in receivables and accrued expenses. - **Investing Cash Flow:** $1.16 million used, primarily for capital expenditures and software development. - **Financing Cash Flow:** $17.78 million used, mainly for tax payments and debt repayments. **Quarterly Performance Discussion:** - **Domestic Sales:** Down 4% due to lower customer acquisition. - **International Sales:** Up 28% due to increased sales across the customer base. - **Operating Expenses:** Increased due to hiring and equity-based compensation at Resolute Holdings. **Trends and Uncertainties:** - **Economic Conditions:** Global and digital asset marketplace trends impact CompoSecure Holdings. - **Management Fee:** Resolute Holdings relies on the CompoSecure Management Fee for liquidity. - **Debt and Liquidity:** Resolute Holdings has a $5 million revolving credit facility, while CompoSecure Holdings has a $130 million revolving credit facility and $195 million in term loans. **Future Operations Impact:** - **Liquidity:** Resolute Holdings expects sufficient liquidity from operations and credit facilities. - **Growth:** Plans to drive inorganic growth through M&A and capital markets expertise. - **Risk Factors:** Includes market cycles, economic conditions, and regulatory requirements.