RHLD Filings — Resolute Holdings Management, Inc. - FilingSpy
RHLD
Resolute Holdings Management, Inc.
A management platform that earns long-term fees overseeing two industrial leaders: CompoSecure, the maker of metal payment cards (it created the world's first, for American Express in 2003), and Husky, a top global manufacturer of injection molding equipment for food, beverage, and medical packaging. Resolute was spun off from CompoSecure in 2025. Fun fact: Husky, founded in 1953 in Canada, began by building a snowmobile called the 'Huskymobile' before pivoting to molding machines.
Husky acquisition triples revenue to $473.2M but lower margins and acquisition costs push operating income down 13%.
The Husky acquisition reshaped the company, adding $339.6M in quarterly . Consolidated revenue rose 296% to $473.2M while contracted 22.7 points to 34.9%, as Husky's lower-margin business mixed in and fell 13% to $35.2M. The company now carries $2.15B in and faces a higher interest-rate burden, leaving earnings power dependent on margin improvement across the combined businesses.
Key takeaways
rose 296% to $473.2M, driven by $339.6M from the newly acquired Husky and 12% at CompoSecure.
contracted 22.7 points to 34.9%, as Husky's lower-margin profile and diluted the 57.5% margin reported a year ago.
fell 13% to $35.2M, as selling, general and administrative expenses rose 360% to $129.8M with the inclusion of Husky's cost structure.
Section summaries
Management's Discussion and Analysis
Net sales surged 296% to $473.2M in Q2 FY2026 driven by the Husky acquisition, while operating income fell 13% to $35.2M on higher acquisition-related costs.
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Consolidated rose 296% to $473.2M, driven by the addition of $339.6M from the newly acquired Husky and 12% at CompoSecure.
A $62.3M gain in other income, primarily from a , partially offset higher and moved net loss to $12.4M from a $0.6M loss a year ago.
was $93.6M for the quarter, up 91% , while rose 69% to $81.3M.
Total debt principal reached $2.205B at quarter-end, with $1.305B in variable-rate debt exposing the company to a $13.1M annual swing per 100-basis-point rate move.
What changed
The Q1 FY2026 watch item on Adjusted sustainability: Q2 Segment Adjusted EBITDA was not separately disclosed in the provided material, but consolidated of $35.2M compares to a $5.8M loss in Q1, indicating a return to profitability at the operating level after the debt-extinguishment-driven Q1 loss.
The Q1 FY2026 watch item on re-hedging variable-rate debt: as of June 30, 2026, $1.305B of debt remains variable-rate with no new hedging disclosed, leaving the full exposure flagged in Q1 unchanged.
The Q1 FY2026 watch item on Husky's trajectory: consolidated gross margin fell further to 34.9% from 38.2% in Q1, suggesting Husky's margin profile continues to weigh on the blended result.
The Q1 FY2026 watch item on whether debt extinguishment costs were non-recurring: Q2 recorded a $62.3M gain on debt extinguishment, confirming that Q1's $106.8M loss was followed by a measurement-period adjustment rather than additional refinancing charges.
What to watch
Whether consolidated stabilizes or improves from 34.9% as the Resolute Operating System is deployed at Husky, indicating the trajectory of blended profitability.
Any move to re-hedge the $1.305B in variable-rate debt, given that a 100-basis-point rate increase would add approximately $13.1M in annual .
Whether CompoSecure's 12% organic growth is sustained in Q3, or whether the rate decelerates from the 26% reported in Q1.
The trajectory of selling, general and administrative expenses now that Husky's cost structure is fully included for a second quarter, to assess whether the $129.8M quarterly run-rate is the new baseline.
contracted to 35% from 58% due to Husky's lower-margin profile and higher purchase-accounting , partially offset by improved operational execution at CompoSecure.
Selling, general and administrative expenses increased 360% to $129.8M, primarily reflecting the inclusion of Husky's cost structure.
Other income swung to a $62.3M gain from a $2.0M expense, largely due to a measurement-period gain on debt extinguishment, partially offset by higher from acquisition financing.
Cash used in operations was $23.2M for the six-month period versus $67.4M provided a year ago, driven by higher interest payments and transaction costs including debt breakage fees.
Total debt principal outstanding reached $2.205B at June 30, 2026, following the refinancing of Husky's assumed debt into a new $1.2B term loan and $900M senior secured notes.
Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk In addition to existing cash balances, short-term investments, and cash provided by operating activities, the Company uses variable rate debt to finance its operations. The Company is exposed to interest rate risk on these debt obligations. As of June 30, 2026…
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Interest Rate Risk
In addition to existing cash balances, short-term investments, and cash provided by operating activities, the Company uses variable rate debt to finance its operations. The Company is exposed to interest rate risk on these debt obligations. As of June 30, 2026, the Company had $90.0 of debt outstanding under the Resolute Credit Facility and $1,215.0 in debt outstanding under the GPGI Holdings Credit Facility, all of which was variable rate debt.
The Company performed a sensitivity analysis based on the principal amount of debt outstanding as of June 30, 2026. In this sensitivity analysis, the change in interest rates is assumed to be applicable for an entire year. An increase or decrease of 100 basis points in the applicable interest rate would cause an increase or decrease in interest expense on debt outstanding of approximately $13.1 on an annual basis.
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Foreign Exchange Risk
The Company uses foreign currency forward contracts as cash flow hedges of forecasted Canadian-dollar-denominated expenditures. As of June 30, 2026, the notional amount of foreign currency forward contracts related to Canadian dollar hedges for the years 2026, 2027, and 2028 were $130.4, $160.0, and $32.0, respectively, which were hedged at an average rate of 1.365, 1.356, and 1.349 Canadian dollar per U.S. dollar, respectively. A 1% change in the value of the Canadian dollar against the U.S. dollar would increase or decrease other comprehensive income (loss) by $2.2.
The information required by this item is set forth in the “Legal Proceedings” section in Note 19 “Commitments and Contingencies” of the Company’s unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q, which is incorporated…
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The information required by this item is set forth in the “Legal Proceedings” section in Note 19 “Commitments and Contingencies” of the Company’s unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q, which is incorporated by reference herein.
Geopolitical conflict and economic volatility are materially pressuring demand, supply chains, and input costs.
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The February 2026 U.S.–Israel–Iran conflict is explicitly cited as a new driver of energy-market volatility, raw-material price increases, and supply-chain disruption.
Trade policies, inflation, and higher input costs continue to reduce product demand and cause shipping and payment delays, negatively impacting results.
Ongoing Russia–Ukraine and Middle East conflicts create persistent uncertainty in global demand, order timing, and joint-venture operations.
Adverse economic conditions are limiting customers’ and suppliers’ access to financing, which may further decrease sales volume.
The Company warns that failure to manage these interrelated risks could materially harm financial condition, results of operations, and cash flows.