CompoSecure (CMPO) shares fell around 6% in after-hours trading on Wednesday, March 5th, after the payment card and metal card maker reported fourth quarter earnings that missed Wall Street expectations amid higher costs and expenses.

For the period ended December 31, 2024, CMPO reported revenue of $100.9 million, up 1% year-over-year but below the consensus estimate of $102.4 million. Adjusted earnings per share came in at $0.20, decreasing from $0.24 a year ago and missing the $0.22 analyst forecast.

The earnings miss was driven by a compression in gross margins to 52.1% from 52.9% a year earlier, as increased costs of new card designs and production, along with inflationary pressures on wages and materials, weighed on profitability. Selling, general and administrative expenses also rose 65% to $36.9 million.

For full year 2024, however, CompoSecure posted an 8% increase in net sales to $420.6 million, reflecting continued domestic growth of 7% and international growth of 11%. Adjusted EBITDA rose 4% to $151.4 million, driven by contributions from its Arculus authentication business.

Looking ahead to 2025, CompoSecure expects mid-single digit growth for both net sales and adjusted EBITDA as it accelerates adoption of its CompoSecure Operating System and builds sales momentum through the year. The company also highlighted key 2024 achievements including reducing net debt by 60% to $120 million and completing the spin-off of Resolute Holdings.