Advantage Solutions Q1 2025 – Revenues and EBITDA Decline

By Ahmed Jameison • Monday, May 12 10:17 • Permanent Link

Advantage Solutions Inc. (NASDAQ: ADV) reported its financial results for the first quarter of 2025, showing a decline in revenues and adjusted EBITDA compared to the same period last year. Revenues for the first quarter were $822 million, down 4.6% from $861 million in the first quarter of 2024. The net loss for the quarter was $56 million, compared to a net loss of $50 million in the same period last year.

Segment-wise, Branded Services saw a decline in revenues by 11.9% to $289.8 million, while Experiential Services experienced a 2.2% increase in revenues to $314 million. Retailer Services also saw a decrease in revenues by 3.1% to $217.9 million.

The company's adjusted EBITDA declined by 17.6% to $58.2 million, with an adjusted EBITDA margin of 7.1%, down from 8.2% in the first quarter of 2024. The company attributed the decline to intentional client exits, anticipated transformation spending, labor shortages in some regional areas, and a decline in retail inventory leading to lower order volumes.

Advantage Solutions also highlighted its disciplined capital allocation with voluntary debt repurchases and share buybacks of approximately $20 million and $1 million, respectively.

The company provided an outlook for the fiscal year 2025, revising its guidance to a low single-digit decline to flat in revenues and adjusted EBITDA, compared to the previous outlook of low single-digit growth. The adjusted unlevered free cash flow was negative $7 million, with a net leverage ratio of 4.4x.

CEO Dave Peacock acknowledged the challenging operating environment but expressed confidence in the company's transformation initiatives and new business pipeline, which are expected to drive efficiency, growth, and cash flow in 2026 and beyond.

Advantage Solutions Inc. is a leading omnichannel retail solutions agency in North America, providing services to consumer-packaged goods brands and retailers. As a result of these announcements, the company's shares have moved 6.52% on the market, and are now trading at a price of $1.47. If you want to know more, read the company's complete 8-K report here.

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