Advantage Solutions Inc. (NASDAQ: ADV) has reported its financial results for the first quarter of 2025, showing a decline in revenues to $822 million compared to $861 million in the same period last year. The net loss increased to $56 million from $50 million, while adjusted EBITDA declined to $58 million from $70.6 million, representing an 18% decrease.
The company attributed the majority of the financial impact to intentional client exits and anticipated transformation spending. Labor shortages in some regional areas and a decline in retail inventory also contributed to lower order volumes.
Segment-wise, branded services experienced an 11.9% decline in revenues, while experiential services saw a 2.2% increase, and retailer services reported a 3.1% decrease.
Operating income for branded services increased by 30.7%, while experiential services saw a 3.8% decrease, and retailer services reported a 200.4% increase. Adjusted EBITDA for branded services declined by 18.6%, experiential services by 27.7%, and retailer services by 7.4%.
The company remains focused on disciplined capital allocation with voluntary debt repurchases and share buybacks of approximately $20 million and $1 million, respectively.
Looking ahead, Advantage Solutions revised its guidance, with revenues expected to be down low single digits to flat, adjusted EBITDA down low single digits to flat, and adjusted unlevered free cash flow conversion projected to be greater than 50% of adjusted EBITDA.
Advantage Solutions Inc. is a leading omnichannel retail solutions agency in North America, providing data* and technology-powered services to help brands and retailers generate demand and get products into the hands of consumers, wherever they shop. 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. For more information, read the company's full 8-K submission here.
