Advantage Solutions Forecasts Flat FY25 Revenue, Adjusted EBITDA

Advantage Solutions expects FY25 revenue to decline or remain flat, while adjusted EBITDA is also expected to be down or flat. The company has not provided further details on its financial outlook.

Advantage Solutions Inc. (AS) reported its second-quarter 2025 earnings, revealing a significant earnings per share (EPS) miss but a revenue beat. The company posted an EPS of -$0.09, falling short of the $0.12 forecast, marking a surprise of -175% [2]. Despite this, revenues came in at $873.71 million, surpassing the expected $811.72 million by 7.64%, indicating robust sales performance. The stock reacted positively, climbing 20.9% to $1.36 in pre-market trading, suggesting investor optimism driven by factors beyond immediate earnings [2].

Advantage Solutions faced a challenging quarter with a 24% year-over-year decline in revenues, amounting to $736 million. However, the company managed to exceed revenue forecasts, highlighting its strong sales capabilities. The firm’s strategic focus on branded, experiential, and retailer services, despite facing individual client challenges, may have contributed to this performance [2].

Financial Highlights:
- Revenue: $873.71 million, up from the forecasted $811.72 million.
- EPS: -$0.09, compared to the $0.12 forecast, a significant miss.
- Adjusted EBITDA: $86 million, down 24% YoY.
- Cash on hand: $103 million, with a net leverage ratio of 4.6x.

The company has not provided further details on its financial outlook for the fiscal year 2025 (FY25), indicating that revenue is expected to decline or remain flat, while adjusted EBITDA is also expected to be down or flat [2].

Market Reaction:
Despite the EPS miss, Advantage Solutions’ stock surged 20.9% to $1.36 in pre-market trading. This positive reaction may be attributed to the revenue beat and optimistic future guidance, which suggests that investors are focusing on the company’s long-term potential rather than immediate earnings performance [2].

References:
[1] https://www.nasdaq.com/articles/gibraltar-q2-earnings-sales-lag-estimates-both-rise-y-y-stock-down
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-advantage-solutions-beats-revenue-forecast-despite-eps-miss-in-q2-2025-93CH-4177782