Advantage Solutions Q2 2025: Unraveling Contradictions on Staffing, Consumer Trends, and Strategic Growth

Staffing and labor challenges, consumer purchasing behavior and retailer inventory, impact of tariffs and market uncertainty, wage inflation and pricing strategy, strategic priorities and business growth are the key contradictions discussed in Advantage Solutions' latest 2025Q2 earnings call.



Revenue and Earnings Trends:
- Advantage Solutions reported revenue of $736 million and adjusted EBITDA of $86 million for Q2 2025, down 2% and 4% respectively from the prior year.
- The decline was due to a client loss in branded services, ongoing market uncertainty, and investments in transformation initiatives.

Staffing and Operational Improvements:
- The company resolved a first-quarter staffing shortfall, enabling both experiential and retailer services teams to increase execution volume.
- Staffing levels returned to desired levels for the second half of the year, contributing to year-over-year adjusted EBITDA growth across both segments.

Branded Services Challenges:
- Branded services revenue was $257 million, down 10% year-on-year, with adjusted EBITDA down 21%.
- The decline was primarily due to in-sourcing of select services, reductions in order volume, and a pullback in sales and marketing investments, alongside a client loss from the previous year.

Experiential Services Recovery:
- Experiential services reported $249 million in revenue and $26 million in adjusted EBITDA, up 6% and 14% year-on-year.
- Recovery was attributed to better staffing levels, resulting in increased event execution rates and improved margins.

Retailer Services Performance:
- Retailer services saw revenues of $231 million and adjusted EBITDA growth of 8% to $26 million.
- The growth was driven by improved staffing levels, increased merchandising activity, and better project activity management.