Mixed Results for Advantage Solutions Amid Strategic Focus and Future Growth

Advantage Solutions reported mixed Q2 results with growth in experiential and retailer services, but a decline in branded services. Experiential services generated $249mln in revenues and $26mln in adjusted EBITDA, a 6% and 14% YoY increase, respectively. The company expects improved cash generation in H2 and a strong demand for private brands, supporting its Daymon business. Despite challenges, Advantage Solutions is progressing with strategic initiatives, including technology investments, and aims to complete its data architecture by 2026.

Advantage Solutions Inc. (NASDAQ: ADV), a leading business solutions provider to consumer goods manufacturers and retailers, reported mixed financial results for the second quarter of 2025. The company's revenues for the three months ended June 30, 2025, were $874 million, a marginal increase of 0.1% compared to the same period last year. The company reported a net loss of $30 million, an improvement of 73.1% from the $113 million net loss in the same period last year. Adjusted EBITDA declined by 3.9% to $86 million.

The company's strong sequential improvement was driven by solid progress in resolving the staffing shortfall from the first quarter and strategic IT and capability investments. Experiential and retailer services generated $249 million in revenues and $26 million in adjusted EBITDA, a 6% and 14% year-over-year (YoY) increase, respectively. However, branded services saw a decline in revenues and adjusted EBITDA, reflecting the company's strategic shift towards experiential and retailer services.

Advantage Solutions expects improved cash generation in the second half of the year and a strong demand for private brands, supporting its Daymon business. The company aims to complete its data architecture by 2026, further enhancing its services to clients. Despite challenges, the company is progressing with strategic initiatives, including technology investments, and reaffirms its 2025 guidance.

The company's CEO, Dave Peacock, expressed satisfaction with the progress made in enhancing the company's position as a trusted partner to drive client sales and optimize return on investment. He thanked the company's teammates for their continued commitment to serving clients navigating ongoing market uncertainty.

Advantage Solutions maintains a strong balance sheet with ample liquidity, supported by $103 million in cash and an incremental $23 million received on July 31st related to the first of two deferred purchase price installments for Jun Group. The company's 2025 outlook includes revenues down by a low single digit to flat, adjusted EBITDA down by a low single digit to flat, and adjusted unlevered free cash flow conversion exceeding 50% of adjusted EBITDA.

For more information, visit YourADV.com.

References:
[1] https://www.globenewswire.com/news-release/2025/08/07/3129078/0/en/Advantage-Solutions-Reports-Second-Quarter-2025-Results.html