Office Depot Parent ODP Reports Q2 Earnings, Shrinks Retail Footprint, and Expands B2B Offerings

ODP Corporation reported Q2 results with adjusted EPS of 51 cents, beating the analyst consensus estimate of 36 cents. Sales of $1.59 billion (down 8% YoY) were in line with the Street view. The company expects continued improvement in H2 2025, driven by top-line gains in ODP Business Solutions and robust Office Depot results, to generate over $115 million in adjusted free cash flow for the year.

ODP Corporation (NASDAQ: ODP) has released its Q2 2025 earnings report, highlighting strong performance despite a challenging market environment. The company reported adjusted EPS of 51 cents, surpassing the analyst consensus estimate of 36 cents [1]. Revenue of $1.59 billion, a decrease of 8% year-over-year, was in line with market expectations [1].

The company's operating cash flow stood at $16 million, while adjusted EBITDA and adjusted free cash flow were $47 million and $13 million, respectively [1]. ODP Corporation also provided guidance for the second half of 2025, expecting continued improvement in performance driven by top-line gains in ODP Business Solutions and robust results from Office Depot. The company anticipates generating over $115 million in adjusted free cash flow for the full year 2025 [1].

Key highlights from the earnings report include:

- Improved EPS: Adjusted EPS of 51 cents exceeded analyst expectations by 42%.
- Revenue: Revenue of $1.59 billion was in line with market expectations despite a 7.6% year-over-year decline.
- Operating Cash Flow: The company reported a strong operating cash flow of $16 million.
- Adjusted EBITDA: Adjusted EBITDA of $47 million indicates robust operational performance.
- Free Cash Flow: Adjusted free cash flow of $13 million underscores the company's focus on cash generation.

ODP Corporation's CEO emphasized the company's commitment to long-term growth initiatives and working capital management. The company expects to incur costs in the range of $185 million to $230 million over the multi-year life of the plan, which is anticipated to generate approximately $380 million in EBITDA improvement and over $1.3 billion in total value [1].

The company's stock has experienced a significant increase in recent months, reflecting investor confidence in its strategic initiatives and financial performance. ODP Corporation's focus on expanding its renewable energy capacity and digital grid infrastructure positions it well for future growth.

References:
[1] https://seekingalpha.com/news/4479615-the-odp-corporation-non-gaap-eps-of-051-beats-by-015-revenue-of-159b-in-line