- **B2B Momentum**: 200bps YoY improvement in B2B revenue, driven by CoreTrust and hospitality expansion (1,000+ hotels onboarded). 
- **Cash Flow Surge**: $13M Q2 free cash flow vs. $5M last year; guided to $115M+ for 2025. 
- **Retail Recovery**: Office Depot comparable store sales improved 200bps YoY, with strong July back-to-school performance. 
- **Hospitality Breakthrough**: Hospitality sales growing month-over-month, with traditional product categories seeing low double-digit growth from new customers.

**【CEO Summary Section】**
- **Strategic Progress**: Emphasized growth in B2B through new business wins (e.g., CoreTrust partnership with 3,500+ enterprise members) and expansion into hospitality, with 1,000+ hotel properties onboarded. 
- **Financial Highlights**: Adjusted EBITDA of $47M and $13M in free cash flow (despite typical Q2 inventory build). 
- **Retail Turnaround**: Office Depot comparable store sales improved 200bps YoY, driven by targeted promotions and higher order volumes. 
- **Cash Focus**: Guided to exceed $150M in annual free cash flow, up from prior expectations.

**【CFO Financial Commentary】**
- **Topline**: Q2 revenue $1.6B (-8% YoY), with B2B down 6% but improving 200bps YoY. Veyer's third-party revenue grew 90% YoY to $19M. 
- **Profitability**: Adjusted EBITDA $47M (-17% YoY), impacted by restructuring costs. Free cash flow $13M vs. $5M last year. 
- **Balance Sheet**: Total liquidity $658M, debt $245M. Paid down $35M in debt YTD. 
- **Guidance**: $115M+ free cash flow for 2025, driven by inventory management and cost optimization.

**【Q&A Highlights】**
- **Shareholder Value**: CEO reaffirmed focus on executing strategy vs. exploring alternatives, citing strong cash flow and balance sheet. 
- **Tariff Impact**: 57% of inventory MAP-priced or tariff-exempt, mitigating margin pressure. 
- **Hospitality Growth**: 1,000+ hotel properties onboarded, with low double-digit sales growth in traditional categories from hospitality customers. 
- **Back-to-School Outlook**: Strong July performance in retail, with early flight week momentum despite industry forecasts of mid-single-digit declines.

The ODP Corporation (ODP) Q2 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ODP(Delisted)

ODP fundamentals

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