Advantage Solutions (NASDAQ:ADV) Announces Quarterly Earnings Results, Misses Expectations By $2.30 EPS

Key Points

• Advantage reported a steep EPS miss of ($4.12) versus consensus ($1.82), missing by $2.30, and posted a negative return on equity (34.48%) and negative net margin (6.43%).
• Underlying results were mixed: total net revenues were $723M (+4% YoY) and adjusted EBITDA was $68M (+~16% YoY), with Experiential Services driving strong gains (+22% revenue, +116% EBITDA) while Branded Services showed declines (‑12% revenue, ‑25% EBITDA).
• The company emphasized cash generation and deleveraging—$74M adjusted unlevered FCF, roughly $130M of debt paid down, $144M cash and net leverage of 4.2x (target ~3.5x)—and the stock nevertheless jumped about 14.6% to $43.31 after the release.

Advantage Solutions (NASDAQ:ADV - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported ($4.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.82) by ($2.30), Zacks reports. Advantage Solutions had a negative return on equity of 34.48% and a negative net margin of 6.43%.

Here are the key takeaways from Advantage Solutions' conference call:

• Total company net revenues were $723 million (+4% YoY, +4.7% pro forma) and adjusted EBITDA was $68 million (up ~16% YoY, ~22% pro forma), with management saying results beat internal expectations.
• Experiential Services delivered a standout quarter—$270 million revenue (+22%) and $26 million adjusted EBITDA (+116%)—driven by higher event volumes, better labor alignment and price optimization, with management forecasting continued strong revenue growth.
• Branded Services remains under pressure with $226 million revenue (‑12%) and $21 million adjusted EBITDA (‑25%), impacted by divestitures, client turnover and unfavorable mix; management is prioritizing retention and cross‑sell to stabilize the business.
• Cash generation and deleveraging were highlighted—$74 million adjusted unlevered free cash flow in the quarter, roughly $130 million of debt paid down, $144 million cash balance, and net leverage of 4.2x with a target to reach ~3.5x or below.
• Management emphasized investments in SAP/Oracle/Workday, a centralized labor model and AI/data initiatives to boost productivity and cash flow, but stated most material efficiency benefits are expected to be realized in 2027 as implementations mature.

Advantage Solutions Trading Up 14.6%

NASDAQ ADV traded up $5.53 during trading on Wednesday, hitting $43.31. The company had a trading volume of 88,217 shares, compared to its average volume of 53,609. The company has a current ratio of 2.25, a quick ratio of 2.25 and a debt-to-equity ratio of 3.00. Advantage Solutions has a one year low of $12.23 and a one year high of $53.63. The company has a market cap of $567.31 million, a price-to-earnings ratio of -2.47 and a beta of 2.21. The company's fifty day moving average is $23.06 and its 200-day moving average is $23.86.

Hedge Funds Weigh In On Advantage Solutions

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geode Capital Management LLC lifted its holdings in Advantage Solutions by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 2,763,633 shares of the company's stock worth $2,432,000 after buying an additional 21,509 shares during the period. State Street Corp grew its holdings in shares of Advantage Solutions by 4.2% during the 4th quarter. State Street Corp now owns 2,180,442 shares of the company's stock worth $1,919,000 after acquiring an additional 88,129 shares during the period. Inspire Investing LLC grew its holdings in shares of Advantage Solutions by 87.3% during the 4th quarter. Inspire Investing LLC now owns 554,271 shares of the company's stock worth $488,000 after acquiring an additional 258,379 shares during the period. Bank of America Corp DE raised its position in shares of Advantage Solutions by 301.6% in the 3rd quarter. Bank of America Corp DE now owns 287,841 shares of the company's stock worth $440,000 after acquiring an additional 216,165 shares in the last quarter. Finally, Verition Fund Management LLC bought a new position in shares of Advantage Solutions in the 3rd quarter worth approximately $153,000. Hedge funds and other institutional investors own 49.82% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ADV. Wall Street Zen cut shares of Advantage Solutions from a "strong-buy" rating to a "hold" rating in a report on Saturday, March 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of Advantage Solutions in a research report on Wednesday, January 21st. Canaccord Genuity Group lowered their price objective on shares of Advantage Solutions from $62.50 to $37.50 and set a "buy" rating for the company in a research note on Wednesday, March 4th. Morgan Stanley set a $18.75 target price on Advantage Solutions in a research note on Tuesday, March 3rd. Finally, Zacks Research raised Advantage Solutions from a "strong sell" rating to a "hold" rating in a research report on Monday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Advantage Solutions currently has a consensus rating of "Hold" and an average price target of $28.13.

About Advantage Solutions

Advantage Solutions is a leading sales and marketing agency that provides outsourced solutions to consumer packaged goods companies. The firm's offerings include field sales execution, retail merchandising, in-store and shopper marketing, e-commerce activation and data-driven analytics. By deploying dedicated sales teams alongside proprietary technology, Advantage Solutions helps brands optimize shelf placement, ensure compliance with promotional programs and strengthen consumer engagement.

The company's service portfolio spans field sales and marketing, retail execution, brand ambassador programs, digital and experiential promotions, and shopper insights.

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