Strong profitability growth in Experiential and Retailer Services

Advancing transformation initiatives to accelerate AI enablement and improved business insights

Expecting improved financial performance and cash generation in the second half of the year

Reaffirming 2025 guidance

ST. LOUIS, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ:ADV) ("Advantage," "Advantage Solutions," the "Company," "we," or "our"), a leading business solutions provider to consumer goods manufacturers and retailers, today reported financial results for the three months ended June 30, 2025.

Unless otherwise noted, results presented in this release are from continuing operations, and comparisons are on a prior year basis. Revenues for the three months were $874 million compared with $873 million, and net loss was $30 million compared to a net loss of $113 million.

Q2'25 Financial Highlights
►		Revenues were $874 million, in line with the prior year. Adjusted EBITDA declined 4% to $86 million.
►		Strong sequential improvement driven by solid progress in resolving the staffing shortfall from the first quarter, with continued strategic IT and capability investments to enhance Advantage's services to clients.
►		Maintaining a strong balance sheet with ample liquidity supported by $103 million in cash and an incremental $23M received on July 31^st related to the first of two deferred purchase price installments for Jun Group.

"As we advance our transformation initiatives, I am pleased with the progress we are making to enhance our position as a trusted partner to drive client sales for less, optimizing their return on investment," said Advantage CEO Dave Peacock. "We largely resolved the staffing shortfall from the first quarter, resulting in increased execution for improved sequential performance in the second quarter. We are reaffirming our 2025 guidance, taking into account current market conditions alongside our investment and operational execution plans, with the expectation of delivering stronger performance in the second half of the year. I want to thank our teammates for their continued commitment to serving our clients who are navigating the ongoing market uncertainty."

Consolidated Financial Summary from Continuing Operations
(amounts in thousands)	Three Months Ended June 30,						Change (Reported)
	2025			2024			$			%
Total Revenues	$	873,707		$	873,357		$	350		0.0	%
Total Net Loss	$	(30,440	)	$	(113,016	)	$	82,576		(73.1	%)
Total Adjusted EBITDA	$	86,412		$	89,898		$	(3,486	)	(3.9	%)
Adjusted EBITDA Margin		9.9	%		10.3	%

		Six Months Ended June 30,					Change (Reported)
	2025			2024			$			%
Total Revenues	$	1,695,499		$	1,734,769		$	(39,270	)	(2.3	%)
Total Net Loss	$	(86,570	)	$	(163,149	)	$	76,579		NMF
Total Adjusted EBITDA	$	144,593		$	160,539		$	(15,946	)	(9.9	%)
Adjusted EBITDA Margin		8.5	%		9.3	%

Reaffirming Fiscal Year 2025 Outlook

(Amounts in Millions)

Revenues	Down Low Single Digits to Flat
Adjusted EBITDA	Down Low Single Digits to Flat
Adjusted Unlevered Free Cash Flow Conversion⁽¹⁾	>50% of Adjusted EBITDA
Net Interest Expense	$140 to $150
Capex	$50 to $60 (prior guidance was $65 to $75)

_{2025 revenue outlook excludes pass-through costs. 2025 guidance compares to 2024 on a continuing operations basis.}

The complete earnings release can be found here.

Conference Call Details
Date/Time	August 7, 2025, 8:30 am EDT
Dial-in (10 minutes before the call)	800-715-9871 within the United States or +1-646-307-1963 outside the United States Conference ID: 5720569
Webcast	Available at: ADV 2Q 2025 Earnings Webcast
Replay	800-770-2030 within the United States or +1-609-800-9909 outside the United States Playback ID: 5720569#

Investor Contact: Ruben Mella, CFA (investorrelations@youradv.com)

Media Contact: Jeff Levine (press@youradv.com)

About Advantage Solutions

Advantage Solutions is the leading omnichannel retail solutions agency in North America, uniquely positioned at the intersection of consumer-packaged goods (CPG) brands and retailers. With its data- and technology-powered services, Advantage leverages its unparalleled insights, expertise and scale to help brands and retailers of all sizes generate demand and get products into the hands of consumers, wherever they shop. Whether it's creating meaningful moments and experiences in-store and online, optimizing assortment and merchandising, or accelerating e-commerce and digital capabilities, Advantage is the trusted partner that keeps commerce and life moving. Advantage has offices throughout North America and strategic investments and owned operations in select international markets. For more information, please visit YourADV.com.

Included with this press release are the Company's consolidated and condensed financial statements as of and for the three and six months ended June 30, 2025. These financial statements should be read in conjunction with the information contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 7, 2025.

Forward-Looking Statements

Certain statements in this press release may be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding the expected future performance of Advantage's business and projected financial results. Forward-looking statements generally relate to future events or Advantage's future financial or operating performance. These forward-looking statements generally are identified by the words "may", "should", "expect", "intend", "will", "would", "could", "estimate", "anticipate", "believe", "predict", "confident", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Advantage and its management at the time of such statements, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, market-driven wage changes or changes to labor laws or wage or job classification regulations, including minimum wage; future potential pandemics or health epidemics; Advantage's ability to continue to generate significant operating cash flow; client procurement strategies and consolidation of Advantage's clients' industries creating pressure on the nature and pricing of its services; consumer goods manufacturers and retailers reviewing and changing their sales, retail, marketing and technology programs and relationships; Advantage's ability to successfully develop and maintain relevant omni-channel services for our clients in an evolving industry and to otherwise adapt to significant technological change; Advantage's ability to maintain proper and effective internal control over financial reporting in the future; Advantage's substantial indebtedness and our ability to refinance at favorable rates; and other risks and uncertainties set forth in the section titled "Risk Factors" in the Annual Report on Form 10-K filed by the Company with the SEC on March 7, 2025, and in its other filings made from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Advantage assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Financial Measures and Related Information

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP"), including Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Adjusted EBITDA by Segment, Adjusted Unlevered Free Cash Flow and Net Debt. These are not measures of financial performance calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing Advantage's financial results. Therefore, the measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP, and should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Advantage's presentation of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of historical non-GAAP measures to their most directly comparable GAAP counterparts are included below.

Advantage believes these non-GAAP measures provide useful information to management and investors regarding certain financial and business trends relating to Advantage's financial condition and results of operations. Advantage believes that the use of Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Adjusted EBITDA by Segment, Adjusted Unlevered Free Cash Flow, and Net Debt provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Advantage's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Additionally, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Advantage's non-GAAP measures may not be directly comparable to similarly titled measures of other companies.

Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations and Adjusted EBITDA by Segment are supplemental non-GAAP financial measures of our operating performance. Adjusted EBITDA from Continuing Operations and Adjusted EBITDA from Discontinued Operations mean net (loss) income before (i) interest expense (net), (ii) provision for (benefit from) income taxes, (iii) depreciation, (iv) amortization of intangible assets, (v) impairment of goodwill, (vi) changes in fair value of warrant liability, (vii) stock based compensation expense, (viii) equity-based compensation of Karman Topco L.P., (ix) fair value adjustments of contingent consideration related to acquisitions, (x) acquisition and divestiture related expenses, (xi) (gain) loss on divestitures, (xii) restructuring expenses, (xiii) reorganization expenses, (xiv) litigation expenses (recovery), (xv) COVID-19 benefits received, (xvi) costs associated with (recovery from) the Take 5 Matter, (xvii) EBITDA for economic interests in investments and (xviii) other adjustments that management believes are helpful in evaluating our operating performance.

Adjusted EBITDA by Segment means, with respect to each segment, operating income (loss) from continuing operations before (i) depreciation, (ii) amortization of intangible assets, (iii) impairment of goodwill, (iv) stock based compensation expense, (v) equity-based compensation of Karman Topco L.P., (vi) fair value adjustments of contingent consideration related to acquisitions, (vii) acquisition and divestiture related expenses, (viii) restructuring expenses, (ix) reorganization expenses, (x) litigation expenses (recovery), (xi) COVID-19 benefits received, (xii) costs associated with (recovery from) the Take 5 Matter, (xiii) EBITDA for economic interests in investments and (xiv) other adjustments that management believes are helpful in evaluating our operating performance, in each case, attributable to such segment.

Adjusted EBITDA Margin means Adjusted EBITDA from Continuing Operations divided by total revenues.

Adjusted Unlevered Free Cash Flow represents net cash provided by (used in) operating activities from continuing and discontinued operations less purchase of property and equipment as disclosed in the Statements of Cash Flows further adjusted by (i) cash payments for interest, (ii) cash received from interest rate derivatives, (iii) cash paid for income taxes; (iv) cash paid for acquisition and divestiture related expenses, (v) cash paid for restructuring expenses, (vi) cash paid for reorganization expenses, (vii) cash paid for contingent earnout payments included in operating cash flow, (viii) COVID-19 benefits received, (ix) cash paid for costs associated with (recovery from) the Take 5 Matter, (x) net effect of foreign currency fluctuations on cash, and (xi) other adjustments that management believes are helpful in evaluating our operating performance. Adjusted Unlevered Free Cash Flow as a percentage of Adjusted EBITDA means Adjusted Unlevered Free Cash Flow divided by Adjusted EBITDA from Continuing Operations and Adjusted EBITDA from Discontinued Operations.

Net Debt represents the sum of current portion of long-term debt and long-term debt, less cash and cash equivalents and debt issuance costs. With respect to Net Debt, cash and cash equivalents are subtracted from the GAAP measure, total debt, because they could be used to reduce the debt obligations. We present Net Debt because we believe this non-GAAP measure provides useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and to evaluate changes to the Company's capital structure and credit quality assessment.

Advantage Solutions Inc. Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA (Unaudited)

Continuing Operations	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Net loss from continuing operations	$	(30,440	)	$	(113,016	)	$	(86,570	)	$	(163,149	)
Add:
Interest expense, net		35,814			39,754			70,174			75,515
Provision for (benefit from) income taxes from continuing operations		4,621			(17,311	)		11,760			(33,176	)
Depreciation and amortization		50,698			51,317			101,059			101,065
Impairment of goodwill		—			99,670			—			99,670
Changes in fair value of warrant liability		16			(686	)		26			(399	)
Stock-based compensation expense ^(a)		6,584			7,528			13,069			16,082
Equity-based compensation of Karman Topco L.P. ^(b)		—			(872	)		(1,524	)		(480	)
Fair value adjustments related to contingent consideration ^(c)		—			900			—			1,678
Acquisition and divestiture related expenses ^(d)		57			(1,774	)		480			(1,334	)
Restructuring expenses^(e)		—			—			931			—
Reorganization expenses ^(f)		16,434			20,291			28,674			55,343
Litigation expenses (recovery) ^(g)		390			(993	)		913			(709	)
COVID-19 benefits received ^(h)		(715	)		—			(715	)		—
Costs associated with the Take 5 Matter ⁽ⁱ⁾		256			456			564			696
EBITDA for economic interests in investments ^(j)		2,697			4,634			5,752			9,737
Adjusted EBITDA from Continuing Operations	$	86,412		$	89,898		$	144,593		$	160,539

Advantage Solutions Reports Second Quarter 2025 Results