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Mar 31
Advantage Solutions Q1 2025 Earnings Report
Advantage Solutions reported a revenue decline and a wider net loss in Q1 2025 due to client exits and ongoing transformation spending.
Key Takeaways
The company faced a 5% year-over-year revenue decline to $821.8 million and reported a net loss of $56.1 million. Despite headwinds, demand remained stable in experiential and retailer services, while the transformation initiatives continued on track.
Revenue declined 5% YoY primarily due to intentional client exits and transformation-related costs.
Net loss widened to $56.1 million from $50.1 million in Q1 2024.
Adjusted EBITDA decreased 18% to $58.2 million.
Transformation efforts, including ERP implementation and IT modernization, are progressing and expected to improve long-term efficiency.
Advantage Solutions
Advantage Solutions
Advantage Solutions Revenue by Segment
Revenue by Segment
Branded Services Revenue
CapyFin.comExperiential Services Revenue
CapyFin.comRetailer Services Revenue
CapyFin.com Forward Guidance
The company lowered its full-year 2025 outlook due to macroeconomic uncertainty but expects back-half improvement driven by transformation progress and working capital gains.
Positive Outlook
- Transformation initiatives remain on track to enhance long-term efficiency.
- Healthy demand across experiential and retailer services segments.
- Ongoing ERP and IT upgrades expected to streamline operations.
- Adjusted EBITDA still forecasted to potentially meet over 50% conversion from free cash flow.
- Company remains focused on disciplined capital allocation including debt repurchases.
Challenges Ahead
- Revenue and EBITDA guidance revised down to flat or low single-digit decline.
- Staffing challenges and labor market tightness are still impacting execution.
- Headwinds from client losses and retail inventory destocking.
- Working capital temporarily strained by ERP implementation impact on DSO.
- Continued macroeconomic volatility affecting client behavior and visibility.