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Mar 31, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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