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

Advantage Solutions (NASDAQ:ADV) posted its quarterly earnings data on Wednesday. The company reported ($4.12) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 Stock Up 14.6%

ADV stock traded up $5.53 during trading on Wednesday, hitting $43.31. 88,217 shares of the stock traded hands, compared to its average volume of 53,609. The stock has a market cap of $567.31 million, a price-to-earnings ratio of -2.47 and a beta of 2.21. The company has a debt-to-equity ratio of 3.00, a current ratio of 2.25 and a quick ratio of 2.25. Advantage Solutions has a 1 year low of $12.23 and a 1 year high of $53.63. The firm’s 50 day moving average is $23.06 and its two-hundred day moving average is $23.86.

Institutional Investors Weigh In On Advantage Solutions

Several institutional investors and hedge funds have recently made changes to their positions in ADV. Creative Planning purchased a new position in Advantage Solutions in the 2nd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Advantage Solutions in the 2nd quarter worth $31,000. Two Sigma Investments LP purchased a new position in shares of Advantage Solutions in the third quarter worth $35,000. Virtu Financial LLC purchased a new stake in shares of Advantage Solutions during the third quarter valued at $36,000. Finally, Voleon Capital Management LP bought a new stake in Advantage Solutions in the 3rd quarter worth about $36,000. Institutional investors own 49.82% of the company’s stock.

Wall Street Analysts Forecast Growth

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