Strong cash flow performance resulted in ending the quarter with $241 million of cash, up $40 million sequentially
Completion of non-core divestitures, planned debt refinancing and upcoming reverse stock split
Expect flat to up low-single digit revenue growth in 2026, Adjusted EBITDA flat to down mid-single digits
ST. LOUIS, March 03, 2026 (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 and twelve months ended December 31, 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 ended December 31, 2025 were $932.1 million compared with $892.3 million, and net loss was $161.7 million compared with a net loss of $177.9 million.
Q4'25 Financial Highlights
----------------------------------------------------------------
-- Revenues in Q4 increased 4.5% and modestly declined
0.7% for the full year. Adjusted EBITDA declined 7.3%
to $87.7 million in Q4 and declined 6.8% to $331.8
million for the full year.
-- Cash increased $39.7 million sequentially in Q4, due
to improving working capital performance and proceeds
from recent divestitures.
-- Moving toward debt refinancing and lengthened
maturities provides financial flexibility to support
strategic priorities.
"We have recently taken decisive actions to strengthen Advantage's financial foundation and sharpen our operational focus, including advancing our technology transformation. We moved towards refinancing our debt, including extending maturities to 2030, divested some non-core assets generating approximately $55 million in proceeds, and ended the year with $241 million in cash," said Advantage CEO Dave Peacock. "As we enter 2026, we expect $250 to $275 million in unlevered free cash flow and are operating from a position of greater stability and strategic flexibility. We remain focused on translating our investments in labor productivity and client partnerships into sustained performance and long-term shareholder value."
Consolidated Financial Summary from Continuing Operations
---------------------------------------------------------------------
Three Months Ended
(amounts in thousands) December 31, Change (Reported)
2025 2024 $ %
---------- ---------- --------- -------
Total Revenues $ 932,131 $ 892,285 $ 39,846 4.5%
Total Net Loss $(161,730) $(177,935) $ 16,205 (9.1%)
Total Adjusted EBITDA $ 87,660 $ 94,555 $ (6,895) (7.3%)
Adjusted EBITDA Margin 9.4% 10.6%
----------------------- --------- --------- -------- -------
Year Ended December
31, Change (Reported)
2025 2024 $ %
---------- ---------- --------- ------
Total Revenues $3,542,642 $3,566,324 $(23,682) (0.7%)
Total Net Loss $(227,735) $(378,404) $ 150,669 (39.8%)
Total Adjusted EBITDA $ 331,807 $ 356,014 $(24,207) (6.8%)
Adjusted EBITDA Margin 9.4% 10.0%
----------------------- --------- --------- -------- -------
Segment Financial Summary from Continuing Operations
--------------------------------------------------------------------------------------------------
Revenues
--------------------------------------------------------------------------------------------------
Segment Three Months Ended December 31, Year Ended December 31,
---------------------------------- -------------------------------------
YoY YoY
(amounts in thousands) 2025 2024 (Reported) 2025 2024 (Reported)
----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Branded Services $ 289,805 $ 323,584 (10.4%) $1,163,672 $1,306,336 (10.9%)
Experiential Services $ 395,865 $ 325,439 21.6% $1,435,297 $1,295,029 10.8%
Retailer Services $ 246,461 $ 243,262 1.3% $ 943,673 $ 964,959 (2.2%)
----------------------- --------- --------- ---------- --------- --------- ----------
Total $ 932,131 $ 892,285 4.5% $3,542,642 $3,566,324 (0.7%)
----------------------- --------- --------- ---------- --------- --------- ----------
Operating (Loss) Income
--------------------------------------------------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
---------------------------------- -------------------------------------
YoY YoY
Segment 2025 2024 (Reported) 2025 2024 (Reported)
----------------------- ---------- ---------- ---------- ---------- ---------- -------------
Branded Services $ (46,586) $(176,973) 73.7% $ (64,252) $(318,573) 79.8%
Experiential Services $ (45,472) $ (3,103) NMF $ (17,205) $ 255 NMF
Retailer Services $ (69,958) $ 9,479 NMF $ (45,009) $ 23,335 NMF
--------- --------- ---------- --------- --------- -------------
Total $(162,016) $(170,597) 5.0% $(126,466) $(294,983) 57.1%
----------------------- --------- --------- ---------- --------- --------- -------------
Adjusted EBITDA
--------------------------------------------------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
---------------------------------- -------------------------------------
YoY YoY
Segment 2025 2024 (Reported) 2025 2024 (Reported)
----------------------- ---------- ---------- ---------- ---------- ---------- -------------
Branded Services $ 39,334 $ 55,470 (29.1%) $ 142,978 $ 181,465 (21.2%)
Experiential Services $ 28,209 $ 13,134 114.8% $ 101,484 $ 75,697 34.1%
Retailer Services $ 20,117 $ 25,951 (22.5%) $ 87,345 $ 98,852 (11.6%)
----------------------- --------- --------- ---------- --------- --------- ----------
Total $ 87,660 $ 94,555 (7.3%) $ 331,807 $ 356,014 (6.8%)
----------------------- --------- --------- ---------- --------- --------- ----------
Q4'25 Segment Highlights
Branded Services Experiential Services Retailer Services
Softness in CPG Strong 4Q performance Project timing
spending, procurement driven by shifts, channel mix
pressure, and client accelerating demand, pressure and a
insourcing continued improved hiring cautious retail
to weigh on velocity, higher environment weighed
performance labor readiness, and on 4Q performance
more consistent
execution
Managing costs tightly Strong profit growth Project activity
while strengthening with healthy shifting into early
the value proposition incremental margins 2026, new business
through innovation, amidst higher than pipeline, and more
data analytics, and expected labor costs normalized industry
partnerships to drive in the quarter trends support
measurable client improved performance
returns in 2026
Expect gradual Momentum exiting the Staffing and
improvement over the year position execution rates
course of 2026 while Experiential Services improved throughout
stabilizing the for solid growth the quarter
revenue base and outlook in 2026
driving new business
development
Cash Flow and Balance Sheet Highlights
(Amounts in Millions)
The 12 Month Period Ended
December 31, 2025
----------------------------------------- -------------------------
Adjusted Unlevered Free Cash Flow / % of
Adjusted EBITDA $223 / 67%
----------------------------------------- -------------------------
Capex $53
----------------------------------------- -------------------------
Gross Debt $1,688
----------------------------------------- -------------------------
Cash and Cash Equivalents $241
----------------------------------------- -------------------------
Net Leverage Ratio(1) 4.4x
----------------------------------------- -------------------------
Fiscal Year 2026 Outlook
(Amounts in Millions)
Revenues Flat to Up Low Single Digits
---------------------------------- ------------------------------
Adjusted EBITDA Flat to Down Mid Single Digits
---------------------------------- ------------------------------
Adjusted Unlevered Free Cash Flow Unlevered: $250 -- 275M
Conversion(1) Net: 25% of EBITDA
---------------------------------- ------------------------------
Net Interest Expense $160 to $170
---------------------------------- ------------------------------
Capex $50 to $60
---------------------------------- ------------------------------
2026 revenue outlook excludes reimbursable expenses. 2026 guidance compares to 2025 on a continuing operations basis.
Conference Call Details
------------------------------------------------------------------------------
Date/Time March 3, 2026, 8:30 am EDT
----------------------------- -----------------------------------------------
Dial-in 800-715-9871 within the United States or
(10 minutes before the call) +1-646-307-1963 outside the United States
Conference ID: 5720569
----------------------------- -----------------------------------------------
Webcast Available at: ADV 4Q 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: investorrelations@youradv.com
Media Contact: press@youradv.com
NMF = Not Meaningful
(1) Net free cash flow guidance is on a pre-debt refinancing basis. Net free cash flow is defined as cash flow from operations, less capital expenditures. Net FCF conversion of 25% is excluding incremental debt refinancing costs.
ADV-EARNS
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 year ended December 31, 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 3, 2026.
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 3, 2026, 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. 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.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
December 31, Year Ended December 31,
--------------------------- ---------------------------
(in thousands, except
share and per share
data) 2025 2024 2025 2024
------------ ------------ ------------ ------------
Revenues $ 932,131 $ 892,285 $ 3,542,642 $ 3,566,324
Cost of revenues
(exclusive of
depreciation and
amortization shown
separately below) 802,188 760,913 3,048,295 3,059,052
Selling, general, and
administrative
expenses 84,970 74,219 276,060 324,596
Impairment of
goodwill and
indefinite-lived
asset 203,685 175,500 203,685 275,170
Depreciation and
amortization 50,456 51,622 202,258 204,553
Income from
investment in
European joint
venture and other (1,925) 628 (7,491) (2,064)
Recovery from Take 5
Matter (25,716) -- (25,716) --
Gain on divestitures
and deconsolidation
of subsidiaries (19,511) -- (27,983) --
----------- ----------- ----------- -----------
Total operating
expenses 1,094,147 1,062,882 3,669,108 3,861,307
----------- ----------- ----------- -----------
Operating loss from
continuing
operations (162,016) (170,597) (126,466) (294,983)
Other expenses
(income):
Change in fair value
of warrant
liabilities -- (225) (83) (584)
Interest expense, net 33,808 32,308 138,936 146,792
----------- ----------- ----------- -----------
Total other
expenses, net 33,808 32,083 138,853 146,208
----------- ----------- ----------- -----------
Loss from continuing
operations before
benefit from income
taxes (195,824) (202,680) (265,319) (441,191)
Benefit from income
taxes from
continuing
operations (34,094) (24,745) (37,584) (62,787)
----------- ----------- ----------- -----------
Net loss from
continuing
operations (161,730) (177,935) (227,735) (378,404)
Net (loss)
income from
discontinued
operations,
net of tax -- (109) -- 53,634
----------- ----------- ----------- -----------
Net loss $ (161,730) $ (178,044) $ (227,735) $ (324,770)
Less: net
income from
discontinued
operations
attributable
to
noncontrolling
interest, net
of tax -- -- -- 2,192
----------- ----------- ----------- -----------
Net loss attributable
to stockholders of
Advantage Solutions
Inc. $ (161,730) $ (178,044) $ (227,735) $ (326,962)
=========== =========== =========== ===========
Net loss per common
share:
Basic loss per
common share from
continuing
operations
attributable to
stockholders of
Advantage
Solutions Inc. $ (0.50) $ (0.55) $ (0.70) $ (1.18)
=========== =========== =========== ===========
Basic (loss)
income per common
share from
discontinued
operations
attributable to
stockholders of
Advantage
Solutions Inc. $ -- $ (0.00) $ -- $ 0.16
=========== =========== =========== ===========
Diluted net loss per
share:
Dilute loss per
common share from
continuing
operations
attributable to
stockholders of
Advantage
Solutions Inc. $ (0.50) $ (0.55) $ (0.70) $ (1.18)
=========== =========== =========== ===========
Diluted (loss)
income per common
share from
discontinued
operations
attributable to
stockholders of
Advantage
Solutions Inc. $ -- $ (0.00) $ -- $ 0.16
=========== =========== =========== ===========
Weighted-average
number of common
shares:
Basic 326,271,558 321,080,571 324,564,046 321,515,982
Diluted 326,271,558 321,080,571 324,564,046 321,515,982
Advantage Solutions Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
December 31, December 31,
(in thousands, except share data) 2025 2024
-------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 240,850 $ 205,233
Restricted cash 12,137 15,518
Accounts receivable, net of
allowance for expected credit
losses of $16,771 and $13,047,
respectively 594,999 603,069
Prepaid expenses and other
current assets 124,629 86,918
---------- ----------
Total current assets 972,615 910,738
Property, equipment, and
capitalized software, net 115,858 97,763
Goodwill 438,900 477,021
Other intangible assets, net 993,927 1,332,578
Investments in unconsolidated
affiliates 234,138 226,510
Other assets 37,977 61,907
---------- ----------
Total assets $ 2,793,415 $ 3,106,517
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Current portion of long-term debt $ 13,250 $ 13,250
Accounts payable 162,376 158,485
Accrued compensation and benefits 121,105 129,486
Other accrued expenses 105,449 134,677
Deferred revenues 30,454 24,164
---------- ----------
Total current liabilities 432,634 460,062
Long-term debt, net of current
portion 1,660,611 1,686,690
Deferred income tax liabilities 90,023 146,889
Other long-term liabilities 56,189 64,141
---------- ----------
Total liabilities 2,239,457 2,357,782
---------- ----------
Commitments and contingencies (Note
18)
Equity attributable to stockholders
of Advantage Solutions Inc.
Preferred stock, no par value,
10,000,000 shares authorized;
none issued and outstanding as
of December 31, 2025 and
December 31, 2024, respectively -- --
Common stock, $0.0001 par value,
3,290,000,000 shares authorized;
326,429,909 and 320,773,096
shares issued and outstanding as
of December 31, 2025 and 2024,
respectively 33 32
Additional paid in capital 3,488,988 3,466,221
Accumulated deficit (2,869,347) (2,641,612)
Loans to Karman Topco L.P. (7,673) (7,029)
Accumulated other comprehensive
loss (4,158) (15,861)
Treasury stock, at cost;
12,894,517 and 12,400,075 shares
as of December 31, 2025 and
2024, respectively (53,885) (53,016)
---------- ----------
Total stockholders' equity 553,958 748,735
---------- ----------
Total liabilities and
stockholders' equity $ 2,793,415 $ 3,106,517
========== ==========
Advantage Solutions Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Year Ended December 31,
---------------------------
(in thousands) 2025 2024
-------------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss from continuing operations $ (227,735) $ (378,404)
Adjustments to reconcile net loss
to net cash provided by operating
activities
Non-cash adjustments on derivatives
and non-cash interest expense
(income) (2,102) 5,227
Amortization of deferred financing
fees 7,038 6,766
Impairment of goodwill and
indefinite-lived asset 203,685 275,170
Depreciation and amortization 202,258 204,553
Fair value adjustments related to
contingent consideration -- 1,678
Deferred income taxes (57,521) (57,307)
Equity-based compensation of Karman
Topco L.P. (1,524) 723
Stock-based compensation 26,915 31,019
Income from equity method
investments (7,491) (2,064)
Distribution received from equity
method investments 1,810 3,289
Gain on divestiture and
deconsolidation of subsidiaries (27,983) --
Gain on repurchases of Senior
Secured Notes and Term Loan
Facility debt (1,649) (9,141)
Other 282 1,769
Changes in operating assets and
liabilities, net of effects from
divestitures:
Accounts receivable, net 7,995 51,154
Prepaid expenses and other assets (31,423) 28,396
Accounts payable 5,271 (12,918)
Accrued compensation and benefits (10,665) (30,380)
Deferred revenues 7,335 (2,129)
Other accrued expenses and other
liabilities (32,964) (24,306)
---------- ---------
Net cash provided by operating
activities 61,532 93,095
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments in
unconsolidated affiliates (3,736) (13,932)
Purchase of property and equipment (6,477) (7,838)
Purchase and development of
capitalized software (46,434) (47,501)
Proceeds from divestitures 60,491 275,717
---------- ---------
Net cash provided by investing
activities 3,844 206,446
---------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under lines of credit 90,000 --
Payments on lines of credit (90,000) --
Principal payments on long-term debt (13,250) (13,131)
Repurchases of Senior Secured Notes
and Term Loan Facility debt (18,218) (147,122)
Debt issuance costs -- (971)
Deferred consideration paid for
purchases in unconsolidated
affiliates (2,113) --
Contingent consideration payments -- (5,655)
Proceeds from employee stock purchase
plan 1,838 2,294
Payments for taxes related to net
share settlement of equity awards (3,596) (12,765)
Purchase of treasury stock (869) (34,067)
---------- ---------
Net cash used in financing
activities (36,208) (211,417)
---------- ---------
Net effect of foreign currency changes
on cash, cash equivalents and
restricted cash 3,068 (4,575)
Net change in cash, cash equivalents
and restricted cash 32,236 83,549
---------- ---------
Cash, cash equivalents and restricted
cash, beginning of period 220,751 137,202
---------- ---------
Cash, cash equivalents and restricted
cash, end of period $ 252,987 $ 220,751
========== =========
Advantage Solutions Inc.
Reconciliation of Net Loss from Continuing Operations
to Adjusted EBITDA
(Unaudited)
Continuing Three Months Ended Year Ended December
Operations December 31, 31,
--------------------- ---------------------
(in thousands) 2025 2024 2025 2024
--------- --------- --------- ---------
Net loss from
continuing
operations $(161,730) $(177,935) $(227,735) $(378,404)
Add:
Interest expense,
net 33,808 32,308 138,936 146,792
Benefit from
income taxes
from continuing
operations (34,094) (24,745) (37,584) (62,787)
Depreciation and
amortization 50,456 51,622 202,258 204,553
Impairment of
goodwill and
indefinite-lived
asset 203,685 175,500 203,685 275,170
Gain on
divestiture (19,511) -- (27,983) --
Changes in fair
value of warrant
liability -- (225) (83) (584)
Stock-based
compensation
expense(a) 6,431 6,794 26,915 31,019
Equity-based
compensation of
Karman Topco
L.P.(b) -- 1,381 (1,524) 723
Fair value
adjustments
related to
contingent
consideration
related to
acquisitions(c) -- -- -- 1,678
Acquisition and
divestiture
related
expenses(d) 1,506 39 2,237 (1,168)
Restructuring
expenses(e) -- 5,933 931 30,051
Reorganization
expenses(f) 24,490 14,820 62,939 88,800
Litigation
expenses(g) 170 482 1,133 (1,940)
Costs associated
with COVID-19,
net of benefits
received(h) -- -- (5,723) --
(Recovery from)
costs associated
with the Take 5
Matter((i) () (21,705) 764 (20,720) 1,845
EBITDA for
economic
interests in
investments(j) 4,154 7,817 14,125 20,266
-------- -------- -------- --------
Adjusted EBITDA
from Continuing
Operations $ 87,660 $ 94,555 $ 331,807 $ 356,014
======== ======== ======== ========
Advantage Solutions Inc.
Reconciliation of Operating (loss) Income to Adjusted
EBITDA by Segment
(Unaudited)
Branded Services Three Months Ended Year Ended December
segment December 31, 31,
-------------------- --------------------
(in thousands) 2025 2024 2025 2024
-------- --------- -------- ---------
Operating loss $(46,586) $(176,973) $(64,252) $(318,573)
Add:
Depreciation and
amortization 31,297 32,811 125,807 130,212
Impairment of
goodwill and
indefinite-lived
asset 77,797 175,500 77,797 275,170
Gain on
divestiture (19,511) -- (27,983) --
Stock-based
compensation
expense(a) 2,613 3,839 10,221 12,391
Equity-based
compensation of
Karman Topco
L.P.(b) -- 1,521 (95) 2,445
Fair value
adjustments
related to
contingent
consideration
related to
acquisitions(c) -- -- -- 1,678
Acquisition and
divestiture
related
expenses(d) 777 15 1,234 168
Restructuring
expenses(e) -- 3,951 358 19,343
Reorganization
expenses(f) 10,469 6,047 28,075 35,910
Litigation
expenses(g) 29 178 302 610
Costs associated
with COVID-19,
net of benefits
received(h) -- -- (1,891) --
(Recovery) costs
associated with
the Take 5
Matter((i) () (21,705) 764 (20,720) 1,845
EBITDA for
economic
interests in
investments(j) 4,154 7,817 14,125 20,266
------- -------- ------- --------
Branded Services
segment Adjusted
EBITDA $ 39,334 $ 55,470 $142,978 $ 181,465
======= ======== ======= ========
Experiential Three Months Ended Year Ended December
Services segment December 31, 31,
------------------ --------------------
(in thousands) 2025 2024 2025 2024
-------- ------- -------- ---------
Operating (loss)
income $(45,472) $(3,103) $(17,205) $ 255
Add:
Depreciation and
amortization 10,786 10,504 42,751 41,728
Impairment of
indefinite-lived
asset 53,086 -- 53,086 --
Stock-based
compensation
expense(a) 1,474 292 7,104 7,761
Equity-based
compensation of
Karman Topco
L.P.(b) -- (42) (729) (825)
Acquisition and
divestiture
related
expenses(d) 381 10 541 47
Restructuring
expenses(e) -- 938 186 4,368
Reorganization
expenses(f) 7,842 4,363 17,256 21,757
Litigation
expenses(g) 112 172 563 606
Costs associated
with COVID-19,
net of benefits
received(h) -- -- (2,069) --
------- ------ ------- --------
Experiential
Services segment
Adjusted EBITDA $ 28,209 $13,134 $101,484 $ 75,697
======= ====== ======= ========
Retailer Services Three Months Ended Year Ended December
segment December 31, 31,
------------------ --------------------
(in thousands) 2025 2024 2025 2024
-------- ------- -------- ---------
Operating (loss)
income $(69,958) $ 9,479 $(45,009) $ 23,335
Add:
Depreciation and
amortization 8,373 8,307 33,700 32,613
Impairment of
goodwill and
indefinite-lived
asset 72,802 -- 72,802 --
Stock-based
compensation
expense(a) 2,344 2,663 9,590 10,867
Equity-based
compensation of
Karman Topco
L.P.(b) -- (98) (700) (897)
Acquisition and
divestiture
related
expenses(d) 348 14 462 (1,383)
Restructuring
expenses(e) -- 1,044 387 6,340
Reorganization
expenses(f) 6,179 4,410 17,608 31,133
Litigation
expenses
(recovery)(g) 29 132 268 (3,156)
Costs associated
with COVID-19,
net of benefits
received(h) -- -- (1,763) --
------- ------ ------- --------
Retailer Services
segment Adjusted
EBITDA $ 20,117 $25,951 $ 87,345 $ 98,852
======= ====== ======= ========
Advantage Solutions Inc.
Net Debt and Adjusted Unlevered Free Cash Flow Reconciliation
(Unaudited)
(amounts in thousands) December 31, 2025
-------------------
Current portion of long-term debt $ 13,250
Long-term debt, net of current portion 1,674,582
Total debt 1,687,832
Less: Cash and cash equivalents 240,850
---- -------------
Total Net Debt $ 1,446,982
==== =============
LTM Adjusted EBITDA from Continuing Operations $ 331,807
Net Debt / LTM Adjusted EBITDA ratio 4.4x
Year Ended
(amounts in thousands) December 31, 2025
--------------------
Net cash provided by operating activities from
continuing operations $ 61,532
Less:
Purchase of property, equipment and capitalized
software (52,911)
Cash proceeds from settlement of Take 5 Matter((i)
() (16,300)
Add:
Cash payments for interest 142,681
Cash payments for income taxes 19,291
Cash paid for acquisition and divestiture related
expenses(k) 1,779
Cash paid for restructuring expenses(l) 14,068
Cash paid for reorganization expenses(m) 44,754
Cash paid for costs associated with the Take 5
Matter(n) 5,332
Net effect of foreign currency fluctuations on
cash 3,068
--- ---------------
Adjusted Unlevered Free Cash Flow $ 223,294
=== ===============
Numerator - Adjusted Unlevered Free Cash Flow $ 223,294
Denominator - Adjusted EBITDA from Continuing
Operations $ 331,807
--- ---------------
Adjusted Unlevered Free Cash Flow as a percentage
of Adjusted EBITDA 67.3%
=== ===============
(a) Represents non-cash compensation expense related to
performance stock units, restricted stock units, and
stock options under the 2020 Advantage Solutions Incentive
Award Plan and the Advantage Solutions 2020 Employee
Stock Purchase Plan.
(b) Represents expenses related to (i) equity-based compensation
expense associated with grants of Common Series D
Units of Karman Topco made to one of the Advantage
Sponsors and (ii) equity-based compensation expense
associated with the Common Series C Units of Karman
Topco.
(c) Represents adjustments to the estimated fair value
of our contingent consideration liabilities related
to our acquisitions, for the applicable periods.
(d) Represents fees and costs associated with activities
related to our acquisitions, divestitures, and related
reorganization activities, including professional
fees, due diligence, and integration activities.
(e) Restructuring charges including programs designed
to integrate and reduce costs intended to further
improve efficiencies in operational activities and
align cost structures consistent with revenue levels
associated with business changes. Restructuring expenses
include costs associated with the VERP and employee
termination benefits associated with the 2024 RIF
and other optimization initiatives.
(f) Represents fees and costs associated with various
internal reorganization and transformational activities,
including professional fees, lease and other contract
exit costs, severance, and nonrecurring compensation
costs.
(g) Represents legal settlements, reserves, and expenses
that are unusual or infrequent costs associated with
our operating activities.
(h) Represents (i) costs related to implementation of
strategies for workplace safety in response to COVID-19,
including employee-relief fund, additional sick pay
for front-line teammates, medical benefit payments
for furloughed teammates, and personal protective
equipment; and (ii) benefits received from government
grants for COVID-19 relief.
(i) Represents recoveries related to the Take 5 Matter,
including cash received from an insurance policy and
amounts collected from parties responsible for the
underlying misconduct, as well as costs associated
with investigation and remediation activities, primarily
professional fees and other related expenses.
(j) Represents additions to reflect our proportional share
of Adjusted EBITDA related to our equity method investments
and reductions to remove the Adjusted EBITDA related
to the minority ownership percentage of the entities
that we fully consolidate in our financial statements.
(k) Represents gains and losses on disposal of assets
related to divestitures and losses on sale of businesses
and assets held for sale, less cost to sell.
(l) Represents cash paid for restructuring charges including
programs designed to integrate and reduce costs intended
to further improve efficiencies in operational activities
and align cost structures consistent with revenue
levels associated with business changes. Restructuring
expenses include costs associated with the VERP and
employee termination benefits associated with the
2024 RIF and other optimization initiatives.
(m) Represents cash paid for fees and costs associated
with various reorganization activities, including
professional fees, lease exit costs, severance, and
nonrecurring compensation costs.
(n) Represents cash paid for costs associated with the
Take 5 Matter, primarily, professional fees and other
related costs.
(END) Dow Jones Newswires
March 03, 2026 07:00 ET (12:00 GMT)