Key Highlights

  • Third quarter Revenue of USD 913.7 million topped the USD 899.5 million estimate and was nearly flat year over year.
  • GAAP net loss was USD 25.1 million, or USD 1.96 per share, against Net Income of USD 20.6 million.
  • Adjusted EBITDA fell 14.2% to USD 85.4 million, while Experiential Services revenue climbed 14.3% on strong event demand.
  • A restructuring targets about USD 25 million in annualized net savings, with full year guidance reiterated.

Advantage Solutions (NASDAQ:ADV) reported third quarter revenue of USD 913.7 million, essentially flat against USD 915.0 million a year earlier and above the USD 899.5 million estimate. Revenue net of reimbursable expenses rose 0.1% to USD 782 million. The company posted a net loss of USD 25.1 million, or USD 1.96 per diluted share, compared with net income of USD 20.6 million, or USD 1.51 per share, in the prior-year quarter.

Segment Divergence

Experiential Services revenue rose 14.3% to USD 431.6 million, and adjusted EBITDA edged up 0.3% to USD 35.4 million as wage, recruiting and staffing investments offset Volume gains. Events per day grew 13.5%. Retailer Services revenue rose 1.0% to USD 251.0 million, while adjusted EBITDA jumped 43.3% to USD 32.3 million, including a small Tariff refund benefit. Excluding the refund, management said the gain topped 30%.

Branded Services remained under pressure. Revenue fell 20.0% to USD 231.2 million on client losses and an unfavorable mix, including declines in higher-margin headquarter sales and agency work. Adjusted EBITDA dropped 57.7% to USD 17.6 million, and the segment posted an operating loss of USD 24.6 million. Supply chain and retail project work grew.

Consolidated adjusted EBITDA fell to USD 85.4 million, a 9.3% Margin versus 10.9%. Operating Income was USD 7.5 million compared with USD 40.2 million, after an USD 8.1 million asset impairment. Net interest expense rose to USD 38.8 million.

Restructuring, Cash and Leverage

Chief executive Dave Peacock said the new restructuring targets roughly USD 25 million of annualized savings net of investment, with over USD 5 million more planned over time. Actions begin in the fourth quarter and extend into 2027, centered on Branded Services and select support functions, including delayering and consolidating support structures. The company estimates restructuring costs of USD 7 million to USD 10 million. It also paused its Workday implementation, which lowers 2026 capital expenditures to USD 40 million to USD 45 million.

Adjusted unlevered free Cash Flow was USD 98.7 million, or 115.6% of adjusted EBITDA. Cash was USD 131.3 million, gross Debt was USD 1,579 million and the net Leverage ratio was 4.6x. Capital expenditures were USD 10.4 million.

Reiterated 2026 Outlook

Advantage reiterated full year guidance for revenue, adjusted EBITDA and cash flow. Revenue, excluding reimbursable expenses, is guided to flat to up low single digits, and adjusted EBITDA to flat to down mid single digits. Unlevered free cash flow is guided to USD 250 million to USD 275 million, net interest expense near USD 155 million and net free cash flow near 25% of adjusted EBITDA.

Management projects double-digit revenue and adjusted EBITDA growth with margin expansion in Experiential Services for both the fourth quarter and the year, and sequential improvement in Branded Services. Management noted higher uncertainty from rising energy prices and interest rates on consumer spending.

Figures Worth Comparing

Third quarter adjusted EBITDA of USD 85.4 million compares with USD 99.6 million a year earlier, and nine-month adjusted EBITDA of USD 229.0 million compares with USD 244.1 million. Experiential revenue of USD 431.6 million compares with USD 231.2 million in Branded Services. Gross debt of USD 1,579 million compares with cash of USD 131.3 million, and the projected USD 25 million of savings compares with restructuring costs of USD 7 million to USD 10 million.