May. 12 at 11:29 AM
$ADV
Advantage Solutions reported challenging Q1 2025 results with declining performance metrics.
Revenues fell 5% to
$822 million from
$861 million year-over-year, while net loss increased to
$56 million from
$50 million.
Adjusted EBITDA declined 18% to
$58 million, with margins dropping to 7.1% from 8.2%.
The decline was primarily attributed to intentional client exits, transformation spending, labor shortages, and lower retail inventory levels.
The company maintained focus on capital allocation, conducting debt repurchases of
$20 million and share buybacks of
$1 million.
Management lowered guidance due to heightened market uncertainty, though they noted healthy demand in Experiential and Retailer Services segments.
The company's transformation initiatives remain on track to improve efficiency and drive growth by 2026.
