Group 1 - U.S. stocks showed mixed performance, with the Dow Jones index declining over 100 points on Monday [1] - PROS Holdings, Inc. shares surged 40% to $22.97 following the announcement of its acquisition by Thoma Bravo [1] - MBX Biosciences, Inc. saw a significant increase of 144% to $24.40 after its once-weekly Canvuparatide met primary endpoints in a Phase 2 trial [3] - Metsera, Inc. gained 62.8% to $54.25 amid reports of a near acquisition deal with Pfizer [3] - Anywhere Real Estate Inc. experienced a 57% rise to $11.13 due to a combination announcement with Compass in an all-stock transaction [3] - The ODP Corporation's shares increased by 33.6% to $27.82 after announcing a definitive agreement to be acquired by an affiliate of Atlas Holdings [3] - Banco BBVA Argentina S.A. shares rose 17.7% to $9.64 following U.S. Treasury Secretary Bessent's statement of support for Argentina [3] - Grupo Supervielle S.A. also saw a 16% increase to $5.83 under similar circumstances regarding U.S. support for Argentina [3] - Lumen Technologies, Inc. rose 12.5% to $6.43 after announcing significant progress in building infrastructure for the AI economy [3] - IREN Limited gained 10.7% to $42.88 after doubling its AI Cloud capacity to 23,000 GPUs [3]

ODP Corp., owner of the Office Depot retail chain, is being acquired by private equity firm Atlas Holdings for about $1 billion https://t.co/prhPTpH67C ...

BOCA RATON, Fla. & GREENWICH, Conn.--(BUSINESS WIRE)--The ODP Corporation (NASDAQ:ODP), a leading provider of products, services and technology solutions to businesses and consumers, today announced that it has entered into a definitive agreement to be acquired by an affiliate of Atlas Holdings, which owns and operates a global family of manufacturing and distribution businesses, for $28 per share in cash. The purchase price represents a premium of 34% to The ODP Corporation's closing share pri. ...

Core Viewpoint - Office Depot expresses deep concern regarding a negative customer experience at Store 3382 in Portage, Michigan, emphasizing that the associate's behavior was unacceptable and did not align with company values [1] Company Response - The company acknowledges the incident and states that it violates company policies, reflecting a commitment to uphold its values [1] - An apology is issued on behalf of the company to the affected customer, indicating a proactive approach to customer service [1] - Office Depot took immediate action by reaching out to the customer to address the situation [1]

Financial Data and Key Metrics Changes - The company generated total revenue of $1.6 billion for the quarter, an 8% decrease compared to the second quarter of last year, primarily driven by 60 fewer stores in operation and reduced consumer traffic [23][24] - Adjusted EBITDA was $47 million in the quarter, compared to $57 million in the prior year, reflecting a decline due to restructuring expenses [25] - Adjusted free cash flow for the quarter was $13 million, a significant increase from $5 million in the same period last year, highlighting improved cash generation [27][36] Business Line Data and Key Metrics Changes - In the B2B distribution segment, revenue trends improved by approximately 200 basis points year over year, driven by new business wins and stronger demand [10][30] - The retail segment, Office Depot, reported sales of $716 million, down 10% year over year, but comparable store sales improved by 200 basis points [28][29] - The supply chain business, Veyr, achieved a 90% year-over-year revenue growth from third-party customers, with third-party revenue reaching $19 million [34][35] Market Data and Key Metrics Changes - The company is making significant progress in the hospitality market, with a strategic partnership covering approximately 15,000 members, positioning ODP to enter a $16 billion segment [15][16] - Sales to hospitality customers rose by a low double-digit percentage, indicating early traction in this new market [32] Company Strategy and Development Direction - The company's strategy focuses on leveraging supply chain strengths to accelerate growth in the B2B business while maximizing value from the retail segment [6][7] - The "Optimize for Growth" plan aims to streamline fixed costs and improve margins while expanding into higher growth sectors like hospitality and healthcare [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum into the second half of the year, expecting additional top-line improvement in B2B distribution and sustained strength in retail [22][42] - The company anticipates generating over $115 million in adjusted free cash flow for the full year, supported by strong cash generation and disciplined working capital management [39][41] Other Important Information - The company closed 23 retail stores and three distribution facilities as part of its restructuring efforts [24][20] - Total liquidity at quarter-end was $658 million, consisting of $177 million in cash and $481 million in available credit [38] Q&A Session Summary Question: Are there alternatives being explored to maximize shareholder value? - Management emphasized that maximizing shareholder value is the primary focus, but they cannot comment on specific activities or rumors [46][47] Question: What assumptions have been made regarding the macroeconomic environment, particularly the labor market? - Management stated they are conservative in their assumptions and have a strong focus on inventory management to ensure cash flow generation [48][50] Question: What percentage of the assortment is subject to tariffs, and how will pricing be adjusted? - Approximately 57% of inventory is either MAP priced or exempt from tariffs, allowing flexibility in pricing strategies [53][58] Question: What needs to happen for the business solutions segment to return to positive revenue trends? - Continued execution and focus on hospitality growth are essential, with a strong emphasis on onboarding new properties [86][89]

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. ODP Corp. (ODP) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.56 per share a year ago. T ...

Financial Performance - Sales decreased to $1586 million from $1717 million [22] - Operating income increased to $9 million from $0.4 million [22] - Adjusted operating income decreased to $25 million from $33 million [22] - Adjusted EBITDA decreased to $47 million from $57 million [22] - Adjusted free cash flow increased to $13 million from $5 million [10, 22] - ODP Business Solutions revenue decreased 6% year-over-year [31] - Office Depot comparable store sales improved by approximately 200 basis points year-over-year [10, 28] Strategic Initiatives - The company is executing its "Optimize for Growth" plan to accelerate B2B growth [9, 15] - The company is expanding into the hospitality market, a $16 billion+ market segment [13, 14] - Veyer's revenue from third-party customers increased 90% year-over-year to $19 million [37] Outlook - The company expects continued improvements in performance trends and strong adjusted free cash flow generation in the second half of the year [8] - The company anticipates generating over $115 million in adjusted free cash flow for the full year 2025 [44]

[Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) Total sales declined 8% to $1.6 billion due to lower divisional sales, though operating income improved significantly Q2 2025 Consolidated Financial Highlights (GAAP & Non-GAAP) | Consolidated (in millions, except per share amounts) | 2Q25 | 2Q24 | | :--- | :--- | :--- | | **Sales** | $1,586 | $1,717 | | Sales change from prior year period | (8)% | - | | **Operating income (loss)** | $9 | $0.4 | | Adjusted operating income | $25 | $33 | | **Net income (loss) from continuing operations** | $0 | $(4) | | Diluted earnings (loss) per share | $0.00 | $(0.12) | | **Adjusted net income from continuing operations** | $15 | $20 | | Adjusted earnings per share | $0.51 | $0.56 | | **Adjusted EBITDA** | $47 | $57 | | Operating Cash Flow from continuing operations | $16 | $(1) | | Adjusted Free Cash Flow | $13 | $5 | - The **8% decrease in reported sales** was largely driven by lower sales in the Office Depot Division, resulting from 60 fewer retail locations and reduced consumer traffic, as well as lower sales in the ODP Business Solutions Division[4](index=4&type=chunk)[6](index=6&type=chunk) - GAAP operating income was **$9 million**, a significant increase from $0.4 million in the prior year, with Q2 2025 results including **$16 million in charges** related to the "Optimize for Growth" plan[4](index=4&type=chunk)[5](index=5&type=chunk)[7](index=7&type=chunk) - The company ended the quarter with **$658 million of total available liquidity**, comprising $177 million in cash and cash equivalents[8](index=8&type=chunk) [Divisional Performance](index=5&type=section&id=Divisional%20Performance) The ODP Business Solutions and Office Depot divisions saw sales declines, while the Veyer division's third-party logistics revenue grew significantly [ODP Business Solutions Division](index=5&type=section&id=ODP%20Business%20Solutions%20Division) The B2B division's sales decreased by 6% to $859 million, but revenue trends improved sequentially due to new customer acquisitions ODP Business Solutions Q2 Performance | Metric | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Sales (external) | $859M | $915M | | % Change of Total Sales | (6)% | (8)% | | Division Operating Income | $18M | $29M | - Revenue trends improved by about **200 basis points**, driven by success in onboarding new customers and growth in hospitality categories[12](index=12&type=chunk) - The division made significant progress on growth initiatives, including onboarding approximately **one thousand new hotel properties** as customers[12](index=12&type=chunk) [Office Depot Division](index=5&type=section&id=Office%20Depot%20Division) The consumer division's sales declined 10% to $716 million, primarily due to operating 60 fewer stores, though comparable store sales trends improved Office Depot Division Q2 Performance | Metric | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Sales (external) | $716M | $792M | | % Change of Total Sales | (10)% | (12)% | | Division Operating Income | $12M | $17M | | Change in Comparable Store Sales | (5)% | (7)% | - The sales decline was primarily impacted by **60 fewer retail locations** and reduced online sales, with the company closing 23 stores in Q2 to end with 834 retail locations[12](index=12&type=chunk) [Veyer Division](index=7&type=section&id=Veyer%20Division) The Veyer supply chain division's sales to third-party customers grew 90% year-over-year, indicating successful expansion of its logistics services Veyer Division Q2 Performance | Metric | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Sales (external) | $19M | $10M | | Sales (internal) | $1,049M | $1,167M | | Division Operating Income | $10M | $5M | - Sales generated from third-party customers **increased by 90%** to $19 million, and EBITDA from these customers was **$5 million**, a 32% increase[20](index=20&type=chunk) [Balance Sheet and Cash Flow](index=7&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company maintained a solid financial position with $658 million in liquidity, while operating cash flow and adjusted free cash flow improved significantly - As of June 28, 2025, ODP had total available liquidity of **$658 million**, consisting of $177 million in cash and cash equivalents and $481 million of available credit, with total debt at $245 million[14](index=14&type=chunk) Q2 Cash Flow Comparison (in millions) | Metric | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Cash from Operating Activities | $16 | $(1) | | Capital Expenditures | $(12) | $(19) | | Adjusted Free Cash Flow | $13 | $5 | - Stronger cash generation has enabled the company to pay down approximately **$35 million in debt** year-to-date, strengthening the balance sheet[17](index=17&type=chunk) [Strategic Initiatives and Outlook](index=7&type=section&id=Strategic%20Initiatives%20and%20Outlook) [Strategic Initiatives](index=7&type=section&id=Strategic%20Initiatives) ODP is pursuing B2B expansion into the hospitality sector and implementing its "Optimize for Growth" restructuring plan to reduce costs [Hospitality Industry Expansion](index=7&type=section&id=Hospitality%20Industry%20Expansion) The company is expanding into the hospitality market by onboarding new hotel properties and pursuing partnerships with major hospitality organizations - ODP Business Solutions has a strategic partnership with a major hotel management organization to be a preferred provider for OS&E to its over **15,000 members**[18](index=18&type=chunk) - During Q2, the company onboarded approximately **one thousand new properties** under its current agreement and saw solid early demand for its OS&E product offering[19](index=19&type=chunk)[21](index=21&type=chunk) - The company is actively engaged in discussions with several additional major hospitality organizations to become a primary supplier[22](index=22&type=chunk)[23](index=23&type=chunk) ["Optimize for Growth" Plan](index=9&type=section&id=%22Optimize%20for%20Growth%22%20Plan) The multi-year restructuring plan incurred $12 million in Q2 expenses and aims to reduce fixed costs and accelerate B2B growth - The plan aims to reduce fixed-cost infrastructure while leveraging core strengths to accelerate growth in B2B market segments like hospitality and healthcare[24](index=24&type=chunk) - In Q2 2025, the company recognized **$12 million of restructuring expense** related to the closure of 23 retail stores, three distribution facilities, and one satellite location[25](index=25&type=chunk) - Over its multi-year life, the plan is expected to cost **$185 million to $230 million** and generate approximately **$380 million in EBITDA improvement** and over $1.3 billion in total value[25](index=25&type=chunk) [2025 Outlook](index=9&type=section&id=2025%20Outlook) The company expects to generate over $115 million in adjusted free cash flow for 2025, driven by B2B top-line improvements and strong consumer cash generation - The company provided additional guidance for 2025, expecting to generate over **$115 million in adjusted free cash flow** for the full year[1](index=1&type=chunk)[28](index=28&type=chunk) - Key drivers for the second half of the year include **top-line trend improvement** at ODP Business Solutions and continued robust results and cash generation from the Office Depot business[28](index=28&type=chunk) - The outlook assumes stable macroeconomic conditions and the company believes it is well-positioned to manage potential impacts from the evolving tariff landscape[27](index=27&type=chunk) [Financial Statements and Reconciliations](index=15&type=section&id=Financial%20Statements%20and%20Reconciliations) [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations) The unaudited statement of operations shows Q2 2025 sales of $1.586 billion and net income from continuing operations of $0 Consolidated Statements of Operations (Q2 2025 vs Q2 2024, in millions) | Line Item | 13 Weeks Ended June 28, 2025 | 13 Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Sales | $1,586 | $1,717 | | Gross profit | $310 | $342 | | Operating income (loss) | $9 | $0 | | Net income (loss) from continuing operations | $0 | $(4) | | Net income (loss) | $0 | $(73) | [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of June 28, 2025, shows total assets of $3.401 billion and total stockholders' equity of $796 million Consolidated Balance Sheet Highlights (in millions) | Account | June 28, 2025 | December 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $177 | $166 | | Inventories | $745 | $770 | | **Total assets** | **$3,401** | **$3,529** | | Total current liabilities | $1,524 | $1,543 | | Long-term debt, net | $237 | $270 | | **Total liabilities** | **$2,605** | **$2,722** | | **Total stockholders' equity** | **$796** | **$807** | [Consolidated Statements of Cash Flows](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the 26 weeks ended June 28, 2025, net cash from operating activities improved significantly to $73 million from $27 million in the prior year Consolidated Cash Flow Highlights (YTD, in millions) | Cash Flow Activity | 26 Weeks Ended June 28, 2025 | 26 Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $73 | $27 | | Net cash used in investing activities | $(19) | $(53) | | Net cash used in financing activities | $(45) | $(174) | | Net increase (decrease) in cash | $11 | $(202) | [GAAP to Non-GAAP Reconciliations](index=19&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section details reconciliations for non-GAAP measures, adjusting GAAP operating income of $9 million to an Adjusted Operating Income of $25 million for Q2 2025 Q2 2025 GAAP to Non-GAAP Reconciliation (in millions) | Metric | Reported (GAAP) | Charges & Credits | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Operating income | $9 | $(16) | $25 | | Net income from continuing operations | $0 | $(16) | $15 | | Earnings per share | $0.00 | $(0.51) | $0.51 | Q2 2025 Free Cash Flow Reconciliation (in millions) | Metric | Amount | | :--- | :--- | | Net cash from operating activities | $16 | | Capital expenditures | $(12) | | **Free cash flow** | **$4** | | Adjustments for certain cash charges | $9 | | **Adjusted free cash flow** | **$13** | [Store Statistics](index=22&type=section&id=Store%20Statistics) The company closed 23 Office Depot stores in Q2 2025, bringing the total U.S. retail store count to 834 Office Depot Division Store Count | Metric | Q2 2025 | | :--- | :--- | | Stores closed | 23 | | Total retail stores (U.S.) | 834 |

Company Performance - ODP Corp. ended the recent trading session at $18.18, showing a -3.35% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.07% [1] - The company's shares gained 5.38% over the previous month, outperforming the Retail-Wholesale sector's gain of 5.27% but underperforming the S&P 500's gain of 5.71% [1] Earnings Forecast - ODP Corp. is scheduled to release its earnings report on August 6, 2025, with projected earnings per share (EPS) of $0.33, reflecting a 41.07% decrease from the same quarter last year [2] - The consensus estimate anticipates revenue of $1.57 billion, indicating an 8.39% decline from the same quarter last year [2] - For the full year, analysts expect earnings of $3.03 per share and revenue of $6.58 billion, marking changes of -8.18% and -5.83% respectively from last year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates for ODP Corp. indicate the changing nature of near-term business trends, with upward revisions reflecting analysts' positivity towards the company's operations [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks ODP Corp. at 3 (Hold), with no change in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - ODP Corp. has a Forward P/E ratio of 6.22, which is a discount compared to the industry average Forward P/E of 14.33 [7] - The company has a PEG ratio of 0.44, significantly lower than the industry average PEG ratio of 3.08 [7] Industry Context - The Retail - Miscellaneous industry, part of the Retail-Wholesale sector, currently holds a Zacks Industry Rank of 198, placing it in the bottom 20% of all industries [8]

Group 1 - The ODP Corporation (NASDAQ: ODP), which operates Office Depot, may surprise analysts and investors with its upcoming quarterly results, although it is unlikely to impress them significantly [1] - Recent consumer and corporate behavior indicates a trend of frontloading purchases, which could impact ODP's performance [1] - The analysis emphasizes the importance of observing megatrends and technological advancements to identify investment opportunities, while also stressing the need to focus on fundamentals and company details [1] Group 2 - The analyst has no current stock or derivative positions in ODP but may consider initiating a short position within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by any compensation from companies mentioned [2]