Core Viewpoint - ODP Corp. is positioned as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Earnings Estimates - Analysts are increasingly optimistic about ODP Corp.'s earnings prospects, leading to higher estimates that are expected to positively influence the stock price [2]. - The current-quarter earnings estimate is projected at $0.33 per share, reflecting a year-over-year decline of 41.07%. However, the Zacks Consensus Estimate has increased by 25% over the last 30 days, with one estimate revised upward and no negative revisions [6]. - For the full year, the earnings estimate stands at $2.79 per share, showing a year-over-year decrease of 15.45%. The consensus estimate has risen by 9% due to one upward revision and no negative changes in estimates [7][8]. Zacks Rank - ODP Corp. has achieved a Zacks Rank of 1 (Strong Buy), supported by favorable estimate revisions. This ranking is based on a proven track record of outperforming the market, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][9]. - The Zacks Rank system indicates that stocks rated 1 and 2 significantly outperform the S&P 500, reinforcing the attractiveness of ODP Corp. as an investment [9]. Stock Performance - ODP Corp. shares have increased by 27.9% over the past four weeks, suggesting strong investor confidence driven by the positive earnings estimate revisions [10].

Core Viewpoint - ODP Corp. is currently positioned as a more attractive value investment compared to Tractor Supply based on various financial metrics and earnings outlook [3][7]. Valuation Metrics - ODP has a forward P/E ratio of 6.17, significantly lower than Tractor Supply's forward P/E of 24.59 [5]. - ODP's PEG ratio stands at 0.44, while Tractor Supply's PEG ratio is 2.76, indicating ODP's better valuation relative to its expected earnings growth [5]. - ODP's P/B ratio is 0.65, contrasting sharply with Tractor Supply's P/B of 12.15, further highlighting ODP's undervaluation [6]. Earnings Outlook - ODP is experiencing an improving earnings outlook, which is a key factor in its strong Zacks Rank of 1 (Strong Buy), while Tractor Supply holds a Zacks Rank of 4 (Sell) [3][7].

Group 1: Suzano (SUZ) - Suzano is a producer of eucalyptus pulp and paper, holding a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [1] - The company has a PEG ratio of 0.08 compared to the industry average of 0.32, and possesses a Growth Score of A [1] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 34.8% over the last 60 days [2] - The company has a PEG ratio of 0.96 compared to the industry average of 1.49, and possesses a Growth Score of A [2] Group 3: The ODP Corporation (ODP) - The ODP Corporation provides business services, products, and digital workplace technology solutions, also holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 9% over the last 60 days [3] - The company has a PEG ratio of 0.44 compared to the industry average of 3.48, and possesses a Growth Score of B [3]

ODP Corp. (ODP) closed the last trading session at $17.18, gaining 27.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $31 indicates an 80.4% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $12.49. While the lowest estimate of $17 indicates a 1.1% decline from the current price level, the most optimistic analyst expects the ...

Financial Data and Key Metrics Changes - The company generated total revenue of $1.7 billion in Q1 2025, reflecting a 9% decline compared to the same quarter last year, but showing improvement in year-over-year trends compared to prior quarters [20] - Adjusted EBITDA was $76 million, down from $91 million in the previous year, while adjusted free cash flow increased significantly to $45 million from $17 million [23][25] - GAAP operating loss was $32 million compared to a GAAP operating income of $41 million in the prior year [22] Business Line Data and Key Metrics Changes - The consumer division, Office Depot, reported sales of $838 million, down 11% year-over-year, but showed improved trends with a 500 basis point improvement in same-store sales [25][26] - ODP Business Solutions reported revenue of $852 million, down 8% year-over-year, but showed slight improvement compared to the previous quarter [28] - The supply chain business, VARE, achieved over 85% year-over-year revenue growth from third-party customers, with third-party revenue reaching $17 million, up 89% [12][33] Market Data and Key Metrics Changes - The company is expanding into the hospitality market, which is valued at $16 billion, and has established partnerships with major suppliers to support this initiative [14][15] - The onboarding of new business contracts has been slower than anticipated, but progress is being made, particularly in the hospitality sector [11][12] Company Strategy and Development Direction - The company is focused on its "Optimize for Growth" plan, which aims to reduce fixed costs, enhance B2B capabilities, and decrease reliance on retail [7][17] - The strategy includes leveraging core strengths to expand into higher growth segments such as hospitality and supply chain services [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving trends within the consumer business and anticipates better performance in the B2B segment in the second half of the year [40][41] - The company is actively managing potential tariff impacts and has diversified its sourcing strategy to mitigate risks [37][68] Other Important Information - The company closed nine retail stores as part of its restructuring plan and is focused on optimizing cash flow and margin dollars [18][52] - The balance sheet remains solid, with total liquidity of $653 million and total debt of $262 million [35] Q&A Session Summary Question: Insights into retail momentum and sales strategies - Management highlighted four key strategies driving improved performance: enhanced customer engagement, a new merchandising strategy, daily performance management, and targeted sales promotions [45][46][48] Question: Future pace of store closures - The company will evaluate store closures based on cash flow optimization and margin generation, with a focus on maintaining strong performance [51][52] Question: Onboarding delays for new contracts - Delays are attributed to longer lead times in the hospitality sector and the complexity of onboarding large contracts like CoreTrust [55][56] Question: Categories strengthening in retail - Management noted success in non-tariff categories and a shift to a more value-oriented merchandising strategy [63][64] Question: Impact of tariffs on business - The company believes it has mitigated most tariff impacts through strategic sourcing and pricing adjustments [66][68] Question: Converting new business pipeline into revenue - New leadership and a rigorous management system are being implemented to enhance conversion rates for new business opportunities [89][90]

Financial Data and Key Metrics Changes - The company generated total revenue of $1.7 billion in Q1 2025, reflecting a 9% decline compared to the same quarter last year, but showing improvement in year-over-year trends compared to prior quarters [19] - Adjusted EBITDA was $76 million, down from $91 million in the previous year, while adjusted free cash flow increased significantly to $45 million, more than double the $17 million generated in the same period last year [21][23] - GAAP operating loss was $32 million, compared to a GAAP operating income of $41 million in the prior year, primarily due to restructuring expenses and asset impairments [20] Business Line Data and Key Metrics Changes - The consumer division, Office Depot, reported sales of $838 million, down 11% year-over-year, but showed a 500 basis point improvement in same-store sales compared to the previous year [23][24] - ODP Business Solutions reported revenue of $852 million, down 8% year-over-year, impacted by cautious business conditions and a large customer loss from the previous year [26] - The supply chain business, VARE, achieved over 85% year-over-year revenue growth from third-party customers, highlighting strong demand for its services [12][31] Market Data and Key Metrics Changes - The company is expanding into the hospitality market, which is valued at $16 billion, and has established partnerships with major suppliers to support this initiative [14][15] - The onboarding of new business contracts, including a significant contract with CoreTrust, is ongoing, with expectations for these to contribute more meaningfully in the second half of the year [11][27] Company Strategy and Development Direction - The company is focused on its "Optimize for Growth" plan, which aims to realign its organizational structure and reduce fixed costs while enhancing its B2B pivot and expanding into higher growth segments [7][16] - The strategy includes reducing reliance on retail and increasing operational flexibility, with a focus on capitalizing on core strengths in supply chain and distribution [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving trends within the consumer business and anticipates better performance in the B2B segment as new customers are onboarded and the hospitality sector gains traction [36][39] - The company is actively monitoring the evolving tariff situation and has taken proactive measures to mitigate potential impacts, including diversifying sourcing strategies [35][66] Other Important Information - The company closed nine retail stores as part of its restructuring plan and eliminated areas of corporate support to reduce costs [17] - Total liquidity at the end of the quarter was $653 million, consisting of $185 million in cash and $468 million in available credit [33] Q&A Session Summary Question: Insights into retail momentum and sales strategies - Management highlighted four key strategies driving improved performance: enhanced customer engagement, a revised merchandising strategy, a daily management system, and targeted sales promotions [42][44][46] Question: Future pace of store closures - The company will evaluate store closures based on optimizing cash flow and margin dollars, with ongoing assessments of store performance [49][50] Question: Onboarding delays for new contracts - Delays are attributed to longer lead times in the hospitality sector and the complexity of onboarding large contracts like CoreTrust [52][54] Question: Categories strengthening in retail - Management noted success in non-tariff categories and a shift to a more value-oriented merchandising strategy, which has improved sales [61][62] Question: Impact of tariffs on business - The company believes it has mitigated most tariff impacts through strategic sourcing and pricing adjustments, with ongoing monitoring of the situation [64][66] Question: Converting new business pipeline into revenue - New leadership and a rigorous management system are being implemented to enhance the conversion of the business pipeline into revenue [88][90] Question: Update on stock buyback - Management reassured that they continually evaluate stock repurchase opportunities, reflecting confidence in the company's future [93]

Financial Data and Key Metrics Changes - The company generated total revenue of $1.7 billion in Q1 2025, reflecting a 9% decline compared to the same quarter last year, but showing improvement in year-over-year trends compared to prior quarters [19] - Adjusted EBITDA for the quarter was $76 million, down from $91 million in the previous year, while adjusted free cash flow increased significantly to $45 million from $17 million [22][24] - GAAP operating loss was $32 million compared to a GAAP operating income of $41 million in the prior year, with adjusted operating income at $54 million, down from $66 million [20] Business Line Data and Key Metrics Changes - The consumer division, Office Depot, reported sales of $838 million, down 11% year-over-year, but showed a 500 basis point improvement in same-store sales metrics [24][25] - ODP Business Solutions reported revenue of $852 million, down 8% year-over-year, impacted by cautious business conditions and a large customer loss from the previous year [27] - The supply chain business, VARE, achieved over 85% year-over-year revenue growth from third-party customers, with third-party revenue reaching $17 million, up 89% [12][32] Market Data and Key Metrics Changes - The company is expanding into the hospitality market, which is valued at $16 billion, and has established partnerships with major suppliers to support this initiative [13][14] - The onboarding of new business contracts, including a significant contract with CoreTrust, is ongoing, with expectations for these to contribute more meaningfully in the second half of the year [11][28] Company Strategy and Development Direction - The company is focused on a B2B pivot and expanding into higher growth segments such as hospitality and supply chain services, while reducing reliance on retail [7][16] - The "Optimize for Growth" restructuring plan aims to realign organizational structure and reduce fixed costs, with nine retail stores closed during the quarter [17][20] - The company is actively managing its balance sheet and liquidity, ending the quarter with total liquidity of $653 million [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving trends within the consumer business and anticipates better performance in the B2B segment as new customers are onboarded [37][39] - The company is closely monitoring the evolving tariff situation and has taken proactive measures to mitigate potential impacts [36][41] - Management expects significant improvements in adjusted free cash flow generation compared to the previous year, with a focus on driving cash and margin [37][39] Other Important Information - The company has made significant progress in cash management, achieving a cash conversion improvement that contributed to the increase in adjusted free cash flow [13] - The company is evaluating the pace of store closures in light of improved retail performance and ongoing strategic initiatives [51] Q&A Session Summary Question: Insights into retail momentum and sales strategies - Management highlighted four key strategies driving improved performance, including enhanced customer engagement, a revised merchandising strategy, daily performance management, and targeted sales promotions [44][48] Question: Future pace of store closures - Management indicated that the "Optimize for Growth" plan will evaluate store performance to maximize cash flow and margin, with ongoing assessments of store closures [51][52] Question: Onboarding delays for new contracts - Management noted that onboarding delays are due to longer lead times in the hospitality sector and the complexity of large contracts like CoreTrust [55][56] Question: Categories showing strength in retail - Management reported success in non-tariff categories and a shift to a more value-oriented merchandising strategy, which has improved sales performance [63][64] Question: Impact of tariffs on business - Management believes they have mitigated most tariff impacts through diversified sourcing strategies and proactive pricing adjustments [66][68] Question: Converting new business pipeline into revenue - Management is focusing on bringing in qualified leadership, rigorous management systems, and frequent high-level meetings with new partners to drive conversion [90][91] Question: Update on stock buyback - Management stated that they continually evaluate stock repurchase opportunities and have confidence in the company's future [96]

Financial Performance - Consolidated YOY comparable revenue trends improved in Q1 2025[9] - Adjusted free cash flow significantly increased YOY, reaching $45 million in Q1 2025, compared to $17 million in the same period last year[9, 19] - Adjusted EBITDA was $76 million[18, 23] - Adjusted operating income was $54 million[18, 23] Business Segments - Office Depot's same store sales improved by 500 basis points YOY[9] - Veyer's revenue from third-party customers grew strongly, up 89% to $17 million in Q1 2025[9, 34] - ODP Business Solutions' adjacency categories accounted for 44% of the division's total revenue[28] Strategic Initiatives - The company is executing the "Optimize for Growth" plan, expecting a $380 million uplift in EBITDA and $1.3 billion in total value creation[12] - The company closed 9 retail store locations in Q1 2025, incurring $48 million in restructuring costs[12] - The company is expanding into the hospitality market, a $16 billion addressable market[10, 11] Financial Position - The company has a strong liquidity position, with $653 million in total available liquidity, including $185 million in cash and cash equivalents[38]

Group 1: Earnings Performance - ODP Corp. reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing a slight increase from $1.05 per share a year ago, resulting in an earnings surprise of 63.08% [1] - The company posted revenues of $1.7 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.03%, although this represents a decline from year-ago revenues of $1.87 billion [2] Group 2: Stock Performance and Outlook - ODP Corp. shares have declined approximately 40.1% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.26 on revenues of $1.58 billion, and $2.56 on revenues of $6.57 billion for the current fiscal year [7] Group 3: Industry Context - The Retail - Miscellaneous industry, to which ODP Corp. belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable position as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

CONTACT: Tim Perrott Investor Relations 561-438-4629 Tim.Perrott@theodpcorp.com The ODP Corporation Announces First Quarter 2025 Results First Quarter Revenue of $1.7 Billion with GAAP EPS of $(0.97); Adjusted EPS of $1.06 GAAP Operating Loss of $32 Million; Net Loss of $29 Million; Operating Cash Flow of $57 Million Adjusted EBITDA of $76 Million; Adjusted Free Cash Flow of $45 Million Announced Key Supplier Partnerships in Hospitality Industry Enhancing Foundation for Growth Exhibit 99.1 Announced New B2B ...