Advantage Solutions Reports First Quarter 2025 Results

Core Insights - Advantage Solutions Inc. reported a decline in revenues and an increase in net loss for Q1 2025, reflecting a challenging operating environment and heightened market uncertainty [2][4][7] Financial Performance - Total revenues for the three months ended March 31, 2025, were $822 million, down from $861 million in the same period last year, representing a decrease of 4.6% [2][7] - The net loss increased to $56 million compared to a net loss of $50 million in Q1 2024, marking a 12% increase in losses [2][7] - Adjusted EBITDA fell to $58 million, down 17.6% from $70.6 million in the prior year, with an adjusted EBITDA margin of 7.1% compared to 8.2% [2][7] Operational Challenges - The decline in financial performance was attributed to intentional client exits, anticipated transformation spending, labor shortages in certain regions, and a decrease in retail inventory leading to lower order volumes [7] - Despite these challenges, the company remains focused on transformation initiatives aimed at driving efficiency and enhancing growth and cash flow in the future [4][7] Strategic Focus - The company is committed to disciplined capital allocation, including voluntary debt repurchases and share buybacks totaling approximately $20 million and $1 million, respectively [7] - Management has lowered guidance due to macroeconomic uncertainties but remains optimistic about developments in the new business pipeline [4][7]