Financial Data and Key Metrics Changes - The company reported net revenues of $785 million for Q4 2025, an increase of approximately 3% year-over-year, with Adjusted EBITDA of $88 million [6][19] - For the full year 2025, Branded Services generated $1 billion in revenues, down 9% year-over-year, and Adjusted EBITDA of $143 million, down 21% [19] - Experiential Services saw revenues of approximately $280 million in Q4, up 19% year-over-year, and Adjusted EBITDA of $28 million, up 115% [20] - Retailer Services reported Q4 revenues of $246 million, up 1%, but Adjusted EBITDA decreased by 22% year-over-year [22] Business Line Data and Key Metrics Changes - Experiential Services showed strong performance with a 15% increase in event volume and execution rates exceeding 93% [20][15] - Branded Services faced challenges due to sustained softness in CPG spending and client insourcing, impacting revenue and EBITDA negatively [19][15] - Retailer Services experienced project timing issues and cautious retail spending, leading to a mismatch in costs and revenue recognition [22][15] Market Data and Key Metrics Changes - Consumer behavior remains cautious, with lower-end consumers seeking promotions and higher-end consumers shifting to healthier options, affecting overall spending [9] - The company noted a pullback in traditional marketing as retailers demand more investment in their retail media networks [9] Company Strategy and Development Direction - The company is refinancing its debt to extend maturities to 2030, enhancing liquidity and operational flexibility [4][5] - A focus on divesting non-core businesses to streamline operations and redeploy capital into higher return opportunities [5] - The company is investing in IT transformation and technology to drive efficiencies and improve service delivery [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, expecting revenue growth to be flat to low single digits, driven by Experiential Services and stabilization in Retailer Services [17][30] - Adjusted EBITDA is expected to be flat to down mid-single digits, reflecting ongoing macroeconomic headwinds and shifts towards lower-margin services [17][30] - The company anticipates unlevered free cash flow of approximately $250 million-$275 million for the year, supported by improved working capital management [30] Other Important Information - The company ended the year with $241 million in cash, bolstered by divestiture proceeds and improved working capital performance [25][26] - The net leverage ratio was approximately 4.4x Adjusted EBITDA, above the long-term target of 3.5x, with plans for debt paydown [25] Q&A Session Summary Question: On the debt exchange and its implications - Management acknowledged the increase in borrowing costs but emphasized the importance of extending the debt maturity to 2030 for operational flexibility [34][36] Question: Guidance on revenue and EBITDA growth - Management explained that high labor costs and business mix shifts are impacting margins, but they expect stabilization and improvements in the Branded Services segment over time [39][40] Question: Revenue expectations for 2026 - Management indicated that growth in Experiential Services and stabilization in Retailer Services would drive revenue growth, with Branded Services expected to improve gradually [48][49] Question: Impact of divestitures on revenue - Management confirmed that divestitures would impact revenue by approximately $20 million in 2025, with a corresponding EBITDA effect [56][57]

Financial Data and Key Metrics Changes - The company reported net revenues of $785 million for Q4 2025, an increase of approximately 3% year-over-year, with Adjusted EBITDA of $88 million reflecting ongoing shifts towards more labor-intensive, lower-margin businesses [6][17] - For the full year 2025, the company generated $3.1 billion in revenues, with Adjusted EBITDA of $400 million, down from the previous year [19][27] - The cash position strengthened to $241 million, up roughly $40 million sequentially, driven by improved working capital performance and proceeds from divestitures [24][27] Business Line Data and Key Metrics Changes - **Branded Services**: Q4 revenues were approximately $259 million, down 9% year-over-year, with Adjusted EBITDA of $39 million, down 29% [19][20] - **Experiential Services**: Q4 revenues reached approximately $280 million, up 19% year-over-year, with Adjusted EBITDA of $28 million, up 115% [20][21] - **Retailer Services**: Q4 revenues were $246 million, up 1%, but Adjusted EBITDA decreased by 22% to $20 million due to project delays and increased costs [22][23] Market Data and Key Metrics Changes - Consumer behavior remains cautious, with lower-end consumers seeking promotions and higher-end consumers shifting to healthier options, impacting overall spending [9][10] - The company noted a pullback in traditional marketing as retailers demand more investment in their retail media networks, affecting commission revenues [9][10] Company Strategy and Development Direction - The company is focused on refinancing its debt to enhance liquidity and operational flexibility, with over 99% acceptance of a new debt package extending maturities to 2030 [4][5] - Strategic actions include divesting three non-core businesses to streamline focus and redeploy capital into higher return opportunities [5][6] - The company is investing in technology and productivity improvements, including a multi-year IT transformation and AI integration to enhance operational efficiency [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, expecting revenue growth to be flat to up low single digits, driven by momentum in Experiential Services and stabilization in Retailer Services [17][28] - Adjusted EBITDA is expected to be flat to down mid-single digits, reflecting ongoing macroeconomic headwinds and shifts towards lower-margin services [17][28] - The company anticipates unlevered free cash flow of approximately $250 million-$275 million for the year, supported by improved working capital management [29][30] Other Important Information - The company plans to apply approximately $90 million to debt paydown as part of its refinancing strategy [25][27] - DSO improved to approximately 57 days, the lowest level in the company's history, reflecting better working capital management [26][27] Q&A Session Summary Question: On the debt exchange and its implications - Management acknowledged the increased borrowing costs associated with the debt extension but emphasized the importance of extending the maturity to 2030 for operational flexibility [34][35] Question: Guidance on revenue and EBITDA growth - Management explained that high labor costs and business mix shifts are impacting EBITDA growth, but they expect stabilization and improvements in the Branded Services segment over time [37][38] Question: Factors driving Branded Services recovery - Management noted client losses due to pricing issues but highlighted new leadership and a robust pipeline of new business as potential catalysts for recovery in the Branded Services segment [47][49]

Financial Data and Key Metrics Changes - Net revenues for Q4 2025 were $785 million, up approximately 3% year-over-year, with Adjusted EBITDA of $88 million reflecting ongoing shifts towards more labor-intensive, lower-margin businesses [6][19] - Full year 2025 Adjusted unlevered free cash flow achieved an approximately 80% conversion rate, with a strong second half performance [27][29] - The company ended the year with $241 million in cash, a significant increase from previous periods, bolstered by strong cash flow performance and divestitures [5][24] Business Line Data and Key Metrics Changes - Branded Services generated approximately $259 million in revenues for Q4 2025, down 9% year-over-year, with Adjusted EBITDA of $39 million, down 29% [19] - Experiential Services saw revenues of approximately $280 million in Q4 2025, up 19% year-over-year, with Adjusted EBITDA of $28 million, up 115% [20] - Retailer Services reported Q4 revenues of $246 million, up 1%, but Adjusted EBITDA decreased by 22% year-over-year to $20 million [21] Market Data and Key Metrics Changes - Consumer behavior remains cautious, with lower-end consumers seeking promotions and higher-end consumers shifting to healthier options, impacting overall spending [9] - Retailer Services faced challenges due to cautious retail spending, particularly in grocery, leading to project timing mismatches [16][21] Company Strategy and Development Direction - The company is focused on refinancing its debt to extend maturities to 2030, enhancing liquidity and operational flexibility [4][5] - Strategic divestitures of non-core businesses aim to streamline focus and redeploy capital into higher return opportunities [5][8] - Investments in technology and IT transformation are expected to drive efficiencies and improve service delivery [10][12] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating flat to low single-digit revenue growth driven by Experiential Services and stabilization in Retailer Services [17][28] - The company expects Adjusted EBITDA to be flat to down mid-single digits, reflecting ongoing macroeconomic headwinds and shifts towards lower-margin services [17][28] - Management highlighted the importance of execution discipline and productivity initiatives to improve margins over time [17][39] Other Important Information - The company plans to apply approximately $90 million to debt paydown as part of its refinancing strategy [25] - Cash flow remains a core strength, with expectations of unlevered free cash flow of approximately $250 million-$275 million for the year [29] Q&A Session Summary Question: On the debt exchange and its implications - Management acknowledged the increase in borrowing costs but emphasized the importance of extending the debt maturity to 2030 for operational flexibility [33][34] Question: On revenue and EBITDA growth expectations - Management discussed the impact of high labor costs and business mix on margins, indicating a path towards convergence of revenue and EBITDA growth over time [37][38] Question: On Branded Services recovery catalysts - Management noted client losses due to pricing issues but expressed optimism about new leadership and a robust pipeline of new business opportunities [48][50] Question: On the impact of divestitures - Management confirmed that divestitures contributed approximately $20 million to revenues in 2025, with an EBITDA impact of over $10 million [51][54]

Financial Performance - Revenues decreased by 2.6% year-over-year to $781 million[16] - Adjusted EBITDA decreased by 1.4% year-over-year to $100 million[16] - Adjusted Unlevered Free Cash Flow was $98 million, approximately 100% of EBITDA[18] - Net leverage ratio decreased to 4.4x, with $201 million in cash and cash equivalents at the end of the quarter[18] Segment Performance - Experiential Services EBITDA experienced double-digit growth due to staffing and execution rates exceeding 90%[18] - Branded Services faced ongoing headwinds due to macro pressure[18] - Retailer Services was impacted largely by timing issues[18] Strategic Initiatives - A new Instacart partnership provides value-added service aiding execution at retail and visibility[18] - Centralized labor model supports retention, utilization, and execution consistency across the labor network[22] Outlook - Revenue guidance reiterated as flat to down low-single digits[28] - Adjusted EBITDA now expected to be down mid-single digits[28] - Adjusted UFCF conversion expected above 50%, with potential upside from continued working-capital improvements[28]

Financial Data and Key Metrics Changes - The company's second quarter revenues were $736 million, and adjusted EBITDA was $86 million, down 24% year-over-year [5][22] - The decline in EBITDA was primarily attributed to a client loss in Branded Services from the previous year, which accounted for the entirety of the EBITDA decline [6][22] - The company expects cash generation in the second half of the year to be above normalized levels, with a projected net free cash flow conversion rate of at least 25% of adjusted EBITDA next year and beyond [20][30] Business Line Data and Key Metrics Changes - In Branded Services, revenues were $257 million, and adjusted EBITDA was $34 million, down 21% year-over-year [22] - Experiential Services generated $249 million in revenues and $26 million in adjusted EBITDA, up 614% year-over-year [22] - Retailer Services saw revenues of $231 million, with adjusted EBITDA growing 8% to $26 million, driven by improved staffing levels and increased project activity [23] Market Data and Key Metrics Changes - The company serves over 4,000 clients and retail stores operating in over 90% of ZIP codes in the U.S., providing a unique perspective on consumer behavior [6] - Retailers reported losing nearly 40% of potential sales when products are not carried or are out of stock, highlighting the importance of the company's merchandising services [7] - 85% of retailers are prioritizing private brands to address channel shifts and shopper preferences, indicating a favorable market for the company's private brand advisory services [8] Company Strategy and Development Direction - The company is focused on completing the implementation of its data architecture and system foundation by 2026, which will enhance service delivery and client value [14] - The development of the new Pulse system, an AI-enabled decision engine, aims to improve commercial decision-making speed and efficiency [15] - The company is investing in a centralized labor management model expected to yield benefits in labor utilization, teammate experience, and overall efficiency [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to recruit and retain personnel to meet client demand, with staffing levels largely returning to desired levels for the second half of the year [5][19] - The company anticipates sequential improvement in branded services as it laps client exits and losses from the first half of the year [12] - Management reaffirmed 2025 guidance, projecting revenue and adjusted EBITDA to be flat to down low single digits compared to the prior year, supported by favorable demand signals [19][28] Other Important Information - The company ended the quarter with $103 million in cash, reflecting a heavier use of working capital in the first half of the year [24] - The net leverage ratio was approximately 4.6x adjusted EBITDA, with expectations for this level to taper over the balance of the year [26] - Adjusted unlevered free cash flow was $57 million, with a conversion rate of 66%, driven by lower than expected capital expenditures [27] Q&A Session Summary Question: About branded services and investment reductions impacting brokerage and omni commerce marketing services - Management indicated that reductions depend on client-specific situations rather than a broad pattern across all clients [35] Question: On the new workforce system and transformation costs - Management noted significant reductions in restructuring costs and expects continued decline in transformation costs, with improvements in labor utilization and teammate experience [40][41] Question: On branded EBITDA heading into the second half - Management highlighted expected improvements from new business wins, seasonality, and better cost management as key drivers for growth [51][52] Question: On cash flow and CapEx - Management explained that improved cash flow is primarily driven by better DSO and lower restructuring costs, with some CapEx shifting into 2026 [46][56] Question: On wage inflation and labor availability - Management reported consistent wage inflation around 3% for the year, with pricing nearly offsetting labor inflation [58]

Financial Data and Key Metrics Changes - The company's first quarter revenues were $696 million, down 5% year-over-year, and adjusted EBITDA was $58 million, down 18% year-over-year [5][18] - The decline in adjusted EBITDA was primarily due to intentional client exits and transformation-related investments [6][18] Business Line Data and Key Metrics Changes - In Branded Services, revenues were $257 million and adjusted EBITDA was $28 million, down 9% year-over-year [20] - In Experiential Services, revenues were $221 million and adjusted EBITDA was $12 million, down 12% year-over-year [21] - In Retailer Services, revenues were $218 million and adjusted EBITDA was $18 million, down 3% and 7% year-over-year, respectively [21] Market Data and Key Metrics Changes - Consumer confidence declined, leading to lower than expected consumer purchases and a reevaluation of spending levels by clients [6][18] - Retailers experienced destocking trends, impacting overall order volumes [56] Company Strategy and Development Direction - The company is focused on modernizing its tech infrastructure and enhancing analytics capabilities to drive efficiency [13][14] - A task force has been mobilized to improve labor utilization and address staffing challenges [15][17] - The company is committed to being a cost-leading solutions partner to CPGs and retailers despite a softer growth environment [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging labor market impacting event staffing and project execution [9][10] - Despite near-term challenges, management remains optimistic about long-term earnings potential and cash generation [18][28] Other Important Information - The company is lowering its revenue and adjusted EBITDA outlook to flat to down low single digits for the year [18] - The ERP implementation is expected to yield greater cash flow benefits as systems are better utilized [26] Q&A Session Summary Question: Any notable changes in the macro environment? - Management noted improvements in hiring rates and smoothing out of labor challenges in Q2 [33][35] Question: Have labor costs increased? - Management indicated that labor cost inflation is in line with the macro market, not a significant factor in staffing issues [41][42] Question: What type of debt was repurchased? - The company repurchased bonds during the quarter [46] Question: What is the impact of destocking on orders? - Destocking improved as the quarter progressed, but data for April was not yet available [72] Question: Breakdown of consumer products versus food companies? - Approximately 70% of the portfolio is in food, with strong presence in personal care and household goods [76]

Financial Data and Key Metrics Changes - The company's first quarter revenues were $696 million, down 5% year-over-year, and adjusted EBITDA was $58 million, down 18% year-over-year [4][5][15] - The decline in adjusted EBITDA was primarily due to intentional client exits and transformation-related investments [5][15] Business Line Data and Key Metrics Changes - In Branded Services, revenues were $257 million and adjusted EBITDA was $28 million, down 9% year-over-year [18] - Experiential Services generated $221 million in revenues and $12 million in adjusted EBITDA, down 12% year-over-year [19] - Retailer Services had revenues of $218 million and adjusted EBITDA of $18 million, down 3% and 7% year-over-year, respectively [19] Market Data and Key Metrics Changes - Consumer confidence declined, leading to lower consumer purchases and reevaluation of spending by clients [5][6] - Retailers experienced destocking trends, impacting overall order volumes [50][53] Company Strategy and Development Direction - The company is focused on modernizing its tech infrastructure and enhancing analytics capabilities to drive efficiency [11][12] - A task force has been mobilized to improve labor utilization and address staffing challenges [13][14] - The company is committed to being a cost-leading solutions partner to CPGs and retailers despite a softer growth environment [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging labor market affecting event staffing and project execution [7][10] - Despite near-term challenges, the company remains optimistic about future performance and has a robust new business pipeline [6][7] - The revenue and adjusted EBITDA outlook has been lowered to flat to down low single digits due to macroeconomic factors [15][16] Other Important Information - The company ended the quarter with $121 million in cash and a net leverage ratio of approximately 4.4x adjusted EBITDA [20][26] - The ERP implementation is expected to yield greater cash flow benefits as systems are better utilized [25][26] Q&A Session Summary Question: Any notable changes in the macro environment? - Management noted improvements in hiring rates and smoother staffing challenges in Q2 compared to Q1 [32][33] Question: Have labor costs increased due to staffing issues? - Management indicated that labor cost inflation is in line with the macro market, and staffing issues were more related to talent acquisition strategies [39][40] Question: What is the impact of staffing shortages on EBITDA? - The majority of the decline in EBITDA was attributed to staffing shortages [68] Question: Is destocking continuing into Q2? - Destocking improved as Q1 progressed, but data for April was not yet available to confirm if it had completely stopped [70] Question: Breakdown of consumer products versus food companies? - Approximately 70% of the portfolio is in food, with strong presence in personal care and household goods [73]

Q1 2025 Performance - Revenues net of pass-through costs decreased by 5% year-over-year to $696 million[17] - Adjusted EBITDA decreased by 18% year-over-year to $58 million[17] - Adjusted Unlevered Free Cash Flow was $(7) million[17] - Net Leverage Ratio was 44x[17] Segment Performance - Branded Services revenues decreased by 9% year-over-year[49] Adjusted EBITDA decreased by 19% year-over-year[49] - Experiential Services revenues increased by 2% year-over-year[53] Adjusted EBITDA decreased by 28% year-over-year[53] - Retailer Services revenues decreased by 3% year-over-year to $2179 million[57] Adjusted EBITDA decreased by 7% year-over-year[58] 2025 Guidance - Revenues are expected to range from down low single digits to flat compared to the prior year[43] - Adjusted EBITDA is expected to range from down low single digits to flat compared to the prior year[43] - Adjusted UFCF Conversion is expected to be >50% of Adjusted EBITDA[68] Financial Position - Total Net Debt was $1577 billion as of March 31 2025[61]

Financial Performance - FY 2024 revenues reached $3.0 billion, reflecting an 11% year-over-year decrease, but experienced a 0.2% organic growth[16] - Adjusted EBITDA increased by 1.1% year-over-year to $356 million[16] - Adjusted Unlevered Free Cash Flow (FCF) amounted to $335 million, representing approximately 90% conversion[16] - The Net Leverage Ratio stood at 4.0x[16] Segment Highlights - Branded Services experienced challenges due to the macro environment, with revenues of $1.306 billion[50] - Experiential Services demonstrated strong client demand, driving revenue growth to $1.295 billion[55] - Retailer Services showed solid performance with improved execution, achieving revenues of $965 million[59] Strategic Initiatives - The company simplified its business by divesting non-core assets and re-segmenting operations[19] - IT transformation initiatives are being implemented to modernize systems for increased speed and accuracy, with an expected completion in 2026[28] - Workforce optimization is expected to unlock value by enhancing talent deployment in over 85,000 retail stores[33] Future Outlook - 2025 guidance indicates expectations for revenue and Adjusted EBITDA to grow by low single digits[69] - Adjusted UFCF conversion is projected to be greater than 50% of Adjusted EBITDA[69] - IT Transformation Capex for 2024-2026 is estimated at $140 million to $150 million[69, 78]