Advantage Solutions (NASDAQ:ADV) Releases Quarterly Earnings Results, Misses Estimates By $4.42 EPS

Advantage Solutions (NASDAQ:ADV) announced its quarterly earnings data on Wednesday. The company reported ($4.85) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.43) by ($4.42), FiscalAI reports. The firm had revenue of $889.45 million for the quarter, compared to analysts’ expectations of $887.30 million. Advantage Solutions had a negative net margin of 6.78% and a negative return on equity of 37.22%.

Here are the key takeaways from Advantage Solutions’ conference call:

• Second-quarter profitability declined: Net revenue rose 3% year over year to $757 million, but Adjusted EBITDA fell 12% to $76 million, reflecting divestitures, business mix, and segment-specific execution costs.
• Experiential Services remained the strongest growth driver, with revenue up 19%, Adjusted EBITDA up 32%, and event volumes up 18%; management expects continued momentum in the second half and sees durable demand for product demonstrations.
• Branded Services remained under pressure, with revenue down 13% and Adjusted EBITDA down 36% as a result of constrained CPG spending, client insourcing, and customer losses. Management expects only modest improvement in the second half of 2026.
• Retailer Services is expected to improve sequentially as larger projects ramp, although second-quarter Adjusted EBITDA fell approximately 25% because of project timing, a difficult comparison, and higher execution costs.
• The company reiterated full-year revenue, Adjusted EBITDA, and free cash flow guidance, including $250 million to $275 million of Adjusted Unlevered Free Cash Flow. Management expects working-capital pressure from the final SAP implementation to ease and plans to direct most free cash flow toward debt reduction.

Advantage Solutions Stock Performance

Shares of NASDAQ:ADV traded down $8.53 during mid-day trading on Wednesday, reaching $33.19. 198,184 shares of the company traded hands, compared to its average volume of 87,613. The firm has a market cap of $441.47 million, a PE ratio of -1.86 and a beta of 2.18. The company has a debt-to-equity ratio of 3.18, a current ratio of 1.95 and a quick ratio of 1.95. The company’s 50 day moving average price is $39.14 and its 200-day moving average price is $29.71. Advantage Solutions has a 52 week low of $12.23 and a 52 week high of $53.63.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Canaccord Genuity Group increased their price target on shares of Advantage Solutions from $37.50 to $50.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Zacks Research raised Advantage Solutions from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Advantage Solutions in a research report on Monday. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $34.38.

Insider Buying and Selling at Advantage Solutions

In other Advantage Solutions news, CEO David A. Peacock bought 800 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was purchased at an average price of $34.60 per share, for a total transaction of $27,680.00. Following the completion of the transaction, the chief executive officer owned 216,364 shares of the company’s stock, valued at $7,486,194.40. This trade represents a 0.37% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 9.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Advantage Solutions

Institutional investors have recently added to or reduced their stakes in the stock. Stoic Point Capital Management LLC purchased a new position in shares of Advantage Solutions in the fourth quarter worth $1,375,000. Charles Schwab Investment Management Inc. grew its stake in Advantage Solutions by 37.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,761,016 shares of the company’s stock valued at $3,310,000 after acquiring an additional 1,024,633 shares in the last quarter. Russell Investments Group Ltd. grew its stake in Advantage Solutions by 337.1% during the third quarter. Russell Investments Group Ltd. now owns 1,134,401 shares of the company’s stock valued at $1,736,000 after acquiring an additional 874,881 shares in the last quarter. Millennium Management LLC increased its holdings in Advantage Solutions by 71.7% in the 3rd quarter. Millennium Management LLC now owns 1,973,940 shares of the company’s stock valued at $3,020,000 after acquiring an additional 824,239 shares during the last quarter. Finally, Vanguard Group Inc. increased its holdings in Advantage Solutions by 40.7% in the 3rd quarter. Vanguard Group Inc. now owns 2,675,768 shares of the company’s stock valued at $4,094,000 after acquiring an additional 773,560 shares during the last quarter. 49.82% of the stock is owned by hedge funds and other institutional investors.

Advantage Solutions Company Profile

Advantage Solutions is a leading sales and marketing agency that provides outsourced solutions to consumer packaged goods companies. The firm’s offerings include field sales execution, retail merchandising, in-store and shopper marketing, e-commerce activation and data-driven analytics. By deploying dedicated sales teams alongside proprietary technology, Advantage Solutions helps brands optimize shelf placement, ensure compliance with promotional programs and strengthen consumer engagement.

The company’s service portfolio spans field sales and marketing, retail execution, brand ambassador programs, digital and experiential promotions, and shopper insights.