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

Advantage Solutions (NASDAQ:ADV) released its earnings results on Wednesday. The company reported ($4.85) EPS for the quarter, missing the consensus estimate of ($0.43) by ($4.42), FiscalAI reports. The business had revenue of $889.45 million for the quarter, compared to analyst estimates of $887.30 million. Advantage Solutions had a negative return on equity of 37.22% and a negative net margin of 6.78%.

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 Down 24.4%

Shares of Advantage Solutions stock traded down $10.16 during trading hours on Wednesday, reaching $31.56. The company’s stock had a trading volume of 158,939 shares, compared to its average volume of 87,428. The company has a market capitalization of $419.75 million, a P/E ratio of -1.70 and a beta of 2.18. The stock’s fifty day simple moving average is $39.14 and its two-hundred day simple moving average is $29.71. Advantage Solutions has a one year low of $12.23 and a one year high of $53.63. The company has a debt-to-equity ratio of 3.18, a quick ratio of 1.95 and a current ratio of 1.95.

Insider Activity at Advantage Solutions

In other Advantage Solutions news, CEO David A. Peacock bought 800 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were bought at an average price of $34.60 per share, for a total transaction of $27,680.00. Following the acquisition, the chief executive officer directly owned 216,364 shares of the company’s stock, valued at approximately $7,486,194.40. The trade was a 0.37% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 9.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Advantage Solutions

A number of hedge funds have recently added to or reduced their stakes in ADV. Stoic Point Capital Management LLC purchased a new stake in shares of Advantage Solutions in the fourth quarter worth approximately $1,375,000. Inspire Investing LLC boosted its position in shares of Advantage Solutions by 87.3% during the fourth quarter. Inspire Investing LLC now owns 554,271 shares of the company’s stock valued at $488,000 after buying an additional 258,379 shares during the last quarter. Graham Capital Management L.P. grew its holdings in Advantage Solutions by 285.1% during the fourth quarter. Graham Capital Management L.P. now owns 88,862 shares of the company’s stock worth $78,000 after buying an additional 65,785 shares in the last quarter. Squarepoint Ops LLC grew its holdings in Advantage Solutions by 760.9% during the fourth quarter. Squarepoint Ops LLC now owns 175,542 shares of the company’s stock worth $154,000 after buying an additional 155,151 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in Advantage Solutions by 37.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,761,016 shares of the company’s stock valued at $3,310,000 after buying an additional 1,024,633 shares during the last quarter. Institutional investors and hedge funds own 49.82% of the company’s stock.

Analysts Set New Price Targets

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

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.