Centralized labor model implementation continues to enhance execution, productivity, and margins
Reaffirming 2026 guidance for Revenues, Adjusted EBITDA and Cash Flow
ST. LOUIS, May 06, 2026 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ:ADV) ("Advantage," "Advantage Solutions," the "Company," "we," or "our"), a leading business solutions provider to consumer goods manufacturers and retailers, today reported financial results for the three months ended March 31, 2026.
Revenues for the three months ended March 31, 2026 were $869.6 million compared with $821.8 million, and net loss was $71.8 million compared with a net loss of $56.1 million.
Q1'26 Financial Highlights
•
Revenues increased 5.8% to $869.6 million and Adjusted EBITDA increased 16.4% to $67.7 million
•
Experiential Services delivered very strong growth driven by higher event volumes and improved execution, while Branded Services remained under pressure, and Retailer Services showed improved profitability
•
Strengthened the balance sheet through debt reduction and the extension of maturities to 2030, improving liquidity and financial flexibility. Ended the quarter with $144 million in cash after $131 million in debt paydown
"Advantage delivered a solid start to the year, highlighted by strong growth in Experiential Services and disciplined execution across the business," said Advantage CEO Dave Peacock. "While the environment remains uncertain, we are making meaningful progress on our growth and productivity initiatives, including our centralized labor model and technology transformation. We remain focused on driving efficiency, generating strong cash flow, and positioning the Company for sustainable, profitable growth."
Consolidated Financial Summary
(amounts in thousands)
Three Months Ended March 31,
Change (Reported)
2026
2025
$
%
Total Revenues
$
869,601
$
821,792
$
47,809
5.8%
Total Net Loss
$
(71,831)
$
(56,130)
$
(15,701)
(28.0%)
Total Adjusted EBITDA
$
67,747
$
58,181
$
9,566
16.4%
Adjusted EBITDA Margin
7.8%
7.1%
Segment Financial Summary
Revenues
Segment
Three Months Ended March 31,
(amounts in thousands)
2026
2025
YoY (Reported)
Branded Services
$
256,992
$
289,841
(11.3%)
Experiential Services
$
385,480
$
314,020
22.8%
Retailer Services
$
227,129
$
217,931
4.2%
Total
$
869,601
$
821,792
5.8%
Operating (Loss) Income
Three Months Ended March 31,
Segment
2026
2025
YoY (Reported)
Branded Services
$
(16,061)
$
(15,322)
(4.8%)
Experiential Services
$
11,499
$
(3,504)
NMF
Retailer Services
$
8,724
$
4,205
NMF
Total
$
4,162
$
(14,621)
NMF
Adjusted EBITDA
Three Months Ended March 31,
Segment
2026
2025
YoY (Reported)
Branded Services
$
20,882
$
27,945
(25.3%)
Experiential Services
$
26,077
$
12,069
116.1%
Retailer Services
$
20,788
$
18,167
14.4%
Total
$
67,747
$
58,181
16.4%
Q1'26 Segment Highlights
Branded Services
Experiential Services
Retailer Services
•
Continued macro pressure, client insourcing, procurement, and select client losses with stabilization initiatives underway
•
Strong Q1 results, with events growth of nearly 20% and improved execution rate (94%) year-over-year and sequentially
•
Revenues and Adjusted EBITDA growth supported by new business wins, pricing, and key client program ramps.
•
Focused on stabilizing the revenue base with stronger client retention, executive engagement, and targeted growth opportunities
•
Increasing profitability by advancing the centralized labor model rollout, enhancing training and safety protocols, and shifting mix towards higher margin events
•
Q1 featured a more moderate impact of the channel mix shift and improving conversion trends in the retail merchandising business
•
Enhancing our value proposition through partnerships, data/analytics, and tools like Pulse to deliver measurable ROI
•
Expecting continued momentum through the year
•
Solid pipeline momentum with new customers and programs expected to support growth
Cash Flow and Balance Sheet Highlights(Amounts in Millions)
Period Ended March 31, 2026
Adjusted Unlevered Free Cash Flow / % of Adjusted EBITDA
$74.4 / 109.8%
Capex
$11
Gross Debt
$1,592
Cash and Cash Equivalents
$144
Net Leverage Ratio(1)
4.2x
Fiscal Year 2026 Outlook(Amounts in Millions)
Revenues
Flat to Up Low Single Digits
Adjusted EBITDA
Flat to Down Mid Single Digits
Adjusted Unlevered Free Cash Flow Conversion(2)
Unlevered: $250, $275M Net: ~25% of EBITDA
Net Interest Expense
$160 to $170
Capex
$50 to $60
2026 revenue outlook excludes reimbursable expenses. 2026 guidance excludes the effect of recently announced divestitures.
Conference Call Details
Date/Time
May 6, 2026, 8:30 am EDT
Dial-in(10 minutes before the call)
(800) 715-9871 within the United States or +1 (646) 307-1963 outside the United StatesConference ID: 6984882
Webcast
Available at: ADV 1Q26 Earnings Webcast
Replay
(800) 770-2030 within the United States or +1(609) 800-9909 outside the United StatesPlayback ID: 6984882#
Investor Contact: [email protected]
Media Contact: [email protected]
NMF = Not Meaningful(1) Net leverage ratio is defined as Net Debt divided by LTM Adjusted EBITDA. (2) Net free cash flow is defined as cash flow from operations, less capital expenditures. Net FCF conversion of 25% is excluding incremental debt refinancing costs.
ADV-EARNS
About Advantage Solutions
Advantage Solutions is the leading omnichannel retail solutions agency in North America, uniquely positioned at the intersection of consumer-packaged goods (CPG) brands and retailers. With its data- and technology-powered services, Advantage leverages its unparalleled insights, expertise and scale to help brands and retailers of all sizes generate demand and get products into the hands of consumers, wherever they shop. Whether it's creating meaningful moments and experiences in-store and online, optimizing assortment and merchandising, or accelerating e-commerce and digital capabilities, Advantage is the trusted partner that keeps commerce and life moving. Advantage has offices throughout North America and strategic investments and owned operations in select international markets. For more information, please visit YourADV.com.
Included with this press release are the Company's consolidated and condensed financial statements as of and for the three months ended March 31, 2026. These financial statements should be read in conjunction with the information contained in the Company's Quarterly Report on Form 10-Q filed with ...
