ADV · Advantage Solutions Inc.

Advantage Solutions delivered a solid first quarter in 2026, with revenue growth of 5.8% year-over-year to $869.6 million, primarily fueled by a 22.8% increase in Experiential Services revenues—driven by nearly 20% higher event volumes and an improved execution rate of 94%—and a 4.2% rise in Retailer Services, supported by new business wins, pricing, and client program ramps. In contrast, Branded Services declined 11.3% due to macro pressures, client insourcing, procurement headwinds, and select client losses, though stabilization initiatives are underway. Adjusted EBITDA grew 16.4% to $67.7 million, with margin expanding 70 bps to 7.8%, reflecting strong incremental margins in Experiential Services and improved profitability in Retailer Services, aided by the ongoing rollout of the centralized labor model (CLM) and enhanced training and safety protocols. Despite top-line and EBITDA gains, net loss widened to $71.8 million from $56.1 million, underscoring persistent structural challenges in Branded Services and the scale of investments required across the business. Management reaffirmed full-year 2026 guidance—revenues flat to up low single digits, Adjusted EBITDA flat to down mid single digits, and Adjusted Unlevered Free Cash Flow of $250–$275 million—citing macro uncertainty and a continuing shift toward more labor-intensive, lower-margin services. The balance sheet was strengthened through $131 million in debt reduction and maturity extensions to 2030, resulting in $144 million cash and a net leverage ratio of 4.2x. CEO Dave Peacock emphasized disciplined execution, technology transformation, and CLM implementation as central to driving long-term profitable growth.