Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $242.36M
• Dividend Yield: N/A
• Average Volume (3M): 652.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -7.12%
• EPS Growth: -7.75%
• Country: US
• Employees: 17,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.50
• Shares Outstanding: 327,507,700
• 10 Day Avg. Volume: 398,695
• 30 Day Avg. Volume: 652,905
• PEG Ratio: 0.04
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 5.19
• Enterprise Value/Market Cap: 0.06
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.19
• 1Y Price Target: $1.50
• Price Target Upside: 72.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): $3.49B

• Rating: 51 Neutral
• Price Target: $0.75 ▼(-13.33% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily held back by weak profitability and a fragile technical setup (below longer-term moving averages with negative MACD). Offsetting factors include major balance-sheet de-risking, continued positive free cash flow, and earnings-call emphasis on liquidity and cash-flow conversion, though tempered by cautious 2026 EBITDA guidance and leverage/borrowing-cost pressures.

Positive Factors

Balance-sheet de-risking

A dramatic reduction in reported debt materially improves financial flexibility and reduces near-term refinancing risk. Lower secured liabilities free up cash flow for operations, capex, and targeted deleveraging, enabling multi-quarter execution of productivity and portfolio optimization strategies.

Strong cash generation & liquidity

Consistent positive free cash flow and a large liquidity buffer support sustained operations and strategic investments. Reliable cash generation funds final IT spend, enables planned ~$90M debt paydown, and underpins refinancing plans—reducing solvency risk and allowing reinvestment into higher-margin initiatives.

Experiential services acceleration

A strong rebound in experiential services reflects scalable, higher‑incremental‑margin offerings and improved execution. This segment diversification offsets weakness elsewhere, supports margin recovery potential, and provides a platform to expand analytics and tech-enabled services with durable client demand.

Negative Factors

Sustained profitability weakness

The company has not consistently translated revenue into sustainable operating profits, with multiple loss-making years and negative ROE. Persistent operating losses constrain retained earnings and limit ability to self-fund investments, making long-term margin recovery and shareholder returns uncertain.

Branded Services deterioration

A roughly $1B branded-services base is under secular pressure from tighter CPG budgets and client insourcing. Losses in this core segment shrink higher-margin revenue, force reliance on lower-margin labor services, and create structural headwinds to restoring consolidated margins and growth consistency.

Elevated leverage & higher borrowing costs

Although maturities were extended, leverage remains above target and interest expense will rise materially, reducing free cash available for reinvestment. The combination of elevated finance costs and earnings volatility increases execution risk for margin improvements and slows the path to the company's stated leverage target.

Advantage Solutions Business Overview & Revenue Model

Company Description

Advantage Solutions Inc. provides outsourced solutions to consumer goods companies and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; administration; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising, in-store media, and digital commerce. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; and retailer-centric services, such as retail experiential, private label, digital marketing, and digital media and advertising. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. Advantage Solutions Inc. was founded in 1987 and is headquartered in Irvine, California.

How the Company Makes Money

Advantage Solutions makes money by selling business-to-business services to consumer packaged goods (CPG) brands and retailers, typically under service contracts and project-based engagements. Key revenue streams include: (1) Sales and retail execution services: fees for outsourced sales support (e.g., managing retail relationships, category guidance tied to selling programs, and field sales coverage) and for in-store execution such as merchandising, product resets, audits, and ensuring shelf availability and planogram compliance; pricing is commonly based on contracted rates (e.g., per store visit, per project, or retainer-like arrangements) and may scale with the scope of coverage and labor hours deployed. (2) Experiential and shopper marketing: fees for marketing services such as in-store/omnichannel promotions, product demonstrations, sampling events, and campaign execution; revenue is generally earned per event, per campaign, or through ongoing program management fees, often linked to the number of activations, locations, and staffing requirements. (3) Data, analytics, and technology services: fees for analytics, insights, and technology offerings that support sales and marketing decisions (e.g., reporting, measurement, and optimization tools); monetization is typically via subscriptions, licenses, or service fees tied to analytics projects and platform usage. Additional factors influencing earnings include the company’s ability to efficiently staff and route field labor, maintain long-term relationships with large CPG clients and retailers, and expand the mix of higher-margin analytics/technology and integrated service bundles; specific named partnerships and their financial impact are not available (null).

Advantage Solutions Financial Statement Overview

Summary

Revenue is essentially flat year-over-year, while profitability remains the key weakness with TTM operating and net losses despite improvement (EBITDA turned positive and losses narrowed). Balance-sheet risk improved sharply with total debt dropping to roughly $13M from about $1.74B, but ROE is still deeply negative. Cash flow is a support (TTM operating cash flow ~$62M; free cash flow ~$55M) though it weakened versus 2024 and remains volatile.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat versus 2024 (about $3.54B vs $3.57B), following a decline in 2024 after a stronger 2023. Profitability is the main weak point: TTM operating income and net income are still negative, even though results improved materially from 2024 (EBITDA turned positive and losses narrowed). Gross margin is steady around the mid-teens, but the business has not consistently converted that into sustainable earnings, with multiple loss-making years including a severe drawdown in 2022.

Balance Sheet

Leverage improved dramatically in TTM (Trailing-Twelve-Months): total debt fell to ~$13M from ~$1.74B in 2024, driving debt-to-equity down to near-zero. That balance-sheet de-risking is a major positive and increases financial flexibility. Offsetting this, equity has trended down from earlier years and returns on equity remain deeply negative in TTM due to ongoing losses, indicating the capital base is still not generating acceptable profitability.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is positive (operating cash flow ~$62M; free cash flow ~$55M), which helps support liquidity despite reported net losses. However, cash flow weakened versus 2024 and is far below 2023 levels, and free cash flow growth is sharply negative in TTM. Overall, the company is producing cash, but the trajectory has been volatile and currently trending down.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.54B	3.57B	3.90B	3.65B	3.60B
Gross Profit	494.35M	507.27M	485.08M	472.85M	638.17M
EBITDA	75.88M	-89.85M	255.73M	-1.26B	469.13M
Net Income	-227.74M	-326.96M	-63.32M	-1.38B	54.49M
Balance Sheet
Total Assets	2.79B	3.11B	3.78B	4.26B	5.85B
Cash, Cash Equivalents and Short-Term Investments	240.85M	205.23M	120.84M	120.72M	164.62M
Total Debt	13.25M	1.74B	1.91B	2.11B	2.10B
Total Liabilities	2.24B	2.36B	2.68B	3.03B	3.27B
Stockholders Equity	553.96M	748.74M	1.11B	1.12B	2.48B
Cash Flow
Free Cash Flow	55.05M	37.76M	186.93M	71.69M	94.82M
Operating Cash Flow	61.53M	93.09M	228.49M	104.70M	125.99M
Investing Cash Flow	3.84M	206.45M	-50.52M	-106.10M	-75.84M
Financing Cash Flow	-36.21M	-211.42M	-178.40M	-31.38M	-86.30M

Advantage Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADV, the sentiment is Neutral. The current price of 0.87 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.75, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 80.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADV.

Advantage Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	68 Neutral	$1.20B	11.93	13.07%	5.41%	-0.94%	47.48%
XNET	66 Neutral	$439.99M	0.06	154.56%	―	26.91%	8746.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EEX	55 Neutral	$805.08M	-28.94	1.20%	1.29%	11.18%	―
ADV	51 Neutral	$242.36M	-1.25	-29.47%	―	-7.12%	-7.75%
NCMI	50 Neutral	$306.44M	-34.56	-4.10%	3.05%	-3.67%	34.36%
VSME	31 Underperform	$3.03M	-22.59	-194.72%	―	-11.51%	74.52%

Advantage Solutions Corporate Events

Advantage Solutions Advances Major Debt Exchange and Refinancing

On February 23, 2026, Advantage Sales & Marketing Inc., an indirect subsidiary of Advantage Solutions Inc., reported that holders of more than 99% of its $595.1 million 6.50% senior secured notes due 2028 had tendered into a previously launched exchange offer for new 9.000% senior secured notes due 2030 and cash, delivering the requisite consents to strip most covenants, terminate subsidiary guarantees and release collateral under the existing indenture. Following the withdrawal deadline the same day, the company executed a supplemental indenture to implement these changes, with settlement expected on March 11, 2026, while lenders representing over 99% of the firm’s existing term loan facility have also agreed to participate in parallel term loan amendment and refinancing transactions, signaling broad creditor support for Advantage Solutions’ capital structure overhaul.

The high participation in the exchange offer and term loan transactions points to strong alignment between Advantage Solutions and its creditors, reducing near-term refinancing risk and simplifying its debt documentation despite the higher coupon on the new 2030 notes. By eliminating restrictive covenants, guarantees and collateral on the outgoing notes and amending its first-lien credit agreement with near-unanimous lender backing, the company is materially reshaping its leverage profile and financial flexibility, a move that may improve liquidity and operational headroom but shifts some protections away from noteholders.

The most recent analyst rating on (ADV) stock is a Sell with a $0.92 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.

Advantage Solutions refreshes board with new PE representatives

Advantage Solutions Inc. announced that directors Cameron Breitner and Adam Nebesar notified the company on February 17, 2026, of their resignations from the board of directors, effective February 20, 2026. Their departures come under an existing stockholders agreement that governs board representation by key private equity holders and triggers corresponding replacement appointments.

To fill the vacancies, the board appointed CVC executive Thomas Turner as a Class I director through the 2027 annual meeting and Bain-affiliated executive Xiaofeng “Frank” Yao as a Class II director through the 2028 annual meeting, both effective February 20, 2026. Turner and Yao, who will not receive standard non-employee director compensation due to their investor affiliations, strengthen the board’s private equity and global operations expertise while maintaining compliance with governance and related-party standards.

The most recent analyst rating on (ADV) stock is a Sell with a $0.92 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.

Advantage Solutions Launches Debt Exchange and Consent Solicitation

On February 6, 2026, Advantage Sales & Marketing Inc., an indirect subsidiary of Advantage Solutions, entered into a Transaction Support Agreement with a majority of its noteholders and term loan lenders to execute a comprehensive extension of debt maturities, including an exchange of its 6.50% senior secured notes due 2028 and amendments to its first-lien term loan and revolving credit facilities. The agreement, which targets completion by March 26, 2026, is aimed at easing near-term refinancing pressure and is contingent on participation thresholds and other conditions, with automatic termination if not extended by that date.

In connection with the agreement, the company launched on February 9, 2026 an exchange offer for all existing notes into new 9.000% senior secured notes due 2030 plus cash, alongside a consent solicitation to strip most covenants and collateral from the old indenture, in a transaction limited to institutional and non‑U.S. investors. Separately, Advantage Solutions released preliminary 2025 results showing estimated revenue of $3.50–$3.55 billion, a 1% decline from 2024, a sharply reduced operating loss of $120–$130 million and a 7% drop in Adjusted EBITDA, signaling ongoing profitability pressures but some improvement in operating performance versus the prior year.

The most recent analyst rating on (ADV) stock is a Sell with a $0.92 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.

Advantage Solutions Faces Nasdaq Minimum Bid Price Noncompliance

On January 7, 2026, Advantage Solutions Inc. disclosed that it received a notice from Nasdaq stating the company is out of compliance with the exchange’s $1.00 minimum bid price requirement, triggering a 180-day grace period until July 6, 2026, to restore its share price to at least $1.00 for ten consecutive business days. While the notice does not immediately affect the stock’s Nasdaq Global Select Market listing, failure to regain compliance could force the company to seek a transfer to the Nasdaq Capital Market or ultimately face delisting, introducing potential uncertainty for shareholders as the company monitors its stock price and evaluates options to cure the deficiency.

The most recent analyst rating on (ADV) stock is a Hold with a $0.87 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.