Advantage Solutions (ADV)
NASDAQ:ADV
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Advantage Solutions
(NASDAQ:ADV)
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Rating:62Neutral
Price Target:
$37.00
▲(4152.87% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily driven by strong technical momentum and improving cash generation, which help offset weak profitability and a negative-earnings valuation profile. The latest earnings call supports a moderately constructive view on cash flow and deleveraging, but reiterated cautious full-year EBITDA guidance and segment/mix headwinds limit the upside.
Positive Factors
Strong free cash flow generation
Advantage generates meaningful free cash flow despite negative net income, with a sharp YoY FCF jump. Durable cash conversion provides funding for debt paydown, capex and transformation programs, improving financial flexibility and lowering refinancing risk over the next 2–6 months.
Negative Factors
Branded Services revenue and EBITDA decline
Branded Services, a material revenue stream (~$226M), is contracting double-digits due to macro weakness, client losses and mix shifts. Persistent declines in this large segment create a durable drag on consolidated revenue and profit unless client retention or new wins reverse the trend.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Advantage generates meaningful free cash flow despite negative net income, with a sharp YoY FCF jump. Durable cash conversion provides funding for debt paydown, capex and transformation programs, improving financial flexibility and lowering refinancing risk over the next 2–6 months.
Read all positive factors
Advantage Solutions (ADV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$461.21M
Dividend YieldN/A
Average Volume (3M)652.90K
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth1.81%
EPS Growth42.29%
CountryUS
Employees17,000
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-18.76
Shares Outstanding13,295,280
10 Day Avg. Volume398,695
30 Day Avg. Volume652,905
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.52
Price to Sales (P/S)0.08
P/FCF Ratio5.19
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.99
Enterprise Value/Ebitda1.21
Forecast
1Y Price Target
$42.50Price Target Upside4785.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.19
Revenue Forecast (FY)$3.58B
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 headq...
How the Company Makes Money
Advantage Solutions primarily makes money by charging brand manufacturers and, in some cases, retailers for outsourced services that support selling and marketing products through retail and omnichannel channels. Key revenue streams include: (1) S...
Advantage Solutions Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but stable picture: strong operational and financial momentum in Experiential Services, improved Retailer Services performance, robust cash generation and meaningful progress on technology, centralized labor and AI initiatives. However, significant weakness persists in Branded Services (double-digit revenue and EBITDA declines), margin mix pressures from growth concentrated in lower-margin businesses, near-term elevated DSOs related to system implementations, and ongoing macro headwinds. Management reiterated cautious full-year guidance and emphasized a timeline for realizing technology-driven efficiencies in 2027.Positive Updates
Total Company Revenue and EBITDA Growth
Total company net revenues of $723 million, up 4% year-over-year and up 4.7% on a pro forma basis (excluding divestitures). Adjusted EBITDA of $68 million, up >16% year-over-year and up 22% on a pro forma basis, driven by strong incremental margins in Experiential Services and improved Retailer Services profitability.
Negative Updates
Branded Services Revenue and EBITDA Decline
Branded Services generated $226 million of revenue, down 12% year-over-year, and $21 million of adjusted EBITDA, down 25% year-over-year. On a pro forma basis (excluding recent divestitures), revenue was down 10% and EBITDA down 17%. Segment under pressure from macro weakness, select client losses and unfavorable mix shift.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Company Revenue and EBITDA Growth
Total company net revenues of $723 million, up 4% year-over-year and up 4.7% on a pro forma basis (excluding divestitures). Adjusted EBITDA of $68 million, up >16% year-over-year and up 22% on a pro forma basis, driven by strong incremental margins in Experiential Services and improved Retailer Services profitability.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of flat to low-single-digit revenue growth and adjusted EBITDA flat to down mid-single-digits, with adjusted unlevered free cash flow expected to be $250–$275 million and net free cash flow conversion of ~25% of adjusted EBITDA (excluding incremental debt‑extension costs); they said Q1 results included $723 million of net revenues (+4% YoY, +4.7% pro forma), $68 million of adjusted EBITDA (+>16%, +22% pro forma), $74 million of adjusted unlevered free cash flow (110% conversion in Q1), $144 million of cash on hand, roughly $130 million of debt paid down in the quarter, net leverage of 4.2x adjusted EBITDA (down from 4.4x) with a long‑term target of ~3.5x or below, and that first‑half adjusted EBITDA should represent the low‑40% range of full year; they also said capex is on pace with full‑year expectations, DSOs will be elevated near term due to system implementations but should improve later in the year, and full‑year restructuring costs should be about half last year’s level.Advantage Solutions Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.59B | 3.54B | 3.57B | 3.90B | 3.65B | 3.60B |
| Gross Profit | 350.57M | 494.35M | 507.27M | 485.08M | 472.85M | 638.17M |
| EBITDA | 286.38M | 75.88M | -89.85M | 255.73M | -1.26B | 469.13M |
| Net Income | -243.44M | -227.74M | -326.96M | -63.32M | -1.38B | 54.49M |
Balance Sheet | ||||||
| Total Assets | 2.56B | 2.79B | 3.11B | 3.78B | 4.26B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 143.87M | 240.85M | 205.23M | 120.84M | 120.72M | 164.62M |
| Total Debt | 25.86M | 13.25M | 1.74B | 1.91B | 2.11B | 2.10B |
| Total Liabilities | 2.09B | 2.24B | 2.36B | 2.68B | 3.03B | 3.27B |
| Stockholders Equity | 478.03M | 553.96M | 748.74M | 1.11B | 1.12B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 61.98M | 55.05M | 37.76M | 186.93M | 71.69M | 94.82M |
| Operating Cash Flow | 111.19M | 61.53M | 93.09M | 228.49M | 104.70M | 125.99M |
| Investing Cash Flow | 49.79M | 3.84M | 206.45M | -50.52M | -106.10M | -75.84M |
| Financing Cash Flow | -147.02M | -36.21M | -211.42M | -178.40M | -31.38M | -86.30M |
Advantage Solutions Technical Analysis
Positive
0.87
Price Trends
28.43
Positive
23.77
Positive
29.59
Positive
Market Momentum
1.84
Positive
53.48
Neutral
17.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADV, the sentiment is Positive. The current price of 0.87 is below the 20-day moving average (MA) of 35.98, below the 50-day MA of 28.43, and below the 200-day MA of 29.59, indicating a neutral trend. The MACD of 1.84 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADV.
Advantage Solutions Risk Analysis
Advantage Solutions disclosed 63 risk factors in its most recent earnings report. Advantage Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Advantage Solutions Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $367.08M | -0.10 | 96.63% | ― | 42.82% | 98263.74% | |
62 Neutral | $461.21M | -0.96 | -40.17% | ― | 1.81% | 42.29% | |
62 Neutral | $1.09B | 8.90 | 15.49% | 5.41% | 0.55% | 82.53% | |
62 Neutral | $987.57M | 30.98 | -10.81% | 1.29% | 14.04% | -1310.49% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $279.47M | -2.44 | -2.31% | 3.05% | 1.72% | 52.08% | |
| ― | $2.49M | -0.64 | -194.72% | ― | -8.74% | 88.46% |
* Communication Services Sector Average
ADV
Advantage Solutions
34.87
3.62
11.58%
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EEX
Emerald Expositions Events
5.00
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VSME
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0.86
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-94.04%
Advantage Solutions Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Advantage Solutions Updates Executive Officer Leadership Classification
Neutral
Mar 31, 2026
Advantage Solutions Inc. reported a leadership change involving Dean General, who had previously transitioned into the newly created role of Chief Industry Development Officer as disclosed on August 8, 2025. Effective March 26, 2026, the company s...
Delistings and Listing ChangesShareholder MeetingsStock Split
Advantage Solutions Implements Reverse Stock Split to Maintain Listing
Neutral
Mar 26, 2026
Advantage Solutions Inc. implemented a 1-for-25 reverse stock split of its Class A common stock on March 26, 2026, following shareholder approval at a special meeting held on March 16, 2026, and the subsequent board authorization. The move consoli...
Shareholder MeetingsStock Split
Advantage Solutions Sets 1-for-25 Reverse Stock Split
Neutral
Mar 17, 2026
On March 16, 2026, Advantage Solutions Inc. stockholders approved amendments to its certificate of incorporation authorizing a reverse stock split at a ratio between 1-for-10 and 1-for-25, along with related reductions in authorized common and pre...
Business Operations and StrategyPrivate Placements and Financing
Advantage Solutions Advances Major Debt Exchange and Refinancing
Positive
Feb 24, 2026
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 exc...
Executive/Board Changes
Advantage Solutions refreshes board with new PE representatives
Neutral
Feb 20, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.