Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $271.16M
• Dividend Yield: N/A
• Average Volume (3M): 652.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -7.12%
• EPS Growth: -7.75%
• Country: US
• Employees: 17,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.32
• Shares Outstanding: 326,271,900
• 10 Day Avg. Volume: 398,695
• 30 Day Avg. Volume: 652,905
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 24.87
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.63
• Enterprise Value/Ebitda: 4.52
• 1Y Price Target: $2.00
• Price Target Upside: 129.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.84 ▼(-3.79% Downside)

The score is pressured primarily by weak financial performance (declining revenue, negative profitability, higher leverage, and weaker cash flow trends) and bearish technicals. The earnings call provides some support due to strong cash flow generation and operational initiatives, but this is outweighed by soft guidance and a major listing-compliance overhang.

Positive Factors

Strong Free Cash Flow Generation

Sustained FCF at ~100% of EBITDA driven by working-capital improvements provides durable liquidity to fund operations, support debt servicing, and invest in technology or tuck-in deals. This cash conversion resilience improves financial flexibility over multiple quarters.

Experiential Services Momentum

Double-digit margin expansion in Experiential Services reflects stronger demand and improved staffing efficiency. A growing, higher-margin segment diversifies revenue away from pressured branded/retailer services and can sustainably lift consolidated margins and cash generation.

ERP and Data Infrastructure Upgrade

Completion of ERP and enterprise data systems lays foundation for lasting operational efficiencies: better labor routing, tighter working-capital control, and enhanced performance visibility. These structural gains support margin recovery and scalable service delivery over time.

Negative Factors

Declining Revenue and Negative Margins

Ongoing top-line contraction and persistently negative operating margins limit reinvestment capacity and make earnings recovery more difficult. Structural revenue softness reduces leverage benefits from fixed-cost absorption, increasing execution sensitivity to macro cycles.

Elevated Leverage and Weak Equity Metrics

Rising leverage and negative ROE indicate the balance sheet is under strain, constraining capital allocation and raising refinance risk. Higher indebtedness reduces flexibility for strategic investments and increases vulnerability to interest-rate or revenue shocks.

Nasdaq Listing Compliance Risk

A formal Nasdaq noncompliance notice is a structural governance and liquidity risk: potential transfer or delisting could deter institutional investors, complicate capital raises, and demand management time/resources to resolve, persisting until compliance is restored.

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 generates revenue through multiple key streams, primarily by charging clients for its sales, marketing, and promotional services. The company works on a fee-for-service basis, where clients pay for the execution of marketing campaigns and sales initiatives. Additionally, Advantage Solutions earns income through performance-based incentives tied to sales growth and market penetration. The company also benefits from long-term contracts with major retailers and manufacturers, which provide a steady income stream. Strategic partnerships with brands and distribution networks further enhance its revenue potential by expanding its service offerings and market reach.

Advantage Solutions Financial Statement Overview

Summary

Advantage Solutions is facing significant financial challenges, with declining revenues, negative profitability margins, and increasing leverage. The cash flow situation is concerning, with negative growth and low coverage ratios, indicating weak financial health and substantial risks.

Income Statement

Advantage Solutions has experienced declining revenue growth, with a significant drop in the TTM period. The gross profit margin has been relatively stable but low, while the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage and potential financial risk. Return on equity is negative, showing that the company is not generating profits from its equity base. The equity ratio is declining, suggesting a weakening financial position.

Cash Flow

Free cash flow has significantly decreased in the TTM period, and the operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is positive, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	3.57B	3.90B	3.65B	3.60B	3.16B
Gross Profit	495.78M	507.27M	485.08M	472.85M	638.17M	604.19M
EBITDA	68.69M	-89.85M	255.73M	-1.26B	469.13M	292.24M
Net Income	-243.89M	-326.96M	-63.32M	-1.38B	54.49M	-175.81M
Balance Sheet
Total Assets	2.99B	3.11B	3.78B	4.26B	5.85B	5.78B
Cash, Cash Equivalents and Short-Term Investments	201.14M	205.23M	120.84M	120.72M	164.62M	204.30M
Total Debt	13.25M	1.74B	1.91B	2.11B	2.10B	2.16B
Total Liabilities	2.29B	2.36B	2.68B	3.03B	3.27B	3.26B
Stockholders Equity	708.50M	748.74M	1.11B	1.12B	2.48B	2.42B
Cash Flow
Free Cash Flow	-9.09M	37.76M	186.93M	71.69M	94.82M	314.78M
Operating Cash Flow	24.55M	93.09M	228.49M	104.70M	125.99M	345.73M
Investing Cash Flow	-11.35M	206.45M	-50.52M	-106.10M	-75.84M	-99.00M
Financing Cash Flow	-9.84M	-211.42M	-178.40M	-31.38M	-86.30M	-230.15M

Advantage Solutions Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADV, the sentiment is Negative. The current price of 0.87 is above the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.95, and below the 200-day MA of 1.35, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADV.

Advantage Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	72 Outperform	$1.10B	13.41	12.96%	5.41%	-0.94%	47.48%
XNET	66 Neutral	$480.99M	0.38	131.32%	―	26.91%	8746.89%
EEX	62 Neutral	$927.72M	217.13	1.21%	1.29%	11.18%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NCMI	52 Neutral	$360.31M	-23.40	-4.10%	3.05%	-3.67%	34.36%
ADV	42 Neutral	$271.16M	-1.09	-29.47%	―	-7.12%	-7.75%
VSME	31 Underperform	$4.57M	-1.11	-194.72%	―	-11.51%	74.52%

Advantage Solutions Corporate Events

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.