Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $501.96M
• Dividend Yield: N/A
• Average Volume (3M): 747.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -10.21%
• EPS Growth: -81.84%
• Country: US
• Employees: 17,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.27
• Shares Outstanding: 325,946,870
• 10 Day Avg. Volume: 962,080
• 30 Day Avg. Volume: 747,146
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.94
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 75.13
• 1Y Price Target: $2.50
• Price Target Upside: 66.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $2.00 ▲(33.33% Upside)

Advantage Solutions' overall stock score reflects significant financial challenges, including persistent losses and high leverage, which weigh heavily on its financial performance. The technical analysis provides mixed signals, with some short-term volatility. The valuation is unattractive due to negative earnings and no dividend yield. However, the earnings call highlights potential improvements in operational efficiency and labor management, offering some optimism for future performance.

Positive Factors

Operational Efficiency Improvements

Efforts to enhance operational efficiency and labor management can lead to cost savings and improved service delivery, strengthening long-term competitiveness.

Experiential Services Growth

Growth in experiential services indicates strong demand and successful execution, contributing to revenue stability and potential market expansion.

Cash Flow and Liquidity Position

A solid cash position and expected stronger cash generation enhance financial flexibility, supporting strategic investments and debt management.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Decline in Branded Services Revenue

Declining revenue in branded services reflects challenges in maintaining client relationships and adapting to market conditions, impacting overall growth.

Negative Cash Flow

Negative cash flow indicates difficulties in sustaining operations and funding growth, potentially leading to liquidity issues and reliance on external financing.

Advantage Solutions Business Overview & Revenue Model

Company Description

Advantage Solutions (ADV) is a leading provider of outsourced sales and marketing solutions, primarily serving the consumer goods industry. The company operates across various sectors, including retail, grocery, and foodservice, offering services such as merchandising, sales force management, digital marketing, and promotional execution. Advantage Solutions focuses on enhancing brand visibility and driving sales through innovative strategies and comprehensive market insights.

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 faces significant financial challenges, with persistent losses and high leverage. While there is slight revenue growth, profitability and cash flow generation are major concerns. The company needs to address operational inefficiencies and manage its debt levels to improve financial health and stability.

Income Statement

Advantage Solutions has shown a slight revenue growth of 1% in the TTM period, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin is stable at around 14%, but the company struggles with negative EBIT and net profit margins, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The company has a high debt-to-equity ratio of 2.42, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity is negative, reflecting ongoing losses and challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure.

Cash Flow

Cash flow metrics are concerning, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is positive, but this is due to the negative net income. The company faces challenges in generating positive cash flows, which could impact its ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.53B	3.57B	3.90B	3.65B	3.60B	3.16B
Gross Profit	501.50M	507.27M	485.08M	472.85M	638.17M	604.19M
EBITDA	26.32M	-89.85M	255.73M	328.98M	508.53M	277.84M
Net Income	-307.23M	-326.96M	-63.26M	-1.38B	54.49M	-175.81M
Balance Sheet
Total Assets	3.03B	3.11B	3.78B	4.26B	5.85B	5.78B
Cash, Cash Equivalents and Short-Term Investments	120.20M	205.23M	120.84M	120.72M	164.62M	204.30M
Total Debt	1.67B	1.74B	1.92B	2.11B	2.10B	2.16B
Total Liabilities	2.34B	2.36B	2.68B	3.03B	3.27B	3.26B
Stockholders Equity	690.92M	748.74M	1.11B	1.12B	2.48B	2.42B
Cash Flow
Free Cash Flow	-59.02M	37.76M	192.72M	80.80M	94.82M	314.78M
Operating Cash Flow	-5.06M	93.09M	239.00M	121.26M	125.99M	345.73M
Investing Cash Flow	82.23M	206.45M	-50.52M	-108.55M	-75.84M	-99.00M
Financing Cash Flow	-121.01M	-211.42M	-178.40M	-46.64M	-86.30M	-230.15M

Advantage Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.5 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.70, and below the 200-day MA of 1.84, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 31.52 is Neutral, neither overbought nor oversold. The STOCH value of 3.46 is Positive, 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
XNET	77 Outperform	$609.95M	0.85	0.38%	―	11.31%	5084.80%
DLX	71 Outperform	$874.81M	15.08	10.51%	6.16%	-1.92%	49.63%
EEX	61 Neutral	$974.03M	127.57	2.03%	1.22%	9.96%	―
NCMI	52 Neutral	$417.98M	-20.38	-5.42%	2.02%	13.34%	-107.92%
ADV	48 Neutral	$501.96M	―	-36.12%	―	-10.21%	-81.84%
VSME	31 Underperform	$120.94M	-13.27	-569.80%	―	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Advantage Solutions Corporate Events

Advantage Solutions Announces Executive Transition Agreement

On August 18, 2025, Andrea Young, a former executive officer at Advantage Solutions Inc., entered into a transition agreement with a company subsidiary. The agreement outlines a reduction in her salary and her continued service in a non-executive role until August 15, 2026, with severance benefits including cash payments, health insurance, and continued vesting of equity awards. This transition reflects a strategic personnel adjustment within the company, potentially impacting its operational dynamics and stakeholder relations.

Advantage Solutions Appoints New COO for Branded Services

On August 7, 2025, Advantage Solutions announced the appointment of Jeffrey Harsh as the new Chief Operating Officer for its Branded Services segment, effective August 25, 2025. Harsh, who brings extensive experience from The Hershey Company, will succeed Dean General, who transitions to a new role as Chief Industry Development Officer. This leadership change aims to enhance the company’s ability to deliver value and support clients’ evolving needs, with Harsh focusing on operational excellence and client engagement strategies.

Advantage Solutions Announces Leadership Transition in June 2025

On June 10, 2025, Advantage Solutions Inc. announced a transition in its leadership team, specifically within its Experiential Services division. Andrea Young will step down as Chief Operating Officer, Experiential Services, effective June 30, 2025, to focus on personal health and other business opportunities, including potential board service. Michael Taylor will assume the role of Chief Operating Officer, Retailer and Experiential Services, on the same date. This transition may impact the company’s operations and strategic direction within the industry.