Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $580.19M
• Dividend Yield: N/A
• Average Volume (3M): 908.29K
• 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: 94
• Industry: Advertising Agencies
• EPS (TTM): 0.27
• Shares Outstanding: 325,946,870
• 10 Day Avg. Volume: 1,278,651
• 30 Day Avg. Volume: 908,290
• 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: 3.41
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 75.13
• 1Y Price Target: $2.25
• Price Target Upside: 19.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $2.00 ▲(5.82% Upside)

Advantage Solutions' overall stock score reflects significant financial challenges, with persistent losses and high leverage being the most impactful factors. Technical indicators show some short-term strength, but the valuation remains unattractive due to ongoing financial struggles. The earnings call provides a mixed outlook, with some positive operational improvements expected in the future.

Positive Factors

Financial Performance

AEBITDA increased nearly 9% driven by efficiency gains across all three segments as well as good event momentum in Experiential.

Operational Efficiency

ADV has been transformed into a much more efficient business, with non-core units divested or deconsolidated, and operational efficiencies achieved.

Staffing Improvement

ADV is seeing improvement in staffing due to better recruiting efforts and centralized staffing.

Negative Factors

Competitive Pressures

The stock's potential upside is significantly offset by competitive pressures and the inability to pass through costs.

Labor Market Challenges

Staffing shortages have accelerated due to a historically tight labor market, creating additional challenges for ADV.

Macro Pressures

Macro pressures, labor headwinds, and declining sentiment have negatively impacted ADV's recent financial results.

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 a variety of service offerings aimed at helping their clients increase sales and market presence. The company primarily earns money by providing outsourced sales services, which involve acting as the sales force for consumer goods manufacturers, helping them to place products in retail locations and increase product visibility. Another significant revenue stream comes from retail merchandising services, where Advantage Solutions assists retailers with in-store product placement, promotional displays, and inventory management. Additionally, the company offers marketing services that include digital marketing, consumer engagement, and analytics to help clients optimize their marketing strategies and achieve higher returns on their marketing investments. Advantage Solutions' earnings are also supported by strategic partnerships with major retailers and consumer goods companies, which enable them to leverage a wide network and drive efficiencies in their service delivery.

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: Positive
• Last Price: 1.89
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1.89 is above the 20-day moving average (MA) of 1.63, above the 50-day MA of 1.55, and below the 200-day MA of 2.08, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 28.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADV.

Advantage Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	71 Outperform	$854.17M	14.82	9.20%	6.28%	-1.92%	49.63%
Sector *	60 Neutral	$42.44B	3.87	-13.01%	4.03%	1.90%	-42.25%
ADV	51 Neutral	$580.19M	―	-36.12%	―	-10.21%	-81.84%
CCO	51 Neutral	$596.42M	―	4.92%	―	-21.67%	81.70%
NCMI	50 Neutral	$402.02M	―	-5.50%	2.13%	13.34%	-107.92%
BOC	50 Neutral	$395.06M	525.91	0.14%	―	9.53%	―
VSME	31 Underperform	$56.25M	―	-157.27%	―	―	―

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.

Advantage Solutions Approves Key Proposals at Meeting

On May 28, 2025, Advantage Solutions Inc. held its annual stockholders meeting where three key proposals were voted on by Class A stockholders. The meeting saw a high participation rate, with approximately 88.6% of shares represented. All proposals, including the election of directors, ratification of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation, were passed with the required majority votes.