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Advantage Solutions
(NASDAQ:ADV)
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Rating:55Neutral
Price Target:
$28.00
▼(-16.89% Downside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by below-average financial quality: margin compression, continued net losses, and weak ROE despite positive free cash flow. Technicals are a key offset, with the stock in an uptrend and momentum indicators supportive. Earnings-call takeaways are mixed—reiterated guidance and strong free-cash-flow targets are positives, but segment softness, SAP-related working-capital pressure, divestiture headwinds, and elevated leverage limit upside confidence.
Positive Factors
Experiential Services Growth
Strong growth in Experiential Services indicates expanding client demand and improving operating scale within a key business area. Higher event volumes and execution rates can support recurring service activity, strengthen client relationships, and provide a durable counterweight to weaker segments.
Negative Factors
Persistent Unprofitability and Margin Compression
Continued net losses and declining gross margin show that revenue growth has not yet translated into durable shareholder profitability. Weak earnings reduce internal funding capacity, limit resilience against execution pressure, and make sustained improvement dependent on successful cost and productivity actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Experiential Services Growth
Strong growth in Experiential Services indicates expanding client demand and improving operating scale within a key business area. Higher event volumes and execution rates can support recurring service activity, strengthen client relationships, and provide a durable counterweight to weaker segments.
Read all positive factors
Advantage Solutions (ADV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$349.41M
Dividend YieldN/A
Average Volume (3M)58.99K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth2.24%
EPS Growth18.11%
CountryUS
Employees73,000
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-21.26
Shares Outstanding12,822,230
10 Day Avg. Volume68,565
30 Day Avg. Volume58,995
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 Cap5.66
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit6.00
Enterprise Value/Ebitda27.12
Forecast
1Y Price Target
$42.00Price Target Upside24.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-2.52
Revenue Forecast (FY)$3.58B
Advantage Solutions Business Overview & Revenue Model
Company Description
Advantage Solutions Inc. (ADV) offers specialized outsourced services to consumer product manufacturers and retailers, operating throughout North America and internationally. The company's operations are structured into two main divisions: Sales a...
How the Company Makes Money
Advantage Solutions makes money primarily by providing outsourced sales, merchandising, and marketing services to CPG manufacturers and retailers under service contracts. Key revenue streams typically include: (1) Merchandising and in-store execut...
Advantage Solutions Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
Balanced. The call highlighted strong, durable momentum in Experiential Services (double-digit revenue and EBITDA growth, higher event volumes and high execution rates) and solid cash-generation targets with reiterated full-year FCF guidance. However, material headwinds remain: Branded Services showed significant revenue and profitability declines, Retailer Services experienced margin pressure from project timing and execution costs, divestitures and SAP-related working capital elevated near-term headwinds, and leverage remains high (~4.5x). Management emphasized productivity initiatives, technology and AI investments and a path toward stabilization, but the mix-driven margin pressure and segment-specific weakness temper the overall outlook.Positive Updates
Quarterly Revenue Growth
Second quarter net revenues of $757 million, up 3% year-over-year (up 4% excluding divestitures).
Negative Updates
Overall Adjusted EBITDA Decline
Second quarter adjusted EBITDA was $76 million, down 12% year-over-year (down 9% excluding divestitures), reflecting one-time factors and mixed segment performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Second quarter net revenues of $757 million, up 3% year-over-year (up 4% excluding divestitures).
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 revenue and adjusted EBITDA guidance ranges and provided specific cash guidance of adjusted unlevered free cash flow of $250–$275 million with net free cash flow conversion of 25% (ex‑debt refinancing costs); they expect second‑half adjusted EBITDA to represent roughly 53% of the full year (Q4 > Q3), noted interest expense and capital expenditures guidance are slightly lower than prior forecasts, and said DSOs should improve steadily (including in Q3) supporting working‑capital improvement in H2 after the SAP implementation. They reiterated confidence in Experiential Services strength, sequential improvement in Retailer Services and a more gradual Branded Services recovery, reminded investors Q2 adjusted unlevered free cash flow was $19 million (25% conversion) and H1 conversion was 79% of adjusted EBITDA, and noted they finished the quarter with $102 million cash, net debt of ~4.5x trailing EBITDA and that divestitures will be a ~ $20 million revenue and >$10 million adjusted EBITDA headwind for 2026.Advantage Solutions Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.61B | 3.54B | 3.57B | 3.90B | 3.65B | 3.60B |
| Gross Profit | 329.41M | 494.35M | 507.27M | 485.08M | 472.85M | 638.17M |
| EBITDA | 72.90M | 75.88M | -89.85M | 255.73M | -1.26B | 469.13M |
| Net Income | -275.70M | -227.74M | -326.96M | -63.32M | -1.38B | 54.49M |
Balance Sheet | ||||||
| Total Assets | 2.54B | 2.79B | 3.11B | 3.78B | 4.26B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 102.31M | 240.85M | 205.23M | 120.84M | 120.72M | 164.62M |
| Total Debt | 1.54B | 13.25M | 1.74B | 1.91B | 2.11B | 2.10B |
| Total Liabilities | 2.14B | 2.24B | 2.36B | 2.68B | 3.03B | 3.27B |
| Stockholders Equity | 401.82M | 553.96M | 748.74M | 1.11B | 1.12B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 69.94M | 55.05M | 37.76M | 186.93M | 71.69M | 94.82M |
| Operating Cash Flow | 126.47M | 61.53M | 93.09M | 228.49M | 104.70M | 125.99M |
| Investing Cash Flow | 42.53M | 3.84M | 206.45M | -50.52M | -106.10M | -75.84M |
| Financing Cash Flow | -179.87M | -36.21M | -211.42M | -178.40M | -31.38M | -86.30M |
Advantage Solutions Technical Analysis
Neutral
33.69
Price Trends
32.34
Negative
35.70
Negative
29.61
Positive
Market Momentum
-1.31
Positive
48.68
Neutral
41.54
Neutral
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 33.69 is above the 20-day moving average (MA) of 31.07, above the 50-day MA of 32.34, and above the 200-day MA of 29.61, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 41.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $20.60B | 40.04 | 4.34% | 4.27% | 40.60% | -83.10% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $2.08B | 133.49 | 2.16% | 6.16% | 6.17% | 351.09% | |
55 Neutral | $349.41M | -1.36 | -51.48% | ― | 2.24% | 18.11% | |
53 Neutral | $5.42B | -17.31 | -9.33% | 3.94% | -2.97% | -165.26% | |
48 Neutral | $42.67M | -17.31 | -5.10% | ― | -28.21% | 80.21% | |
48 Neutral | $13.95M | -3.51 | -46.05% | ― | 12.55% | 86.16% |
* Communication Services Sector Average
ADV
Advantage Solutions
30.58
-7.42
-19.53%
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IZEA
IZEA Worldwide
2.35
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-31.51%
Advantage Solutions Corporate Events
Executive/Board Changes
Advantage Solutions Announces Executive Transition to Advisory Role
Neutral
Oct 5, 2026
Advantage Sales Marketing LLC, a subsidiary of Advantage Solutions Inc., has entered into a transition agreement with Dean General, effective October 1, 2026, under which he moved from his role as Chief Industry Development Officer to serve as a ...
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.