ADVANTAGE SOLUTIONS INC C/WTS 28/10/2025(TO PUR COM) | 8-K: FY2025 Q1 Revenue: USD 821.79 M

Revenue: As of FY2025 Q1, the actual value is USD 821.79 M.

EPS: As of FY2025 Q1, the actual value is USD -0.17.

Segment Revenue

• Branded Services: Revenue decreased by 11.9% to $289.8 million from $329.1 million.
• Experiential Services: Revenue increased by 2.2% to $314.0 million from $307.4 million.
• Retailer Services: Revenue decreased by 3.1% to $217.9 million from $225.0 million.
• Total Revenues: $696 million, a decrease of 5% year-over-year from continuing operations excluding pass-through costs.

Operational Metrics

• Net Loss: The net loss was $56.1 million, an increase from the net loss of $50.1 million in the previous year.
• Operating Loss: Total operating loss improved by 51.2% to $14.6 million from $29.9 million.
• Adjusted EBITDA: Adjusted EBITDA decreased by 17.6% to $58.2 million from $70.6 million. Adjusted EBITDA was $58 million, a decline of 18% year-over-year from continuing operations.
• Adjusted EBITDA Margin: The margin decreased to 7.1% from 8.2%.
• Net Leverage Ratio: 4.4x.

Cash Flow

• Net Cash Used in Operating Activities: Net cash used was - $39.6 million compared to - $9.4 million in the previous year.
• Adjusted Unlevered Free Cash Flow: Adjusted unlevered free cash flow was - $7.1 million. Adjusted unlevered free cash flow was - $7 million from continuing and discontinued operations.

Unique Metrics

• Voluntary Debt Repurchases: Approximately $20 million in voluntary debt repurchases were made.
• Share Buybacks: Approximately $1 million in share buybacks were executed.
• Net Debt: $1,577 million as of March 31, 2025.

Outlook / Guidance

• Management has lowered guidance due to heightened market uncertainty, with revenue and adjusted EBITDA expected to be down low single digits to flat compared to prior expectations of growth.
• The company anticipates maintaining an adjusted unlevered free cash flow conversion of greater than 50% of adjusted EBITDA.
• Net interest expense is projected to be between $140 to $150 million, with capital expenditures ranging from $65 to $75 million.
• Revenues and Adjusted EBITDA are expected to range from down low single digits to flat compared to the prior year, with seasonality creating a more back-half weighted outlook relative to 2024.
• The company anticipates potential upside in delivering more than 50% of the Adjusted EBITDA target due to improved working capital management.
• The 2025 revenue outlook excludes pass-through costs and is based on continuing operations.