Advantage Solutions — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the three months ended September 30, 2026, were $913.7 million, a 0.1% decrease from $915.0 million in the prior year period.
• Net loss for the quarter was $25.1 million, compared to net income of $20.6 million in the same period last year.
• Revenues net of reimbursable expenses increased 0.1% to $782 million.
• Total Adjusted EBITDA decreased 14.2% to $85.4 million (from $99.6 million), with an Adjusted EBITDA margin of 9.3% compared to 10.9% in the prior year.
• For the nine months ended September 30, 2026, total revenues were $2.67 billion, up 2.4% year-over-year.
• Total net loss for the nine months was $159.6 million, compared to a net loss of $66.0 million in the prior year period.
• Total Adjusted EBITDA for the nine months was $229.0 million, down 6.2% year-over-year, with a margin of 8.6%.
• Adjusted Unlevered Free Cash Flow for the quarter was $98.7 million, representing 115.6% of Adjusted EBITDA.
• Cash and cash equivalents ended the quarter at $131.3 million.
• Gross debt was $1.579 billion, resulting in a Net Leverage Ratio of 4.6x.

Guidance and Future Outlook:

• The company reiterated its full-year 2026 guidance for revenues (flat to up low single digits, excluding reimbursable expenses) and Adjusted EBITDA (flat to down mid single digits).
• Full-year 2026 Free Cash Flow guidance remains $250–$275 million (Unlevered), with Net Free Cash Flow expected to be approximately 25% of EBITDA.
• Full-year 2026 Net Interest Expense guidance is approximately $155 million.
• Full-year 2026 Capital Expenditures guidance is $40–$45 million.
• Restructuring actions announced are expected to generate approximately $25 million in near-term annualized net savings, with an additional $5+ million in annualized net savings planned over time.
• Management expects sequential profitability improvement in the Branded Services segment in Q4 as restructuring takes hold.
• Experiential Services expects double-digit revenue and Adjusted EBITDA growth, along with margin expansion, in Q4 and the full year.

Business Segments and Product Lines:

• Branded Services: Revenues were $231.2 million (down 20.0% YoY) and Adjusted EBITDA was $17.6 million (down 57.7% YoY). Performance was pressured by client losses and unfavorable business mix, specifically declines in higher-margin headquarter sales and agency work. Supply Chain and Retail project work grew in Q3.
• Experiential Services: Revenues were $431.6 million (up 14.3% YoY) and Adjusted EBITDA was $35.4 million (up 0.3% YoY). The segment delivered strong demand signals, with events per day growing 13.5% year-over-year. Pricing actions are beginning to offset labor investments.
• Retailer Services: Revenues were $251.0 million (up 1.0% YoY) and Adjusted EBITDA was $32.3 million (up 43.3% YoY). This segment delivered a fourth consecutive quarter of revenue growth with stronger project demand. Double-digit Adjusted EBITDA growth was achieved even excluding tariff refunds.
• Retailer Services Specifics: The Daymon private brand business outperformed expectations and secured new business wins. Priorities include staffing alignment, superior execution, and better operating discipline.

Market and Competitive Landscape:

• Advantage Solutions is positioned as a leading omnichannel retail solutions agency at the intersection of CPG brands and retailers.
• The company continues to leverage data- and technology-powered services to help clients generate demand and optimize e-commerce and digital capabilities.
• Management noted continued strength in Experiential and Retailer Services driving revenue growth excluding divestitures.

Risks and Challenges:

• Branded Services remains under pressure due to client losses and unfavorable business mix.
• The company faces risks related to market-driven wage changes, labor laws, and wage regulations.
• Potential impacts from tariffs and developments with retailers are cited as factors outside the company's control.
• Risks include client procurement strategies, industry consolidation, and changes in client sales/marketing programs.
• Substantial indebtedness and the ability to refinance at favorable rates remain a concern.
• The company must adapt to significant technological change and evolving omni-channel service requirements.

Management Commentary and Tone:

• Dave Peacock, CEO, stated the company delivered its fourth consecutive quarter of revenue growth excluding divestitures.
• Management expressed confidence that the transformation, including restructuring and investments in technology and AI, will translate growth into stronger margins and cash flow.
• The tone indicates a focus on improving profitability in the Branded Services business and increasing efficiency across the company.
• Management reaffirmed confidence in the company's ability to create sustainable long-term value for clients, teammates, and shareholders.

Other Key Points:

• The company announced restructuring actions designed to simplify organizational structure, increase accountability, and improve speed while protecting client-facing resources.
• A $13.9 million payment was made for deferred financing fees related to a line of credit modification during the nine-month period.
• The company repurchased treasury stock costing $19.3 million during the nine months ended September 30, 2026.
• Proceeds from divestitures totaled $41.4 million for the nine-month period.
• An impairment of long-lived assets of $8.1 million was recorded in the quarter.
• The company filed its Quarterly Report on Form 10-Q with the SEC on November 4, 2026.