Advantage Solutions Inc. reported its financial results for the first quarter ended March 31, 2025, showing a decline in key metrics. Revenues from continuing operations decreased by 4.6% year-over-year to $822 million, down from $861 million in the prior year.
The company's net loss increased by 12% to $56 million, compared to a net loss of $50 million in the first quarter of 2024. Adjusted EBITDA from continuing operations also saw a significant decline of 17.6%, falling to $58.2 million from $70.6 million in the previous year.
Segment performance varied, with Branded Services revenues declining 11.9% and Adjusted EBITDA dropping 18.6%. Experiential Services revenues grew 2.2%, but Adjusted EBITDA decreased 27.7%. Retailer Services revenues decreased 3.1%, and Adjusted EBITDA fell 7.4%.
Management attributed these declines to a weaker economic environment impacting consumer goods clients, lower order volumes, and an intentional client resignation from fiscal year 2024. Temporary impacts from transformation investments and labor shortages also contributed to the results.
Due to heightened market uncertainty, Advantage Solutions lowered its full-year 2025 guidance, now expecting revenue and Adjusted EBITDA to be flat to down low single digits year-over-year. This is a revision from the previous outlook of up low single digits.
Despite the revised guidance, the company reiterated its Adjusted unlevered cash flow guidance at greater than 50% of Adjusted EBITDA. Capital allocation actions included approximately $20 million in voluntary debt repurchases and $1 million in share repurchases during the quarter.
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