Advantage Solutions Inc. Q3 FY2025 earnings call

• Acknowledged team dedication and focus. - Third quarter revenues of $781 million down 2.6% YOY, adjusted EBITDA $99.6 million down 1.4% YOY but sequentially improved. Strong cash flow with adjusted unlevered free cash flow $98 million. - Experiential segment performed strongly; branded services and retailer services had softer trends. - Progress in IT transformation with SAP and Oracle EPM implementations, advancing Pulse system (AI-enabled decision engine), and rolling out centralized labor model. - Focus on deepening customer relationships, elevating technology, and improving labor utilization.

Branded Services: Generated $258 million in revenues and $42 million in adjusted EBITDA, down 9% and 15% year-over-year respectively. Faced uncertain market conditions with headwinds in sales brokerage and omni-commerce but has a robust pipeline. Experiential Services: Generated $274 million in revenues and $35 million in adjusted EBITDA, up 8% and 52% year-over-year respectively. Strong demand for events, execution rate ~91%, with EBITDA margin improving 370 basis points year-over-year. Retailer Services: Generated $249 million in revenues and $23 million in adjusted EBITDA, down 6% and 22% year-over-year respectively. Challenged by project timing and channel mix but has a strong pipeline and is developing bespoke services for retailers.

• Reiterated revenue growth guidance of flat to down low single digits for the year. - Updated EBITDA guidance to mid-single-digit decline, including Acxion Foodservice divestiture and macro challenges. - Expect unlevered free cash flow >50% of EBITDA, strong cash flow generation driven by working capital improvements, lower CapEx, and labor/efficiency initiatives.

• Macro environment challenges affecting consumer demand, impacting branded services and retailer services. - Timing shifts in retailer services project activity. - In-sourcing trends and competition affecting branded services.

Q: Discuss EBITDA outlook and divestiture vs core operations A: Chris Growe mentioned EBITDA change includes divestiture impact and macro backdrop, with experiential growth offsetting branded challenges Q: Retailer services timing and pipeline A: David Peacock discussed third quarter timing issues, improving visibility and pipeline for 2026 Q: Branded services customer losses and in-sourcing A: David Peacock addressed in-sourcing trends, losses to competitors and in-sourcing, with focus on business development and pipeline