Revenue growth remains stagnant with quarterly figures fluctuating between $821.8 million and $939.3 million, while gross margins have struggled to exceed 15.4% over the last ten quarters.
| Sales/Revenue | 3.59B | 3.54B | 3.57B | 3.9B | 3.65B | 3.6B | 3.16B | 3.79B | 3.71B | 2.1B | 1.9B |
| Revenue Growth % | 1.81% | -0.66% | -8.56% | 6.96% | 1.22% | 14.15% | -16.63% | 2.09% | 76.53% | 10.83% | - |
| Cost of Goods Sold | 3.09B | 3.05B | 3.06B | 3.42B | 3.17B | 2.96B | 2.55B | 3.16B | 3.11B | 1.61B | 1.45B |
| COGS % of Revenue | - | 86.05% | 85.78% | 87.56% | 87.03% | 82.28% | 80.85% | 83.58% | 83.84% | 76.72% | 76.74% |
| Gross Profit | 503.34M | 494.35M | 507.27M | 485.08M | 472.85M | 638.17M | 604.19M | 621.62M | 598.98M | 488.95M | 440.79M |
| Gross Margin % | 14.02% | 13.95% | 14.22% | 12.44% | 12.97% | 17.72% | 19.15% | 16.42% | 16.16% | 23.28% | 23.26% |
| Gross Profit Growth % | - | -2.55% | 4.58% | 2.59% | -25.91% | 5.63% | -2.8% | 3.78% | 22.5% | 10.93% | - |
| Operating Expenses | 611.02M | 620.81M | 802.25M | 438.49M | 1.97B | 408.13M | 537.18M | 407.95M | 377.73M | 267.8M | 236.81M |
| OpEx % of Revenue | - | 17.52% | 22.5% | 11.24% | 53.94% | 11.33% | 17.02% | 10.78% | 10.19% | 12.75% | 12.5% |
| Selling, General & Admin | 264.5M | 276.06M | 324.6M | 250.24M | 175.36M | 168.09M | 306.28M | 175.37M | 152.49M | 97.54M | 72.22M |
| SG&A % of Revenue | - | 7.79% | 9.1% | 6.42% | 4.81% | 4.67% | 9.71% | 4.63% | 4.11% | 4.64% | 3.81% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 344.75M | 477.66M | 188.25M | 1.79B | 240.04M | 230.9M | 232.57M | 225.23M | 170.26M | 164.58M |
| Operating Income | -107.68M | -126.47M | -294.98M | 46.59M | -1.49B | 230.05M | 67.01M | 213.67M | -1.09B | 221.15M | 203.98M |
| Operating Margin % | -3% | -3.57% | -8.27% | 1.19% | -40.97% | 6.39% | 2.12% | 5.65% | -29.4% | 10.53% | 10.76% |
| Operating Income Growth % | - | 57.13% | -733.16% | 103.12% | -749.4% | 243.32% | -68.64% | 119.6% | -592.84% | 8.41% | - |
| EBITDA | 95.78M | 75.79M | -90.43M | 255.44M | -1.28B | 470.09M | 305.6M | 446.25M | -864.68M | 391.41M | 368.57M |
| EBITDA Margin % | 2.67% | 2.14% | -2.54% | 6.55% | -35.05% | 13.05% | 9.68% | 11.79% | -23.32% | 18.64% | 19.45% |
| EBITDA Growth % | 228.59% | 183.81% | -135.4% | 119.99% | -371.84% | 53.82% | -31.52% | 151.61% | -320.92% | 6.2% | - |
| D&A (Non-Cash Add-back) | 203.47M | 202.26M | 204.55M | 208.86M | 216.05M | 240.04M | 238.6M | 232.57M | 225.23M | 170.26M | 164.58M |
| EBIT | -111.75M | -126.38M | -294.4M | 46.88M | -1.47B | 229.09M | 53.64M | 213.67M | -1.09B | 221.15M | 203.98M |
| Net Interest Income | -139.37M | -138.94M | -146.79M | -165.73M | -104.39M | -137.93M | -234.04M | -232.08M | -229.64M | -167.36M | -160.9M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 139.37M | 138.94M | 146.79M | 165.73M | 104.39M | 137.93M | 234.04M | 232.08M | 229.64M | 167.36M | 160.9M |
| Other Income/Expense | -157.16M | -138.85M | -146.21M | -165.45M | -83.15M | -138.88M | -247.41M | -232.08M | -1.57B | -167.36M | -160.9M |
| Pretax Income | -264.84M | -265.32M | -441.19M | -118.86M | -1.58B | 91.17M | -180.4M | -18.4M | -1.32B | 53.79M | 43.09M |
| Pretax Margin % | -7.38% | -7.49% | -12.37% | -3.05% | -43.25% | 2.53% | -5.72% | -0.49% | -35.59% | 2.56% | 2.27% |
| Income Tax | -21.41M | -37.58M | -62.79M | -37.65M | -158.44M | 33.62M | -5.33M | 1.35M | -168.33M | 22.62M | 18.2M |
| Effective Tax Rate % | 8.08% | 14.17% | 14.23% | 31.67% | 10.05% | 36.87% | 2.96% | -7.35% | 12.76% | 42.06% | 42.24% |
| Net Income | -243.44M | -227.74M | -326.96M | -63.32M | -1.38B | 54.49M | -175.81M | -21.17M | -1.16B | 32.15M | 24.59M |
| Net Margin % | -6.78% | -6.43% | -9.17% | -1.62% | -37.86% | 1.51% | -5.57% | -0.56% | -31.21% | 1.53% | 1.3% |
| Net Income Growth % | 35.53% | 30.35% | -416.35% | 95.41% | -2633.33% | 131% | -730.37% | 98.17% | -3699.9% | 30.72% | - |
| Net Income (Continuing) | -243.44M | -227.74M | -378.4M | -81.21M | -1.42B | 57.55M | -175.07M | -19.76M | -1.15B | 31.16M | 24.89M |
| Discontinued Operations | 0 | 0 | 53.63M | 20.83M | 41.35M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | -1.28M | 105.49M | 98.98M | 96.95M | 92.01M | 76.85M | 36.2M | 27.24M |
| EPS (Diluted) | -18.62 | -17.50 | -25.50 | -5.00 | -108.25 | 4.25 | -19.75 | -2.43 | -142.00 | 4.00 | 3.00 |
| EPS Growth % | 35.09% | 31.37% | -410% | 95.38% | -2647.06% | 121.52% | -714.43% | 98.29% | -3650% | 33.33% | - |
| EPS (Basic) | - | -17.50 | -25.50 | -5.00 | -108.25 | 4.25 | -19.75 | -2.43 | -142.00 | 4.00 | 3.00 |
| Diluted Shares Outstanding | 13.08M | 12.98M | 12.86M | 12.95M | 12.75M | 12.84M | 8.93M | 8.15M | 8.15M | 8.15M | 8.15M |
| Basic Shares Outstanding | 13.08M | 12.98M | 12.86M | 12.95M | 12.75M | 12.73M | 8.93M | 8.15M | 8.15M | 8.15M | 8.15M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Structural margin compression risk
According to the provided quarterly income statements, Advantage Solutions has struggled to maintain consistent top-line momentum, with revenue fluctuating between $821.8 million and $939.3 million over the last ten quarters, ultimately reflecting a lack of meaningful organic growth in a highly saturated North American retail environment.
The revenue profile suggests a business model that is highly sensitive to CPG spending cycles rather than secular growth drivers. The lack of consistent year-over-year expansion indicates that the company may be reaching a ceiling in its core retail brokerage and merchandising services.
As reported in financial statements, the company maintains a thin gross margin profile, peaking at 15.4% in 2024Q3, which highlights the inherent difficulty of scaling a labor-intensive service model where wage inflation consistently threatens to erode the thin service premiums charged to major retail clients.
The inability to consistently expand gross margins suggests limited pricing power within the consolidated retail landscape. Investors should monitor whether the company can shift toward higher-margin digital services to offset the structural drag of its massive field labor force.
Based on reported figures, Advantage Solutions has recorded net losses in eight of the last ten quarters, with significant quarterly volatility in net income that appears driven by non-operating items and potential asset impairments rather than core operational efficiency or sustainable bottom-line profitability for shareholders.
The frequent divergence between operating income and net income suggests that the company is burdened by significant non-cash charges or restructuring costs. This pattern warrants further investigation into the nature of these recurring losses to determine if they represent true operational failure or accounting adjustments.
Data from the income statement indicates that SG&A expenses have fluctuated significantly, ranging from $53.3 million to $98.4 million per quarter, which prevents the company from achieving the operating leverage necessary to translate gross profit into consistent positive operating income across various fiscal periods.
The lack of disciplined expense management suggests that the company may be struggling to integrate its various acquisitions or manage its overhead effectively. Without a more stable cost structure, the company remains vulnerable to even minor fluctuations in revenue.
While some may argue for the defensive nature of CPG outsourcing, the company's negative operating margins in several recent quarters suggest that the core business model may be fundamentally challenged by the ongoing shift toward e-commerce and the potential obsolescence of traditional in-store merchandising services.
Short-sellers would likely focus on the company's inability to generate consistent operating profit despite its scale. The risk remains that the company's reliance on physical retail presence is becoming a liability in an increasingly digital-first consumer goods landscape.
Quick answers to the most common questions about buying ADV stock.
For fiscal year 2025, Advantage Solutions Inc. (ADV) reported total revenue of $3.54B. This represents a 86.9% increase compared to $1.90B in 2015.
Advantage Solutions Inc. (ADV) reported a net loss of $227.7M for the fiscal year ending 2025.
Advantage Solutions Inc. (ADV) reported an operating income of $-126.5M, resulting in an operating profit margin of -3.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Advantage Solutions Inc. (ADV) generated $494.3M in gross profit for the year, representing a gross profit margin of 14.0%. This demonstrates the company's core pricing power and production efficiency.