Advantage Solutions (ADV) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 3, 2026 astatine 9:44 AM CST 27 min read

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Tuesday, March 3, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — David A. Peacock

• Chief Financial Officer — Christopher Robert Growe

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David A. Peacock: Thanks, operator. Good morning, everyone. Thank you for joining us. I privation to convey our teammates crossed the enactment for their ongoing committedness successfully serving our clients arsenic they navigate the marketplace uncertainty and volatility, helping them accommodate and succeed. Before turning to our results, I would similar to item respective strategical actions we person taken implicit the past fewer months to fortify our instauration for shareholders, employees, and customers and to presumption the institution to thrust sustained show successful 2026 and beyond. First, we moved towards refinancing our indebtedness aboriginal this month, extending maturities to 2030. We had implicit 99% acceptance of a caller indebtedness bundle from our lender group.

This refinancing is intended to supply operating flexibility and heighten our liquidity illustration portion helping america execute our semipermanent leverage people of 3.5 times oregon less. This provides america with greater fiscal flexibility and ensures we person the superior indispensable to proceed investing successful our halfway capabilities portion delivering exceptional work to our clients. This planned refinancing includes a wage down of astir $90,000,000 of our debt. Second, we further sharpened our portfolio done the divestiture of 3 noncore businesses. These transactions streamline our absorption and let america to redeploy superior into higher opportunities aligned with our semipermanent strategy.

As a effect of these actions and our beardown currency travel performance, we ended the twelvemonth with $241,000,000 successful currency and a strengthened equilibrium sheet, positioning america successful a spot of greater stableness and optionality arsenic we participate 2026. Finally, our upcoming reverse banal divided supports broader organization accessibility arsenic we participate our adjacent signifier of growth. Taken together, these initiatives summation our strategical flexibility, heighten operational focus, and let america to determination from defence to offense. Turning to 4th fourth results, nett revenues of $785,000,000 were up astir 3% twelvemonth implicit year, reflecting an improving trajectory successful Experiential Services portion Branded Services proceed to look cyclical headwinds and Retailer Services look slowing walk and immoderate gross timing shifts.

Combined, our wide institution delivered adjusted EBITDA of $88,000,000, which reflects the ongoing premix shifts toward much labor-intensive, lower-margin businesses. Our currency travel procreation was strong, and successful 2025, we generated $174,000,000 successful unlevered escaped currency flow, a important summation from $50,000,000 successful the archetypal half, representing implicit 100% unlevered escaped currency travel conversion, excluding the payroll timing factor. One crushed for this was our palmy SAP implementation earlier this year. Net escaped currency travel of $74,000,000 successful the 2nd fractional exceeded our people of 30% of adjusted EBITDA, excluding payroll timing, and arsenic I discussed earlier, our currency presumption strengthened materially.