Advantage Solutions (ADV) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $889.5 million, up 1.8–2.9% year-over-year, driven by Experiential Services growth and moderate Retailer Services gains, while Branded Services declined.

• Adjusted EBITDA declined 12.2% to $75.8 million, impacted by business mix, higher project costs, and continued investments.

• Net loss widened to $62.7 million from $30.4 million year-over-year, mainly due to higher tax expense and restructuring charges.

• Cash at quarter-end was $102.3 million, with $18.7 million in adjusted unlevered free cash flow generated.

• Debt reduction, technology transformation, and AI integration initiatives remained key priorities.

Financial highlights

• Q2 2026 revenues: $889.5 million (+1.8% YoY); Adjusted EBITDA: $75.8 million (down 12.2% YoY); net loss: $62.7 million.

• Experiential Services revenue grew 19.7–19.9% to $416.3 million, with Adjusted EBITDA up 32% to $34.2 million.

• Branded Services revenue declined 20.1% to $236.0 million, Adjusted EBITDA down 36% to $21.8 million.

• Retailer Services revenue increased 2.8% to $237.2 million, Adjusted EBITDA fell 24.9% to $19.9 million.

• Adjusted EBITDA margin for Q2 was 8.5–10.0%, down from 9.9–11.7% a year ago.

Outlook and guidance

• Full-year 2026 revenue and Adjusted EBITDA guidance ranges reiterated, expecting flat to low-single-digit revenue growth and flat to down mid-single-digit Adjusted EBITDA.

• Adjusted unlevered free cash flow guidance reaffirmed at $250–275 million, with net free cash flow conversion of ~25%.

• Sequential improvement expected in Retailer Services in the second half, with gradual Branded Services recovery and continued Experiential Services strength.

• Additional restructuring costs of $1–3 million anticipated through 2027.

• Guidance for interest expense and capital expenditures slightly lowered.