Q3 FY2026
Filed Nov 4, 2026Advantage Solutions Reports Third Quarter 2026 Results
Experiential Services and Retailer Services produced revenue momentum, but Branded Services declined sharply and consolidated Adjusted EBITDA, margin, operating income and GAAP earnings deteriorated. The company reiterated fiscal 2026 guidance and announced restructuring actions expected to drive approximately $25 million in annualized near-term net savings.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenues, three months ended September 30GAAP | $913.7M | – | (0.1%) |
| Revenues, net of reimbursable expenses, three months ended September 30non-GAAP | $782M | – | 0.1% |
| Cost of revenues, three months ended September 30GAAP | $784.6M | – | – |
| Selling, general, and administrative expenses, three months ended September 30GAAP | $62.48M | – | – |
| Impairment of long-lived assets, three months ended September 30GAAP | $8.09M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $51.01M | – | – |
| Total operating expenses, three months ended September 30GAAP | $906.2M | – | – |
| Operating income, three months ended September 30GAAP | $7.54M | – | (81.2%) |
| Interest expense, net, three months ended September 30GAAP | $38.76M | – | – |
| Net loss, three months ended September 30GAAP | −$25.10M | – | (222.0%) |
| Basic loss per common share, three months ended September 30GAAP | $(1.96) | – | – |
| Diluted loss per common share, three months ended September 30GAAP | $(1.96) | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $85.38M | – | (14.2%) |
| Adjusted EBITDA Margin, three months ended September 30non-GAAP | 9.3% | – | – |
| Adjusted Unlevered Free Cash Flow, three months ended September 30non-GAAP | $98.71M | – | – |
| Adjusted Unlevered Free Cash Flow as a percentage of Adjusted EBITDA, three months ended September 30non-GAAP | 115.6% | – | – |
| Total Revenues, nine months ended September 30GAAP | $2.67B | – | 2.4% |
| Operating income, nine months ended September 30GAAP | $13.39M | – | (62.3%) |
| Net loss, nine months ended September 30GAAP | −$159.6M | – | (141.9%) |
| Basic loss per common share, nine months ended September 30GAAP | $(12.34) | – | – |
| Diluted loss per common share, nine months ended September 30GAAP | $(12.34) | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $229.0M | – | (6.2%) |
| Adjusted EBITDA Margin, nine months ended September 30non-GAAP | 8.6% | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $68.23M | – | – |
| Purchase of property and equipment and development of capitalized software, nine months ended September 30GAAP | −$31.23M | – | – |
| Net cash used in financing activities, nine months ended September 30GAAP | −$180.3M | – | – |
| Branded Services operating loss, three months ended September 30GAAP | −$24.62M | – | (400.4%) |
| Experiential Services operating income, three months ended September 30GAAP | $15.19M | – | (27.4%) |
| Retailer Services operating income, three months ended September 30GAAP | $16.97M | – | 53.5% |
| Branded Services Adjusted EBITDA, three months ended September 30non-GAAP | $17.60M | – | (57.7%) |
| Experiential Services Adjusted EBITDA, three months ended September 30non-GAAP | $35.42M | – | 0.3% |
| Retailer Services Adjusted EBITDA, three months ended September 30non-GAAP | $32.35M | – | 43.3% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Branded Services, three months ended September 30Performance remained under pressure by client losses and unfavorable business mix, with declines in higher-margin headquarter sales and agency. Supply Chain and Retail project work grew in Q3. | $231.2M | – | (20.0%) |
| Experiential Services, three months ended September 30Delivered another strong quarter, supported by healthy demand signals. Q3 events per day grew 13.5% year-over-year, and pricing actions started to offset labor investments. | $431.6M | – | 14.3% |
| Retailer Services, three months ended September 30Delivered a fourth consecutive quarter of revenue growth with stronger project demand. Daymon outperformed expectations and secured new business wins. | $251.0M | – | 1.0% |
| Branded Services, nine months ended September 30Performance remained under pressure by client losses and unfavorable business mix, with declines in higher-margin headquarter sales and agency. | $724.1M | – | (17.1%) |
| Experiential Services, nine months ended September 30Healthy demand signals supported the segment. | $1.23B | – | 18.7% |
| Retailer Services, nine months ended September 30Stronger project demand supported revenue growth. | $715.3M | – | 2.6% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2026 outlook
- RevenueFlat to Up Low Single Digits
- NoteAdjusted EBITDA: Flat to Down Mid Single Digits
- NoteFree Cash Flow, Unlevered: $250 – $275M
- NoteFree Cash Flow, Net: ~25% of EBITDA
- NoteNet Interest Expense: ~$155
- NoteCapex: $40 to $45
Capital returns
- Purchase of treasury stock: $(19,252) (in thousands) for the nine months ended September 30, 2026.
- Payments for taxes related to net share settlement of equity awards: $(4,610) (in thousands) for the nine months ended September 30, 2026.
What drove it
- Experiential Services sustained high levels of execution, with Q3 events per day growing 13.5% year-over-year.
- Retailer Services reported stronger project demand, stronger cost management, and Daymon new business wins.
- Branded Services Supply Chain and Retail project work grew in Q3.
- The company announced restructuring actions expected to drive approximately $25 million in annualized near-term net savings, with $5+ million in additional annualized net savings planned over time.
Concerns
- Branded Services revenue declined (20.0%) and Adjusted EBITDA declined (57.7%) in the third quarter.
- Consolidated Adjusted EBITDA declined (14.2%) and Adjusted EBITDA Margin declined to 9.3% from 10.9%.
- The company reported a net loss of $(25,098) (in thousands), compared with net income of $20,565 (in thousands).
- Interest expense, net was $38,758 (in thousands), compared with $34,954 (in thousands).
- Total Net Debt was $1,447,313 (in thousands) and the Net Debt / LTM Adjusted EBITDA ratio was 4.6x.
What to watch
- Whether Branded Services achieves the stated expectation of sequential profitability improvement in Q4 as restructuring takes hold.
- Whether Experiential Services delivers the stated expectation for double-digit revenue and Adjusted EBITDA growth, along with margin expansion, in Q4 and the full year.
- Whether Retailer Services sustains revenue and Adjusted EBITDA growth through project demand, staffing alignment, execution and operating discipline.
- Progress against the reiterated fiscal 2026 outlook for revenues, Adjusted EBITDA, unlevered free cash flow, net free cash flow conversion, net interest expense and capex.
Balance sheet and cash flow
- Cash and cash equivalents were $131,322 (in thousands) as of September 30, 2026, compared with $240,850 (in thousands) as of December 31, 2025.
- Current portion of long-term debt was $25,865 (in thousands) and long-term debt, net of current portion, was $1,510,051 (in thousands) as of September 30, 2026.
- Total debt was $1,578,635 (in thousands), Total Net Debt was $1,447,313 (in thousands), and the Net Debt / LTM Adjusted EBITDA ratio was 4.6x as of September 30, 2026.
- LTM Adjusted EBITDA was $316,625 (in thousands) as of September 30, 2026.
- Quarterly capex was $10,396 (in thousands), and quarterly net cash provided by operating activities was $51,022 (in thousands).
- Nine-month net cash provided by operating activities was $68,234 (in thousands), compared with $15,902 (in thousands).
- Nine-month principal payments on long-term debt were $(144,251) (in thousands), compared with $(9,938) (in thousands).
- Cash, cash equivalents and restricted cash were $143,425 (in thousands) at September 30, 2026, compared with $252,987 (in thousands) at the beginning of the period.
Analysis
Third-quarter reported revenue was $913,739 (in thousands), down (0.1%) from $915,012 (in thousands). Revenues, net of reimbursable expenses, increased 0.1% to $782 million. The result reflects a pronounced divergence across the operating segments: Experiential Services revenue increased 14.3% to $431,619 (in thousands) and Retailer Services increased 1.0% to $250,968 (in thousands), while Branded Services declined (20.0%) to $231,152 (in thousands).
Profitability weakened at the consolidated level. Operating income was $7,538 (in thousands), down (81.2%), while Adjusted EBITDA was $85,377 (in thousands), down (14.2%), and Adjusted EBITDA Margin was 9.3% versus 10.9%. The company reported a net loss of $(25,098) (in thousands), compared with net income of $20,565 (in thousands), and diluted loss per common share was $(1.96), compared with diluted income per common share of $1.51. Branded Services was the principal operating drag, reporting operating loss of $(24,620) (in thousands) and Adjusted EBITDA of $17,604 (in thousands), down (57.7%).
Experiential Services maintained demand momentum, including 13.5% year-over-year growth in Q3 events per day, but segment Adjusted EBITDA increased only 0.3% to $35,425 (in thousands). Retailer Services provided the strongest profit improvement: operating income increased 53.5% to $16,968 (in thousands) and Adjusted EBITDA increased 43.3% to $32,348 (in thousands). Management cited stronger project demand, cost management, and better-than-expected performance at Daymon. Branded Services continues to face client losses and unfavorable mix, including declines in higher-margin headquarter sales and agency.
Cash generation was a relative positive. Quarterly Adjusted Unlevered Free Cash Flow was $98,712 (in thousands), or 115.6% of Adjusted EBITDA. The company ended the quarter with $131,322 (in thousands) of cash and cash equivalents, while Total Net Debt was $1,447,313 (in thousands) and Net Debt / LTM Adjusted EBITDA was 4.6x. For the nine months, net cash provided by operating activities improved to $68,234 (in thousands) from $15,902 (in thousands), while principal payments on long-term debt were $(144,251) (in thousands).
Advantage reiterated fiscal 2026 outlook for revenue of Flat to Up Low Single Digits, Adjusted EBITDA of Flat to Down Mid Single Digits, unlevered free cash flow of $250 – $275M, net free cash flow of ~25% of EBITDA, net interest expense of ~$155, and capex of $40 to $45. The company also announced restructuring expected to generate approximately $25 million in annualized near-term net savings, with $5+ million of additional annualized net savings planned over time. The near-term execution focus is Branded Services profitability improvement, while the company expects double-digit revenue and Adjusted EBITDA growth and margin expansion in Experiential Services in Q4 and the full year.
Management, verbatim
We delivered our fourth consecutive quarter of revenue growth excluding divestitures, driven by continued strength in Experiential and Retailer Services, and we are reaffirming our full-year guidance.
Dave Peacock, Chief Executive Officer
The restructuring announced today is expected to generate approximately $25 million in near-term annualized savings net of investment while improving the profitability of our Branded Services business and increasing efficiency across the company.
Dave Peacock, Chief Executive Officer
Together with our investments in technology and AI, this next phase of our transformation is designed to translate growth into stronger margins and cash flow, reinforcing our confidence in Advantage’s ability to create sustainable long-term value for our clients, teammates, and shareholders.
Dave Peacock, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Non-GAAP EPS was not reported.
- Prior-quarter comparisons were not reported for the listed metrics.
- Prior-year revenue, prior-year operating income, prior-year net income and prior-year cash flow were not reported for the quarterly revenues net of reimbursable expenses and quarterly Adjusted Unlevered Free Cash Flow metrics.
- A prior earnings-release outlook was not provided, so comparison of reported results with prior guidance is unavailable.
- Dividends were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.