Advantage Restarts Retailer Adjusted EBITDA Growth in Q3 and Announces Restructuring

The Tip Desk · November 4, 2026 · 3 min read

Retailer Services Adjusted EBITDA rose 43.3% to $32.3 million as the company posted $913.7 million in third-quarter revenue and reiterated full-year guidance.

Advantage Solutions Inc. (ADV), a business solutions provider to consumer-packaged goods brands and retailers, reported third-quarter revenue of $913.7 million, down 0.1% from a year earlier after a 1.8% year-over-year increase in the prior quarter.

The company said it delivered a fourth consecutive quarter of revenue growth excluding divestitures. Revenues net of reimbursable expenses increased 0.1% to $782 million. Adjusted EBITDA decreased 14.2% to $85 million, with the margin at 9.3% versus 10.9% a year earlier. Net loss was $25.1 million, or $1.96 a share, versus net income of $20.6 million, or $1.51 a share, a year earlier.

Retailer Services continued revenue growth and returned to Adjusted EBITDA growth. Segment revenue was $251.0 million, up 1.0% year over year after 2.8% growth in the prior quarter. Adjusted EBITDA was $32.3 million, up 43.3%. The company said Supply Chain and Retail project work grew in the quarter and remains a bright spot, that pricing actions are starting to offset labor investments, and that Daymon, its private-brand business, outperformed expectations and secured new business wins.

Experiential Services remained the largest growth engine. Revenue was $431.6 million, up 14.3% year over year after 19.7% growth in the prior quarter. Adjusted EBITDA was $35.4 million, up 0.3%. Events per day grew 13.5% year over year. The company said the segment delivered another strong quarter with healthy demand signals and sustained execution.

Branded Services stayed under pressure. Revenue was $231.2 million, down 20.0% year over year after a 20.1% decline in the prior quarter. Adjusted EBITDA was $17.6 million, down 57.7%. The company attributed the performance to client losses and unfavorable business mix, with declines in higher-margin headquarters sales and agency work. It said it expects sequential profitability improvement in the fourth quarter as restructuring takes hold, and double-digit revenue and Adjusted EBITDA growth, along with margin expansion, in both the fourth quarter and the full year.

Advantage announced restructuring actions expected to generate approximately $25 million in annualized near-term net savings, with more than $5 million in additional annualized net savings planned over time. Chief Executive Officer Dave Peacock said the actions are expected to improve the profitability of Branded Services and increase efficiency across the company, and that, together with investments in technology and AI, the next phase of transformation is designed to translate growth into stronger margins and cash flow.

Adjusted Unlevered Free Cash Flow was $98.7 million, or 115.6% of Adjusted EBITDA, versus $18.7 million, or 24.6% of Adjusted EBITDA, in the prior quarter. Cash and cash equivalents were $131.3 million. Net leverage was 4.6x.

The company reiterated full-year 2026 guidance: revenues excluding reimbursable expenses flat to up low single digits, Adjusted EBITDA flat to down mid single digits, unlevered free cash flow of $250 million to $275 million, net free cash flow of about 25% of EBITDA excluding incremental debt refinancing costs, net interest expense of about $155 million, and capital expenditures of $40 million to $45 million.