Slide 1: Q1'25 Earnings
Q1’25 Earnings Solutions..
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Advantage believes that the use of Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal Adjusted EBITDA by
Slide 3: Q1'25: Commitment to Clients During Challenged Environment
Q1’25: Commitment to Clients During Challenged Environment $696M $58M $(7)M 4.4x Revenues(1) Adjusted EBITDA(2) Adjusted Unlevered Net Leverage Ratio(3) -5% YOY -18% YOY Free Cash Flow(3) ► Tariff concerns are creating a softer operating environment with near-term volatility expected from customers
Slide 4: Uncertain Market Landscape
Uncertain Market Landscape Tariffs Labor Markets ► Likely a modestly adverse net impact on service ► Tight labor markets continued to create offering, dependent on CPG and consumer staffing challenges reactions; proactively implementing cost reduction programs across the company ► Intentional turnov
Slide 5: Advantage Works Across The Entire Path to Purchase
Advantage Works Across The Entire Path to Purchase, Shaping Every Way People Shop Bringing product to digital and physical shelves Category Retail Mgmt Media Brokerage Order to Omni- Demo & (HQ Sales) Cash Commerce Sampling Supply Branding Chain Merchan- dising Into shoppers’ Branded Services Experi
Slide 6: Q1'25 Business Segment Updates
Q1’25 Business Segment Updates Branded Services Experiential Services Retailer Services ► Headwinds from lighter consumer ► Demand remained strong across ► Pricing actions and cost discipline spending and retail inventory regions and banners were offset by regional staffing destocking challenges ► A
Slide 7: Enhancing Capabilities for Future Growth
Enhancing Capabilities for Executing the transformation phase Future Growth Simplify Transform Accelerate Simplify Advantage’s portfolio, Modernize tech, equip teammates to Sustainable long-term growth operations and financial reporting work smarter and build capabilities Internal Use Only 7
Slide 8: On Pace to Implement IT Transformation Initiatives
On Pace to Implement IT Transformation Initiatives IT and data investments are foundational to help support teammates in better serving clients Modernizing New IT Systems Technology AI Initiatives Modernizing systems for increased Equipping teammates with the right Enabling competitive differentiati
Slide 9: Elimination of Duplicative and Outdated IT Systems
Elimination of Duplicative and Outdated IT Systems New IT Systems ERP Implementation Incremental IT Costs Order Management/Admin 2025 Services ~$10M - $15M CRM Upgrade HR Transformation Frontline Tech Tools Anticipated Savings From Elimination of Systems Next Generation Selling 2025 2026 2027 Other
Slide 10: Advancing Workforce Optimization Strategies
Advancing Workforce Optimization Strategies Enhancing how Advantage assigns and deploys talent in 85,000+ retail stores Enhance Teammate Optimize Operating Leverage Experience Structure Technology ► Increase teammate retention and help ► Proof of concept and pilot program for a ► Optimize workforce
Slide 11: Lowering 2025 Outlook Due to Macro Uncertainty
Lowering 2025 Outlook Due to Macro Uncertainty Macro Environment 2025 Guidance Cash Flow ► Acknowledging a softer ► Revenues and Adjusted ► Potential for upside in environment in the broader EBITDA expect to range from delivering >50% of Adjusted consumer market down low single digits to flat EBITDA
Slide 12: Progress on Transformation in a Challenging Market Environment
Progress on Transformation in a Challenging Market Environment TOTAL ADVANTAGE Highlights Revenues (Continuing Operations) $ in millions ► Q1 performance impacted by intensifying Y/Y growth (5)% (5)%(1) headwinds across CPG and retail along $821.8 $861.4 with discrete items, including a calendar $12
Slide 13: CPG Softness and Client Exits Weighed on Performance
CPG Softness and Client Exits Weighed on Performance BRANDED SERVICES Highlights Revenues (Continuing Operations) $ in millions ► Results impacted by two intentional client Y/Y growth (12)% (9)%(1) exits in Q1’24, client loss in 2H’24, and $329.1 effects from retailer inventory destocking $289.8 $46
Slide 14: Customer Demand Remains Healthy
Customer Demand Remains Healthy EXPERIENTIAL SERVICES Highlights Revenues (Continuing Operations) $ in millions ► Strong client demand across regions and Y/Y growth 2% (1)%(1) banners; continued momentum beyond $314.0 traditional sampling $307.4 $93.2 $85.0 ► Events per day (EPD) down 1% due to $220
Slide 15: Solid Demand Offset by Staffing Challenges
Solid Demand Offset by Staffing Challenges RETAILER SERVICES Highlights Revenues (Continuing Operations) $ in millions ► Actions underway to quickly address Y/Y growth (3)% staffing challenges that impacted retail $217.9 $225.0 merchandising ► Market headwinds continue to affect regional grocery sto
Slide 16: Healthy Balance Sheet and Liquidity Position
Healthy Balance Sheet and Liquidity Position As of 3/31/2025 Net Debt Overview Maturity Schedule $ in millions $ in millions Maturity Rate Outstanding $1,502(3) First Lien Term Loan 2027 S+4.25%(2) $1,103 $399 Senior Secured Notes 2028 6.50% 595 Total Gross Debt $1,698 $1,103 $595 Less: Cash and Cas
Slide 17: Improved Cash Flow Expected Post Q1
Improved Cash Flow Expected Post Q1 Capex & Adj. Unlevered FCF Capital Allocation Actions ► Capex from continuing operations was ~$15M ► ~$20M (face value) of voluntary debt repurchases and ~$3M in mandatory debt amortization ► Adjusted Unlevered FCF was a ~$7M use of cash o Net working capital was
Slide 18: Revised 2025 Guidance
Revised 2025 Guidance $ in millions, unless otherwise noted Current Prior Revenues Down Low Single Digits to Flat Up Low Single Digits Adjusted EBITDA Down Low Single Digits to Flat Up Low Single Digits (similar to growth rate of 2024) Adjusted UFCF Conversion >50% of Adjusted EBITDA >50% of Adjuste
Slide 19: Appendix
Appendix 19
Slide 20: Non-GAAP Reconciliation (1/8)
Non-GAAP Reconciliation (1/8) Net Loss to Adjusted EBITDA from Continuing Operations and Discontinued Operations Three Months Continuing Operations Three Months Ended March 31, Discontinued Operations Ended March 31, (amounts in thousands) 2025 2024 (amounts in thousands) 2024 Net loss from continui
Slide 21: Non-GAAP Reconciliation (2/8)
Non-GAAP Reconciliation (2/8) Branded Services Segment Operating Loss to Adjusted EBITDA Branded Services segment Three Months Ended March 31, (amounts in thousands) 2025 2024 Operating loss $ (15,322) $ (22,118) Add: Depreciation and amortization 31,462 31,987 Stock-based compensation expense (a) 2
Slide 22: Non-GAAP Reconciliation (3/8)
Non-GAAP Reconciliation (3/8) Experiential Services Segment Operating Loss to Adjusted EBITDA Experiential Services segment Three Months Ended March 31, (amounts in thousands) 2025 2024 Operating loss $ (3,504) $ (3,642) Add: Depreciation and amortization 10,537 9,920 Stock-based compensation expens
Slide 23: Non-GAAP Reconciliation (4/8)
Non-GAAP Reconciliation (4/8) Retailer Services Segment Operating Income/(Loss) to Adjusted EBITDA Retailer Services segment Three Months Ended March 31, (amounts in thousands) 2025 2024 Operating income (loss) $ 4,205 $ (4,190) Add: Depreciation and amortization 8,362 7,841 Stock-based compensation
Slide 24: Non-GAAP Reconciliation (5/8)
Non-GAAP Reconciliation (5/8) Revenues to Revenues Net of Pass-Through Costs Three Months Ended March 31, (amounts in thousands) 2025 2024 Revenues Branded services $ 289,841 $ 329,054 Experiential services 314,020 307,351 Retailer services 217,931 225,007 Total revenues $ 821,792 $ 861,412 Less: Re
Slide 25: Non-GAAP Reconciliation (6/8)
Non-GAAP Reconciliation (6/8) Adjusted Unlevered Free Cash Flow Three Months Ended (amounts in thousands) March 31, 2025 Net cash used in operating activities from continuing and discontinued operations $ (39,627) Less: Purchase of property and equipment (15,104) Add: Cash payments for interest 28,0
Slide 26: Non-GAAP Reconciliation (7/8)
Non-GAAP Reconciliation (7/8) LTM Adjusted EBITDA, Net Debt and Net Debt to Adjusted EBITDA Ratio Twelve Months Ended Continuing and Discontinued Operations March 31, 2025 (Amounts in thousands) (amounts in thousands) March 31, 2025 Net loss $ (377,785) Current portion of long-term debt $ 13,250 Add
Slide 27: Non-GAAP Reconciliation (8/8)
Non-GAAP Reconciliation (8/8) Footnotes Represents non-cash compensation expense related to performance stock units, restricted stock units, and stock options under the 2020 Advantage Solutions Incentive Award Plan and the (a) Advantage Solutions 2020 Employee Stock Purchase Plan. (b) Represents exp