Key Highlights

• Q3 2026 revenues were $913.7 million, largely flat compared to $915.0 million in the prior-year quarter

• Net loss of $25.1 million in Q3 2026, compared to Net Income of $20.6 million in Q3 2025

• Restructuring actions announced to drive approximately $25 million in annualized near-term net savings

• Full-year 2026 guidance for revenues, Adjusted EBITDA, and Cash Flow was reiterated

Advantage Solutions Inc.(NASDAQ:ADV), a Business solutions provider to consumer-packaged goods brands and retailers, reported financial results for the third quarter ended September 30, 2026. Total revenues came in at $913.7 million, essentially flat against $915.0 million in the same period a year ago. The company reported a net loss of $25.1 million, reversing the $20.6 million net income recorded in Q3 2025. Adjusted EBITDA fell 14.2% to $85.4 million, with margins compressing to 9.3% from 10.9%.

Divergent Segment Performance

The quarter underscored a clear split in performance across the company's three operating segments. Experiential Services was the top performer, generating $431.6 million in revenues — a 14.3% increase year over year — driven by healthy Demand signals and sustained high execution levels, with events per day growing 13.5% compared to Q3 2025. For the nine-month period, the segment's revenues reached $1.23 billion, up 18.7% from $1.04 billion a year ago. Retailer Services posted $251.0 million in revenue, up 1.0%, marking a fourth consecutive quarter of growth, supported by project demand and better cost management. Adjusted EBITDA in Retailer Services rose 43.3% to $32.3 million. In contrast, Branded Services continued to face headwinds, with revenues declining 20.0% to $231.2 million. The segment was affected by client losses and an unfavorable business mix, with particular declines in higher-margin headquarter sales and agency activities. Branded Services Adjusted EBITDA fell 57.7% to $17.6 million.

Restructuring and Strategic Actions

Alongside the Earnings release, Advantage Solutions announced a restructuring plan expected to generate approximately $25 million in annualized near-term net savings, with an additional $5 million or more in annualized savings planned over time. The restructuring targets the Branded Services segment specifically, aiming to simplify the organizational structure, increase accountability, and improve speed of execution while protecting client-facing resources. CEO Dave Peacock indicated that the restructuring, combined with ongoing technology and AI investments, is designed to translate growth into improved margins and cash flow over time. The company expects sequential profitability improvement in Q4 as restructuring actions take hold.

Cash Flow and Balance Sheet Snapshot

The company generated $98.7 million of Adjusted Unlevered Free Cash Flow during the quarter, representing 115.6% of Adjusted EBITDA. Capital expenditures were $10.4 million. As of September 30, 2026, the company held $131.3 million in cash and cash equivalents against gross Debt of $1.58 billion, resulting in a net Leverage Ratio of 4.6 times. For the full year 2026, the company reiterated its outlook of flat to low-single-digit Revenue growth (excluding reimbursable expenses), flat to mid-single-digit Adjusted EBITDA decline, and unlevered free cash flow of $250 million to $275 million. Capital expenditures are projected in the $40 million to $45 million range, with net interest expense of approximately $155 million.

What Lies Ahead

Advantage Solutions heads into Q4 2026 with the expectation of double-digit revenue and Adjusted EBITDA growth in its Experiential Services segment, along with Margin expansion. The Branded Services segment faces a transitional period, with restructuring expected to drive sequential improvement. The company also noted that its private Brand business, Daymon, outperformed expectations and secured new business during the quarter. On the Retailer Services side, priorities remain centered on staffing alignment, execution, and operating discipline. With its full-year guidance intact, the company appears to be betting on cost actions and segmental Rebalancing to deliver on its targets.