Strong Experiential Services performance and improved Retailer Services profitability drove Adjusted EBITDA growth
Centralized labor model implementation continues to enhance execution, productivity, and margins
Reaffirming 2026 guidance for Revenues, Adjusted EBITDA and Cash Flow
ST. LOUIS, May 06, 2026 (GLOBE NEWSWIRE) -- Advantage Solutions Inc. (NASDAQ: ADV) ("Advantage," "Advantage Solutions," the "Company," "we," or "our"), a leading business solutions provider to consumer goods manufacturers and retailers, today reported financial results for the three months ended March 31, 2026.
Revenues for the three months ended March 31, 2026 were $869.6 million compared with $821.8 million, and net loss was $71.8 million compared with a net loss of $56.1 million.
Q1'26 Financial Highlights
-----------------------------------------------------------------
-- Revenues increased 5.8% to $869.6 million and Adjusted
EBITDA increased 16.4% to $67.7 million
-- Experiential Services delivered very strong growth
driven by higher event volumes and improved execution,
while Branded Services remained under pressure, and
Retailer Services showed improved profitability
-- Strengthened the balance sheet through debt reduction
and the extension of maturities to 2030, improving
liquidity and financial flexibility. Ended the quarter
with $144 million in cash after $131 million in debt
paydown
"Advantage delivered a solid start to the year, highlighted by strong growth in Experiential Services and disciplined execution across the business," said Advantage CEO Dave Peacock. "While the environment remains uncertain, we are making meaningful progress on our growth and productivity initiatives, including our centralized labor model and technology transformation. We remain focused on driving efficiency, generating strong cash flow, and positioning the Company for sustainable, profitable growth."
Consolidated Financial Summary
-------------------------------------------------------------------
Three Months Ended
(amounts in thousands) March 31, Change (Reported)
2026 2025 $ %
--------- --------- --------- ---------
Total Revenues $ 869,601 $ 821,792 $ 47,809 5.8%
Total Net Loss $(71,831) $(56,130) $(15,701) (28.0%)
Total Adjusted EBITDA $ 67,747 $ 58,181 $ 9,566 16.4%
Adjusted EBITDA Margin 7.8% 7.1%
----------------------- -------- -------- -------- ---------
Segment Financial Summary
---------------------------------------------------------------
Revenues
---------------------------------------------------------------
Segment Three Months Ended March 31,
--------------------------------------
YoY
(amounts in thousands) 2026 2025 (Reported)
----------------------- ------------ ------------ ----------
Branded Services $ 256,992 $ 289,841 (11.3%)
Experiential Services $ 385,480 $ 314,020 22.8%
Retailer Services $ 227,129 $ 217,931 4.2%
----------------------- -------- -------- ----------
Total $ 869,601 $ 821,792 5.8%
----------------------- -------- -------- ----------
Operating (Loss) Income
---------------------------------------------------------------
Three Months Ended March 31,
--------------------------------------
YoY
Segment 2026 2025 (Reported)
----------------------- ------------ ------------ ----------
Branded Services $ (16,061) $ (15,322) (4.8%)
Experiential Services $ 11,499 $ (3,504) NMF
Retailer Services $ 8,724 $ 4,205 NMF
----------------------- -------- -------- ----------
Total $ 4,162 $ (14,621) NMF
----------------------- -------- -------- ----------
Adjusted EBITDA
---------------------------------------------------------------
Three Months Ended March 31,
--------------------------------------
YoY
Segment 2026 2025 (Reported)
----------------------- ------------ ------------ ----------
Branded Services $ 20,882 $ 27,945 (25.3%)
Experiential Services $ 26,077 $ 12,069 116.1%
Retailer Services $ 20,788 $ 18,167 14.4%
----------------------- -------- -------- ----------
Total $ 67,747 $ 58,181 16.4%
----------------------- -------- -------- ----------
Q1'26 Segment Highlights
Branded Services Experiential Services Retailer Services
-- Continued macro -- Strong Q1 results, -- Revenues and
pressure, client with events growth Adjusted EBITDA
insourcing, of nearly 20% and growth supported by
procurement, and improved execution new business wins,
select client rate (94%) pricing, and key
losses with year-over-year and client program
stabilization sequentially ramps.
initiatives
underway
-- Focused on -- Increasing -- Q1 featured a more
stabilizing the profitability by moderate impact of
revenue base with advancing the the channel mix
stronger client centralized labor shift and improving
retention, model rollout, conversion trends
executive enhancing training in the retail
engagement, and and safety merchandising
targeted growth protocols, and business
opportunities shifting mix towards
higher margin
events
-- Enhancing our value -- Expecting continued -- Solid pipeline
proposition through momentum through the momentum with new
partnerships, year customers and
data/analytics, and programs expected
tools like Pulse to to support growth
deliver measurable
ROI
Cash Flow and Balance Sheet Highlights
(Amounts in Millions)
Period Ended
March 31, 2026
-------------------------------------------------- ---------------
Adjusted Unlevered Free Cash Flow / % of Adjusted
EBITDA $74.4 / 109.8%
-------------------------------------------------- ---------------
Capex $11
-------------------------------------------------- ---------------
Gross Debt $1,592
-------------------------------------------------- ---------------
Cash and Cash Equivalents $144
-------------------------------------------------- ---------------
Net Leverage Ratio(1) 4.2x
-------------------------------------------------- ---------------
Fiscal Year 2026 Outlook
(Amounts in Millions)
Revenues Flat to Up Low Single Digits
---------------------------------------------- ------------------------------
Adjusted EBITDA Flat to Down Mid Single Digits
---------------------------------------------- ------------------------------
Adjusted Unlevered Free Cash Flow Unlevered: $250 -- $275M
Conversion(2) Net: 25% of EBITDA
---------------------------------------------- ------------------------------
Net Interest Expense $160 to $170
---------------------------------------------- ------------------------------
Capex $50 to $60
---------------------------------------------- ------------------------------
2026 revenue outlook excludes reimbursable expenses. 2026 guidance excludes the effect of recently announced divestitures.
Conference Call Details
------------------------------------------------------------------------------
Date/Time May 6, 2026, 8:30 am EDT
----------------------------- -----------------------------------------------
Dial-in (800) 715-9871 within the United States or +1
(10 minutes before the call) (646) 307-1963 outside the United States
Conference ID: 6984882
----------------------------- -----------------------------------------------
Webcast Available at: ADV 1Q26 Earnings Webcast
----------------------------- -----------------------------------------------
Replay (800) 770-2030 within the United States or
+1(609) 800-9909 outside the United States
Playback ID: 6984882#
----------------------------- -----------------------------------------------
Investor Contact: investorrelations@youradv.com
Media Contact: press@youradv.com
NMF = Not Meaningful
(1) Net leverage ratio is defined as Net Debt divided by LTM Adjusted EBITDA.
(2) Net free cash flow is defined as cash flow from operations, less capital expenditures. Net FCF conversion of 25% is excluding incremental debt refinancing costs.
ADV-EARNS
About Advantage Solutions
Advantage Solutions is the leading omnichannel retail solutions agency in North America, uniquely positioned at the intersection of consumer-packaged goods (CPG) brands and retailers. With its data- and technology-powered services, Advantage leverages its unparalleled insights, expertise and scale to help brands and retailers of all sizes generate demand and get products into the hands of consumers, wherever they shop. Whether it's creating meaningful moments and experiences in-store and online, optimizing assortment and merchandising, or accelerating e-commerce and digital capabilities, Advantage is the trusted partner that keeps commerce and life moving. Advantage has offices throughout North America and strategic investments and owned operations in select international markets. For more information, please visit YourADV.com.
Included with this press release are the Company's consolidated and condensed financial statements as of and for the three months ended March 31, 2026. These financial statements should be read in conjunction with the information contained in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") on May 6, 2026.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding the expected future performance of Advantage's business and projected financial results. Forward-looking statements generally relate to future events or Advantage's future financial or operating performance. These forward-looking statements generally are identified by the words "may", "should", "expect", "intend", "will", "would", "could", "estimate", "anticipate", "believe", "predict", "confident", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Advantage and its management at the time of such statements, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, market-driven wage changes or changes to labor laws or wage or job classification regulations, including minimum wage; developments with respect to retailers that are out of our control; the impact from tariffs; future potential pandemics or health epidemics; Advantage's ability to continue to generate significant operating cash flow; client procurement strategies and consolidation of Advantage's clients' industries creating pressure on the nature and pricing of its services; consumer goods manufacturers and retailers reviewing and changing their sales, retail, marketing and technology programs and relationships; Advantage's ability to successfully develop and maintain relevant omni-channel services for our clients in an evolving industry and to otherwise adapt to significant technological change; Advantage's ability to maintain proper and effective internal control over financial reporting in the future; Advantage's substantial indebtedness and our ability to refinance at favorable rates; and other risks and uncertainties set forth in the section titled "Risk Factors" in the Annual Report on Form 10-K filed by the Company with the SEC on March 3, 2026, and in its other filings made from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Advantage assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures and Related Information
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA by Segment, Adjusted Unlevered Free Cash Flow and Net Debt. These are not measures of financial performance calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing Advantage's financial results. Therefore, the measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP, and should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that Advantage's presentation of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of historical non-GAAP measures to their most directly comparable GAAP counterparts are included below.
Advantage believes these non-GAAP measures provide useful information to management and investors regarding certain financial and business trends relating to Advantage's financial condition and results of operations. Advantage believes that the use of Adjusted, Adjusted EBITDA by Segment, Adjusted Unlevered Free Cash Flow, and Net Debt provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Advantage's financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Additionally, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Advantage's non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Adjusted EBITDA and Adjusted EBITDA by Segment are supplemental non-GAAP financial measures of our operating performance. Adjusted EBITDA means net loss before (i) interest expense (net), (ii) provision for (benefit from) income taxes, (iii) depreciation, (iv) amortization of intangible assets, (v) impairment of goodwill, (vi) changes in fair value of warrant liability, (vii) stock based compensation expense, (viii) equity-based compensation of Karman Topco L.P., (ix) fair value adjustments of contingent consideration related to acquisitions, (x) acquisition and divestiture related expenses, (xi) (gain) loss on divestitures, (xii) restructuring expenses, (xiii) reorganization expenses, (xiv) litigation expenses (recovery), (xv) COVID-19 benefits received, (xvi) EBITDA for economic interests in investments and (xvii) other adjustments that management believes are helpful in evaluating our operating performance.
Adjusted EBITDA by Segment means, with respect to each segment, operating income (loss) before (i) depreciation, (ii) amortization of intangible assets, (iii) impairment of goodwill, (iv) stock based compensation expense, (v) equity-based compensation of Karman Topco L.P., (vi) fair value adjustments of contingent consideration related to acquisitions, (vii) acquisition and divestiture related expenses, (viii) restructuring expenses, (ix) reorganization expenses, (x) litigation expenses (recovery), (xi) COVID-19 benefits received, (xii) EBITDA for economic interests in investments and (xiii) other adjustments that management believes are helpful in evaluating our operating performance, in each case, attributable to such segment.
Adjusted EBITDA Margin means Adjusted EBITDA divided by total revenues.
Adjusted Unlevered Free Cash Flow represents net cash provided by (used in) operating activities less purchase of property and equipment as disclosed in the Statements of Cash Flows further adjusted by (i) cash payments for interest, (ii) cash received from interest rate derivatives, (iii) cash paid for income taxes; (iv) cash paid for acquisition and divestiture related expenses, (v) cash paid for restructuring expenses, (vi) cash paid for reorganization expenses, (vii) cash paid for contingent earnout payments included in operating cash flow, (viii) COVID-19 benefits received, (ix) net effect of foreign currency fluctuations on cash, and (x) other adjustments that management believes are helpful in evaluating our operating performance. Adjusted Unlevered Free Cash Flow as a percentage of Adjusted EBITDA means Adjusted Unlevered Free Cash Flow divided by Adjusted EBITDA.
Net Debt represents the sum of current portion of long-term debt and long-term debt, less cash and cash equivalents. With respect to Net Debt, cash and cash equivalents are subtracted from the GAAP measure, total debt, because they could be used to reduce the debt obligations. We present Net Debt because we believe this non-GAAP measure provides useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and to evaluate changes to the Company's capital structure and credit quality assessment.
Advantage Solutions Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended March 31,
--------------------------------
(in thousands, except share and
per share data) 2026 2025
---------------- -------------
Revenues $ 869,601 $ 821,792
Cost of revenues (exclusive of
depreciation and amortization
shown separately below) 761,574 722,754
Selling, general, and
administrative expenses 53,309 64,865
Depreciation and amortization 51,570 50,361
Gain on divestiture and income
from investments in European
joint venture (1,014) (1,567)
------------ ------------
Total operating expenses 865,439 836,413
------------ ------------
Operating income (loss) 4,162 (14,621)
Other expenses (income):
Interest expense, net 34,798 34,360
Income from unconsolidated
investments (2,472) --
Other expense, including debt
fees 20,352 10
------------ ------------
Total other expenses, net 52,678 34,370
------------ ------------
Loss before benefit from income
taxes (48,516) (48,991)
Income tax expense 23,315 7,139
------------ ------------
Net loss $ (71,831) $ (56,130)
Basic loss per common share $ (5.49) $ (4.36)
============ ============
Diluted loss per common share $ (5.49) $ (4.36)
============ ============
Weighted-average number of common
shares:
Basic 13,077,003 12,867,338
Diluted 13,077,003 12,867,338
Advantage Solutions Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
March 31, December 31,
(in thousands, except share data) 2026 2025
----------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 143,870 $ 240,850
Restricted cash 12,142 12,137
Accounts receivable, net of
allowance for expected credit
losses of $17,505 and $16,771,
respectively 572,572 594,999
Prepaid expenses and other current
assets 76,169 124,629
---------- ----------
Total current assets 804,753 972,615
Property, equipment, and
capitalized software, net 121,817 115,858
Goodwill 438,900 438,900
Other intangible assets, net 951,593 993,927
Investments in unconsolidated
affiliates 205,336 234,138
Other assets 42,451 37,977
---------- ----------
Total assets $ 2,564,850 $ 2,793,415
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Current portion of long-term debt $ 25,865 $ 13,250
Accounts payable 176,466 162,376
Accrued compensation and benefits 97,101 121,105
Other accrued expenses 87,467 105,449
Deferred revenues 25,141 30,454
---------- ----------
Total current liabilities 412,040 432,634
Long-term debt, net of current
portion 1,520,790 1,660,611
Deferred income tax liabilities 99,107 90,023
Other long-term liabilities 54,885 56,189
---------- ----------
Total liabilities 2,086,822 2,239,457
---------- ----------
Commitments and contingencies (Note
10)
Equity attributable to stockholders
of Advantage Solutions Inc.
Common stock, $0.0001 par value,
197,400,000 shares authorized;
13,080,791 and 13,058,852 shares
issued and outstanding as of
March 31, 2026 and December 31,
2025, respectively 1 1
Additional paid in capital 3,436,566 3,489,020
Accumulated deficit (2,941,178) (2,869,347)
Loans to Karman Topco L.P. (7,834) (7,673)
Accumulated other comprehensive
loss (8,461) (4,158)
Treasury stock, at cost; 43,548
and 515,781 shares as of March
31, 2026 and December 31, 2025,
respectively (1,066) (53,885)
---------- ----------
Total stockholders' equity 478,028 553,958
---------- ----------
Total liabilities and
stockholders' equity $ 2,564,850 $ 2,793,415
========== ==========
Advantage Solutions Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
(in thousands) 2026 2025
----------------- -----------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (71,831) $ (56,130)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating
activities
Non-cash adjustments on
derivatives and non-cash
interest income (451) (2,694)
Amortization of deferred
financing fees 1,297 1,748
Depreciation and amortization 51,570 50,361
Deferred income taxes 9,091 449
Equity-based compensation of
Karman Topco L.P. -- (1,524)
Stock-based compensation 2,000 6,485
Gain on divestiture and income
from investments in European
joint venture (1,014) (1,567)
Income from unconsolidated
investments (2,472) --
Distribution received from
equity method investments 2,684 --
Other 1,178 (1,614)
Changes in operating assets
and liabilities:
Accounts receivable, net 21,507 (38,200)
Prepaid expenses and other
assets 44,070 16,743
Accounts payable 14,404 22,236
Accrued compensation and
benefits (23,716) (41,928)
Deferred revenues (5,265) 2,521
Other accrued expenses and
other liabilities (19,324) 3,487
Net cash provided by (used
in) operating activities 23,728 (39,627)
------------- ----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of investments in
unconsolidated affiliates (2,000) (3,328)
Purchase of property and
equipment and development of
capitalized software (11,401) (15,104)
Proceeds from divestitures 40,919 --
Net cash provided by (used
in) investing activities 27,518 (18,432)
------------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Payment of deferred financing
fees for line of credit
modification (13,702) --
Principal payments on long-term
debt (131,319) (3,313)
Repurchases of senior secured
notes and Term Loan Facility -- (18,243)
Proceeds from 2020 Employee Stock
Purchase Plan 744 993
Payments for taxes related to net
share settlement of equity
awards (73) (707)
Purchase of treasury stock (2,306) (869)
Net cash used in financing
activities (146,656) (22,139)
------------- ----------
Net effect of foreign currency
changes on cash, cash
equivalents and restricted cash (1,565) (3,685)
Net change in cash, cash
equivalents and restricted cash (96,975) (83,883)
Cash, cash equivalents and
restricted cash, beginning of
period 252,987 220,751
------------- ----------
Cash, cash equivalents and
restricted cash, end of period $ 156,012 $ 136,868
============= ==========
Advantage Solutions Inc.
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
Three Months Ended March 31,
----------------------------------
(in thousands) 2026 2025
---------------- ------------
Net loss $ (71,831) $ (56,130)
Add:
Interest expense, net 34,798 34,360
Income tax expense 23,315 7,139
Depreciation and amortization 51,570 50,361
Gain on divestiture from
investments in European joint
venture (1,014) --
Other expense, including debt
fees 20,352 10
Stock-based compensation expense
(a) 2,000 6,485
Equity-based compensation of
Karman Topco L.P. (b) -- (1,524)
Divestiture related expenses (c) 237 423
Restructuring expenses (d) 2,246 931
Reorganization expenses (e) 5,461 12,240
Litigation expenses (f) 362 831
EBITDA for economic interests in
investments (g) 251 3,055
------------ -----------
Adjusted EBITDA $ 67,747 $ 58,181
============ ===========
Advantage Solutions Inc.
Reconciliation of Operating (loss) Income to Adjusted
EBITDA by Segment
(Unaudited)
Branded Services segment Three Months Ended March 31,
----------------------------------
(in thousands) 2026 2025
---------------- ------------
Operating loss $ (16,061) $ (15,322)
Add:
Depreciation and amortization 31,322 31,462
Gain on divestiture from
investments in European joint
venture (1,014) --
Stock-based compensation expense
(a) 512 2,172
Equity-based compensation of
Karman Topco L.P. (b) -- (95)
Divestiture related expenses (c) 237 378
Restructuring expenses (d) 1,390 358
Reorganization expenses (e) 1,674 5,455
Litigation expenses (f) 99 482
EBITDA for economic interests in
investments (g) 2,723 3,055
------------ -----------
Branded Services segment Adjusted
EBITDA $ 20,882 $ 27,945
============ ===========
Experiential Services segment Three Months Ended March 31,
----------------------------------
(in thousands) 2026 2025
---------------- ----------------
Operating income (loss) $ 11,499 $ (3,504)
Add:
Depreciation and amortization 11,299 10,537
Stock-based compensation expense
(a) 595 1,792
Equity-based compensation of
Karman Topco L.P. (b) -- (729)
Divestiture related expenses (c) -- 7
Restructuring expenses (d) 467 186
Reorganization expenses (e) 2,055 3,581
Litigation expenses (f) 162 199
Experiential Services segment
Adjusted EBITDA $ 26,077 $ 12,069
============ ============
Retailer Services segment Three Months Ended March 31,
----------------------------------
(in thousands) 2026 2025
---------------- ----------------
Operating income $ 8,724 $ 4,205
Add:
Depreciation and amortization 8,949 8,362
Stock-based compensation expense
(a) 893 2,521
Equity-based compensation of
Karman Topco L.P. (b) -- (700)
Divestiture related expenses (c) -- 38
Restructuring expenses (d) 389 387
Reorganization expenses (e) 1,732 3,204
Litigation expenses (f) 101 150
Retailer Services segment
Adjusted EBITDA $ 20,788 $ 18,167
============ ============
Advantage Solutions Inc.
Net Debt and Adjusted Unlevered Free Cash Flow Reconciliation
(Unaudited)
(amounts in thousands) March 31, 2026
----------------
Current portion of long-term debt $ 25,865
Long-term debt, net of current portion 1,565,702
------------
Total debt 1,591,567
Less: Cash and cash equivalents 143,870
------------
Total Net Debt $ 1,447,697
============
LTM Adjusted EBITDA $ 341,373
Net Debt / LTM Adjusted EBITDA ratio 4.2x
Three Months Ended
(amounts in thousands) March 31, 2026
--------------------
Net cash provided by operating activities $ 23,728
Less:
Purchase of property and equipment and development
of capitalized software (11,401)
Add:
Cash payments for interest 53,175
Cash payments for income taxes 5,494
Cash paid for divestiture related expenses (i) 237
Cash paid for reorganization expenses (j) 4,687
Net effect of foreign currency fluctuations on
cash (1,565)
--- ---------------
Adjusted Unlevered Free Cash Flow $ 74,355
=== ===============
Numerator - Adjusted Unlevered Free Cash Flow $ 74,355
Denominator - Adjusted EBITDA $ 67,747
--- ---------------
Adjusted Unlevered Free Cash Flow as a percentage
of Adjusted EBITDA 109.8%
=== ===============
Twelve Months Ended
March 31, 2026
-----------------------
(in thousands)
Net loss $ (243,436)
Add:
Interest expense, net 139,374
Provision for income taxes (21,408)
Depreciation and amortization 203,467
Impairment of goodwill and indefinite-lived asset 203,685
Gain on divestitures (28,997)
Other expense, including debt fees 20,259
Stock-based compensation expense (a) 22,430
Divestiture related expenses (c) 2,051
Restructuring expenses (d) 2,246
Reorganization expenses (e) 56,160
Litigation recoveries (f) (20,056)
Costs associated with COVID-19, net of benefits
received (h) (5,723)
EBITDA for economic interests in investments (g) 11,321
----------------
LTM Adjusted EBITDA $ 341,373
================
________________________
(a) 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 Advantage Solutions 2020 Employee
Stock Purchase Plan.
(b) Represents expenses related to equity-based compensation
expense associated with grants of Common Series D
Units of Karman Topco L.P. made to one of the Company's
private equity sponsors.
(c) Represents fees and costs associated with activities
related to our divestitures and related reorganization
activities, including professional fees, due diligence,
and integration activities.
(d) Restructuring charges including programs designed
to integrate and reduce costs intended to further
improve efficiencies in operational activities and
align cost structures consistent with revenue levels
associated with business changes.
(e) Represents fees and costs associated with various
internal reorganization and transformational activities,
including professional fees, lease and other contract
exit costs, severance, and nonrecurring compensation
costs.
(f) Represents legal settlements, net of reserves and
expenses, that are unusual or infrequent costs associated
with our operating activities.
(g) Represents adjustments to reflect the Company's proportional
share of Adjusted EBITDA related to its equity method
investments. For these investments, the adjustment
reflects the Company's proportional share of Adjusted
EBITDA rather than reported earnings, consistent with
how management evaluates operating performance.
(h) Represents (i) costs related to implementation of
strategies for workplace safety in response to COVID-19,
including employee-relief fund, additional sick pay
for front-line teammates, medical benefit payments
for furloughed teammates, and personal protective
equipment; and (ii) benefits received from government
grants for COVID-19 relief.
(i) Represents cash paid for fees and costs associated
with activities related to our divestitures and reorganization
activities including professional fees, due diligence,
and integration activities.
(j) Represents cash paid for fees and costs associated
with various reorganization activities, including
professional fees, lease exit costs, severance, and
nonrecurring compensation costs.
(END) Dow Jones Newswires
May 06, 2026 07:01 ET (11:01 GMT)