ADV Advantage Solutions Inc.

Overview and Growth

In fiscal 2025, Advantage Solutions Inc. recorded $3.54B of revenue, net loss of $227.74M, and an operating cash inflow of $61.53M. Revenue of $3.54B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line contracted 0.7% from $3.57B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. At period end, total assets were $2.79B, framing the scale of the company’s operating and financing commitments. Asset turnover was 1.27x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $494.35M as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 14.0% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was an operating loss of $126.47M, reflecting costs that exceeded gross profit. Relative to revenue, the operating deficit measured 3.6%, showing the shortfall after operating costs. The bottom-line result was a net loss of $227.74M after operating, financing, tax, and other recognized items. The net loss equaled 6.4% of revenue, showing the bottom-line deficit relative to the company’s sales base. Before income taxes, the company recorded a loss of $265.32M, bridging the operating result to the final net loss. Pretax margin was -7.5%, reflecting a pre-tax loss equal to 7.5% of revenue. The company recognized an income-tax benefit of $37.58M, increasing after-tax earnings relative to the pretax result. The loss-to-equity relationship was 41.1%, placing the bottom-line deficit against shareholder capital. The net loss equaled 8.2% of period-end assets, showing the deficit relative to the asset base.

Liquidity and Capital Structure

At period end, the $2.79B asset base was financed through $2.24B of liabilities and $553.96M of equity. The near-term balance sheet paired $972.62M of current assets with $432.63M of current liabilities at the reporting date. Current assets covered current liabilities by 2.25x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $240.85M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 55.7% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $1.67B of total debt at period end, which frames its leverage and debt-service burden. Debt equaled 3.02x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 59.9%, comparing borrowing with the total asset balance. Liabilities represented 80.2% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 8.6%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 10.1% from $3.11B in fiscal 2024, leaving current total assets lower year over year. Book equity was 26.0% lower than fiscal 2024 equity of $748.74M, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $61.53M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital spending was $6.48M, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 10.5%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $55.05M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 1.6%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 2.0%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.