Advantage Solutions Inc (ADV) AI Stock Analysis

NASDAQ: ADVAI research summary: business, growth, valuation, analysts, bull and bear case.

ADV AI stock analysis summary

AI Research

Advantage Solutions Inc (ADV) provides outsourced sales and marketing solutions to consumer goods companies and retailers. For the trailing twelve months, the company generated $3.61B in revenue with an operating margin of 0.9% and diluted earnings per share of -$21.35. Its balance sheet carries $1.54B in total debt against $102.3M in cash and short-term investments as of June 30, 2026.

Market cap
$372.6M
Revenue (TTM)
$3.61B
P/E
—
1Y return
-19.3%
S&P 500 16.8%
Avg. target
$42.00
44.5% vs last close

Bull case

  • The consensus mean price target of $42.00 suggests a 44.5% upside from the recent closing price of $29.06.
  • Analyst estimates project EPS to increase by 153.7% in the current fiscal year to $1.79 and reach $7.66 in the next fiscal year.
  • The company generated positive free cash flow of $55.1M in FY2025 and $186.9M in FY2023.

Bear case

  • The company has reported negative annual net income for four consecutive years, including -$227.7M in FY2025.
  • Balance sheet leverage remains elevated with total debt of $1.54B compared to $102.3M in cash and short-term investments.
  • Advantage Solutions achieved 0 EPS beats over the last 4 quarters while quarterly earnings growth dropped 5.6% year-over-year as of June 30, 2026.

What Advantage Solutions does

Advantage Solutions Inc. provides outsourced sales and marketing solutions to consumer goods companies and retailers across North America and globally. The company operates through two segments: Sales and Marketing. The Sales segment delivers headquarter relationship management, analytics, brand-centric merchandising solutions, tailored merchandising strategies, in-store media placements, and digital commerce optimization. The Marketing segment offers shopper and consumer marketing initiatives, brand experiential services, retail experiential programs, private label solutions, and digital advertising strategies. Headquartered in Irvine, California, the business was established as Karman Holding Corp. in 1987 and rebranded to Advantage Solutions Inc. in March 2016.

Growth and profitability

Revenue grew at a 5-year CAGR of 2.3% from FY2020 to FY2025. Annual revenue reached $3.60B in FY2021 with net income of $54.5M, before rising to $3.65B in FY2022 and $3.90B in FY2023. Revenue subsequently fell 8.6% to $3.57B in FY2024 and 0.7% to $3.54B in FY2025, when net income was -$227.7M and operating margin was 0.5%. Over the trailing twelve months, revenue was $3.61B with an operating margin of 0.9% and a net profit margin of -7.6%. For the latest quarter ending June 30, 2026, quarterly revenue growth year-over-year was 1.8%, while quarterly earnings growth year-over-year declined 5.6%.

ADV income statement →

Balance sheet and cash flow

As of June 30, 2026, Advantage Solutions held $102.3M in cash and short-term investments alongside $1.54B in total debt, leading to net debt of $1.44B. Shareholders' equity stood at $401.8M, resulting in a debt-to-equity ratio of 3.84 and a current ratio of 1.79. In FY2025, operating cash flow was $61.5M and free cash flow reached $55.1M. Capital allocation in FY2025 included capital expenditures of $6.5M and share buybacks totaling $869,000.

ADV balance sheet →

Valuation and performance

At a closing price of $29.06 on October 16, 2026, Advantage Solutions has a market cap of $372.6M and an enterprise value of $1.87B. The stock trades at an EV/EBITDA multiple of 27.6x, above the 10.0x median of its US-listed Communication Services peers. Its price-to-sales ratio of 0.1x compares to the peer median of 0.8x. Over the past year, the stock returned -19.3%, while the S&P 500 returned 16.8%. Over a 5-year period, the stock fell 86.8% compared to an 83.0% gain for the S&P 500.

ADV key metrics →

What analysts expect

Advantage Solutions is covered by 2 Wall Street analysts, with 1 Strong Buy rating and 1 Hold rating. The mean price target is $42.00, representing a 44.5% premium to the last close of $29.06. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $3.59B and an EPS of $1.79. For the next fiscal year, projected EPS is $7.66 with revenue of $3.64B. The company recorded 0 EPS beats over the last 4 quarters, and its next earnings date is November 5, 2026.

ADV forecast and price target →

Key risks and what to watch

  • High financial leverage is reflected in a debt-to-equity ratio of 3.84 and net debt of $1.44B as of June 30, 2026.
  • Stock volatility is high, demonstrated by a beta of 2.19 and a 5-year return of -86.8%.
  • Operating margins remain slim, sitting at 0.5% in FY2025 and 0.9% for the trailing twelve months.
  • Institutional and retail liquidity could be constrained given that insiders own 58.6% of outstanding shares and short interest stands at 11.7% of float.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this ADV AI stock analysis

This page is an AI-written research summary of Advantage Solutions Inc (ADV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ADV income statement, ADV balance sheet, ADV key metrics, ADV analyst forecast, ADV chart. See the ADV stock overview for the latest quote and news.

ADV AI stock analysis FAQ

What is Advantage Solutions' debt level?

As of June 30, 2026, Advantage Solutions carries $1.54B in total debt and $102.3M in cash and short-term investments, resulting in net debt of $1.44B. Its debt-to-equity ratio is 3.84.

What are analysts' price targets for ADV?

Analysts maintain a mean price target of $42.00 for ADV, which represents a 44.5% premium to the closing price of $29.06 on October 16, 2026.

Does Advantage Solutions pay a dividend?

Advantage Solutions does not pay a dividend based on current reporting.

When does Advantage Solutions report earnings next?

Advantage Solutions is scheduled to report its next quarterly financial results on November 5, 2026.

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