Advantage Solutions Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues decreased by $80.4 million, or 7.9%, to $939.3 million, down from $1,019.7 million in 2023. The decline was primarily attributed to a significant drop in the Branded Services segment, which saw revenues fall by 26.6% to $331.4 million, influenced by an intentional client resignation and a challenging economic environment. In contrast, the Experiential Services segment experienced growth, with revenues increasing by 11.1% to $342.7 million.

The company's operating loss from continuing operations for the third quarter was $(3.2 million), a decrease of $9.9 million from an operating income of $6.7 million in the prior year. The net loss from continuing operations rose to $(37.3 million), compared to $(29.6 million) in 2023. For the nine months ended September 30, 2024, total revenues decreased by $234.2 million, or 8.1%, to $2.67 billion, with a net loss from continuing operations of $(200.5 million), significantly higher than the $(78.5 million) loss reported in 2023. This increase in net loss was largely due to a non-cash goodwill impairment charge of $99.7 million related to the Branded Agencies reporting unit.

The company’s total current assets as of September 30, 2024, were $975.2 million, down from $1.01 billion at the end of 2023. Total liabilities decreased to $2.46 billion from $2.68 billion, while total equity attributable to stockholders fell to $932.5 million from $1.11 billion. The accumulated deficit increased to $(2.46 billion) from $(2.31 billion).

Strategically, Advantage Solutions has been focusing on divestitures to streamline operations, having sold several non-core businesses, which generated proceeds of $275.7 million during the nine months ended September 30, 2024. The company also initiated a restructuring plan in July 2024, incurring $18.6 million in reorganization expenses for the third quarter, aimed at improving cost structure and operational efficiency. This included a Voluntary Early Retirement Program that resulted in $21.4 million of settlement charges.

In terms of cash flow, net cash provided by operating activities from continuing operations was $78.0 million for the nine months ended September 30, 2024, a decrease from $172.6 million in 2023. However, net cash provided by investing activities improved to $211.4 million, compared to $(10.3 million) in the prior year, reflecting the proceeds from divestitures. The company’s cash and cash equivalents increased to $196.1 million as of September 30, 2024, from $120.8 million at the end of 2023.