Advantage Solutions Inc. 10-K

Item 8. Financial Statements and Supplementary Data. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 51 Consolidated Balance Sheets 54 Consolidated Statements of Operations and Comprehensive Loss 55 Consolidated Statements of Stockholders’ Equity 56 Consolidated Statements of Cash Flows 57 Notes to Consolidated Financial Statements 58 Schedule I—Condensed Registrant Only Financial Information of Advantage Solutions Inc. as of December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024, and 2023 94 50 Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Advantage Solutions Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Advantage Solutions Inc. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 51 Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Goodwill Impairment Assessments – Experiential Services and Retailer Agencies Reporting Units As described in Notes 1 and 3 to the consolidated financial statements, the Company’s goodwill balance was $438.9 million as of December 31, 2025, a significant portion of which related to the Experiential Services and Retailer Agencies reporting units. Management tests its goodwill for impairment at the beginning of the fourth quarter of a given fiscal year and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. If the fair value of the reporting unit is less than its carrying amount, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment loss. Management utilizes a combination of income and market approaches to estimate the fair value of its reporting units. The income approach utilizes estimates of discounted cash flows of the reporting units, which requires assumptions for the reporting units' revenue growth rates, earnings before interest, taxes, depreciation, and amortization (EBITDA) margins, terminal growth rates, capital cost expenditures as a percentage of revenue, discount rates, and incremental net working capital, all of which require significant management judgment. Based on the annual goodwill impairment assessment performed as of October 1, 2025, no impairment charges were recorded for the Experiential Services or Retailer Agencies reporting units. The principal considerations for our determination that performing procedures relating to the annual goodwill impairment assessment for the Experiential Services and Retailer Agencies reporting units is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the Experiential Services and Retailer Agencies reporting units; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to the discount rate used in the income approach for the Experiential Services reporting unit and the revenue growth rates and the discount rate used in the income approach for the Retailer Agencies reporting unit; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment assessment, including controls over the valuation of the Experiential Services and Retailer Agencies reporting units. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of the Experiential Services and Retailer Agencies reporting units; (ii) evaluating the appropriateness of the income approach used by management; (iii) testing the completeness and accuracy of underlying data used in the income approach; and (iv) evaluating the reasonableness of the significant assumptions used by management related to the discount rate used in the income approach for the Experiential Services reporting unit and the revenue growth rates and the discount rate used in the income approach for the Retailer Agencies reporting unit. Evaluating management’s assumptions related to revenue growth rates involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the Retailer Agencies reporting unit; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the income approach and (ii) the reasonableness of the discount rate assumption for the Experiential Services and Retailer Agencies reporting units. Impairment Assessment – Advantage Trade Name As described in Notes 1 and 3 to the consolidated financial statements, the Company’s indefinite-lived intangible asset balance was $442.4 million as of December 31, 2025, which relates to the Advantage trade name. Intangible assets with indefinite useful lives are not amortized but tested annually, at the beginning of the fourth quarter, for impairment or more often if events occur or circumstances change that would create a triggering event. Management tests its indefinite-lived intangible asset for impairment using a relief from royalty method by comparing the estimated fair value of the indefinite-lived intangible asset with the carrying value. The estimates used in the determination of fair value are subjective in nature and involve the use of significant assumptions. These estimates and assumptions include revenue growth rates, terminal growth rate, discount rate and royalty rate, all of which require significant management judgment. In connection with management’s annual impairment test as of October 1, 2025, management recognized an intangible asset impairment charge of $167.1 million related to the Advantage Trade Name. 52 The principal considerations for our determination that performing procedures relating to the Advantage trade name impairment assessment is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the Advantage trade name; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to revenue growth rates, discount rate, and royalty rate; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s Advantage trade name impairment assessment. These procedures also included, among others (i) testing management’s process for developing the fair value estimate of the Advantage trade name; (ii) evaluating the appropriateness of the relief from royalty method used by management; (iii) testing the completeness and accuracy of underlying data used in the relief from royalty method; and (iv) evaluating the reasonableness of the significant assumptions used by management related to revenue growth rates, the discount rate, and the royalty rate. Evaluating management’s assumptions related to revenue growth rates involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the Advantage brand; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the relief from royalty method and (ii) the reasonableness of the discount rate and royalty rate assumptions. /s/ PricewaterhouseCoopers LLP Irvine, California March 3, 2026 We have served as the Company’s auditor since 2003. 53 ADVANTAGE SOLUTIONS INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 240,850 $ 205,233 Restricted cash 12,137 15,518 Accounts receivable, net of allowance for expected credit losses of $ 16,771 and $ 13,047 , respectively 594,999 603,069 Prepaid expenses and other current assets 124,629 86,918 Total current assets 972,615 910,738 Property, equipment, and capitalized software, net 115,858 97,763 Goodwill 438,900 477,021 Other intangible assets, net 993,927 1,332,578 Investments in unconsolidated affiliates 234,138 226,510 Other assets 37,977 61,907 Total assets $ 2,793,415 $ 3,106,517 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt $ 13,250 $ 13,250 Accounts payable 162,376 158,485 Accrued compensation and benefits 121,105 129,486 Other accrued expenses 105,449 134,677 Deferred revenues 30,454 24,164 Total current liabilities 432,634 460,062 Long-term debt, net of current portion 1,660,611 1,686,690 Deferred income tax liabilities 90,023 146,889 Other long-term liabilities 56,189 64,141 Total liabilities 2,239,457 2,357,782 Commitments and contingencies (Note 18) Equity attributable to stockholders of Advantage Solutions Inc. Preferred stock, no par value, 10,000,000 shares authorized; none issued and outstanding as of December 31, 2025 and December 31, 2024, respectively — — Common stock, $ 0.0001 par value, 3,290,000,000 shares authorized; 326,429,909 and 320,773,096 shares issued and outstanding as of December 31, 2025 and 2024, respectively 33 32 Additional paid in capital 3,488,988 3,466,221 Accumulated deficit ( 2,869,347 ) ( 2,641,612 ) Loans to Karman Topco L.P. ( 7,673 ) ( 7,029 ) Accumulated other comprehensive loss ( 4,158 ) ( 15,861 ) Treasury stock, at cost; 12,894,517 and 12,400,075 shares as of December 31, 2025 and 2024, respectively ( 53,885 ) ( 53,016 ) Total stockholders' equity 553,958 748,735 Total liabilities and stockholders' equity $ 2,793,415 $ 3,106,517 See Notes to the Consolidated Financial Statements. 54 ADVANTAGE SOLUTIONS INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS Year Ended December 31, (in thousands, except share and per share data) 2025 2024 2023 Revenues $ 3,542,642 $ 3,566,324 $ 3,900,125 Cost of revenues (exclusive of depreciation and amortization shown separately below) 3,048,295 3,059,052 3,415,046 Selling, general, and administrative expenses 276,060 324,596 250,235 Impairment of goodwill and indefinite-lived asset 203,685 275,170 43,500 Depreciation and amortization 202,258 204,553 208,856 Income from investment in European joint venture and other ( 7,491 ) ( 2,064 ) ( 5,210 ) Gain on legal matters ( 25,716 ) — — Gain on divestitures and deconsolidation of subsidiaries ( 27,983 ) — ( 58,891 ) Total operating expenses 3,669,108 3,861,307 3,853,536 Operating (loss) income from continuing operations ( 126,466 ) ( 294,983 ) 46,589 Other expenses (income): Change in fair value of warrant liabilities ( 83 ) ( 584 ) ( 286 ) Interest expense, net 138,936 146,792 165,734 Total other expenses, net 138,853 146,208 165,448 Loss from continuing operations before benefit from income taxes ( 265,319 ) ( 441,191 ) ( 118,859 ) Benefit from income taxes from continuing operations ( 37,584 ) ( 62,787 ) ( 37,648 ) Net loss from continuing operations ( 227,735 ) ( 378,404 ) ( 81,211 ) Net income from discontinued operations, net of tax — 53,634 20,829 Net loss $ ( 227,735 ) $ ( 324,770 ) ( 60,382 ) Less: net income from continuing operations attributable to noncontrolling interest, net of tax — — 2,346 Less: net income from discontinued operations attributable to noncontrolling interest, net of tax — 2,192 594 Net loss attributable to stockholders of Advantage Solutions Inc. $ ( 227,735 ) $ ( 326,962 ) $ ( 63,322 ) Net (loss) income per common share: Basic loss per common share from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 0.70 ) $ ( 1.18 ) $ ( 0.26 ) Basic income per common share from discontinued operations attributable to stockholders of Advantage Solutions Inc. $ — $ 0.16 $ 0.06 Diluted net (loss) income per share: Diluted loss per common share from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 0.70 ) $ ( 1.18 ) $ ( 0.26 ) Diluted income per common share from discontinued operations attributable to stockholders of Advantage Solutions Inc. $ — $ 0.16 $ 0.06 Weighted-average number of common shares: Basic 324,564,046 321,515,982 323,677,515 Diluted 324,564,046 321,515,982 323,677,515 Comprehensive Income (Loss): Net loss attributable to stockholders of Advantage Solutions Inc. $ ( 227,735 ) $ ( 326,962 ) $ ( 63,322 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 11,703 ( 9,485 ) 5,817 Total comprehensive loss attributable to stockholders of Advantage Solutions Inc. $ ( 216,032 ) $ ( 336,447 ) $ ( 57,505 ) See Notes to the Consolidated Financial Statements. 55 ADVANTAGE SOLUTIONS INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY Accumulated Advantage Additional Other Solutions Inc. Total Common Stock Treasury Stock Paid-in Accumulated Loans to Comprehensive Stockholders' Noncontrolling Stockholders' (in thousands, except share data) Shares Amount Shares Amount Capital Deficit Topco Income (Loss) Equity Interest Equity Balance at January 1, 2023 319,690,300 $ 32 1,610,014 $ ( 12,567 ) $ 3,408,836 $ ( 2,247,109 ) $ ( 6,363 ) $ ( 18,849 ) $ 1,123,980 $ 101,744 $ 1,225,724 Comprehensive (loss) income Net (loss) income — — — — — ( 63,258 ) — — ( 63,258 ) 2,639 ( 60,619 ) Foreign currency translation adjustments — — — — — — — 5,817 5,817 3,201 9,018 Total comprehensive (loss) income — — — — — — — — ( 57,441 ) 5,840 ( 51,601 ) Interest on loans to Karman Topco L.P. — — — — — — ( 24 ) — ( 24 ) — ( 24 ) Purchase of treasury stock ( 4,164,010 ) — 4,164,010 ( 10,665 ) — — — — ( 10,665 ) — ( 10,665 ) Retirement of shares — — ( 2,173,949 ) 4,283 — ( 4,283 ) — — — — — Equity-based compensation of Karman Topco L.P. — — — — ( 2,524 ) — — — ( 2,524 ) — ( 2,524 ) Shares issued under 2020 Employee Stock Purchase Plan 1,241,440 — — — 2,248 — — — 2,248 — 2,248 Shares issued under 2020 Incentive Award Plan and tax related to net share settlement 5,467,531 — — — ( 1,880 ) — — — ( 1,880 ) — ( 1,880 ) Stock-based compensation expense — — — — 42,581 — — — 42,581 — 42,581 Deconsolidation of subsidiaries — — — — — — — 9,087 9,087 ( 108,869 ) ( 99,782 ) Balance at December 31, 2023 322,235,261 $ 32 3,600,075 $ ( 18,949 ) $ 3,449,261 $ ( 2,314,650 ) $ ( 6,387 ) $ ( 3,945 ) $ 1,105,362 $ ( 1,285 ) $ 1,104,077 Comprehensive (loss) income Net (loss) income — — — — — ( 326,962 ) — — ( 326,962 ) 2,192 ( 324,770 ) Foreign currency translation adjustments — — — — — — — ( 9,485 ) ( 9,485 ) 73 ( 9,412 ) Total comprehensive (loss) income — — — — — — — — ( 336,447 ) 2,265 ( 334,182 ) Interest on loans to Karman Topco L.P. — — — — — — ( 642 ) — ( 642 ) — ( 642 ) Purchase of treasury stock ( 8,800,000 ) — 8,800,000 ( 34,067 ) — — — — ( 34,067 ) — ( 34,067 ) Equity-based compensation of Karman Topco L.P. — — — — 723 — — — 723 — 723 Shares issued under 2020 Employee Stock Purchase Plan 983,808 — — — 2,294 — — — 2,294 — 2,294 Payments for taxes related to net share settlement under 2020 Incentive Award Plan — — — — ( 12,765 ) — — — ( 12,765 ) — ( 12,765 ) Shares issued under 2020 Incentive Award Plan 6,354,027 — — — — — — — — — — Sale of a business — — — — — — — ( 2,431 ) ( 2,431 ) ( 980 ) ( 3,411 ) Stock-based compensation expense — — — — 26,708 — — — 26,708 — 26,708 Balance at December 31, 2024 320,773,096 $ 32 12,400,075 $ ( 53,016 ) $ 3,466,221 $ ( 2,641,612 ) $ ( 7,029 ) $ ( 15,861 ) $ 748,735 $ — $ 748,735 Comprehensive (loss) income Net (loss) income — — — — — ( 227,735 ) — — ( 227,735 ) — ( 227,735 ) Foreign currency translation adjustments — — — — — — — 11,703 11,703 — 11,703 Total comprehensive (loss) income — — — — — — — — ( 216,032 ) — ( 216,032 ) Interest on loans to Karman Topco L.P. — — — — — — ( 644 ) — ( 644 ) — ( 644 ) Purchase of treasury stock ( 494,442 ) — 494,442 ( 869 ) — — — — ( 869 ) — ( 869 ) Equity-based compensation of Karman Topco L.P. — — — — ( 1,524 ) — — — ( 1,524 ) — ( 1,524 ) Shares issued under 2020 Employee Stock Purchase Plan 1,089,303 — — — 1,838 — — — 1,838 — 1,838 Payments for taxes related to net share settlement under 2020 Incentive Award Plan — — — — ( 3,943 ) — — — ( 3,943 ) — ( 3,943 ) Shares issued under 2020 Incentive Award Plan 5,061,952 1 — — — — — — 1 — 1 Stock-based compensation expense — — — — 26,396 — — — 26,396 — 26,396 Balance at December 31, 2025 326,429,909 $ 33 12,894,517 $ ( 53,885 ) $ 3,488,988 $ ( 2,869,347 ) $ ( 7,673 ) $ ( 4,158 ) $ 553,958 $ — $ 553,958 See Notes to Consolidated Financial Statements. 56 ADVANTAGE SOLUTIONS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss from continuing operations $ ( 227,735 ) $ ( 378,404 ) $ ( 81,211 ) Adjustments to reconcile net loss to net cash provided by operating activities Non-cash adjustments on derivatives and non-cash interest expense (income) ( 2,102 ) 5,227 ( 7,728 ) Amortization of deferred financing fees 7,038 6,766 8,292 Impairment of goodwill and indefinite-lived asset 203,685 275,170 43,500 Depreciation and amortization 202,258 204,553 208,856 Fair value adjustments related to contingent consideration — 1,678 11,152 Deferred income taxes (57,521 ) (57,307 ) (80,416 ) Equity-based compensation of Karman Topco L.P. ( 1,524 ) 723 ( 2,524 ) Stock-based compensation 26,915 31,019 38,933 Income from equity method investments ( 7,491 ) ( 2,064 ) ( 5,511 ) Distribution received from equity method investments 1,810 3,289 2,100 Gain on divestiture and deconsolidation of subsidiaries ( 27,983 ) — ( 58,891 ) Gain on repurchases of Senior Secured Notes and Term Loan Facility debt ( 1,649 ) ( 9,141 ) ( 8,665 ) Other 282 1,769 3,032 Changes in operating assets and liabilities, net of effects from divestitures: Accounts receivable, net 7,995 51,154 38,899 Prepaid expenses and other assets ( 31,423 ) 28,396 100,841 Accounts payable 5,271 ( 12,918 ) ( 23,066 ) Accrued compensation and benefits ( 10,665 ) ( 30,380 ) 27,458 Deferred revenues 7,335 ( 2,129 ) 8,551 Other accrued expenses and other liabilities ( 32,964 ) ( 24,306 ) 4,890 Net cash provided by operating activities 61,532 93,095 228,492 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments in unconsolidated affiliates ( 3,736 ) ( 13,932 ) ( 3,023 ) Purchase of property and equipment ( 6,477 ) ( 7,838 ) ( 20,691 ) Purchase and development of capitalized software ( 46,434 ) ( 47,501 ) ( 20,872 ) Proceeds from divestitures 60,491 275,717 21,108 Deconsolidation of subsidiaries cash and cash equivalents and restricted cash, net of proceeds — — ( 31,465 ) Proceeds from sale of investments in unconsolidated affiliates — — 4,428 Net cash (used in) provided by investing activities 3,844 206,446 ( 50,515 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under lines of credit 90,000 — 99,538 Payments on lines of credit ( 90,000 ) — ( 99,102 ) Principal payments on long-term debt ( 13,250 ) ( 13,131 ) ( 13,294 ) Repurchases of Senior Secured Notes and Term Loan Facility debt ( 18,218 ) ( 147,122 ) ( 156,559 ) Debt issuance costs — ( 971 ) — Deferred consideration paid for purchases in unconsolidated affiliates ( 2,113 ) — — Contingent consideration payments — ( 5,655 ) ( 1,867 ) Proceeds from employee stock purchase plan 1,838 2,294 2,248 Payments for taxes related to net share settlement of equity awards ( 3,596 ) ( 12,765 ) ( 1,880 ) Holdback payments — — ( 944 ) Redemption of noncontrolling interest — — ( 154 ) Purchase of treasury stock ( 869 ) ( 34,067 ) ( 6,382 ) Net cash used in financing activities ( 36,208 ) ( 211,417 ) ( 178,396 ) Net effect of foreign currency changes on cash, cash equivalents and restricted cash 3,068 ( 4,575 ) 1,800 Net change in cash, cash equivalents and restricted cash 32,236 83,549 1,381 Cash, cash equivalents and restricted cash, beginning of period 220,751 137,202 135,821 Cash, cash equivalents and restricted cash, end of period $ 252,987 $ 220,751 $ 137,202 See Notes to the Consolidated Financial Statements. 57 ADVANTAGE SOLUTIONS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Significant Accounting Policies On July 25, 2014, Karman Topco L.P. (“Topco”) completed the acquisition (the “2014 Topco Acquisition”) of Advantage Sales & Marketing Inc., which became a wholly owned indirect subsidiary of Topco. The equity units of Topco are held by equity funds affiliated with or advised by CVC Capital Partners, Leonard Green & Partners, Juggernaut Capital Partners, Centerview Capital, L.P., and Bain Capital. On September 7, 2020, Topco and one of its subsidiaries entered into an agreement and plan of merger (as amended, modified, supplemented or waived, the “Merger Agreement”), with Conyers Park II Acquisition Corp., a Delaware corporation, now known as Advantage Solutions Inc. (“Conyers Park”), CP II Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Conyers Park. On October 28, 2020, Conyers Park consummated the merger pursuant to the Merger Agreement, and became a majority-owned subsidiary of Topco and changed its name to Advantage Solutions Inc. (the “Company” or “Advantage”). The Company is headquartered in St. Louis, Missouri, and is a business solutions provider to consumer packaged goods (“CPG”) manufacturers and retailers. Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of the Company and its controlled subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The financial information set forth herein reflects: (a) the Consolidated Statements of Operations and Comprehensive Loss, Consolidated Statements of Stockholders’ Equity, and Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024, and 2023 and (b) the Consolidated Balance Sheets as of December 31, 2025 and 2024. The consolidated financial statements for the years ended December 31, 2025, 2024, and 2023 reflect Topco’s basis in the assets and liabilities of the Company, as a result of the 2014 Topco Acquisition. The Company’s share in the earnings or losses for its investments in affiliates is reflected in “Investments in unconsolidated affiliates” and “Income from equity method investments” in the Consolidated Balance Sheets and Consolidated Statements of Operations and Comprehensive Loss, respectively. When an equity method investment is considered integral to the reporting entity’s ongoing operations, the reporting entity’s share of the investee’s earnings or losses is presented within operating income (loss). All intercompany balances and transactions have been eliminated upon consolidation. Discontinued Operations The Company presents discontinued operations when there is a disposal of a component or a group of components that represents a strategic shift that will have a major effect on operations and financial results. The results of discontinued operations are reported in net income (loss) from discontinued operations in the consolidated statements of operations for all periods presented, commencing in the period in which the business is either disposed of or is classified as held for sale, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less costs to sell. Assets and liabilities related to a business classified as held for sale or meets the criteria for discontinued operations are segregated in the consolidated balance sheets for the current and prior periods presented. Cash flows for continuing and discontinued operations are segregated in Note 2— Discontinued Operations, Divestitures and Deconsolidation of European Joint Venture for the prior periods. When proceeds are not utilized to paydown long-term debt, the assets and liabilities associated with discontinued operations in the current period balance sheet are classified as current. No components met the criteria for classification as discontinued operations during the year ended December 31, 2025. The notes to the consolidated financial statements are presented on a continuing operations basis unless otherwise noted. Refer to Note 17— Operating Segments and Geographic Information for additional information on the Company’s reportable segments. Refer to Note 2— Discontinued Operations, Divestitures and Deconsolidation of European Joint Venture for additional information on the Company’s discontinued operations. Reportable Segments When evaluating the Company’s financial performance, the chief operating decision maker (“CODM”) regularly reviews revenues, compensation and benefits, reimbursable expenses and other segment items. Refer to Note 17— Operating Segments and Geographic Information for additional information on the Company’s reportable segments. 58 Deconsolidation of European Joint Venture On November 30, 2023 the Company reduced its equity interest in Advantage Smollan Limited (“ASL” ), its European joint venture, from a majority interest to a minority interest of 49.6 %. The Company also removed certain participating rights with ASL related to capital allocation and certain of the Company’s decision making rights, resulting in a loss of control. Therefore, in accordance with Accounting Standards Codification 810 ( “ASC 810”), Consolidation , ASL was deconsolidated from the Company’s consolidated financial statements resulting in the recognition of a $ 58.9 million gain for the year ended December 31, 2023. Effective December 1, 2023, the Company’s investment in ASL is accounted for under the equity method of accounting, with the investment reported in “Investments in unconsolidated affiliates” on the Consolidated Balance Sheets and equity income reported in “Income from equity method investments” on the Consolidated Statements of Operations and Comprehensive Loss. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. The Company’s estimates primarily include revenues, workers’ compensation and employee medical claim reserves, fair value of contingent consideration, leases, income taxes, derivative instruments and fair value considerations in applying purchase accounting and assessing goodwill and other asset impairments. Foreign Currency The Company’s reporting currency is U.S. dollars as that is the currency of the primary economic environment in which the Company operates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenues and expenses for these subsidiaries are translated using weighted‑average exchange rates for the period, which approximate the rates in effect when the underlying transactions occurred. Gains and losses from these translations are included in “Accumulated other comprehensive loss” in the Consolidated Statements of Stockholders’ Equity. Transactions in foreign currencies other than the entities’ functional currency are converted using the rate of exchange at the date of transaction. The gains or losses arising from the revaluation of foreign currency transactions to functional currency are included in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in Accumulated other comprehensive loss in stockholders’ equity. The Company reports gains and losses from foreign exchange rate changes related to intercompany receivables and payables that are of a long-term investment nature, in “Other comprehensive loss” in the Consolidated Statements of Operations and Comprehensive Loss. These items had an immaterial impact on the results of operations for each of the years ended December 31, 2025, 2024, and 2023 . Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less. The Company’s investments consist primarily of U.S. Treasury securities. The Company’s investments are carried at cost, which approximates fair value. The Company has restricted cash related to funds received from clients that will be disbursed at the direction of those clients. Corresponding liabilities have been recorded in “Other accrued expenses” in the Consolidated Balance Sheets. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Company’s Consolidated Statements of Cash Flows: December 31, (in thousands) 2025 2024 2023 Cash and cash equivalents $ 240,850 $ 205,233 $ 120,839 Restricted cash 12,137 15,518 16,363 Total cash, cash equivalents and restricted cash $ 252,987 $ 220,751 $ 137,202 59 The following table provides supplemental disclosure of cash flow information: Year Ended December 31, (in thousands) 2025 2024 2023 SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES Exchange of ownership of Partnership SPV 1 Limited for fair value of GSH $ — $ — $ 15,854 Non-cash proceeds from divestitures $ 2,535 $ 45,056 $ 4,283 Purchases of property and equipment recorded in accounts payable and accrued expenses $ — $ 114 $ 1,201 Purchases of capitalized software recorded in accounts payable and accrued expenses $ 5,567 $ 7,272 $ — SUPPLEMENTAL CASH FLOW INFORMATION Gain (loss) on divestitures from discontinued operations $ — $ 95,099 $ ( 19,068 ) Non-cash consideration for purchases of investments in unconsolidated affiliates $ — $ 10,432 $ — Cash payments for interest $ ( 142,681 ) $ ( 163,202 ) $ ( 174,767 ) Cash received from interest rate derivatives $ — $ 30,824 $ 28,808 Cash payments for income taxes, net $ ( 19,291 ) $ ( 31,269 ) $ ( 39,007 ) Accounts Receivable and Expected Credit Losses Accounts receivable consist of amounts due from clients for services provided in normal business activities and are recorded at invoiced amounts. The Company measures expected credit losses against certain billed receivables based upon the latest information regarding whether invoices are ultimately collectible. Assessing the collectability of client receivables requires management judgment. The Company determines its expected credit losses by specifically analyzing individual accounts receivable, historical bad debts, client creditworthiness, current economic conditions, and accounts receivable aging trends. Valuation reserves are periodically re-evaluated and adjusted as more information about the ultimate collectability of accounts receivable becomes available. Upon determination that a receivable is uncollectible, the receivable balance and any associated reserve is written off. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable and cash balances at various financial institutions. The Company maintains cash balances in accounts at various financial institutions. At times such cash balances may exceed federally insured limits. The Company has not experienced any losses in such accounts. Derivatives The Company uses financial instruments to hedge interest rate and foreign exchange risk. Derivative instruments, used to hedge interest rates, consist of interest rate swaps and interest rate collars and caps. Interest rate swap contracts involve the exchange of floating rate interest payment obligations for fixed interest rate payments without the exchange of the underlying principal amounts. Interest rate collar and cap contracts limit the floating interest rate exposure to the indicative rate in the agreement. Derivatives are initially recognized at fair value on the date a contract is entered into and are subsequently re-measured at fair value. The fair values of derivatives are measured using observable market prices or, where market prices are not available, by using discounted expected future cash flows at prevailing interest and exchange rates. The Company does not designate these derivatives as hedges for accounting purposes, and as a result, all changes in the fair value of derivatives used to hedge interest rates and foreign exchange risk are recorded in “Interest expense, net” and in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss, respectively. Cash flows associated with such derivatives are reported in cash flows from operating activities in the Consolidated Statements of Cash Flows. These arrangements contain an element of risk in that the counterparties may be unable to meet the terms of such arrangements. In the event the counterparties are unable to fulfill their related obligations, the Company could potentially incur significant additional costs by replacing the positions at then current market rates. The Company manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management. Prepaid Expenses and Other Current Assets Prepaid Expenses and Other Current Assets consist primarily of prepaid insurance, prepaid taxes, prepaid payroll, and other expenses. Prepaid expenses are recorded at cost and are amortized over the periods benefited using the straight-line method. The Company reviews prepaid expenses at each balance sheet date and adjusts the carrying amounts as necessary to reflect the remaining estimated benefit. 60 Property, Equipment and Capitalized Software Property and equipment are stated at cost, and the balances are presented net of accumulated depreciation. Leasehold improvements are amortized on a straight-line basis over the shorter of their respective lease terms or their respective estimated useful lives. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in the “Cost of revenues” and “Selling, general, administrative expenses” within the Consolidated Statements of Operations and Comprehensive Loss, depending on the nature of the assets. Expenditures for maintenance and repairs are expensed as incurred, whereas expenditures for improvements and replacements are capitalized. Depreciation expense is calculated using the straight-line method over the estimated useful lives of the assets. The following table provides the range of estimated useful lives used for each asset type: Leasehold improvements 3 — 10 years Furniture and fixtures 3 — 7 years Computer hardware and other equipment 3 — 5 years Software 3 — 7 years The Company capitalizes certain direct costs associated with the development and purchase of internal-use software within property and equipment. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software, generally not exceeding seven years . Maintenance and training costs are charged to expense as incurred and included in operating expenses. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments to capitalized internal-use software for the years ended December 31, 2025 and 2024 . Equity Method Investments Investments in companies in which the Company exercises significant influence over the operating and financial policies of the investee and are not required to be consolidated are accounted for using the equity method. The Company’s proportionate share of the net income or loss of equity method investments is included in the results of operations and any dividends received reduce the carrying value of the investment. Gains and losses from changes in the Company’s ownership interests are recorded in results of operations until control is achieved. In instances in which a change in the Company’s ownership interest results in obtaining control, the existing carrying value of the investment is remeasured to the acquisition date fair value and any gain or loss is recognized in the Consolidated Statements of Operations and Comprehensive Loss. Distributions received from unconsolidated entities that represent returns on the Company’s investment are reported as cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Cash distributions from unconsolidated entities that represent returns of the Company’s investment are reported as cash flows from investing activities. Divestitures The Company nets the proceeds from the divestitures of businesses with the carrying amount of the related net assets and liabilities and records a gain or loss in the Consolidated Statements of Operations and Comprehensive Loss. Any contingent payments that are potentially due to the Company as a result of these divestitures are realized or realizable. For divestitures of businesses, the Company includes the relative fair value of goodwill associated with the businesses in the determination of the gain or loss on sale. Discontinued Operations The Company classifies a business that has been disposed of or is classified as held for sale as a discontinued operation when the disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. Assets and liabilities of discontinued operations are presented separately in the Consolidated Balance Sheets, and results of discontinued operations are reported as a separate component of net loss in the Consolidated Statements of Operations and Comprehensive Loss. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net identifiable tangible and intangible assets acquired in an acquisition. The Company tests for impairment of goodwill at the reporting unit level. The Company generally combines components that have similar economic characteristics, nature of services, types of clients, distribution methods and 61 regulatory environment. The Company has five reporting units, Branded Services, Branded Agencies, Experiential Services, Merchandising and Retailer Agencies. The Company tests its goodwill for impairment at the beginning of the fourth quarter of a given fiscal year and whenever events or changes in circumstances indicate that the carrying value of a reporting unit may exceed its fair value. The Company has the option to perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying value before performing a quantitative impairment test. To the extent that the qualitative approach indicates that it is more likely than not that the carrying amount is less than its fair value, the Company applies a quantitative approach. When it is determined that a quantitative impairment test should be performed, if the fair value of the reporting unit is less than its carrying amount, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment loss; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. The Company’s annual goodwill impairment assessment for each year is performed as of October 1. The Company utilizes a combination of income and market approaches to estimate the fair value of its reporting units. The income approach utilizes estimates of discounted cash flows of the reporting units, which requires assumptions for the reporting units’ revenue growth rates, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margins, terminal growth rates, capital cost expenditures as a percentage of revenue, discount rates, and incremental net working capital, all of which require significant management judgment. The market approach applies market multiples derived from the historical earnings data of selected guideline publicly-traded companies to the Company’s reporting units’ businesses and acquisition premiums of similar businesses involved in recent merger and acquisition transactions, which requires significant management judgment. The guideline companies are first screened by industry group and then further narrowed based on the reporting units’ business descriptions, markets served, competitors, EBITDA margins and revenue size. Market multiples are then selected from within the range of these guideline companies’ multiples based on the subject reporting unit. The Company compares a weighted average of the output from the income and market approaches to the carrying value of each reporting unit. The Company also compares the aggregate estimated fair value of its reporting units to the estimated fair value of its total market capitalization. The assumptions in the income and market approach are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy (described in “Fair Value Measurements,” below). The Company based its fair value estimates on assumptions it believes to be reasonable but which are unpredictable and inherently uncertain. A change in these underlying assumptions would cause a change in the results of the tests and, as such, could cause fair value to be less than the carrying amounts and result in an impairment of goodwill in the future. Additionally, if actual results are not consistent with the estimates and assumptions or if there are significant changes to the Company’s planned strategy, it may cause fair value to be less than the carrying amounts and result in an impairment of goodwill in the future. In connection with the Company’s annual quantitative impairment test as of October 1, 2025, the Company concluded that the estimated fair value of the Branded Services and Merchandising reporting units were below their carrying amount. The decline in fair value primarily reflected higher discount rates driven by increases in market-based inputs, including risk-free rates and equity risk premiums, as well as updated market multiples for comparable publicly traded companies. The assessment also incorporated revised prospective financial information that reflected current expectations for revenue growth, margin performance, and operating cost trends. As a result, the Company recorded non-cash goodwill impairment charges of $ 13.1 million and $ 23.5 million for the Branded Services and Merchandising reporting units, respectively, which fully eliminated the remaining goodwill associated with both reporting units. These impairments do not impact the Company’s cash flows, liquidity, or compliance with financial covenants. Effective January 1, 2024, the Company performed an interim impairment assessment for its five reporting units’ goodwill. Each of the fair values for the reporting units tested were in excess of its carrying amount. The fair values of the Branded Agencies and Experiential Services reporting units exceeded their respective carrying values by less than 20 %. During the second quarter of fiscal year 2024, the Company determined a triggering event occurred and an impairment assessment was warranted for the Branded Agencies reporting unit goodwill due to the pending sale of one of the businesses that comprised a substantial portion of the assets, liabilities and prospective cash flows of the Branded Agencies reporting unit. As a result of the impairment test performed, the Company recognized a goodwill impairment charge of $ 99.7 million related to the Company's Branded Agencies reporting unit goodwill for the year ended December 31, 2024, which has been reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. As a result of this charge, an immaterial amount of goodwill remains in this reporting unit. In connection with the Company’s annual quantitative impairment test as of October 1, 2024, the Company concluded that the goodwill was not impaired as of October 1, 2024. Additionally, no triggering events were identified for the Branded Agencies, Experiential Services, Merchandising and Retailer Agencies reporting units through December 31, 2024. The fair values of the Branded Services, Branded Agencies and Merchandising reporting units exceeded their respective carrying values by less than 20 %. 62 During the fourth quarter of fiscal year 2024, the Company identified a triggering event that required an impairment assessment of goodwill for the Branded Services reporting unit. The triggering event was due to the loss of clients and a reduction in the scope of client services as the Company’s clients implemented internal cost reduction initiatives in response to challenges in the broader markets in which they operate. As a result of the goodwill impairment test, the Company recognized a goodwill impairment charge of $ 133.5 million related to the Branded Services reporting unit during the year ended December 31, 2024. This charge is reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. As a result of this charge, an immaterial amount of goodwill remains in this reporting unit. In connection with the Company's annual quantitative impairment test as of October 1, 2023, the Company concluded that the goodwill was not impaired as of October 1, 2023. The Company determined that no additional goodwill triggering events occurred through December 31, 2023. The uncertainty and volatility in the economic environment in which the Company operates could have an impact on the Company's future growth and could result in future impairment charges. There is no assurance that actual future earnings, cash flows or other assumptions for the reporting units will not significantly decline from these projections. Indefinite Lived Intangible Asset The Company’s indefinite-lived intangible asset is the Advantage Trade Name. Prior to the segment change, the Company went to market with the Advantage Trade Name being specifically used and assessed for impairment in the Sales and Marketing businesses. As a result of the change in the Company's reportable segments effective as of January 1, 2024, the Company determined, based on the change in the planned use of the Advantage Trade Name intangible asset, that the Advantage Trade Name should be considered an entity-wide asset for reporting and impairment testing purposes. Intangible assets with indefinite useful lives are not amortized but tested annually, at the beginning of the fourth quarter, for impairment or more often if events occur or circumstances change that would create a triggering event. The Company has the option to perform a qualitative assessment of whether it is more likely than not that the indefinite-lived intangible asset’s fair value is less than its carrying value before performing a quantitative impairment test. The Company tests its indefinite-lived intangible asset for impairment using a relief from royalty method by comparing the estimated fair value of the indefinite-lived intangible asset with the carrying value. The estimates used in the determination of fair value are subjective in nature and involve the use of significant assumptions. These estimates and assumptions include revenue growth rates, terminal growth rate, discount rate and royalty rate, all of which require significant management judgment. The assumptions are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy. The Company based its fair value estimates on assumptions it believes to be reasonable, but which are unpredictable and inherently uncertain. Actual future results may differ from the estimates. In connection with the Company’s annual quantitative impairment test as of October 1, 2025, the Company recognized an intangible asset impairment charge of $ 167.1 million related to the Advantage Trade Name, which has been reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. The impairment resulted from updated prospective financial information reflecting current expectations for revenue growth. As of January 1, 2024, the Company concluded there was a triggering event for an interim impairment assessment due to the change in unit of account of the indefinite-lived intangible asset. Based on the interim impairment assessment, the estimated fair value exceeded the carrying value by approximately 6 %, thus no impairment was recorded. In connection with the Company’s annual quantitative impairment test as of October 1, 2024, the Company concluded that the indefinite-lived intangible asset was not impaired. During the fourth quarter of fiscal year 2024, the Company recognized an intangible asset impairment charge of $42.0 million as a result of the triggering event for the Branded Services reporting unit. In connection with the Company’s annual quantitative impairment test as of October 1, 2023, the Company concluded that the indefinite-lived intangible asset was not impaired. During the fourth quarter of 2023, the Company determined a triggering event occurred and an impairment assessment was warranted due to the deconsolidation of the Company’s European joint venture and the planned divestitures of a collection of foodservice businesses, which was determined to be held for sale. As a result, the Company recognized an intangible asset impairment charge of $ 43.5 million related to the Advantage Trade Name during the year ended December 31, 2023, which has been reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. 63 Long-Lived Assets Long-lived assets to be held and used, including finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. These events or changes in circumstances may include a significant deterioration of operating results, changes in business plans, or changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates recoverability by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to be generated by the assets. If the assets are impaired, the impairment recognized is measured as the amount by which the carrying amount exceeds the fair value of the assets. Fair value is generally determined by estimates of discounted cash flows. The discount rate used in any estimate of discounted cash flows would be the rate required for a similar investment of like risk. No impairment related to the Company’s long-lived assets was recorded during the years ended December 31, 2025, 2024, and 2023 . Contingent Consideration Certain of the Company’s acquisitions include contingent consideration arrangements, which are generally based on the achievement of future financial performance. If it is determined the contingent consideration arrangements are not compensatory, the fair values of these contingent consideration arrangements are included as part of the purchase price of the acquisitions or divestitures on their respective transaction dates. For each transaction, the Company estimates the fair value of contingent consideration payments as part of the initial purchase price and records the estimated fair value of contingent consideration related to proceeds from divestitures as an asset in “Other assets” or related to purchases of businesses as a liability in “Other accrued expenses” or “Other long-term liabilities” in the Consolidated Balance Sheets. The Company reviews and assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from these initial estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Leases The Company has obligations under various real estate leases, equipment leases, and software license agreements. The Company assesses whether these arrangements are or contain leases at lease inception. Classification of the leases between financing and operating leases is determined by assessing whether the lease transfers ownership of the asset to the Company, the lease grants an option for the Company to purchase the underlying asset, the lease term is for the majority of the asset’s remaining economic life, or if the minimum lease payments equal or substantially exceed all of the leased asset’s fair market value. The Company receives tenant improvement allowances from some of the landlords of its leased properties. The tenant improvement allowances that are expected to be received are included in the measurement of the initial operating lease liability, which are also reflected as a reduction to the initial measurement of the right-of-use asset and amortized over the applicable lease terms. As of December 31, 2025, the Company's finance leases were not material. Refer to Note 9— Leases , for further information regarding the Company’s operating leases. Self-Insurance Liability The Company maintains a high deductible program for workers’ compensation claims. Losses and liabilities relating to workers’ compensation claims and employee medical claims are fully insured beyond the Company’s deductible limits. The Company’s estimated liabilities are not discounted and are based on information provided by third party administrators, combined with management’s judgment regarding a number of assumptions and factors, including the frequency and severity of claims, claims development history, case jurisdiction, applicable legislation and claims settlement practices. Restructuring The Company's restructuring charges consist of employee severance, one-time termination benefits and ongoing benefits related to the reduction of its workforce, and other exit and disposal costs. One-time termination benefits are expensed at the date the Company notifies the employee, unless the employee must provide future service beyond a minimum retention period, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when restructuring activities are probable and the benefit amounts are estimable. During fiscal year 2024, the Company implemented restructuring plans including a Voluntary Early Retirement Program (“VERP”) and a cost savings program to improve operational performance and align cost structures consistent with revenue levels associated with business changes, which includes special termination benefits associated with a reduction-in-force (“2024 RIF”). The Company’s restructuring charges consist of settlement charges and special termination benefits associated with the VERP and 2024 64 RIF. One-time termination benefits are expensed at the time the VERP participants accept the offer or the Company notifies the 2024 RIF participants, and the amounts can be reasonably estimated. Liabilities for costs associated with the restructuring activities are measured at fair value and are recognized when the liability is incurred. See to Note 7— Restructuring , for further information regarding the Company’s restructuring activities. Revenue Recognition The Company recognizes revenue when control of promised goods or services are transferred to the client in an amount that reflects the consideration that the Company expects to be entitled to in exchange for such goods or services. Substantially all of the Company’s contracts with clients involve the transfer of a service to the client, which represents a performance obligation that is satisfied over time because the client simultaneously receives and consumes the benefits of the services provided. In most cases, the contracts consist of a performance obligation that is comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). For these contracts, the Company allocates the ratable portion of the consideration based on the services provided in each period of service to such period. Revenues related to the Branded Services segment are primarily recognized in the form of commissions, fee-for-service and cost-plus fees for providing headquarter relationship management, execution of merchandising strategies and omni-commerce marketing services. Revenues within the Branded Services segment are further disaggregated between brokerage services, branded merchandising services, omni-commerce marketing services, and revenues related to the Company's European joint venture (prior to the deconsolidation during fiscal year 2023). Brokerage services revenues are primarily outsourced sales and services for branded CPG manufacturers at retailer headquarters, in-store and online. Branded merchandising services relate to merchandising in-store and online for branded CPG manufacturers. Omni-commerce marketing services primarily relate to digital and field marketing services. Experiential Services segment revenues are primarily recognized in the form of fee-for-service and cost-plus fees for providing in-store, digital sampling and demonstrations, where the Company manages highly customized, large-scale sampling programs for leading brands and retailers. Retailer Services segment revenues are primarily recognized in the form of commissions, fee-for-service and cost-plus fees for providing consulting services related to private brand development, the execution of merchandising strategies and marketing strategies within retailer locations, including retail media networks and analyzing shopper behavior. Revenues within the Retailer Services segment are further disaggregated between advisory services, retailer merchandising services and agency services to retailers. Advisory services primarily consist of consulting services related to private brand development. Retailer merchandising services primarily relate to the execution of merchandising strategies. Agency services primarily consist of providing marketing strategies within retail locations. Disaggregated revenues were as follows: Year Ended December 31, (in thousands) 2025 2024 2023 Branded Services Brokerage services $ 362,536 $ 495,302 $ 534,670 Branded merchandising services 462,243 428,821 444,859 Omni-commerce marketing services 338,893 382,213 404,522 European joint venture (1) — — 374,366 Total Branded Services revenues $ 1,163,672 $ 1,306,336 $ 1,758,417 Experiential Services Experiential services $ 1,435,297 $ 1,295,029 $ 1,159,449 Total Experiential Services revenues $ 1,435,297 $ 1,295,029 $ 1,159,449 Retailer Services Retail merchandising services $ 693,368 $ 701,709 $ 714,052 Advisory services 187,000 197,506 207,675 Agency services 63,305 65,744 60,532 Total Retailer Services revenues $ 943,673 $ 964,959 $ 982,259 Total revenues $ 3,542,642 $ 3,566,324 $ 3,900,125 (1) The Company previously held a majority interest in a European joint venture that provided retail and sales solutions across multiple markets, which the Company deconsolidated in fiscal year 2023 after its ownership interest was reduced. 65 The Company is party to certain client contracts that include variable consideration, whereby the ultimate consideration is contingent on future events such as the client’s sales to retailers, hours worked, event count, costs incurred, and performance incentive bonuses. For commission-based service contracts, the consideration received from the client is variable because the Company earns an agreed upon percentage of the client’s sales to retailers, which is agreed upon on a manufacturer-by-manufacturer basis. Revenues are recognized for the commission earned during the applicable reporting period. The Company generally earns commission revenues from headquarter relationship management, analytics, insights and intelligence, e-commerce, administration, private label development and retail services arrangements. As part of these arrangements, the Company provides a variety of services to CPG manufacturers in order to improve the manufacturer’s sales at retailers. This includes primarily outsourced sales, business development, category and space management, relationship management, and sales strategy services. In exchange for these services, the Company earns an agreed upon percentage of its client’s sales to retailers, which is agreed upon on a manufacturer-by-manufacturer basis. For service contracts whereby the client is charged a fee per hour incurred or fee per event completed, revenues are recognized over time as actual hours are incurred or as events are completed, respectively. For service contracts with a cost-plus arrangement, revenues are recognized on a gross basis over time for a given period based on the actual costs incurred plus a fixed mark-up fee that is negotiated on a client-by-client basis. For certain contracts with clients, the Company is entitled to additional fees upon meeting specific performance goals or thresholds, which are referred to as bonus revenues. Bonus revenues are estimated and are recognized as revenues as the related services are performed for the client. The variability of the consideration for the services transferred during a reporting period is typically resolved by the end of the reporting period. However, for certain client contracts, the Company is required to estimate the variable consideration for the services that have been transferred to the client during the reporting period. The Company typically estimates the variable consideration based on the expected value method. Estimates are based on historical experience and current facts known during the reporting period. The Company only recognizes revenues related to variable consideration if it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. When such probable threshold is not satisfied, the Company will constrain some or all of the variable consideration and the constrained variable consideration will not be recognized as revenues. The Company records an adjustment to revenue for differences between estimated revenues and the amounts ultimately invoiced to the client. Adjustments to revenue during the current period related to services transferred during prior periods were not material during the years ended December 31, 2025, 2024, and 2023. The Company has contracts that include fixed consideration such as a fee per project or a fixed monthly fee. For contracts with a fee per project, revenues are recognized over time using an input method such as hours worked that reasonably depicts the Company’s performance in transferring control of the services to the client. The Company determined that the input method represents a reasonable method to measure the satisfaction of the performance obligation to the client. For contracts with a fixed monthly fee, revenues are recognized using a time-based measure resulting in straight-line revenue recognition. A time-based measure was determined to represent a reasonable method to measure the satisfaction of the performance obligation to the client because the Company has a stand ready obligation to make itself available to provide services upon the client’s request or the client receives the benefit from the Company’s services evenly over the contract period. The Company evaluates each client contract individually in accordance with the applicable accounting guidance to determine whether the Company acts as a principal (whereby the Company would present revenues on a gross basis), or as an agent (whereby the Company would present revenues on a net basis). While the Company primarily acts as a principal in its arrangements and reports revenues on a gross basis, the Company will occasionally act as an agent and accordingly presents revenues on a net basis. Substantially all of the Company’s contracts with its clients either have a contract term that is less than one year with options for renewal and/or can be canceled by either party upon 30 to 120 days’ notice. For the purpose of disclosing the transaction price allocated to remaining unsatisfied performance obligations or partially satisfied performance obligations, the Company elected policies to: (1) exclude contracts with a contract term of one year or less and (2) exclude contracts with variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation when that performance obligation qualifies as a series of remaining performance obligations. After applying these policy elections, the Company determined that it does not have a significant amount of fixed consideration allocated to remaining performance obligations for contracts with a contract term that exceeds one year. When the Company satisfies its performance obligation and recognizes revenues accordingly, the Company has a present and unconditional right to payment and records the receivable from clients in “Accounts receivable” in the Consolidated Balance Sheets. The Company’s general payment terms are short-term in duration and the Company does not adjust the promised amount of consideration for the effects of a significant financing component. 66 Contract liabilities represent deferred revenues which are cash payments that are received in advance of the Company’s satisfaction of the applicable obligation(s) and are included in “Deferred revenues” in the Consolidated Balance Sheets. Deferred revenues are recognized as revenues when the related services are performed for the client. Revenues recognized during the years ended December 31, 2025, 2024, and 2023, included $ 21.1 million , $ 19.4 million, and $ 17.6 million of deferred revenues from the respective prior years. Income Taxes The Company accounts for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry-forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The income tax provision (benefit) is computed on the pre-tax income (loss) of the entities located within each taxing jurisdiction based on current tax law. A valuation allowance for deferred tax assets is recorded to the extent that the ultimate realization of the deferred tax assets is not considered more likely than not. Realization of the Company’s deferred tax assets is principally dependent upon its achievement of future taxable income, the estimation of which requires significant management judgment. These judgments regarding future profitability may change due to many factors, including future market conditions and the Company’s ability to successfully execute its business plans. These changes, if any, may require adjustments to deferred tax asset balances and deferred income tax expense. Equity-based Compensation The Company measures the cost of non-employee services received in exchange for an award of equity instruments based on the measurement date fair value. The cost is amortized over the requisite service period. The Company’s equity-based compensation is based on grant date fair value. Stock-based Compensation Stock-based compensation costs related to stock options granted to employees are measured at the date of grant based on the estimated fair value of the award. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The fair value for stock-settled restricted stock units (“RSUs”) and performance restricted stock units (“PSUs”) are based on the Company’s stock price on the date of grant. The Black-Scholes option-pricing model requires the use of highly subjective assumptions which determine the fair value of option-based awards. The assumptions used in the Company's option-pricing model represent management’s best estimates. These estimates are complex, involve a number of variables, uncertainties and assumptions and the application of management’s judgment, so that they are inherently subjective. If factors change and different assumptions are used, the Company's stock-based compensation expense could be materially different in the future. These assumptions include: (i) the fair value of ADV common stock, (ii) risk-free interest rate, (iii) expected term of the option, (iv) historical volatility of ADV common stock, and (v) anticipated dividend yield. The Company recognizes compensation costs for awards with service vesting conditions on an accelerated method under the graded vesting method over the requisite service period of the award, which is generally the vesting term of three years. Stock-based compensation expense is included in “Selling, general and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Warrant Liability The Company accounted for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in the Financial Accounting Standards Board (“FASB”) ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging . Changes in the estimated fair value of the warrants were recognized in “Change in fair value of warrant liabilities” in the Consolidated Statements of Operations and Comprehensive Loss. On October 28, 2025, the Company’s public and private placement warrants expired in accordance with their contractual terms. As of the expiration date, the warrants had no intrinsic value and a fair value of zero . Accordingly, the Company’s liability balance related to the warrants was fully extinguished as of December 31, 2025. 67 Other Comprehensive Income (Loss) The Company’s comprehensive income (loss )includes net loss as well as foreign currency translation adjustments, net of tax. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive loss in stockholders’ equity. Fair Value Measurements The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Variable Interest Entities and Investments In accordance with the guidance for the consolidation of a variable interest entity (“VIE”), the Company analyzes its variable interests, including loans, leases, guarantees, and equity investments, to determine if the entity in which it has a variable interest is a VIE. The Company’s analysis includes both quantitative and qualitative considerations. The Company bases its quantitative analysis on the forecasted cash flows of the entity, and its qualitative analysis on its review of the design of the entity, its organizational structure including decision-making ability and financial agreements. The Company also uses its quantitative and qualitative analyses to determine if it is the primary beneficiary of the VIE, and if such determination is made, it includes the accounts of the VIE in its consolidated financial statements. Recent Accounting Pronouncements Recent Accounting Standards Adopted by the Company In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires entities to expand their existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid. The standard is effective for the Company beginning in fiscal year 2025. The Company adopted the standard prospectively, as of December 31, 2025. Refer to Note 16— Income Taxes for additional information. In November 2025, the FASB issued ASU 2025‑09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements (“ASU 2025-09”), which provides targeted updates intended to improve the application of hedge accounting and better align financial reporting with entities’ risk management activities. The amendments are effective for public business entities for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company early adopted the standard prospectively as of December 31, 2025. The adoption of ASU 2025-09 did not have a material impact on the consolidated financial statements and related disclosures. Accounting Standards Recently Issued but Not Yet Adopted by the Company In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted and application on a prospective or retrospective basis. The Company is currently evaluating the impact of ASU 2024-03 on the consolidated financial statements and related disclosures. 68 In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the accounting for internal-use software costs to reflect incremental and iterative development methods. The amendments remove prescriptive development stages and require capitalization of software costs once management has authorized and committed to funding the project and it is probable the project will be completed and the software will be used as intended. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, including interim periods within those years, with early adoption permitted and application on a prospective, modified retrospective, or retrospective basis. The Company is currently evaluating the impact of ASU 2025-06 on the consolidated financial statements and related disclosures. All other new accounting pronouncements issued, but not yet effective or adopted have been deemed to be not relevant to the Company and, accordingly, are not expected to have a material impact once adopted. 2. Discontinued Operations, Divestitures and Deconsolidation of European Joint Venture Discontinued Operations The Company classifies a business that has been disposed of or is classified as held for sale as a discontinued operation when the criteria prescribed by FASB ASC 205, Presentation of Financial Statements are met. The 2023 Divestitures (as described below) along with the 2024 Divestitures (as described below) (collectively, the “discontinued operations” that are all part of the divestiture plan) met the criteria for discontinued operations presentation as their dispositions represent a strategic shift that has had a major effect on the Company's operations and financial results. As part of the agreements for certain divestitures, the Company has agreed to provide certain transitional services as detailed within respective transition services agreements for a period of time after sale. Income and expenses related to these transitional services are immaterial and are reported in “Net loss from continuing operations” on the Consolidated Statements of Operations and Comprehensive Loss. As of December 31, 2024, all businesses that were previously classified as discontinued operations had been fully divested. The following table presents the summarized statements of operations of discontinued operations. Year Ended December 31, (in thousands) 2024 2023 Revenues $ 80,017 $ 324,720 Cost of revenues (exclusive of depreciation and amortization shown separately below) 59,605 245,420 Selling, general, and administrative expenses 15,816 14,855 (Gain) loss on divestitures ( 95,099 ) 19,068 Depreciation and amortization 4,695 15,841 Total operating expenses ( 14,983 ) 295,184 Operating income from discontinued operations 95,000 29,536 Other expenses: Interest expense 48 68 Total other expenses 48 68 Income before income taxes from discontinued operations 94,952 29,468 Provision for income taxes from discontinued operations 41,318 8,639 Net income from discontinued operations, net of tax 53,634 20,829 Less: net income from discontinued operations attributable to noncontrolling interest, net of tax 2,192 594 Net income from discontinued operations attributable to stockholders of Advantage Solutions Inc. $ 51,442 $ 20,235 69 The following table provides a summary of the cash flows from continuing and discontinued operations: Year Ended December 31, (in thousands) 2024 2023 Net cash provided by operating activities from continuing operations $ 93,095 $ 228,492 Net cash provided by operating activities from discontinued operations 6,437 10,513 Net cash provided by operating activities 99,532 239,005 Net cash provided by (used in) investing activities from continuing operations 206,446 ( 50,515 ) Net cash used in investing activities from discontinued operations ( 7,304 ) ( 4,708 ) Net cash provided by (used in) investing activities 199,142 ( 55,223 ) Net cash used in financing activities from continuing operations ( 211,417 ) ( 178,396 ) Net cash used in financing activities from discontinued operations ( 4,362 ) ( 2,942 ) Net cash used in financing activities ( 215,779 ) ( 181,338 ) Net effect of foreign currency changes on cash from continuing operations ( 4,575 ) 1,800 Net effect of foreign currency changes on cash from discontinued operations ( 412 ) 76 Net effect of foreign currency changes on cash ( 4,987 ) 1,876 Net change in cash, cash equivalents and restricted cash from continuing operations 83,549 1,381 Net change in cash, cash equivalents and restricted cash from discontinued operations ( 5,641 ) 2,939 Net change in cash, cash equivalents and restricted cash $ 77,908 $ 4,320 2025 Divestitures On December 17, 2025, the Company sold its digital user‑experience design and prototyping business, which operated within the Company’s Branded Agencies reporting unit. As part of the divestiture, the Company received $ 22.0 million in cash proceeds at closing, subject to working capital adjustments. In addition, the Company is eligible to receive contingent consideration of up to $ 4.0 million in the aggregate based on the achievement of specified gross profit thresholds for the 2026 and 2027 performance periods. The estimated fair value of the contingent consideration as of the transaction date was $ 2.0 million, determined using Level 3 inputs, primarily discounted cash flow assumptions. The Company recognized a gain on the divestiture of $ 19.0 million during the year ended December 31, 2025. The disposed business did not represent a strategic shift that would have a major effect on the Company’s operations or financial results and therefore remains classified within continuing operations. 2024 Divestitures On January 31, 2024, the Company sold a collection of foodservice businesses, previously classified as held for sale (as current assets) as of December 31, 2023 (collectively with the other businesses disposed during the year ended December 31, 2024, the “2024 Divestitures”). As part of the sale, the foodservice businesses were combined with an entity owned by the buyer, with the Company receiving approximately $ 91.0 million, subject to working capital adjustments and an ongoing 7.5 % interest in the combined business. The ongoing ownership interest represents a continuing involvement which the Company has determined represents an equity method investment. Upon the close of the transaction, the retained 7.5 % interest was recognized at fair value of $ 8.4 million, valued using unobservable inputs (i.e., Level 3 inputs), primarily discounted cash flow. During the year ended December 31, 2025, the Company sold its remaining 7.5 % ownership interest in the combined foodservice business for $ 18.6 million in cash proceeds, resulting in a gain of $ 8.5 million. The sale of the remaining ownership interest did not represent a strategic shift that would have a major effect on the Company’s operations or financial results . Accordingly, the related results and gain on sale are presented as a component of continuing operations, with the gain recognized in “Gain on divestiture” within the Consolidated Statements of Operations and Comprehensive Income (Loss). The investment was reported in “Investments in unconsolidated affiliates” on the Consolidated Balance Sheets and an immaterial amount of equity income (loss) reported in “Income from equity method investments” on the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2024 and 2025. Transactions between the Company and the combined foodservice entity are considered to be related-party transactions subsequent to the divesture. 70 During the second quarter of 2024, the Company sold two agencies in the Branded Services segment, one agency in the Experiential Services segment and one agency in the Retailer Services segment. The Company received $ 65.2 million including estimated working capital adjustments. On July 31, 2024, the Company completed the sale of the Jun Group business in exchange for proceeds of approximately $ 185.0 million less any adjustments. The Company received approximately $ 130.0 million in cash upon completion of the sale. As part of the purchase agreement, the buyer has agreed to remit the remaining consideration of $ 27.5 million (less $ 5.0 million estimated adjustments) and $ 27.5 million, 12 and 18 months , respectively, after the completion of the sale. During the third fiscal quarter of 2025, the Company received approximately $ 22.5 million in cash related to the first installment. Subsequent to December 31, 2025, the Company received the second installment of approximately $ 27.5 million. The second installment is reflected within ‘Prepaid expenses and other current assets’ in the Consolidated Balance Sheets as of December 31, 2025. The portion of the cash settlement up to the acquisition date fair value of the contingent consideration is classified as “'Proceeds from divestitures” in cash flows from investing activities in the Consolidated Statements of Cash Flows. During the fourth quarter of 2025, the Company identified an immaterial misstatement in the presentation of the deferred proceeds received, from the buyer, related to the sale of Jun Group that were presented as cash inflows from financing activities in the condensed consolidated statement of cash flows for the nine months ended September 30, 2025. Upon further review, the Company determined that these proceeds in the amount of $ 22.5 million should have been presented as cash inflows from investing activities, which has been corrected in the accompanying consolidated statement of cash flows for the year ended December 31, 2025. The Company evaluated the materiality of the misstatement and concluded that it was immaterial to the previously issued interim financial statements taken as a whole. Although the Company has determined that this misstatement was not material, the Company is revising the previously issued interim financial statements to correct the presentation, which revision will be effected in connection with its future filing of Form 10-Q in 2026. During the year ended December 31, 2024, the Company recorded a gain from the 2024 Divestitures of $ 95.1 million as a component of “Net income from discontinued operations, net of tax” in the Consolidated Statements of Operations and Comprehensive Loss. Proceeds from the sales were classified as cash provided by investing activities from continuing operations in the Consolidated Statements of Cash Flows. 2023 Deconsolidation of ASL On November 30, 2023 the Company reduced its equity interest in Advantage Smollan Limited (“ASL”), its European joint venture, from a majority interest to a minority interest of 49.6 %. The Company also removed certain participating rights with ASL related to capital allocation and certain of the Company’s decision making rights, resulting in a loss of control. Therefore, in accordance with ASC 810, ASL was deconsolidated from the Company’s consolidated financial statements. Effective December 1, 2023, the Company’s investment in ASL is accounted for under the equity method of accounting, with the investment reported in “ Investments in unconsolidated affiliates” on the Consolidated Balance Sheets and equity income (loss) reported in “Income from equity method investments” on the Consolidated Statements of Operations and Other Comprehensive Loss. Transactions between the Company and ASL are considered to be related-party transactions from the date of deconsolidation. The fair value of the Company's continuing investment in ASL of $ 91.9 million was determined at the date of deconsolidation, recorded within “Investments in unconsolidated affiliates” on the Consolidated Balance Sheets and is assessed for impairment at each reporting period. The estimated fair value of the underlying business was determined based on a combination of the income and market approaches. The income approach utilizes estimates of discounted cash flows for the underlying business, which requires assumptions for growth rates, EBITDA margins, terminal growth rate, discount rate, and incremental net working capital, all of which require significant management judgment. The market approach applies market multiples derived from historical earnings data of selected guideline publicly traded companies. The Company compared a weighted average of the output from the income and market approaches to compute the fair value of ASL. The assumptions in the income and market approach are based on significant inputs not observable in the market and thus represent Level 3 measurements within the fair value hierarchy (described in Note 1—O rganization and Significant Accounting Policies ). The difference between the carrying value of the assets and liabilities of ASL that were deconsolidated and the fair value of the continuing investment, as determined at the date of deconsolidation, was $ 58.9 million, before tax, and this gain on deconsolidation is reflected within the Company’s Consolidated Statements of Operations and Other Comprehensive Loss for the year ended December 31, 2023. As a result of the ASL deconsolidation, the Company determined a triggering event occurred for the sales indefinite-lived trade name and an intangible asset impairment charge of $ 43.5 million was recorded. As part of the Company derecognizing ASL, the Company attributed $ 18.2 million of the former Sales reporting unit 71 goodwill to that business, which was derecognized and reflected in the calculated gain on sale. The Company determined that the remaining former Sales reporting unit goodwill was not impaired. ASL is party to transactions with the Company and its consolidated subsidiaries entered into in the normal course of business and these transactions include corporate expenses for services benefiting ASL. Up to the date of the deconsolidation, these transactions were eliminated on consolidation and had no impact on the Company’s Consolidated Statements of Operations and Comprehensive Loss. After deconsolidating ASL, these transactions are treated as third-party transactions in the Company’s financial statements. The amount of these related-party transactions is included within Note 15— Related Parties . 2023 Divestitures During the year ended December 31, 2023, the Company recognized a loss on the sale of businesses of $ 19.1 million, as a component of “Net income from discontinued operations, net of tax” in the Consolidated Statements of Operations and Comprehensive Loss. The Company received $ 21.1 million of proceeds, net of transaction fees and holdbacks. 3. Goodwill and Intangible Assets Changes in goodwill for the years ended December 31, 2025 and 2024, are as follows: (in thousands) Branded Services Experiential Services Retailer Services Total Gross carrying amount at December 31, 2023 $ 252,809 $ 239,427 $ 217,955 $ 710,191 Impairment charge ( 233,170 ) — — ( 233,170 ) Gross carrying amount at December 31, 2024 19,639 239,427 217,955 477,021 Impairment charge ( 13,128 ) — ( 23,457 ) ( 36,585 ) Divestiture ( 1,536 ) — — ( 1,536 ) Gross carrying amount at December 31, 2025 $ 4,975 $ 239,427 $ 194,498 $ 438,900 In connection with the Company’s annual impairment assessment performed as of October 1, 2025, the Company concluded that the estimated fair value of the Branded Services and Merchandising reporting units were below their carrying amount. The decline in estimated fair value primarily reflected higher discount rates driven by increases in market-based inputs, including risk-free rates and equity risk premiums, as well as updated valuation multiples for comparable publicly traded companies. The assessment also incorporated revised prospective financial information reflecting current expectations for revenue growth, margin performance, and operating cost trends. As a result, the Company recorded non-cash goodwill impairment charges of $ 13.1 million and $ 23.5 million for the Branded Services and Merchandising reporting units, which fully eliminated the remaining goodwill associated with both reporting units. These charges are reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. As of December 31, 2025, the Branded Services, Experiential Services, and Retailer Services segments had accumulated impairment charges of $ 969.0 million, $ 308.2 million, and $ 1,012.1 million, respectively. As of December 31, 2024, the Branded Services, Experiential Services, and Retailer Services segments had accumulated impairment charges of $ 955.8 million, $ 308.2 million, and $ 988.6 million, respectively. Based on the annual goodwill impairment assessment performed as of October 1, 2025, no impairment charges were recorded for the Experiential Services or Retailer Agencies reporting units. During the second quarter of fiscal year 2024, the Company determined a triggering event occurred and an impairment assessment was warranted for the Branded Agencies reporting unit goodwill due to the pending sale of one of the businesses that comprised a substantial portion of the assets, liabilities and prospective cash flows of the Branded Agencies reporting unit. As a result of the impairment test performed, the Company recognized a goodwill impairment charge of $ 99.7 million related to the Company's Branded Agencies reporting unit goodwill during the year ended December 31, 2024, which has been reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. As a result of this charge, an immaterial amount of goodwill remains in this reporting unit. During the fourth quarter of fiscal year 2024, the Company identified a triggering event that required an impairment assessment of goodwill for the Branded Services reporting unit. The triggering event was due to the loss of clients and a reduction in the scope of client services as the Company’s clients implemented internal cost reduction initiatives in response to challenges in the broader markets in which they operate. As a result of the goodwill impairment test, the Company recognized a goodwill impairment charge of $ 133.5 million related to the Branded Services reporting unit during the year ended December 31, 2024. This charge is reflected in “Impairment of goodwill and indefinite-lived asset” in the Consolidated Statements of Operations and Comprehensive Loss. As a 72 result of this charge, the Branded Services segment had accumulated impairment losses to goodwill of $ 955.8 million as of December 31, 2024. The following tables set forth information for intangible assets: December 31, 2025 (amounts in thousands) Weighted Average Useful Life Gross Carrying Value Accumulated Amortization Accumulated Impairment Charges Net Carrying Value Finite-lived intangible assets: Client relationships 14 years $ 2,256,367 $ 1,722,227 $ — $ 534,140 Trade names 10 years 88,600 71,213 — 17,387 Total finite-lived intangible assets 2,344,967 1,793,440 — 551,527 Indefinite-lived intangible assets: Trade name 1,480,000 — 1,037,600 442,400 Total other intangible assets $ 3,824,967 $ 1,793,440 $ 1,037,600 $ 993,927 December 31, 2024 (amounts in thousands) Weighted Average Useful Life Gross Carrying Value Accumulated Amortization Accumulated Impairment Charges Net Carrying Value Finite-lived intangible assets: Client relationships 14 years $ 2,256,382 $ 1,559,551 $ — $ 696,831 Trade names 10 years 88,600 62,353 — 26,247 Total finite-lived intangible assets 2,344,982 1,621,904 — 723,078 Indefinite-lived intangible assets: Trade name 1,480,000 — 870,500 609,500 Total other intangible assets $ 3,824,982 $ 1,621,904 $ 870,500 $ 1,332,578 Intangible assets, along with the related accumulated amortization, are removed from the table above at the end of the fiscal year they become fully amortized. As of December 31, 2025, estimated future amortization expenses of the Company’s finite-lived intangible assets are as follows: (in thousands) 2026 $ 169,131 2027 167,500 2028 133,069 2029 76,636 2030 3,442 Thereafter 1,749 Total amortization expense $ 551,527 The Company records intangible assets at their respective fair values and assesses the estimated useful lives of the assets at the time of acquisition. Client relationships were valued using the multi-period excess earnings method under the income approach. The values of client relationships are generally regarded as the estimated economic benefit derived from the incremental revenues and related cash flows as a direct result of the client relationships in place versus having to replicate them. Further, the Company evaluated the legal, regulatory, contractual, competitive, economic or other factors in determining the useful life. Trade names were valued using the relief-from-royalty method under the income approach. This method relies on the premise that, in lieu of ownership, a company would be willing to pay a royalty to obtain access to the use and benefits of the trade names. The Company has considered its trade name related to the 2014 Topco Acquisition to be indefinite, as there is no foreseeable limit on the period of time over which such trade names are expected to contribute to the cash flows of the reporting entity. Amortization expenses included in the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2025, 2024 and 2023 were $ 171.6 million , $ 177.3 million, and $ 186.8 million, respectively. During the fourth quarter of December 31, 2025, the Company recognized an intangible asset impairment charge of $ 167.1 million related to the Company's indefinite-lived trade name, in connection with the Company’s annual impairment assessment. 73 During the fourth quarter of December 31, 2024, the Company recognized an intangible asset impairment charge of $ 42.0 million as a result of the triggering event for the Branded Services reporting unit. During the year ended December 31, 2023, the Company recognized an intangible asset impairment charge of $ 43.5 million related to the Company's indefinite-lived trade name, in connection with the Company’s deconsolidation of its European joint venture and planned disposition of its foodservice businesses (as further described in Note 1 —O rganization and Significant Accounting Policies and Note 2— Discontinued Operations, Divestitures and Deconsolidation of European Joint Venture. 4. Prepaid Expenses and Other Assets Prepaid expenses and other current assets consist of the following: December 31, (in thousands) 2025 2024 Inventory and supplies $ 5,796 $ 8,061 Prepaid expenses 75,862 39,473 Prepaid income taxes 2,186 2,120 Other receivables 8,214 11,626 Consideration receivable from divestitures 27,665 22,530 Other current assets 5,846 3,108 Total prepaid expenses and other current assets $ 125,569 $ 86,918 Inventory is stated at the lower of cost and net realizable value. Costs are determined on the first-in, first-out basis. The Company records write-downs of inventories which are obsolete or in excess of anticipated demand or net realizable value based on a consideration of marketability, historical sales and demand forecasts which consider assumptions about future demand and market conditions. Other assets consist of the following: December 31, (in thousands) 2025 2024 Operating lease right-of-use assets $ 22,261 $ 25,932 Deposits 3,079 3,394 Workers' compensation receivable 4,838 3,605 Consideration receivable from divestitures — 25,166 Other long-term assets 7,799 3,810 Total other assets $ 37,977 $ 61,907 5. Property, Equipment and Capitalized Software Property, equipment and capitalized software consist of the following: December 31, (in thousands) 2025 2024 Software $ 168,673 $ 140,680 Computer hardware 55,124 51,367 Leasehold improvements 16,165 16,342 Furniture, fixtures, and other 5,812 4,553 Total property and equipment 245,774 212,942 Less: accumulated depreciation and amortization ( 129,916 ) ( 115,179 ) Total property and equipment, net $ 115,858 $ 97,763 Depreciation expense was $ 30.7 million, $ 27.3 million, and $ 22.0 million related to property and equipment for the years ended December 31, 2025, 2024, and 2023 , respectively. 74 6. Other Liabilities Other accrued expenses consist of the following: December 31, (in thousands) 2025 2024 Accrued interest payable $ 27,979 $ 30,987 Operating lease liabilities 11,432 13,323 Accrued income taxes 5,891 6,238 General liability insurance reserve 16,669 16,054 Client deposits 18,730 12,906 Rebates due to retailers 2,120 9,752 Liabilities related to the Take 5 Matter — 9,416 Employee medical self-insurance reserves 8,971 10,250 Accrued contractual termination benefits 4,617 15,598 Other accrued expenses 9,040 10,153 Total other accrued expenses $ 105,449 $ 134,677 Other long-term liabilities consist of the following: December 31, (in thousands) 2025 2024 Operating lease liabilities $ 20,703 $ 24,648 Workers' compensation 30,494 33,722 Other long-term liabilities 4,992 5,771 Total other long-term liabilities $ 56,189 $ 64,141 Under the workers’ compensation programs, the estimated liability for claims incurred but unpaid at December 31, 2025 and 2024 were $ 57.6 million and $ 59.4 million, respectively. These amounts include reported claims as well as claims incurred but not reported. As of December 31, 2025, $ 27.1 million and $ 30.5 million of this liability was included in the “Accrued compensation and benefits” and “Other long-term liabilities” in the Consolidated Balance Sheets, respectively. As of December 31, 2024 , $ 25.7 million and $ 33.7 million of this liability was included in the “Accrued compensation and benefits” and “Other long-term liabilities” in the Consolidated Balance Sheets, respectively. In connection with its deductible limits, the Company has standby letters-of-credit in the amount of $ 62.0 million and $ 44.1 million as of December 31, 2025 and 2024 , respectively, and $ 13.2 million and $ 15.0 million surety bond as of such years supporting the estimated unpaid claim liabilities. 7. Restructuring During fiscal year 2024, the Company implemented restructuring plans as a result of the overall reorganization. Voluntary Early Retirement Program (“VERP”) During fiscal year 2024, the Company offered a VERP to certain eligible U.S.-based employees. During the years ended December 31, 2025 and 2024 , the Company recorded $ 0.6 million and $ 20.1 million, respectively, of settlement charges and special termination benefits in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. 2024 Restructuring Program (“2024 RIF”) In September 2024, the Company announced a cost savings program to improve operational performance and align cost structures consistent with revenue levels associated with business changes, which includes termination benefits associated with a reduction-in-force substantially completed in fiscal year 2024. During the years ended December 31, 2025 and 2024 , the Company recorded $ 0.3 million and $ 9.9 million, respectively, of settlement charges and special termination benefits in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. As of December 31, 2024, $ 14.1 million of the Company’s restructuring charges were included in “Other accrued expenses” in the Consolidated Balance Sheets. 75 The following table summarizes the Company’s restructuring activity: (in thousands) 2024 RIF 2024 VERP Total Balance at January 1, 2024 $ — $ — $ — Charges 9,931 20,120 30,051 Cash payments ( 7,644 ) ( 8,339 ) ( 15,983 ) Balance at December 31, 2024 $ 2,287 $ 11,781 $ 14,068 Charges 306 625 931 Cash payments ( 2,593 ) ( 12,406 ) ( 14,999 ) Balance at December 31, 2025 $ — $ — $ — The following table summarizes the Company’s restructuring expense by segment: Year Ended December 31, (in thousands) 2025 2024 Branded Services $ 358 $ 19,343 Experiential Services 186 4,368 Retailer Services 387 6,340 Total restructuring expenses $ 931 $ 30,051 8. Debt (in thousands) December 31, 2025 2024 Term Loan Facility $ 1,092,745 $ 1,105,995 6.5 % Senior Secured Notes due 2028 595,087 615,087 Total long-term debt 1,687,832 1,721,082 Less: current portion 13,250 13,250 Less: debt issuance costs 13,971 21,142 Long-term debt, net of current portion $ 1,660,611 $ 1,686,690 Senior Secured Credit Facilities Effective October 28, 2020, Advantage Sales & Marketing Inc., an indirect wholly-owned subsidiary of the Company (the “Borrower”), entered into (i) a senior secured asset-based revolving credit facility (as amended and/or restated from time to time, the “Revolving Credit Facility”) and (ii) a secured first lien term loan credit facility (“First Lien Credit Agreement”) in an aggregate principal amount of $ 1.325 billion (as amended and/or/restated from time to time, the “Term Loan Facility” and together with the Revolving Credit Facility, the “Senior Secured Credit Facilities”). Revolving Credit Facility The Revolving Credit Facility provides for revolving loans and letters of credit in an aggregate amount of up to $ 500.0 million, subject to borrowing base capacity. Letters of credit are limited to the lesser of (a) $ 150.0 million and (b) the aggregate unused amount of commitments under the Revolving Credit Facility then in effect. Loans under the Revolving Credit Facility may be denominated in either U.S. dollars or Canadian dollars. The Revolving Credit Facility matures December 2, 2027. The Borrower may use borrowings under the Revolving Credit Facility to fund working capital and for other general corporate purposes, including permitted acquisitions and other investments. Borrowings under the Revolving Credit Facility are limited by borrowing base calculations based on the sum of specified percentages of eligible accounts receivable plus specified percentages of qualified cash, minus the amount of any applicable reserves. Borrowings bear interest at a floating rate, which can be either an adjusted Term SOFR or Alternative Currency Spread rate plus an applicable margin or, at the Borrower’s option, a base rate or Canadian Prime Rate plus an applicable margin. The applicable margins for the Revolving Credit Facility are 1.75 %, 2.00 % or 2.25 %, with respect to Term SOFR or Alternative Currency Spread rate borrowings and 0.75 %, 1.00 %, or 1.25 %, with respect to base rate or Canadian Prime Rate borrowings, in each case depending on average excess availability under the Revolving Credit Facility. 76 The Borrower’s obligations under the Revolving Credit Facility are guaranteed by Karman Intermediate Corp. (“Holdings”) and all of the Borrower’s direct and indirect wholly owned material U.S. subsidiaries (subject to certain permitted exceptions) and Canadian subsidiaries (subject to certain permitted exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenues of Canadian subsidiaries) (the “Guarantors”). The Revolving Credit Facility is secured by a lien on substantially all of Holdings’, the Borrower’s and the Guarantors’ assets (subject to certain permitted exceptions). The Revolving Credit Facility has a first-priority lien on the current asset collateral and a second-priority lien on security interests in the fixed asset collateral (second in priority to the liens securing the Notes and the Term Loan Facility discussed below), in each case, subject to other permitted liens. The Revolving Credit Facility has the following fees: (i) an unused line fee of 0.375 % or 0.250 % per annum of the unused portion of the Revolving Credit Facility, depending on average excess availability under the Revolving Credit Facility; (ii) a letter of credit participation fee on the aggregate stated amount of each letter of credit equal to the applicable margin for adjusted Eurodollar rate loans, as applicable; and (iii) certain other customary fees and expenses of the lenders and agents thereunder. The Revolving Credit Facility contains customary covenants, including, but not limited to, restrictions on the Borrower’s ability and that of its subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets, optionally prepay or modify terms of any junior indebtedness, enter into transactions with affiliates or change its line of business. The Revolving Credit Facility will require the maintenance of a fixed charge coverage ratio (as set forth in the credit agreement governing the Revolving Credit Facility) of 1.00 to 1.00 at the end of each fiscal quarter when excess availability is less than the greater of $ 25.0 million and 10 % of the lesser of the borrowing base and maximum borrowing capacity. Such fixed charge coverage ratio will be tested at the end of each quarter until such time as excess availability exceeds the level set forth above. The Revolving Credit Facility provides that, upon the occurrence of certain events of default, the Borrower’s obligations thereunder may be accelerated and the lending commitments terminated. Such events of default include payment defaults to the lenders thereunder, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy, insolvency, corporate arrangement, winding-up, liquidation or similar proceedings, material money judgments, material pension-plan events, certain change of control events and other customary events of default. As of December 31, 2025 and 2024 , there were no amounts due under the Revolving Credit Facility. During the fiscal year ended December 31, 2025, the Company had borrowings and repayments under the Revolving Credit Facility $ 90.0 million each. During the fiscal year ended December 31, 2024 , the Company had no borrowings and repayments under the Revolving Credit Facility. During the fiscal year ended December 31, 2023, the Company had borrowings and repayments under the Revolving Credit Facility of $ 40.0 million each. Term Loan Facility The Term Loan Facility consists of a term loan credit facility denominated in U.S. dollars in an aggregate outstanding principal amount of $ 1.093 billion. Borrowings under the Term Loan Facility amortize in equal quarterly installments in an amount equal to 1.00 % per annum of the principal amount. Borrowings will bear interest at a floating rate of Term SOFR plus an applicable margin of 4.25 % per annum, subject to additional spread adjustment on SOFR ranging from 0.11 % to 0.26 %. The Term Loan Facility matures on October 28, 2027 . The Borrower may voluntarily prepay loans or reduce commitments under the Term Loan Facility, in whole or in part, subject to minimum amounts, with prior notice but without premium or penalty. The Company did no t make any voluntary repurchases of its Term Loan Facility during the year ended December 31, 2025. The Company voluntarily repurchased an aggregate of $ 29.8 million principal amount of its Term Loan Facility during the year ended December 31, 2024 . The Company recognized a gain on the repurchase of $ 0.9 million for the year ended December 31, 2024, as a component of “Interest expense, net” in the Consolidated Statements of Operations and Comprehensive Loss. The Borrower will be required to prepay the Term Loan Facility with 100 % of the net cash proceeds of certain asset sales (such percentage subject to reduction based on the achievement of specific first lien net leverage ratios) and subject to certain reinvestment rights, 100 % of the net cash proceeds of certain debt issuances and 50 % of excess cash flow (such percentage subject to reduction based on the achievement of specific first lien net leverage ratios). The Borrower was not required to make any excess cash flow payments for the years ended December 31, 2025 and 2024, and the Borrower did not make any other mandatory or voluntary prepayments of the Term Loan Facility for the years ended December 31, 2025 and 2024. 77 The Borrower’s obligations under the Term Loan Facility are guaranteed by Holdings and the Guarantors. The Term Loan Facility is secured by a lien on substantially all of Holdings’, the Borrower’s and the Guarantors’ assets (subject to certain permitted exceptions). The Term Loan Facility has a first-priority lien on the fixed asset collateral (equal in priority with the liens securing the Notes) and a second-priority lien on the current asset collateral (second in priority to the liens securing the Revolving Credit Facility), in each case, subject to other permitted liens. The Term Loan Facility contains certain customary negative covenants, including, but not limited to, restrictions on the Borrower’s ability and that of its restricted subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, pay dividends or make other restricted payments, sell or otherwise transfer assets or enter into transactions with affiliates. The Term Loan Facility provides that, upon the occurrence of certain events of default, the Company’s obligations thereunder may be accelerated. Such events of default will include payment defaults to the lenders thereunder, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy, insolvency, corporate arrangement, winding-up, liquidation or similar proceedings, material money judgments, change of control and other customary events of default. Senior Secured Notes Effective as of October 28, 2020, Advantage Solutions FinCo LLC (“Finco”) issued $ 775.0 million aggregate principal amount of 6.50 % Senior Secured Notes due 2028 (the “Notes”). Substantially concurrently with the issuance of the Notes, Finco merged with and into Advantage Sales & Marketing Inc. (the “Issuer”), with the Issuer continuing as the surviving entity and assuming the obligations of Finco. The terms of the Notes are governed by an Indenture, dated as of October 28, 2020 (the “Indenture”), among Finco, the Issuer, the guarantors named therein (the “Notes Guarantors”) and Wilmington Trust, National Association, as trustee and collateral agent. Interest on the Notes is payable semi-annually in arrears on May 15 and November 15 at a rate of 6.50% per annum, maturing on November 15, 2028 . The Notes are guaranteed by Holdings and each of the Issuer’s direct and indirect wholly owned material U.S. subsidiaries (subject to certain permitted exceptions) and Canadian subsidiaries (subject to certain permitted exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenues of Canadian subsidiaries) that is a borrower or guarantor under the Term Loan Facility. The Notes and the related guarantees are the general, senior secured obligations of the Issuer and the Notes Guarantors, are secured on a first-priority pari passu basis by security interests on the fixed asset collateral (equal in priority with liens securing the Term Loan Facility), and are secured on a second-priority basis by security interests on the current asset collateral (second in priority to the liens securing the Revolving Credit Facility and equal in priority with liens securing the Term Loan Facility), in each case, subject to certain limitations and exceptions and permitted liens. The Notes and related guarantees rank (i) equally in right of payment with all of the Issuer’s and the Guarantors’ senior indebtedness, without giving effect to collateral arrangements (including the Senior Secured Credit Facilities) and effectively equal to all of the Issuer’s and the Guarantors’ senior indebtedness secured on the same priority basis as the Notes, including the Term Loan Facility, (ii) effectively subordinated to any of the Issuer’s and the Guarantors’ indebtedness that is secured by assets that do not constitute collateral for the Notes to the extent of the value of the assets securing such indebtedness and to indebtedness that is secured by a senior-priority lien, including the Revolving Credit Facility to the extent of the value of the current asset collateral and (iii) structurally subordinated to the liabilities of the Issuer’s non-Guarantor subsidiaries. The Notes are redeemable on or after November 15, 2023 at the applicable redemption prices specified in the Indenture plus accrued and unpaid interest. If the Issuer or its restricted subsidiaries sell certain of their respective assets or experience specific kinds of changes of control, subject to certain exceptions, the Issuer must offer to purchase the Notes at par. In connection with any offer to purchase all Notes, if holders of no less than 90 % of the aggregate principal amount of Notes validly tender their Notes, the Issuer is entitled to redeem any remaining Notes at the price offered to each holder. The Borrower may voluntarily prepay loans or reduce commitments under the Notes, in whole or in part without premium or penalty at a mutually agreeable rate between the buyer and the seller. During the year ended December 31, 2025 , the Borrower repurchased Notes with a par value of $ 20.0 million for $ 18.2 million. The Company recognized gains on the repurchase of the Notes of $ 1.8 million, $ 9.6 million and $ 4.0 million for the years ended December 31, 2025, 2024 and 2023, respectively, as a component of “Interest expense, net” in the Consolidated Statements of Operations and Comprehensive Loss. The Notes are subject to covenants that, among other things limit the Issuer’s ability and its restricted subsidiaries’ ability to: incur additional indebtedness or guarantee indebtedness; pay dividends or make other distributions in respect of, or repurchase or 78 redeem, the Issuer’s or a parent entity’s capital stock; prepay, redeem or repurchase certain indebtedness; issue certain preferred stock or similar equity securities; make loans and investments; sell or otherwise dispose of assets; incur liens; enter into transactions with affiliates; enter into agreements restricting the Issuer’s subsidiaries’ ability to pay dividends; and consolidate, merge or sell all or substantially all of the Issuer’s assets, except as permitted under the terms of the Notes. The following constitute events of default under the Notes, among others: default in the payment of interest; default in the payment of principal; failure to comply with covenants; failure to pay other indebtedness after final maturity or acceleration of other indebtedness exceeding a specified amount; certain events of bankruptcy; failure to pay a judgment for payment of money exceeding a specified aggregate amount; voidance of subsidiary guarantees; failure of any material provision of any security document or intercreditor agreement to be in full force and effect; and lack of perfection of liens on a material portion of the collateral, in each case subject to applicable grace periods. Debt Maturities Future minimum principal payments on long-term debt are as follows: (in thousands) 2026 $ 13,250 2027 1,079,495 2028 595,087 Total future minimum principal payments $ 1,687,832 9. Leases The Company leases facilities, and equipment under noncancelable leases that have been classified as operating leases for financial reporting purposes. These leases often include one or more options to renew and the lease term includes the renewal terms when it is reasonably certain that the Company will exercise the option. In general, for the Company’s material leases, the renewal options are not included in the calculation of its right-of-use assets and lease liabilities, as the Company does not believe that it is reasonably certain that these renewal options will be exercised. The Company’s lease agreements do not contain any material residual guarantees or material restrictive covenants. All operating lease expenses are recognized on a straight-line basis over the lease term as a component of “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Payments under the Company’s lease arrangements are primarily fixed. However, certain lease agreements contain variable costs, which are expensed as incurred and not included in the calculation of the Company’s right-of-use assets and related liabilities for those leases. These costs typically include real estate taxes, common area maintenance and utilities for which the Company is obligated to pay under the terms of those leases. During the years ended December 31, 2025, 2024, and 2023 , the Company expensed approximately $ 11.8 million, $ 18.0 million and $ 26.5 million, respectively, of total operating lease costs, which includes $ 2.3 million, $ 2.0 million and $ 4.8 million of variable lease costs, respectively. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company’s right-of-use assets and lease liabilities for operating leases as of December 31, 2025 and 2024 were as follows: Classification December 31, (in thousands) 2025 2024 Assets Operating lease right-of-use assets Other assets $ 22,261 $ 25,932 Liabilities Current operating lease liabilities Other accrued expenses 11,432 13,323 Noncurrent operating lease liabilities Other long-term liabilities 20,703 24,648 Total lease liabilities $ 32,135 $ 37,971 Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. In determining its incremental borrowing rate, the Company reviewed the terms of its leases, its credit facilities, and other factors. 79 Information related to the Company’s right-of-use assets and related lease liabilities were as follows: Year Ended December 31, (amounts in thousands) 2025 2024 2023 Cash paid for operating lease liabilities $ 10,044 $ 18,518 $ 25,527 Right-of-use assets obtained in exchange for new operating lease obligations 6,251 855 18,187 Weighted-average remaining lease term 4.7 years 3.5 years 3.8 years Weighted-average discount rate 10.8 % 9.9 % 9.8 % Maturities of lease liabilities as of December 31, 2025 were as follows: (in thousands) 2026 $ 13,157 2027 8,575 2028 6,141 2029 5,194 2030 2,421 Thereafter 7,576 Total lease payments 43,064 Less: imputed interest ( 10,929 ) Present value of lease liabilities $ 32,135 10. Fair Value of Financial Instruments The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. As of December 31, 2025, and 2024, the Company’s interest rate derivatives and forward contracts are Level 2 assets and liabilities with the related fair values based on third-party pricing service models. These models use discounted cash flows that utilize market-based forward swap curves commensurate with the terms of the underlying instruments. The following table sets forth the Company’s financial assets and liabilities measured on a recurring basis at fair value, categorized by input level within the fair value hierarchy. The carrying amounts of “Cash and cash equivalents”, “Accounts receivable”, and “Accounts payable” approximate fair value due to the short-term maturities of these financial instruments in the Consolidated Balance Sheets. December 31, 2025 (in thousands) Fair Value Level 1 Level 2 Level 3 Liabilities measured at fair value Derivative financial instruments $ 476 $ — $ 476 $ — Total liabilities measured at fair value $ 476 $ — $ 476 $ — December 31, 2024 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets measured at fair value Derivative financial instruments $ 796 $ — $ 796 $ — Total assets measured at fair value $ 796 $ — $ 796 $ — Interest Rate Collar and Cap Agreements The Company had interest rate collar and cap contracts with an aggregate notional value of principals of $ 700.0 million as of December 31, 2025 and 2024 , from various financial institutions to manage the Company’s exposure to interest rate movements on variable rate credit facilities. In July 2024, the Company entered into two interest rate collar contracts with a notional value of principal of $ 200.0 million each to manage the Company's exposure to potential interest rate increases that may result from fluctuation in SOFR. The interest rate collar contracts were effective December 16, 2024 and will mature on April 5, 2027 and 2028. In April 80 2023, the Company entered into two interest rate collar contracts in an aggregate notional amount of $ 300.0 million with a maturity date of April 5, 2026 to manage the Company's exposure to potential interest rate increases that may result from fluctuation in SOFR. As of December 31, 2025, the fair value of the Company's outstanding interest rate collars and caps of $ 0.5 million was included in “Other long-term liabilities” in the Consolidated Balance Sheets. As of December 31, 2024, the fair value of the Company’s outstanding interest rate caps and collars of $ 0.8 million were included in “Prepaid expenses and other current assets” in the Consolidated Balance Sheets. Changes in fair value recognized as a component of “Interest expense, net” in the Consolidated Statements of Operations and Comprehensive Loss. During the year ended December 31, 2025 , the Company recognized interest expense of $ 1.3 million related to changes in the fair value of its derivative instruments. During the years ended December 31, 2024, and 2023 , the Company recognized interest income of $ 5.3 million and $ 7.7 million, respectively, related to changes in the fair value of its derivative instruments. Long-term Debt The following table sets forth the carrying values and fair values of the Company’s financial liabilities measured on a non-recurring basis, categorized by input level within the fair value hierarchy: (in thousands) Carrying Value Fair Value (Level 2) Balance at December 31, 2025 Term Loan Facility $ 1,092,745 $ 928,880 6.5 % Senior Secured Notes 595,087 483,776 Total long-term debt $ 1,687,832 $ 1,412,656 (in thousands) Carrying Value Fair Value (Level 2) Balance at December 31, 2024 Term Loan Facility $ 1,105,995 $ 1,153,346 6.5 % Senior Secured Notes 615,087 612,533 Total long-term debt $ 1,721,082 $ 1,765,879 The fair value of debt reported in the table above is based on adjusted price quotations on the debt instruments in an active market. The Company believes that the carrying value of its other borrowings, including amounts outstanding, if any, for the Revolving Credit Facility, approximate fair market value based on maturities for debt of similar terms. 11. Investments in Unconsolidated Affiliates The carrying value of the Company’s investments in unconsolidated affiliates was $ 234.1 million and $ 226.5 million as of December 31, 2025 and 2024, respectively. The investments as of December 31, 2025 and 2024 are primarily comprised of the Company’s investment in ASL and Global Smollan Holdings (“GSH”). The Company’s proportionate share in their net assets at December 31, 2025, and 2024 were $ 216.5 million and $ 212.6 million, respectively. The Company’s equity method investments are not considered significant based on Regulation S-X Rule 4-08(g); therefore, no summarized financial information for the Company’s unconsolidated subsidiaries have been presented. European Joint Venture and Smollan Holdings (“SH”) On November 30, 2023, the Company reduced its equity interest in ASL, its European joint venture, from a majority interest to a minority interest of 49.6 % (“ASL Transaction”). As part of the ASL Transaction, the Company ceased to have a controlling financial interest in ASL. The Company reassessed the VIE and voting interest models and concluded the Company no longer has control. Therefore, in accordance with ASC 810, ASL was deconsolidated and the Company recorded a gain on deconsolidation of $ 58.9 million that has been included in the Consolidated Statements of Operations and Comprehensive Loss. Subsequent to the ASL Transaction, the Company retained significant influence over ASL, and the investment in ASL is accounted for under the equity method of accounting. The Company’s equity method investment in ASL was recognized at its fair value totaling $ 91.9 million on November 30, 2023. 81 In conjunction with the ASL Transaction, the Company sold its 12.5 % interest in Partnership SPV 1 Limited in exchange for a non-voting interest in GSH, resulting in an insignificant impact on the consolidated financial statements as a result of this transaction. In May 2023, the Company entered into a transaction in which it contributed its 25 % ownership in the common stock of SH to GSH. Subsequent to this contribution, the Company holds a 25 % non-voting equity investment in SH that provides the Company with preferred rights to non-cumulative dividends declared by SH with specified annual maximum dividends (“SH Dividend Shares”). The carrying value of the investment was not material as of December 31, 2025 and 2024. Other Investments As part of the sale of the foodservice businesses during the year ended December 31, 2024, the foodservice businesses were combined with an entity owned by the buyer, with the Company receiving an ongoing 7.5 % interest in the combined business. The ongoing ownership interest represents a continuing involvement which the Company has determined represents an equity method investment. Upon the close of the transaction, the retained 7.5 % interest was recognized at fair value of $ 8.4 million. During the year ended December 31, 2025 , the Company sold its remaining 7.5 % ownership interest in the combined foodservice business for $ 18.6 million in cash proceeds, resulting in a gain of $ 8.5 million, recognized in “Gain on divestiture” within the Consolidated Statements of Operations and Comprehensive Loss. The carrying value of the investment was $ 9.0 million as of December 31, 2024. 12. Stock-Based Compensation and Other Benefit Plans The Company has nonqualified stock options, restricted stock units (“RSUs”), and performance restricted stock units (“PSUs”) under the Company’s 2020 Incentive Plan, as amended and restated (the “Plan”). The Company’s RSUs and PSUs are expensed based on the fair value at the grant date . The Company recognized stock-based compensation expense and equity-based compensation expense as follows: Year Ended December 31, (in thousands) 2025 2024 2023 Restricted stock-based unit awards $ 19,101 $ 17,731 $ 22,177 Other share-based awards 7,814 13,288 13,090 Total stock-based compensation before tax 26,915 31,019 35,267 Tax benefit ( 5,487 ) ( 5,050 ) ( 8,005 ) Total stock-based compensation expense included in net loss $ 21,428 $ 25,969 $ 27,262 Performance Restricted Stock Units PSUs granted in fiscal years 2025 and 2024 cliff-vest after three years at a rate ranging from 0 % to 200 % subject to achievement of certain financial performance criteria over the same three years based on measurements of the Company’s Adjusted EBITDA margin and cash earnings, both terms as defined in the award agreement, and the recipient's continued service to the Company. Financial performance is measured at the conclusion of each fiscal year of the vesting period by the Human Capital Committee (“HCC”). The number of PSUs that ultimately vest is further modified based on the Company’s total shareholder return (“TSR”) relative to a defined peer group over the same performance period (which adjustment imposes a floor or a cap on the total number of PSUs that are eligible to vest based on the Company’s relative total shareholder return ranking). Following completion of the performance period and determination of achievement levels, the HCC approves the final number of PSUs vested and settled in shares of the Company’s Class A common stock. During the first quarter of fiscal year 2026, the HCC determined the year one achievement percentage for PSUs granted in fiscal year 2025 was not met, with two years remaining in the performance period. During the first quarter of fiscal year 2025, the Human Capital Committee determined the annual achievement percentage for PSUs granted in fiscal year 2024 to be 128.3 % . During the first quarter of fiscal year 2026, the HCC determined the year two achievement percentage for PSUs granted in fiscal year 2024 had not been met, with one year remaining in the performance period. PSUs granted in fiscal years 2023 vest over a three year period at a rate ranging from 0 % to 150 % subject to achievement of certain financial performance criteria based on the Company’s revenues and Adjusted EBITDA targets, both terms as defined in the award agreement, over the 2023 fiscal year, and the recipient’s continued service to the Company. During the first quarter of 2024, the HCC determined that the achievement percentage for the 2023 grants was 150 %. This achievement percentage is subject to downward adjustment in fiscal years 2024 and 2025 by the HCC if the Company does not maintain above target performance. The fair value of PSU grants was equal to the closing price of the Company's stock on the date of the applicable grant. The following table presents the number of PSUs that would potentially be issued upon achievement of performance criteria at threshold, target and maximum along with the maximum potential expense if the Maximum Goals were met for these awards. Recognition of 82 expense associated with performance-based stock is not permitted until achievement of the performance targets are probable of occurring. Year Granted Number of Shares Threshold Number of Shares Target Number of Shares Maximum Weighted Average Grant Date Fair Value Per Share Maximum Remaining Unrecognized Compensation Expense Weighted-average remaining requisite service periods 2025 — 3,647,842 7,295,684 $ 1.31 $ 5,284,685 2.3 years 2024 360,689 843,388 1,265,082 $ 4.35 $ 1,165,249 1.4 years 2023 3,371,860 3,371,860 3,371,860 $ 2.10 $ 796,609 0.4 years The following table summarizes the PSU activity for the year ended December 31, 2025: Performance Share Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2025 6,770,840 $ 2.56 Granted 4,005,531 $ 1.30 Distributed ( 1,652,830 ) $ 2.22 Forfeited ( 1,548,872 ) $ 2.19 PSU performance adjustment (1) 288,421 $ 4.33 Outstanding at December 31, 2025 (2) 7,863,090 $ 1.97 (1) The number of PSUs outstanding was adjusted during the first quarter of fiscal year 2025, to reflect the 128.3 % achievement level approved by the HCC for fiscal year 2024. (2) PSU award activity is presented at target until the period in which the HCC approves the achievement percentages, at which point the awards are adjusted accordingly, subject to additional performance requirements and service-based vesting conditions. Restricted Stock Units Restricted stock units are subject to the recipient’s continued service to the Company. RSUs are generally scheduled to vest over three years and are subject to the provisions of the agreement under the Plan. During the year ended December 31, 2025, the following activities involving RSUs occurred under the Plan: Number of RSUs Weighted Average Grant Date Fair Value Outstanding at January 1, 2025 11,817,446 $ 3.28 Granted 21,161,919 $ 1.30 Distributed ( 5,900,414 ) $ 3.18 Forfeited ( 3,936,324 ) $ 1.93 Outstanding at December 31, 2025 23,142,627 $ 1.71 As of December 31, 2025, the total remaining unrecognized compensation cost related to RSUs amounted to $ 16.4 million, which will be amortized over the weighted-average remaining requisite service periods of 2.0 years. Stock Options During the year ended December 31, 2025, the following activities involving stock options occurred under the Plan: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2025 20,433,018 $ 5.75 Granted 7,216,054 $ 1.31 Forfeited ( 1,811,428 ) $ 6.59 Cancelled/Expired ( 146,373 ) $ 2.83 Outstanding at December 31, 2025 25,691,271 $ 4.46 6.2 years $ — Exercisable at December 31, 2025 8,071,629 $ 3.36 6.2 years $ — 83 The fair value of the employee stock options was estimated using the following weighted average assumptions: Year Ended December 31, 2025 2024 2023 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 57.7 % 40.0 % 40.0 % Risk-free interest rate 3.6 % 4.7 % 3.5 % Expected term 4.5 years 4.5 years 6.4 years As of December 31, 2025, the Company had approximately $ 4.9 million of total unrecognized compensation expense related to stock options, net of related forfeiture estimates, which the Company expects to recognize over a weighted-average period of approximately 2.0 years . Employee Benefit Plans The Company sponsors a 401(k) plan for certain employees who meet specified age and length of service requirements. The 401(k) plan include a deferral feature under which employees may elect to defer a portion of their salary, subject to Internal Revenue Service limitations. The Company provides a matching contribution based on a percentage of participating employees’ salaries and contributions made. Total contributions to the plan for the years ended December 31, 2025, 2024, and 2023 were $ 15.3 million, $ 11.7 million, and $ 12.5 million, respectively. 13. Equity Common stock held in treasury, at cost On November 9, 2021, the Company announced that the board of directors authorized a share repurchase program (the “2021 Share Repurchase Program”) pursuant to which the Company may repurchase up to $ 100.0 million of the Company’s Class A common stock. The 2021 Share Repurchase Program does not have an expiration date, but provides for suspension or discontinuation at any time. The 2021 Share Repurchase Program permits the repurchase of the Company’s Class A common stock on the open market and in other means from time to time. The timing and amount of any share repurchase is subject to prevailing market conditions, relevant securities laws and other considerations, and the Company is under no obligation to repurchase any specific number of shares. During the years ended December 31, 2025, 2024 , and 2023, the Company executed open market purchases of $ 0.9 million, $ 34.1 million, and $ 6.4 million, respectively, of the Company ’s Class A common stock under the 2021 Share Repurchase Program. As of December 31, 2025 , there remains $ 46.2 million of share repurchase availability under the 2021 Share Repurchase Program. Warrants As of December 31, 2024 , 11,244,988 public warrants and 7,333,333 private placement warrants were outstanding. Each whole warrant entitled the holder to purchase one whole share of the Company’s Class A common stock at an exercise price of $ 11.50 per share, subject to adjustment. On October 28, 2025 , the Company’s public and private placement warrants expired in accordance with their contractual terms. As of the expiration date, the warrants had no intrinsic value and a fair value of zero . Accordingly, the Company had no liability balance related to the warrants as of December 31, 2025. Deconsolidation of ASL As part of the deconsolidation of ASL, the $ 108.9 million noncontrolling interest was derecognized as reflected in the Consolidated Statements of Stockholders’ Equity. 14. Earnings Per Share The Company calculates earnings per share using a dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net loss by the weighted-average shares of common stock outstanding without the consideration for potential dilutive shares of common stock. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding performance stock units, restricted stock units, public and private placement warrants, the 84 employee stock purchase plan and stock options. Diluted earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding and the potential dilutive shares of common stock for the period determined using the treasury stock method. During periods of net loss, diluted loss per share is equal to basic loss per share because the antidilutive effect of potential common shares is disregarded. The following is a reconciliation of basic and diluted net (loss) income per common share: Year Ended December 31, (in thousands, except share and earnings per share data) 2025 2024 2023 Basic earnings per share computation: Numerator: Net loss from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 227,735 ) $ ( 378,404 ) $ ( 81,211 ) Less: net income from continuing operations attributable to noncontrolling interest — — 2,346 Net loss from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 227,735 ) $ ( 378,404 ) $ ( 83,557 ) Net income from discontinued operations, net of tax — 53,634 20,829 Less: net income from discontinued operations attributable to noncontrolling interest, net of tax — 2,192 594 Net income from discontinued operations attributable to stockholders of Advantage Solutions Inc. $ — $ 51,442 $ 20,235 Denominator: Weighted average common shares - basic 324,564,046 321,515,982 323,677,515 Basic loss per common share from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 0.70 ) $ ( 1.18 ) $ ( 0.26 ) Basic earnings per common share from discontinued operations attributable to stockholders of Advantage Solutions Inc. $ — $ 0.16 $ 0.06 Diluted earnings per share computation: Numerator: Net loss from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 227,735 ) $ ( 378,404 ) $ ( 81,211 ) Less: net income from continuing operations attributable to noncontrolling interest — — 2,346 Net loss from continuing operations attributable to stockholders of Advantage Solutions Inc. $ ( 227,735 ) $ ( 378,404 ) $ ( 83,557 ) Net income from discontinued operations, net of tax — 53,634 20,829 Less: net income from discontinued operations attributable to noncontrolling interest, net of tax — 2,192 594 Net income from discontinued operations attributable to stockholders of Advantage Solutions Inc. $ — $ 51,442 $ 20,235 Denominator: Weighted average common shares - diluted 324,564,046 321,515,982 323,677,515 Diluted loss per common share from continuing operations $ ( 0.70 ) $ ( 1.18 ) $ ( 0.26 ) Diluted income per common share from discontinued operations $ — $ 0.16 $ 0.06 In accordance with the treasury stock method the weighted average shares outstanding assuming dilution include the incremental effect of stock-based awards, except when such effect would be antidilutive. Stock-based awards of 10.6 million, 15.6 million and 6.9 million weighted-average shares were outstanding for the years ended December 31, 2025 , 2024 and 2023, respectively, but were not included in the computation of diluted (loss) earnings per common share because the net loss position of the Company made them antidilutive. 85 15. Related Parties Investment in Unconsolidated Affiliates Transactions between the Company and ASL are considered to be related-party transactions from the date of deconsolidation. During the years ended December 31, 2025 and 2024, revenues from ASL were not material and as of December 31, 2025 and 2024, accounts receivable from ASL were not material. During the years ended December 31, 2025, 2024, and 2023, the Company recognized revenues of $ 4.7 million , $ 9.3 million, and $ 22.2 million, respectively, from the parent company of an investment in unconsolidated affiliates. Accounts receivable from this client were $ 0.4 million and $ 0.9 million as of December 31, 2025 and 2024, respectively. Loans to Karman Topco L.P. Advantage Sales & Marketing Inc., an indirect wholly-owned subsidiary of the Company, entered into loan agreements with Topco, pursuant to which Topco has borrowed various amounts from Advantage Sales & Marketing Inc. to facilitate the payment to certain former employees for their equity interests in Topco. On September 1, 2020, Advantage Sales & Marketing Inc. entered into a loan agreement with Topco consolidating all outstanding amounts under the prior agreements. Pursuant to such loan agreement Topco borrowed $ 6.0 million at an interest rate of 0.39 % per annum. This loan matured on December 31, 2023 and was pre-payable at any time without penalty. During the first quarter of fiscal year 2024, the parties entered into a new loan agreement for $ 6.3 million to refinance the matured loan. The loan bears interest at a rate of 10.09 % per annum and matures on December 31, 2026 . The loan is pre-payable at any time without penalty. Other related party transactions Beginning February 2023, an officer of the Company has served as a member of the board of directors of a client of the Company. The Company recognized revenues from such client of $ 4.8 million, $ 4.9 million and $ 4.4 million during the years ended December 31, 2025, 2024 and 2023, respectively. Accounts receivable from this client were $ 0.7 million and $ 0.4 million as of December 31, 2025 and 2024, respectively. Beginning July 2023 through March 31, 2025, a member of the board of directors of the Company served as an officer of a client of the Company. The Company recognized $ 2.2 million, $ 7.9 million and $ 3.3 million of revenues from such client during the years ended December 31, 2025, 2024 and 2023, respectively. Accounts receivable from this client were $ 0.2 million as of December 31, 2024. 16. Income Taxes The benefit from income taxes is as follows: Year Ended December 31, (in thousands) 2025 2024 2023 Current income tax expense (benefit) Federal $ 3,524 $ 916 $ 24,805 State 4,310 2,004 9,784 Foreign 12,103 9,605 13,456 Total current income tax expense (benefit) 19,937 12,525 48,045 Deferred income tax expense (benefit) Federal ( 42,742 ) ( 59,986 ) ( 66,730 ) State ( 13,923 ) ( 14,245 ) ( 16,230 ) Foreign ( 856 ) ( 1,081 ) ( 2,733 ) Total deferred income tax expense (benefit) (57,521 ) (75,312 ) (85,693 ) Total income tax expense (benefit) $ ( 37,584 ) $ ( 62,787 ) $ ( 37,648 ) Effective December 31, 2025, the Company adopted ASU 2023-09, on a prospective basis. As required under the new guidance, the Company has expanded the disaggregation of the income tax rate reconciliation with the drivers of the effective tax rate. The revised presentation includes separate quantitative disclosure of recurring and non‑recurring items, jurisdictional impacts, and other significant reconciling categories that may affect period‑over‑period comparability. The following table presents the income tax rate reconciliation prepared in accordance with ASU 2023‑09. 86 Year Ended December 31, 2025 (in thousands) Amount Percent U.S. Federal statutory tax rate $ ( 55,717 ) 21.0 % State income taxes, net of federal income tax effect ( 7,169 ) 2.7 % Foreign tax effects 1,998 ( 0.7 %) Effect of cross-border tax laws Foreign branch taxes 4,356 ( 1.6 %) Tax credits Work opportunity tax credits ( 3,099 ) 1.2 % Other ( 31 ) 0.0 % Changes in valuation allowances 16,384 ( 6.2 %) Nontaxable or nondeductible items 6,781 ( 2.6 %) Changes in unrecognized tax benefits ( 457 ) 0.2 % Other adjustments ( 630 ) 0.2 % Total tax expense (benefit) and effective tax rate $ ( 37,584 ) 14.2 % State taxes in California, Illinois, Maryland, New Jersey, New York and Texas made up the majority (greater than 50%) of the tax effect in this category. For periods prior to the adoption of ASU 2023‑09, the Company’s income tax disclosures continue to reflect the presentation and categorization required under previous U.S. GAAP. The following table presents the income tax rate reconciliation for the periods reported under the prior guidance. Year Ended December 31, 2024 2023 U.S. Federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal income tax effect 2.2 % 4.3 % Foreign tax effects ( 0.8 %) ( 2.9 %) Deconsolidation of subsidiaries 0.0 % 14.0 % Goodwill impairment ( 6.2 %) 0.0 % Equity-based compensation 0.1 % ( 2.3 %) Work opportunity tax credit 0.6 % 2.5 % Disallowed executive compensation ( 0.6 %) ( 1.8 %) Meals and entertainment ( 0.5 %) ( 2.0 %) Contingent consideration fair value adjustment 0.0 % ( 0.4 %) Fair value adjustment of warrant liability 0.0 % 0.1 % Other adjustments ( 1.6 %) ( 0.8 %) Total tax expense (benefit) and effective tax rate 14.2 % 31.7 % Income taxes paid by jurisdiction is as follows: (in thousands) December 31, 2025 Federal $ 4,601 State Texas 1,390 All other states 3,652 Foreign Canada 6,016 Japan 1,068 All other foreign 2,564 Total income taxes paid, net of amounts refunded $ 19,291 87 The geographic components of loss before income taxes are as follows: Year Ended December 31, (in thousands) 2025 2024 2023 U.S. sources $ ( 282,672 ) $ ( 452,261 ) $ ( 217,097 ) Non-U.S. sources 17,353 11,070 98,238 Loss from continuing operations before income taxes $ ( 265,319 ) $ ( 441,191 ) $ ( 118,859 ) Net deferred tax liabilities consist of the following: December 31, (in thousands) 2025 2024 Deferred tax assets Accrued liabilities $ 64,904 $ 63,915 Interest expense 103,989 88,466 Right-of-use liabilities 8,079 9,517 Net operating losses 2,756 2,855 Acquisition and divestiture related expenses 4,494 5,460 Capitalized research and development costs — 2,919 Insurance reserves 2,283 2,599 Acquired intangible assets, including goodwill 1,374 1,419 Other 3,272 2,977 Total deferred tax assets 191,151 180,127 Deferred tax liabilities Acquired intangible assets, including goodwill 226,290 299,981 Depreciation 11,345 18 Right-of-use assets 5,568 6,465 Debt issuance costs 4,440 6,359 Other 8,686 8,257 Total deferred tax liabilities 256,329 321,080 Less: deferred income tax asset valuation allowances ( 21,436 ) ( 3,199 ) Net deferred tax liabilities $ 86,614 $ 144,152 December 31, (in thousands) 2025 2024 Reported as: Noncurrent deferred tax asset $ 3,409 $ 2,737 Noncurrent deferred tax liabilities 90,023 146,889 Net deferred tax liabilities $ 86,614 $ 144,152 Income tax expense from discontinued operations was $ 41.3 million and $ 8.6 million for the fiscal years ended December 31, 2024 and 2023, respectively. Income tax expense for the fiscal years ended December 31, 2024 and 2023 was impacted primarily by the sale of the divested entities and changes in the income before income taxes from discontinued operations. The Company did no t have discontinued operations in 2025. T The Organization for Economic Co-operation and Development (“OECD”) published its model rules “Tax Challenges Arising From the Digitalization of the Economy - Global Anti-Base Erosion Model Rules (Pillar Two)” which established a global minimum corporate tax rate of 15% for certain multinational enterprises. Many countries have implemented or are in the process of implementing the Pillar Two legislation, which will apply to the Company. The Company concluded that Pillar Two did not have a material impact on the global provision and does not currently estimate a material impact in future periods. The Company will continue to monitor the impact as countries implement legislation and the OECD provides additional guidance to determine any impact in future periods. On July 4, 2025, the “One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and the restoration of favorable tax treatment for certain business provisions, including 100% bonus depreciation, immediate expensing of domestic research and experimental costs, and the restoration of the Section 163(j) depreciation and amortization addback for 88 purposes of determining the business interest expense limitation. The Company concluded no material direct impact to the effective tax rate. However, indirectly the Company concluded a favorable adjustment to the Company’s interest expense valuation allowance required for the year. The Company held cash and cash equivalents in foreign subsidiaries of $ 14.0 million and $ 65.0 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the undistributed earnings of the Company’s foreign subsidiaries was $ 124.6 million and $ 130.7 million, respectively. The Company has not recorded a deferred tax liability related to undistributed earnings of its foreign subsidiaries as of December 31, 2025 , except for a $ 1.0 million deferred tax liability for unremitted earnings in Canada with respect to which the Company no longer has an indefinite reinvestment assertion. Taxes have not been provided on the remaining $ 116.6 million of undistributed foreign earnings. The incremental tax liability associated with these earnings is expected to be immaterial. The Company evaluates its deferred tax assets, including a determination of whether a valuation allowance is necessary, based upon its ability to utilize the assets using a more likely than not basis. Deferred tax assets are only recorded to the extent that they are realizable based upon past and future income. The Company’s valuation allowances on its deferred tax assets as of December 31, 2025, 2024 and 2023 were $ 21.4 million, $ 3.2 million and $ 3.5 million, respectively. As of December 31, 2025 , the Company had $ 3.0 million of United States Federal Net Operating Losses (“NOL”), $ 45.4 million state NOL, and $ 4.1 million foreign NOL. The change of ownership provisions of the Tax Reform Act of 1986 may limit utilization of a portion of the Company’s domestic NOL to future periods. The United States Federal NOL expires in year 2038, $25.0 million of the state NOL expires between years 2026 and 2045 and the remaining $20.4 million of the state NOL carry forward indefinitely. Foreign NOL of $1.2 million expires between years 2026 and 2036 and the remaining $2.9 million of the foreign NOL carry forward indefinitely. Uncertain Tax Positions The Company accounts for uncertain tax positions when it is more likely than not that the tax position will not be sustained on examination by the taxing authorities, based on the technical merits of the position. As of December 31, 2025, 2024, and 2023 , the Company’s unrecognized tax benefits were $ 2.3 million, $ 2.9 million and $ 2.9 million, respectively. $ 1.5 million out of the $ 2.3 million of the unrecognized tax benefits as of December 31, 2025 would be included in the effective tax rate if recognized in future periods. December 31, (in thousands) 2025 2024 2023 Beginning unrecognized tax benefits $ 2,858 $ 2,887 $ 560 Increases for tax positions related to prior years — — 2,350 Decreases due to lapsed statutes of limitations ( 571 ) ( 29 ) ( 23 ) Ending unrecognized tax benefits $ 2,287 $ 2,858 $ 2,887 The Company is unaware of any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase within the next twelve months. The Company files tax returns in the United States, various states and foreign jurisdictions. With few exceptions, as of December 31, 2025, the Company is no longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to 2021. The Company does not have any material ongoing income tax audits. The Company has elected to classify interest and penalties as components of tax expense. These amounts were $ 1.4 million, $ 1.4 million and $ 0.9 million for the years ended December 31, 2025, 2024 and 2023 , respectively. 17. Operating Segments and Geographic Information Effective January 1, 2024, the Company revised its reportable segments to align with the Company’s business strategy, and the manner in which the Chief Executive Officer, the Company's CODM , assesses the performance and makes decisions regarding the allocation of resources for the Company. The Company’s reportable segments consist of Branded Services, Experiential Services, and Retailer Services. The reportable segments reported below are the segments of the Company for which separate financial information is available. Through the Company's Branded Services segment, the Company offers capabilities in brokerage, branded merchandising and omni-commerce marketing services to CPG manufacturers. Through the Company's Experiential Services segment, the Company expands the reach of consumer brands and retailer products to convert shoppers into buyers through sampling and product 89 demonstration programs executed in-store and online. Through the Company's Retailer Services segment, the Company provides retailers with end-to-end advisory, retailer merchandising, and agency expertise to drive sales. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; therefore, no additional information is produced or included herein. Segment operating income is the measure utilized by the CODM to assess performance and allocate resources. When evaluating the Company’s financial performance, the CODM regularly reviews revenues, compensation and benefits, reimbursable expenses and other segment items. Compensation costs are key metrics reviewed by the CODM when allocating resources and assessing performance as the Company depends significantly on human capital to deliver services to its clients. The CODM uses segment operating (loss) income as the profit measure in evaluating segment performance during the annual planning and forecasting process and in monitoring actual performance versus plan. Revenues and significant expenses by segment are as follows: Year Ended December 31, 2025 (in thousands) Branded Services Experiential Services Retailer Services Total Company Revenues $ 1,163,672 $ 1,435,297 $ 943,673 $ 3,542,642 Less: Compensation and benefits 644,587 696,910 589,976 1,931,473 Reimbursable expenses (1) 133,287 411,709 — 544,996 Other segment items (2) 281,920 248,046 292,204 822,170 Impairment of goodwill and indefinite-lived asset 77,797 53,086 72,802 203,685 Depreciation and amortization 125,807 42,751 33,700 202,258 Income from investment in European joint venture and other ( 7,491 ) — — ( 7,491 ) Gain on divestiture ( 27,983 ) — — ( 27,983 ) Total segment operating expenses from continuing operations 1,227,924 1,452,502 988,682 3,669,108 Total segment operating loss from continuing operations $ ( 64,252 ) $ ( 17,205 ) $ ( 45,009 ) $ ( 126,466 ) Year Ended December 31, 2024 (in thousands) Branded Services Experiential Services Retailer Services Total Company Revenues $ 1,306,336 $ 1,295,029 $ 964,959 $ 3,566,324 Less: Compensation and benefits 719,089 701,906 619,387 2,040,382 Reimbursable expenses (1) 171,766 349,991 — 521,757 Other segment items (2) 330,736 201,149 289,624 821,509 Impairment of goodwill and indefinite-lived asset 275,170 — — 275,170 Depreciation and amortization 130,212 41,728 32,613 204,553 Income from investment in European joint venture and other ( 2,064 ) — — ( 2,064 ) Total segment operating expenses from continuing operations 1,624,909 1,294,774 941,624 3,861,307 Total segment operating (loss) income from continuing operations $ ( 318,573 ) $ 255 $ 23,335 $ ( 294,983 ) 90 Year Ended December 31, 2023 (in thousands) Branded Services Experiential Services Retailer Services Total Company Revenues $ 1,758,417 $ 1,159,449 $ 982,259 $ 3,900,125 Less: Compensation and benefits 1,009,334 638,081 630,484 2,277,899 Reimbursable expenses (1) 179,029 307,610 — 486,639 Other segment items (2) 417,320 173,879 304,334 895,533 Impairment of goodwill and indefinite-lived asset 43,500 — — 43,500 Depreciation and amortization 140,932 36,584 31,340 208,856 Deconsolidation of European joint venture ( 58,891 ) — — ( 58,891 ) Total segment operating expenses from continuing operations 1,731,224 1,156,154 966,158 3,853,536 Total segment operating income from continuing operations $ 27,193 $ 3,295 $ 16,101 $ 46,589 (1) Reimbursable expenses are costs incurred in the delivery of services to the Company's clients that the client has agreed to reimburse, including media, sample, retailer fees and other marketing and production costs. (2) The “other segment items” category primarily consists of costs incurred in the execution of service obligations, including supplies, technology, and other direct expenses such as travel and indirect general and administrative expenses such as professional fees. These costs align with the segment-level information regularly provided to the CODM and represent the difference between revenue and the significant expense categories above in determining segment profitability. Revenues by geographic region are as follows: Year Ended December 31, (in thousands) 2025 2024 2023 Revenues North America $ 3,368,209 $ 3,412,947 $ 3,393,718 Asia Pacific 163,209 145,574 125,569 Europe 11,224 7,803 6,472 European Joint Venture (1) — — 374,366 Total revenues $ 3,542,642 $ 3,566,324 $ 3,900,125 (1) The Company’s European joint venture was deconsolidated during fiscal year 2023. For further details, see Note 2 — Discontinued Operations, Divestitures and Deconsolidation of European Joint Venture. North American revenues were primarily services provided in the U.S. representing revenues of $ 3.1 billion , $ 3.1 billion, and $ 3.2 billion during the years ended December 31, 2025, 2024, and 2023, respectively. The majority of the Company’s long-lived assets are primarily located in North America. Long-lived assets located in all other geographic regions as of December 31, 2025 and 2024 are not material. North American long-lived assets were primarily in the U.S. representing long-lived assets of $ 114.8 million and $ 97.1 million as of December 31, 2025 and 2024 , respectively. The classification of “Asia Pacific” primarily includes the Company’s operations in Japan, South Korea and Taiwan. The classification of “Europe” primarily includes the Company’s operations in Spain, France and Sweden. The Company does not disclose total assets by segment as it is not provided to the CODM. 18. Commitments and Contingencies Litigation The Company is involved in various legal matters that arise in the ordinary course of its business. Some of these legal matters purport or may be determined to be class and/or representative actions, or seek substantial damages, or penalties. The Company has accrued amounts in connection with certain legal matters, including with respect to certain of the matters described below. There can be no assurance, however, that these accruals will be sufficient to cover such matters or other legal matters or that such matters or other legal matters will not materially or adversely affect the Company’s financial position, liquidity, or results of operations. Employment Matters The Company has been involved in various litigation, including purported class or representative actions with respect to matters arising under the California Labor Code and Private Attorneys General Act. The Company has retained outside counsel to represent it in these matters and is vigorously defending its interests. 91 Commercial Matters The Company has been involved in various litigation matters and arbitrations with respect to commercial matters arising with various vendors, clients and third parties. The Company has retained outside counsel to represent it in these matters and is vigorously defending its interests. Legal Matters Related to Take 5 In April 2018, the Company acquired the business of Take 5 Media Group (“Take 5”). As a result of an investigation into that business in 2019 that identified certain misconduct, the Company terminated all operations of Take 5 in July 2019 and offered refunds to clients of collected revenues attributable to the period after the Company’s acquisition. The Company refers to the foregoing as the “Take 5 Matter.” The Company voluntarily disclosed to the United States federal government certain misconduct occurring at Take 5. In October 2022, an arbitrator made a final award in favor of the Company against the seller of the Take 5 business and certain beneficial owners. During the three months ended December 31, 2025, the Company entered into separate agreements with two of the beneficial owners (and certain other parties) each of which provides for payments of certain specified amounts to the Company. The Company has collected more than $ 16 million in aggregate payments from the beneficial owners that settled, but the Company is currently unable to estimate if or when it will be able to collect any amounts from an additional beneficial owner that did not settle. The Take 5 Matter may result in additional litigation expenses for the Company as it pursues collection against this additional beneficial owner and his related parties. Surety Bonds In the ordinary course of business, the Company is required to provide financial commitments in the form of surety bonds to third parties as a guarantee of its performance on and its compliance with certain obligations. If the Company were to fail to perform or comply with these obligations, any draws upon surety bonds issued on its behalf would then trigger the Company’s payment obligation to the surety bond issuer. The Company has outstanding surety bonds issued for its benefit of $ 13.2 million and $ 15.0 million as of December 31, 2025 and 2024 , respectively. 19. Subsequent Events Nasdaq Minimum Bid Price Deficiency Notice In January 2026, the Company received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company is not in compliance with Nasdaq Listing Rule 5450(a)(1) because the closing bid price of the Company’s common stock had been below $1.00 per share for the preceding 30 consecutive trading days. The notice does not result in the immediate suspension or delisting of the Company’s common stock. The Company is evaluating and intends to implement actions designed to regain compliance with the Minimum Bid Requirement within the applicable compliance period. On January 26, 2026, the Board of Directors approved proposed amendments to the Company’s Certificate of Incorporation to effect a reverse stock split. These proposed amendments remain subject to stockholder approval. Equity Method Investment Restructuring Transaction In January 2026, the Company executed a series of agreements to initiate a restructuring of its investment in ASL, an equity‑method investee in which the Company held a 49.6 % ownership interest as of December 31, 2025. Pursuant to these agreements, the Company sold its equity interest in ASL for total consideration of £ 20  million (approximately $ 28 million), consisting of £ 10  million (approximately $ 14 million) payable in cash at closing and £ 10  million (approximately $ 14 million) of deferred consideration, and received an equity interest in the entity separated from ASL. This restructuring did not affect the Company’s ownership interest in, or governance rights to Global Smollan Holdings. The transaction did not impact the Company’s financial position as of December 31, 2025. The Company will recognize the financial effects of the transaction, including any resulting impact on the carrying value of its investment, in the period in which such amounts can be determined. At this time, the effects of the transaction on the Company’s results of operations and financial position for 2026 are not reasonably estimable. Agreement to Support Notes and Term Loan Maturity Extensions On February 6, 2026, Advantage Sales & Marketing Inc., an indirect subsidiary of Advantage Solutions Inc., and certain subsidiaries of Advantage Solutions Inc. entered into a Transaction Support Agreement with holders of approximately 59.2 % of the Advantage Sales & Marketing Inc.’s outstanding senior secured notes and lenders holding approximately 54.3 % of the Advantage Sales & Marketing Inc.’s outstanding term loans. The agreement provides for support of transactions intended to extend the maturities 92 of the Advantage Sales & Marketing Inc.’s outstanding debt obligations. The transactions contemplated include (i)amendments to the existing notes and term loan facilities, (ii) an exchange offer to exchange the outstanding 6.50 % Senior Secured Notes due 2028 (the “Existing Notes”) for a combination of 9.000 % Senior Secured Notes due 2030 and cash consideration (the Exchange Offer) and (iii) a refinancing of the term loan facilities. The agreement contemplates the commencement of these transactions in February 2026 and their completion by March 26, 2026, subject to the satisfaction or waiver of customary conditions. The transaction support agreement may be terminated under certain circumstances and will automatically terminate on March 26, 2026, unless extended by mutual consent. In connection with its entry into the Transaction Support Agreement, on February 9, 2026, Advantage Sales & Marketing Inc. commenced the Exchange Offer. On February 23, 2026, the Exchange Offer early tender date, holders of the Existing Notes had validly tendered $ 589,883,000 aggregate principal amount of Existing Notes and delivered their related consents to the proposed amendments to the Existing Notes. Accordingly, the requisite consents to the proposed amendments were obtained and Advantage Sales & Marketing Inc. entered into the Second Supplemental Indenture to the Existing Notes, which will become operative upon the settlement of the Exchange Offer, which is expected to occur in March 2026. 93 SCHEDULE I ADVANTAGE SOLUTIONS INC. CONDENSED REGISTRANT ONLY FINANCIAL INFORMATION CONDENSED BALANCE SHEETS December 31, (in thousands) 2025 2024 ASSETS Investment in subsidiaries $ 553,958 $ 748,817 Total assets $ 553,958 $ 748,817 LIABILITIES AND STOCKHOLDERS' EQUITY Warrant liability $ — $ 82 Total liability — 82 Equity attributable to stockholders of Advantage Solutions Inc. Common stock, $ 0.0001 par value, 3,290,000,000 shares authorized; 326,429,909 and 320,773,096 shares issued and outstanding as of December 31, 2025 and 2024, respectively 33 32 Additional paid-in capital 3,488,988 3,466,221 Accumulated deficit ( 2,869,347 ) ( 2,641,612 ) Loans to Karman Topco L.P. ( 7,673 ) ( 7,029 ) Accumulated other comprehensive loss ( 4,158 ) ( 15,861 ) Treasury stock, at cost; 12,894,517 and 12,400,075 shares as of December 31, 2025 and 2024, respectively ( 53,885 ) ( 53,016 ) Total equity attributable to stockholders of Advantage Solutions Inc. 553,958 748,735 Total liabilities and stockholders’ equity $ 553,958 $ 748,817 See Notes to Condensed Registrant Only Financial Statements 94 SCHEDULE I ADVANTAGE SOLUTIONS INC. CONDENSED REGISTRANT ONLY FINANCIAL INFORMATION CONDENSED BALANCE SHEETS Year Ended December 31, (in thousands) 2025 2024 2023 Revenues $ — $ — $ — Cost of revenues (exclusive of depreciation and amortization shown separately below) — — — Selling, general, and administrative expenses — — — Impairment of goodwill and indefinite-lived asset — — — Gain on deconsolidation of subsidiaries — — — Loss on divestitures — — — Depreciation and amortization — — — Income from equity method investments — — — Total operating expenses — — — Operating income — — — Other income: Change in fair value of warrant liabilities ( 83 ) ( 584 ) ( 286 ) Interest expense, net — — — Total other income ( 83 ) ( 584 ) ( 286 ) Income before income taxes and equity in net income of subsidiaries 83 584 286 Provision for income taxes — — — Net income before equity in net income of subsidiaries 83 584 286 Equity in net income (loss) of subsidiaries ( 227,818 ) ( 327,546 ) ( 63,608 ) Net income (loss) attributable to subsidiaries ( 227,735 ) ( 326,962 ) ( 63,322 ) Other comprehensive (loss) income, net of tax equity in comprehensive (loss) income of subsidiaries 11,703 ( 9,485 ) 5,817 Total comprehensive income (loss) $ ( 216,032 ) $ ( 336,447 ) $ ( 57,505 ) See Notes to Condensed Registrant Only Financial Statements 95 ADVANTAGE SOLUTIONS INC. CONDENSED REGISTRANT ONLY FINANCIAL INFORMATION NOTES TO THE CONDENSED REGISTRANT ONLY FINANCIAL STATEMENTS 1. Basis of Presentation In the registrant company only financial statements, Advantage Solutions Inc.’s (the “Registrant”) investment in subsidiaries is stated at cost plus equity in undistributed earnings of the subsidiaries during the years ended December 31, 2025 and 2024. The accompanying condensed registrant company financial statements have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X. A condensed statement of cash flows was not presented because Registrant’s operating activities have no cash impact and there were no investing or financing cash flow activities during the years ended December 31, 2025, 2024, and 2023. This information should be read in conjunction with the accompanying Consolidated Financial Statements. 2. Debt Restrictions Pursuant to the terms of the Senior Secured Credit Facilities and the Notes discussed in Note 8—Debt, of the Notes to the Consolidated Financial Statements, the Registrant’s subsidiaries have restrictions on their ability to pay dividends or make intercompany loans and advances to the Registrant. Since the restricted net assets of the Registrant’s subsidiaries exceed 25 % of the consolidated net assets of the Registrant and its subsidiaries, the accompanying condensed registrant company financial statements have been prepared in accordance with Rule 12-04, Schedule 1 of Regulation S-X. Advantage Sales & Marketing Inc., an indirect wholly-owned subsidiary of the Company (the “Borrower”) has obligations under the Term Loan Facility that are guaranteed by Karman Intermediate Corp. (“Holdings”) and all of the Borrower’s direct and indirect wholly owned material U.S. subsidiaries (as defined, subject to certain permitted exceptions) and Canadian subsidiaries (subject to certain permitted exceptions, including exceptions based on immateriality thresholds of aggregate assets and revenues of Canadian subsidiaries) (the “Guarantors”). The Term Loan Facility is secured by a lien on substantially all of Holdings’, the Borrower’s and the Guarantors’ assets (subject to certain permitted exceptions). The Term Loan Facility has a first-priority lien on the fixed asset collateral (equal in priority with the liens securing the Notes) and a second-priority lien on the current asset collateral (second in priority to the liens securing the Revolving Credit Facility), in each case, subject to other permitted liens. The Borrower will be required to prepay the Term Loan Facility with 100 % of the net cash proceeds of certain asset sales (such percentage subject to reduction based on the achievement of specific first lien net leverage ratios) and subject to certain reinvestment rights, 100 % of the net cash proceeds of certain debt issuances and 50 % of excess cash flow (such percentage subject to reduction based on the achievement of specific first lien net leverage ratios). The Term Loan Facility contains certain customary negative covenants, including, but not limited to, restrictions on the ability of Holdings and that of its restricted subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, pay dividends or make other restricted payments, sell or otherwise transfer assets or enter into transactions with affiliates. The Term Loan Facility provides that, upon the occurrence of certain events of default, the Company’s obligations thereunder may be accelerated. Such events of default will include payment defaults to the lenders thereunder, material inaccuracies of representations and warranties, covenant defaults, cross-defaults to other material indebtedness, voluntary and involuntary bankruptcy, insolvency, corporate arrangement, winding-up, liquidation or similar proceedings, material money judgments, change of control and other customary events of default. 96 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. None