Greg Parrish's questions to Advantage Solutions (ADV) leadership • Q2 2025
Question
Greg Parrish from Morgan Stanley asked for details on the drivers for the expected second-half EBITDA improvement in the Branded Services segment, questioned the surprisingly low Q2 CapEx, and inquired about the current wage inflation trends.
Answer
CEO Dave Peacock attributed the anticipated second-half improvement in Branded Services to new business wins, positive seasonality heading into the holidays, and greater efficiencies from the new 'Pulse' analytics platform. CFO Chris Growe explained that the low Q2 CapEx was due to project timing and a lower-than-planned capitalization of labor, though some spending may shift into 2026. He also stated that wage inflation is stable at around 3% and was nearly offset by pricing actions in the quarter, a trend he expects to continue.