The ODP Corporation Announces Third Quarter 2025 Results
Third Quarter Revenue of
GAAP Operating Income of
Adjusted EBITDA of
Previously Announced Transaction Expected to Close by Year-End 2025
Consolidated (in millions, except per share amounts) |
3Q25 |
3Q24 |
YTD25 |
YTD24 |
Selected GAAP and Non-GAAP measures: |
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Sales |
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Sales change from prior year period |
(9)% |
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(8)% |
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Adjusted operating income (1) |
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Net income (loss) from continuing operations |
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Diluted earnings (loss) per share from continuing operations |
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Adjusted net income from continuing operations (1) |
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Adjusted earnings per share from continuing operations
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Adjusted EBITDA (1) |
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Operating Cash Flow from continuing operations |
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Free Cash Flow (2) |
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Adjusted Free Cash Flow (3) |
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Third Quarter 2025 Summary(1)(3)
-
Total reported sales of
$1.6 billion 9% versus the prior year period on a reported basis. The decrease in reported sales is largely related to lower sales in its Office Depot Division, primarily due to 63 fewer retail locations in service compared to the previous year and reduced retail and online consumer traffic, as well as lower sales in its ODP Business Solutions Division. -
GAAP operating income of
$34 million $23 million $0.72 $102 million $68 million $2.04 -
Adjusted operating income of
$38 million $41 million $62 million $70 million -
Adjusted net income from continuing operations of
$36 million $1.14 $24 million $0.71 $70 million $51 million -
Operating cash flow from continuing operations of
$90 million $89 million $81 million $68 million -
$730 million $182 million
Consolidated Results
Reported (GAAP) Results
Total reported sales for the third quarter of 2025 were
The Company reported GAAP operating income of
Adjusted (non-GAAP) Results(1)
Adjusted results for the third quarter of 2025 exclude charges and credits totaling
-
Third quarter 2025 adjusted EBITDA was
$62 million $24 million -
Third quarter 2025 adjusted operating income was
$38 million $41 million -
Third quarter 2025 adjusted net income from continuing operations was
$36 million $1.14 $24 million $0.71 61% on a per share basis
Division Results
ODP Business Solutions Division
Leading B2B distribution solutions provider serving small, medium and enterprise level companies with an annual trailing-twelve-month revenue of
-
Reported sales for the third quarter of 2025 were
$862 million 6% year-over-year. This result reflects an improvement in revenue trends compared to the prior year period, despite ongoing macroeconomic challenges and continued softness in enterprise demand. Year-over-year revenue trends improved by about 200 basis points, driven by ODP Business Solutions’ success in onboarding new customers, executing targeted sales initiatives, and generating incremental growth in hospitality sector -
Total adjacency category sales, including cleaning and breakroom, furniture, technology, and copy and print, were
45% of total ODP Business Solutions’ sales, representing an increase over the same period last year - Drove accelerated sales growth in Operating, Supplies & Equipment (OS&E) categories within the hospitality business and expanded presence in new markets helping drive increased demand for traditional product categories. Onboarded more than 600 new hotel properties as customers under the Company’s existing hospitality agreement. Made meaningful progress on potential new agreements with several leading hospitality management companies
-
Operating income was
$14 million $28 million
Office Depot Division
Leading provider of retail consumer and small business products and services distributed via Office Depot and OfficeMax retail locations and eCommerce presence.
-
Reported sales were
$749 million 13% year-over-year, reflecting an improvement over prior year trends. Sales were impacted by 63 fewer retail locations due to planned store closures, lower demand in certain product categories, and reduced online sales. Comparable store sales declined7% , an improvement versus the10% decrease in the prior year period, as targeted, profitable sales strategies gained traction. The Company closed 12 retail stores during the quarter, ending with 822 retail locations - Store and online traffic were lower year-over-year due to macroeconomic factors. However, targeted sales promotions resulted in higher average order volumes and sales per shopper, which supported top-line results and margins
-
Operating income was
$31 million $23 million 4% , increase of 140 basis points from the same period last year
Veyer Division
Nationwide supply chain, distribution, procurement and global sourcing operation supporting Office Depot and ODP Business Solutions, as well as third-party customers. Veyer’s assets and capabilities include 7 million square feet of infrastructure through a network of distribution centers, cross-docks, and other facilities throughout
-
In the third quarter of 2025, Veyer provided support for its internal customers, ODP Business Solutions and Office Depot, as well as its third-party customers, generating reported sales of
$1.1 billion -
Reported operating income was
$12 million $9 million -
In the third quarter of 2025, sales generated from third-party customers increased by
64% compared to the same period last year, resulting in sales of$23 million $7 million
Balance Sheet and Cash Flow
As of September 27, 2025, ODP had total available liquidity of
For the third quarter of 2025, cash provided by operating activities of continuing operations increased to
Capital expenditures were
“Optimize for Growth” B2B Revenue Acceleration Plan
In the third quarter of 2025, the Company advanced its “Optimize for Growth” restructuring plan, an initiative aimed at reducing fixed-cost infrastructure while leveraging core strengths to accelerate growth in B2B market segments. This includes expansion into new enterprise verticals such as hospitality, healthcare, and other adjacent sectors.
As part of this plan in the third quarter of 2025, the Company recognized
Transaction Update
As previously announced on September 22, 2025, the Company entered into a definitive agreement to be acquired, via merger (the “Merger”), by an affiliate of Atlas Holdings. The Company’s Board of Directors has unanimously approved the Merger, which the Company continues to expect will be completed by the end of 2025. The Merger is subject to customary closing conditions, including regulatory approvals and approval by the Company’s shareholders. In light of the pending Merger, the Company will not hold an earnings conference call or provide forward-looking guidance.
(1) |
As presented throughout this release, adjusted results represent non-GAAP financial measures and exclude charges or credits not indicative of core operations and the tax effect of these items, which may include but not be limited to merger integration, restructuring, acquisition costs, asset impairments, and |
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(2) |
As used in this release, Free Cash Flow is defined as cash flows from operating activities less capital expenditures and changes in restricted cash. Free Cash Flow is a non-GAAP financial measure and reconciliations from GAAP financial measures can be found in this release as well as on the Company’s Investor Relations website at investor.theodpcorp.com. |
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(3) |
As used in this release, Adjusted Free Cash Flow is defined as Free Cash Flow excluding cash charges associated with the Company’s restructuring programs, and related expenses. Adjusted Free Cash Flow is a non-GAAP financial measure and reconciliations from GAAP financial measures can be found in this release as well as on the Company’s Investor Relations website at investor.theodpcorp.com. |
About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of products, services and technology solutions through an integrated business-to-business (B2B) distribution platform and omni-channel presence, which includes supply chain and distribution operations, dedicated sales professionals, online presence, and a network of Office Depot and OfficeMax retail stores. Through its operating companies ODP Business Solutions, LLC; Office Depot, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.
ODP and ODP Business Solutions are trademarks of ODP Business Solutions, LLC. Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. Veyer is a trademark of Veyer, LLC. Grand&Toy is a trademark of Grand & Toy, LLC in
FORWARD LOOKING STATEMENTS
This communication contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended. All statements that are not statements of historical fact are forward-looking statements. Without limitation, when we use the words “believe,” “estimate,” “plan,” “expect,” “intend,” “anticipate,” “continue,” “may,” “project,” “probably,” “should,” “could,” “will” and similar expressions in this communication, we are identifying forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements appear in a number of places in this communication and include statements regarding the intent, belief, or current expectations of the Company, its directors, or its officers with respect to, among other things, the Company’s acquisition by an affiliate of Atlas Holdings, trends affecting the Company’s financial condition or results of operations, the Company’s ability to achieve its strategic plans, including the benefits related to Optimize for Growth, Project Core and other strategic restructurings or initiatives, liquidity, suppliers, consumers, customers, and employees, disruptions or inefficiencies in our supply chain, uncertainties arising from conflicts including the conflicts in
THE ODP CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited) |
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13 Weeks Ended |
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39 Weeks Ended |
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September 27, |
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September 28, |
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September 27, |
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September 28, |
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2025 |
|
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2024 |
|
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2025 |
|
|
2024 |
|
||||
Sales |
|
$ |
1,625 |
|
|
$ |
1,780 |
|
|
$ |
4,911 |
|
|
$ |
5,367 |
|
Cost of goods and occupancy costs |
|
|
1,294 |
|
|
|
1,416 |
|
|
|
3,910 |
|
|
|
4,252 |
|
Gross profit |
|
|
331 |
|
|
|
364 |
|
|
|
1,001 |
|
|
|
1,115 |
|
Selling, general and administrative expenses |
|
|
293 |
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|
|
323 |
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|
|
884 |
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|
974 |
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Asset impairments |
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8 |
|
|
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7 |
|
|
|
49 |
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21 |
|
Merger and restructuring (income) expenses, net |
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(4 |
) |
|
|
2 |
|
|
|
57 |
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|
|
47 |
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Legal matter monetization |
|
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— |
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(70 |
) |
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— |
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|
(70 |
) |
Operating income |
|
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34 |
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|
|
102 |
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|
|
11 |
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|
143 |
|
Other income (expense): |
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Interest income |
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3 |
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2 |
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|
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8 |
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7 |
|
Interest expense |
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(6 |
) |
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(6 |
) |
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(19 |
) |
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|
(16 |
) |
Other income (expense), net |
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|
— |
|
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
Income (loss) from continuing operations before income taxes |
|
|
31 |
|
|
|
95 |
|
|
|
(6 |
) |
|
|
130 |
|
Income tax expense (benefit) |
|
|
8 |
|
|
|
27 |
|
|
|
— |
|
|
|
35 |
|
Net income (loss) from continuing operations |
|
|
23 |
|
|
|
68 |
|
|
|
(6 |
) |
|
|
95 |
|
Discontinued operations, net of tax |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(95 |
) |
Net income (loss) |
|
$ |
23 |
|
|
$ |
58 |
|
|
$ |
(6 |
) |
|
$ |
— |
|
Basic earnings (loss) per share |
|
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|
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||||
Continuing operations |
|
$ |
0.75 |
|
|
$ |
2.06 |
|
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$ |
(0.21 |
) |
|
$ |
2.72 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
|
|
(2.71 |
) |
Net basic earnings (loss) per share |
|
$ |
0.75 |
|
|
$ |
1.75 |
|
|
$ |
(0.21 |
) |
|
$ |
0.01 |
|
Diluted earnings (loss) per share |
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Continuing operations |
|
$ |
0.72 |
|
|
$ |
2.04 |
|
|
$ |
(0.21 |
) |
|
$ |
2.65 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.31 |
) |
|
|
— |
|
|
|
(2.64 |
) |
Net diluted earnings (loss) per share |
|
$ |
0.72 |
|
|
$ |
1.73 |
|
|
$ |
(0.21 |
) |
|
$ |
0.01 |
|
THE ODP CORPORATION CONSOLIDATED BALANCE SHEETS (In millions, except shares and par value) |
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September 27, |
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December 28, |
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2025 |
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2024 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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|
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Cash and cash equivalents |
|
$ |
182 |
|
|
$ |
166 |
|
Receivables, net |
|
|
474 |
|
|
|
466 |
|
Inventories |
|
|
699 |
|
|
|
770 |
|
Prepaid expenses and other current assets |
|
|
30 |
|
|
|
30 |
|
Current assets held for sale |
|
|
6 |
|
|
|
6 |
|
Total current assets |
|
|
1,391 |
|
|
|
1,438 |
|
Property and equipment, net |
|
|
252 |
|
|
|
299 |
|
Operating lease right-of-use assets |
|
|
803 |
|
|
|
954 |
|
Goodwill |
|
|
412 |
|
|
|
411 |
|
Other intangible assets, net |
|
|
45 |
|
|
|
48 |
|
Deferred income taxes |
|
|
109 |
|
|
|
102 |
|
Other assets |
|
|
267 |
|
|
|
277 |
|
Total assets |
|
$ |
3,279 |
|
|
$ |
3,529 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
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|
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Current liabilities: |
|
|
|
|
|
|
||
Trade accounts payable |
|
$ |
685 |
|
|
$ |
697 |
|
Accrued expenses and other current liabilities |
|
|
833 |
|
|
|
835 |
|
Income taxes payable |
|
|
2 |
|
|
|
2 |
|
Short-term borrowings and current maturities of long-term debt |
|
|
7 |
|
|
|
9 |
|
Total current liabilities |
|
|
1,527 |
|
|
|
1,543 |
|
Deferred income taxes and other long-term liabilities |
|
|
132 |
|
|
|
116 |
|
Pension and postretirement obligations, net |
|
|
15 |
|
|
|
14 |
|
Long-term debt, net of current maturities |
|
|
141 |
|
|
|
270 |
|
Operating lease liabilities, net of current portion |
|
|
641 |
|
|
|
779 |
|
Total liabilities |
|
|
2,456 |
|
|
|
2,722 |
|
Contingencies |
|
|
|
|
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|
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Stockholders’ equity: |
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|
|
|
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|
||
Common stock — authorized 80,000,000 shares of |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
2,787 |
|
|
|
2,771 |
|
Accumulated other comprehensive loss |
|
|
(118 |
) |
|
|
(124 |
) |
Accumulated deficit |
|
|
(321 |
) |
|
|
(315 |
) |
Treasury stock, at cost — 37,599,156 shares at September 27, 2025 and December 28, 2024 |
|
|
(1,526 |
) |
|
|
(1,526 |
) |
Total stockholders’ equity |
|
|
823 |
|
|
|
807 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,279 |
|
|
$ |
3,529 |
|
THE ODP CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
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39 Weeks Ended |
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September 27, |
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September 28, |
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|
2025 |
|
|
2024 |
|
||
Cash flows from operating activities: |
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|
|
|
|
|
||
Net income (loss) |
|
$ |
(6 |
) |
|
$ |
— |
|
Loss from discontinued operations, net of tax |
|
|
— |
|
|
|
(95 |
) |
Net income (loss) from continuing operations |
|
|
(6 |
) |
|
|
95 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
79 |
|
|
|
73 |
|
Amortization of debt discount and issuance costs |
|
|
1 |
|
|
|
1 |
|
Charges for losses on receivables and inventories |
|
|
15 |
|
|
|
17 |
|
Asset impairments |
|
|
49 |
|
|
|
21 |
|
Gain on disposition of assets, net |
|
|
(17 |
) |
|
|
(1 |
) |
Compensation expense for share-based payments |
|
|
19 |
|
|
|
23 |
|
Deferred income taxes and deferred tax asset valuation allowances |
|
|
(7 |
) |
|
|
13 |
|
Changes in working capital and other operating activities |
|
|
30 |
|
|
|
(117 |
) |
Net cash provided by operating activities of continuing operations |
|
|
163 |
|
|
|
125 |
|
Net cash used in operating activities of discontinued operations |
|
|
— |
|
|
|
(23 |
) |
Net cash provided by operating activities |
|
|
163 |
|
|
|
102 |
|
Cash flows from investing activities: |
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|
|
|
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|
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Capital expenditures |
|
|
(45 |
) |
|
|
(72 |
) |
Businesses acquired, net of cash acquired |
|
|
— |
|
|
|
(11 |
) |
Proceeds from disposition of assets |
|
|
24 |
|
|
|
1 |
|
Settlement of company-owned life insurance policies |
|
|
19 |
|
|
|
4 |
|
Net cash used in investing activities of continuing operations |
|
|
(2 |
) |
|
|
(78 |
) |
Net cash used in investing activities of discontinued operations |
|
|
(2 |
) |
|
|
(7 |
) |
Net cash used in investing activities |
|
|
(4 |
) |
|
|
(85 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments on credit facilities and debt retirement |
|
|
(713 |
) |
|
|
(450 |
) |
Borrowings under credit facilities |
|
|
585 |
|
|
|
520 |
|
Net payments on other long and short-term borrowings |
|
|
(9 |
) |
|
|
(8 |
) |
Share purchases for taxes, net of proceeds from employee share-based transactions |
|
|
(2 |
) |
|
|
(15 |
) |
Repurchase of common stock for treasury |
|
|
(3 |
) |
|
|
(254 |
) |
Other financing activities |
|
|
(2 |
) |
|
|
(7 |
) |
Net cash used in financing activities of continuing operations |
|
|
(144 |
) |
|
|
(214 |
) |
Net cash used in financing activities of discontinued operations |
|
|
— |
|
|
|
— |
|
Net cash used in financing activities |
|
|
(144 |
) |
|
|
(214 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
1 |
|
|
|
(1 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
16 |
|
|
|
(198 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
171 |
|
|
|
395 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
187 |
|
|
$ |
197 |
|
Supplemental information on non-cash investing and financing activities |
|
|
|
|
|
|
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Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
63 |
|
|
$ |
202 |
|
Right-of-use assets obtained in exchange for new finance lease liabilities |
|
|
6 |
|
|
|
9 |
|
Interest paid |
|
|
18 |
|
|
|
13 |
|
Cash taxes paid, net |
|
|
15 |
|
|
|
14 |
|
THE ODP CORPORATION BUSINESS UNIT PERFORMANCE (In millions) (Unaudited) |
||||
ODP Business Solutions Division |
3Q25 |
3Q24 |
YTD25 |
YTD24 |
Sales (external) |
|
|
|
|
Sales (internal) |
|
|
|
|
% change of total sales |
(6)% |
(8)% |
(7)% |
(8)% |
Division operating income |
|
|
|
|
% of total sales |
|
|
|
|
Office Depot Division |
3Q25 |
3Q24 |
YTD25 |
YTD24 |
Sales (external) |
|
|
|
|
Sales (internal) |
|
|
|
|
% change of total sales |
(13)% |
(15)% |
(12)% |
(14)% |
Division operating income |
|
|
|
|
% of total sales |
|
|
|
|
Change in comparable store sales |
(7)% |
(10)% |
(6)% |
(9)% |
Veyer Division |
3Q25 |
3Q24 |
YTD25 |
YTD24 |
Sales (external) |
|
|
|
|
Sales (internal) |
|
|
|
|
% change of total sales |
(11)% |
(10)% |
(9)% |
(11)% |
Division operating income |
|
|
|
|
% of total sales |
|
|
|
|
THE ODP CORPORATION
GAAP to Non-GAAP Reconciliations
(Unaudited)
We report our results in accordance with accounting principles generally accepted in
Our measurement of these non-GAAP financial measures may be different from similarly titled financial measures used by others and therefore may not be comparable. These non-GAAP financial measures should not be considered superior to the GAAP measures, but only to clarify some information and assist the reader. We have included reconciliations of this information to the most comparable GAAP measures in the tables included within this material.
Free cash flow is a non-GAAP measure, which we define as cash flows from operating activities less capital expenditures and changes in restricted cash. We believe that free cash flow is an important indicator that provides additional perspective on our ability to generate cash to fund our strategy and expand our distribution network. Adjusted free cash flow is also a non-GAAP measure, which we define as free cash flow excluding cash charges and credits not indicative of core operations. For this release these cash charges and credits include transaction and integration costs mainly associated with the Atlas Holdings Acquisition and restructuring costs associated with Optimize for Growth, Project Core, and Maximize B2B programs.
(In millions, except per share amounts) |
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Q3 2025 |
|
Reported
|
|
|
% of
|
|
|
Less:
|
|
|
Adjusted
|
|
|
% of
|
|
|||||
Asset impairments |
|
$ |
8 |
|
|
|
0.5 |
% |
|
$ |
8 |
|
|
$ |
— |
|
|
|
— |
% |
Merger and restructuring income, net |
|
$ |
(4 |
) |
|
|
(0.2 |
)% |
|
$ |
(4 |
) |
|
$ |
— |
|
|
|
— |
% |
Operating income |
|
$ |
34 |
|
|
|
2.1 |
% |
|
$ |
(4 |
) |
|
$ |
38 |
|
(4) |
|
2.3 |
% |
Income tax expense (benefit) |
|
$ |
8 |
|
|
|
0.5 |
% |
|
$ |
9 |
|
|
$ |
(1 |
) |
(5) |
|
(0.1 |
)% |
Net income from continuing operations |
|
$ |
23 |
|
|
|
1.4 |
% |
|
$ |
(13 |
) |
|
$ |
36 |
|
(6) |
|
2.2 |
% |
Earnings per share from continuing operations (fully diluted) |
|
$ |
0.72 |
|
|
|
|
|
$ |
(0.42 |
) |
|
$ |
1.14 |
|
(6) |
|
|
||
Q3 2024 |
|
Reported
|
|
|
% of
|
|
|
Less:
|
|
|
Adjusted
|
|
|
% of
|
|
|||||
Asset impairments |
|
$ |
7 |
|
|
|
0.4 |
% |
|
$ |
7 |
|
|
$ |
— |
|
|
|
— |
% |
Merger and restructuring expenses, net |
|
$ |
2 |
|
|
|
0.1 |
% |
|
$ |
2 |
|
|
$ |
— |
|
|
|
— |
% |
Legal matter monetization |
|
$ |
(70 |
) |
|
|
(3.9 |
)% |
|
$ |
(70 |
) |
|
$ |
— |
|
|
|
— |
% |
Operating income |
|
$ |
102 |
|
|
|
5.7 |
% |
|
$ |
61 |
|
|
$ |
41 |
|
(4) |
|
2.3 |
% |
Income tax expense |
|
$ |
27 |
|
|
|
1.5 |
% |
|
$ |
16 |
|
|
$ |
11 |
|
(5) |
|
0.6 |
% |
Net income from continuing operations |
|
$ |
68 |
|
|
|
3.8 |
% |
|
$ |
45 |
|
|
$ |
24 |
|
(6) |
|
1.3 |
% |
Earnings per share from continuing operations (fully diluted) |
|
$ |
2.04 |
|
|
|
|
|
$ |
1.33 |
|
|
$ |
0.71 |
|
(6) |
|
|
||
YTD 2025 |
|
Reported
|
|
|
% of
|
|
|
Less:
|
|
|
Adjusted
|
|
|
% of
|
|
|||||
Asset impairments |
|
$ |
49 |
|
|
|
1.0 |
% |
|
$ |
49 |
|
|
$ |
— |
|
|
|
— |
% |
Merger and restructuring expenses, net |
|
$ |
57 |
|
|
|
1.2 |
% |
|
$ |
57 |
|
|
$ |
— |
|
|
|
— |
% |
Operating income |
|
$ |
11 |
|
|
|
0.2 |
% |
|
$ |
(106 |
) |
|
$ |
117 |
|
(4) |
|
2.4 |
% |
Income tax expense (benefit) |
|
$ |
— |
|
|
|
— |
% |
|
$ |
(17 |
) |
|
$ |
17 |
|
(5) |
|
0.3 |
% |
Net income (loss) from continuing operations |
|
$ |
(6 |
) |
|
|
(0.1 |
)% |
|
$ |
(89 |
) |
|
$ |
83 |
|
(6) |
|
1.7 |
% |
Earnings (loss) per share from continuing operations (fully diluted) |
|
$ |
(0.21 |
) |
|
|
|
|
$ |
(2.92 |
) |
|
$ |
2.71 |
|
(6) |
|
|
||
Depreciation and amortization |
|
$ |
79 |
|
|
|
1.6 |
% |
|
$ |
6 |
|
|
$ |
73 |
|
(7) |
|
1.5 |
%
|
YTD 2024 |
|
Reported
|
|
|
% of
|
|
|
Less:
|
|
|
Adjusted
|
|
|
% of
|
|
|||||
Asset impairments |
|
$ |
21 |
|
|
|
0.4 |
% |
|
$ |
21 |
|
|
$ |
— |
|
|
|
— |
% |
Merger and restructuring expenses, net |
|
$ |
47 |
|
|
|
0.9 |
% |
|
$ |
47 |
|
|
$ |
— |
|
|
|
— |
% |
Legal matter monetization |
|
$ |
(70 |
) |
|
|
(1.3 |
)% |
|
$ |
(70 |
) |
|
$ |
— |
|
|
|
— |
% |
Operating income |
|
$ |
143 |
|
|
|
2.7 |
% |
|
$ |
2 |
|
|
$ |
141 |
|
(4) |
|
2.6 |
% |
Income tax expense |
|
$ |
35 |
|
|
|
0.7 |
% |
|
$ |
1 |
|
|
$ |
34 |
|
(5) |
|
0.6 |
% |
Net income from continuing operations |
|
$ |
95 |
|
|
|
1.8 |
% |
|
$ |
1 |
|
|
$ |
94 |
|
(6) |
|
1.8 |
% |
Earnings per share from continuing operations (fully diluted) |
|
$ |
2.65 |
|
|
|
|
|
$ |
0.04 |
|
|
$ |
2.61 |
|
(6) |
|
|
||
|
|
13 Weeks Ended |
|
|
39 Weeks Ended |
|
||||||||||
|
|
September 27, |
|
|
September 28, |
|
|
September 27, |
|
|
September 28, |
|
||||
Adjusted EBITDA: |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income (loss) |
|
$ |
23 |
|
|
$ |
58 |
|
|
$ |
(6 |
) |
|
$ |
— |
|
Discontinued operations, net of tax |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(95 |
) |
Net income (loss) from continuing operations |
|
|
23 |
|
|
|
68 |
|
|
|
(6 |
) |
|
|
95 |
|
Income tax expense (benefit) |
|
|
8 |
|
|
|
27 |
|
|
|
— |
|
|
|
35 |
|
Income (loss) from continuing operations before income taxes |
|
|
31 |
|
|
|
95 |
|
|
|
(6 |
) |
|
|
130 |
|
Add (subtract) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
(3 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(7 |
) |
Interest expense |
|
|
6 |
|
|
|
6 |
|
|
|
19 |
|
|
|
16 |
|
Adjusted depreciation and amortization (7) |
|
|
24 |
|
|
|
24 |
|
|
|
73 |
|
|
|
73 |
|
Charges and credits, pretax (8) |
|
|
4 |
|
|
|
(61 |
) |
|
|
106 |
|
|
|
(2 |
) |
Adjusted EBITDA |
|
$ |
62 |
|
|
$ |
62 |
|
|
$ |
184 |
|
|
$ |
210 |
|
Amounts may not foot due to rounding. The sum of the quarterly amounts may not equal the reported amounts for the year due to rounding. |
||
|
|
|
(4) |
Adjusted operating income for all periods presented herein exclude merger and restructuring expenses, net, asset impairments, and legal matter monetization (if any). |
|
(5) |
Adjusted income tax expense for all periods presented herein exclude the tax effect of the charges or credits not indicative of core operations as described in the preceding notes. |
|
(6) |
Adjusted net income and adjusted earnings per share (fully diluted) for all periods presented exclude merger and restructuring expenses, net, asset impairments, legal matter monetization (if any), and exclude the tax effect of the charges or credits not indicative of core operations. |
|
(7) |
Adjusted depreciation and amortization represents a non-GAAP measure and excludes accelerated depreciation caused by updating the salvage value and shortening the useful life of depreciable fixed assets to coincide with the planned store closures under an approved restructuring plan, but only if impairment is not present. Accelerated depreciation charges are restructuring expenses and included in the Charges and credits, pretax line item. |
|
(8) |
Charges and credits, pretax for all periods presented include merger and restructuring expenses, net, asset impairments, and legal matter monetization (if any). |
|
THE ODP CORPORATION GAAP to Non-GAAP Reconciliations (Unaudited) |
||||||||||||||||
|
|
13 Weeks Ended |
|
|
39 Weeks Ended |
|
||||||||||
|
|
September 27, |
|
|
September 28, |
|
|
September 27, |
|
|
September 28, |
|
||||
Free cash flow |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net cash provided by operating activities of continuing operations |
|
$ |
90 |
|
|
$ |
81 |
|
|
$ |
163 |
|
|
$ |
125 |
|
Capital expenditures |
|
|
(12 |
) |
|
|
(22 |
) |
|
|
(45 |
) |
|
|
(72 |
) |
Change in restricted cash impacting working capital |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Free cash flow |
|
|
78 |
|
|
|
58 |
|
|
|
118 |
|
|
|
51 |
|
Adjustments for certain cash charges: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Atlas Holdings Acquisition |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Optimize for Growth |
|
|
6 |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
Project Core |
|
|
1 |
|
|
|
9 |
|
|
|
5 |
|
|
|
33 |
|
Maximize B2B Restructuring Plan |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
6 |
|
Adjusted free cash flow |
|
$ |
89 |
|
|
$ |
68 |
|
|
$ |
147 |
|
|
$ |
90 |
|
Amounts may not foot due to rounding. The sum of the quarterly amounts may not equal the reported amounts for the year due to rounding. |
THE ODP CORPORATION Store Statistics (Unaudited) |
||||||||||||
|
|
Q3 |
|
|
Q3 |
|
|
YTD |
|
|||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|||
Office Depot Division: |
|
|
|
|
|
|
|
|
|
|||
Stores closed |
|
|
12 |
|
|
|
9 |
|
|
|
47 |
|
Total retail stores ( |
|
|
822 |
|
|
|
885 |
|
|
|
— |
|
Total square footage (in millions) |
|
|
18.2 |
|
|
|
19.6 |
|
|
|
— |
|
Average square footage per store (in thousands) |
|
|
22.1 |
|
|
|
22.1 |
|
|
|
— |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251105156942/en/
Tim Perrott
Investor Relations
561-438-4629
Tim.Perrott@theodpcorp.com
Source: The ODP Corporation
