The ODP Corporation delivers essential business services, supplies, products, and advanced digital workplace technology solutions to a diverse clientele, encompassing small, medium, ...
The ODP Corporation (doing business as Office Depot, with additional legacy brands such as OfficeMax and Grand&Toy) serves business customers and consumers by combining brick-and-mortar retail with a business-to-business (B2B) solutions model. The company is organized into two primary divisions. Business Solutions focuses on supplying and supporting business customers with ...The ODP Corporation (doing business as Office Depot, with additional legacy brands such as OfficeMax and Grand&Toy) serves business customers and consumers by combining brick-and-mortar retail with a business-to-business (B2B) solutions model. The company is organized into two primary divisions. Business Solutions focuses on supplying and supporting business customers with office supplies, janitorial/breakroom consumables, technology services, printing and copying solutions, and office furniture—delivered via direct sales, catalogs/telemarketing, and online channels across the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The Retail division operates a large chain of physical stores offering general office supplies, technology products and solutions, business machines and consumables, facilities management items (including cleaning and breakroom supplies), furniture, and store services such as printing, copying, mailing, and shipping.
From a product and service perspective, ODP’s “BOM-like” value chain is oriented around high-frequency replenishment categories (paper, ink/toner, cleaning and breakroom supplies, and facility consumables) paired with serviceable, revenue-mixed offerings (print/copy/mail services, managed or assisted technology support, and furniture procurement/servicing). In practice, this means inventory, procurement, and logistics disciplines are central to performance: demand planning for consumables and office supplies, vendor negotiations, and replenishment efficiency materially influence gross margin and working capital needs. The company’s public financial snapshot (TTM) reflects typical specialty retail dynamics, including modest margins (e.g., low operating/EBIT margins) and cash-flow sensitivity (e.g., free cash flow yield and operating cash flow coverage metrics), alongside working-capital intensity (inventory and receivables/payables levels).
Economically, ODP’s market valuation has been characterized by relatively low price-to-sales and cash-flow/earnings-related multiples (with some measures depressed due to earnings pressure in the TTM snapshot), indicating that investors often underwrite the turnaround potential and cash-generation capacity while monitoring balance-sheet strength and leverage.
Key leadership has included Gerry Smith as CEO (with leadership updates indicating he resumed the CEO role effective February 1, 2024). ODP is headquartered in Boca Raton, Florida, and operates in the specialty retail industry under the NASDAQ Global Select listing. Overall, the company’s strategy blends distribution scale and brand recognition in office products with technology and managed services, aiming to drive loyalty and recurring demand through both retail convenience and B2B solution delivery.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$7.0B
-10.6%
+2.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-3.0M
-102.2%
—
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+20.7%
-8.2%
+4.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.3%
-44.7%
+268.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-0.0%
-102.4%
—
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$32.0M
-85.8%
+1850.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+0.5%
-84.2%
+1803.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
163.8%
+87.3%
-18.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.93x
-6.0%
-3.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to the ODP Corporation's Second Quarter 2025 Earnings Conference Call. [Operator Instructions] At the request of the ODP Corporation, today's call is being recorded. I would like to introduce Tim Perrott, Vice President, Investor Relations and Treasurer. Mr. Perrott, you may now begin.
Timothy J. Perrott: Good morning, and thank you for joining us for the ODP Corporation's Second Quarter 2025 Earnings Conference Call. This is Tim Perrott, and I'm here with Gerry Smith, our CEO. Also joining us on the call today are Max Hood and Adam Haggard, our Co-CFOs. During today's call, Gerry will provide an update on the business, focusing much of his commentary on our results and accomplishments for the second quarter of 2025, including the progress we are making on our strategy and our expansion into higher- growth industry sectors. After Gerry's commentary, Max will then review the company's results for the quarter, including highlights of our divisional performance, followed by Adam, who will highlight our balance sheet and outlook. Following our comments, we will then open up the line for your questions. Before we begin, I need to inform you that certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the company's current expectations concerning future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially. A detailed discussion of these risks and uncertainties are contained in the company's filings with the U.S. Securities and Exchange Commission. During the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release, presentation slides that accompany today's comments and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are all available on our website at investor.theodpcorp.com. Today's call and slide presentation is being simulcast on our website and will be archived there for at least 1 year. I'll now turn the call over to Gerry Smith. Gerry?
Gerry P. Smith: Thank you, Tim, and good morning, everyone. I'd like to start by thanking everyone for joining our call today to review our results and accomplishments for the second quarter of 2025. As always, we appreciate your continued interest and support as we execute our strategy and position ODP for long-term growth. This morning, I'll provide an overview of our improved performance in the quarter and highlight the progress we are making on our overall strategy. As I cover our performance, I want to focus on a few key takeaways that I think reflect our progress and provide context for our results. These key points are shown on Slide 4 of the presentation. To start, our results this quarter clearly demonstrate …
