ODP Group LLC

Latest Report Overview

ODP Group LLC $ODP reported revenue of $1.625 billion for the third quarter ended September 27, 2025, representing an 8.7% decline year-over-year. Net income for the quarter was $23 million, down from $58 million in the prior-year period, with operating income reported at $34 million compared to $102 million in Q3 2024. The results reflect significant ongoing restructuring and asset impairment charges as the company implements its 'Optimize for Growth' plan. Business performance was characterized by contraction across major segments, driven by both market trends and strategic store closures. Sales in the ODP Business Solutions segment declined, reflecting lower demand, while the Office Depot retail segment saw reduced volume as part of a managed footprint reduction. The company's supply chain division, Veyer, continues to provide critical logistics support, though profitability was impacted by lower internal demand from the retail division. Management has focused on executing the 'Optimize for Growth' restructuring plan, which includes closing retail stores and distribution facilities through 2028 to reduce fixed costs. Additionally, the company announced on September 22, 2025, that it has entered into a definitive agreement to be acquired by an affiliate of Atlas Holdings, with the transaction expected to close before the end of 2025. The company remains committed to disciplined capital allocation while navigating this transition period.

Key Takeaways for ODP Group LLC

• ODP entered into a definitive merger agreement to be acquired by an affiliate of Atlas Holdings for $28.00 per share in cash, with closing expected before the end of 2025.
• Revenue declined 8.7% YoY to $1.625 billion in Q3 2025, reflecting persistent secular headwinds in retail and business supplies.
• The 'Optimize for Growth' restructuring plan continues, resulting in the closure of 12 retail stores in Q3 2025 and 44 year-to-date; the plan targets $185M-$230M in cash costs to reduce retail/distribution footprint.
• The Varis digital division, previously a growth-oriented business unit, was sold in October 2024 and is now classified as discontinued operations, with ODP retaining a 19.9% interest.
• Profitability is under pressure, with operating income falling to $34M in Q3 2025 from $102M in Q3 2024, largely due to lower volume and restructuring-related costs.
• Operating cash flow remains positive at $163M YTD 2025, supporting the company's ability to fund restructuring activities and capital investment.

What Does ODP Group LLC Do?

ODP Group LLC is a leading provider of B2B distribution solutions, retail office products, and supply chain services. The company operates through three primary segments: ODP Business Solutions (B2B distribution solutions for small, medium, and enterprise customers), Office Depot (an omni-channel retail network of 822 stores and e-commerce presence), and Veyer (a supply chain, procurement, and global sourcing operation). ODP's business model leverages an integrated platform that includes a dedicated B2B sales force, retail stores for consumer and small business needs, and a robust logistics and supply chain network. The company serves a diverse customer base ranging from enterprise-level corporations and government entities to small businesses and individual consumers, primarily across North America.