ODP Corporation Reports 8% Revenue Decline and Net Loss in Q2 and First Half of 2025

The ODP Corporation reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the 13 weeks ended June 28, 2025, the company generated sales of $1.586 billion, a decrease of 8% from $1.717 billion in the same period last year. The first half of 2025 saw total sales of $3.286 billion, down from $3.586 billion in the prior year, marking an overall decline of 8%. The company recorded a net loss of $29 million for the first half of 2025, compared to a net income of $27 million during the same period in 2024. The basic loss per share from continuing operations was $(0.97), a significant drop from earnings of $0.75 in the first half of 2024.

The decline in revenue was attributed to reduced demand across various product categories, particularly in the ODP Business Solutions and Office Depot divisions. The ODP Business Solutions Division experienced a 6% decrease in sales, primarily due to lower spending from business customers, while the Office Depot Division's sales fell by 10%, largely due to planned store closures and decreased demand at retail locations and online. The Veyer Division, however, reported a 90% increase in external sales, contributing $19 million in the second quarter, which partially offset the declines in other divisions.

Strategically, ODP has been implementing a restructuring plan called "Optimize for Growth," aimed at realigning its operations to focus on higher growth opportunities in the business-to-business market. This plan includes closing underperforming retail stores and distribution facilities, which has already resulted in the closure of 23 retail stores in the second quarter of 2025. The company anticipates total cash restructuring costs related to this initiative to be between $185 million and $230 million, with a significant portion allocated to facility closures and employee severance.

Operationally, ODP's total assets decreased to $3.401 billion as of June 28, 2025, down from $3.529 billion at the end of 2024. The company maintained a cash balance of $177 million and had $481 million available under its credit facility, providing a total liquidity of $658 million. The company did not repurchase any shares during the second quarter and first half of 2025, with $725 million remaining available under its stock repurchase program. Looking ahead, ODP expects continued challenges due to macroeconomic conditions affecting consumer and business spending, but remains focused on executing its strategic initiatives to drive future growth.