ODP, the office supply and business solutions company behind Office Depot and OfficeMax, reported its fiscal Q2 2025 earnings on August 6, 2025. The company’s adjusted earnings per share (EPS) came in at $0.51, exceeding analyst expectations by $0.15. Revenue of $1,586 million exceeded the average estimate of $1,591.7 million but fell from $1,717 million in the same period last year. Despite lower sales and profits, operational improvements and margin stabilization stood out this quarter. These results reflect progress in both its Consumer (Office Depot) and Business-to-Business (ODP Business Solutions and Veyer) divisions, even as the company faces continued pressure in traditional office supply markets and enterprise spending.

Revenue declined 8% from the prior year quarter, but the drop in sales is moderating. Adjusted earnings per share (Non-GAAP) were down 8.9% year over year, but they exceeded estimates by a wide margin. Adjusted EBITDA, a non-GAAP measure of operating performance before certain expenses, also fell year over year but showed evidence of operational discipline amid lower sales.

The B2B ODP Business Solutions division had sales of $859 million, down 6% from a year ago. The company onboarded roughly 1,000 new hotel customers through its hospitality vertical, pointing to growth outside core office supply categories. Total adjacency category sales, including cleaning and breakroom, furniture, technology, and copy and print, were 45% of total ODP Business Solutions’ sales, up from 44% in the same period last year. However, onboarding of some larger B2B contracts is taking longer than hoped, delaying the full benefit of these wins.

The Office Depot consumer segment recorded $716 million in sales, a 10% year-over-year drop in sales for the Office Depot Division. This decline was mostly attributed to 60 fewer stores and lighter retail and online traffic. Comparable store sales fell 5%, a slower pace than last year’s 7% drop in comparable store sales for fiscal Q2 2024. Management credits a new “gamified” daily performance system in stores with helping drive improvement.

On the technology and product front, ODP notes that investment is concentrated on B2B growth and digital transformation. Its nationwide supply chain enables next-day delivery to over 98.5% of the U.S. population, an advantage as it grows in adjacent verticals such as hospitality and logistics.

Source: ODP Corporation
Source: Globe and Mail