Office products, services and technology solutions platform ODP Corporation reported its 2025 second quarter financial results on Aug. 6, attributing its decline in sales year-over-year to lower sales in its Office Depot Division and Business Solutions Division.

ODP Business Solutions Division

ODP Business Solutions Division — a B2B distributor of office supplies — reported second quarter sales of $859 million, down 6.0% year-over-year. ODP said the sales decrease reflects an improvement in revenue trends, despite ongoing macroeconomic challenges and continued softness in enterprise demand.

Meanwhile, sequential and year-over-year sales trends improved by 200 basis points, attributed to onboarding new customers, executing targeted sales initiatives and generating incremental growth in hospitality categories.

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Operating profit of $18 million was down compared to 2Q24’s $29 million. Second quarter EBITDA was $24 million, or 3.0% as a percentage of sales.

“In our B2B distribution business, we achieved approximately a 200-basis point improvement in year-over-year revenue trends, driven by stronger sales traction with new customers and early contributions from our expansion into the hospitality sector,” ODP Corp. CEO Gerry Smith said in the company’s financial release. “Sales trends improved month over month throughout the quarter, improving our position as we head into the second half of the year.”

Office Depot Division

ODP Corporation’s Office Depot Division reported sales of $716 million in 2Q25, down 10.0% year-over-year. Comparable store sales declined by 5.0%, an improvement compared to 2Q24’s down 7.0%.

The Office Depot Division closed 23 retail stores during the quarter, ending with 834 retail locations.

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Operating income of $12 million was down compared to 2Q24’s $17 million, driven predominantly by the flow through impact from fewer stores in service and lower sales volume. Operating income was 2.0% as a percentage of sales, and flat compared to 2Q24.

Overall

Florida-based ODP Corp. reported total sales of $1.6 billion, down 8.0% year-over-year. The company said the decline was largely due to lower sales in its Office Depot Division, primarily due to 60 fewer retail locations in service compared to previous year and reduced retail and online consumer traffic, as well as lower sales in its ODP Business Solutions Division.

Adjusted operating income of $25 million declined from 2Q24’s $33 million, while adjusted EBITDA of $47 million likewise declined from $57 million.

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Gross profit of $310 million declined from 2Q24’s $342 million. Adjusted net income from continuing operations of $15 million declined from $20 million in the same period a year prior.

Smith added: “As we look to the second half of the year, we remain confident in our ability to drive continued improvement and value creation. We expect continued strength in performance in our consumer segment while driving improved revenue trends in our B2B distribution business, as we continue to onboard new customers and begin to penetrate the hospitality segment. Additionally, with our strong focus on cash, we expect to generate significantly higher adjusted free cash flow versus last year, further strengthening our foundation and balance sheet. We remain committed to executing our core strategy and delivering long-term shareholder value.”

Hospitality Expansion

• In its 2Q25 financials presentation, ODP Corp. provided an update on its expansion into the hospitality sector. Recent actions ODP highlighted on this front include:
• Leveraging partnership with leading hotel management company featuring over 15k members and agreements with key suppliers
• Building inventory; Added sales talent with proven experience in Hospitality
• Broadening launch of Operating Supplies & Equipment (“OS&E”) product offering; Onboarded 1,000 properties; Positive customer reception
• Building revenue momentum in Q2; Positive impact to overall sales (traditional & hospitality categories)
• In discussions with other leading hotel management companies; Expecting to sign additional agreements this year