📈 Price History

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📊 Sector Averages

About

Stagwell Inc. provides digital transformation, marketing, media and commerce, marketing cloud, and communications services in the United States, the United Kingdom, and internationally.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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🎙 Management Tone Confident Specific → Stable 2 quarters Full tone analysis in Intelligence →

📊 MIXED Stagwell: Record Q1 new business, AI product sales, government contract, aggressive buybacks.

Revenue & Profitability

Revenue grew 8% year-over-year to $704 million, and net revenue grew 3.6% to $585 million. Adjusted EBITDA was $89.7 million, up 9% from last year, with a margin of 15.3%. Adjusted EPS was $0.17, a 31% increase year-over-year. Free cash flow improved by $34 million versus Q1 2025. Net leverage stood at 3.11x at quarter end.

Outlook

Management expects accelerating growth in the second half driven by an advocacy supercycle (political season), AI adoption, and expanded client wins. The Middle East conflict has only a minor impact (3% of business), and no client pullback from marketing plans has been observed. The company sees strong demand for AI tools and political spending as tailwinds.

Growth Drivers

Key growth levers include the Digital Transformation segment (9% growth in Q1, expected to accelerate to mid-teens in H2), record net new business of $141 million in Q1 (LTM $486 million), AI product sales ($12 million booked toward a $25 million first-year goal), and the political supercycle. U.S. organic net revenue growth was over 8% in Q1. Government contracts are also a new growth stream.

Balance Sheet & CapEx

Capital expenditures and capitalized software totaled $33 million in Q1. Full-year investment levels are expected to be consistent with 2025. Investments are focused on AI and technology platforms, including The Machine, the Palantir partnership, and Marketing Cloud offerings.

Margins

Adjusted EBITDA margin improved 75 basis points year-over-year to 15.3%. Payroll as a percentage of net revenue declined 110 bps to 63.9%, and G&A declined 50 bps to 19.6%. Cost savings initiatives are on track, with $54 million actioned toward the $80-$100 million target.

Key Risks

Risks flagged include potential temporary slowdowns in Middle East tourism and technology due to regional conflicts (about 3% of business), a strengthening dollar impacting international results, and small client churn (though improving). The political supercycle is expected to be a tailwind, but timing could affect quarterly phasing.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-30

Second quarter saw record organic growth, margin expansion, and strong new business wins, led by digital transformation and communications. Raised full-year EPS guidance, with growth expected to remain overwhelmingly organic and supported by AI-driven solutions.

Q1 2026 Q1 2026 2026-04-30

Record Q1 net new business and revenue growth were driven by strong Digital Transformation and new enterprise tech products. Margin expansion, reduced leverage, and aggressive share buybacks boosted EPS by 31%. Guidance for double-digit growth in H2 is reaffirmed.

Q4 2025 Q4 2025 2026-03-10

Delivered record revenue and net new business in 2025, with strong growth in digital transformation and marketing cloud. 2026 guidance calls for 8%-12% net revenue growth, higher margins, and aggressive share buybacks amid industry consolidation and rising demand for AI-driven solutions.

Q3 2025 Q3 2025 2025-11-06

Revenue and net revenue grew 12% and 10% ex-advocacy year-over-year, with strong gains in marketing cloud and digital transformation. Strategic focus shifted to AI and technology, highlighted by a new Palantir partnership and significant investments in proprietary platforms.

Q2 2025 Q2 2025 2025-07-31

Q2 2025 saw 8% net revenue growth, strong cash flow, and margin expansion, with digital and AI-driven offerings outperforming industry peers. Guidance for the year is reaffirmed, with organic growth expected to accelerate in H2 and leverage to decline further.

📊 Analysis Methodology

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