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Perplexity Finance

STGW

Stagwell Inc.

STGW

NASDAQ

Market Closed

Sunday, May 25, 2025

$4.71

-$0.05

1.05%

At close: May 23, 4:00:01 PM EDT

$4.60

-$0.11

2.34%

After hours: 6:34:31 PM EDT

Change

-$0.05

1.05%

Financial Profile

Prev Close

$4.76

Market Cap

$1.26B

Day Range

$4.65 - $4.79

Open

$4.74

P/E Ratio

-471.0

52W Range

$4.66 - $8.18

24H Volume

$5.27M

Dividend Yield

0.00%

EPS

-0.01

Earnings

Report Date

May 8, 2025

Reported Revenue

651.7M

Miss -6.94%

Avg 1d Change

6.93%

Report Period

Q1 2025

Reported EPS

0.12

Miss -29.41%

Implied Move 1d

18.2%

Transcript

11m 53s

Thank you, Ben, on this really lovely day here at the World Trade Center. And thank you to everyone joining us for our earnings call. Stagwell delivered strong results to start the year firmly in line with our expectations and with another record breaking net new business quarter indicative of the strengthening position of Stagwell as the challenger network. While others in the industry are flailing about with endless reorganizations, behemoth mergers and downsizing. Stagwell is on a steady course of growth, scale, and innovation. I have never been more bullish about the opportunities for Stagwell in this marketplace. Despite the noise of tariffs, the low point of the advocacy cycle this quarter, we achieved double digit net revenue growth ex advocacy of 15% in digital transformation. 10% in creativity, 45% in the Stagwell Marketing Cloud. We're taking share. We have built an enviable mix of best in class creator transformative digital capabilities, and an innovative suite of tech solutions. I would strongly encourage you to visit Stagwell's investor website to watch the webcast of the Day we held last month. To learn more about our strategy to grow, scale, and innovate. Turning to our results. Stagwell delivered strong growth in four of five principal capabilities posting 9% total net revenue growth excluding advocacy in the first quarter.

13m 21s

We have achieved this while generating $81,000,000 in adjusted EBITDA and investing $17,000,000 into our tech initiatives and carefully managing our labor costs. The comp to net revenue ratio for the first quarter was 65.3%, an improvement of 175 basis points over the same period in 2023 the last nonpolitical year. Work has been done on implementing the AI tools that underpin the 80 to $100,000,000 efficiency drive that we announced on Investor Day. We are on track to achieve 60,000,000 to $70,000,000 in cost savings this year, and we'll update further on that progress in the second quarter call. Stagwell saw a minimal impact from tariffs in the first quarter. We'll continue to monitor developments as the second quarter begins. But our business, which is particularly strong with tech companies, is not directly impacted and customers have not signaled any intention to pull back spending. Tariff mania seems overblown for us at the moment. However, reputation risk is at the top of mind of many executives as they navigate the challenges that tariffs, and thorny political issues bring. Our risk and reputation unit bringing together experts from across Stagwell's agency, is uniquely positioned to help brands adapt their message in a rapidly evolving landscape and is winning major new assignments.

14m 44s

The first quarter saw record net new business trends a record in Stagwell's history. Stagwell posted a hundred and $30,000,000 in net new business for the quarter, almost double a year ago. This figure includes key wins with PayPal, Panera, CarMax, Celsius, and Hyatt These results bring our trailing twelve months net new business to $446,000,000 more than a hundred and $60,000,000 higher than the same figure at the end of point q two four. These wins are highlighted by customers in the technology and retail industries leading to strong growth in these verticals. In the first quarter, we saw technology customers increase their spend with us by 18% and retail customers by 52%. Work for these new customers is just beginning. And will ramp throughout the year, particularly in the second half, giving us confidence in our guidance. Already transforming brand positioning of many clients.

15m 45s

Our agencies reintroduced Starbucks to the world at the Super Bowl and launched Visa's new global campaign at the Oscars. We're winning bigger assignments, bigger clients, offer great opportunities to expand the relationship across our core capabilities. We now report organic growth annually as opposed to quarterly, but you can rest assured that this quarter saw a positive organic growth ex advocacy headlined by the digital transformation capability that had 15% growth but no acquisitions or dispositions. Turning to scale. We have now fully reinvested the proceeds from the ConcentraClack disposition into prudent M and A at accretive multiples. M and A will continue to be a key driver for us as we look to expand internationally and strengthen our capabilities while deploying capital wisely. We announced this week the acquisition of Jet Fuel to strengthen our experiential and shopper marketing capabilities they've delivered out outstanding experiences for a number of established brands like Walmart and Unilever, as well as amplifying the reach of emerging brands. [indiscernible] [indiscernible] Our recent acquisition of German media monitoring and analytics platform, UniSept, is also off to a good start. It recently won significant multiyear business with the European Commission. And the BBC. In The Middle East, we completed the acquisition of the Create Group at the beginning of the second quarter.

17m 14s

But the collaborative work with Code and Theory the Code and Theory Network started before the deal even closed. The partnership has already delivered transformative work for clients in including work for HSBC, and Conde Nast in Abu Dhabi. The Middle East is a major growth market for us. And we saw net revenue grow by more than 250% year over year in the first quarter. We're also making progress in Asia, winning new mandates with Diageo. Jollibee, and Princess Cruises. This push will only be strengthened by the addition of ADK Global, which we anticipate will close in the next couple of months. And we continue to lean into the sports business as a key differentiator We added to our sports offering with the acquisition of Goldrabbit in Q1, and the Around augmented reality experience continues to gain traction. Now providing its innovative experience to the athletics at it as their new home in Sacramento. This sports portion this sports push aligns with our programming at times. Where we will once again bring together athletes marketers, and global leaders. This time is the official sports partner of the Lions Festival. We have inspirational athletes like Carmelo Anthony, Alex Rodriguez, Sue Bird, and Jordan Childs, our lineup.

18m 33s

Will look for more partner and programming announcements in the coming weeks. Lastly, we continue to be at the frontier of innovation. As a tech company's tech company. The Stagwell Marketing Cloud saw net revenue growth excluding advocacy of 45% in the first quarter. We celebrated a number of wins, including with a large U. S. Specialty insurance company. Quest Brands saw particularly strong growth approaching 200% in the quarter as it incorporated recent acquisition, Barra dot ai. Brands like Intel, Amazon, HP, Lenovo, and PayPal are increasingly trusting the Stagwell Marketing Cloud to provide tools to augment their marketing capabilities. SMC will continue to be an investment priority for Stagwell in 2025. We invested approximately $17,000,000 in the quarter to further strengthen our data software, development and sales efforts. However, we anticipate the investment cadence to decline throughout 2026 as the products reach greater maturity and gain additional traction. AI continues to be front and center at Stagwell, as we announce the appointment of John Cahan, a former Microsoft and IBM executive as our chief AI officer at Investor Day. We continue to make progress with our internal tools like the Stagwell ID Graph, our proprietary customer ID platform, already delivering outstanding impact for a global CPG client and a DTC retailer.

20m

We also announced on Investor Day that we're working with Palantir, to test developing advanced. Military grade targeting to enhance the utilization of Stagwell's unique datasets. And we anticipate the machine content management operating system we're developing with Adobe, will begin integrating into workflows at Stagwell at the end of the summer. The completion of these two products will mark a major advance in the capabilities of our media and data business its ability to compete with the other majors. Our digital transformation capability led by Code and Theory grew net revenue 15% year over year in the first quarter excluding [indiscernible] Code and Theory debuted its new Adobe content supply chain solution at the Adobe Summit driving personalization at scale with generative AI. We saw tremendous interest in Coding Theory's capabilities at the event, drawing almost 700 demos and leads. Meanwhile, Left Field Labs developed an interactive AI demo for Qualcomm CEO's keynote speech at South by Southwest. Showing how agentic AI can be integrated into everyday life with an on device processing like AR glasses or wearables. Our transformative work has not gone unnoticed in the industry. Just two weeks ago at the Webby Awards Code and Theory, Kettle and Left Field Labs received a total of four accolades.

21m 24s

For their work with NBC's election coverage, e. F. Beauty, and Hasbro. These successes come on the back of Coded Theory being named digital innovation agents of the Year by Campaign. And the recognition is not just within our digital transformation capabilities. Four of our agencies were honored at the 2025 Ad Age award last month. Anomaly in 72, landed on the prestigious a list with code named b to b agency of the year and gale named business transformation agency of the year. Stagwell's first quarter results are firmly in line with our expectations. Our new business trends give us a positive tailwind for the remainder of 2025, and we are reiterating our guidance today. The momentum in the Stagwell business is undeniable. We're providing the best services and tools at the intersection creativity and technology. Our customers trust us to help transform the way they interact with their customers. Our capacity to deliver strong growth, expanding margins and MA [indiscernible] needs to be appreciated by The Street. I firmly believe that Stagwell has never been stronger I'm optimistic about Stagwell's trajectory and ability to reach $5,000,000,000 in revenue over the next five years. Now I'd like to hand it over to Frank Ledudo, our Chief Financial Officer to walk through some of our financial results in more detail.

22m 46s

Frank?

22m 47s

Thank you, Mark. Good morning, everyone, and thank you for joining us to discuss our first quarter results. As a reminder, if you would like to ask a question after the prepared remarks conclude, please feel free to submit them through the chat function. Stagwell delivered solid first quarter financial results. Which were in line with our expectations. For the quarter, we reported net revenue of $564,000,000 an increase of 6% over the prior period. Excluding advocacy, which is outside the political cycle, total net revenue grew 9%. In the first quarter, digital transformation net revenue grew 8% to $106,000,000 Excluding advocacy, net revenue grew 15%. The continued resurgence in digital transformation was fueled by a 16% increase in revenue from technology clients, driven by expansions at Apple and Google and a 28% increase in revenue from industrial clients. Stagwell Marketing Cloud posted $63,000,000 in net revenue. In the quarter. An increase of 32% year over year. Excluding advocacy, net revenue grew 45%. Performance was driven by the recent acquisitions of Bera dot ai, Leaders, and Unicept as well as the strong performance at our Harris Quest brand. Which grew more than a 70% with existing clients due to recent significant platform enhancements.

24m 15s

Creativity and communications delivered $242,000,000 in net revenue in the quarter, an increase of 7% over the prior period. Excluding advocacy, net revenue grew 10%. The results were driven by strong performance with retail clients, which more than doubled year over year and by a 15% increase with technology clients, as we began to realize the impact from our record net new business wins. Consumer insights and strategy returned to growth in the first quarter, posting $49,000,000 in net revenue. An increase of 8% as compared to last year. The growth was led by a 23% year over year increase in revenue from technology clients and then almost doubling year over year revenue from financial sector clients. Fueled by new business from Visa, and JPMorgan. Finally, Performance Media and Data reported $104,000,000 in net revenue the first quarter, a decline of 10% over the prior period. Growth in consumer products and retail clients was offset by a reduction in spend by a single customer in its strongest seasonal quarter as it currently revises its media strategy. We fully expect to see a strong sequential rebound Performance Media and Data's results starting in Q2. Moving to operating expenses. We continue to make progress against our goal of margin improvement through effective cost management.

25m 47s

Personnel costs excluding incentives are single largest expense, landed at 65% in the first quarter Excluding advocacy, the ratio was 64.8%. 50 basis points lower than last year and 150 basis points lower than in 2023. We've also made further progress with our targeted cost saving initiatives. In the first quarter, we actioned approximately $4,000,000 in annualized cost savings in connection with our real estate consolidation and shared services initiatives. Our content supply chain initiative which we introduced at Investor Day, is just getting underway. We expect to take actions throughout '25 totaling 60 to $70,000,000 in annualized cost savings. With the remaining 20 to $30,000,000 being taken 2026. We expect to start providing updates on our progress with this initiative as early as the second quarter earnings call. Summarizing our operating results, we delivered $81,000,000 in adjusted EBITDA in the first quarter, with a margin of 14.3% on net revenue. An improvement of approximately 50 basis points over the same period in '23 the last nonpolitical year. Excluding our cloud investment of $17,000,000 this quarter, our first quarter adjusted EBITDA margin would have been approximately 17.3%. Now moving to the balance sheet. We continue to focus capital allocation to maintain a strong financial position.

27m 25s

Our deferred acquisition consideration balance stands at $93,000,000 at the end of the first quarter 80,000,000 lower than at the end of the same period last year, and approximately 73,000,000 lower than at the end of the first quarter in 2023. We've also reduced our NCI balances by approximately 2,000,000 year over year to $21,000,000 During the quarter, we acquired approximately 1,000,000 of our shares at an average price of $6.07 per share, approximately $6,000,000 Our buyback authorization as of the end of the first quarter had $164,000,000 in remaining availability. CapEx and capitalized software for the quarter was $16,000,000 which is broadly in line with our targets. As a result, we ended the quarter with $138,000,000 in cash and drawings under our revolver of $375,000,000 resulting in a net leverage ratio of 3.3 times. Since the end of the first quarter, have taken two significant steps to simplify our capital structure and increase our financial flexibility. Early in the second quarter, we completed the refinancing of our revolving credit facility on improved terms. The revolver now has a capacity of 750,000,000 an increase of a hundred and $10,000,000, reduced credit spreads, and an extended maturity date of April 2030.

28m 55s

This is an important step for us, Agwell, giving us increased financial flexibility as we pursue our growth strategy. And on April 2, as announced at our Investor Day, Stagwell converted all outstanding Class C shares to Class A common stock. Not only will this simplify our capital structure, but it will also lead to a step up in our tax basis. Resulting in future tax savings. And finally, as Mark noted, we are reiterating full year 2025 guidance as follows: Total net revenue growth is expected to be approximately 8% Adjusted EBITDA is expected to be between $410,000,000 to $460,000,000 We expect to deliver in excess of 45% free cash flow conversion and adjusted earnings per share is expected to be between $0.75 and $0.88 That concludes our prepared remarks for this morning. I will now turn the call back over to Ben to open the Q and A portion of the call. Ben?

30m

Thank you, Frank. Just a reminder, if you do have any questions, please feel free to submit them via the chat button at the top of the screen. Let's kick off with a question from Jason Cryer. So I have a number of questions here about new wins in the quarter. He says, you had an impressive quarter of new wins. Can you provide some more color on why you're winning more what feels like a more cautious macro? And if there are any specific where you we really feel like excelling in these ways.

30m 26s

Sure. Look. I think there are a number of trends coming together here. First, when it comes to technology, as I previously predicted, the AI era really is here. Getting increasing assignments to remake consumer experiences using AI. And I think the code and theory network, is now I think a rather complete network, headed by Dave Gardner, is really meeting the challenges that that clients are looking for and expanding its capabilities out I think in terms of of creative, what we've what we've really seen is is that a lot of the other big agencies are going through so many reorganizations mergers, what have you. They deemphasized creative at at a time when top flight creative is more important than ever. Because these new tools give you the ability to make even greater, more interesting creator ads And the whole kind of change from generation to generation requires a level of cultural knowledge that computers are never gonna really fully understand. I think we're seeing tremendous success. And again, I call out people at seventy two, Anomaly, and call McFoy and Donor for just doing incredible work, f and b as well. Really working hard, I think, to produce top flight award winning creative you know, as you see.

31m 50s

Our research is really, I think, you know, growing. We do 40,000 interviews a week And the offerings that we there are a great combination of data, and tremendous analysis. And our media continues to move along, and I really think we'll see a breakthrough in the second half particularly as these new tools come through. So there's a convergence The rest of the industry, you can see, is kind of flailing or involved in mergers. We've come up now to a a level of scale that is really being appreciated by the largest clients. You see the nature of our wins and places like Starbucks and Visa and the large scale tech companies. That are putting us, I think, in a in an entirely new market position And that's why you see this kind of flood of business which of course, whatever is won in the first quarter really doesn't happen in the first quarter. It happens later in the year, come into Stagwell right now.

32m 45s

Let's let's keep going just on the on the net new business trends. And I think an interesting question from Laura Martin over at Needham. She goes, are you getting new clients as a result of direct consolidation of some of the larger players? Or or does your small size become almost a bit of a disadvantage as they scale up?

33m 3s

I'm quite sure I get her get get her a question. Can we I think it's I think it's sort of asking a question. As we see consolidation, amongst some of the larger holdcos, is that leading to the some of this new business stuff, or is it sort of I think all of these things are converging. We are at the right place at the right time. As you can see, a lot of the big holding companies are wondering, how do you remake your offering? You saw this huge consolidation in media offerings yesterday. You see the the the merger that that's going on. You see those that are smaller than us who didn't really adopt our strategy, really flailing because they can't handle the total needs of a client just at the right size and scale. What I've been telling people is Stagwell scales up. We're omniservice. Going to be completely global. We're expanding our capabilities. So that we can 100% compete against the majors in a nimble, tech infused, and aggressive way. That is exactly what we're doing.

34m 5s

And final question on net new business from Barton Crockett. At Rosenblatt. Your quarterly net new net new wins nearly doubled here. Over year, a record as you noted. When will that start to be reflected in some of the net revenue growth thing?

34m 17s

I think you really look to see that come through in the second half of the year. I think I think in the what you really see is all those wins in the first quarter. Couldn't possibly start in the first quarter. The first quarter is the reflection of the last half year's wins. And I think what you really see is particularly with the kinds of clients and I I see our media, two really, three and four cube should be where you see those really come through.

34m 44s

And and maybe just on the media point of things. I had a here again from Barton. Just saying, can you provide a little bit more detail on on what turns around that performance media and data in two q? Obviously, a little bit of a a drag in q one. But yeah. It was a little bit of a drag in q one because they had in the in the last two years a client that actually is their season was q one. And and that client reduced their their spend with us you know, which is more in line with a more typical q one. And that's why we see the new clients that are coming on have a more typical pattern. Of q three and q four waiting. Into the season. And I really expect that as I've said, we've got two major new technology offerings the Stagwell ID Graph, We're working on improving you know, having really state of the industry targeting with Palantir. And the content management system that we're developing with Adobe Those two things, when you add to our data and media, and the incredible unique datasets that we have, in terms of the Harris Poll, in terms of the people platform, in terms of what we've got at NRG, in terms of entertainment habits, When you add those unique data assets together with those two new products, gonna have a whole new strengthened and and even more competitive offering beginning the second half of this year.

36m 5s

Great. Another question here, and I thought a really interesting one. Just go can you talk little bit about some of the new work we're doing for some technology customers? I think we had a couple of examples with Qualcomm and a few other guys. You know, how is how are their needs evolving? The moment? How is Stagwell kind of aligned as as we said, tech companies, tech company?

36m 24s

Look, the truth of the matter is a lot of those assignments, you know, are confidential. But I think they all revolve around two letters, AI. And I think what what you're really seeing is that the tech companies are looking to how they can best utilize AI in consumer related experiences. And even in their contacts with their consumers to show that they're the right place. Look, this has gone from from, I think, years of efficiency in in the tech companies to what I've predicted is the year of competition. Right? AI is out there, and I think there's a massive competition among the big tech companies to get to consumers with lasting AI based experiences. And one of the places they turn to whether it's for experiences, advice, marketing, or engineering, all of those aspects are the Stagwell companies you know, headed, I think, by now, the Code and Theory Network Great. We've had a number of questions about tariffs macro uncertainty, and a number of other things. And I I thought I'd read out one from from Wells Fargo.

37m 30s

Have you seen any changes in client behavior in the midst of this more uncertain macro? And, you know, what are we seeing at the moment that gives confidence in reiterating our full year guide this year?

37m 41s

Sure. You know, I've been out there, if you look at my post comments, to say, look, you have to put tariffs in proportion. Only about 11% of The US economy is imported, a 10% tariff on 11% is only 1% of the economy. So I think to some extent, the media and others have exaggerated the total impact of tariffs But, of course, there couldn't be differential effects in industries. The truth of the matter is we have seen really minimal direct on tariffs. We had one customer that primarily was an importer of foreign goods. Pull back, but that was one out of thousands. We've we've run two new campaigns. Emphasizing for companies that their products were were made right here. In America. But net net, we're we're not on the direct firing line of tariffs, it seems. It just don't you know, we've been through the pandemic. We've been through fear of recession. We've been I've been through a lot of experiences. If there wasn't tariff mania in the paper, right now, I would not know that there's tariffs in the business. Now, that could change. I'll be the first person to say that. But I can only report on what we're seeing, which is that we may we're more on the secondary line.

38m 56s

If the economy goes down, of course, we'll be affected, but we're not on the front lines of tariffs.

39m 1s

Just a reminder, any final questions, please do put them in the in the in the chat. But a question about margins for a second. And, obviously, you got solid margin improvement over 2023 in the first quarter here. You talk a little bit about kind of as we think about the next five years, that margin profile the margin, you know, the margin trajectory as we get to that sort of five side? Sure.

39m 23s

I I think you have to look at how are we going to in the long term grow our margin beyond what it is? First, as you can see, we are aggressively looking to apply AI in the front office and to streamline the back office And that's why we've announced this what we've announced here is not cuts, but efficiencies that we believe can be made in the business. Using the latest tools of of technology. Second, remember the Stagwell Marketing Cloud itself is going to be instead of costing 70,000,000 a quarter, we'll start to flip around in 2026. And most of those products have which 6080% gross margins. So we're really looking for those to be a margin booster. Third, I think we're like much of the other industry, developing new tools and techniques within within media to offer interesting services to clients in in the media both in terms of of new data sources, and and also in terms of I wouldn't call it principal buying per se, but in terms of better leveraging media transactions. To the benefit of clients. And I think those three or four areas all represent ways in which we look at the margins.

40m 45s

Being able to expand in the long term, particularly within you know, particularly in kind of what I would see as years three to five. Of of that five year plan. I think I think that brings an end to the to the question for the quarter, and I think, I think it I think it's I think this brings good insightful answers I do wanna remind everyone we have a very busy schedule coming up in terms of investor investor engagement. Do feel free to reach out if you're interested in meeting with us at any upcoming conferences. And then we will have our events will be chat can as well. So once again, please reach out to IRStagwellGlobal.com if you'd like to connect. You again for joining, and we hope we'll toast you later this year.

41m 24s

And I just wanna thank I know, many of employees and executives also tuned into this call. And I wanna thank them all for the hard work that you really see reflected in the results that we're showing here at Stagwell. Thank you.

Key Insights

Stagwell reported strong Q1 results, with net revenue of $564M (up 6% YoY) and 9% net revenue growth excluding advocacy; adjusted EBITDA was $81M with a 14.3% margin.
The company achieved record net new business wins of $130M in Q1, nearly double the prior year, with major clients including PayPal, Panera, CarMax, Celsius, and Hyatt; trailing twelve months net new business reached $446M.
Digital transformation net revenue grew 15% ex-advocacy, creativity grew 10%, and Stagwell Marketing Cloud saw 45% growth ex-advocacy; technology and retail client spend increased by 18% and 52%, respectively.
Stagwell reiterated full-year 2025 guidance: ~8% total net revenue growth, adjusted EBITDA of $410M–$460M, adjusted EPS of $0.75–$0.88, and >45% free cash flow conversion; expects $60M–$70M in cost savings in 2025 from efficiency initiatives.
The company continues to invest in AI and tech innovation, highlighted by new product development with Palantir and Adobe, and expects margin expansion over the next five years as tech investments mature and efficiency initiatives take hold.

Recent Transcripts

Stagwell delivered record net new business and strong revenue growth, reiterating 2025 guidance.

Stagwell delivered record revenue and double-digit growth, driven by digital transformation and strategic expansion.

Digital Transformation

+22% Q4 revenue

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$888M	$1.5B	$2.7B	$2.5B	$2.8B
Cost of Revenue	$572M	$907M	$1.7B	$1.6B	$1.8B
Gross Profit	$316M	$563M	$1B	$906M	$998M
Gross Profit %	36%	38%	38%	36%	35%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$888M

$1.5B

$2.7B

$2.5B

$2.8B

Cost of Revenue

$572M

$907M

$1.7B

$1.6B

$1.8B

Gross Profit

$316M

$563M

$1B

$906M

$998M

Gross Profit %

36%

38%

36%

35%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$71M	$36M	$66M	$134K	$25M
Dep. & Amort.	$41M	$78M	$131M	$219M	$227M
Def. Tax	-$5.5M	-$20M	-$18M	$19M	-$11M
Stock Comp.	$14M	$75M	$33M	$57M	$52M
Chg. in WC	$8.8M	$16M	$37M	-$180M	-$163M

2020

2021

2022

2023

2024

Net Income

$71M

$36M

$66M

$134K

$25M

Dep. & Amort.

$41M

$78M

$131M

$219M

$227M

Def. Tax

-$5.5M

-$20M

-$18M

$19M

-$11M

Stock Comp.

$14M

$75M

$33M

$57M

$52M

Chg. in WC

$8.8M

$16M

$37M

-$180M

-$163M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$92M	$184M	$221M	$120M	$131M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$92M	$184M	$221M	$120M	$131M
Receivables	$237M	$760M	$739M	$811M	$890M
Inventory	$500K	$0	$0	$0	$0

2020

2021

2022

2023

2024

Cash

$92M

$184M

$221M

$120M

$131M

ST Investments

Cash & ST Inv.

$92M

$184M

$221M

$120M

$131M

Receivables

$237M

$760M

$739M

$811M

$890M

Inventory

$500K

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $1.3B
IPO Date: 4/17/95
CEO: Mr. Mark Jeffrey Penn
Fulltime Employees: 12K
Sector: Communication Services
Industry: Advertising Agencies
Country: US
Exchange: NASDAQ Global Select

Peers

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$3.14

CTV

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Watchlist

Earnings

Report Date

May 8, 2025

Reported Revenue

651.7M

Miss -6.94%

Avg 1d Change

6.93%

Report Period

Q1 2025

Reported EPS

0.12

Miss -29.41%

Implied Move 1d

18.2%

Transcript

11m 53s

13m 21s

14m 44s

15m 45s

17m 14s

18m 33s

20m

21m 24s

22m 46s

Frank?

22m 47s

24m 15s

25m 47s

27m 25s

28m 55s

30m

30m 26s

31m 50s

32m 45s

33m 3s

34m 5s

34m 17s

34m 44s

36m 5s

36m 24s

37m 30s

37m 41s

38m 56s

If the economy goes down, of course, we'll be affected, but we're not on the front lines of tariffs.

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Stagwell reported strong Q1 results, with net revenue of $564M (up 6% YoY) and 9% net revenue growth excluding advocacy; adjusted EBITDA was $81M with a 14.3% margin.
The company achieved record net new business wins of $130M in Q1, nearly double the prior year, with major clients including PayPal, Panera, CarMax, Celsius, and Hyatt; trailing twelve months net new business reached $446M.
Digital transformation net revenue grew 15% ex-advocacy, creativity grew 10%, and Stagwell Marketing Cloud saw 45% growth ex-advocacy; technology and retail client spend increased by 18% and 52%, respectively.
Stagwell reiterated full-year 2025 guidance: ~8% total net revenue growth, adjusted EBITDA of $410M–$460M, adjusted EPS of $0.75–$0.88, and >45% free cash flow conversion; expects $60M–$70M in cost savings in 2025 from efficiency initiatives.
The company continues to invest in AI and tech innovation, highlighted by new product development with Palantir and Adobe, and expects margin expansion over the next five years as tech investments mature and efficiency initiatives take hold.

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