Stagwell Inc.

Stagwell Inc. (STGW) Market Cap

Stagwell Inc. has a market capitalization of $2.09B.

Price: $8.45

▼ -0.04 (-0.47%)

Market Cap: 2.09B

NASDAQ · time unavailable

CEO: Mark Jeffrey Penn

Sector: Communication Services

Industry: Advertising Agencies

IPO Date: 1995-04-17

Website: https://www.stagwellglobal.com

Stagwell Inc. (STGW) - Company Information

Market Cap: 2.09B|Sector: Communication Services

Company Profile

Stagwell Inc. offers a wide array of specialized services, including digital transformation, data-driven performance media, consumer insights and strategic planning, and creative communications solutions. The company operates through three distinct segments: the Integrated Agencies Network, the Media Network, and the Communications Network. A key part of its business involves designing and building advanced digital platforms and engaging experiences. These solutions are crafted to facilitate the distribution of content, support e-commerce activities, enhance service delivery, and boost sales. This includes developing custom websites, mobile applications, robust back-end infrastructures, and sophisticated content and data management systems. Stagwell also formulates and implements cutting-edge technology and data strategies. Furthermore, the company develops proprietary software, such as cookie-less data platforms for targeted audience engagement, e-commerce tools, and text messaging applications designed to interact with consumers. Beyond digital infrastructure, Stagwell provides comprehensive media buying and planning services. It also furnishes clients with strategic insights and expert guidance to optimize their business content, product strategies, overall communications, and media approaches. The firm's creative and communications offerings encompass strategy development, advertising creation, the execution of live events, cross-platform engagement initiatives, and compelling social media content. Additionally, they provide services in leadership development, social media management, executive visibility, strategic communication, public relations, and public affairs. Stagwell Inc. extends its expertise to include influencer marketing, in-depth brand insights, communications technology, and augmented reality services, particularly assisting in-house marketing teams with innovative, technology-driven solutions. The company's corporate headquarters are located in New York, New York.

Analyst Sentiment

62%
Buy

From 8 Active Polls

1Y Forecast: $8.00

▼ -5.3% Potential Upside

Consensus Target Metrics

Low Bound

$8

Median

$8

High Bound

$8

Average

$8

Price & Moving Averages

Loading chart...

🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$8.00
▼ -5.33% Upside
Low Target
$8.00
-5% Risk
Median Target
$8.00
-5% Mid
High Target
$8.00
-5% Max
Consensus
Buy
5 / 8 Buys

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

valuation & financial ratiosdetailed financials

📊 Historical Valuation Multiples

Real-time Trailing Twelve Month (TTM) momentum side-by-side with discrete quarterly metrics.

Fiscal QuarterTTMQ2 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024
Period EndingTrailing 12MJun 30, 2026Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024
Market Cap ($M)2,0941,8451,5771,2311,4411,173678719760
Enterprise Value ($M)3,6913,4413,1702,7323,1192,7452,2872,2472,390
Price to Earnings Ratio (P/E)130.40-61.92-30.4224.3014.63-55.69-50.4256.3413.50
Price/Earnings-to-Growth Ratio (PEG)—-5.31—2.802.86-6.59—5.182.26
Price to Sales Ratio (P/S)0.692.352.241.521.941.661.040.911.07
Price to Book Ratio (P/B)3.132.762.181.591.871.562.032.172.65
Price to Free Cash Flow Ratio (P/FCF)8.4923.28-42.465.06-37.1710.96-8.943.43-174.61
Enterprise Value to Sales (EV/Sales)—4.384.503.384.203.883.512.853.36
Enterprise Value to EBITDA (EV/EBITDA)10.9158.7362.4525.0426.0134.4028.9927.2724.41
Debt to Equity Ratio4.722.552.362.072.352.345.225.006.20

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 STAGWELL INC CLASS A (STGW) — Investment Overview

🧩 Business Model Overview

STAGWELL operates as a marketing services and communications platform that delivers end-to-end capabilities to enterprise and mid-market clients. The firm brings together specialized agency disciplines (e.g., creative, strategy, media services, data/analytics, and production) and typically contracts work through project scopes, retainers, and multi-channel engagements.

The value chain is centered on translating client marketing objectives into measurable campaigns: discovery and strategy feed into creative development and execution, while measurement and optimization support ongoing performance. Client stickiness is driven less by technology lock-in and more by service bundling, cross-skill delivery, and relationship-based know-how embedded across multiple campaigns.

💰 Revenue Streams & Monetisation Model

Revenue is generally composed of a blend of recurring elements (retainers for ongoing strategy, production support, and campaign management) and transactional/project-based work (campaign builds, creative production, and tactical initiatives). Monetisation is supported by two key margin levers:

  • Service mix and utilization: Higher value-added services (strategy, analytics, measurement, performance optimization) can support better economics than purely labor-light production work, though profitability is still sensitive to staffing levels and billable utilization.
  • Pass-through and media economics: Where the firm participates in media-related workflows, margins depend on pricing power, procurement efficiencies, and the level of pass-through versus managed services.

Overall, the business model tends to monetize client spend through professional services rather than subscription software; as a result, operating margins track labor intensity, delivery productivity, and the quality of the client portfolio.

🧠 Competitive Advantages & Market Positioning

STAGWELL’s moat is best characterized as switching-cost-like stickiness created by multi-service dependency, relationship depth, and embedded campaign knowledge (an intangible asset moat rather than a hard technical lock-in).

  • Bundled service relationships (soft switching costs): Clients often award repeat work when strategy, creative, analytics, and execution are delivered through a single managed ecosystem. Replacing an incumbent can require rebuilding vendor processes and retraining stakeholders across multiple workstreams.
  • Integrated measurement and execution capability: Competitive positioning benefits when offerings extend beyond creative deliverables into optimization and performance accountability.
  • Talent and proprietary workflow assets: Agency delivery depends heavily on specialized teams, operating playbooks, and tooling developed over repeated campaigns—these assets compound across engagements.

Competitive benchmarking:

  • Omnicom Group and Interpublic Group (IPG): Large global holding companies with extensive legacy agency networks and broad enterprise coverage. Their scale supports procurement and multi-brand delivery at global clients.
  • Publicis Groupe: Emphasizes integrated marketing transformation and data/technology initiatives across a wide global footprint.

STAGWELL’s positioning differs by emphasizing an orchestrated platform of specialized capabilities and an integrated operating approach that seeks to improve cross-sell and delivery coordination across disciplines, particularly where clients value measurable outcomes and practical execution rather than only broad global brand presence.

🚀 Multi-Year Growth Drivers

  • Digital and performance marketing share gains: Ongoing budget migration from traditional channels toward digital, addressable media, and measurable performance increases demand for analytics, testing, and optimization.
  • Marketing complexity and channel fragmentation: Proliferation of platforms, formats, and devices expands the need for orchestration, creative iteration, and measurement—areas where integrated service models can win retainers.
  • Privacy-resilient measurement: Continued evolution of attribution, consent, and data governance drives sustained demand for compliant analytics workflows and strategic measurement consulting.
  • Client demand for accountable outcomes: Procurement increasingly favors partners that can connect spend to performance indicators, supporting longer-term engagement structures rather than one-off projects.
  • Industry consolidation and capability stacking: The holding-company ecosystem can benefit from consolidating specialist capabilities, improving cross-sell, and enhancing margin through integrated delivery.

⚠ Risk Factors to Monitor

  • Advertising spend cyclicality: Marketing budgets tend to contract during demand slowdowns, pressuring revenue visibility and utilization.
  • Margin volatility from labor intensity: Professional services economics can swing with staffing levels, wage inflation, and utilization.
  • Client concentration and renegotiation risk: Losing a large client or facing pricing pressure can quickly impact revenue due to the project/retainer structure.
  • Competitive pressure from scaled rivals: Large peers can use global relationships and procurement scale to win mandates, compressing fees.
  • Technological disruption and automation: AI-enabled creative and marketing operations may reduce certain task economics, requiring adaptation to preserve value capture.
  • Regulatory and privacy compliance: Changes in data rules and measurement frameworks can force technology and process retooling.

📊 Valuation & Market View

Equity markets typically value marketing services businesses on EV/EBITDA and P/S frameworks, with key sensitivities tied to operating leverage and cash conversion. In this sector, the valuation multiple often reflects:

  • Organic growth and retention: Demonstrated ability to maintain and expand client relationships.
  • Operating margin trajectory: Capacity to manage labor costs and improve service mix.
  • Free cash flow generation: Working capital discipline and conversion of operating earnings into cash.
  • Balance-sheet risk: Leverage and refinancing conditions affect the equity risk premium.

As a services platform, the market generally re-rates valuation when management shows durable client demand, improved margin structure, and credible cash generation rather than reliance on short-lived campaign cycles.

🔍 Investment Takeaway

STAGWELL’s long-term thesis rests on an intangible and relationship-driven moat—client stickiness created by multi-service bundling, integrated delivery capabilities, and embedded campaign knowledge—combined with structural demand for performance-oriented, data-informed marketing. The investment case depends on sustaining organic client momentum, protecting service economics against wage and pricing pressure, and adapting to measurement and automation shifts without eroding value capture.


⚠ AI-generated — informational only. Validate using filings before investing.

📰 Market News & Coverage

15 Stories Available

Real-time institutional reporting and market updates for STGW.

marketbeat.com•2026-07-30

Stagwell Q2 Earnings Call Highlights

Stagwell NASDAQ: STGW reported second-quarter results marked by accelerating organic growth, higher profitability and record net new business, as the marketing services company emphasized demand for AI-enabled digital transformation and communications work.

seekingalpha.com•2026-07-30

Stagwell Inc. (STGW) Q2 2026 Earnings Call Transcript

Stagwell Inc. (STGW) Q2 2026 Earnings Call Transcript

zacks.com•2026-07-30

Stagwell (STGW) Q2 Earnings and Revenues Surpass Estimates

Stagwell (STGW) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.17 per share a year ago.

accessnewswire.com•2026-07-30

Stagwell Inc. (NASDAQ:STGW) Reports Results for the Three and Six Months Ended June 30, 2026

Q2 YoY Revenue Growth of 11% to $786 million; Q2 YoY Net Revenue Growth of 6% to $632 million Q2 YoY Digital Transformation Organic Net Revenue Growth of 18%; Two-Year Digital Transformation Organic Net Revenue Growth Stack of 29% Q2 EPS of $(0.03); Q2 Adjusted EPS Growth YoY of 39% to $0.25 Q2 Net Loss Attributable to Stagwell Inc. Common Shareholders of $8 million; Q2 Adjusted EBITDA Growth YoY of 15% to $109 million Record Net New Business of $171 million in Q2; LTM Net New Business of $540 million Raise Full-Year 2026 Adjusted EPS Guidance to $1.03 to $1.17 NEW YORK CITY, NY / ACCESS Newswire / July 30, 2026 / (NASDAQ:STGW) - Stagwell Inc. ("Stagwell") today announced financial results for the three and six months ended June 30, 2026. SECOND QUARTER RESULTS: Q2 Revenue of $786 million, an increase of 11% versus the prior year period; YTD Revenue of $1,490 million, an increase of 10%; Q2 Revenue increased 10% organically versus the prior year period; YTD Revenue increased 8% organically; Q2 Net Revenue of $632 million, an increase of 6% versus the prior year period; YTD Net Revenue of $1,216 million, an increase of 5%; Q2 Net Revenue increased 5% organically versus the prior year period; YTD Net Revenue increased 3% organically; Q2 Digital Transformation Net Revenue of $107 million, an organic increase of 18% versus the prior year period; Two-Year Net Revenue Growth Stack for Digital Transformation of 34%, Two-Year Organic Net Revenue Growth Stack for Digital Transformation of 29%; Q2 Net Loss attributable to Stagwell Inc. Common Shareholders of $8 million versus $5 million in the prior year period; YTD Net Loss attributable to Stagwell Inc. Common Shareholders of $21 million versus $8 million in the prior year period; Q2 Adjusted EBITDA of $109 million, an increase of 15% versus the prior year period; YTD Adjusted EBITDA of $198 million an increase of 12%; Q2 Adjusted EBITDA Margin of 17% on net revenue; YTD Adjusted EBITDA Margin of 16%; Q2 Loss Per Share attributable to Stagwell Inc. Common Shareholders of $(0.03) versus $(0.02); YTD Loss Per Share attributable to Stagwell Inc. Common Shareholders of $(0.08) versus $(0.06) in the prior year period; Q2 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.25 versus $0.18; YTD Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.42 versus $0.30 in the prior year period; YTD Net Cash provided by Operating Activities of $64 million versus $55 million in the prior year period; Net new business of $171 million in the second quarter, last twelve-month net new business of $540 million See "Non-GAAP Financial Measures" below for explanations and reconciliations of the Company's non-GAAP financial measures.

accessnewswire.com•2026-07-27

Stagwell (STGW) to Acquire QStrauss Consulting to Expand Code and Theory's Implementation of Adobe's Suite of Solutions

Colombia-Based Adobe Implementation Specialist Joins Stagwell's Code and Theory Network, Expanding the Network's Global Footprint and Deepening Its Bench of Adobe Experts NEW YORK CITY, NY / ACCESS Newswire / July 27, 2026 / Stagwell (NASDAQ:STGW), the challenger network transforming marketing through AI, today announced it has entered into an agreement to acquire QStrauss Consulting , a leading Adobe implementation and consulting firm and preferred Adobe consulting vendor. Based in Colombia, QStrauss Consulting will join the Code and Theory Network , further expanding its global footprint and team of Adobe experts.

accessnewswire.com•2026-07-16

Stagwell (STGW) Launches Stagwell Curate

A new AI-powered marketplace and platform designed to reach audiences through premium, trusted media partnerships NEW YORK CITY, NY / ACCESS Newswire / July 16, 2026 / Stagwell (NASDAQ:STGW), the global challenger network transforming marketing through AI, today announced the launch of Stagwell Curate, a new centralized deal marketplace and bespoke inventory curation platform that consolidates preferred supply relationships across the Stagwell network into a single, always-on source of trusted supply. It is designed to help brands access higher‑quality digital advertising inventory across streaming TV, video, display and audio.

accessnewswire.com•2026-07-13

Stagwell Schedules Webcast to Discuss Financial Results for the Three and Six Months Ended June 30, 2026

NEW YORK CITY, NY / ACCESS Newswire / July 13, 2026 / Stagwell  ( NASDAQ:STGW ), the global challenger network transforming marketing through AI, will report financial results for the three and six months ended June 30, 2026, on Thursday, July 30, 2026, before market open. Stagwell will host a video webcast to review those results the same day at 8:30 AM (ET).

accessnewswire.com•2026-06-30

IBM Selects Stagwell as Lead Creative Partner

Stagwell's cross-network model offers the creative ambition and marketing capabilities an enterprise technology provider demands. NEW YORK, NY / ACCESS Newswire / June 30, 2026 / IBM today appointed Stagwell (NASDAQ:STGW), the global challenger network transforming marketing through AI, as its lead creative partner.

zacks.com•2026-06-30

Are Investors Undervaluing Stagwell Inc. (STGW) Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

accessnewswire.com•2026-06-23

Stagwell (STGW) and Microsoft Advertising Become First to Integrate Copilot Directly Into Live Media Campaigns

The integration of Microsoft MCP connects Copilot directly to live campaigns, moving AI from pilot to production LONDON, UK AND CANNES, FR / ACCESS Newswire / June 23, 2026 / Stagwell (NASDAQ:STGW), the challenger network transforming marketing through AI, today announced an industry-first launch of the integration of Microsoft's Model Context Protocol (MCP), an open standard that enables AI to securely connect to live data, tools and workflows, where the Copilot agent is embedded directly into Stagwell's global media agency Assembly's paid search operations and live campaigns. The solution demonstrates how AI can move beyond testing and support day‑to‑day marketing at scale by connecting Copilot directly to Microsoft Advertising data and systems, enabling continuous analysis, auditing and generation of client‑ready outputs.

accessnewswire.com•2026-06-22

Stagwell's Code and Theory Launches Content Operating System for Sports

New solution gives sports teams and leagues a single system to ensure content is on-brand, rights-cleared and informed by performance at every step NEW YORK CITY, NY / ACCESS Newswire / June 22, 2026 / Professional sports organizations have become media companies, but they're running on infrastructure that was never built for media-company scale. Sponsor renewals, fan engagement, partnership sales and proof of performance all run through the content operation, and the operating infrastructure can't keep up.

accessnewswire.com•2026-06-19

Stagwell (STGW) Launches The Media Machine, Full Lifecycle Agentic Media Operating System

An AI-native operating system for media developed by GALE - where 20+ intelligent agents plan, buy, optimize, and report across every major platform, with humans in control at every decision gate NEW YORK CITY, NY / ACCESS Newswire / June 19, 2026 / Stagwell (NASDAQ:STGW), the global challenger network transforming marketing through AI, today announced the launch of The Media Machine, a full lifecycle agentic media operating system. The Media Machine accelerates optimization, maximizes media investment efficiency, and drives higher-quality audience engagement across platforms.

businesswire.com•2026-06-10

Allison Worldwide Names Jamie Dowd as Global President, Health + Wellness

NEW YORK--(BUSINESS WIRE)--Allison Worldwide today announced the appointment of Jamie Dowd as Global President, Health + Wellness, effective June 22. Reporting to Global CEO Wendy Lund, Dowd will lead Allison's global healthcare practice and oversee the New York office, the agency's largest market. Over a distinguished 25-year career, Jamie has helped clients introduce pharmaceutical breakthroughs that changed the course of medicine and patients' lives, including firsts in oncology, cardiovascu.

accessnewswire.com•2026-06-08

Stagwell (STGW) Announces June Investor Conference Schedule

NEW YORK CITY, NY / ACCESS Newswire / June 8, 2026 / Stagwell  Inc. (NASDAQ:STGW) , the global challenger network transforming marketing through AI, today announced its participation in an upcoming investor conference in June 2026. On June 10, management will participate in Rosenblatt's 6th Annual Age of AI Tech Summit, where they will host one-on-one investor meetings throughout the day and take part in a virtual fireside chat at 1:00 p.m.

accessnewswire.com•2026-06-02

May Harvard CAPS / Harris Poll: Trump Approval Steady at 43% With Increasing Support on Iran

72% OF VOTERS SAY THE U.S. IS WINNING THE WAR WITH IRAN; TWO-THIRDS BELIEVE THE U.S. HAS UPPER HAND IN NEGOTIATIONS, UP 12 PTS. FROM APRIL 68% OF VOTERS BELIEVE IRANIANS ARE JUST BUYING TIME WITH NEGOTIATIONS 59% OF VOTERS SAY ANOTHER ROUND OF STRIKES WOULD BE JUSTIFIED IF IRAN REFUSES TO END NUCLEAR PROGRAM 47% OF VOTERS SAY THEIR FINANCIAL SITUATION IS WORSENING, A 5-PT.

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📊 AI Financial Analysis

Powered by StockMarketInfo
Earnings Data: Q Ending 2026-06-30

"STGW reported Q2 2026 revenue of $786.3M and net income of -$6.2M (EPS: -$0.03), versus Q1 2026 revenue of $704.1M and net loss of -$13.0M. QoQ, revenue grew +11.6% while net loss narrowed materially (net income improved by about +$7.3M). YoY, revenue declined -2.4% versus Q2 2025 ($706.8M), while net income swung from a -$5.3M loss to a -$6.2M loss (about -$0.9M deterioration). Profitability remains highly volatile: gross margin increased from 28.4% (Q1) to 34.2% (Q2), and operating income rose to $11.5M, but the company still ended the quarter with a small net loss due to negative pre-tax results (-$9.2M). Over the last four quarters, the business swung from profitability (Q3/Q4 2025 net income of +$24.6M and +$12.7M) to losses in Q1–Q2 2026. Cash flow quality looks mixed but supportive in Q2: operating cash flow was $90.2M and free cash flow was ~$79.2M, despite continued negative earnings. Balance sheet leverage is elevated with total debt ~$1.71B against equity ~$0.69B; assets are ~$4.20B. Total shareholder returns appear strong—shares are up +38.4% over the past year, with no dividend. Analyst consensus target ($8) is above the current price ($7.28)."

Revenue Growth

Neutral

QoQ revenue rose from $704.1M (Q1) to $786.3M (Q2), +11.6%. YoY revenue was slightly down -2.4% vs $706.8M (Q2 2025), indicating growth is not consistently accelerating.

Profitability

Caution

Margins improved QoQ: gross margin 28.4% -> 34.2% and operating income increased to $11.5M from $9.6M, but net income remained negative (-$6.2M) with pre-tax still loss-making (-$9.2M). Compared to prior year profitability (net income +$24.6M in Q3 2025), earnings quality has deteriorated.

Cash Flow Quality

Positive

Despite net loss, Q2 operating cash flow was $90.2M and free cash flow was ~$79.2M, suggesting cash generation can be positive even when earnings are volatile. No dividends and buybacks appear limited in the latest quarter.

Leverage & Balance Sheet

Fair

Highly levered: Q2 debt ~$1.71B vs equity ~$0.69B (debt/equity ~2.48). Liquidity is weak with current ratio ~0.81, though asset base is stable around ~$4.2B. Resilience could be constrained in further downturns.

Shareholder Returns

Good

Strong momentum: stock is up +38.4% over 1Y with also positive 6M (+41.9%) and YTD (+53.9%). Dividend yield is 0%, so returns are primarily capital appreciation.

Analyst Sentiment & Valuation

Neutral

Consensus target of $8 vs current $7.28 implies upside (~+10%) but valuation support is not strong enough to offset recent earnings volatility. Price-to-earnings is not meaningful due to negative earnings.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

Loading fundamentals overview...

So What?: STGW delivered a clean start to 2026 with profitability and cash-flow momentum plus accelerating growth initiatives. Q1 results were “in line” yet show measurable operating leverage: adjusted EBITDA margin expanded 75 bps to 15.3% with labor down 110 bps and G&A down ~50 bps. EPS rose 31% to $0.17, driven by both EBITDA growth and an aggressive buyback (~$45M, 7.3M shares). On the growth engine, Digital Transformation produced >22% Q1 growth in the 2-year organic net revenue stack and management targets mid-teens growth in 2H. Product commercialization appears early but real: $12M booked tied to The Machine engagements plus a near-term go-to-market push for SATs and Stagwell Search+. Risks are comparatively contained in management’s framing—Mid East tourism is muted and one product slipped to Q2—but churn and media seasonality remain timing variables. Guidance was reiterated with acceleration expectations starting Q2.

AI IconGrowth Catalysts

  • Record Q1 net new business of $141M; wins running about $80M ahead of prior-year at the same time period
  • Digital Transformation organic net revenue stack up >22% in Q1 (2-year organic net revenue trend); expects mid-teens growth in Digital Transformation in 2H
  • SaaS/enterprise AI product early traction: $12M booked related to The Machine engagements and go-forward pipeline
  • Political super cycle ramp and election-related revenues expected to ramp in Q2 and grow each quarter thereafter

Business Development

  • First 5-year nearly $60M government contract signed in the week of the call
  • Partnering with Deloitte and Palantir on massive contracts (including Palantir-supported targeting features for SATs)
  • Palantir partnership embedded in SATs agentic targeting workflow
  • Adobe partnership: joint initiative “Creative Intelligence System” (agentic personas for marketers in the financial sector using Adobe as system of record)
  • Go-to-market partnerships for Stagwell Search+: The Trade Desk, AppLovin, Adobe (and regional working with Google industry heads)
  • New or active Machine engagements: Con Edison, a division at Microsoft, and a soon-to-be-announced global spirits brand

AI IconFinancial Highlights

  • Revenue +8% YoY to $704M; net revenue +4% to $585M (Ryan: net revenue +3.6% to $585M)
  • Adjusted EBITDA $90.0M margin 15.3%; +75 bps YoY margin expansion (also cited as 9% YoY EBITDA growth to $89.7M)
  • Labor ratio down 110 bps YoY to 63.9%; G&A down ~50 bps YoY to 19.6%
  • EPS $0.17, +31% YoY; adjusted EPS also stated as $0.17 with 31% increase
  • Free cash flow: $18M YoY increase within quarter; CFO up $34M YoY; full-year free cash flow target $250M-$300M; conversion target 50%-60% of adjusted EBITDA
  • Revolver balance reduced to $350M (down $25M or ~7% vs Q1 2025); net leverage down to 3.11x
  • No explicit tariff impact; Mid East tourism headwind cited as muted external demand (pushed one Middle East product from Q1 to Q2 due to regional conflicts)

AI IconCapital Funding

  • Share repurchases: ~7.3M shares at average $6.16, ~ $45M deployed during Q1
  • Buyback: described as having “hundreds of millions of dollars” of runway
  • Revolver: $350M at quarter end (down ~7% YoY)
  • Deferred acquisition consideration: ~$50M at quarter end, down ~$43M YoY; management expects it to be negligible by year-end
  • Capex/capitalized software: $33M in Q1; full-year investment levels expected consistent with 2025

AI IconStrategy & Ops

  • Expanded tech deployment and actioning prior announced cost savings; total action savings since April last year $54M, on track for $80M-$100M in 2026
  • Go-to-market strengthening: aiming to double new business team in 2026; hires include Nicole Souza as Chief Growth Officer for North America
  • Client accountability program: one responsible person per client; AI engine monitors and reports client needs/trends
  • Client churn: decreased churn by >10% vs 1Q 2025; goal is cut churn by ~25%; expected 2-3 points of organic growth impact from system if successful
  • Marketing Services operational shift: centralized production group nearly doubled net revenue; more production brought in-house
  • Media reorganization: new head of Media division reorganizing; political pattern expected to align more with holiday season due to shift in cadence

AI IconMarket Outlook

  • Full-year guidance reiterated: total net revenue growth 8%-12%; adjusted EBITDA $475M-$525M; adjusted EPS $0.98-$1.12; free cash flow conversion 50%-60% of adjusted EBITDA
  • Sequential acceleration expected starting in Q2 and throughout the year
  • Digital Transformation expects to accelerate to mid-teens growth in 2H
  • Election-related revenues: ramp up in Q2 and continue to grow each quarter thereafter
  • Net leverage outlook: exit 2026 in the mid-2s
  • Government contract momentum: management expects formal announcement of the contract referenced within the next 2 weeks

AI IconRisks & Headwinds

  • Mid East tourism and related activity muted internationally due to strengthening dollar and slowdowns; one Middle East product pushed to Q2 due to regional conflicts
  • Media cycling/seasonality: described as burning off H&R Block Q1 client impact; management expects media strength later in the year
  • Client churn risk persists; management is targeting ~25% churn reduction and acknowledges smaller-client churn as a drag driver (mitigation underway via accountability system)
  • Macro risk (oil prices/conflict duration): management cites only ~3% of business exposed to Mid East, and says no evidence clients are pulling back on marketing plans; acknowledges uncertainty if conflict persists

Q&A: Analyst Interest

  • Topic: Digital Transformation demand composition (new vs expansion) and AI-project framing. Management: Demand moved from “what’s AI/legal” to “I better have AI.” They emphasized the machine and SaaS pitches to both existing customers and new logos, citing Adobe Summit yielding 600 leads, and early quota capture (50% of first-year quota in initial months) via agentic tools.
  • Topic: Media segment trajectory into 2026 and timing. Management: Media was described as burning off the Q1 H&R Block client fully. With no comparable big Q1 replacement, management expects media growth later in the year, driven by GALE winning multiple contracts, plus organizational and technology additions to shift media cadence toward holiday/political season patterns.
  • Topic: EPS uplift mechanics and drivers. Management: Adjusted EPS improvement is attributed to two levers: (1) adjusted EBITDA growth increasing the numerator, and (2) share repurchases reducing the denominator—7.3M shares for about $45M—reinforcing the undervaluation premise and contributing to the ~31% adjusted EPS growth.

Sentiment: POSITIVE

Note: This summary was synthesized by AI from the STGW Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

📋 Official Regulatory 10-K / 10-Q SEC Filings

Direct authenticated documentation links to audited SEC database reports for STGW.

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Filed: Jul 31, 2026
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SEC Filings (STGW)

© 2026 Stock Market Info — Stagwell Inc. (STGW) Financial Profile