STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025
Stagwell Inc. (NASDAQ: STGW) reported strong Q2 2025 financial results, with net revenue growth of 8% reaching $598 million and 10% growth excluding Advocacy business. The company achieved Adjusted EBITDA of $93 million, up 8% year-over-year, with ex-Advocacy EBITDA growing 23% to $80 million.
Key highlights include $117 million in net new business for Q2, significant improvement in cash flow from operations with a $122 million increase over the prior year, and progress on cost savings initiatives with $20 million in annualized savings achieved. The company reiterated its 2025 guidance, projecting approximately 8% total net revenue growth and Adjusted EBITDA between $410-460 million.
Stagwell Inc. (NASDAQ: STGW) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con una crescita del fatturato netto dell'8% che ha raggiunto i 598 milioni di dollari e una crescita del 10% escludendo il settore Advocacy. L'azienda ha registrato un EBITDA rettificato di 93 milioni di dollari, in aumento dell'8% su base annua, con un EBITDA ex-Advocacy cresciuto del 23%, raggiungendo gli 80 milioni di dollari.
I punti salienti includono 117 milioni di dollari di nuovi contratti netti nel secondo trimestre, un significativo miglioramento del flusso di cassa operativo con un aumento di 122 milioni di dollari rispetto all'anno precedente e progressi nelle iniziative di riduzione dei costi con 20 milioni di dollari di risparmi annualizzati ottenuti. L'azienda ha confermato le previsioni per il 2025, prevedendo una crescita totale del fatturato netto di circa l'8% e un EBITDA rettificato compreso tra 410 e 460 milioni di dollari.
Stagwell Inc. (NASDAQ: STGW) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un crecimiento del ingreso neto del 8% alcanzando los 598 millones de dólares y un crecimiento del 10% excluyendo el negocio de Advocacy. La compañía logró un EBITDA ajustado de 93 millones de dólares, un aumento del 8% interanual, con un EBITDA ex-Advocacy que creció un 23% hasta los 80 millones de dólares.
Los aspectos destacados incluyen 117 millones de dólares en nuevos negocios netos para el segundo trimestre, una mejora significativa en el flujo de caja operativo con un aumento de 122 millones de dólares respecto al año anterior, y avances en las iniciativas de ahorro de costos con 20 millones de dólares en ahorros anualizados logrados. La compañía reiteró su guía para 2025, proyectando aproximadamente un crecimiento total del ingreso neto del 8% y un EBITDA ajustado entre 410 y 460 millones de dólares.
Stagwell Inc. (NASDAQ: STGW)는 2025년 2분기 강력한 재무 실적을 보고했으며, 순매출이 8% 성장하여 5억 9,800만 달러에 달했고 Advocacy 사업을 제외하면 10% 성장했습니다. 회사는 조정 EBITDA 9,300만 달러를 달성했으며, 이는 전년 대비 8% 증가한 수치이고 Advocacy 제외 EBITDA는 23% 증가한 8,000만 달러를 기록했습니다.
주요 성과로는 2분기 신규 순매출 1억 1,700만 달러, 전년 대비 운영 현금 흐름이 1억 2,200만 달러 증가, 그리고 비용 절감 이니셔티브에서 연간 2,000만 달러 절감을 달성한 점이 포함됩니다. 회사는 2025년 가이던스를 재확인하며 총 순매출 약 8% 성장과 조정 EBITDA를 4억 1,000만~4억 6,000만 달러로 전망했습니다.
Stagwell Inc. (NASDAQ : STGW) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec une croissance du chiffre d'affaires net de 8% atteignant 598 millions de dollars et une croissance de 10% hors activité Advocacy. L'entreprise a réalisé un EBITDA ajusté de 93 millions de dollars, en hausse de 8% sur un an, avec un EBITDA hors Advocacy en progression de 23% à 80 millions de dollars.
Les points clés incluent 117 millions de dollars de nouveaux contrats nets pour le deuxième trimestre, une amélioration significative des flux de trésorerie opérationnels avec une augmentation de 122 millions de dollars par rapport à l'année précédente, et des progrès dans les initiatives d'économies de coûts avec 20 millions de dollars d'économies annuelles réalisées. L'entreprise a réitéré ses prévisions pour 2025, prévoyant une croissance totale du chiffre d'affaires net d'environ 8% et un EBITDA ajusté compris entre 410 et 460 millions de dollars.
Stagwell Inc. (NASDAQ: STGW) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Netto-Umsatzwachstum von 8%, das 598 Millionen US-Dollar erreichte, und einem Wachstum von 10% ohne das Advocacy-Geschäft. Das Unternehmen erzielte ein bereinigtes EBITDA von 93 Millionen US-Dollar, ein Anstieg von 8% gegenüber dem Vorjahr, wobei das EBITDA ohne Advocacy um 23% auf 80 Millionen US-Dollar wuchs.
Wichtige Highlights umfassen 117 Millionen US-Dollar an neuem Nettogeschäft im zweiten Quartal, eine deutliche Verbesserung des operativen Cashflows mit einer Steigerung von 122 Millionen US-Dollar gegenüber dem Vorjahr und Fortschritte bei Kosteneinsparungsinitiativen mit 20 Millionen US-Dollar an jährlichen Einsparungen. Das Unternehmen bestätigte seine Prognose für 2025 und erwartet ein Gesamtwachstum des Nettoumsatzes von etwa 8% sowie ein bereinigtes EBITDA zwischen 410 und 460 Millionen US-Dollar.
- Net revenue grew 8% YoY to $598 million, with 10% growth excluding Advocacy
- Q2 Adjusted EBITDA increased 8% YoY to $93 million
- Strong net new business of $117 million in Q2; $451 million LTM
- Significant improvement in cash flow from operations, up $122 million YoY
- $20 million in annualized cost savings achieved, ahead of schedule
- Q2 Net Loss of $5 million, increased from $3 million loss in prior year
- YTD Net Loss increased to $8 million from $4 million in prior year
- YTD Adjusted EBITDA decreased 2% versus prior year period
Insights
Stagwell delivered solid Q2 growth with significant cash flow improvement and cost savings progress, maintaining full-year guidance despite slight net loss.
Stagwell's Q2 results demonstrate encouraging momentum despite challenges. The company posted 8% net revenue growth to
While the company reported a
Cash flow management stands out as a major achievement, with year-to-date operating cash flow improving by
New business momentum remains strong with
Management's maintained 2025 guidance (
Overall, these results reflect a company successfully navigating industry transitions while improving operational efficiency and maintaining growth trajectory in core services.
Q2 YoY Revenue Growth of
Q2 YoY Net Revenue Growth excluding Advocacy of
Q2 Net Loss Attributable to Stagwell Inc. Common Shareholders of
Q2 EPS of
YTD Increase in Cash Flow from Operations of
Net New Business of
Reiterate Guidance for 2025 of Total Net Revenue Growth of ~
SECOND QUARTER RESULTS:
- Q2 Revenue of
$707 million 5% versus the prior year period; YTD Revenue of$1,359 million 1% versus the prior year period; - Q2 Revenue ex. Advocacy of
$651 million 9% versus the prior year period; YTD Revenue ex. Advocacy of$1,261 million 5% versus the prior year period; - Q2 Net Revenue of
$598 million 8% versus the prior year period; YTD Net Revenue of$1,162 million 7% versus the prior year period; - Q2 Net Revenue ex. Advocacy of
$560 million 10% versus the prior year period; YTD Net Revenue of$1,095 million 10% versus the prior year period; - Q2 Net Loss attributable to Stagwell Inc. Common Shareholders of
$5 million $3 million $8 million $4 million - Q2 Adjusted EBITDA of
$93 million 8% versus the prior year period; YTD Adjusted EBITDA of$173 million 2% versus the prior year period; - Q2 Adjusted EBITDA Margin of
16% on net revenue; YTD Adjusted EBITDA Margin of15% on net revenue; - Q2 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of
$(0.02) $(0.03) $(0.06) $(0.04) - Q2 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of
$0.17 $0.14 $0.29 $0.30 - YTD Net Cash provided by Operating Activities of
$55 million $68 million - Net new business of
$117 million $451 million
See "Non-GAAP Financial Measures" below for explanations and reconciliations of the Company's non-GAAP financial measures.
Mark Penn, Chairman and CEO of Stagwell, said, "With
Ryan Greene, Chief Financial Officer, commented: "I am proud to take on the role of Chief Financial Officer at Stagwell. The second quarter has seen us deliver strong results, hitting
Financial Outlook
2025 financial guidance is reiterated as follows:
- Total Net Revenue growth of approximately
8% - Adjusted EBITDA of
$410 million $460 million - Free Cash Flow Conversion in excess of
45% - Adjusted EPS of
$0.75 $0.88 - Guidance includes anticipated impact from acquisitions or dispositions.
* The Company has excluded a quantitative reconciliation with respect to the Company's 2025 guidance under the "unreasonable efforts" exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" below for additional information. |
Video Webcast
Management will host a video webcast on Thursday, July 31, 2025, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and six months ended June 30, 2025. The video webcast will be accessible at https://edge.media-server.com/mmc/p/fwa9mu68/. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.
A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.
Stagwell Inc.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 45+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
Contacts
For Investors:
Ben Allanson
IR@stagwellglobal.com
For Press:
Beth Sidhu
PR@stagwellglobal.com
Non-GAAP Financial Measures
In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following:
(1) Organic Net Revenue: "Organic net revenue growth" and "Organic net revenue decline" reflects the year-over-year change in the Company's reported net revenue attributable to the Company's management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company's reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company's reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity's prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity's prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity's prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity's prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company's reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to
(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.
(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.
(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.
(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. Free Cash Flow Conversion is the percentage of adjusted EBITDA.
Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company's representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company's beliefs and expectations, future financial performance, growth, and future prospects, the Company's strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as "ability," "aim," "anticipate," "assume," "believe," "build," "consider," "continue," "could," "develop," "drive," "estimate," "expect," "focus," "forecast," "future," "guidance," "intend," "likely," "maintain," "may," "ongoing,", "outlook," "plan," "possible," "potential," "probable," "project," "seek," "should," "target," "will," "would" or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.
Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company's control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:
- risks associated with international, national and regional unfavorable economic conditions, including the effect of changing tariff and other trade policies, inflation and other macroeconomic factors that could affect the Company or its clients;
- demand for the Company's services, which may precipitate or exacerbate other risks and uncertainties;
- inflation and actions taken by central banks to counter inflation;
- the Company's ability to attract new clients and retain existing clients;
- the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
- financial failure of the Company's clients;
- the Company's ability to retain and attract key employees;
- the Company's ability to compete in the markets in which it operates;
- the Company's ability to achieve its cost saving initiatives;
- the Company's implementation of strategic initiatives;
- the Company's ability to remain in compliance with its debt agreements and the Company's ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
- the Company's ability to manage its growth effectively;
- the Company's ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company's business capabilities and successfully integrate newly acquired businesses into the Company's operations, retain key employees, and realize cost savings, synergies and other related anticipated benefits within the expected time period;
- the Company's ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;
- the Company's ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
- the Company's use of artificial intelligence, including generative artificial intelligence;
- adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that recent or future changes in tax laws, potential changes to corporate tax rates in
the United States and disagreements with tax authorities on the Company's determinations that may result in increased tax costs; - adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material "emigration tax");
- the Company's ability to maintain an effective system of internal control over financial reporting, including the risk that the Company's internal controls will fail to detect misstatements in its financial statements;
- the Company's ability to accurately forecast its future financial performance and provide accurate guidance;
- the Company's ability to protect client data from security incidents or cyberattacks;
- economic disruptions resulting from war and other economic and geopolitical tensions (such as the ongoing military conflicts between
Russia andUkraine and in theMiddle East ), terrorist activities, natural disasters, public health events and tariff and trade policies; - stock price volatility; and
- foreign currency fluctuations.
Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2024 Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on March 11, 2025, and accessible on the SEC's website at www.sec.gov, under the caption "Risk Factors," and in the Company's other SEC filings.
SCHEDULE 1 | ||||||||||||||
STAGWELL INC. | ||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(amounts in thousands, except per share amounts) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Revenue | $ 706,818 | $ 671,168 | ||||||||||||
Operating Expenses | ||||||||||||||
Cost of services | 459,216 | 438,912 | 871,303 | 883,438 | ||||||||||
Office and general expenses | 183,061 | 168,133 | 362,423 | 331,476 | ||||||||||
Depreciation and amortization | 41,369 | 42,001 | 83,375 | 76,837 | ||||||||||
Impairment and other losses | — | 215 | — | 1,715 | ||||||||||
683,646 | 649,261 | 1,317,101 | 1,293,466 | |||||||||||
Operating Income | 23,172 | 21,907 | 41,457 | 47,761 | ||||||||||
Other income (expenses): | ||||||||||||||
Interest expense, net | (23,455) | (23,533) | (46,811) | (44,498) | ||||||||||
Foreign exchange, net | (1,338) | (1,355) | (118) | (3,613) | ||||||||||
Other, net | (360) | 193 | (111) | (1,074) | ||||||||||
(25,153) | (24,695) | (47,040) | (49,185) | |||||||||||
Loss before income taxes and equity in earnings of non-consolidated affiliates | (1,981) | (2,788) | (5,583) | (1,424) | ||||||||||
Income tax expense | 2,673 | 1,165 | 4,395 | 3,750 | ||||||||||
Loss before equity in earnings of non-consolidated affiliates | (4,654) | (3,953) | (9,978) | (5,174) | ||||||||||
Equity in income (loss) of non-consolidated affiliates | 20 | (1) | 19 | 507 | ||||||||||
Net loss | (4,634) | (3,954) | (9,959) | (4,667) | ||||||||||
Net (income) loss attributable to noncontrolling and redeemable noncontrolling interests | (627) | 989 | 1,781 | 420 | ||||||||||
Net loss attributable to Stagwell Inc. common shareholders | $ (5,261) | $ (2,965) | $ (8,178) | $ (4,247) | ||||||||||
Loss Per Common Share: | ||||||||||||||
Basic | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.04) | ||||||||||
Diluted | $ (0.02) | $ (0.03) | $ (0.06) | $ (0.04) | ||||||||||
Weighted Average Number of Common Shares Outstanding: | ||||||||||||||
Basic | 260,774 | 113,484 | 186,843 | 113,059 | ||||||||||
Diluted | 260,774 | 113,484 | 265,600 | 113,059 | ||||||||||
SCHEDULE 2 | ||||||||||||||||||||||||||||||
STAGWELL INC. | ||||||||||||||||||||||||||||||
UNAUDITED COMPONENTS OF NET REVENUE CHANGE | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||
Net Revenue - Components of Change | Change | |||||||||||||||||||||||||||||
Three Months | Foreign | Net | Organic (1) | Total Change | Three | Organic | Total | |||||||||||||||||||||||
Integrated Agencies Network | $ 321,870 | $ 744 | $ 9,037 | $ 13,237 | $ 23,018 | $ 344,888 | 4.1 % | 7.2 % | ||||||||||||||||||||||
Brand Performance Network | 157,108 | 2,289 | 142 | (4,671) | (2,240) | 154,868 | (3.0) % | (1.4) % | ||||||||||||||||||||||
Communications Network | 72,393 | 144 | 10,855 | (9,050) | 1,949 | 74,342 | (12.5) % | 2.7 % | ||||||||||||||||||||||
All Other | 3,021 | 74 | 17,118 | 3,818 | 21,010 | 24,031 | 126.4 % | 695.5 % | ||||||||||||||||||||||
$ 554,392 | $ 3,251 | $ 37,152 | $ 3,334 | $ 43,737 | $ 598,129 | 0.6 % | 7.9 % | |||||||||||||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue. |
SCHEDULE 3 | ||||||||||||||||||||||||||||||
STAGWELL INC. | ||||||||||||||||||||||||||||||
UNAUDITED COMPONENTS OF NET REVENUE CHANGE | ||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||
Net Revenue - Components of Change | Change | |||||||||||||||||||||||||||||
Six Months | Foreign | Net | Organic (1) | Total Change | Six Months | Organic | Total | |||||||||||||||||||||||
Integrated Agencies Network | $ 614,642 | $ (198) | $ 13,580 | $ 42,658 | $ 56,040 | $ 670,682 | 6.9 % | 9.1 % | ||||||||||||||||||||||
Brand Performance Network | 319,670 | 1,011 | 142 | (19,097) | (17,944) | 301,726 | (6.0) % | (5.6) % | ||||||||||||||||||||||
Communications Network | 139,881 | 101 | 25,203 | (23,845) | 1,459 | 141,340 | (17.0) % | 1.0 % | ||||||||||||||||||||||
All Other | 12,653 | (80) | 29,764 | 6,231 | 35,915 | 48,568 | 49.2 % | 283.8 % | ||||||||||||||||||||||
$ 1,086,846 | $ 834 | $ 68,689 | $ 5,947 | $ 75,470 | $ 1,162,316 | 0.5 % | 6.9 % | |||||||||||||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue. |
SCHEDULE 4 | ||||||||||||||||||||||
STAGWELL INC. | ||||||||||||||||||||||
UNAUDITED SEGMENT OPERATING RESULTS | ||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||
For the Three Months Ended June 30, 2025 | ||||||||||||||||||||||
Integrated | Brand | Communications | All Other | Corporate | Total | |||||||||||||||||
Net Revenue | $ 344,888 | $ 154,868 | $ 74,342 | $ 24,031 | $ — | $ 598,129 | ||||||||||||||||
Billable costs | 61,302 | 15,231 | 31,786 | 370 | — | 108,689 | ||||||||||||||||
Revenue | 406,190 | 170,099 | 106,128 | 24,401 | — | 706,818 | ||||||||||||||||
Billable costs | 61,302 | 15,231 | 31,786 | 370 | — | 108,689 | ||||||||||||||||
Staff costs | 205,975 | 100,260 | 44,812 | 17,245 | 12,978 | 381,270 | ||||||||||||||||
Administrative costs | 34,094 | 25,584 | 9,550 | 6,978 | (332) | 75,874 | ||||||||||||||||
Unbillable and other costs, net | 27,309 | 13,443 | 625 | 6,753 | — | 48,130 | ||||||||||||||||
Adjusted EBITDA (1) | 77,510 | 15,581 | 19,355 | (6,945) | (12,646) | 92,855 | ||||||||||||||||
Stock-based compensation | 12,288 | 809 | 739 | 167 | 5,951 | 19,954 | ||||||||||||||||
Depreciation and amortization | 20,102 | 8,145 | 4,972 | 4,927 | 3,223 | 41,369 | ||||||||||||||||
Deferred acquisition consideration | (4,292) | 2,812 | (2,376) | 636 | — | (3,220) | ||||||||||||||||
Other items, net (1) | 3,311 | 3,713 | 1,539 | 1,270 | 1,747 | 11,580 | ||||||||||||||||
Operating income (loss) | $ 46,101 | $ 102 | $ 14,481 | $ (13,945) | $ (23,567) | $ 23,172 | ||||||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. |
SCHEDULE 5 | ||||||||||||||||||||||
STAGWELL INC. | ||||||||||||||||||||||
UNAUDITED SEGMENT OPERATING RESULTS | ||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||
For the Six Months Ended June 30, 2025 | ||||||||||||||||||||||
Integrated | Brand | Communications | All Other | Corporate | Total | |||||||||||||||||
Net Revenue | $ 670,682 | $ 301,726 | $ 141,340 | $ 48,568 | $ — | |||||||||||||||||
Billable costs | 112,862 | 30,591 | 52,416 | 373 | — | 196,242 | ||||||||||||||||
Revenue | 783,544 | 332,317 | 193,756 | 48,941 | — | 1,358,558 | ||||||||||||||||
Billable costs | 112,862 | 30,591 | 52,416 | 373 | — | 196,242 | ||||||||||||||||
Staff costs | 405,857 | 196,710 | 89,389 | 32,700 | 24,876 | 749,532 | ||||||||||||||||
Administrative costs | 65,738 | 48,991 | 19,724 | 15,203 | 1,327 | 150,983 | ||||||||||||||||
Unbillable and other costs, net | 44,408 | 28,901 | 1,115 | 13,940 | — | 88,364 | ||||||||||||||||
Adjusted EBITDA (1) | 154,679 | 27,124 | 31,112 | (13,275) | (26,203) | 173,437 | ||||||||||||||||
Stock-based compensation | 16,433 | 2,177 | 1,432 | 396 | 11,059 | 31,497 | ||||||||||||||||
Depreciation and amortization | 41,466 | 15,867 | 10,147 | 9,228 | 6,667 | 83,375 | ||||||||||||||||
Deferred acquisition consideration | 1,571 | 1,530 | (1,163) | 1,499 | — | 3,437 | ||||||||||||||||
Other items, net (1) | 1,065 | 7,367 | 1,667 | 1,581 | 1,991 | 13,671 | ||||||||||||||||
Operating income (loss) | $ 94,144 | $ 183 | $ 19,029 | $ (25,979) | $ (45,920) | $ 41,457 | ||||||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. |
SCHEDULE 6 | ||||||||||||||||||||||
STAGWELL INC. | ||||||||||||||||||||||
UNAUDITED SEGMENT OPERATING RESULTS | ||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||
For the Three Months Ended June 30, 2024 | ||||||||||||||||||||||
Integrated | Brand | Communications | All Other | Corporate | Total | |||||||||||||||||
Net Revenue | $ 321,870 | $ 157,108 | $ 72,393 | $ 3,021 | $ — | $ 554,392 | ||||||||||||||||
Billable costs | 63,263 | 20,137 | 33,177 | 199 | — | 116,776 | ||||||||||||||||
Revenue | 385,133 | 177,245 | 105,570 | 3,220 | — | 671,168 | ||||||||||||||||
Billable costs | 63,263 | 20,137 | 33,177 | 199 | — | 116,776 | ||||||||||||||||
Staff costs | 195,193 | 99,264 | 41,131 | 7,607 | 12,154 | 355,349 | ||||||||||||||||
Administrative costs | 33,902 | 24,525 | 8,379 | (3,740) | 6,468 | 69,534 | ||||||||||||||||
Unbillable and other costs, net | 24,780 | 15,613 | 710 | 2,303 | — | 43,406 | ||||||||||||||||
Adjusted EBITDA (1) | 67,995 | 17,706 | 22,173 | (3,149) | (18,622) | 86,103 | ||||||||||||||||
Stock-based compensation | 4,849 | 1,445 | 827 | 252 | (1,498) | 5,875 | ||||||||||||||||
Depreciation and amortization | 19,472 | 11,715 | 3,090 | 4,944 | 2,780 | 42,001 | ||||||||||||||||
Deferred acquisition consideration | 2,531 | 1,272 | 3,433 | — | — | 7,236 | ||||||||||||||||
Impairment and other losses | — | — | — | — | 215 | 215 | ||||||||||||||||
Other items, net (1) | 4,029 | 3,268 | 390 | 430 | 752 | 8,869 | ||||||||||||||||
Operating income (loss) | $ 37,114 | $ 6 | $ 14,433 | $ (8,775) | $ (20,871) | $ 21,907 | ||||||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items. |
SCHEDULE 7 | ||||||||||||||||||||||
STAGWELL INC. | ||||||||||||||||||||||
UNAUDITED SEGMENT OPERATING RESULTS | ||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||
For the Six Months Ended June 30, 2024 | ||||||||||||||||||||||
Integrated | Brand | Communications | All Other | Corporate | Total | |||||||||||||||||
Net Revenue | $ 614,642 | $ 319,670 | $ 139,881 | $ 12,653 | $ — | |||||||||||||||||
Billable costs | 123,210 | 71,537 | 59,435 | 199 | — | 254,381 | ||||||||||||||||
Revenue | 737,852 | 391,207 | 199,316 | 12,852 | — | 1,341,227 | ||||||||||||||||
Billable costs | 123,210 | 71,537 | 59,435 | 199 | — | 254,381 | ||||||||||||||||
Staff costs | 381,727 | 197,695 | 80,395 | 15,428 | 22,261 | 697,506 | ||||||||||||||||
Administrative costs | 64,504 | 46,596 | 17,083 | (531) | 9,045 | 136,697 | ||||||||||||||||
Unbillable and other costs, net | 40,308 | 30,179 | 846 | 4,891 | — | 76,224 | ||||||||||||||||
Adjusted EBITDA (1) | 128,103 | 45,200 | 41,557 | (7,135) | (31,306) | 176,419 | ||||||||||||||||
Stock-based compensation | 14,170 | 3,488 | 1,876 | 350 | 2,107 | 21,991 | ||||||||||||||||
Depreciation and amortization | 38,853 | 19,229 | 5,984 | 7,365 | 5,406 | 76,837 | ||||||||||||||||
Deferred acquisition consideration | 4,576 | 495 | 2,319 | — | — | 7,390 | ||||||||||||||||
Impairment and other losses | 1,500 | — | — | — | 215 | 1,715 | ||||||||||||||||
Other items, net (1) | 9,540 | 8,287 | 672 | 604 | 1,622 | 20,725 | ||||||||||||||||
Operating income (loss) | $ 59,464 | $ 13,701 | $ 30,706 | $ (15,454) | $ (40,656) | $ 47,761 | ||||||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. |
SCHEDULE 8 | ||||||||||||
STAGWELL INC. | ||||||||||||
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) | ||||||||||||
(amounts in thousands, except per share amounts) | ||||||||||||
For the Three Months Ended June 30, 2025 | ||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||
Net income (loss) attributable to Stagwell Inc. common shareholders and adjusted net income | $ (5,261) | $ 50,331 | $ 45,070 | |||||||||
Weighted average number of shares outstanding | 260,774 | 7,550 | 268,324 | |||||||||
Diluted EPS and Adjusted Diluted EPS (1) | $ (0.02) | $ 0.17 | ||||||||||
Adjustments to Net income | ||||||||||||
Amortization | $ 35,593 | |||||||||||
Stock-based compensation | 19,954 | |||||||||||
Deferred acquisition consideration | (3,220) | |||||||||||
Other items, net | 11,580 | |||||||||||
63,907 | ||||||||||||
Adjusted tax expense | (13,576) | |||||||||||
$ 50,331 | ||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS. |
SCHEDULE 9 | ||||||||||||
STAGWELL INC. | ||||||||||||
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) | ||||||||||||
(amounts in thousands, except per share amounts) | ||||||||||||
For the Six Months Ended June 30, 2025 | ||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||
Net income (loss) attributable to Stagwell Inc. common shareholders | $ (8,178) | $ 93,283 | $ 85,105 | |||||||||
Net loss attributable to Class C shareholders | (6,637) | — | (6,637) | |||||||||
Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income | $ (14,815) | $ 93,283 | $ 78,468 | |||||||||
Weighted average number of common shares outstanding | 186,843 | 8,506 | 195,349 | |||||||||
Weighted average number of shares of Class C Common Stock outstanding | 78,757 | — | 78,757 | |||||||||
Weighted average number of shares outstanding | 265,600 | 8,506 | 274,106 | |||||||||
Diluted EPS and Adjusted Diluted EPS (1) | $ (0.06) | $ 0.29 | ||||||||||
Adjustments to Net Income (loss) | ||||||||||||
Amortization | $ 68,574 | |||||||||||
Stock-based compensation | 31,497 | |||||||||||
Deferred acquisition consideration | 3,437 | |||||||||||
Other items, net | 13,671 | |||||||||||
117,179 | ||||||||||||
Adjusted tax expense | (23,896) | |||||||||||
$ 93,283 | ||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS. |
SCHEDULE 10 | ||||||||||||
STAGWELL INC. | ||||||||||||
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) | ||||||||||||
(amounts in thousands, except per share amounts) | ||||||||||||
For the Three Months Ended June 30, 2024 | ||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||
Net income (loss) attributable to Stagwell Inc. common shareholders | $ (2,965) | $ 18,935 | $ 15,970 | |||||||||
Net income attributable to Class C shareholders | — | 22,828 | 22,828 | |||||||||
Net income (loss) attributable to Stagwell Inc. and Class C and adjusted net income | $ (2,965) | $ 41,763 | $ 38,798 | |||||||||
Weighted average number of common shares outstanding | 113,484 | 5,281 | 118,765 | |||||||||
Weighted average number of shares of Class C Common Stock outstanding | — | 151,649 | 151,649 | |||||||||
Weighted average number of shares outstanding | 113,484 | 156,930 | 270,414 | |||||||||
Diluted EPS and Adjusted Diluted EPS (1) | $ (0.03) | $ 0.14 | ||||||||||
Adjustments to Net income (loss) | ||||||||||||
Amortization | $ 35,008 | |||||||||||
Impairment and other losses | 215 | |||||||||||
Stock-based compensation | 5,875 | |||||||||||
Deferred acquisition consideration | 7,236 | |||||||||||
Other items, net | 8,869 | |||||||||||
57,203 | ||||||||||||
Adjusted tax expense | (12,905) | |||||||||||
44,298 | ||||||||||||
Net loss attributable to Class C shareholders | (2,535) | |||||||||||
$ 41,763 | ||||||||||||
Allocation of adjustments to Net income (loss) | ||||||||||||
Net income attributable to Stagwell Inc. common shareholders | $ 18,935 | |||||||||||
Net income attributable to Class C shareholders | 25,363 | |||||||||||
Net loss attributable to Class C shareholders | (2,535) | |||||||||||
22,828 | ||||||||||||
$ 41,763 | ||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS. |
SCHEDULE 11 | ||||||||||||
STAGWELL INC. | ||||||||||||
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) | ||||||||||||
(amounts in thousands, except per share amounts) | ||||||||||||
For the Six Months Ended June 30, 2024 | ||||||||||||
GAAP | Adjustments | Non-GAAP | ||||||||||
Net income (loss) attributable to Stagwell Inc. common shareholders | $ (4,247) | $ 38,415 | $ 34,168 | |||||||||
Net income attributable to Class C shareholders | — | 47,382 | 47,382 | |||||||||
Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income | $ (4,247) | $ 85,797 | $ 81,550 | |||||||||
Weighted average number of common shares outstanding | 113,059 | 4,760 | 117,819 | |||||||||
Weighted average number of shares of Class C Common Stock outstanding | — | 151,649 | 151,649 | |||||||||
Weighted average number of shares outstanding | 113,059 | 156,409 | 269,468 | |||||||||
Diluted EPS and Adjusted Diluted EPS (1) | $ (0.04) | $ 0.30 | ||||||||||
Adjustments to Net income (loss) | ||||||||||||
Amortization | $ 63,211 | |||||||||||
Impairment and other losses | 1,715 | |||||||||||
Stock-based compensation | 21,991 | |||||||||||
Deferred acquisition consideration | 7,390 | |||||||||||
Other items, net | 20,725 | |||||||||||
115,032 | ||||||||||||
Adjusted tax expense | (25,653) | |||||||||||
89,379 | ||||||||||||
Net loss attributable to Class C shareholders | (3,582) | |||||||||||
$ 85,797 | ||||||||||||
Allocation of adjustments to Net income | ||||||||||||
Net income attributable to Stagwell Inc. common shareholders | $ 38,415 | |||||||||||
Net income attributable to Class C shareholders - add-backs | 50,964 | |||||||||||
Net loss attributable to Class C shareholders | (3,582) | |||||||||||
47,382 | ||||||||||||
$ 85,797 | ||||||||||||
(1) | See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS. |
SCHEDULE 12 | ||||||
STAGWELL INC. | ||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS | ||||||
(amounts in thousands) | ||||||
June 30, 2025 | December 31, 2024 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ 181,309 | $ 131,339 | ||||
Accounts receivable, net | 769,291 | 716,415 | ||||
Expenditures billable to clients | 150,234 | 173,194 | ||||
Other current assets | 162,233 | 114,200 | ||||
Total Current Assets | 1,263,067 | 1,135,148 | ||||
Fixed assets, net | 65,267 | 72,706 | ||||
Right-of-use assets - operating leases | 219,717 | 219,400 | ||||
Goodwill | 1,600,714 | 1,554,146 | ||||
Other intangible assets, net | 866,780 | 836,783 | ||||
Deferred tax assets | 251,622 | 46,926 | ||||
Other assets | 50,008 | 43,112 | ||||
Total Assets | $ 4,317,175 | $ 3,908,221 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS ("RNCI"), AND SHAREHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable | $ 484,069 | $ 449,347 | ||||
Accrued media | 222,472 | 245,883 | ||||
Accruals and other liabilities | 319,724 | 265,356 | ||||
Advance billings | 339,623 | 294,609 | ||||
Current portion of lease liabilities - operating leases | 57,192 | 60,195 | ||||
Current portion of deferred acquisition consideration | 41,391 | 51,906 | ||||
Total Current Liabilities | 1,464,471 | 1,367,296 | ||||
Long-term debt | 1,464,242 | 1,353,624 | ||||
Long-term portion of deferred acquisition consideration | 50,272 | 50,209 | ||||
Long-term lease liabilities - operating leases | 231,152 | 245,397 | ||||
Deferred tax liabilities | 49,388 | 47,239 | ||||
Long-term tax receivable agreement ("TRA") liability | 223,445 | 25,493 | ||||
Other liabilities | 53,009 | 33,646 | ||||
Total Liabilities | 3,535,979 | 3,122,904 | ||||
Redeemable Noncontrolling Interests | 9,248 | 8,412 | ||||
Commitments, Contingencies and Guarantees | ||||||
Shareholders' Equity | ||||||
Common shares - Class A | 261 | 115 | ||||
Common shares - Class C | — | 2 | ||||
Paid-in capital | 765,898 | 343,647 | ||||
Retained earnings | 4,923 | 11,740 | ||||
Accumulated other comprehensive loss | (20,936) | (23,773) | ||||
Stagwell Inc. Shareholders' Equity | 750,146 | 331,731 | ||||
Noncontrolling interests | 21,802 | 445,174 | ||||
Total Shareholders' Equity | 771,948 | 776,905 | ||||
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity | $ 4,317,175 | $ 3,908,221 | ||||
SCHEDULE 13 | ||||||
STAGWELL INC. | ||||||
UNAUDITED SUMMARY CASH FLOW DATA | ||||||
(amounts in thousands) | ||||||
Six Months Ended June 30, | ||||||
2025 | 2024 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ (9,959) | $ (4,667) | ||||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||||||
Stock-based compensation | 31,497 | 21,991 | ||||
Depreciation and amortization | 83,375 | 76,837 | ||||
Amortization of right-of-use lease assets and lease liability interest | 34,075 | 39,534 | ||||
Impairment and other (gains) losses | (3,529) | 1,715 | ||||
Deferred income taxes | (1,424) | 3,797 | ||||
Adjustment to deferred acquisition consideration | 3,437 | 7,390 | ||||
Other, net | (7,517) | 3,850 | ||||
Changes in working capital: | ||||||
Accounts receivable | 7,941 | (30,157) | ||||
Expenditures billable to clients | 27,021 | (6,516) | ||||
Other assets | (41,375) | (5,776) | ||||
Accounts payable | 25,333 | (28,576) | ||||
Accrued expenses and other liabilities | (89,393) | (114,353) | ||||
Advance billings | 35,765 | 12,092 | ||||
Current portion of lease liabilities - operating leases | (40,509) | (41,924) | ||||
Deferred acquisition related payments | — | (2,855) | ||||
Net cash provided by (used in) operating activities | 54,738 | (67,618) | ||||
Cash flows from investing activities: | ||||||
Capitalized software | (29,241) | (17,076) | ||||
Capital expenditures | (11,595) | (13,990) | ||||
Acquisitions, net of cash acquired | 14,172 | (20,350) | ||||
Other | (8,272) | (767) | ||||
Net cash used in investing activities | (34,936) | (52,183) | ||||
Cash flows from financing activities: | ||||||
Repayment of borrowings under revolving credit facility | (925,000) | (761,000) | ||||
Proceeds from borrowings under revolving credit facility | 1,038,000 | 1,036,000 | ||||
Shares repurchased and cancelled | (67,504) | (86,934) | ||||
Distributions to noncontrolling interests | (4,761) | (22,483) | ||||
Payment of deferred consideration | (16,103) | (23,963) | ||||
Purchase of noncontrolling interest | — | (3,316) | ||||
Debt financing and other costs | (3,570) | — | ||||
Net cash provided by financing activities | 21,062 | 138,304 | ||||
Effect of exchange rate changes on cash and cash equivalents | 9,106 | (2,162) | ||||
Net increase in cash and cash equivalents | 49,970 | 16,341 | ||||
Cash and cash equivalents at beginning of period | 131,339 | 119,737 | ||||
Cash and cash equivalents at end of period | $ 181,309 | $ 136,078 | ||||
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SOURCE Stagwell Inc.
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