Stagwell (NASDAQ: STGW) grows Q1 2026 adjusted EPS 31% as revenue hits $704M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Stagwell Inc. reported Q1 2026 revenue of $704 million, up 8% year over year, with net revenue of $585 million, up 4%. Digital Transformation net revenue was $97 million, up 9%, with a two-year net revenue growth stack of 26% and 22% on an organic basis.
The company recorded a Q1 net loss attributable to common shareholders of $13 million, compared with $3 million a year earlier, or a loss per share of $(0.05) versus $(0.04). Adjusted EBITDA rose 9% to $90 million, for a 15% margin on net revenue, and adjusted EPS increased 31% to $0.17 from $0.13.
Net cash used in operating activities improved to $26 million from $60 million. Stagwell reported record net new business of $141 million in the quarter and $486 million over the last twelve months, and reduced its share count to 246 million at quarter-end. Management reiterated 2026 guidance for total net revenue growth of 8%–12%, adjusted EBITDA of $475–$525 million, free cash flow conversion of 50%–60%, and adjusted EPS of $0.98–$1.12.
Positive
- Strong non-GAAP profit growth: Q1 2026 adjusted EBITDA rose 9% year over year to $90 million with a 15.3% margin on net revenue, while adjusted EPS increased 31% to $0.17, indicating improving underlying profitability despite a GAAP net loss.
- Record new business and improving cash flow: Net new business reached a record $141 million in Q1, bringing last twelve-month net new business to $486 million, and net cash used in operating activities improved by $34 million year over year to $26 million.
- Clear 2026 guidance and cost savings progress: Management reiterated 2026 targets for 8%–12% total net revenue growth, $475–$525 million of adjusted EBITDA, 50%–60% free cash flow conversion, and $0.98–$1.12 adjusted EPS, while actioning $54 million of a planned $80–$100 million cost savings program.
Negative
- Wider GAAP net loss and lower operating income: Q1 2026 net loss attributable to common shareholders increased to $13 million from $3 million a year earlier, and operating income declined to $9.6 million from $18.3 million, showing weaker performance on a reported basis.
- Meaningful leverage and continued cash use: The company reported a net leverage ratio of 3.11x LTM adjusted EBITDA and used $26 million of net cash in operating activities in Q1 2026, indicating ongoing balance sheet and cash flow constraints despite year-over-year improvement.
Insights
Q1 shows solid revenue and non-GAAP profit growth, but GAAP losses and leverage remain watch points.
Stagwell delivered Q1 2026 revenue of $704.1M (up 8% YoY) and net revenue of $585.0M (up 4%). Growth was led by the Digital Transformation segment, where net revenue rose 9% and the two-year organic net revenue growth stack reached 22%, highlighting sustained momentum in technology-driven services.
Profitability on an adjusted basis improved: adjusted EBITDA increased 9% to $90.0M with a 15.3% margin on net revenue, and adjusted EPS climbed 31% to $0.17. However, GAAP operating income fell to $9.6M, and net loss attributable to common shareholders widened to $13.0M, reflecting higher costs and non-operating expenses such as interest and foreign exchange.
Cash generation and capital structure are key context. Net cash used in operating activities improved by $34M YoY to $26.5M, and the company continued cost actions, having executed $54M of a targeted $80–$100M savings program. Net leverage stood at 3.11% of LTM adjusted EBITDA, so management’s reiterated 2026 guidance for $475–$525M of adjusted EBITDA and 50%–60% free cash flow conversion will be important for future balance sheet flexibility as disclosed in the outlook.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $704.1M
Q1 2026 Net Revenue: $585.0M
Q1 2026 Adjusted EBITDA: $90.0M
+5 more
8 metrics
Q1 2026 Revenue
$704.1M
Three months ended March 31, 2026; up 8% vs. 2025
Q1 2026 Net Revenue
$585.0M
Three months ended March 31, 2026; up 4% year over year
Q1 2026 Adjusted EBITDA
$90.0M
Up 9% year over year; 15.3% margin on net revenue
Q1 2026 Net Loss to Common
$13.0M
Net loss attributable to Stagwell Inc. common shareholders
Q1 2026 GAAP Diluted EPS
$(0.05)
Loss per common share, diluted, for Q1 2026
Q1 2026 Adjusted EPS
$0.17
Adjusted diluted EPS, up 31% from $0.13 in Q1 2025
Q1 2026 Net New Business
$141M
Record quarterly net new business; LTM $486M
2026 Adjusted EBITDA Guidance
$475–$525M
Reiterated full-year 2026 outlook range
Key Terms
Non-GAAP Financial Measures, Adjusted EBITDA, Organic Net Revenue, Net New Business, +2 more
6 terms
Non-GAAP Financial Measures financial
"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.""
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Adjusted EBITDA financial
"Q1 Adjusted EBITDA Growth YoY of 9% to $90 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Organic Net Revenue financial
"Two-Year Organic Net Revenue Growth Stack for Digital Transformation of 22%"
Organic net revenue is the amount a company earns from its regular sales after returns and discounts, measured while excluding effects from acquisitions, divestitures and similar one-time or structural changes (and often currency swings). Think of it like tracking how much an existing store's receipts grew this year without counting sales from newly opened locations or bought competitors; investors use it to judge true customer demand and the health of the underlying business.
Net New Business financial
"Record Net New Business of $141 million in Q1; LTM Net New Business of $486 million"
Free Cash Flow Conversion financial
"Free Cash Flow Conversion of 50% to 60%"
Free cash flow conversion measures how effectively a company turns its reported profits into actual cash that can be used for growth, debt repayment, or dividends. It compares the cash generated after expenses to the company's net income, similar to how a person might compare their savings to their paycheck. High conversion indicates the company is efficient at translating profits into cash, which is important for investors assessing its financial health and flexibility.
Tax Receivable Agreement financial
"Tax Receivables Agreement payment | (2,554)"
A contract in which a company agrees to pay a specified party (often former owners after a spinoff or IPO) a share of future tax savings the company realizes. Think of it like agreeing to share a future tax refund with someone who helped create the conditions for that refund. For investors it matters because those payments reduce the cash the company can use for dividends, buybacks, or reinvestment, and therefore affect valuation and returns.
Earnings Snapshot
Revenue: $704.1M · Guidance included
Q1 2026
Revenue
$704.1M
+8% YoY
Net income (loss) attributable to common shareholders
$(13.0M)
worse than $(2.9M) prior-year loss
GAAP diluted EPS
$(0.05)
vs. $(0.04) in Q1 2025
Adjusted EPS
$0.17
+31% YoY from $0.13
Adjusted EBITDA
$90.0M
+9% YoY
Guidance
For 2026, Stagwell guides to total net revenue growth of 8%–12%, adjusted EBITDA of $475–$525M, free cash flow conversion of 50%–60%, and adjusted EPS of $0.98–$1.12.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) — April 30, 2026
(Exact Name of Registrant as Specified in its Charter)
| (Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices and zip code)
(646 ) 429-1800
(Registrant’s Telephone Number)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 30, 2026, Stagwell Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2026. A copy of this earnings release is attached as Exhibit 99.1 hereto.
The foregoing information (including Exhibit 99.1) is being furnished under “Item 2.02 – Results of Operations and Financial Condition.” Such information (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
On April 30, 2026, the Company will host a conference call in which its financial results for the three months ended March 31, 2026 will be discussed. The presentation to be used in connection with the call is attached as Exhibit 99.2 hereto.
The foregoing information (including Exhibit 99.2) is being furnished under “Item 7.01 – Regulation FD Disclosure.” Such information (including Exhibit 99.2) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press release dated April 30, 2026, relating to the Company’s results for the three months ended March 31, 2026.
99.2 Investor presentation dated April 30, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed by the undersigned hereunto duly authorized.
| Date: April 30, 2026 | Stagwell Inc. | |||||||
| By: | /s/ Ryan J. Greene | |||||||
| Ryan J. Greene | ||||||||
| Chief Financial Officer | ||||||||
FOR IMMEDIATE ISSUE
STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2026
Q1 YoY Revenue Growth of 8%; Q1 YoY Net Revenue Growth of 4%
Q1 YoY Digital Transformation Net Revenue Growth of 9%; Two-Year Digital Transformation Net Revenue Growth Stack of 26%
Q1 EPS of $(0.05); Q1 Adjusted EPS Growth YoY of 31% to $0.17
Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $13 million; Q1 Adjusted EBITDA Growth YoY of 9% to $90 million
YoY Increase in Cash Flow from Operations of $34 million
Record Net New Business of $141 million in Q1; LTM Net New Business of $486 million
Reiterate Guidance for 2026 of Total Net Revenue Growth of 8% to 12%; Adjusted EBITDA of $475 million to $525 million; Free Cash Flow Conversion of 50% to 60%
New York, NY, April 30, 2026 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three months ended March 31, 2026.
FIRST QUARTER RESULTS:
•Q1 Revenue of $704 million, an increase of 8% versus the prior year period;
•Q1 Net Revenue of $585 million, an increase of 4% versus the prior year period, in-line with budget;
•Q1 Digital Transformation Net Revenue of $97 million, an increase of 9% versus the prior year period;
•Two-Year Net Revenue Growth Stack for Digital Transformation of 26%, Two-Year Organic Net Revenue Growth Stack for Digital Transformation of 22%;
•Q1 Net Loss attributable to Stagwell Inc. Common Shareholders of $13 million versus $3 million in the prior year period;
•Q1 Adjusted EBITDA of $90 million, an increase of 9% versus the prior year period;
•Q1 Adjusted EBITDA Margin of 15% on net revenue;
•Q1 Loss Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.05) versus $(0.04) in the prior year period;
•Q1 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.17 versus $0.13 in the prior year period;
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•YTD Net Cash used in Operating Activities of $26 million versus $60 million in the prior year period;
•Net new business of $141 million in the first quarter, last twelve-month net new business of $486 million
See “Non-GAAP Financial Measures” below for explanations and reconciliations of the Company’s non-GAAP financial measures.
“Stagwell continues to be on a path for a great 2026, bolstered by record new wins, its first government contracts, and its pivot to delivering agentic applications for the marketing industry,” said Mark Penn, Chairman and CEO of Stagwell. “On a two-year stack, our Digital Transformation segment is accelerating to 22% organic net revenue growth as we apply AI to drive industry-leading results for our clients.”
Ryan Greene, Chief Financial Officer, commented: “At the same time as we expanded our top and bottom lines, we controlled costs to grow adjusted EBITDA 9% year-over-year to $90 million, landed a positive outlook from a ratings agency, and shrunk our share count to under 250 million as we grew our adjusted EPS by 31% to $0.17. We remain firmly on course to deliver our full-year and free cash flow conversion guidance.”
Financial Outlook
2026 financial guidance is reiterated as follows:
•Total Net Revenue growth of 8% to 12%
•Adjusted EBITDA of $475 million to $525 million
•Free Cash Flow Conversion of 50% to 60%
•Adjusted EPS of $0.98 - $1.12
•Guidance includes anticipated impact from acquisitions or dispositions.
| * The Company has excluded a quantitative reconciliation with respect to the Company’s 2026 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, April 30, 2026, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three months ended March 31, 2026. The video webcast will be accessible at https://edge.media-server.com/mmc/p/rb7nnuq2/. 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.
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Contacts
For Investors:
Ben Allanson
IR@stagwellglobal.com
For Press:
Lena Petersen
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 current period reported revenue as the impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present an amount equal to the entity’s current year net revenue for the same period during which we didn’t own the entity in the prior year as the 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 U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.
(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 (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense to achieve operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, impairment and other losses, and other items. Other items primarily includes restructuring, certain system implementation, working capital administrative fees and acquisition-related expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating Income (Loss), as Net Income (Loss) is not a relevant reportable segment financial metric.
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(4) Adjusted Diluted EPS: is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income (loss) attributable to Class C shareholders, excluding the impact of amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), based on total consolidated amounts, then allocated to Stagwell Inc. common shareholders and Class C shareholders, based on their respective income allocation percentage using a normalized effective income tax rate divided by (ii) the diluted weighted average shares outstanding. The diluted weighted average shares outstanding is calculated as (a) the diluted weighted average number of common shares outstanding plus (b) the shares of Class C Common Stock as if converted to shares of Class A Common Stock if not included because they were anti-dilutive.
(5) Free Cash Flow: defined as consolidated net cash flow from operations less cash outflow from capital expenditures and capitalized software, excluding material nonrecurring capital purchases. 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.
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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,” “better,” “build,” “consider,” “continue,” “could,” “develop,” “drive,” “enhance,” “estimate,” “expect,” “focus,” “forecast,” “future,” “grow,” “guidance,” “improve,” “intend,” “likely,” “maintain,” “may,” “ongoing,” “outlook,” “plan,” “position,” “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 tariffs 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, deferred acquisition consideration and profit interests;
•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;
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•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 in Iran and the Middle East, and between Russia and Ukraine), terrorist activities, natural disasters, public health events, and tariff and trade policies;
•stock price volatility; and
•foreign currency fluctuations.
Investors should carefully consider these risks factors, the additional risk factors outlined under the caption “Risk Factors” in this Form 10-K, and in the Company’s other filings with the Securities and Exchange Commission (the“SEC”) which are accessible on the SEC’s website at www.sec.gov.
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SCHEDULE 1
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | 704,143 | $ | 651,740 | |||||||
| Operating expenses | |||||||||||
| Cost of services | 459,531 | 412,087 | |||||||||
| Office and general expenses | 190,639 | 179,362 | |||||||||
| Depreciation and amortization | 44,331 | 42,006 | |||||||||
| 694,501 | 633,455 | ||||||||||
| Operating Income | 9,642 | 18,285 | |||||||||
| Other income (expenses): | |||||||||||
| Interest expense, net | (23,266) | (23,356) | |||||||||
| Foreign exchange, net | (3,021) | 1,220 | |||||||||
Other, net | (69) | 249 | |||||||||
| (26,356) | (21,887) | ||||||||||
Loss before income taxes and equity in earnings of non-consolidated affiliates | (16,714) | (3,602) | |||||||||
Income tax (benefit) expense | (2,888) | 1,722 | |||||||||
| Loss before equity in earnings of non-consolidated affiliates | (13,826) | (5,324) | |||||||||
| Equity in loss of non-consolidated affiliates | (121) | (1) | |||||||||
| Net loss | (13,947) | (5,325) | |||||||||
| Net loss attributable to noncontrolling and redeemable noncontrolling interests | 974 | 2,408 | |||||||||
| Net loss attributable to Stagwell Inc. common shareholders | $ | (12,973) | $ | (2,917) | |||||||
| Loss per common share: | |||||||||||
| Basic | $ | (0.05) | $ | (0.03) | |||||||
| Diluted | $ | (0.05) | $ | (0.04) | |||||||
| Weighted average number of common shares outstanding: | |||||||||||
| Basic | 250,766 | 112,088 | |||||||||
| Diluted | 250,766 | 263,737 | |||||||||
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SCHEDULE 2
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED COMPONENTS OF NET REVENUE CHANGE
(amounts in thousands)
| Net Revenue - Components of Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | Foreign Currency | Net Acquisitions (Divestitures) | Organic (1) | Total Change | Three Months Ended March 31, 2026 | Organic | Total | ||||||||||||||||||||||||||||||||||||||||
| Marketing Services | $ | 215,174 | $ | 2,637 | $ | (876) | $ | 641 | $ | 2,402 | $ | 217,576 | 0.3 | % | 1.1 | % | |||||||||||||||||||||||||||||||
| Digital Transformation | 88,504 | (134) | 3,227 | 4,912 | 8,005 | 96,509 | 5.6 | % | 9.0 | % | |||||||||||||||||||||||||||||||||||||
| Media & Commerce | 146,188 | 2,358 | 1,965 | (1,016) | 3,307 | 149,495 | (0.7) | % | 2.3 | % | |||||||||||||||||||||||||||||||||||||
| Communications | 90,981 | 739 | 240 | 4,814 | 5,793 | 96,774 | 5.3 | % | 6.4 | % | |||||||||||||||||||||||||||||||||||||
| The Marketing Cloud | 25,155 | 1,468 | — | (124) | 1,344 | 26,499 | (0.5) | % | 5.3 | % | |||||||||||||||||||||||||||||||||||||
| Corporate, eliminations and other | (1,815) | — | — | (414) | (414) | (2,229) | 22.8 | % | NM | ||||||||||||||||||||||||||||||||||||||
| $ | 564,187 | $ | 7,068 | $ | 4,556 | $ | 8,813 | $ | 20,437 | $ | 584,624 | 1.6 | % | 3.6 | % | ||||||||||||||||||||||||||||||||
(1) See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue.
Page 8
SCHEDULE 3
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)
For the Three Months Ended March 31, 2026
| Marketing Services | Digital Transformation | Media & Commerce | Communications | The Marketing Cloud | Corporate, eliminations and other | Total | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 250,778 | $ | 101,466 | $ | 174,511 | $ | 153,102 | $ | 26,515 | $ | (2,229) | $ | 704,143 | |||||||||||||||||||||||||||
| Billable costs | 33,202 | 4,957 | 25,016 | 56,328 | 16 | — | 119,519 | ||||||||||||||||||||||||||||||||||
Net revenue | 217,576 | 96,509 | 149,495 | 96,774 | 26,499 | (2,229) | 584,624 | ||||||||||||||||||||||||||||||||||
| Staff costs | 132,189 | 64,567 | 97,225 | 56,950 | 16,803 | 12,452 | 380,186 | ||||||||||||||||||||||||||||||||||
| Administrative costs | 22,732 | 6,388 | 23,173 | 12,747 | 5,190 | 4,132 | 74,362 | ||||||||||||||||||||||||||||||||||
| Unbillable and other costs, net | 17,680 | 123 | 13,682 | 2,024 | 6,882 | — | 40,391 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (1) | 44,975 | 25,431 | 15,415 | 25,053 | (2,376) | (18,813) | 89,685 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | 5,003 | 1,037 | 1,144 | 2,397 | 115 | 4,552 | 14,248 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 12,482 | 5,848 | 7,915 | 6,858 | 6,728 | 4,500 | 44,331 | ||||||||||||||||||||||||||||||||||
| Deferred acquisition consideration | — | 3,153 | 7,101 | — | — | — | 10,254 | ||||||||||||||||||||||||||||||||||
Other items, net (1) | 2,823 | 1,343 | 3,159 | 1,413 | 656 | 1,816 | 11,210 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 24,667 | $ | 14,050 | $ | (3,904) | $ | 14,385 | $ | (9,875) | $ | (29,681) | $ | 9,642 | |||||||||||||||||||||||||||
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.
Page 9
SCHEDULE 4
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)
For the Three Months Ended March 31, 2025
| Marketing Services | Digital Transformation | Media & Commerce | Communications | The Marketing Cloud | Corporate, eliminations and other | Total | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 247,996 | $ | 90,887 | $ | 160,422 | $ | 129,088 | $ | 25,162 | $ | (1,815) | $ | 651,740 | |||||||||||||||||||||||||||
| Billable costs | 32,822 | 2,383 | 14,234 | 38,107 | 7 | — | 87,553 | ||||||||||||||||||||||||||||||||||
Net revenue | 215,174 | 88,504 | 146,188 | 90,981 | 25,155 | (1,815) | 564,187 | ||||||||||||||||||||||||||||||||||
| Staff costs | 127,889 | 59,227 | 94,948 | 58,312 | 17,337 | 10,549 | 368,262 | ||||||||||||||||||||||||||||||||||
| Administrative costs | 26,654 | 5,441 | 22,413 | 12,996 | 5,657 | 237 | 73,398 | ||||||||||||||||||||||||||||||||||
| Unbillable and other costs, net | 16,404 | 762 | 15,495 | 2,081 | 5,492 | — | 40,234 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA (1) | 44,227 | 23,074 | 13,332 | 17,592 | (3,331) | (12,601) | 82,293 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | 2,481 | 1,387 | 1,323 | 1,033 | 211 | 5,108 | 11,543 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 14,314 | 5,445 | 7,148 | 6,596 | 5,058 | 3,445 | 42,006 | ||||||||||||||||||||||||||||||||||
| Deferred acquisition consideration | 2,583 | 3,280 | (1,282) | 1,213 | 863 | — | 6,657 | ||||||||||||||||||||||||||||||||||
Other items, net (1) | (2,543) | 226 | 3,931 | 409 | 114 | 1,665 | 3,802 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) | $ | 27,392 | $ | 12,736 | $ | 2,212 | $ | 8,341 | $ | (9,577) | $ | (22,819) | $ | 18,285 | |||||||||||||||||||||||||||
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items.
Page 10
SCHEDULE 5
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)
For the Three Months Ended March 31, 2026
| GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
Net income (loss) attributable to Stagwell Inc. common shareholders | $ | (12,973) | $ | 56,168 | $ | 43,195 | ||||||||||||||
Diluted - Weighted average number of common shares outstanding | 250,766 | — | 250,766 | |||||||||||||||||
Diluted EPS and Adjusted Diluted EPS (1) | $ | (0.05) | $ | 0.17 | ||||||||||||||||
Adjustments to Net income (loss) | ||||||||||||||||||||
| Amortization | $ | 38,918 | ||||||||||||||||||
| Stock-based compensation | 14,248 | |||||||||||||||||||
| Deferred acquisition consideration | 10,254 | |||||||||||||||||||
| Other items, net | 11,210 | |||||||||||||||||||
| 74,630 | ||||||||||||||||||||
Adjustment to GAAP income tax expense(2) | (18,462) | |||||||||||||||||||
| $ | 56,168 | |||||||||||||||||||
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
(2) Represents the difference between the income tax benefit of $2.9 million at an effective tax rate of 17.3% on a GAAP basis and the income tax expense of $15.6 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.
Page 11
SCHEDULE 6
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)
For the Three Months Ended March 31, 2025
| GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
Net income (loss) attributable to Stagwell Inc. common shareholders | $ | (2,917) | $ | 18,988 | $ | 16,071 | ||||||||||||||
Net income (loss) attributable to Class C shareholders | (6,637) | 25,222 | 18,585 | |||||||||||||||||
Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income | $ | (9,554) | $ | 44,210 | $ | 34,656 | ||||||||||||||
Diluted - Weighted average number of common shares outstanding | 112,088 | — | 112,088 | |||||||||||||||||
| Weighted average number of shares of Class C Common Stock outstanding | 151,649 | — | 151,649 | |||||||||||||||||
Diluted - Weighted average number of shares outstanding | 263,737 | — | 263,737 | |||||||||||||||||
Diluted EPS and Adjusted Diluted EPS (1) | $ | (0.04) | $ | 0.13 | ||||||||||||||||
Adjustments to Net income (loss) | ||||||||||||||||||||
Amortization | $ | 32,981 | ||||||||||||||||||
| Stock-based compensation | 11,543 | |||||||||||||||||||
| Deferred acquisition consideration | 6,657 | |||||||||||||||||||
| Other items, net | 3,802 | |||||||||||||||||||
| 54,983 | ||||||||||||||||||||
Adjustment to GAAP income tax expense(2) | (10,773) | |||||||||||||||||||
| $ | 44,210 | |||||||||||||||||||
(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
(2) Represents the difference between the income tax expense of $1.7 million at an effective tax rate of (47.8)% on a GAAP basis and the income tax expense of $12.5 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.
Page 12
SCHEDULE 7
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 114,935 | $ | 104,537 | |||||||
| Accounts receivable, net | 727,583 | 735,752 | |||||||||
| Expenditures billable to clients | 170,293 | 164,694 | |||||||||
| Other current assets | 202,210 | 157,309 | |||||||||
| Total current assets | 1,215,021 | 1,162,292 | |||||||||
| Fixed assets, net | 71,069 | 73,081 | |||||||||
| Right-of-use assets - operating leases | 202,796 | 213,576 | |||||||||
| Goodwill | 1,596,242 | 1,595,238 | |||||||||
| Other intangible assets, net | 822,840 | 834,248 | |||||||||
| Deferred tax assets | 280,064 | 281,057 | |||||||||
| Other assets | 55,005 | 55,055 | |||||||||
| Total assets | $ | 4,243,037 | $ | 4,214,547 | |||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS ("RNCI"), AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 526,097 | $ | 548,320 | |||||||
| Accrued media | 207,082 | 239,490 | |||||||||
| Accruals and other liabilities | 266,081 | 291,554 | |||||||||
| Advance billings | 392,959 | 329,815 | |||||||||
| Current portion of lease liabilities - operating leases | 54,331 | 55,386 | |||||||||
| Current portion of deferred acquisition consideration | 22,303 | 15,446 | |||||||||
| Total current liabilities | 1,468,853 | 1,480,011 | |||||||||
| Long-term debt | 1,439,736 | 1,326,013 | |||||||||
| Long-term portion of deferred acquisition consideration | 27,755 | 24,598 | |||||||||
| Long-term lease liabilities - operating leases | 213,807 | 224,397 | |||||||||
| Deferred tax liabilities | 52,813 | 54,726 | |||||||||
| Long-term tax receivable agreement liability | 252,390 | 252,390 | |||||||||
| Other liabilities | 40,858 | 51,077 | |||||||||
| Total liabilities | 3,496,212 | 3,413,212 | |||||||||
| Redeemable noncontrolling interests | 24,317 | 24,968 | |||||||||
| Commitments, contingencies and guarantees | |||||||||||
| Shareholders' equity | |||||||||||
| Common shares - Class A | 246 | 252 | |||||||||
| Paid-in capital | 711,490 | 744,463 | |||||||||
| Retained earnings | 20,082 | 32,930 | |||||||||
| Accumulated other comprehensive loss | (26,910) | (19,252) | |||||||||
| Stagwell Inc. shareholders' equity | 704,908 | 758,393 | |||||||||
| Noncontrolling interests | 17,600 | 17,974 | |||||||||
| Total shareholders' equity | 722,508 | 776,367 | |||||||||
Total liabilities, RNCI, and shareholders’ equity | $ | 4,243,037 | $ | 4,214,547 | |||||||
Page 13
SCHEDULE 8
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED SUMMARY CASH FLOW DATA
(amounts in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (13,947) | $ | (5,325) | |||||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||
| Stock-based compensation | 14,248 | 11,543 | |||||||||
| Depreciation and amortization | 44,331 | 42,006 | |||||||||
Amortization of right-of-use lease assets and lease liability interest | 16,102 | 17,118 | |||||||||
| Lease termination gain | — | (3,529) | |||||||||
| Deferred income taxes | (635) | (747) | |||||||||
| Adjustment to deferred acquisition consideration | 10,254 | 6,657 | |||||||||
| Other, net | 1,308 | (2,060) | |||||||||
| Changes in working capital: | |||||||||||
| Accounts receivable | (1,993) | (44,701) | |||||||||
| Expenditures billable to clients | (5,925) | 11,095 | |||||||||
| Other current assets | (62,850) | (32,778) | |||||||||
| Accounts payable | (18,006) | (35,287) | |||||||||
| Accrued expenses and other liabilities | (55,613) | (19,075) | |||||||||
| Advance billings | 63,071 | 15,628 | |||||||||
| Current portion of lease liabilities - operating leases | (16,831) | (20,558) | |||||||||
Net cash used in operating activities | (26,486) | (60,013) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capitalized software | (22,402) | (11,966) | |||||||||
| Capital expenditures | (10,665) | (5,774) | |||||||||
| Acquisitions, net of cash acquired | 355 | (1,090) | |||||||||
| Other | (325) | (1,529) | |||||||||
Net cash used in investing activities | (33,037) | (20,359) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repayment of borrowings under revolving credit facility | (469,000) | (432,000) | |||||||||
| Proceeds from borrowings under revolving credit facility | 582,000 | 543,000 | |||||||||
| Shares repurchased and cancelled | (40,728) | (11,068) | |||||||||
| Distributions to noncontrolling interests | (366) | (581) | |||||||||
| Payment of deferred consideration | — | (16,103) | |||||||||
| Tax Receivables Agreement payment | (2,554) | — | |||||||||
Net cash provided by financing activities | 69,352 | 83,248 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 569 | 3,438 | |||||||||
| Net increase in cash and cash equivalents | 10,398 | 6,314 | |||||||||
| Cash and cash equivalents at beginning of period | 104,537 | 131,339 | |||||||||
| Cash and cash equivalents at end of period | $ | 114,935 | $ | 137,653 | |||||||
Page 14
First Quarter 2026 EARNINGS PRESENTATION APRIL 30 | 2026
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,” “better,” “build,” “consider,” “continue,” “could,” “develop,” “drive,” “enhance,” “estimate,” “expect,” “focus,” “forecast,” “future,” “grow,” “guidance,” “improve,” “intend,” “likely,” “maintain,” “may,” “ongoing,” “outlook,” “plan,” “position,” “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 tariffs 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, deferred acquisition consideration and profit interests; • 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 in Iran and the Middle East, and between Russia and Ukraine), 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 2025 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2026, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings. FORWARD LOOKING STATEMENTS & OTHER INFORMATION 2
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES 3 In addition to its reported results, Stagwell Inc. has included in this earnings presentation 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: Pro Forma Results: The Pro Forma amounts presented for each period were prepared by combining the historical standalone statements of operations for each of legacy MDC and SMG. The unaudited pro forma results are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or consolidated financial condition would have been had the combination actually occurred on the date indicated, nor do they purport to project the future consolidated results of operations or consolidated financial condition for any future period or as of any future date. The Company has excluded a quantitative reconciliation of Adjusted Pro Forma EBITDA to net income under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. 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 current period reported revenue as the impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present an amount equal to the entity’s current year net revenue for the same period during which we didn’t own the entity in the prior year as the 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 U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates. 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 (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense to achieve operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, impairment and other losses, and other items. Other items primarily includes restructuring, certain system implementation, working capital administrative fees and acquisition-related expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating Income (Loss), as Net Income (Loss) is not a relevant reportable segment financial metric. 4. Adjusted Diluted EPS” is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income (loss) attributable to Class C shareholders, excluding the impact of amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), based on total consolidated amounts, then allocated to Stagwell Inc. common shareholders and Class C shareholders, based on their respective income allocation percentage using a normalized effective income tax rate divided by (ii) the diluted weighted average shares outstanding. The diluted weighted average shares outstanding is calculated as (a) the diluted weighted average number of common shares outstanding plus (b) the shares of Class C Common Stock as if converted to shares of Class A Common Stock if not included because they were anti-dilutive. 5. Free Cash Flow: defined as consolidated net cash flow from operations less cash outflow from capital expenditures and capitalized software, excluding material nonrecurring capital purchases. Free Cash Flow Conversion is the percentage of adjusted EBITDA. 6. Financial Guidance: The Company provides guidance on a non-GAAP basis as it cannot predict certain elements which are included in reported GAAP results. Included in this earnings presentation are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.
4 FINANCIAL Outlook Reiterate Full-Year 2026 Outlook Total Net Revenue Growth8% - 12% Adjusted EBITDA$475M - $525M EBITDA Conversion on Free Cash Flow50% - 60% In Adjusted Earnings Per Share$0.98 - $1.12 Note: Guidance as of 04/30/2026. The Company has excluded a quantitative reconciliation with respect to the Company’s 2026 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" on previous slide for additional information on definitions for Total Net Revenue, Adjusted EBITDA, Adjusted Diluted Earnings Per Share, and Free Cash Flow. Please refer to our investor website at stagwellglobal.com/investors for information on Forward Looking Statements and risk factors outlined in our 2025 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 13 2026, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.
F I R S T Q U A R T E R H I G H L I G H T S NET REVENUE: $ 585M | NET LEVERAGE RATIO: 3.11x | ADJ. EBITDA: $90M Investing IN THE BUSINESS Accelerating MOMENTUM Improving CASH & COSTS Continuing NEW BUSINESS MOMENTUM Expanded relationship with The Trade Desk to adopt agentic Koa agents aiding in programmatic media buy Instituted client accountability program powered by AI, decreasing client churn across the business by more than 10% YoY Repurchased 7.3M shares in 1Q26 bringing share count down to 246M at quarter close, approximately 19M lower than in April 2025 Strengthened GTM team, appointing Michael Twedell as SVP, Enterprise AI Solutions and Nicole Souza as Chief Growth Officer for North America Record $141M of net new business, Bringing LTM NNB to $486M Secured multiple high profile new customer wins and expansions with leading companies including Adobe, Google, and Indeed Commitments from 3 customers for The Machine including with Con Edison, Microsoft and a global spirits brand Top 100 customers grew 15% YoY in 1Q26 Post 1Q close, won largest ever government mandate Revenue growth of 8% YoY to $704M, Net revenue growth of 4% YoY to $585M Performance driven by net revenue growth of 9% in Digital Transformation; Organic two- year stack of more than 22% continues improving trend and demonstrates accelerating momentum Communications returned to 6% growth in 1Q26 ahead of political super-cycle kicking off mid-year 1Q26 adjusted EPS grew 31% to $0.17 Adjusted EBITDA grew 9% to $90M, a 15% margin, 75bps higher than 1Q25 Cash Flow from Operations improved $34M YoY Labor Ratio in 1Q26 stands at 63.9%, an improvement of 110bps versus the prior year period Actioned $54 million to date of the $80-$100M of cost savings by YE26 announced in April 2025 Note: Net Leverage Ratio defined as Net Debt divided by LTM Adjusted EBITDA.
S U M M A R Y C O M B I N E D F I N A N C I A L S Note: Figures may not foot due to rounding. Three Months Ended March 31, 20252026 $651,740$704,143Revenue 87,553119,519Billable Costs $564,187$584,624Net Revenue 368,262380,186Staff costs 73,39874,362Administrative costs 40,23440,391Unbillable and other costs, net $82,293$89,685Adjusted EBITDA 11,54314,248Stock-based compensation 42,00644,331Depreciation and amortization 6,65710,254Deferred acquisition consideration 3,80211,210Other items, net $18,285$9,642Operating income 14.6%15.3%Adjusted EBITDA margin (on net revenue) 6 $ in Thousands
1 Q 2 6 N E T R E V E N U E Note: Figures may not foot due to rounding. Three Months Ended March 31, 2026 ChangeNet Revenue $564,187March 31, 2025 1.6%8,813Organic net revenue 0.8%4,556Acquisitions (divestitures), net 1.3%7,068Foreign currency 3.6%$20,437Total Change $584,624March 31, 2026 7 $ in Thousands
1 Q 2 6 N E T R E V E N U E B Y G E O G R A P H Y Note: Figures may not foot due to rounding. 1Q 8 1Q26 Net Revenue Growth Organic Net Revenue Growth 3.1%3.3%United States 7.0%(2.0)%EMEA 1.8%(10.0)%Rest of World 3.6%1.6%TOTAL 78% 7% 16% % OF NET REVENUE
G L O B A L N E T W O R K 9 North America Latin America Europe Asia Pacific • Australia • China • Hong Kong • India • Indonesia • Japan • Malaysia • Philippines • Taiwan • Thailand • Singapore • South Korea Middle East & Africa • Austria • Belgium • Bulgaria • Italy • Latvia • Romania • Slovak Republic • Slovenia • Switzerland • Turkey • Ukraine • France • Germany • Netherlands • Poland • Spain • Sweden • United Kingdom • Argentina • Aruba • Bolivia • Brazil • Curacao • Colombia • Costa Rica • Dominican • Ecuador • El Salvador • Guatemala • Honduras • Jamaica • Nicaragua • Panama • Peru • Republic • Uruguay • Venezuela • Algeria • Bahrain • Egypt • Jordan • Kuwait • Lebanon • Libya • Morocco • Nigeria • Oman • Saudi Arabia • South Africa • Tunisia • United Arab Emirates Stagwell’s Affiliate Network Significantly Expands Our Global Footprint • Canada • USA • Mexico Note: As of March 31, 2026. Countries listed represent a subset of locations.
O U R O P E R A T I N G S E G M E N T S Marketing Services Scaling Brand Reach with AI-Powered Creativity Media & Commerce Delivering Data-Driven Outcomes for Brand Performance Communications Intelligent & Highly-Targeted Communications Strategies Digital Transformation Building & Designing Digital Platforms & Technology 2 3 4 5 10 The Marketing Cloud SaaS & DaaS Tools for the Modern Marketer 1 Notes: Figures may not foot due to rounding 4% 16% 26% 16% 38% % OF 1Q26 NET REVENUE BY SEGMENT
R E V E N U E G R O W T H B Y S E G M E N T 1Q26 Revenue Growth Organic Revenue Growth Operating Segment 5.6%(0.4)%The Marketing Cloud 11.7%6.3%Digital Transformation 8.8%(1.4)%Media & Commerce 18.4%17.6%Communications 1.1%2.7%Marketing Services 8.0%5.0%TOTAL % OF REVENUE 1Q 4% 14% 25% 20% 38%
N E T R E V E N U E G R O W T H B Y S E G M E N T 1Q26 Net Revenue Growth Organic Net Revenue Growth Operating Segment 5.3%(0.5)%The Marketing Cloud 9.0%5.6%Digital Transformation 2.3%(0.7)%Media & Commerce 6.4%5.3%Communications 1.1%0.3%Marketing Services 3.6%1.6%TOTAL % OF NET REVENUE 1Q 4% 16% 26% 16% 38%
A D J E B I T D A G R O W T H B Y S E G M E N T Note: Figures may not foot due to rounding. *Adjusted EBITDA percentages in pyramid does not adjust for corporate eliminations **The Marketing Cloud adjusted EBITDA in 1Q26 improved y/y to $(2.4)m from $(3.3)m; 1Q26Operating Segment NQThe Marketing Cloud** 10.2%Digital Transformation 15.6%Media & Commerce 42.4%Communications 1.7%Marketing Services 9.0%TOTAL % OF ADJ. EBITDA* 1Q Adj. EBITDA* Growth Y/Y (2)% 23% 14% 23% 41%
D I G I T A L T R A N S F O R M A T I O N G R O W T H -24.5% -26.3% -17.0% -3.5% -1.1% -0.7% 10.0% 13.2% 22.5% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Two-Year Organic Net Revenue Growth Stack Note: Two-Year Stack calculated as current period growth plus prior year same period growth. Chart represents Organic Net Revenue Growth for the Digital Transformation segment. Refer to “Definitions of Non-GAAP Financial Measures” on Slide 3 of this presentation for definition of “Organic Net Revenue”.
N E W B U S I N E S S U P D A T E 15 PER CLIENT AT TOP 25 Notable Business WINS & EXPANSIONS Net New Business $141M1Q26 $486MLTM Avg. Net Revenue $6.7M1Q26
G R O W T H D R I V E R S F O R 2 0 2 6 $54M $53M $66M $130M $141M 1Q22 1Q23 1Q24 1Q25 1Q26 1Q Net New Business Growth from Top 100 Customers (versus 1Q25) 15% Reduction in Client Churn (versus 1Q25) 10%+ Increase in Net New Business (versus 1Q25) $11M Note: Net New Business defined as estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period .
P R O G R E S S T O W A R D S E N T E R P R I S E S O F T W A R E T A R G E T Preliminary Target Progress $25M $16M Identified Pipeline $12M Committed Revenue $28M Identified Pipeline + Committed Revenue
18 LIQUIDITY Available Liquidity (as of 03/31/2026) $750Commitment Under Credit Facility 350Drawn 16Letters of Credit $384Undrawn Commitments Under Facility 115Total Cash & Cash Equivalents $499Total Available Liquidity $ in Millions Note: Numbers may not foot due to rounding.
19 MAINTAINING DISCIPLINE AROUND Deferred Acquisition Costs DAC DECREASED BY $43M FROM 1Q25 QUARTER-END BALANCE $51M FROM 1Q24 QUARTER-END BALANCE $116M FROM 1Q23 QUARTER-END BALANCE Numbers may not foot due to rounding. $166M $101M $93M $50M 1Q23 1Q24 1Q25 1Q26
A D J U S T E D E A R N I N G S P E R S H A R E Three Months Ended March 31, 2026 Non-GAAPAdjustmentsReported (GAAP)$ and Shares in Thousands $ 43,195$56,168$ (12,973)Net income (loss) attributable to Stagwell Inc. common shareholders 250,766—250,766Diluted - Weighted average number of common shares outstanding $ 0.17$ (0.05)Adjusted earnings per share (diluted) Adjustments to net income $ 38,918Amortization expense 14,248Stock-based compensation 10,254Deferred acquisition consideration 11,210Other items, net 74,630Total add-backs (18,462)Adjusted tax expense 56,168 20 Note: Numbers may not foot due to rounding.
G A A P C O N S O L I D A T E D O P E R A T I N G P E R F O R M A N C E Note: Numbers may not foot due to rounding. 21 Three Months Ended March 31, 20252026$ and Shares in Thousands $ 651,740$ 704,143Revenue 412,087459,531Cost of services 179,362190,639Office & general expenses 42,00644,331Depreciation & amortization $ 633,455$ 694,501Total operating expenses $ 18,285$ 9,642Operating income (23,356)(23,266)Interest expense, net 1,220(3,021)Foreign exchange, net 249(69)Other, net $ (21,887)$ (26,356)Other income (expenses) (3,602)(16,714)Loss before income taxes and equity in earnings of non-consolidated affiliates 1,722(2,888)Income tax (benefit) expense $ (5,324)$ (13,826)Loss before equity in earnings of non-consolidated affiliates (1)(121)Equity in loss of non-consolidated affiliates $ (5,325)$ (13,947)Net loss 2,408974Net loss attributable to non-controlling & redeemable non-controlling interests $ (2,917)$ (12,973)Net loss attributable to Stagwell Inc. common shareholders Loss Per Share $ (0.03)$ (0.05)Basic $ (0.04)$ (0.05)Diluted Weighted Average Number of Shares Outstanding 112,088250,766Basic 263,737250,766Diluted
C A P I T A L S T R U C T U R E 1. A portion of the DAC will be paid with approximately 2.3m shares assuming conversion as of 4/29/26. 2. Includes redeemable non-controlling interest and obligations in connection with profit interests held by employees. 3. Non-consolidated investments 4. Share Count does not include portion of DAC to be settled in stock. Pro Forma total share count as of 4/22/2026 would be 247.9m Class A shares, 3.2m shares to settle DAC and 9.4m share-based awards, for a total of 260.5m shares outstanding. Net Debt & Debt-Like ($M, as of 03/31/2026) $ 350Revolving Credit Facility 1,100Bonds 18NCI 50DAC1 24RNCI2 (21)Less: Investments3 (115)Less: Cash $ 1,406TOTAL NET DEBT & DEBT-LIKE Share Count4 (Thousands, as of 4/22/2026) 247,854Class A 9,373Share-based awards 257,227DILUTED 22
S H A R E C O U N T T R A J E C T O R Y 298.0M 291.0M 266.5M 265.5M 246.4M 1Q22 1Q23 1Q24 1Q25 1Q26 Shares Outstanding Note: Shares Outstanding includes all Class A, B and C shares outstanding at the end of the specified quarter. Class B and Class C shares are no longer extant.. Reduction in Share Count (versus 1Q25) 19M Reduction in Share Count (versus 1Q22) 52M Available to Repurchase Shares Under Current Plan $356M
Thank You Contact Us: IR@StagwellGlobal.com
FAQ
How did Stagwell (STGW) perform financially in Q1 2026?
Stagwell reported Q1 2026 revenue of $704 million, up 8% year over year, and net revenue of $585 million, up 4%. The company posted a $13 million net loss attributable to common shareholders but increased adjusted EBITDA 9% to $90 million with a 15.3% margin.
How did Stagwell’s Digital Transformation segment perform in Q1 2026?
Digital Transformation net revenue was $97 million in Q1 2026, up 9% year over year. Management highlighted a two-year net revenue growth stack of 26% and a two-year organic net revenue growth stack of 22%, underscoring strong momentum in this technology-focused segment.
What is Stagwell’s 2026 financial guidance following Q1 2026 results?
Stagwell reiterated 2026 guidance for total net revenue growth of 8%–12%, adjusted EBITDA of $475–$525 million, and free cash flow conversion of 50%–60%. The company also guided to adjusted EPS of $0.98–$1.12, including anticipated impacts from acquisitions or dispositions.
How did Stagwell’s cash flow and leverage look in Q1 2026?
Stagwell used $26 million of net cash in operating activities in Q1 2026, an improvement from $60 million used a year earlier. Management reported a net leverage ratio of 3.11x last twelve-month adjusted EBITDA, providing context for its focus on cost savings and cash generation.
What new business did Stagwell (STGW) win in Q1 2026?
Stagwell recorded $141 million of net new business in Q1 2026 and $486 million over the last twelve months. The company cited multiple high-profile wins and expansions, including customers such as Adobe, Google, and Indeed, plus commitments for its platform The Machine.
Is Stagwell executing on its cost savings plan announced in 2025?
Stagwell reported it has actioned $54 million of a planned $80–$100 million cost savings program targeted for completion by year-end 2026. The labor ratio improved to 63.9% in Q1 2026, 110 basis points better than the prior year period, reflecting early benefits.