Stagwell (STGW) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue grew 6% to $564 million, with total revenue at $652 million (down 3% YoY); excluding advocacy, net revenue rose 9%.

• Record net new business of $130 million, nearly double the prior year, with major wins in technology and retail verticals.

• Adjusted EBITDA was $81 million (margin 14%), down 11% YoY; net loss attributable to common shareholders was $3 million.

• Recent acquisitions include JetFuel, UNICEPTA, Create Group, Gold Rabbit, and pending ADK Group, supporting expansion and service diversification.

• All Class C shares were exchanged for Class A, simplifying capital structure and increasing deferred tax assets.

Financial highlights

• Q1 net revenue: $564 million (up 6% YoY); total revenue: $652 million (down 3% YoY).

• Adjusted EBITDA: $81 million (margin 14%); adjusted EPS: $0.12; GAAP EPS: $(0.04).

• Cash and cash equivalents: $138 million; total debt: $1,465 million; net leverage ratio: 3.3x.

• Free cash flow conversion expected to exceed 45% in 2025.

• Weighted average diluted shares outstanding: 263.7 million.

Outlook and guidance

• 2025 guidance reiterated: 8% net revenue growth, adjusted EBITDA of $410–$460 million, adjusted EPS of $0.75–$0.88, and free cash flow conversion above 45%.

• Anticipates margin expansion through AI-driven efficiencies and maturing cloud products.

• Expects strong sequential rebound in performance media and data in Q2 and further growth in H2 as new business ramps.

• Guidance includes anticipated impact from acquisitions or dispositions.

• Management expects sufficient liquidity and borrowing capacity for ongoing operations.