Stagwell (STGW) Q2 2025 earnings summary

Executive summary

• Q2 2025 net revenue grew 8% year-over-year to $598 million, with ex-Advocacy growth at 10% and strong performance in Digital Transformation, Creativity & Communications, and The Marketing Cloud.

• Net new business wins totaled $117 million in Q2, with $451 million over the last twelve months and notable client additions such as Samsung, New Balance, ServiceNow, and Volkswagen.

• Adjusted EBITDA rose 7.8% to $93 million (16% margin), while adjusted EPS increased over 20% to $0.17; Q2 net loss attributable to shareholders was $5.3 million, with diluted EPS of $(0.02).

• Significant progress on cost savings, with $20 million annualized savings achieved year-to-date and improved cash flow from operations by $122 million.

• Completed strategic acquisitions (ADK Global, JetFuel, Create, Unicepta, Consulum), expanded global footprint, launched Unreasonable Studios, and elevated key executives.

Financial highlights

• Q2 2025 net revenue: $598 million (up 8% year-over-year); Q2 revenue: $706.8 million (up 5.3%).

• Adjusted EBITDA: $93 million (16% margin), up 7.8% year-over-year; adjusted EPS: $0.17.

• Cash and cash equivalents at June 30, 2025: $181 million; total debt: $1.46 billion; net leverage ratio at 3.18x.

• YTD net cash from operating activities was $55 million, up $122 million year-over-year.

• Free cash flow conversion on EBITDA expected to exceed 45% for FY25.

Outlook and guidance

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

• Expect H2 growth acceleration, with most growth to be organic and leverage to end the year in the twos.

• Management expects sufficient liquidity and borrowing capacity to fund operations and obligations for the next twelve months.