Stagwell (STGW) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $743M, with net revenue at $615M, marking 4–12% year-over-year growth and record non-political quarter results.

• Net income attributable to common shareholders rose to $25M from $3.3M a year ago, and adjusted EPS increased 9% to $0.24.

• Strategic focus shifted to AI and technology, highlighted by a partnership with Palantir and the launch of Agent Cloud.

• Net new business totaled $122M in Q3 and $472M over the last twelve months, with major client wins and top 25 customers growing 16%.

• The company reorganized into five segments to enhance reporting clarity and resource allocation.

Financial highlights

• Adjusted EBITDA was $115M, up 3% year-over-year, with ex-advocacy EBITDA up 23% to $103M and margins reaching 18–19%.

• Net leverage at quarter end was 3.4x–3.45x, with a target below 3x by year-end.

• Cash and cash equivalents stood at $132M, with total available liquidity of $429M.

• Year-to-date cash flow from operations improved by $100M, reaching $31M.

• Repurchased $90M–$105M in shares year-to-date, reducing share count by 4–7%.

Outlook and guidance

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

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

• Expects strong Q4 performance and positive momentum into 2026, driven by new technology and a robust political season.