Stagwell (STGW) Q4 2024 earnings summary

Executive summary

• Achieved industry-leading growth in 2024, with Q4 revenue up 20% year-over-year to $789 million and significant acceleration in digital transformation and global expansion.

• Record net new business of $382 million for the last twelve months, with $102 million in Q4, driven by high-profile client wins and expanding relationships with top tech companies.

• Adjusted EBITDA for Q4 was $123 million (up 29.7% YoY), with a margin of 19.6%–20%; full-year Adjusted EBITDA was $411 million (up 14.1% YoY).

• Aggressive M&A activity with 11 acquisitions in 2024, expanding presence in the Middle East, Europe, Latin America, and Asia.

• Investments in AI and cloud-based solutions, including the launch of new platforms and tools, positioned for continued innovation.

Financial highlights

• Q4 net revenue was $630 million, up 14%–14.3% YoY; full-year net revenue was $2.3 billion, up 6.7%–7% YoY.

• Full-year total revenue reached $2.84 billion (up 12%–12.4%), and adjusted EBITDA margin was 18%.

• Advocacy revenue surged 80% in Q4 and 71.9%–72% for the year, driven by the U.S. election cycle.

• Adjusted EPS was $0.24 in Q4 and $0.77 for the year.

• Cash flow from operations for the year was $143 million, up from $81 million in 2023.

Outlook and guidance

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

• Advocacy expected to decline ~30% in 2025 due to the election cycle, but non-advocacy organic growth projected at 5.5%–7.5%, led by digital transformation.

• Continued investments in technology expected through mid-2026, with margins anticipated to rise as investments taper.