Stagwell Inc. (NASDAQ: STGW) Reports Strong Q1 2026 Results with 8% Revenue Growth and Robust Outlook

Key Financial Highlights for Investors

• Q1 Year-over-Year (YoY) Revenue Growth: 8%
• Q1 Net Revenue Growth YoY: 4%
• Digital Transformation Net Revenue Growth YoY: 9%
• Two-Year Digital Transformation Net Revenue Growth Stack: 26%
• Q1 Adjusted EBITDA: \$90 million, up 9% YoY
• Q1 Adjusted EBITDA Margin: 15% on net revenue
• Q1 EPS: \$(0.05)
• Q1 Adjusted EPS: \$0.17, up 31% YoY
• Q1 Net Loss Attributable to Common Shareholders: \$13 million (versus \$3 million loss in Q1 2025)
• Net Cash Used in Operating Activities (YTD): \$26 million (improved from \$60 million in prior year period)
• Net New Business: \$141 million in Q1, with \$486 million over the last twelve months

Management Commentary and Strategic Perspective

Chairman & CEO Mark Penn emphasized Stagwell’s resilience in a challenging market, noting that the company’s Digital Transformation segment is delivering industry-leading results, especially as AI technologies are increasingly deployed across client projects. On a two-year basis, the Digital Transformation segment achieved 22% organic net revenue growth, highlighting Stagwell’s strong positioning in technology-driven marketing solutions.

CFO Ryan Greene stated that the company has successfully expanded both top and bottom lines while maintaining disciplined cost control. Adjusted EBITDA grew 9% YoY to \$90 million, and the company received a positive outlook from a ratings agency during the quarter. Stagwell also reduced its share count to under 250 million, and Adjusted EPS climbed 31% YoY to \$0.17. Greene reinforced confidence in Stagwell’s ability to meet its full-year and free cash flow conversion guidance.

2026 Financial Guidance (Reiterated)

• Total Net Revenue Growth: 8% to 12%
• Note: The company has excluded a quantitative reconciliation for its 2026 guidance, invoking the “unreasonable efforts” exception under regulatory guidelines.

Shareholder and Price-Sensitive Information

• Growth in Digital Transformation: The company’s focus on digital and AI-driven marketing solutions is yielding high growth rates, with a 26% two-year stack in net revenue for this segment. This positions Stagwell as a technology leader in the industry, a factor likely to be viewed positively by investors and potentially supportive for the share price.
• Profitability and Cash Flow Improvements: Despite a reported net loss attributable to shareholders, the company improved its cash used in operating activities and delivered solid adjusted profitability metrics, which may increase investor confidence.
• Positive Ratings Agency Outlook: During the quarter, Stagwell received a positive outlook from a ratings agency, which could be seen as a validation of its financial health and future prospects.
• Share Count Reduction: The company reduced its share count to under 250 million, which can enhance per-share metrics and potentially support higher valuations.
• Strong Net New Business Wins: \$141 million in net new business for the quarter and \$486 million over the last twelve months, suggesting continued demand for Stagwell’s services and future revenue visibility.
• Risks and Forward-Looking Statements: The report includes extensive forward-looking statements with risk factors including macroeconomic headwinds, client spending variability, inflation, ability to attract and retain clients and employees, competition, successful integration of acquisitions, technology development (including AI), and potential adverse tax consequences. Investors should closely monitor these risk disclosures as they could materially impact future results and share price.

Other Noteworthy Financial Details

• Segment Performance: Stagwell operates across Media & Commerce, Communications, and The Marketing Cloud segments, with detailed segment results and reconciliations provided in the full report.
• Balance Sheet Highlights: As of March 31, 2026, the company reported \$4.24 billion in total assets, with \$722.5 million in total shareholders’ equity.
• Non-GAAP Measures: Management urges investors to consider Adjusted EBITDA, Adjusted Diluted EPS, and other non-GAAP metrics as useful supplements to GAAP results for period-over-period comparability.

Upcoming Events

Management hosted a video webcast and conference call on April 30, 2026, to discuss these results in detail and respond to investor questions. The webcast and accompanying investor presentation are available on the company’s website.

Contacts

• Investor Relations: Ben Allanson ([email protected])
• Press: Lena Petersen ([email protected])

Conclusion

Stagwell Inc.’s Q1 2026 results demonstrate solid revenue growth, a strong performance in digital and AI-driven segments, improved profitability metrics, and sustained momentum in net new business wins. The reiteration of its full-year guidance and a positive ratings agency outlook are notable positives. However, investors should be mindful of the outlined risks, especially regarding macroeconomic headwinds and execution of strategic initiatives. Overall, the developments in this report are likely to be viewed as price-sensitive and may impact Stagwell’s share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell any securities. Investors should review the full SEC filing and consider their own objectives and risk tolerance before making investment decisions.

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