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Stagwell Inc. Financial Results Overview for Q3 2025

Stagwell Inc. (NASDAQ: STGW) has recently released its financial results for the third quarter and the first nine months ending on September 30, 2025. The results highlight a steady growth trajectory, underscored by an increase in revenue and net income, demonstrating the company's resilience in a transforming market landscape.

Q3 2025 Financial Highlights

In Q3 2025, Stagwell reported a total revenue of $743 million, marking a 4% increase compared to the same period in the previous year. The year-to-date revenue reached $2.102 billion, which is a 2% increase year-over-year.

Revenue Breakdown

• - Excluding advocacy-related revenue, the Q3 revenue was $686 million, reflecting a 12% growth relative to Q3 2024.
• - Net revenue for Q3 amounted to $615 million, showcasing a 6% increase compared to the last year.
• - Notably, the net revenue excluding the advocacy aspect was $578 million, marking a significant 10% growth.

Profitability Metrics

Net income attributable to Stagwell common shareholders was $25 million, a considerable rise from just $3 million in the same quarter last year. Adjusted EBITDA came in at $115 million, exhibiting a modest increase of 3% over Q3 2024. The adjusted EBITDA margin was recorded at 19% on net revenue, while adjusted earnings per share (EPS) hit $0.24, up from $0.22 a year prior.

Looking at the year-to-date performance, Stagwell reported a $100 million increase in cash flow from operations compared to the previous year, highlighting improved operational efficiency. The total net new business secured in Q3 was $122 million, contributing to a total of $472 million net new business over the last twelve months.

Strategic Partnerships

A key highlight from Stagwell's recent announcements is the groundbreaking partnership with Palantir Technologies. This collaboration is expected to leverage advanced technologies and artificial intelligence (AI) to enhance marketing services, enabling better data-driven decision-making and strategic marketing initiatives.

Financial Outlook

For 2025, Stagwell has provided optimistic guidance, projecting a total net revenue growth of approximately 8%, alongside an adjusted EBITDA forecasted between $410 million and $460 million. Free cash flow conversion is anticipated to exceed 45%, with adjusted EPS expected to fall between $0.75 and $0.88. This outlook also includes considerations for anticipated acquisitions or divestitures, thus framing a robust future trajectory for the company.

Mark Penn, Chairman and CEO of Stagwell, noted, "Our significant growth, especially in non-advocacy sectors, along with a strengthened cash flow and increased margins, proves that Stagwell is well-positioned as a leader in the evolving marketing landscape. The newly formed partnership with Palantir exemplifies our commitment to harnessing AI in driving effective marketing solutions."

In conclusion, Stagwell Inc. is navigating the market's complexities while maintaining a consistent growth pattern, showcasing strong business fundamentals reinforced by strategic partnerships in technology and marketing.

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