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STGW

Stagwell Inc.

STGW

Stagwell Inc. • NASDAQ
$5.36 ▼ -0.19% (-0.01)
Market Cap $1.35 B
52w High $8.18
52w Low $4.03
Dividend Yield 0%
P/E 76.57
Volume 452.71K
Outstanding Shares 252.12M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $742.998M ▲ $211.148M ▼ $24.619M ▲ 3.313% ▲ $0.1 ▲ $119.907M ▲
Q2-2025 $706.818M ▲ $224.43M ▲ $-5.261M ▼ -0.744% ▼ $-0.02 ▲ $79.8M ▲
Q1-2025 $651.74M ▼ $221.368M ▼ $-2.917M ▼ -0.448% ▼ $-0.03 ▼ $78.878M ▼
Q4-2024 $788.708M ▲ $242.658M ▲ $3.235M ▼ 0.41% ▼ $0.029 ▼ $82.397M ▼
Q3-2024 $711.281M $212.484M $3.271M 0.46% $0.13 $97.902M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $132.238M ▼ $4.262B ▼ $3.483B ▼ $770.481M ▲
Q2-2025 $181.309M ▲ $4.317B ▲ $3.536B ▲ $750.146M ▲
Q1-2025 $137.653M ▲ $3.982B ▲ $3.192B ▲ $334.4M ▲
Q4-2024 $131.339M ▼ $3.908B ▲ $3.123B ▲ $331.731M ▲
Q3-2024 $145.807M $3.797B $3.034B $286.412M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $24.619M ▲ $-24.025M ▼ $-45.823M ▼ $23.165M ▲ $-49.071M ▼ $-38.768M ▼
Q2-2025 $-5.261M ▲ $114.751M ▲ $-14.577M ▲ $-62.186M ▼ $43.656M ▲ $107.068M ▲
Q1-2025 $-5.325M ▼ $-60.013M ▼ $-20.359M ▲ $83.248M ▲ $6.314M ▲ $-75.891M ▼
Q4-2024 $3.235M ▼ $212.089M ▲ $-95.987M ▼ $-122.193M ▼ $-14.468M ▼ $209.905M ▲
Q3-2024 $3.271M $-1.612M $-14.302M $20.827M $9.729M $-4.35M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Digital Transformation
Digital Transformation
 $180.00M ▲$120.00M ▼$130.00M ▲$100.00M ▼
Consumer Insights and Strategy
Consumer Insights and Strategy
 $50.00M ▲$50.00M ▲$50.00M ▲$0 ▼
Creativity and Communications
Creativity and Communications
 $390.00M ▲$300.00M ▼$340.00M ▲$0 ▼
Performance Media and Data
Performance Media and Data
 $90.00M ▲$110.00M ▲$110.00M ▲$0 ▼
Stagwell Marketing Cloud Group
Stagwell Marketing Cloud Group
 $80.00M ▲$70.00M ▼$80.00M ▲$0 ▼

Five-Year Company Overview

Income Statement

Income Statement Stagwell has grown into a much larger business than it was a few years ago, with revenue now several times higher than in 2020. However, after that rapid expansion, growth has been choppy, with a dip and then a rebound rather than a smooth upward line. The company earns a solid gross margin for an agency group, but by the time you get to operating profit, the cushion is fairly thin. EBITDA has been reasonably steady, but net income has hovered around breakeven in the last two years after being more clearly profitable earlier. Earnings per share have trended down, which hints at pressure from integration costs, interest expense, and a competitive marketplace. Overall, this is a business that has scaled quickly but is still working to translate that scale into consistent bottom‑line performance.

Balance Sheet

Balance Sheet The balance sheet shows a company built through acquisitions and growth, not one that has hoarded cash. Total assets are sizable, but cash on hand is modest relative to the size of the business. Debt stands out as meaningfully higher than shareholders’ equity, which means the company is fairly leveraged and more exposed to interest rates and credit conditions. Equity remains positive but has edged down from prior levels, suggesting limited balance‑sheet flexibility. The profile is typical of a roll‑up in advertising and marketing: asset‑heavy in acquired intangibles, with real value residing in people, brands, and client relationships, but with less of a financial safety net than a more conservatively funded peer.

Cash Flow

Cash Flow Stagwell consistently generates cash from its operations, which is a key strength, but the amount has been volatile from year to year. Free cash flow is generally positive, helped by relatively low capital spending needs, which is common for service and software‑light models. That said, free cash flow in the most recent years sits below its earlier peak, so the trajectory is not yet firmly upward. The business appears capable of covering its ongoing investment and some debt service from internal cash, but there is not a large margin for error if working capital swings or profits weaken. Stable, growing cash generation will be important to strengthen the balance sheet over time.

Competitive Edge

Competitive Edge Stagwell positions itself as a digital‑first, challenger holding company in an industry dominated by large, slower‑moving incumbents. Its network of agencies is tilted toward high‑growth areas like digital media, performance marketing, and data‑driven services, which has helped it outgrow more traditional peers. The integrated structure allows Stagwell to assemble cross‑agency teams around client problems, rather than forcing clients into rigid silos, which can be attractive for modern marketers. On the other hand, the company still competes against much larger global groups with deeper resources, longer client relationships, and greater geographic breadth. Its edge lies in agility, technology integration, and entrepreneurial culture, while its key risks are scale, the cyclical nature of advertising budgets, and ongoing pressure to prove it can win and retain large, long‑term accounts.

Innovation and R&D

Innovation and R&D Innovation is a clear focal point. Stagwell is building a proprietary marketing technology stack, centered on its Marketing Cloud, which bundles AI‑enabled tools for research, creative optimization, public relations, and audience insights. Products like PRophet, CUE, and SmartAssets aim to make campaigns more predictive and measurable, while ARound pushes into shared augmented‑reality experiences at live events. The company has formalized its AI push with a dedicated AI leader, work on its own language model, and deep partnerships with platforms like Google Cloud and Palantir to power an AI‑driven marketing platform. Internally, the planned “Machine” operating system is designed to tie together people, data, and workflows across the network. If these tools gain traction with clients, they could shift more of Stagwell’s revenue toward higher‑margin software‑like services; the main uncertainty is execution and how crowded the marketing tech landscape already is.

Summary

Stagwell has transformed itself into a sizeable, digitally oriented marketing group with a clear emphasis on technology and data‑driven services. Revenues are much higher than a few years ago, but profitability at the bottom line is still thin and uneven, and earnings per share have not kept pace with top‑line growth. The balance sheet shows meaningful leverage and only modest cash, which raises the importance of steady cash generation and disciplined capital allocation. On the strategic side, the company’s challenger positioning, integrated agency model, and aggressive investment in AI and marketing software give it a differentiated story in a changing advertising landscape. The key questions going forward are whether Stagwell can turn its innovation pipeline and digital focus into more stable, higher‑margin earnings and stronger cash flows, while gradually reducing financial risk in a cyclical, highly competitive industry.

NEWS

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November 24, 2025 · 12:30 AM UTC

STAGWELL (STGW) REVEALS NEW SINGAPORE HUB TO POWER AI-DRIVEN GROWTH AND INNOVATION ACROSS APAC

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