Stagwell (STGW) investor relations material

Executive summary

• Q3 revenue rose 9.8% to $816.0M; net revenue grew 8.1% to $664.0%, including 7.4% organic growth. Adjusted EBITDA rose 24.8% to $144.8M, with a 21.8% margin; adjusted EPS increased 42% to $0.34.

• Strategy shifted toward AI-powered marketing transformation and software, with Digital Transformation and The Marketing Cloud leading organic growth.

• Q3 net new business was a record $168M; LTM net new business reached $586M, up 24% YoY.

Financial highlights

• Q3 GAAP net income attributable to common shareholders was $18.1M versus $24.6M; diluted GAAP EPS was $0.07 versus $0.10.

• 9M revenue increased 9.8% to $2.306B and net revenue grew 5.8% to $1.880B; adjusted EBITDA rose 17.3% to $343.2M.

• 9M net loss attributable to common shareholders was $3.0M versus income of $16.4M; adjusted diluted EPS was $0.77 versus $0.54.

• 9M operating cash flow was $152.3M versus $30.7M; free cash flow reached $52M, up 227% YoY.

Outlook and guidance

• FY26 adjusted EBITDA guidance raised to $490M–$540M and adjusted diluted EPS guidance to $1.07–$1.21.

• FY26 total net revenue growth guidance remained 8%–12%; free cash flow conversion guidance remained 50%–60%.

• Q4 growth expected to be primarily organic, with Digital Transformation momentum and seasonal and midterm-election support for cash flow.

• 2027 enterprise tech bookings goal doubled to $150M; software sales projected to grow 30%–40% annually over the next two years.