Stagwell (STGW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $786.3 million, up 11.2% year-over-year, led by Digital Transformation and Communications segments, with organic revenue growth of 10% and organic net revenue growth of 5%.

• Adjusted EPS rose 39% to $0.25, and adjusted EBITDA increased 15% to $108.7 million, with margin expanding to 17.2%.

• Net loss attributable to shareholders was $8.1 million in Q2 2026, reflecting higher non-cash expenses and investments in AI and automation.

• Record net new business of $171 million in Q2, with major client wins including IBM, Adobe, Hershey, Mondelez, and Heineken.

• AI-driven solutions, technology investments, and cost savings initiatives remain central to strategy, with $70 million in annualized savings delivered since April 2025.

Financial highlights

• Q2 2026 net revenue was $632 million, up 6% year-over-year; six-month net revenue reached $1.22 billion.

• Adjusted EBITDA for Q2 2026 was $108.7 million (17.2% margin); YTD adjusted EBITDA was $198.4 million (16.3% margin).

• Adjusted EPS for Q2 2026 was $0.25; YTD adjusted EPS was $0.42.

• Net cash provided by operating activities for the first half of 2026 was $64 million, up 16% year-over-year.

• Available liquidity at quarter-end totaled $483 million.

Outlook and guidance

• Full-year 2026 net revenue growth guidance reiterated at 8%–12%, with adjusted EBITDA guidance of $475–$525 million.

• Full-year adjusted EPS guidance raised to $1.03–$1.17, reflecting share repurchases and business momentum.

• Free cash flow conversion goal remains at 50%–60% of adjusted EBITDA.

• Growth expected to be overwhelmingly organic, with limited acquisitions planned.

• Guidance includes anticipated impact from acquisitions or dispositions.