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Dec 31, 2025
Stagwell Q4 2025 Earnings Report
Stagwell Q4 2025 Earnings Report
Key Takeaways
Stagwell reported a strong fourth quarter with revenue growth of 2% and a significant increase in net income. The company demonstrated momentum in its digital transformation and marketing cloud segments, while achieving record net new business and doubling its full-year free cash flow. Management highlighted a strategic pivot toward AI applications as a foundation for 2026 growth.
Q4 Revenue reached $807 million, a 2% increase year-over-year.
Net New Business for the quarter was $106 million, contributing to a trailing twelve-month total of $476 million.
Adjusted EBITDA for Q4 grew 3% to $129 million, representing a 20% margin on net revenue.
The company announced a $350 million increase to its stock repurchase program, bringing the total available to $400 million.
Revenue by Segment
Forward Guidance
Stagwell expects strong growth in 2026 driven by AI initiatives and market share gains during industry restructurings.
Positive Outlook
- Total Net Revenue growth projected between 8% to 12%
- Adjusted EBITDA expected between $475 million and $525 million
- Free Cash Flow Conversion target of 50% to 60%
- Adjusted EPS guidance of $0.98 - $1.12
- Strategic positioning to capitalize on AI-driven industry shifts
Challenges Ahead
- Potential impact from macroeconomic inflation
- Risks associated with international and regional economic conditions
- Dependence on client spending levels which may fluctuate
- Exposure to foreign currency exchange rate volatility
- Highly competitive market for talent and new technology integration
Historical Earnings Impact
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Avg. Return Before/After Earnings
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