1. STGW reported a Q1 revenue decline of 3% year-over-year. 2. Net new business reached $130 million in Q1, showing strong growth potential. 3. Adjusted EPS was $0.12, indicating profitability despite a net loss. 4. Guidance for 2025 remains steady with revenue growth expected around 8%. 5. Digital transformation segment saw 15% growth, enhancing overall performance outlook.
Despite a drop in revenue, net new business growth and adjusted EPS indicate strong future potential. Historical cases show such indicators often lead to upward price movements.
The article provides crucial performance metrics and future guidance that can significantly affect investor decisions regarding STGW.
The immediate market reaction may favor STGW due to recent business wins. Positive guidance and adjusted earnings could boost investor sentiment quickly.
Q1 YoY Revenue Decline of 3%, Q1 YoY Net Revenue Growth of 6%
Q1 YoY Net Revenue Growth excluding Advocacy of 9%, Digital Transformation Net Revenue ex. Advocacy Growth of 15%
Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $3 million; Q1 Adjusted EBITDA of $81 million; Adjusted EBITDA Margin of 14%
Q1 EPS of $(0.04); Adjusted EPS of $0.12
Net New Business of $130 million in Q1; LTM Net New Business of $446 million
Reiterate Guidance for 2025 of Total Net Revenue Growth of ~8%; Adjusted EBITDA of $410 million to $460 million; Free Cash Flow Conversion in excess of 45%
NEW YORK, May 8, 2025 /PRNewswire/ -- (NASDAQ: STGW) – Stagwell Inc. ("Stagwell") today announced financial results for the quarter and three months ended March 31, 2025.
See "Non-GAAP Financial Measures" below for explanations and reconciliations of the Company's non-GAAP financial measures.
Mark Penn, Chairman and CEO of Stagwell, said, "Despite the macro noise from tariffs, Stagwell's first quarter results were in-line with our expectations, setting us up for a strong year ahead. Q1 is a low point in the political cycle and yet we delivered solid growth in the quarter, led by double-digit increases in our Digital Transformation, Creativity and Stagwell Marketing Cloud capabilities. We hit a record $130M of net new business and, consequently, we remain optimistic about our outlook for the rest of the year."
Frank Lanuto, Chief Financial Officer, commented: "Stagwell delivered solid first quarter results. We reported 9% total net revenue growth excluding advocacy, while posting $81 million in adjusted EBITDA as we effectively managed costs. Additionally, we have made significant progress in simplifying our capital structure and refinancing our revolving credit facility. Our results and these actions position us well for the year ahead."
2025 financial guidance is reiterated as follows:
Management will host a video webcast on Thursday, May 8, 2025, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the quarter and three months ended March 31, 2025. The video webcast will be accessible at this link. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.
A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 45+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
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In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company's representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company's beliefs and expectations, future financial performance, growth, and future prospects, the Company's strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements.
A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2024 Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on March 11, 2025, and accessible on the SEC's website at www.sec.gov, under the caption "Risk Factors," and in the Company's other SEC filings.