Stagwell (NASDAQ:STGW) Releases Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Q1 results: Stagwell reported adjusted EPS of $0.17, missing consensus by $0.01, while revenue rose 8% to $704.1M and adjusted EBITDA was $89.7M; management reiterated FY26 targets and set EPS guidance of $0.98–$1.12.
• Commercial momentum: The company logged a record $141M in net new business (LTM $486M), signed its first five‑year ~ $60M government contract, and said its digital transformation/AI initiatives have early traction with $12M booked and partnerships with Palantir, Google and Adobe.
• Balance sheet and risks: operating cash flow improved by $34M, free cash flow is targeted at $250–$300M and net leverage fell to 3.11x after repurchases, but management flagged international weakness and a need to close large deals (and a political "supercycle") for second‑half acceleration.

Stagwell (NASDAQ:STGW - Get Free Report) released its earnings results on Thursday. The company reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01), Briefing.com reports. The company had revenue of $704.14 million for the quarter, compared to the consensus estimate of $700.48 million. Stagwell had a net margin of 1.00% and a return on equity of 22.61%. The firm's revenue was up 8.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.12 earnings per share. Stagwell updated its FY 2026 guidance to 0.980-1.120 EPS.

Here are the key takeaways from Stagwell's conference call:

• Stagwell reported a record quarter of net new business at $141M (last 12 months $486M) and signed its first five‑year, nearly $60M government contract, with a government pipeline now worth "hundreds of millions."
• Its Digital Transformation / enterprise AI push (The Machine, SATS, Search+) shows early traction with $12M booked toward a $25M first sales goal, multiple active engagements and partnerships with Palantir, Google, Adobe and others.
• First‑quarter results beat the internal plan: revenue +8% to $704M, net revenue +4% to $585M, Adjusted EBITDA +9% to $89.7M (15.3% margin), and Adjusted EPS up 31% to $0.17 largely aided by ~7.3M shares repurchased; management reiterated full‑year guidance (net revenue +8–12%, Adj. EBITDA $475–525M).
• Cash and balance‑sheet metrics improved: operating cash flow up $34M vs. prior year, free cash flow target $250M–$300M, net leverage down to 3.11x aiming for mid‑2s by year‑end, and deferred acquisition payments shrinking toward negligible.
• Near‑term risks include international weakness (strong dollar and Middle East tourism/tech slowdowns) and a second‑half growth acceleration that is partly contingent on a political "supercycle" and closing several large contracts.

Stagwell Stock Up 1.4%

NASDAQ STGW traded up $0.09 during trading on Friday, reaching $6.36. 1,670,087 shares of the company's stock traded hands, compared to its average volume of 1,832,271. The company has a debt-to-equity ratio of 1.71, a current ratio of 0.79 and a quick ratio of 0.79. The firm has a market cap of $1.61 billion, a price-to-earnings ratio of 79.44 and a beta of 1.52. The company's 50 day simple moving average is $6.06 and its two-hundred day simple moving average is $5.58. Stagwell has a 12-month low of $4.03 and a 12-month high of $7.52.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of STGW. Kestra Advisory Services LLC acquired a new stake in Stagwell during the 4th quarter valued at approximately $26,000. Inceptionr LLC purchased a new stake in Stagwell in the 4th quarter worth $50,000. Tower Research Capital LLC TRC increased its holdings in Stagwell by 311.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after acquiring an additional 8,170 shares in the last quarter. CIBC Asset Management Inc purchased a new stake in Stagwell in the 4th quarter worth $53,000. Finally, AQR Capital Management LLC purchased a new stake in shares of Stagwell during the first quarter worth $74,000. Institutional investors own 35.61% of the company's stock.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Stagwell from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 16th. Zacks Research lowered shares of Stagwell from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th. Rosenblatt Securities reaffirmed a "buy" rating and set a $9.00 target price on shares of Stagwell in a research note on Wednesday, March 11th. B. Riley Financial lowered their target price on shares of Stagwell from $9.00 to $7.00 and set a "buy" rating for the company in a report on Friday, March 6th. Finally, Wall Street Zen upgraded shares of Stagwell from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 11th. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $7.96.

More Stagwell News

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Adjusted results and revenue growth — Stagwell reported Q1 revenue of ~$704M (up ~8% YoY), adjusted EPS of $0.17 (up ~31% YoY) and adjusted EBITDA of $90M (up 9%), showing improved operating performance. Stagwell Inc. Nasdaq: STGW Reports Results for the Three Months Ended March 31, 2026
• Positive Sentiment: Strong commercial traction — record net new business of $141M in Q1 and LTM net new business of $486M, supporting revenue runoff and future growth. Q1 results and net new business
• Positive Sentiment: Digital transformation growth — digital transformation net revenue was $97M (+9% YoY) with a two‑year growth stack of ~26%, highlighting higher‑margin, strategic revenue growth. Digital transformation metrics
• Positive Sentiment: Product/tech integration move — Stagwell announced a unified technology infrastructure intended to improve service delivery and margins, which may support longer‑term efficiency and cross‑sell. Stagwell Announces Unified Technology Infrastructure
• Neutral Sentiment: FY26 guidance reiterated — management set FY26 EPS guidance of $0.98–$1.12 (consensus ~$1.01), and reiterated revenue/EBITDA targets and free cash flow conversion goals; guidance is broadly in line with Street expectations but leaves room for range‑driven volatility. FY26 guidance and slide deck
• Negative Sentiment: Earnings miss vs. some estimates — reported EPS of $0.17 missed the Zacks/consensus figure of $0.18 by $0.01, prompting near‑term selling pressure among precision‑focused traders. Stagwell Misses Q1 Earnings Estimates
• Negative Sentiment: GAAP loss and mixed headlines — the company reported a GAAP net loss of ~$13M and some outlets framed the quarter as a revenue or earnings miss, creating headline risk despite positive adjusted metrics. Stagwell earnings in-line but revenue misses estimates

About Stagwell

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.

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