What guidance did Stagwell's management provide for the next earnings period?

Did Stagwell beat or miss consensus estimates last quarter?

What does Stagwell do and what are its main business segments?

What were the key takeaways from Stagwell's earnings call?

What is the market's earnings forecast for Stagwell next quarter?

What were the key takeaways from Stagwell’s earnings call?

What is Stagwell's gross profit margin?

What is Stagwell's latest dividend and current dividend yield?

- **AI-Driven Growth**: Q3 revenue up 12% YoY, with AI platform partnership targeting $500M+ TAM.
- **Profitability Improvement**: Adjusted EBITDA margin 18.6%, The Marketing Cloud EBITDA improved 26% YoY.
- **Strategic Shift**: $55M+ invested in AI tech, transitioning from M&A to product development.
- **Client Expansion**: Top 25 clients now average $28M, up 50x since 2020.
- **Palantir Impact**: Expected $100M+ revenue contribution by end-2026, with Q4 MVPs launching.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 net revenue of $743 million, up 12% YoY, driven by AI and digital transformation. Ex-advocacy organic growth 3.2%.
- **AI Partnership**: Announced industry-first AI marketing platform with Palantir, targeting $500M+ TAM, with MVPs launching Q4 2025.
- **Strategic Shift**: Transitioning from M&A to tech investment, with $55M+ in AI-related CapEx.
- **Margins**: Adjusted EBITDA $115M (18.6% margin), up 3% YoY. The Marketing Cloud segment EBITDA improved 26% YoY to -4%.
- **Client Base**: Top 25 clients now average $28M, up 50x since 2020. Media ownership expanded with 37.5% stake in RealClearPolitics.
- **Guidance**: Full-year net revenue growth 8%, adjusted EPS $0.75-$0.88, free cash flow 45%.

**【CFO Financial Commentary】**
- **Financial Health**: Q3 GAAP net income $63M, up 6% YoY. Free cash flow $31M, up $100M YoY.
- **Cost Management**: $27M in savings from cost initiatives, AI adoption reducing manual tasks by 40%.
- **Balance Sheet**: Net leverage 3.4x, $132M cash, $312M revolver availability.
- **Share Repurchases**: $90M year-to-date, 4% lower share count.

**【Q&A Highlights】**
- **Palantir Partnership**: Expected $100M+ revenue by end-2026, integrating Palantir Foundry with Stagwell AI.
- **Media Strategy**: Acquired 37.5% of RealClearPolitics, expanding owned media to $154M net revenue.
- **Risk Mitigation**: 90%+ of revenue not tied to government, minimal impact from shutdown.
- **The Marketing Cloud**: On track for 2026+ EBITDA positivity, 138% YoY growth in SaaS/DaaS.
- **Competitive Position**: 1,500+ engineers, 10x+ AI adoption rate vs. peers.


Stagwell Inc. (STGW) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 8% YoY net revenue, 10% ex-advocacy, with digital transformation up 12%.
- **AI Transformation**: $20M/Q OpEx investment in AI tools; 'Machine' platform to reduce costs by 15% by early 2026.
- **Cash Flow Strength**: $122M YoY improvement in operating cash flow, targeting 45% free cash flow conversion.
- **Government Expansion**: New contracts (e.g., Covered California) and multi-year deals targeting 10-15% of revenue.
- **Cost Savings**: $60-70M annualized savings by end-2025 via real estate, back-office, and tech efficiencies.


**【CEO Summary Section】**
- **Revenue Growth**: Net revenue of $598 million (+8% YoY), with ex-advocacy growth of 10%. Digital transformation revenue grew 12% ex-advocacy, driven by tech and healthcare clients.
- **AI Investment**: $20M/Q OpEx invested in AI tools (e.g., media agents, influencer bots, research dashboards). The 'Machine' platform, integrating data and tools, expected to reduce costs by 15% and fully deploy by early 2026.
- **New Business**: $117M in net new business (5th consecutive Q above $100M), including wins with Samsung, New Balance, and government contracts. Top 25 clients grew 26% YoY to $175M.
- **Cash Flow**: Operating cash flow improved by $122M YoY, with free cash flow conversion target of 45%. Net leverage reduced to 3.18x (vs. 3.48x last year).
- **M&A**: Acquired ADK GLOBAL and JetFuel, with focus on integrating recent acquisitions and scaling tech initiatives.

**【CFO Financial Commentary】**
- **Financial Results**: Adjusted EBITDA of $93M (15.5% margin), with ex-advocacy margin up 160bps to 14.3%. Excluding $18M cloud investment, margin would be 18.5% (+300bps YoY).
- **Cost Management**: Personnel costs at 62.6% (lowest Q2 since 2023). On track for $60-70M cost savings in 2025 via real estate, back-office consolidation, and tech efficiencies.
- **Balance Sheet**: $181M cash, $377M revolver draw, and $92M deferred acquisition consideration. Buyback of 9.6M shares ($48M) leaves $160M remaining authorization.
- **Guidance**: Full-year net revenue growth of 8%, adjusted EBITDA $410-460M, and EPS $0.75-0.88.

**【Q&A Key Highlights】**
- **H2 Acceleration**: Organic growth 3pts ahead of last year, with client churn typically lower post-H1. 2024 pattern suggests strong H2 momentum.
- **Cash Flow Sustainability**: Improved working capital management (e.g., AR collection, vendor terms) and back-office tech stack driving $122M YoY cash flow improvement.
- **AI Value**: Code and Theory Network positioned to capture AI-native marketing work. AI tools enhance creative efficiency (e.g., Unreasonable Studios for Netflix-quality content).
- **Government Contracts**: New division wins $3M Covered California deal, with multi-year contracts offering stability. Target 10-15% of revenue from gov't work.
- **Media Strategy**: $5-6B media spend focused on performance marketing and AI-driven efficiency. Upgraded tech stack (e.g., Stagwell ID Graph) to compete with scale players.
- **M&A Approach**: Global expansion (e.g., Asia, Middle East) for revenue synergies. No dispositions planned for 2025; 1-2 potential in 2026.
- **Marketing Cloud Spin-Off**: Unlikely in 2025. Focus on product development and client adoption before considering alternatives.


Stagwell Inc. (STGW) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 net new business doubles YoY to $130M; Middle East revenue +250% YoY
- **AI & Innovation Lead**: $17M Q1 investment in SMC; Stagwell ID Graph delivers 10x ROI for CPG client
- **M&A Expansion**: Acquired JetFuel, UNICEPTA, and Create. Group; ADK GLOBAL closing Q2
- **Cost Efficiency**: 150bps YoY margin improvement; $60-70M annualized cost savings target by end-2025
- **Guidance Reaffirmed**: Full-year 2025 net revenue +8%, EBITDA $410-460M, EPS $0.75-0.88

**【CEO Business Update】**
- **Record Net New Business**: Q1 2025 net new business reached $130 million, nearly double Q1 2024, with wins at PayPal, Panera, CarMax, Celsius, and Hyatt. 12-month trailing net new business is $446 million, up $160 million YoY.
- **Revenue Growth by Segment**: 
  - Digital Transformation +15% YoY (tech clients +18%, retail +52%)
  - Stagwell Marketing Cloud +45% YoY (QuestBrands +200% with BERA.ai integration)
  - Middle East revenue +250% YoY
- **AI & Innovation Investment**: 
  - $17M Q1 investment in SMC; expects $60-70M annualized cost savings by end-2025
  - Stagwell ID Graph delivers 10x ROI for CPG client; Palantir partnership for military-grade targeting
  - Code & Theory Adobe content supply chain solution demoed to 700+ leads at Adobe Summit
- **M&A Expansion**: Acquired JetFuel (experiential marketing), UNICEPTA (European analytics), and Create. Group (Middle East). Anticipates ADK GLOBAL closing Q2.
- **Guidance Reaffirmed**: Full-year 2025 net revenue growth 8%, adjusted EBITDA $410-460M, EPS $0.75-0.88.

**【CFO Financial Review】**
- **Q1 2025 Financials**: 
  - Net revenue $564M (+6% YoY), $81M adjusted EBITDA (14.3% margin)
  - Excluding Advocacy: total net revenue +9%, EBITDA margin 17.3% (excluding $17M SMC investment)
- **Segment Performance**: 
  - Digital Transformation: $106M (+8% YoY), tech clients +16% (Apple, Google)
  - SMC: $63M (+32% YoY), QuestBrands +170% with platform enhancements
  - Creativity: $242M (+7% YoY), retail clients double YoY
- **Cost Management**: 
  - Personnel costs 64.8% of revenue (ex Advocacy), down 150bps YoY
  - $4M annualized cost savings from real estate consolidation; $60-70M savings target by end-2025
- **Balance Sheet**: 
  - $138M cash, $375M revolver drawn, 3.3x net leverage
  - Repurchased 1M shares Q1 at $6.07 avg price; $164M buyback authorization remaining

**【Q&A Highlights】**
- **New Business Momentum**: 
  - 2025 wins will drive 2H25 revenue; Q1 wins (e.g., Starbucks, Visa) ramping up
  - Tech clients shifting focus from efficiency to competitive AI-driven experiences
- **Tariffs Impact**: Minimal direct impact; ~11% of U.S. economy exposed to tariffs. Clients not signaling spending pullbacks
- **Margin Outlook**: 
  - SMC to flip from investment to profit in 2026 (60-80% gross margin)
  - AI tools reducing back-office costs; Media business to benefit from new data-driven offerings
- **Performance Media Recovery**: 
  - Q1 decline due to single client seasonal adjustment; expect sequential rebound starting Q2
  - New AI-powered targeting tools (Stagwell ID Graph, Palantir partnership) to differentiate in 2H25

Stagwell Inc. (STGW) Q1 2025 Earnings Call Transcript

- **Breakout Year**: 2024 revenue $2.84B (+12% YoY), driven by 22% digital transformation growth and record $127M Q4 advocacy revenue. 
- **AI-Driven Expansion**: $70M annualized cloud/AI investment, with 2025 launches of 'The Machine' AI platform and AR stadium ads. 
- **New Business Powerhouse**: $382M trailing 12M net new business, winning $25M+ client mandates (e.g., Visa, Starbucks). 
- **Global Scale-Up**: 2024 M&A adds 2,000+ employees in Asia, 500+ in Middle East. 2025 guidance: +8% total net revenue, EBITDA $410-460M. 
- **Cost Efficiency**: Personnel costs as % of net rev down to 57.5%, lowest in company history. 
- **2025 Outlook**: Non-political growth 5.5-7.5%, offsetting 30% political decline. 2025 R&D spend to peak, with >25% EBITDA margin by 2026.

**【CEO Business Update】**
- **Q4 Revenue Growth**: 20% YoY, driven by digital transformation (22% YoY) and performance media (12% YoY). Full-year revenue reached $2.84B (+12% YoY). 
- **Digital Transformation Breakthroughs**: 
  - Code & Theory launched 'Contact Lens' AI tool for political insights. 
  - SMC (Stagwell Marketing Cloud) grew 24% Q4, with Wonder Cave leading advocacy text messaging. 
  - $70M annualized investment in cloud/AI solutions, with 2025 launch of AI content platform 'The Machine'.
- **Advocacy Growth**: Q4 advocacy revenue +80% YoY ($127M), fueled by U.S. election cycle. 2025 outlook: -30% political impact offset by +5.5-7.5% non-political growth.
- **New Business Momentum**: $102M net new business Q4, trailing 12M $382M. Wins with Starbucks, Target, Visa reflect scale-up strategy.
- **M&A Expansion**: 11 acquisitions in 2024, including Middle East (Console, Create Group), Europe (Sidekick, WMP), and Asia (ADK Global). 
- **2025 Guidance**: Total net revenue +8%, EBITDA $410-460M, EPS $0.75-0.88.

**【CFO Financial Review】**
- **Q4 Financials**: 
  - Revenue $789M (+20% YoY), Net Revenue $630M (+14% YoY). 
  - Adjusted EBITDA $123M (19.6% margin), +230bps YoY. 
  - Personnel costs as % of net rev: 57.5% (-320bps YoY). 
- **Full-Year Metrics**: 
  - Digital Transformation $718M (+13% YoY). 
  - SMC $280M (+19% YoY). 
  - Advocacy $363M (+72% YoY). 
  - Free cash flow conversion >45%. 
- **Balance Sheet**: 
  - Cash $131M, revolver $264M, leverage 3x. 
  - Share buybacks $93M (14.8M shares). 
  - DAC balance $102M, down $60M YoY.

**【Q&A Highlights】**
- **Guidance Philosophy**: Shift to total net revenue growth reflects organic + M&A scale (e.g., ADK Global adds 10k+ employees). 
- **Digital Transformation**: 2025 wins in AI-driven web redesigns, with 60%+ tech sector growth. 
- **RFP Activity**: $1.3B RFP pipeline Q4, 30%+ win rate. 2025 target: $1.5B RFPs + gov't contracts. 
- **Industry Consolidation**: Competitor mergers create talent and client opportunities. Stagwell's nimble, tech-focused model attracts $200k+ applicants. 
- **Long-Term Margins**: 2025+ tech investments ($23M Q4) to decline; target EBITDA margin >25% (vs. 18% 2024). 
- **SMC Innovation**: 2025 launches of AI-powered media planning tools and AR stadium experiences.

STGW

STGW fundamentals

Earnings Call

You can ask Aime