Stagwell Inc. Earnings Call Highlights Growth and Innovation

Stagwell Inc. ((STGW)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Stagwell Inc. conveyed a predominantly positive sentiment, underscored by robust revenue growth, record-setting new business acquisitions, and successful client expansions. Despite a setback in the Performance Media and Data segment, the company’s innovative strides in AI and technology, coupled with industry accolades, reinforce confidence in its future trajectory.

Strong Net Revenue Growth

Stagwell Inc. reported an impressive 9% growth in total net revenue, excluding Advocacy, for the first quarter. The Digital Transformation sector experienced a 15% increase, while the Stagwell Marketing Cloud saw a remarkable 45% growth, highlighting the company’s strategic focus on digital advancements.

Record Net New Business

The company achieved a significant milestone with $130 million in net new business for the quarter, nearly doubling the figure from the previous year. This success includes major client acquisitions such as PayPal, Panera, CarMax, Celsius, and Hyatt, showcasing Stagwell’s competitive edge in the market.

Impressive Client Expansion

Stagwell reported substantial growth in the technology and retail sectors, with technology clients increasing their spending by 18% and retail clients by 52%. This expansion underscores the company’s ability to adapt and thrive in diverse market segments.

Successful Acquisitions

Acquisitions like JetFuel and UNICEPTA have been performing well, contributing to Stagwell’s market expansion, particularly in the Middle East, where net revenue grew by over 250% year-over-year.

Innovations in AI and Technology

Stagwell is heavily investing in AI and technology, with developments such as the Stagwell ID graph and partnerships with Palantir and Adobe. These innovations are set to enhance the company’s service offerings and maintain its competitive advantage.

Awards and Industry Recognition

Stagwell’s agencies have been recognized for their creative and digital innovation, receiving accolades at the Webby Awards and the 2025 Ad Age Award. This recognition highlights the company’s leadership in the industry.

Performance Media and Data Decline

The Performance Media and Data segment reported a 10% decline in net revenue, attributed to reduced spending from a key client during its strongest seasonal quarter. This area remains a focus for future improvement.

Tariff Concerns

While Stagwell experienced minimal direct impact from tariffs, the company continues to monitor developments that could potentially affect future performance, ensuring preparedness for any economic shifts.

Forward-Looking Guidance

Looking ahead, Stagwell anticipates continued financial growth and strategic advancements. The company projects $60 million to $70 million in cost savings this year, emphasizing efficiency and innovation, particularly in AI and digital transformation. With a 6% increase in net revenue to $564 million and an adjusted EBITDA of $81 million, Stagwell is poised for sustained success.

In summary, Stagwell Inc.’s earnings call highlighted a strong performance with positive growth indicators across various sectors. The company’s strategic investments and industry recognition position it well for future success, despite some challenges in specific segments. Investors can remain optimistic about Stagwell’s trajectory, given its commitment to innovation and market expansion.