Stagwell (STGW)
NASDAQ:STGW
Want to see STGW full AI Analyst Report?
Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.19Last Year’s EPS
0.17Same Quarter Last Year
Moderate Buy
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive: management reported record new business, continued organic growth across all segments, clear momentum in Digital Transformation and early traction for enterprise AI products, plus margin expansion, stronger cash flow and active share repurchases. Challenges remain, including modest net revenue growth in Q1, slower recovery in Media and Marketing Services, regional headwinds (Middle East) and dependence on closing several large deals and the upcoming political cycle to drive acceleration in H2. Deleveraging progress and disciplined cost actions provide confidence, but some guidance upside is contingent on execution of large contract wins and product scaling.Company Guidance
Top-Line Growth
Revenue grew 8% year-over-year to $704 million; net revenue rose ~3.6%-4% to $585 million, with all five segments delivering revenue and net revenue growth in Q1.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA increased 9% year-over-year to $89.7 million, representing a 15.3% margin, an improvement of 75 basis points versus prior year.
Earnings Per Share Improvement
Adjusted EPS for the quarter was $0.17, a 31% increase versus the first quarter last year, driven by higher adjusted EBITDA and share repurchases.
Record Net New Business
Record-breaking Q1 net new business of $141 million; trailing 12-month wins reached $486 million, and management highlighted multiple large-scale wins and ~4 major assignments in final negotiations.
Digital Transformation Momentum
Digital Transformation net revenue rose 9% year-over-year to $96.5 million; 2-year organic net revenue stack showed >22% growth in Q1 and management expects mid-teens acceleration in H2.
Early Traction for Enterprise Tech Products
Enterprise tech sales booked $12 million toward a $25 million initial target; 3 active engagements (including Con Edison and a Microsoft division), nine active opportunities, and partnerships with Palantir, Adobe, The Trade Desk and others.
Marketing Cloud and Product Strength
Marketing Cloud cited as over $100 million in revenue company-wide; Marketing Cloud grew 5.3% to $26.5 million in Q1; BERA grew 28% YoY and Harris Quest family grew 19%.
Operating Efficiency and Cost Controls
Payroll as a percent of net revenue declined 110 basis points to 63.9%; G&A as a percent of net revenue declined ~50 basis points to 19.6%; cost actions have generated $54 million of savings since April last year, on track to $80-$100 million.
Cash Flow, Deleveraging and Credit
Cash flow from operations improved by $34 million versus prior-year quarter; free cash flow within the quarter improved by $18 million YoY; net leverage improved by 0.17 turns to 3.11x and Moody's affirmed B1 rating with positive outlook; management expects exit-2026 leverage in the mid-2s.
Share Repurchase and Capital Allocation
Repurchased ~7.3 million shares in the quarter for approximately $45 million at an average price of $6.16; shares outstanding fell to ~246 million (down ~19 million since last April).
Client Retention and Expansion
Top 100 clients grew ~15% in size; client churn decreased by more than 10% versus Q1 2025 due to new client accountability program and AI-driven monitoring; the company expects churn reduction to further boost organic growth.
Affirmed Full-Year Guidance
Management reiterated full-year guidance: total net revenue growth of 8%-12%, adjusted EBITDA $475M-$525M, free cash flow conversion 50%-60% of adjusted EBITDA, and adjusted EPS of $0.98-$1.12.
STGW Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
STGW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 01, 2026 | $6.27 | $6.36 | +1.44% |
Mar 10, 2026 | $5.24 | $6.16 | +17.56% |
Nov 06, 2025 | $4.81 | $5.62 | +16.84% |
Jul 31, 2025 | $5.16 | $5.73 | +11.05% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Stagwell (STGW) report earnings?
Stagwell (STGW) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Stagwell (STGW) earnings time?
Stagwell (STGW) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is STGW EPS forecast?
STGW EPS forecast for the fiscal quarter 2026 (Q2) is 0.19.