Stagwell Q2 revenue beats estimates, adjusted EPS up

Stagwell

31/07/2025 12:27

Overview

Stagwell Q2 revenue grows 5% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 beats consensus, reflecting strong operational performance

Adjusted EBITDA of $93 mln exceeds analyst forecasts, per LSEG data

Outlook

Stagwell reiterates 2025 net revenue growth of ~8%

Company expects 2025 adjusted EBITDA of $410 mln to $460 mln

Stagwell anticipates free cash flow conversion over 45% in 2025

Company projects 2025 adjusted EPS of $0.75 to $0.88

Result Drivers

DIGITAL TRANSFORMATION - Strong performance in digital transformation segment contributed to 12% net revenue growth excluding advocacy

NET NEW BUSINESS - Stagwell secured $117 mln in net new business during Q2, boosting overall revenue

COST SAVINGS - Actions taken for $20 mln in annualized cost savings, contributing to improved cash flow

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$707 mln
$693.80 mln (7 Analysts)
Q2 Adjusted EPS
Beat
$0.17
$0.16 (7 Analysts)
Q2 EPS
-$0.02
Q2 Net Income
-$5 mln
Q2 Adjusted EBITDA
Beat
$93 mln
$89.20 mln (6 Analysts)
Q2 Adjusted EBITDA Margin
16.0%
Q2 Revenue Growth
5.0%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advertising & marketing peer group is "buy"

Wall Street's median 12-month price target for Stagwell Inc is $8.00, about 35.5% above its July 30 closing price of $5.16

Press Release: ID:nPn2sb8kBa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)