Stagwell Q3 revenue misses estimates

Stagwell

06/11/2025 12:26

Overview

Stagwell Q3 revenue grows 4% yr/yr, slightly missing analyst expectations

Adjusted EPS for Q3 beats analyst expectations

Q3 Adjusted EBITDA of $115 mln missed analyst estimates

Company announces partnership with Palantir, focusing on AI in marketing

Outlook

Stagwell expects 2025 net revenue growth of ~8%

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

Stagwell anticipates 2025 adjusted EPS between $0.75 and $0.88

Result Drivers

NON-ADVOCACY GROWTH - Stagwell reports 12% net revenue growth in digital transformation and 9% in marketing services, excluding advocacy

COST MANAGEMENT - CFO Ryan Greene attributes 19% adjusted EBITDA margin to labor efficiency and cost discipline

AI PARTNERSHIP - Stagwell announces partnership with Palantir to enhance AI capabilities in marketing

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$743 mln
$744.20 mln (7 Analysts)
Q3 Adjusted EPS
Beat
$0.24
$0.23 (6 Analysts)
Q3 EPS
$0.09
Q3 Net Income
$25 mln
Q3 Adjusted EBITDA
Miss
$115 mln
$116.80 mln (6 Analysts)
Q3 Adjusted EBITDA Margin
19.00%
Q3 Revenue Growth
4.00%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 39.9% above its November 5 closing price of $4.81

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPn4JlzLFa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)