Stagwell Inc (STGW): Results of Operations and Financial Condition
Stagwell Inc (STGW) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE ISSUE STAGWELL INC. (NASDAQ: STGW ) REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 Q2 YoY Revenue Growth of 11% to $786 million ; Q2 YoY Net Revenue Growth of 6% to $632 million Q2 YoY Digital Transformation Organic Net Revenue Growth of 18% ; Two-
How this was made
The 30-second read
Why it matters
The key tradable items are the raised adjusted EPS guidance range and the accompanying operating metrics (organic growth acceleration, adjusted EBITDA margin, and record net new business).
Market read
Guidance raise plus strong Q2 operating KPIs can drive immediate estimate revisions and sentiment for marketing services and AI-enabled advertising spend.
What to watch
Free cash flow conversion is reiterated (50% to 60%), but the filing does not provide a detailed bridge for why conversion should improve further versus prior expectations.
STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026
Second-quarter revenue, net revenue, organic net revenue growth, adjusted EBITDA and adjusted EPS increased, while the company raised adjusted EPS guidance. GAAP results remained a net loss attributable to Stagwell Inc. Common Shareholders.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $786 million | – | 11% |
| Year-to-date RevenueGAAP | $1,490 million | – | 10% |
| Revenue organic growthother | 10% | – | – |
| Year-to-date Revenue organic growthother | 8% | – | – |
| Net Revenueother | $632 million | – | 6% |
| Year-to-date Net Revenueother | $1,216 million | – | 5% |
| Net Revenue organic growthnon-GAAP | 5% | – | – |
| Year-to-date Net Revenue organic growthnon-GAAP | 3% | – | – |
| Net Loss attributable to Stagwell Inc. Common ShareholdersGAAP | $8 million | – | – |
| Year-to-date Net Loss attributable to Stagwell Inc. Common ShareholdersGAAP | $21 million | – | – |
| Loss Per Share attributable to Stagwell Inc. Common ShareholdersGAAP | $(0.03) | – | – |
| Year-to-date Loss Per Share attributable to Stagwell Inc. Common ShareholdersGAAP | $(0.08) | – | – |
| Adjusted EBITDAnon-GAAP | $109 million | – | 15% |
| Year-to-date Adjusted EBITDAnon-GAAP | $198 million | – | 12% |
| Adjusted EBITDA Marginnon-GAAP | 17% on net revenue | – | – |
| Year-to-date Adjusted EBITDA Marginnon-GAAP | 16% | – | – |
| Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholdersnon-GAAP | $0.25 | – | 39% |
| Year-to-date Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholdersnon-GAAP | $0.42 | – | – |
| Year-to-date Net Cash provided by Operating ActivitiesGAAP | $64 million | – | – |
| Net new businessnon-GAAP | $171 million | – | – |
| Last twelve-month net new businessnon-GAAP | $540 million | – | – |
| Two-Year Net Revenue Growth Stack for Digital Transformationother | 34% | – | – |
| Two-Year Organic Net Revenue Growth Stack for Digital Transformationnon-GAAP | 29% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Digital TransformationThe company said growth was led by its Digital Transformation segment. | $107 million | – | an organic increase of 18% |
2026 outlook
- RevenueTotal Net Revenue growth of 8% to 12%
- NoteAdjusted EPS guidance of $1.03 - $1.17
- NoteAdjusted EBITDA of $475 million to $525 million
- NoteFree Cash Flow Conversion of 50% to 60%
- NoteGuidance includes anticipated impact from acquisitions or dispositions.
Capital returns
- continued share repurchases
What drove it
- Q2 Revenue increased 10% organically versus the prior year period.
- Q2 Net Revenue increased 5% organically versus the prior year period.
- Digital Transformation Net Revenue posted an organic increase of 18% versus the prior year period.
- Net new business was $171 million in the second quarter, with last twelve-month net new business of $540 million.
- Management cited recent wins with IBM, Adobe, Mondelez and Heineken.
- Management said Communications grew 12% as the political cycle starts to ramp up.
Concerns
- Q2 Net Loss attributable to Stagwell Inc. Common Shareholders was $8 million versus $5 million in the prior year period.
- YTD Net Loss attributable to Stagwell Inc. Common Shareholders was $21 million versus $8 million in the prior year period.
- Q2 Loss Per Share attributable to Stagwell Inc. Common Shareholders was $(0.03) versus $(0.02).
- The release did not report a free cash flow amount, cash balance, debt balance, gross margin, operating income or a GAAP net income figure.
What to watch
- Delivery against Total Net Revenue growth of 8% to 12% in 2026.
- Delivery against Adjusted EBITDA of $475 million to $525 million in 2026.
- Delivery against Adjusted EPS guidance of $1.03 - $1.17.
- Delivery against Free Cash Flow Conversion of 50% to 60%.
- Sustainability of Digital Transformation organic net revenue growth and net new business generation.
- Management's expectation to deliver double-digit growth in the second half, the lions' share of which will be organic.
Balance sheet and cash flow
- YTD Net Cash provided by Operating Activities of $64 million versus $55 million in the prior year period
Analysis
Stagwell reported Q2 Revenue of $786 million, up 11% versus the prior-year period, and Q2 Net Revenue of $632 million, up 6%. Organic growth was also positive, with Revenue increasing 10% organically and Net Revenue increasing 5% organically. Year-to-date Revenue was $1,490 million, up 10%, while year-to-date Net Revenue was $1,216 million, up 5%.
Digital Transformation was a principal growth contributor. The segment reported Q2 Digital Transformation Net Revenue of $107 million and an organic increase of 18% versus the prior-year period. The company also reported a Two-Year Net Revenue Growth Stack for Digital Transformation of 34% and a Two-Year Organic Net Revenue Growth Stack for Digital Transformation of 29%. Management additionally identified 12% growth in Communications as the political cycle starts to ramp up, although the filing did not provide Communications revenue.
Profitability improved on the company's non-GAAP measures. Q2 Adjusted EBITDA increased 15% to $109 million, with a 17% Adjusted EBITDA Margin on net revenue. Year-to-date Adjusted EBITDA increased 12% to $198 million and the year-to-date Adjusted EBITDA Margin was 16%. Q2 Adjusted Earnings Per Share increased 39% to $0.25 from $0.18, while year-to-date Adjusted Earnings Per Share was $0.42 versus $0.30. These gains occurred alongside a Q2 Net Loss attributable to Stagwell Inc. Common Shareholders of $8 million, compared with $5 million in the prior-year period.
Cash generation increased on the reported operating-cash-flow measure, with year-to-date Net Cash provided by Operating Activities of $64 million versus $55 million in the prior-year period. The release referenced continued share repurchases but did not disclose repurchase spending or share count. Net new business was $171 million in the second quarter and $540 million over the last twelve months, with management citing wins with IBM, Adobe, Mondelez and Heineken.
For 2026, Stagwell raised Adjusted EPS guidance to $1.03 - $1.17 from $0.98 - $1.12. It reiterated Total Net Revenue growth of 8% to 12%, Adjusted EBITDA of $475 million to $525 million, and Free Cash Flow Conversion of 50% to 60%. Management stated that it expects to deliver double-digit growth in the second half, the lions' share of which will be organic, and noted that guidance includes anticipated impact from acquisitions or dispositions.
Management, verbatim
Our second quarter results demonstrate Stagwell is thriving in today’s AI era. Stagwell's unique combination of software, services and engineers is being embraced by the industry leading to another record-breaking Net New Business quarter of $171 million, highlighted by recent wins with IBM, Adobe, Mondelez and Heineken.
Mark Penn, Chairman and CEO of Stagwell
Our organic net revenue growth continues to accelerate, led by 18% growth in our Digital Transformation segment, and 12% growth in Communications as the political cycle starts to ramp up. Strong growth, combined with proactive cost management and share repurchases, means we are raising our adjusted EPS outlook for the year today, and we expect to deliver double-digit growth in the second half, the lions' share of which will be organic.
Mark Penn, Chairman and CEO of Stagwell
This was Stagwell's biggest ever second quarter. As we grew our top-line, we controlled costs to expand adjusted EBITDA 15% year-over-year to $109 million. These strong results, combined with continued share repurchases, resulted in 39% growth in adjusted EPS to $0.25. We are firmly on course to deliver on our full-year outlook, including our raised adjusted EPS guidance.
Ryan Greene, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter figures and quarter-over-quarter changes for all reported metrics.
- Prior-year dollar amounts for Revenue, year-to-date Revenue, Net Revenue, year-to-date Net Revenue, Digital Transformation Net Revenue, Adjusted EBITDA and year-to-date Adjusted EBITDA.
- Gross profit and gross margin.
- Operating income or loss and operating margin.
- Consolidated net income or loss excluding the attributable-to-common-shareholders measure.
- Actual free cash flow, capital expenditures, capitalized software spending and free cash flow conversion for the reported period.
- Cash balance, debt balance and other balance-sheet data.
- Dividend declaration or payment details.
- Share repurchase amount, shares repurchased and remaining authorization.
- Revenue and revenue comparison data for Communications.
- Segment revenue data beyond Digital Transformation.
- A quantitative reconciliation of 2026 non-GAAP guidance to the most directly comparable GAAP measures.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with Item 2.02 results for the three and six months ended June 30, 2026, including an updated FY2026 adjusted EPS outlook.
Ticker impact
Stagwell raised full-year 2026 adjusted EPS guidance to $1.03 to $1.17 after Q2 adjusted EPS rose 39% to $0.25.
Likely positive bias for the next session and into earnings revisions, assuming no offsetting margin or cash-flow deterioration.
The filing discloses a guidance increase plus multiple operating KPIs (revenue, adjusted EBITDA, net new business) that typically drive upward estimate revisions.
Market effects
Reinforces demand for AI-enabled marketing services and software-services hybrids, potentially supportive for ad-tech and marketing services sentiment.
Primarily US-listed sentiment; limited direct regional spillover beyond marketing/advertising services investors.
Global client wins cited (IBM, Adobe, Mondelez, Heineken) may support international demand perception for marketing transformation spend.
Counterpoint
Despite guidance raise, reported net loss widened year over year, so investors may focus on sustainability of profitability and cash conversion.
Key entities
- companyStagwell Inc.
NASDAQ-listed marketing transformation company reporting Q2 results and raising FY2026 adjusted EPS guidance.
- executiveMark Penn
Chairman and CEO quoted on AI-era performance and net new business.
- executiveRyan Greene
CFO quoted on cost control, adjusted EBITDA growth, and adjusted EPS growth.
