Stagwell Inc. · NASDAQ:STGW
Stagwell — Q3 2026 Earnings Presentation
26 slides from Stagwell's earnings presentation, Oct 29, 2026
Slide 1: Earnings Presentation Third Quarter 2026
EARNINGS PRESENTATION Third Quarter 2026 OCTOBER 29 | 2026
Slide 2: Forward-looking statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking s
Slide 3: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES 3 In addition to its reported results, Stagwell Inc. has included in this earnings presentation certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP fina
Slide 4: Financial Outlook
4 FINANCIAL Outlook Note: Guidance as of 10/29/2026. The Company has excluded a quantitative reconciliation with respect to the Company’s 2026 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" on previous slide for additio
Slide 5: Our Operating Segments
5 OUR OPERATING Segments Marketing Services Scaling Brand Reach with AI-Powered Creativity Media & Commerce Delivering Data-Driven Outcomes for Brand Performance Communications Intelligent & Highly-Targeted Communications Strategies Digital Transformation Building & Designing Digital Platforms & Tec
Slide 6: Third Quarter Highlights
THIRD QUARTER Highlights 6 ACCELERATING GROWTH Organic Revenue growth of 11% YoY to $816M, Organic Net revenue growth of 7% YoY to $664M • Performance driven by organic net revenue growth of 23% in Digital Transformation; Organic two-year stack of 30% continues improving trend and demonstrates accel
Slide 7: Drivers
7 Drivers
Slide 8: Mark Penn: Stagwell is fast becoming the #1 Marketing Transformation company
Mark Penn CHAIRMAN & CEO 8 Note: Two-Year Stack calculated as current period growth plus prior year same period growth. Chart represents Organic Net Revenue Growth for the Digital Transformation segment. Refer to “Definitions of Non-GAAP Financial Measures” on Slide 3 of this presentation for defini
Slide 9: Exceeded Enterprise Technology Target
9 EXCEEDED ENTERPRISE TECHNOLOGY Target Preliminary Target Progress $25M $12M Identified Pipeline $59M Committed Revenue $71M Identified Pipeline + Committed Revenue
Slide 10: New Business Momentum
10 NEW BUSINESS Momentum $168M3Q26 NET NEW BUSINESS $586MLTM $31.3M3Q26ANNUALIZED NET REVENUE NOTABLE BUSINESS WINS & EXPANSIONS AVG. PER TOP 25 CLIENT
Slide 11: New Business Momentum
11 NEW BUSINESS Momentum $251M $324M $472M $586M 3Q23 3Q24 3Q25 3Q26 Note: Net New Business defined as estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period . GROWTH FROM TOP 100 CUSTOMERS (VERSUS 3Q25) 29% INCREASE IN LTM NET NEW BUSINESS (VERSUS 3Q25
Slide 12: Financials
12 Financials
Slide 13: 3Q26 & 9M26 Summary Combined Financials
13 3Q26 & 9M26 Summary Combined Financials Note: Figures may not foot due to rounding. Nine Months Ended Sept 30Three Months Ended Sept 30 2025202620252026 $2,101,556$2,306,477$742,998$816,027Revenue 324,718426,253128,476152,010Billable Costs 1,776,8381,880,224614,522664,017Net Revenue 1,136,7421,15
Slide 14: 3Q26 & 9M26 Net Revenue
14 3Q26 & 9M26 Net Revenue Note: Figures may not foot due to rounding. Nine Months Ended Sept 30, 2026Three Months Ended Sept 30, 2026 ChangeNet RevenueChangeNet Revenue $1,776,838$614,522September 30, 2025 4.8%84,6247.4%45,688Organic net revenue 0.6%10,5420.7%4,260Acquisitions (divestitures), net 0
Slide 15: 3Q26 & 9M26 Net Revenue by Geography
Note: Figures may not foot due to rounding. 3Q 15 YTD3Q26 Net Revenue Growth Organic Net Revenue Growth Net Revenue Growth Organic Net Revenue Growth 7.5%7.3%12.0%11.2%United States 7.2%6.3%(1.1%)(0.8%)United Kingdom (2.8%)(8.2%)(6.8%)(7.1%)Rest of World 5.8%4.8%8.1%7.4%TOTAL 80% 6% 14% % OF NET REV
Slide 16: 3Q26 & 9M26 Revenue Growth by Segment
YTD3Q26 Revenue Growth Organic Revenue Growth Revenue Growth Organic Revenue GrowthOPERATING SEGMENT 43.4%39.7%110.1%108.6%The Marketing Cloud 18.8%17.2%21.8%21.5%Digital Transformation 4.9%(0.4%)(3.4%)(3.2%)Media & Commerce 31.4%28.6%45.4%40.0%Communications (3.7%)(0.4%)(12.2%)(6.8%)Marketing Servi
Slide 17: 3Q26 & 9M26 Net Revenue Growth by Segment
YTD3Q26 Net Revenue Growth Organic Net Revenue Growth Net Revenue Growth Organic Net Revenue GrowthOPERATING SEGMENT 43.2%39.5%109.6%108.4%The Marketing Cloud 17.7%16.5%23.5%23.1%Digital Transformation 1.3%0.0%(2.3%)(2.1%)Media & Commerce 16.6%12.7%28.0%20.0%Communications (2.9%)(2.2%)(9.3%)(7.5%)Ma
Slide 18: 3Q26 & 9M26 Adj. EBITDA Growth by Segment
YTD3Q26OPERATING SEGMENT N/AN/AThe Marketing Cloud 38.2%47.1%Digital Transformation 0.9%(19.5%)Media & Commerce 56.4%90.8%Communications (9.3%)(27.1%)Marketing Services 17.3%24.8%TOTAL 14% 22% 11% 28% 24% Adj. EBITDA* Growth Y/Y Note: Figures may not foot due to rounding. *Adjusted EBITDA percentage
Slide 19: Liquidity
19 LIQUIDITY Note: Figures may not foot due to rounding. $ in Millions AVAILABLE LIQUIDITY (AS OF 09/30/2026) $750Commitment Under Credit Facility 324Drawn 16Letters of Credit $410Undrawn Commitments Under Facility 132Total Cash & Cash Equivalents $542TOTAL AVAILABLE LIQUIDITY
Slide 20: Maintaining Discipline Around Deferred Acquisition Costs
20 Note: Figures may not foot due to rounding. MAINTAINING Discipline AROUND DEFERRED ACQUISITION COSTS DAC DECREASED BY $13M FROM 3Q25 QUARTER-END BALANCE ($2M) FROM 3Q24 QUARTER-END BALANCE $70M FROM 3Q23 QUARTER-END BALANCE $134M $62M $77M $64M 3Q23 3Q24 3Q25 3Q26
Slide 21: 3Q26 & YTD26 Adjusted Earnings Per Share
21 3Q26 & YTD26 Adjusted Earnings Per Share Note: Numbers may not foot due to rounding. Nine Months Ended Sept 30, 2026 Three Months Ended Sept 30, 2026 NON-GAAPADJUSTMENTSREPORTED (GAAP)NON-GAAPADJUSTMENTSREPORTED (GAAP)$ and Shares in Thousands $ 190,663$193,633$ (2,970)$ 85,978$67,859$ 18,119Net
Slide 22: 3Q26 & YTD26 GAAP Consolidated Operating Performance
22 3Q26 & YTD26 GAAP Consolidated Operating Performance Note: Numbers may not foot due to rounding. Nine Months Ended Sept 30Three Months Ended Sept 30 2025202620252026$ and Shares in Thousands $2,101,556$2,306,477$742,998$816,027Revenue 1,342,2401,488,293470,937511,698Cost of services 528,845611,32
Slide 23: Capital Structure
23 CAPITAL Structure 1. A portion of the DAC will be paid with approximately 2.4m shares assuming conversion as of 10/23/26. 2. Includes redeemable non-controlling interest and obligations in connection with profit interests held by employees. 3. Non-consolidated investments 4. Share Count does not
Slide 24: Share Count Trajectory
24 SHARE COUNT Trajectory Note: Shares Outstanding includes all Class A, B and C shares outstanding as reported in the full-year earnings presentation related to the specified year. Class B and Class C shares are no longer extant.. 298.2M 292.6M 270.1M 266.5M 252.3M 246.4M 244.4M 244.6M YE21 YE22 YE
Slide 25: Illustrative Valuation Scenario: Pivot to Digital Transformation & Software
25 ILLUSTRATIVE VALUATION SCENARIO Pivot to Digital Transformation & Software Numbers may not foot due to rounding Enterprise ValueMultiple2028 Adjusted EBITDA $ 2,23712.0x$ 186Digital Transformation $ 2,04015.0x$ 136The Marketing Cloud $ 2,7417.0x$ 392All Other $ 7,0179.8x$ 714TOTAL $ (466)(Net Deb
Slide 26: Contact Us
26 CONTACT US: [email protected]