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 & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION 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
Slide 3: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES 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 financ
Slide 4: Financial Outlook
FINANCIAL Raise Outlook $490M - $540M ADJUSTED EBITDA $1.07 - $1.21 IN ADJUSTED EARNINGS PER SHARE Reiterate 8% - 12% TOTAL NET REVENUE GROWTH 50% - 60% EBITDA CONVERSION ON FREE CASH FLOW Note: Guidance as of 10/29/2026. The Company has excluded a quantitative reconciliation with respect to the Com
Slide 5: Our Operating Segments
OUR OPERATING Segments 8% % OF 3Q26 NET REVENUE BY SEGMENT 18% 1 The Marketing Cloud SaaS & DaaS Tools for the Modern Marketer 2 Digital Transformation 24% Building & Designing Digital Platforms & Technology 3 Media & Commerce Delivering Data-Driven Outcomes for Brand Performance 18% 4 Communication
Slide 6: Third Quarter Highlights
THIRD QUARTER ACCELERATING GROWTH Highlights 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 acceler
Slide 7: Growth Drivers
Growth Drivers 7
Slide 8: Mark Penn: Digital Transformation Growth
Mark Penn 23% 9 ORGANIC CONSECUTIVE CHAIRMAN & CEO NET REVENUE QUARTERS OF GROWTH 2-YEAR STACK VERSUS 3Q25 IMPROVEMENT “ Stagwell is fast becoming the #1 Marketing Transformation company in the world TWO-YEAR ORGANIC NET REVENUE GROWTH STACK We are increasingly the mix of software and 29.2% services
Slide 9: Enterprise Technology Target Exceeded
EXCEEDED ENTERPRISE $71M TECHNOLOGY Identified Pipeline + Committed Revenue Target $12M Identified Pipeline $59M $25M Committed Revenue Preliminary Target Progress 9
Slide 10: New Business Momentum
NEW BUSINESS Momentum NOTABLE BUSINESS WINS & EXPANSIONS 3Q26 $168M NET NEW BUSINESS LTM $586M ANNUALIZED NET REVENUE 3Q26 $31.3M AVG. PER TOP 25 CLIENT 10
Slide 11: New Business Momentum and Top 100 Customers
NEW BUSINESS $586M Momentum $472M 29% GROWTH $324M FROM TOP 100 CUSTOMERS (VERSUS 3Q25) $251M $114M INCREASE IN LTM NET NEW BUSINESS (VERSUS 3Q25) 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 peri
Slide 12: 2026 Financials
2026 Financials 12
Slide 13: Summary Combined Financials 3Q26 & 9M26
3Q26 & 9M26 Summary Combined Financials Three Months Ended Sept 30 Nine Months Ended Sept 30 2026 2025 2026 2025 Revenue $816,027 $742,998 $2,306,477 $2,101,556 Billable Costs 152,010 128,476 426,253 324,718 Net Revenue 664,017 614,522 1,880,224 1,776,838 Staff costs 385,617 387,210 1,150,185 1,136,
Slide 14: Net Revenue 3Q26 & 9M26
3Q26 & 9M26 Net Revenue Three Months Ended Sept 30, 2026 Nine Months Ended Sept 30, 2026 Net Revenue Change Net Revenue Change September 30, 2025 $614,522 $1,776,838 Organic net revenue 45,688 7.4% 84,624 4.8% Acquisitions 4,260 0.7% 10,542 0.6% (divestitures), net Foreign currency (453) (0.1%) 8,22
Slide 15: Net Revenue by Geography
3Q26 & 9M26 NET REVENUE by Geography % OF NET REVENUE 3Q26 YTD 3Q Organic Net Net Organic Net Net Revenue Revenue Revenue Revenue 6% Growth Growth Growth Growth 14% United States 11.2% 12.0% 7.3% 7.5% United Kingdom (0.8%) (1.1%) 6.3% 7.2% 80% Rest of World (7.1%) (6.8%) (8.2%) (2.8%) TOTAL 7.4% 8.1
Slide 16: Revenue Growth by Segment
3Q26 & 9M26 REVENUE GROWTH by Segment % OF TOTAL REVENUE 3Q26 YTD Organic Organic 3Q Revenue Revenue Growth Revenue Revenue Growth 7% OPERATING SEGMENT Growth Growth 15% The Marketing Cloud 108.6% 110.1% 39.7% 43.4% 21% Digital Transformation 21.5% 21.8% 17.2% 18.8% 26% Media & Commerce (3.2%) (3.4%
Slide 17: Net Revenue Growth by Segment
3Q26 & 9M26 NET REVENUE GROWTH by Segment % OF TOTAL NET REVENUE 3Q26 YTD Organic Organic 3Q Net Revenue Net Revenue Net Revenue Net Revenue 8% OPERATING SEGMENT Growth Growth Growth Growth 18% The Marketing Cloud 108.4% 109.6% 39.5% 43.2% 24% Digital Transformation 23.1% 23.5% 16.5% 17.7% Media & C
Slide 18: Adj. EBITDA Growth by Segment
3Q26 & 9M26 ADJ. EBITDA GROWTH by Segment % OF TOTAL ADJ. EBITDA Adj. EBITDA* Growth Y/Y 3Q OPERATING SEGMENT 3Q26 YTD 14% The Marketing Cloud N/A N/A 22% Digital Transformation 47.1% 38.2% 11% Media & Commerce (19.5%) 0.9% 28% Communications 90.8% 56.4% 24% Marketing Services (27.1%) (9.3%) TOTAL 2
Slide 19: Liquidity
LIQUIDITY AVAILABLE LIQUIDITY (AS OF 09/30/2026) $ in Millions Commitment Under Credit Facility $750 Drawn 324 Letters of Credit 16 Undrawn Commitments Under Facility $410 Total Cash & Cash Equivalents 132 TOTAL AVAILABLE LIQUIDITY $542 Note: Figures may not foot due to rounding. 19
Slide 20: Maintaining Discipline Around Deferred Acquisition Costs
MAINTAINING DAC DECREASED BY $13M FROM 3Q25 QUARTER-END BALANCE Discipline ($2M) FROM 3Q24 QUARTER-END BALANCE $70M FROM 3Q23 QUARTER-END BALANCE AROUND DEFERRED $134M ACQUISITION COSTS $77M $62M $64M 3Q23 3Q24 3Q25 3Q26 Note: Figures may not foot due to rounding. 20
Slide 21: Adjusted Earnings Per Share
3Q26 & YTD26 Adjusted Earnings Per Share Three Months Nine Months Ended Sept 30, 2026 Ended Sept 30, 2026 REPORTED REPORTED $ and Shares in Thousands ADJUSTMENTS NON-GAAP ADJUSTMENTS NON-GAAP (GAAP) (GAAP) Net income (loss) attributable to Stagwell Inc. common shareholders $ 18,119 $67,859 $ 85,978
Slide 22: GAAP Consolidated Operating Performance
3Q26 & YTD26 GAAP Consolidated Operating Performance Three Months Ended Sept 30 Nine Months Ended Sept 30 $ and Shares in Thousands 2026 2025 2026 2025 Revenue $816,027 $742,998 $2,306,477 $2,101,556 Cost of services 511,698 470,937 1,488,293 1,342,240 Office & general expenses 206,942 166,422 611,3
Slide 23: Capital Structure
CAPITAL Structure NET DEBT & DEBT-LIKE ($M, AS OF 09/30/2026) SHARE COUNT4 (THOUSANDS, AS OF 10/23/2026) Revolving Credit Facility $ 324 Class A 247,973 Bonds 1,100 NCI 16 Share-based awards 23,219 DAC1 64 DILUTED 271,192 RNCI2 29 Less: Investments3 (27) Less: Cash (132) TOTAL NET DEBT & DEBT-LIKE $
Slide 24: Share Count Trajectory
SHARE COUNT Trajectory SHARES OUTSTANDING 10M REDUCTION IN SHARE COUNT (VERSUS 3Q25) 298.2M 292.6M 54M 270.1M 266.5M REDUCTION IN 252.3M 246.4M 244.4M 244.6M SHARE COUNT (VERSUS YEAR-END 2021) $326M AVAILABLE TO REPURCHASE SHARES UNDER CURRENT PLAN YE21 YE22 YE23 YE24 YE25 1Q26 2Q26 3Q26 Note: Share
Slide 25: Pivot to Digital Transformation & Software: Illustrative Valuation Scenario
ILLUSTRATIVE VALUATION SCENARIO Pivot to Digital Transformation & Software 2028 Adjusted EBITDA Multiple Enterprise Value Digital Transformation $ 186 12.0x $ 2,237 The Marketing Cloud $ 136 15.0x $ 2,040 All Other $ 392 7.0x $ 2,741 TOTAL $ 714 9.8x $ 7,017 Key Assumptions: (Net Debt) $ (466) • 4Q2
Slide 26: Thank You
Thank You CONTACT US: [email protected] 26