Stagwell expects first quarter 2026 new business to be the strongest in its history, giving the holding company reason to be optimistic about the year ahead, according to CEO Mark Penn.
“I can say with some confidence that our Q1 2026 net new business is shaping up to be the strongest in the history of the firm,” Penn said during Stagwell’s fourth quarter and full year earnings call Tuesday.
Penn attributed the opportunity to upheaval at larger rivals. “We see great opportunity in 2026 to capitalize on an industry distracted by restructurings and mergers, and bolster our position as a winner in the age of AI,” he said.
The remarks came alongside Stagwell’s latest financial results, which showed modest revenue growth and stronger profitability.
The Numbers
- $807 million: Q4 2025 revenue (+2% year over year)
- $651 million: Q4 net revenue (+3%)
- $129 million: Q4 adjusted EBITDA; ~20% margin on net revenue
- $0.30: Q4 adjusted diluted EPS
- $2.9 billion: Full-year 2025 revenue (+2%)
- $2.43 billion: Full-year net revenue (+6%)
- $422 million: Full-year adjusted EBITDA; 17% margin on net revenue
- $0.83: Full-year adjusted diluted EPS
Watercooler Talk
Stagwell’s 2025 results reflect steady growth across its core businesses as the company pushes further into AI-powered marketing tools.
Full-year net revenue rose 6% to $2.43 billion, while adjusted EBITDA reached $422 million at a 17% margin. Net income attributable to common shareholders jumped to $29 million from $2 million the prior year.
Growth was led by digital transformation (+13% net revenue) and marketing services (+6%). Stagwell’s Marketing Cloud unit had a standout year, with net revenue surging 230%.
CFO Ryan Greene credited improved efficiency and cost discipline for the margin gains. “2025 marked an inflection year for Stagwell, with clear momentum in the underlying business and improving efficiency contributing to strong year-over-year net revenue, adjusted EBITDA, and adjusted EPS growth,” he said.
The company also expanded its stock repurchase program by $350 million, bringing total authorization to $725 million with about $400 million remaining.
For 2026, Stagwell is projecting net revenue growth of 8% to 12% and adjusted EBITDA of $475 million to $525 million.
Key Quote
“With industry consolidation and chaos, we’re seeing increased opportunities to win new larger wins,” Penn said.
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