olivLaw · US equity research
Stagwell Inc. STGW
Services-Advertising Agencies · SIC 7311 · Vertical: Services-Advertising Agencies (SIC 7311)
Stagwell Inc. is a global network of marketing and communications agencies that defines its activity through artificial intelligence and technology applied to advertising. The company is going through a period of accelerated organic growth in 2026, supported by the Digital Transformation segment and a record level of new business, while the political cycle boosts the communications segment. For 2026 management raised its Adjusted EPS outlook, a signal relevant to investors tracking the company's shift toward digital services and SaaS.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Stagwell Inc. (STGW) stock was 10.83 USD (−1.55% on the day), with market capitalisation 2.7 bn USD, P/E 277.1 on diluted EPS of -3.39 USD over the last 12 months, beta 1.08, 52-week range 4.40–11.00 USD. Latest reported quarter (Q3 2026): revenue of 816.0 m USD (+9.8% YoY), net income of 18.1 m USD (−26.4% YoY).
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.9
- overbought (≥ 70)
- Bollinger (20, 2)
- 7.78 – 11.06
- in the upper half of the band · %B 0.93 · band width 34.8%
- SMA 50 / 200
- 8.89 / 7.26
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.56 / 0.35
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +27.4% | −1.1% | +28.5 pp | — |
| 3 months | +18.8% | −0.5% | +19.2 pp | — |
| 6 months | +67.6% | +4.4% | +63.3 pp | — |
| Year to date | +117.9% | +12.3% | +105.6 pp | — |
| 1 year | +125.2% | +13.5% | +111.6 pp | −15.3% |
| 3 years | +132.4% | +76.4% | +56.0 pp | −19.9% |
| 5 years | +2.1% | +63.7% | −61.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 788.7 m | 651.7 m | 706.8 m | 743.0 m | 807.4 m | 704.1 m | 786.3 m | 816.0 m |
| Cost of revenue | 502.5 m | 412.1 m | 459.2 m | 470.9 m | 503.7 m | 459.5 m | 517.1 m | 511.7 m |
| Operating income | 43.5 m | 18.3 m | 23.2 m | 60.9 m | 56.6 m | 9.6 m | 11.5 m | 48.1 m |
| Depreciation & amortisation | 38.8 m | 42.0 m | 41.4 m | 44.3 m | 43.6 m | 44.3 m | 44.0 m | 48.3 m |
| Interest expense | 24.0 m | 23.4 m | 23.5 m | 25.2 m | 24.4 m | 23.3 m | 22.3 m | 24.0 m |
| Pre-tax income | 19.6 m | -3.6 m | -2.0 m | 33.3 m | 41.1 m | -16.7 m | -9.2 m | 28.8 m |
| Income tax | 3.7 m | 1.7 m | 2.7 m | 9.6 m | 24.3 m | -2.9 m | -348.0 k | 10.9 m |
| Net income | 3.2 m | -2.9 m | -5.3 m | 24.6 m | 12.7 m | -13.0 m | -8.1 m | 18.1 m |
| Operating cash flow | 212.1 m | -60.0 m | 114.8 m ≈ | -24.0 m ≈ | 260.3 m | -26.5 m | 90.2 m ≈ | 88.6 m ≈ |
| Capex | 2.2 m | 5.8 m | 12.3 m ≈ | 8.3 m ≈ | 17.4 m | 10.7 m | 11.0 m ≈ | 5.8 m ≈ |
| Share repurchases | 7.0 m | 11.1 m | 56.4 m ≈ | 37.7 m ≈ | 29.1 m | 40.7 m | 47.2 m ≈ | 2.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | ⚠ 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.5 bn | 1.4 bn | 888.0 m | 1.5 bn | 2.7 bn | 2.5 bn | 2.8 bn | 2.9 bn |
| Revenue YoY | −2.6% | −4.0% | — | +65.5% | +82.9% | −6.0% | +12.4% | +2.4% |
| Net income | -130.0 m | -5.3 m | 56.4 m | 21.0 m | 19.9 m | 134.0 k | 2.3 m | 29.1 m |
| Net income YoY | −153.8% | unavailable | — | −62.7% | −5.3% | −99.3% | +1,585.8% | +1,188.2% |
| Diluted EPS | -2.31 | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS YoY | −162.3% | unavailable | — | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -8.8% | -0.4% | 6.3% | 1.4% | 0.7% | 0.0% | 0.1% | 1.0% |
| Free cash flow | -3.0 m | 67.9 m | 133.4 m | 192.1 m | 324.9 m | 66.8 m | 123.9 m | 247.3 m |
The series breaks before 2020: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 104.5 m USD
- Financial debt
- 1.3 bn USD
- Net debt
- 1.2 bn USD
- Equity
- 776.4 m USD
- Total assets
- 4.2 bn USD
- Debt / equity
- 1.71x
- Current ratio
- 0.79x
- ROE
- 3.7%
- ROA
- 0.7%
- FCF margin
- 8.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 888.0 m | 1.5 bn | 2.7 bn | 2.5 bn | 2.8 bn | 2.9 bn | SEC (XBRL)· 13 Mar 2026verified |
| Cost of revenue | 571.6 m | 906.9 m | 1.7 bn | 1.6 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 13 Mar 2026verified |
| Gross profit | 316.4 m ≈ | 562.5 m ≈ | 1.0 bn ≈ | 906.0 m ≈ | 998.2 m ≈ | 1.1 bn ≈ | SEC (XBRL)· 13 Mar 2026derived |
| Operating income | 83.7 m | 44.7 m | 159.2 m | 90.5 m | 133.1 m | 159.0 m | SEC (XBRL)· 13 Mar 2026verified |
| Depreciation & amortisation | 41.0 m | 77.5 m | 131.3 m | 142.8 m | 151.7 m | 171.2 m | SEC (XBRL)· 13 Mar 2026verified |
| EBITDA | 124.8 m ≈ | 122.2 m ≈ | 290.5 m ≈ | 233.4 m ≈ | 284.7 m ≈ | 330.3 m ≈ | SEC (XBRL)· 13 Mar 2026derived |
| Interest expense | 6.2 m | 31.9 m | 76.1 m | 90.6 m | 92.3 m | 96.4 m | SEC (XBRL)· 13 Mar 2026verified |
| Pre-tax income | 77.3 m | 59.6 m | 75.6 m | 91.1 m | 37.7 m | 68.8 m | SEC (XBRL)· 13 Mar 2026verified |
| Income tax | 5.9 m | 23.4 m | 25.5 m | 40.6 m | 13.2 m | 38.3 m | SEC (XBRL)· 13 Mar 2026verified |
| Net income | 56.4 m | 21.0 m | 19.9 m | 134.0 k | 2.3 m | 29.1 m | SEC (XBRL)· 13 Mar 2026verified |
| Weighted average diluted shares | 72.9 m | 90.4 m | 296.6 m | 122.2 m | 115.8 m | 264.5 m | SEC (XBRL)· 13 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 92.5 m | 184.0 m | 220.6 m | 119.7 m | 131.3 m | 104.5 m | SEC (XBRL)· 13 Mar 2026verified |
| Receivables | 225.7 m | 696.9 m | 645.8 m | 697.2 m | 716.4 m | 735.8 m | SEC (XBRL)· 13 Mar 2026verified |
| Current assets | 365.7 m | 1.0 bn | 1.0 bn | 1.0 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 13 Mar 2026verified |
| Property, plant & equipment, net | 35.6 m | 97.5 m | 98.9 m | 77.8 m | 72.7 m | 73.1 m | SEC (XBRL)· 13 Mar 2026verified |
| Goodwill | 351.7 m | 1.7 bn | 1.6 bn | 1.5 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 13 Mar 2026verified |
| Intangibles (excl. goodwill) | 186.0 m | 958.8 m | 907.5 m | 818.2 m | 836.8 m | 834.2 m | SEC (XBRL)· 13 Mar 2026verified |
| Total assets | 1.0 bn | 4.1 bn | 4.0 bn | 3.8 bn | 3.9 bn | 4.2 bn | SEC (XBRL)· 13 Mar 2026verified |
| Accounts payable | 147.8 m | 271.8 m | 357.3 m | 415.0 m | 449.3 m | 548.3 m | SEC (XBRL)· 13 Mar 2026verified |
| Short-term debt | 994.0 k | 0 | — | — | — | — | SEC (XBRL)· 17 Mar 2022verified |
| Long-term debt | 198.0 m | 1.2 bn | 1.2 bn | 1.1 bn | 1.4 bn | 1.3 bn | SEC (XBRL)· 13 Mar 2026verified |
| Current liabilities | 337.0 m | 1.3 bn | 1.4 bn | 1.4 bn | 1.4 bn | 1.5 bn | SEC (XBRL)· 13 Mar 2026verified |
| Total liabilities | 614.7 m | 3.1 bn | 3.0 bn | 2.9 bn | 3.1 bn | 3.4 bn | SEC (XBRL)· 13 Mar 2026verified |
| Equity | 398.5 m | 879.0 m | 928.8 m | 825.3 m | 776.9 m | 776.4 m | SEC (XBRL)· 13 Mar 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 138.1 m | 200.9 m | 347.6 m | 81.0 m | 142.9 m | 291.0 m | SEC (XBRL)· 13 Mar 2026verified |
| Capex | 4.7 m | 8.8 m | 22.7 m | 14.2 m | 18.9 m | 43.7 m | SEC (XBRL)· 13 Mar 2026verified |
| Free cash flow | 133.4 m ≈ | 192.1 m ≈ | 324.9 m ≈ | 66.8 m ≈ | 123.9 m ≈ | 247.3 m ≈ | SEC (XBRL)· 13 Mar 2026derived |
| Investing cash flow | -29.0 m | 164.0 m | -116.3 m | 156.0 m | -162.5 m | -113.7 m | SEC (XBRL)· 13 Mar 2026verified |
| Financing cash flow | -80.1 m | -273.4 m | -186.7 m | -339.9 m | 36.9 m | -210.0 m | SEC (XBRL)· 13 Mar 2026verified |
| Share repurchases | 0 | 841.0 k | 70.3 m | 223.8 m | 108.2 m | 134.3 m | SEC (XBRL)· 13 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 34 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 2.7 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation35
- Balance sheet0
- Quality59
- Growth22
- Returns64
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 22.43 – 42.38 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)22.43 – 42.38 (Mid 29.61)WACC 7.8% · starting FCFF 446.8 m USD · terminal value share of EV 78%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -27.1%
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/Eunavailable · not enough peers
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 34/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 5.1% | 24 (on a fixed band) | 12% |
| Net margin · Quality | 0.3% | 75 (vs peers) | 7% |
| FCF conversion · Quality | 3,795.5% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 2.7% | 22 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 4.2x | 0 (on a fixed band) | 12% |
| Interest coverage · Balance sheet | 1.3x | 0 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 0.8x | 1 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 277.1x | 0 (on a fixed band) | 12% |
| EV/EBITDA · Valuation | 13.0x | 19 (on a fixed band) | 12% |
| FCF yield · Valuation | 13.7% | 100 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 4.5% | 64 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet0/100 · 3/3 factors with a value
- Growth· partial22/100 · 1/2 factors with a value
- Quality59/100 · 3/3 factors with a value
- Returns· partial64/100 · 1/2 factors with a value
- Valuation35/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Stagwell Inc (STGW). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 2.9 bn USD in 2025; YoY growth 2.4%; net margin 0.3%; ROE 1.3%; net debt/EBITDA 4.2x.
The estimated value range is 22.43–42.38 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 29.61 USD, the price of 10.83 USD leaves a potential of 173.4% (value / price − 1) and a margin of safety of 63.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 34/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 0.3%
- FCF conversion: 3,795.5%
- FCF yield: 13.7%
- The price is below the estimated value range
What contradicts it
- ROIC: 5.1%
- Revenue CAGR 3Y: 2.7%
- Net debt / EBITDA: 4.2x
- Interest coverage: 1.3x
- Current ratio: 0.8x
- P/E (TTM): 277.1x
- EV/EBITDA: 13.0x
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Payout ratio (FCF).
Versus the vertical median
Services-Advertising Agencies (SIC 7311) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| OMCOmnicom Group Inc. | 23.9 bn | 50.9 | 9.7% | 2.8% | +10.1% | +22% / +9% |
| STGWStagwell Inc | 2.7 bn | 277.1 | 1.3% | 0.3% | +2.4% | +125% / +132% |
| CRTOCriteo S.A. | 756.9 m | 11.2 | 6.3% | 4.0% | +0.6% | −23% / −38% |
| GRPNGroupon, Inc. | 633.6 m | — | — | -25.3% | +1.2% | −8% / +38% |
| TJGCTJGC Group Limited | 487.9 m | — | -130.2% | -81.8% | −6.5% | +969% / unavailable |
| VSMEVS MEDIA Holdings Ltd | 36.9 m | — | -317.9% | -114.5% | −8.8% | −95% / −99% |
| SWAGStran & Company, Inc. | 24.4 m | 396.0 | 0.2% | 0.0% | +40.6% | −35% / −2% |
| HAOHaoxi Health Technology Limited | — | — | -54.1% | -17.4% | +67.1% | −100% / unavailable |
| WPPWPP plc | — | — | -7.1% | -1.6% | −8.1% | +39% / −38% |
1- and 3-year price returns: for STGW from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 6.28 Total return -42% · Per year -42% | 11.12 Total return 3% · Per year 3% | 16.76 Total return 55% · Per year 55% |
| 3 years | 5.88 Total return -46% · Per year -18% | 11.72 Total return 8% · Per year 3% | 19.43 Total return 79% · Per year 22% |
| 5 years | 5.50 Total return -49% · Per year -13% | 12.36 Total return 14% · Per year 3% | 22.53 Total return 108% · Per year 16% |
- Exit P/E± 2.93
- Net margin± 2.05
- Annual revenue growth± 1.71
- Annual dilution± 0.17
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Stagwell Inc. is a global network of marketing and communications agencies that defines its activity through artificial intelligence and technology applied to advertising. The company is going through a period of accelerated organic growth in 2026, supported by the Digital Transformation segment and a record level of new business, while the political cycle boosts the communications segment. For 2026 management raised its Adjusted EPS outlook, a signal relevant to investors tracking the company's shift toward digital services and SaaS.
SWOT
Strengths
- The company holds a strong position in digital marketing and AI-based products, which sets it apart from many traditional holding groups.
- The decentralized structure, with brands kept individually, helps attract talent and supports collaboration on complex projects.
- Recent quarterly results show a record volume of new contracts and accelerating organic growth in the digital segment.
Weaknesses
- Revenue depends on a relatively small number of large clients, which amplifies the impact of losing an important contract.
- The company is smaller than many global competitors, which may limit its ability to serve clients with extensive international reach.
- Net income attributable to shareholders remains negative in the early months of the year, even though adjusted indicators are positive.
Opportunities
- Expanding AI platforms and SaaS products could generate recurring revenue and reduce dependence on consulting services.
- Selective acquisitions in technology and consulting could strengthen capabilities in fast-growing areas.
- Growth in retail media networks and influencer marketing opens new revenue sources for the media segment.
Threats
- Cuts to marketing budgets during periods of economic uncertainty can quickly affect agency revenue.
- Competition from technology companies and consulting firms may pressure margins and pricing.
- Regulation of artificial intelligence and data protection may increase compliance costs and limit some products.
Risks
- Client concentrationhigh
A few large clients generate a significant part of revenue, and losing them could materially affect results.
- Economically sensitive demandhigh
Marketing budgets are among the first to be cut in recessions or inflationary periods, which can weaken demand.
- Investment in new productsmedium
Developing AI platforms and SaaS products requires heavy spending, and client adoption may be slower than expected.
- International operating risksmedium
Activity in many countries involves differences in regulation, currency and commercial practices, which add complexity.
- Electoral cyclicalitylow
Advocacy revenue depends on the electoral cycle, making results harder to predict from one year to the next.
Investment thesis
What would need to be true (bull case)
- If organic growth in the digital segment holds, the company could justify a higher valuation based on adjusted profitability.
- The record volume of new contracts and the share repurchase program could support per-share metrics in the coming period.
- Positioning in artificial intelligence and SaaS products could shift the revenue model toward more recurring components.
What would break the thesis
- Net income attributable to shareholders remains negative, and adjusted profitability may not fully reflect the real costs.
- Dependence on a few clients and on discretionary budgets makes revenue vulnerable to sudden changes in client spending.
- Competition from large holding groups and technology companies could limit the capacity to expand margins.
What to watch
- Development of organic net revenue growth, especially in the Digital Transformation segmentQ3 2026
- Delivery against 2026 guidance for Adjusted EBITDA and Adjusted EPS2026
- Volume of net new business and win rate on large contractsQ3 2026
- Effect of recent and announced acquisitions on revenue and marginsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 31 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
Stagwell describes its model as a challenger network of agencies called Brands, grouped around a common corporate structure. The company offers marketing services, digital transformation, media and commerce, communications and advocacy, as well as SaaS and DaaS solutions grouped under The Marketing Cloud. According to the annual report for 2025, its clients are mostly large companies, and a relatively small number of clients generates a significant part of revenue, so losing one major client is a real risk.
The stated strategy is to build, grow and acquire leading marketing businesses, with emphasis on technology, data and artificial intelligence. Stagwell works with technology partners, including Palantir and Adobe, on AI marketing platforms, and products such as The Machine, described as an agentic operating system, are sold to clients and used internally. Recent acquisitions, such as Wavelength in January 2026, show selective expansion into areas adjacent to digital communications.
The operating structure relies on collaboration between agencies, supported by financial incentives and a network of global affiliates. The company keeps individual brand identities to attract talent but coordinates them through multi-region teams. Seasonality affects results: the fourth quarter is usually the strongest, and the communications segment peaks in election years.
Segments
Marketing Services
The segment provides creative, research, experiential and social media services, including agencies such as 72 and Sunny, NRG and TEAM. These services increasingly use AI in creative production and data analysis.
Digital Transformation
This was the most dynamic segment in the second half of 2026, with strong organic net revenue growth in the second quarter. Activity includes digital strategy, platform development, MarTech integration and managed services for clients modernizing their infrastructure.
Media & Commerce
The segment covers media buying, owned media platforms, commerce and CRM, with agencies such as Assembly Global and Gale. It is a component that links advertising campaigns to clients' direct sales.
Market context
The marketing industry is moving quickly toward digital channels, and according to the annual report digital advertising accounted in 2025 for more than half of global spending. Competitive pressure is intense and fragmented, and technology companies and consulting firms are increasingly entering this market.
Client demand is sensitive to macroeconomic conditions, inflation and trade policies, because marketing budgets can be reduced quickly. The electoral cycle also influences revenue in the communications segment, which makes performance less uniform from one year to the next.
Trends
- Artificial intelligence in marketingmixed
AI is transforming creative production, data analysis and marketing platforms, creating both new product opportunities and risks related to accuracy and regulation. If adoption stays rapid, Stagwell could benefit from its portfolio of AI products.
- Shift from traditional advertising to digitaltailwind
Digital advertising and platform commerce are moving budgets toward channels where the company already has strong capabilities. This trend supports the digital transformation segment.
- Electoral cyclemixed
Election years bring additional revenue to the communications and advocacy segment, but client concentration also rises, along with dependence on a few contracts.
- Macroeconomic pressureheadwind
Inflation, trade uncertainty and high interest rates may lead clients to cut discretionary budgets, which would directly affect agency revenue.
Competitive position
Stagwell competes with global holding groups such as Omnicom, WPP, Publicis, Dentsu and Havas, as well as independent agencies, consulting firms and technology platforms. The company sees itself as smaller than many rivals but more agile, and low barriers to entry allow small players to win contracts too.
In SaaS and DaaS products, competition also comes from IT service providers such as Infosys, Wipro and Cognizant, as well as large technology companies offering direct marketing tools.
- Omnicom GroupOMC
Global advertising holding group, named in the annual report as a direct rival of Stagwell agencies.
- WPP
British advertising and communications group, named as a main competitor in global agency networks.
- Publicis Groupe
French marketing holding company that competes with Stagwell for both large clients and talent.
- AccentureACN
Consulting firm that has entered the digital and technology marketing services market.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Is Stagwell’s (STGW) AI Bet Enough To Change The Story?Yahoo Finance — News · 23 Sept 2026 · EN
The latest news item in our archive is from 23 Sept 2026; the newest SEC filing is from 30 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report (amendment)30 Oct 2026Departure or appointment of officers
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report05 Oct 2026Departure or appointment of officers
- Current report04 Aug 2026Departure or appointment of officers
- Current report03 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report30 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report12 Jun 2026Shareholder vote
- Quarterly report01 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Stagwell Inc. · 13 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Stagwell Inc. · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Stagwell Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.