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olivLaw · US equity research

Stagwell Inc. STGW

Services-Advertising Agencies · SIC 7311 · Vertical: Services-Advertising Agencies (SIC 7311)

10.83USD−1.55% · 1 dayClose 05 Nov 2026

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The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).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.

Market cap
2.7 bn USD
shares as of 23 Oct 2026
P/E (TTM)
277.1
Diluted EPS TTM -3.39 · TTM to 31 Dec 2020
E/P (TTM)
-31.30%
TTM to 31 Dec 2020
Dividend yield
unavailable
Beta (2y)
1.08
Volatility (1y) 55%
52-week range
4.4011.00

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

CompanyS&P 500vs S&P 500Vertical 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—
Max drawdown (1y)
−36.8%
22 Jan 2026 → 23 Feb 2026
Max drawdown (5y)
−60.5%
09 Nov 2021 → 13 Oct 2023
Compound annual growth (5y)
+0.4%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
816.0 m USD
+9.8% YoY
Net income
18.1 m USD
−26.4% YoY
Diluted EPS
unavailable
unavailable YoY
net / operating
2.2% / 5.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue788.7 m651.7 m706.8 m743.0 m807.4 m704.1 m786.3 m816.0 m
Cost of revenue502.5 m412.1 m459.2 m470.9 m503.7 m459.5 m517.1 m511.7 m
Operating income43.5 m18.3 m23.2 m60.9 m56.6 m9.6 m11.5 m48.1 m
Depreciation & amortisation38.8 m42.0 m41.4 m44.3 m43.6 m44.3 m44.0 m48.3 m
Interest expense24.0 m23.4 m23.5 m25.2 m24.4 m23.3 m22.3 m24.0 m
Pre-tax income19.6 m-3.6 m-2.0 m33.3 m41.1 m-16.7 m-9.2 m28.8 m
Income tax3.7 m1.7 m2.7 m9.6 m24.3 m-2.9 m-348.0 k10.9 m
Net income3.2 m-2.9 m-5.3 m24.6 m12.7 m-13.0 m-8.1 m18.1 m
Operating cash flow212.1 m-60.0 m114.8 m ≈-24.0 m ≈260.3 m-26.5 m90.2 m ≈88.6 m ≈
Capex2.2 m5.8 m12.3 m ≈8.3 m ≈17.4 m10.7 m11.0 m ≈5.8 m ≈
Share repurchases7.0 m11.1 m56.4 m ≈37.7 m ≈29.1 m40.7 m47.2 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 year20182019⚠ 202020212022202320242025
Revenue1.5 bn1.4 bn888.0 m1.5 bn2.7 bn2.5 bn2.8 bn2.9 bn
Revenue YoY−2.6%−4.0%—+65.5%+82.9%−6.0%+12.4%+2.4%
Net income-130.0 m-5.3 m56.4 m21.0 m19.9 m134.0 k2.3 m29.1 m
Net income YoY−153.8%unavailable—−62.7%−5.3%−99.3%+1,585.8%+1,188.2%
Diluted EPS-2.31unavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS YoY−162.3%unavailable—unavailableunavailableunavailableunavailableunavailable
net %-8.8%-0.4%6.3%1.4%0.7%0.0%0.1%1.0%
Free cash flow-3.0 m67.9 m133.4 m192.1 m324.9 m66.8 m123.9 m247.3 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

Revenue
2023
2.5 bn
2024
2.8 bn
2025
2.9 bn

SEC (XBRL)· 13 Mar 2026verified

Cost of revenue
2023
1.6 bn
2024
1.8 bn
2025
1.8 bn

SEC (XBRL)· 13 Mar 2026verified

Gross profit
2023
906.0 m ≈
2024
998.2 m ≈
2025
1.1 bn ≈

SEC (XBRL)· 13 Mar 2026derived

Operating income
2023
90.5 m
2024
133.1 m
2025
159.0 m

SEC (XBRL)· 13 Mar 2026verified

Depreciation & amortisation
2023
142.8 m
2024
151.7 m
2025
171.2 m

SEC (XBRL)· 13 Mar 2026verified

EBITDA
2023
233.4 m ≈
2024
284.7 m ≈
2025
330.3 m ≈

SEC (XBRL)· 13 Mar 2026derived

Interest expense
2023
90.6 m
2024
92.3 m
2025
96.4 m

SEC (XBRL)· 13 Mar 2026verified

Pre-tax income
2023
91.1 m
2024
37.7 m
2025
68.8 m

SEC (XBRL)· 13 Mar 2026verified

Income tax
2023
40.6 m
2024
13.2 m
2025
38.3 m

SEC (XBRL)· 13 Mar 2026verified

Net income
2023
134.0 k
2024
2.3 m
2025
29.1 m

SEC (XBRL)· 13 Mar 2026verified

Weighted average diluted shares
2023
122.2 m
2024
115.8 m
2025
264.5 m

SEC (XBRL)· 13 Mar 2026verified

Balance sheet · USD

Cash
2023
119.7 m
2024
131.3 m
2025
104.5 m

SEC (XBRL)· 13 Mar 2026verified

Receivables
2023
697.2 m
2024
716.4 m
2025
735.8 m

SEC (XBRL)· 13 Mar 2026verified

Current assets
2023
1.0 bn
2024
1.1 bn
2025
1.2 bn

SEC (XBRL)· 13 Mar 2026verified

Property, plant & equipment, net
2023
77.8 m
2024
72.7 m
2025
73.1 m

SEC (XBRL)· 13 Mar 2026verified

Goodwill
2023
1.5 bn
2024
1.6 bn
2025
1.6 bn

SEC (XBRL)· 13 Mar 2026verified

Intangibles (excl. goodwill)
2023
818.2 m
2024
836.8 m
2025
834.2 m

SEC (XBRL)· 13 Mar 2026verified

Total assets
2023
3.8 bn
2024
3.9 bn
2025
4.2 bn

SEC (XBRL)· 13 Mar 2026verified

Accounts payable
2023
415.0 m
2024
449.3 m
2025
548.3 m

SEC (XBRL)· 13 Mar 2026verified

Short-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 17 Mar 2022verified

Long-term debt
2023
1.1 bn
2024
1.4 bn
2025
1.3 bn

SEC (XBRL)· 13 Mar 2026verified

Current liabilities
2023
1.4 bn
2024
1.4 bn
2025
1.5 bn

SEC (XBRL)· 13 Mar 2026verified

Total liabilities
2023
2.9 bn
2024
3.1 bn
2025
3.4 bn

SEC (XBRL)· 13 Mar 2026verified

Equity
2023
825.3 m
2024
776.9 m
2025
776.4 m

SEC (XBRL)· 13 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
81.0 m
2024
142.9 m
2025
291.0 m

SEC (XBRL)· 13 Mar 2026verified

Capex
2023
14.2 m
2024
18.9 m
2025
43.7 m

SEC (XBRL)· 13 Mar 2026verified

Free cash flow
2023
66.8 m ≈
2024
123.9 m ≈
2025
247.3 m ≈

SEC (XBRL)· 13 Mar 2026derived

Investing cash flow
2023
156.0 m
2024
-162.5 m
2025
-113.7 m

SEC (XBRL)· 13 Mar 2026verified

Financing cash flow
2023
-339.9 m
2024
36.9 m
2025
-210.0 m

SEC (XBRL)· 13 Mar 2026verified

Share repurchases
2023
223.8 m
2024
108.2 m
2025
134.3 m

SEC (XBRL)· 13 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
2.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
2.7%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
26.8%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
19.5%
computed by olivLawFY 2025
Net income growth (YoY)
1,188.2%
computed by olivLawFY 2025
Net income CAGR 3Y
13.5%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
-12.4%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
unavailable
input data missing
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
99.5%
computed by olivLawFY 2025

Profitability

Gross margin
36.0%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
9.8%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
4.0%
computed by olivLawTTM to 30 Sept 2026
Net margin
0.3%
computed by olivLawTTM to 30 Sept 2026
FCF margin
11.8%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
1.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
0.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
5.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
4.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
1.3 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
4.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Debt / equity
2.0x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
1.3x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
0.8x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
unavailable
input data missing
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
412.6 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
44.8 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
367.8 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
3,795.5%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
134.8%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
91 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
82 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
2.7 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
4.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
277.1x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
277.1x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
0.4%
computed by olivLawTTM to 30 Sept 2026
P/B
3.9x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
0.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
13.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBIT
31.5x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
1.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
7.3x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
13.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
4.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 34 / 100

A scoring methodology on indicators and valuation, not investment advice.

score < 40

Closing price

10.83 USD

05 Nov 2026Source: olivLaw, closing series

Market cap: 2.7 bn USD

Key indicators

Market capitalisation
2.7 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
277.1x
computed by olivLawTTM to 30 Sept 2026
P/B
3.9x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
13.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROE
1.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
0.3%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
2.4%
computed by olivLawFY 2025
Dividend yield
unavailable
input data missing

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 23 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 2283derived 181

Score by group

  • Valuation35
  • Balance sheet0
  • Quality59
  • Growth22
  • Returns64

Estimated value range

Low
22.43
USD per share
Mid
29.61
USD per share
High
42.38
USD per share
Price: 10.83 USD
The price is below the range
Potential to the central value: 173.4% (value / price − 1)
Margin of safety: 63.4% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

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
Multiple comparisons use the SIC vertical: Services-Advertising Agencies (SIC 7311)

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

FactorValueScoreWeight used
ROIC · Quality5.1%24 (on a fixed band)12%
Net margin · Quality0.3%75 (vs peers)7%
FCF conversion · Quality3,795.5%100 (on a fixed band)7%
Revenue CAGR 3Y · Growth2.7%22 (on a fixed band)10%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet4.2x0 (on a fixed band)12%
Interest coverage · Balance sheet1.3x0 (on a fixed band)7%
Current ratio · Balance sheet0.8x1 (on a fixed band)5%
P/E (TTM) · Valuation277.1x0 (on a fixed band)12%
EV/EBITDA · Valuation13.0x19 (on a fixed band)12%
FCF yield · Valuation13.7%100 (on a fixed band)10%
Shareholder yield (distributions) · Returns4.5%64 (on a fixed band)7%
Payout ratio (FCF) · Returnsunavailableunavailable—

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

P/E
277.1x
vertical median 50.9x
above median (+444.9%)
EV/EBITDA
13.0x
vertical median —
P/S
0.9x
vertical median 1.1x
below median (−22.9%)
P/B
3.9x
vertical median 2.4x
above median (+61.3%)
ROE
1.3%
vertical median -7.1%
above median
Net margin
0.3%
vertical median -9.5%
above median
EBIT margin
4.0%
vertical median 0.0%
above median (+27,323.4%)
Revenue YoY
2.4%
vertical median 0.9%
above median (+166.4%)
Net debt/EBITDA
4.2x
vertical median —
Dividend yield
—
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
OMCOmnicom Group Inc.23.9 bn50.99.7%2.8%+10.1%+22% / +9%
STGWStagwell Inc2.7 bn277.11.3%0.3%+2.4%+125% / +132%
CRTOCriteo S.A.756.9 m11.26.3%4.0%+0.6%−23% / −38%
GRPNGroupon, Inc.633.6 m——-25.3%+1.2%−8% / +38%
TJGCTJGC Group Limited487.9 m—-130.2%-81.8%−6.5%+969% / unavailable
VSMEVS MEDIA Holdings Ltd36.9 m—-317.9%-114.5%−8.8%−95% / −99%
SWAGStran & Company, Inc.24.4 m396.00.2%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.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
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%
What moves the 3-year price the most
  • 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.

News & filings

In the press

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

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Stagwell Inc. · 13 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Stagwell Inc. · 31 Jul 2026
  3. [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.