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0000876883false00008768832026-04-302026-04-30

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported) — April 30, 2026
 
Stagwell Inc.  
(Exact Name of Registrant as Specified in its Charter)
 
Delaware 001-13718 86-1390679
(Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)
 
One World Trade Center, Floor 65, New York, NY 10007
(Address of principal executive offices and zip code)
 
(646) 429-1800
(Registrant’s Telephone Number)
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Class A Common Stock, $0.001 par value
STGW NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company     ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                              ☐

 
 



   
Item 2.02 Results of Operations and Financial Condition.

On April 30, 2026, Stagwell Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2026. A copy of this earnings release is attached as Exhibit 99.1 hereto.
         
The foregoing information (including Exhibit 99.1) is being furnished under “Item 2.02 – Results of Operations and Financial Condition.” Such information (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

On April 30, 2026, the Company will host a conference call in which its financial results for the three months ended March 31, 2026 will be discussed. The presentation to be used in connection with the call is attached as Exhibit 99.2 hereto.

The foregoing information (including Exhibit 99.2) is being furnished under “Item 7.01 – Regulation FD Disclosure.” Such information (including Exhibit 99.2) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.












































Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
99.1 Press release dated April 30, 2026, relating to the Company’s results for the three months ended March 31, 2026.

99.2 Investor presentation dated April 30, 2026.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)





Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed by the undersigned hereunto duly authorized.
 
Date: April 30, 2026 Stagwell Inc.
By: /s/ Ryan J. Greene
Ryan J. Greene
Chief Financial Officer
 


        
EX-99.1 2 stgw2026331pr.htm EX-99.1 Document
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FOR IMMEDIATE ISSUE


STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2026

Q1 YoY Revenue Growth of 8%; Q1 YoY Net Revenue Growth of 4%
Q1 YoY Digital Transformation Net Revenue Growth of 9%; Two-Year Digital Transformation Net Revenue Growth Stack of 26%
Q1 EPS of $(0.05); Q1 Adjusted EPS Growth YoY of 31% to $0.17
Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $13 million; Q1 Adjusted EBITDA Growth YoY of 9% to $90 million
YoY Increase in Cash Flow from Operations of $34 million
Record Net New Business of $141 million in Q1; LTM Net New Business of $486 million
Reiterate Guidance for 2026 of Total Net Revenue Growth of 8% to 12%; Adjusted EBITDA of $475 million to $525 million; Free Cash Flow Conversion of 50% to 60%


New York, NY, April 30, 2026 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three months ended March 31, 2026.

FIRST QUARTER RESULTS:

•Q1 Revenue of $704 million, an increase of 8% versus the prior year period;
•Q1 Net Revenue of $585 million, an increase of 4% versus the prior year period, in-line with budget;
•Q1 Digital Transformation Net Revenue of $97 million, an increase of 9% versus the prior year period;
•Two-Year Net Revenue Growth Stack for Digital Transformation of 26%, Two-Year Organic Net Revenue Growth Stack for Digital Transformation of 22%;
•Q1 Net Loss attributable to Stagwell Inc. Common Shareholders of $13 million versus $3 million in the prior year period;
•Q1 Adjusted EBITDA of $90 million, an increase of 9% versus the prior year period;
•Q1 Adjusted EBITDA Margin of 15% on net revenue;
•Q1 Loss Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.05) versus $(0.04) in the prior year period;
•Q1 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.17 versus $0.13 in the prior year period;
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•YTD Net Cash used in Operating Activities of $26 million versus $60 million in the prior year period;
•Net new business of $141 million in the first quarter, last twelve-month net new business of $486 million
See “Non-GAAP Financial Measures” below for explanations and reconciliations of the Company’s non-GAAP financial measures.


“Stagwell continues to be on a path for a great 2026, bolstered by record new wins, its first government contracts, and its pivot to delivering agentic applications for the marketing industry,” said Mark Penn, Chairman and CEO of Stagwell. “On a two-year stack, our Digital Transformation segment is accelerating to 22% organic net revenue growth as we apply AI to drive industry-leading results for our clients.”

Ryan Greene, Chief Financial Officer, commented: “At the same time as we expanded our top and bottom lines, we controlled costs to grow adjusted EBITDA 9% year-over-year to $90 million, landed a positive outlook from a ratings agency, and shrunk our share count to under 250 million as we grew our adjusted EPS by 31% to $0.17. We remain firmly on course to deliver our full-year and free cash flow conversion guidance.”


Financial Outlook
2026 financial guidance is reiterated as follows:
•Total Net Revenue growth of 8% to 12%
•Adjusted EBITDA of $475 million to $525 million
•Free Cash Flow Conversion of 50% to 60%
•Adjusted EPS of $0.98 - $1.12
•Guidance includes anticipated impact from acquisitions or dispositions.
* 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" below for additional information.

Video Webcast
Management will host a video webcast on Thursday, April 30, 2026, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three months ended March 31, 2026. The video webcast will be accessible at https://edge.media-server.com/mmc/p/rb7nnuq2/. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.

A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.

Stagwell Inc.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 45+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

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Contacts
For Investors:
Ben Allanson
IR@stagwellglobal.com

For Press:
Lena Petersen
PR@stagwellglobal.com


Non-GAAP Financial Measures
In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following:
(1) Organic Net Revenue: “Organic net revenue growth” and “Organic net revenue decline” reflects the year-over-year change in the Company's reported net revenue attributable to the Company's management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company's reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s current period reported revenue as the impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present an amount equal to the entity’s current year net revenue for the same period during which we didn’t own the entity in the prior year as the impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.
(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.
(3) Adjusted EBITDA: defined as Net income (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense to achieve operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, impairment and other losses, and other items. Other items primarily includes restructuring, certain system implementation, working capital administrative fees and acquisition-related expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating Income (Loss), as Net Income (Loss) is not a relevant reportable segment financial metric.
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(4) Adjusted Diluted EPS: is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income (loss) attributable to Class C shareholders, excluding the impact of amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), based on total consolidated amounts, then allocated to Stagwell Inc. common shareholders and Class C shareholders, based on their respective income allocation percentage using a normalized effective income tax rate divided by (ii) the diluted weighted average shares outstanding. The diluted weighted average shares outstanding is calculated as (a) the diluted weighted average number of common shares outstanding plus (b) the shares of Class C Common Stock as if converted to shares of Class A Common Stock if not included because they were anti-dilutive.
(5) Free Cash Flow: defined as consolidated net cash flow from operations less cash outflow from capital expenditures and capitalized software, excluding material nonrecurring capital purchases. Free Cash Flow Conversion is the percentage of adjusted EBITDA.
Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.
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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 statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “ability,” “aim,” “anticipate,” “assume,” “believe,” “better,” “build,” “consider,” “continue,” “could,” “develop,” “drive,” “enhance,” “estimate,” “expect,” “focus,” “forecast,” “future,” “grow,” “guidance,” “improve,” “intend,” “likely,” “maintain,” “may,” “ongoing,” “outlook,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “seek,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.

Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:

•risks associated with international, national and regional unfavorable economic conditions, including the effect of changing tariffs and other trade policies, inflation and other macroeconomic factors that could affect the Company or its clients;
•demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
•inflation and actions taken by central banks to counter inflation;
•the Company’s ability to attract new clients and retain existing clients;
•the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
•financial failure of the Company’s clients;
•the Company’s ability to retain and attract key employees;
•the Company’s ability to compete in the markets in which it operates;
•the Company’s ability to achieve its cost saving initiatives;
•the Company’s implementation of strategic initiatives;
•the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests, deferred acquisition consideration and profit interests;
•the Company’s ability to manage its growth effectively;
•the Company’s ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company’s business capabilities and successfully integrate newly acquired businesses into the Company’s operations, retain key employees, and realize cost savings, synergies and other related anticipated benefits within the expected time period;
•the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;
•the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
•the Company’s use of artificial intelligence, including generative artificial intelligence;
•adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that recent or future changes in tax laws, potential changes to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs;
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•adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
•the Company’s ability to maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements;
•the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;
•the Company’s ability to protect client data from security incidents or cyberattacks;
•economic disruptions resulting from war and other economic and geopolitical tensions (such as the ongoing military conflicts in Iran and the Middle East, and between Russia and Ukraine), terrorist activities, natural disasters, public health events, and tariff and trade policies;
•stock price volatility; and
•foreign currency fluctuations.
Investors should carefully consider these risks factors, the additional risk factors outlined under the caption “Risk Factors” in this Form 10-K, and in the Company’s other filings with the Securities and Exchange Commission (the“SEC”) which are accessible on the SEC’s website at www.sec.gov.
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SCHEDULE 1
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
Three Months Ended March 31,
2026 2025
Revenue $ 704,143  $ 651,740 
Operating expenses
Cost of services 459,531  412,087 
Office and general expenses 190,639  179,362 
Depreciation and amortization 44,331  42,006 
694,501  633,455 
Operating Income 9,642  18,285 
Other income (expenses):
Interest expense, net (23,266) (23,356)
Foreign exchange, net (3,021) 1,220 
Other, net
(69) 249 
(26,356) (21,887)
Loss before income taxes and equity in earnings of non-consolidated affiliates
(16,714) (3,602)
Income tax (benefit) expense
(2,888) 1,722 
Loss before equity in earnings of non-consolidated affiliates (13,826) (5,324)
Equity in loss of non-consolidated affiliates (121) (1)
Net loss (13,947) (5,325)
Net loss attributable to noncontrolling and redeemable noncontrolling interests 974  2,408 
Net loss attributable to Stagwell Inc. common shareholders $ (12,973) $ (2,917)
Loss per common share:
   Basic $ (0.05) $ (0.03)
   Diluted $ (0.05) $ (0.04)
Weighted average number of common shares outstanding:
   Basic 250,766  112,088 
   Diluted 250,766  263,737 








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SCHEDULE 2
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED COMPONENTS OF NET REVENUE CHANGE
(amounts in thousands)


Net Revenue - Components of Change Change
Three Months Ended March 31, 2025 Foreign Currency Net Acquisitions (Divestitures)
Organic (1)
Total Change Three Months Ended March 31, 2026 Organic Total
Marketing Services $ 215,174  $ 2,637  $ (876) $ 641  $ 2,402  $ 217,576  0.3  % 1.1  %
Digital Transformation 88,504  (134) 3,227  4,912  8,005  96,509  5.6  % 9.0  %
Media & Commerce 146,188  2,358 1,965  (1,016) 3,307  149,495  (0.7) % 2.3  %
Communications 90,981  739  240  4,814  5,793  96,774  5.3  % 6.4  %
The Marketing Cloud 25,155  1,468  —  (124) 1,344  26,499  (0.5) % 5.3  %
Corporate, eliminations and other (1,815) —  —  (414) (414) (2,229) 22.8  % NM
$ 564,187  $ 7,068  $ 4,556  $ 8,813  $ 20,437  $ 584,624  1.6  % 3.6  %


(1) See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue.






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SCHEDULE 3
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)

For the Three Months Ended March 31, 2026
Marketing Services Digital Transformation Media & Commerce Communications The Marketing Cloud Corporate, eliminations and other Total
Revenue $ 250,778  $ 101,466  $ 174,511  $ 153,102  $ 26,515  $ (2,229) $ 704,143 
Billable costs 33,202  4,957  25,016  56,328  16  —  119,519 
Net revenue
217,576  96,509  149,495  96,774  26,499  (2,229) 584,624 
Staff costs 132,189  64,567  97,225  56,950  16,803  12,452  380,186 
Administrative costs 22,732  6,388  23,173  12,747  5,190  4,132  74,362 
Unbillable and other costs, net 17,680  123  13,682  2,024  6,882  —  40,391 
Adjusted EBITDA (1)
44,975  25,431  15,415  25,053  (2,376) (18,813) 89,685 
Stock-based compensation 5,003  1,037  1,144  2,397  115  4,552  14,248 
Depreciation and amortization 12,482  5,848  7,915  6,858  6,728  4,500  44,331 
Deferred acquisition consideration —  3,153  7,101  —  —  —  10,254 
Other items, net (1)
2,823  1,343  3,159  1,413  656  1,816  11,210 
Operating income (loss) $ 24,667  $ 14,050  $ (3,904) $ 14,385  $ (9,875) $ (29,681) $ 9,642 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.






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SCHEDULE 4
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)

For the Three Months Ended March 31, 2025
Marketing Services Digital Transformation Media & Commerce Communications The Marketing Cloud Corporate, eliminations and other Total
Revenue $ 247,996  $ 90,887  $ 160,422  $ 129,088  $ 25,162  $ (1,815) $ 651,740 
Billable costs 32,822  2,383  14,234  38,107  —  87,553 
Net revenue
215,174  88,504  146,188  90,981  25,155  (1,815) 564,187 
Staff costs 127,889  59,227  94,948  58,312  17,337  10,549  368,262 
Administrative costs 26,654  5,441  22,413  12,996  5,657  237  73,398 
Unbillable and other costs, net 16,404  762  15,495  2,081  5,492  —  40,234 
Adjusted EBITDA (1)
44,227  23,074  13,332  17,592  (3,331) (12,601) 82,293 
Stock-based compensation 2,481  1,387  1,323  1,033  211  5,108  11,543 
Depreciation and amortization 14,314  5,445  7,148  6,596  5,058  3,445  42,006 
Deferred acquisition consideration 2,583  3,280  (1,282) 1,213  863  —  6,657 
Other items, net (1)
(2,543) 226  3,931  409  114  1,665  3,802 
Operating income (loss) $ 27,392  $ 12,736  $ 2,212  $ 8,341  $ (9,577) $ (22,819) $ 18,285 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items.






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SCHEDULE 5
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)

For the Three Months Ended March 31, 2026
GAAP Adjustments Non-GAAP
Net income (loss) attributable to Stagwell Inc. common shareholders
$ (12,973) $ 56,168  $ 43,195 
Diluted - Weighted average number of common shares outstanding
250,766  —  250,766 
Diluted EPS and Adjusted Diluted EPS (1)
$ (0.05) $ 0.17 
Adjustments to Net income (loss)
Amortization $ 38,918 
Stock-based compensation 14,248 
Deferred acquisition consideration 10,254 
Other items, net 11,210 
74,630 
Adjustment to GAAP income tax expense(2)
(18,462)
$ 56,168 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
(2) Represents the difference between the income tax benefit of $2.9 million at an effective tax rate of 17.3% on a GAAP basis and the income tax expense of $15.6 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.




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SCHEDULE 6
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)

For the Three Months Ended March 31, 2025
GAAP Adjustments Non-GAAP
Net income (loss) attributable to Stagwell Inc. common shareholders
$ (2,917) $ 18,988  $ 16,071 
Net income (loss) attributable to Class C shareholders
(6,637) 25,222  18,585 
Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income
$ (9,554) $ 44,210  $ 34,656 
Diluted - Weighted average number of common shares outstanding
112,088  —  112,088 
Weighted average number of shares of Class C Common Stock outstanding 151,649  —  151,649 
Diluted - Weighted average number of shares outstanding
263,737  —  263,737 
Diluted EPS and Adjusted Diluted EPS (1)
$ (0.04) $ 0.13 
Adjustments to Net income (loss)
Amortization
$ 32,981 
Stock-based compensation 11,543 
Deferred acquisition consideration 6,657 
Other items, net 3,802 
54,983 
Adjustment to GAAP income tax expense(2)
(10,773)
$ 44,210 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.
(2) Represents the difference between the income tax expense of $1.7 million at an effective tax rate of (47.8)% on a GAAP basis and the income tax expense of $12.5 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.
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SCHEDULE 7
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
  March 31, 2026 December 31, 2025
 
ASSETS    
Current assets    
Cash and cash equivalents $ 114,935  $ 104,537 
Accounts receivable, net 727,583  735,752 
Expenditures billable to clients 170,293  164,694 
Other current assets 202,210  157,309 
Total current assets 1,215,021  1,162,292 
Fixed assets, net 71,069  73,081 
Right-of-use assets - operating leases 202,796  213,576 
Goodwill 1,596,242  1,595,238 
Other intangible assets, net 822,840  834,248 
Deferred tax assets 280,064  281,057 
Other assets 55,005  55,055 
Total assets $ 4,243,037  $ 4,214,547 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS ("RNCI"), AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 526,097  $ 548,320 
Accrued media 207,082  239,490 
Accruals and other liabilities 266,081  291,554 
Advance billings 392,959  329,815 
Current portion of lease liabilities - operating leases 54,331  55,386 
Current portion of deferred acquisition consideration 22,303  15,446 
Total current liabilities 1,468,853  1,480,011 
Long-term debt 1,439,736  1,326,013 
Long-term portion of deferred acquisition consideration 27,755  24,598 
Long-term lease liabilities - operating leases 213,807  224,397 
Deferred tax liabilities 52,813  54,726 
Long-term tax receivable agreement liability 252,390  252,390 
Other liabilities 40,858  51,077 
Total liabilities 3,496,212  3,413,212 
Redeemable noncontrolling interests 24,317  24,968 
Commitments, contingencies and guarantees
Shareholders' equity
Common shares - Class A 246  252 
Paid-in capital 711,490  744,463 
Retained earnings 20,082  32,930 
Accumulated other comprehensive loss (26,910) (19,252)
Stagwell Inc. shareholders' equity 704,908  758,393 
Noncontrolling interests 17,600  17,974 
Total shareholders' equity 722,508  776,367 
Total liabilities, RNCI, and shareholders’ equity
$ 4,243,037  $ 4,214,547 
Page 13


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SCHEDULE 8
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED SUMMARY CASH FLOW DATA
(amounts in thousands)
  Three Months Ended March 31,
2026 2025
Cash flows from operating activities:
Net loss $ (13,947) $ (5,325)
Adjustments to reconcile net loss to cash used in operating activities:
Stock-based compensation 14,248  11,543 
Depreciation and amortization 44,331  42,006 
Amortization of right-of-use lease assets and lease liability interest
16,102  17,118 
Lease termination gain —  (3,529)
Deferred income taxes (635) (747)
Adjustment to deferred acquisition consideration 10,254  6,657 
Other, net 1,308  (2,060)
Changes in working capital:
Accounts receivable (1,993) (44,701)
Expenditures billable to clients (5,925) 11,095 
Other current assets (62,850) (32,778)
Accounts payable (18,006) (35,287)
Accrued expenses and other liabilities (55,613) (19,075)
Advance billings 63,071  15,628 
Current portion of lease liabilities - operating leases (16,831) (20,558)
Net cash used in operating activities
(26,486) (60,013)
Cash flows from investing activities:
Capitalized software (22,402) (11,966)
Capital expenditures (10,665) (5,774)
Acquisitions, net of cash acquired 355  (1,090)
Other (325) (1,529)
Net cash used in investing activities
(33,037) (20,359)
Cash flows from financing activities:
Repayment of borrowings under revolving credit facility (469,000) (432,000)
Proceeds from borrowings under revolving credit facility 582,000  543,000 
Shares repurchased and cancelled (40,728) (11,068)
Distributions to noncontrolling interests (366) (581)
Payment of deferred consideration —  (16,103)
Tax Receivables Agreement payment (2,554) — 
Net cash provided by financing activities
69,352  83,248 
Effect of exchange rate changes on cash and cash equivalents 569  3,438 
Net increase in cash and cash equivalents 10,398  6,314 
Cash and cash equivalents at beginning of period 104,537  131,339 
Cash and cash equivalents at end of period $ 114,935  $ 137,653 
Page 14

EX-99.2 3 a1q26earningspresentatio.htm EX-99.2 a1q26earningspresentatio
First Quarter 2026 EARNINGS PRESENTATION APRIL 30 | 2026


 
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 statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “ability,” “aim,” “anticipate,” “assume,” “believe,” “better,” “build,” “consider,” “continue,” “could,” “develop,” “drive,” “enhance,” “estimate,” “expect,” “focus,” “forecast,” “future,” “grow,” “guidance,” “improve,” “intend,” “likely,” “maintain,” “may,” “ongoing,” “outlook,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “seek,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section. Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following: • risks associated with international, national and regional unfavorable economic conditions, including the effect of changing tariffs and other trade policies, inflation and other macroeconomic factors that could affect the Company or its clients; • demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties; • inflation and actions taken by central banks to counter inflation; • the Company’s ability to attract new clients and retain existing clients; • the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements; • financial failure of the Company’s clients; • the Company’s ability to retain and attract key employees; • the Company’s ability to compete in the markets in which it operates; • the Company’s ability to achieve its cost saving initiatives; • the Company’s implementation of strategic initiatives; • the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests, deferred acquisition consideration and profit interests; • the Company’s ability to manage its growth effectively; • the Company’s ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company’s business capabilities and successfully integrate newly acquired businesses into the Company’s operations, retain key employees, and realize cost savings, synergies and other related anticipated benefits within the expected time period; • the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom; • the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products; • the Company’s use of artificial intelligence, including generative artificial intelligence; • adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that recent or future changes in tax laws, potential changes to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs; • adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material “emigration tax”); • the Company’s ability to maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements; • the Company’s ability to accurately forecast its future financial performance and provide accurate guidance; • the Company’s ability to protect client data from security incidents or cyberattacks; • economic disruptions resulting from war and other economic and geopolitical tensions (such as the ongoing military conflicts in Iran and the Middle East, and between Russia and Ukraine), terrorist activities, natural disasters, public health events, and tariff and trade policies; • stock price volatility; and • foreign currency fluctuations. Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2025 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2026, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings. FORWARD LOOKING STATEMENTS & OTHER INFORMATION 2


 
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 financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following: Pro Forma Results: The Pro Forma amounts presented for each period were prepared by combining the historical standalone statements of operations for each of legacy MDC and SMG. The unaudited pro forma results are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or consolidated financial condition would have been had the combination actually occurred on the date indicated, nor do they purport to project the future consolidated results of operations or consolidated financial condition for any future period or as of any future date. The Company has excluded a quantitative reconciliation of Adjusted Pro Forma EBITDA to net income under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. 1. Organic Net Revenue: “Organic net revenue growth” and “Organic net revenue decline” reflects the year-over-year change in the Company's reported net revenue attributable to the Company's management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over- year increase or decrease in the Company's reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s current period reported revenue as the impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present an amount equal to the entity’s current year net revenue for the same period during which we didn’t own the entity in the prior year as the impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates. 2. Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period. 3. Adjusted EBITDA: defined as Net income (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense to achieve operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, impairment and other losses, and other items. Other items primarily includes restructuring, certain system implementation, working capital administrative fees and acquisition-related expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating Income (Loss), as Net Income (Loss) is not a relevant reportable segment financial metric. 4. Adjusted Diluted EPS” is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income (loss) attributable to Class C shareholders, excluding the impact of amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), based on total consolidated amounts, then allocated to Stagwell Inc. common shareholders and Class C shareholders, based on their respective income allocation percentage using a normalized effective income tax rate divided by (ii) the diluted weighted average shares outstanding. The diluted weighted average shares outstanding is calculated as (a) the diluted weighted average number of common shares outstanding plus (b) the shares of Class C Common Stock as if converted to shares of Class A Common Stock if not included because they were anti-dilutive. 5. Free Cash Flow: defined as consolidated net cash flow from operations less cash outflow from capital expenditures and capitalized software, excluding material nonrecurring capital purchases. Free Cash Flow Conversion is the percentage of adjusted EBITDA. 6. Financial Guidance: The Company provides guidance on a non-GAAP basis as it cannot predict certain elements which are included in reported GAAP results. Included in this earnings presentation are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.


 
4 FINANCIAL Outlook Reiterate Full-Year 2026 Outlook Total Net Revenue Growth8% - 12% Adjusted EBITDA$475M - $525M EBITDA Conversion on Free Cash Flow50% - 60% In Adjusted Earnings Per Share$0.98 - $1.12 Note: Guidance as of 04/30/2026. 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 additional information on definitions for Total Net Revenue, Adjusted EBITDA, Adjusted Diluted Earnings Per Share, and Free Cash Flow. Please refer to our investor website at stagwellglobal.com/investors for information on Forward Looking Statements and risk factors outlined in our 2025 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 13 2026, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.


 
F I R S T Q U A R T E R H I G H L I G H T S NET REVENUE: $ 585M | NET LEVERAGE RATIO: 3.11x | ADJ. EBITDA: $90M Investing IN THE BUSINESS Accelerating MOMENTUM Improving CASH & COSTS Continuing NEW BUSINESS MOMENTUM Expanded relationship with The Trade Desk to adopt agentic Koa agents aiding in programmatic media buy Instituted client accountability program powered by AI, decreasing client churn across the business by more than 10% YoY Repurchased 7.3M shares in 1Q26 bringing share count down to 246M at quarter close, approximately 19M lower than in April 2025 Strengthened GTM team, appointing Michael Twedell as SVP, Enterprise AI Solutions and Nicole Souza as Chief Growth Officer for North America Record $141M of net new business, Bringing LTM NNB to $486M Secured multiple high profile new customer wins and expansions with leading companies including Adobe, Google, and Indeed Commitments from 3 customers for The Machine including with Con Edison, Microsoft and a global spirits brand Top 100 customers grew 15% YoY in 1Q26 Post 1Q close, won largest ever government mandate Revenue growth of 8% YoY to $704M, Net revenue growth of 4% YoY to $585M Performance driven by net revenue growth of 9% in Digital Transformation; Organic two- year stack of more than 22% continues improving trend and demonstrates accelerating momentum Communications returned to 6% growth in 1Q26 ahead of political super-cycle kicking off mid-year 1Q26 adjusted EPS grew 31% to $0.17 Adjusted EBITDA grew 9% to $90M, a 15% margin, 75bps higher than 1Q25 Cash Flow from Operations improved $34M YoY Labor Ratio in 1Q26 stands at 63.9%, an improvement of 110bps versus the prior year period Actioned $54 million to date of the $80-$100M of cost savings by YE26 announced in April 2025 Note: Net Leverage Ratio defined as Net Debt divided by LTM Adjusted EBITDA.


 
S U M M A R Y C O M B I N E D F I N A N C I A L S Note: Figures may not foot due to rounding. Three Months Ended March 31, 20252026 $651,740$704,143Revenue 87,553119,519Billable Costs $564,187$584,624Net Revenue 368,262380,186Staff costs 73,39874,362Administrative costs 40,23440,391Unbillable and other costs, net $82,293$89,685Adjusted EBITDA 11,54314,248Stock-based compensation 42,00644,331Depreciation and amortization 6,65710,254Deferred acquisition consideration 3,80211,210Other items, net $18,285$9,642Operating income 14.6%15.3%Adjusted EBITDA margin (on net revenue) 6 $ in Thousands


 
1 Q 2 6 N E T R E V E N U E Note: Figures may not foot due to rounding. Three Months Ended March 31, 2026 ChangeNet Revenue $564,187March 31, 2025 1.6%8,813Organic net revenue 0.8%4,556Acquisitions (divestitures), net 1.3%7,068Foreign currency 3.6%$20,437Total Change $584,624March 31, 2026 7 $ in Thousands


 
1 Q 2 6 N E T R E V E N U E B Y G E O G R A P H Y Note: Figures may not foot due to rounding. 1Q 8 1Q26 Net Revenue Growth Organic Net Revenue Growth 3.1%3.3%United States 7.0%(2.0)%EMEA 1.8%(10.0)%Rest of World 3.6%1.6%TOTAL 78% 7% 16% % OF NET REVENUE


 
G L O B A L N E T W O R K 9 North America Latin America Europe Asia Pacific • Australia • China • Hong Kong • India • Indonesia • Japan • Malaysia • Philippines • Taiwan • Thailand • Singapore • South Korea Middle East & Africa • Austria • Belgium • Bulgaria • Italy • Latvia • Romania • Slovak Republic • Slovenia • Switzerland • Turkey • Ukraine • France • Germany • Netherlands • Poland • Spain • Sweden • United Kingdom • Argentina • Aruba • Bolivia • Brazil • Curacao • Colombia • Costa Rica • Dominican • Ecuador • El Salvador • Guatemala • Honduras • Jamaica • Nicaragua • Panama • Peru • Republic • Uruguay • Venezuela • Algeria • Bahrain • Egypt • Jordan • Kuwait • Lebanon • Libya • Morocco • Nigeria • Oman • Saudi Arabia • South Africa • Tunisia • United Arab Emirates Stagwell’s Affiliate Network Significantly Expands Our Global Footprint • Canada • USA • Mexico Note: As of March 31, 2026. Countries listed represent a subset of locations.


 
O U R O P E R A T I N G S E G M E N T S 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 & Technology 2 3 4 5 10 The Marketing Cloud SaaS & DaaS Tools for the Modern Marketer 1 Notes: Figures may not foot due to rounding 4% 16% 26% 16% 38% % OF 1Q26 NET REVENUE BY SEGMENT


 
R E V E N U E G R O W T H B Y S E G M E N T 1Q26 Revenue Growth Organic Revenue Growth Operating Segment 5.6%(0.4)%The Marketing Cloud 11.7%6.3%Digital Transformation 8.8%(1.4)%Media & Commerce 18.4%17.6%Communications 1.1%2.7%Marketing Services 8.0%5.0%TOTAL % OF REVENUE 1Q 4% 14% 25% 20% 38%


 
N E T R E V E N U E G R O W T H B Y S E G M E N T 1Q26 Net Revenue Growth Organic Net Revenue Growth Operating Segment 5.3%(0.5)%The Marketing Cloud 9.0%5.6%Digital Transformation 2.3%(0.7)%Media & Commerce 6.4%5.3%Communications 1.1%0.3%Marketing Services 3.6%1.6%TOTAL % OF NET REVENUE 1Q 4% 16% 26% 16% 38%


 
A D J E B I T D A G R O W T H B Y S E G M E N T Note: Figures may not foot due to rounding. *Adjusted EBITDA percentages in pyramid does not adjust for corporate eliminations **The Marketing Cloud adjusted EBITDA in 1Q26 improved y/y to $(2.4)m from $(3.3)m; 1Q26Operating Segment NQThe Marketing Cloud** 10.2%Digital Transformation 15.6%Media & Commerce 42.4%Communications 1.7%Marketing Services 9.0%TOTAL % OF ADJ. EBITDA* 1Q Adj. EBITDA* Growth Y/Y (2)% 23% 14% 23% 41%


 
D I G I T A L T R A N S F O R M A T I O N G R O W T H -24.5% -26.3% -17.0% -3.5% -1.1% -0.7% 10.0% 13.2% 22.5% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Two-Year Organic Net Revenue Growth Stack 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 definition of “Organic Net Revenue”.


 
N E W B U S I N E S S U P D A T E 15 PER CLIENT AT TOP 25 Notable Business WINS & EXPANSIONS Net New Business $141M1Q26 $486MLTM Avg. Net Revenue $6.7M1Q26


 
G R O W T H D R I V E R S F O R 2 0 2 6 $54M $53M $66M $130M $141M 1Q22 1Q23 1Q24 1Q25 1Q26 1Q Net New Business Growth from Top 100 Customers (versus 1Q25) 15% Reduction in Client Churn (versus 1Q25) 10%+ Increase in Net New Business (versus 1Q25) $11M Note: Net New Business defined as estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period .


 
P R O G R E S S T O W A R D S E N T E R P R I S E S O F T W A R E T A R G E T Preliminary Target Progress $25M $16M Identified Pipeline $12M Committed Revenue $28M Identified Pipeline + Committed Revenue


 
18 LIQUIDITY Available Liquidity (as of 03/31/2026) $750Commitment Under Credit Facility 350Drawn 16Letters of Credit $384Undrawn Commitments Under Facility 115Total Cash & Cash Equivalents $499Total Available Liquidity $ in Millions Note: Numbers may not foot due to rounding.


 
19 MAINTAINING DISCIPLINE AROUND Deferred Acquisition Costs DAC DECREASED BY $43M FROM 1Q25 QUARTER-END BALANCE $51M FROM 1Q24 QUARTER-END BALANCE $116M FROM 1Q23 QUARTER-END BALANCE Numbers may not foot due to rounding. $166M $101M $93M $50M 1Q23 1Q24 1Q25 1Q26


 
A D J U S T E D E A R N I N G S P E R S H A R E Three Months Ended March 31, 2026 Non-GAAPAdjustmentsReported (GAAP)$ and Shares in Thousands $ 43,195$56,168$ (12,973)Net income (loss) attributable to Stagwell Inc. common shareholders 250,766—250,766Diluted - Weighted average number of common shares outstanding $ 0.17$ (0.05)Adjusted earnings per share (diluted) Adjustments to net income $ 38,918Amortization expense 14,248Stock-based compensation 10,254Deferred acquisition consideration 11,210Other items, net 74,630Total add-backs (18,462)Adjusted tax expense 56,168 20 Note: Numbers may not foot due to rounding.


 
G A A P C O N S O L I D A T E D O P E R A T I N G P E R F O R M A N C E Note: Numbers may not foot due to rounding. 21 Three Months Ended March 31, 20252026$ and Shares in Thousands $ 651,740$ 704,143Revenue 412,087459,531Cost of services 179,362190,639Office & general expenses 42,00644,331Depreciation & amortization $ 633,455$ 694,501Total operating expenses $ 18,285$ 9,642Operating income (23,356)(23,266)Interest expense, net 1,220(3,021)Foreign exchange, net 249(69)Other, net $ (21,887)$ (26,356)Other income (expenses) (3,602)(16,714)Loss before income taxes and equity in earnings of non-consolidated affiliates 1,722(2,888)Income tax (benefit) expense $ (5,324)$ (13,826)Loss before equity in earnings of non-consolidated affiliates (1)(121)Equity in loss of non-consolidated affiliates $ (5,325)$ (13,947)Net loss 2,408974Net loss attributable to non-controlling & redeemable non-controlling interests $ (2,917)$ (12,973)Net loss attributable to Stagwell Inc. common shareholders Loss Per Share $ (0.03)$ (0.05)Basic $ (0.04)$ (0.05)Diluted Weighted Average Number of Shares Outstanding 112,088250,766Basic 263,737250,766Diluted


 
C A P I T A L S T R U C T U R E 1. A portion of the DAC will be paid with approximately 2.3m shares assuming conversion as of 4/29/26. 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 include portion of DAC to be settled in stock. Pro Forma total share count as of 4/22/2026 would be 247.9m Class A shares, 3.2m shares to settle DAC and 9.4m share-based awards, for a total of 260.5m shares outstanding. Net Debt & Debt-Like ($M, as of 03/31/2026) $ 350Revolving Credit Facility 1,100Bonds 18NCI 50DAC1 24RNCI2 (21)Less: Investments3 (115)Less: Cash $ 1,406TOTAL NET DEBT & DEBT-LIKE Share Count4 (Thousands, as of 4/22/2026) 247,854Class A 9,373Share-based awards 257,227DILUTED 22


 
S H A R E C O U N T T R A J E C T O R Y 298.0M 291.0M 266.5M 265.5M 246.4M 1Q22 1Q23 1Q24 1Q25 1Q26 Shares Outstanding Note: Shares Outstanding includes all Class A, B and C shares outstanding at the end of the specified quarter. Class B and Class C shares are no longer extant.. Reduction in Share Count (versus 1Q25) 19M Reduction in Share Count (versus 1Q22) 52M Available to Repurchase Shares Under Current Plan $356M


 
Thank You Contact Us: IR@StagwellGlobal.com