STGW earnings analysis
What we found in STGW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Stagwell Inc. reported Q1 2026 earnings with revenue of $704 million, marking an 8% increase year-over-year, while achieving adjusted EPS of $0.17, in line with estimates. However, operating income decreased by 47% to $9.6 million, driven primarily by rising operating expenses across segments, and a net loss attributable to shareholders expanded to $13.0 million from $2.9 million in the previous year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 8% Y/Y
- Revenue increased to $704.1 million from $651.7 million year-over-year, achieving an 8% growth.
- Adjusted EPS Matches Expectations
- The adjusted EPS for the quarter was $0.17, consistent with analysts' expectations.
- Adjusted EBITDA Increased
- Adjusted EBITDA rose by 9% to $89.7 million from $82.3 million in the prior year, reflecting operational improvements.
- Strong Performance in Digital Transformation
- Digital Transformation revenue grew 11.6% to $101.5 million, contributing to overall revenue growth.
- Improved Cash Flow Usage
- Cash used in operating activities reduced by 55.9% to $(26.5) million, thanks to better working capital management.
- Debt Level Increased
- Total debt increased from $1.326 billion to $1.440 billion as of March 31, 2026, indicating a rise in leverage.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Net Loss
- Net loss attributable to Stagwell Inc. shareholders rose sharply to $13.0 million from $2.9 million a year ago.
- Declining Operating Margins
- Operating income decreased by 47.3% to $9.6 million, driven by increased operating expenses.
- Segment Challenges in Media & Commerce
- The Media & Commerce segment reported a 276.5% decline in operating income to $(3.9) million, largely due to increased deferred acquisition costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.17
- Operating margin
- 1.37%
- Segment
- Marketing Services: $250.8M
- Segment
- Digital Transformation: $101.5M
- Segment
- Media & Commerce: $174.5M
- Segment
- Communications: $153.1M
- Segment
- The Marketing Cloud: $26.5M
What they said about what is next.
Management reiterates full-year revenue growth expectations of 8% to 12%.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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