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Earnings analysis · 10-Q

STGW earnings analysis

Filed May 1, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

Where revenue came from

The business segments reported by the company.

Marketing Services 35.5% Media & Commerce 24.7% Communications 21.7% Digital Transformation 14.4% The Marketing Cloud 3.8%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$0.17
Operating margin
1.37%

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Management reiterates full-year revenue growth expectations of 8% to 12%.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.