Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-13718 Stagwell Inc. (Exact name of registrant as specified in its charter) Delaware 86-139 ...

Core Viewpoint - Stagwell (STGW) reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.17 per share, and showing a decline from $0.16 per share a year ago, indicating an earnings surprise of -29.41% [1][2] Financial Performance - The company posted revenues of $651.74 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.93%, and down from $670.06 million year-over-year [2] - Over the last four quarters, Stagwell has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Stock Performance - Stagwell shares have declined approximately 11.7% since the beginning of the year, compared to a -4.3% decline in the S&P 500 [3] - The company's earnings outlook and management commentary will be crucial for future stock price movements [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $697.25 million, and for the current fiscal year, it is $0.86 on revenues of $2.94 billion [7] - The estimate revisions trend for Stagwell is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Advertising and Marketing industry, to which Stagwell belongs, is currently in the top 28% of Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - Stagwell reported net revenue of $564 million for Q1 2025, an increase of 6% over the prior period, with a 9% growth excluding advocacy [22][23] - Adjusted EBITDA for the quarter was $81 million, with a margin of 14.3%, an improvement of approximately 50 basis points over the same period in 2023 [28] - The company achieved a net revenue ratio of 65.3%, an improvement of 175 basis points over the same period in 2023 [6] Business Line Data and Key Metrics Changes - Digital transformation net revenue grew 8% to $106 million, with a 15% growth excluding advocacy [23] - Stagwell Marketing Cloud posted $63 million in net revenue, a 32% year-over-year increase, with a 45% growth excluding advocacy [23] - Creativity and communications delivered $242 million in net revenue, a 7% increase, with a 10% growth excluding advocacy [24] - Performance Media and Data reported $104 million in net revenue, a decline of 10% over the prior period [25] Market Data and Key Metrics Changes - Technology customers increased their spend by 18%, while retail customers saw a 52% increase [10] - The Middle East market experienced over 250% year-over-year net revenue growth in Q1 [13] - The company noted a significant increase in revenue from technology clients, driven by expansions at Apple and Google [23] Company Strategy and Development Direction - Stagwell aims to grow, scale, and innovate, focusing on digital transformation and creative capabilities [4][5] - The company is pursuing M&A as a key driver for international expansion and strengthening capabilities, with recent acquisitions including Jet Fuel and Unicepta [11][12] - Stagwell is committed to investing in technology, with $17 million allocated in Q1 to enhance data and software development [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, reiterating guidance for 2025 with expected total net revenue growth of approximately 8% [31] - The impact of tariffs was deemed minimal, with management stating that only one customer reduced spending due to tariffs [48][49] - The company anticipates that new business wins will start reflecting in revenue growth in the second half of the year [42] Other Important Information - Stagwell's trailing twelve months net new business reached $446 million, significantly higher than the previous year [9] - The company has a strong focus on AI and technology integration, appointing a Chief AI Officer to enhance capabilities [17] - The company completed the refinancing of its revolving credit facility, increasing capacity and improving terms [30] Q&A Session Summary Question: Can you provide more color on why you're winning more despite a cautious macro? - Management attributed success to the rise of AI and the ability to meet client challenges, while larger agencies are reorganizing and deemphasizing creativity [34][35] Question: Are you getting new clients due to consolidation among larger players? - Management indicated that Stagwell is well-positioned to compete against larger firms, leveraging its nimble and tech-infused approach [40][41] Question: When will new business wins start reflecting in net revenue growth? - Management expects to see the impact of new wins in the second half of the year, as Q1 reflects prior wins [42] Question: Can you provide details on the turnaround for Performance Media and Data in Q2? - Management noted that a significant client reduced spending in Q1, but expects new clients to follow a more typical seasonal pattern [44] Question: Have you seen changes in client behavior amid macro uncertainty? - Management reported minimal direct impacts from tariffs and emphasized that the company is not on the front lines of tariff issues [48][49]

Financial Data and Key Metrics Changes - Stagwell reported net revenue of $564 million for Q1 2025, an increase of 6% over the prior period, with a 9% growth excluding advocacy [23][24] - Adjusted EBITDA for the quarter was $81 million, with a margin of 14.3%, an improvement of approximately 50 basis points over the same period in 2023 [29] - The company achieved a net revenue ratio of 65.3%, an improvement of 175 basis points compared to the same period in 2023 [6] Business Line Data and Key Metrics Changes - Digital transformation net revenue grew 8% to $106 million, with a 15% growth excluding advocacy [24] - Stagwell Marketing Cloud posted $63 million in net revenue, a 32% year-over-year increase, and 45% growth excluding advocacy [24] - Creativity and communications generated $242 million in net revenue, a 7% increase, with a 10% growth excluding advocacy [25] - Performance Media and Data reported $104 million in net revenue, a decline of 10% compared to the prior period [27] Market Data and Key Metrics Changes - Technology clients increased their spending by 18%, while retail clients saw a 52% increase in spending [10] - The Middle East market experienced over 250% year-over-year net revenue growth in Q1 [13] - The company noted a significant increase in revenue from technology clients, driven by expansions at Apple and Google [24] Company Strategy and Development Direction - Stagwell aims to grow, scale, and innovate, focusing on digital transformation and creative capabilities [4][5] - The company is actively pursuing M&A opportunities to expand internationally and strengthen its capabilities [11] - Stagwell is investing in AI and technology solutions to enhance its service offerings and operational efficiency [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, reiterating guidance for 2025 with expected total net revenue growth of approximately 8% [32] - The impact of tariffs on business has been minimal, with management emphasizing that the company is not directly affected by tariff-related issues [49][50] - Management anticipates that new business wins will start reflecting in revenue growth in the second half of the year [44] Other Important Information - The company completed the refinancing of its revolving credit facility, increasing capacity to $750 million [31] - Stagwell's recent acquisitions, including Jet Fuel and Unicepta, are expected to enhance its capabilities in experiential marketing and analytics [12] Q&A Session Summary Question: Can you provide more color on why you're winning more despite a cautious macro environment? - Management noted that the AI era is driving increased assignments to remake consumer experiences, and Stagwell's creative capabilities are being recognized as top-tier amidst industry reorganizations [36][38] Question: Are you getting new clients due to consolidation among larger players? - Management indicated that Stagwell is well-positioned to meet client needs as larger holding companies struggle with their offerings, allowing Stagwell to capture new business [41][42] Question: When will new wins start to be reflected in net revenue growth? - Management expects to see the impact of new wins in the second half of the year, as the first quarter reflects wins from the previous half-year [44] Question: Can you provide details on the turnaround for Performance Media and Data in Q2? - Management explained that a reduction in spend from a single client affected Q1 results, but expects a rebound in Q2 as new clients come on board [46] Question: Have you seen changes in client behavior amid macro uncertainty? - Management reported minimal direct impacts from tariffs and emphasized that the company is not on the front lines of tariff issues, maintaining confidence in their full-year guidance [49][50]

` FOR IMMEDIATE ISSUE STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2025 Q1 YoY Revenue Decline of 3%, Q1 YoY Net Revenue Growth of 6% Q1 YoY Net Revenue Growth excluding Advocacy of 9%, Digital Transformation Net Revenue ex. Advocacy Growth of 15% Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $3 million; Q1 Adjusted EBITDA of $81 million; Adjusted EBITDA Margin of 14% Q1 EPS of $(0.04); Adjusted EPS of $0.12 Net New Business of $130 million in Q1; LTM ...

Q1 YoY Revenue Decline of 3%, Q1 YoY Net Revenue Growth of 6%Q1 YoY Net Revenue Growth excluding Advocacy of 9%, Digital Transformation Net Revenue ex. Advocacy Growth of 15%Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $3 million; Q1 Adjusted EBITDA of $81 million; Adjusted EBITDA Margin of 14%Q1 EPS of $(0.04); Adjusted EPS of $0.12Net New Business of $130 million in Q1; LTM Net New Business of $446 millionReiterate Guidance for 2025 of Total Net Revenue Growth of ~8%; Adjusted EBITDA o ...

Core Insights - Public attitudes toward mental health are improving, but stigma and barriers to care remain significant challenges across the U.S. [1][7] Group 1: Public Perception and Stigma - 88% of U.S. adults believe having a mental health disorder is not something to be ashamed of, yet 84% think the term "mental illness" carries a stigma [2] - More than one-third (35%) of adults would view someone differently if they learned they had a mental health condition, with higher percentages among younger adults [2] - 81% of U.S. adults feel comfortable discussing mental health with friends, indicating a willingness to engage in conversations [3] Group 2: Young Adults' Attitudes - Young adults aged 18-34 are more likely to feel negative about their mental health, with only 41% feeling positive compared to 61% of those aged 55 and older [4] - Over one-third (34%) of young adults cite not having someone to confide in as a barrier to discussing mental health openly [4] - 52% of young adults would feel comfortable discussing mental health with an AI chatbot, compared to 26% of older adults, suggesting a preference for anonymity [5] Group 3: Barriers to Care - Cost (29%) and finding a compatible provider (36%) are cited as top barriers to seeking effective mental health treatment [6] - Only 28% of U.S. adults feel their mental health is better today than a year ago, indicating ongoing challenges [6] - The survey highlights the need for continued efforts to address emotional and financial barriers to mental health support [7]

NEW YORK, May 6, 2025 /PRNewswire/ -- Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, today announced the acquisition of JetFuel, an experiential marketing services agency that accelerates brand awareness through experiences, content and conversations. JetFuel will become a subsidiary of Stagwell's integrated experiential agency TEAM. Stagwell has announced the acquisition of JetFuel, an experiential marketing services agency that accelerates brand awareness through experie ...

Stagwell (STGW) closed the last trading session at $5.62, gaining 5.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $8.88 indicates a 58% upside potential.The average comprises eight short-term price targets ranging from a low of $7.25 to a high of $10, with a standard deviation of $1.10. While the lowest estimate indicates an increase of 29% from the current price level, the mo ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...