Stagwell (US:STGW)2025-07-31 11:15Financial Performance - Q2 revenue of $707 million, a 5% increase year-over-year; YTD revenue of $1,359 million, a 1% increase year-over-year[4] - Q2 net revenue of $598 million, an 8% increase year-over-year; YTD net revenue of $1,162 million, a 7% increase year-over-year[4] - Q2 adjusted EBITDA of $93 million, an 8% increase year-over-year; YTD adjusted EBITDA of $173 million, a 2% decrease year-over-year[4] - Q2 net loss attributable to common shareholders of $5 million, compared to a loss of $3 million in the prior year period[4] - Revenue for the three months ended June 30, 2025, was $706.8 million, an increase from $671.2 million in the same period of 2024, representing a growth of 5.4%[26] - Operating income for the three months ended June 30, 2025, was $23.2 million, compared to $21.9 million in the same period of 2024, reflecting an increase of 5.8%[26] - Organic net revenue growth for the three months ended June 30, 2025, was 7.2%, with total net revenue reaching $598.1 million[28] - For the six months ended June 30, 2025, total revenue was $1.36 billion, up from $1.34 billion in the same period of 2024, indicating a growth of 1.6%[26] Guidance and Future Outlook - 2025 guidance includes total net revenue growth of approximately 8% and adjusted EBITDA of $410 million to $460 million[10] - Free cash flow conversion expected to exceed 45%[10] - Adjusted EPS guidance for 2025 is projected between $0.75 and $0.88[10] - Future outlook includes continued focus on market expansion and new product development to drive revenue growth[38] Cost Management - Significant progress on cost-saving initiatives, with $20 million in annualized savings achieved ahead of schedule[6] - The company reported staff costs of $697.506 million for the six months, which accounted for 52% of total revenue[40] - Administrative costs for the six months were $136.697 million, indicating a 10% increase compared to the same period last year[40] - Stagwell Inc. reported stock-based compensation of $31,497 thousand for the six months ended June 30, 2025, compared to $21,991 thousand in the prior year, representing an increase of approximately 43.1%[53] Segment Performance - The Integrated Agencies Network segment reported net revenue of $344.9 million for the three months ended June 30, 2025, a 4.1% increase from the previous year[34] - The Brand Performance Network segment experienced a decline in net revenue of 3.0%, totaling $154.9 million for the three months ended June 30, 2025[34] - The All Other segment saw significant growth, with net revenue increasing by 126.4% to $24.0 million for the three months ended June 30, 2025[34] Assets and Liabilities - The total assets increased to $4,317,175 thousand as of June 30, 2025, compared to $3,908,221 thousand at the end of 2024, reflecting a growth of approximately 10.4%[51] - Cash and cash equivalents rose to $181,309 thousand at the end of June 2025, up from $131,339 thousand at the end of 2024, indicating an increase of about 38.1%[51] - The total current liabilities increased to $1,464,471 thousand as of June 30, 2025, from $1,367,296 thousand at the end of 2024, marking an increase of about 7.1%[51] - Long-term debt stood at $1,464,242 thousand as of June 30, 2025, compared to $1,353,624 thousand at the end of 2024, reflecting an increase of approximately 8.2%[51] Earnings and Losses - The company reported a basic loss per common share of $0.02 for the three months ended June 30, 2025, compared to a loss of $0.03 in the same period of 2024[26] - The net income attributable to Stagwell Inc. common shareholders for the three months ended June 30, 2024, was $15.970 million, with an adjusted diluted EPS of $0.14[47] - For the six months ended June 30, 2024, Stagwell Inc. reported a net loss attributable to common shareholders of $4,247 thousand, while the adjusted net income was $81,550 thousand[49] - The company’s diluted EPS for the six months ended June 30, 2024, was $(0.04), while the adjusted diluted EPS was $0.30[49]