Stagwell Q2 earnings call highlights. July 30, 2026 Key points. * Strong Q2 performance: Revenue rose 11% to $786 million, organic revenue increased 10%, and adjusted EBITDA grew 15% to $108.7 million as margins expanded to 17.2%. Adjusted EPS climbed 39% to $0.25. * AI-driven demand and new business fueled growth: Digital transformation organic net revenue surged 18% and communications grew 12%, while record net new business reached $171 million. Stagwell also secured $16 million in committed enterprise technology revenue and expects to exceed its $25 million annual bookings target for AI products. * Outlook maintained, EPS raised: Full-year revenue, EBITDA and free-cash-flow guidance remained unchanged, but adjusted EPS guidance increased to $1.03-$1.17 due largely to share repurchases. Cost savings, improving cash flow and planned debt reduction are expected to lower leverage toward the mid-two-times range by year-end. * MarketBeat previews the top five stocks to own by August 1st. Stagwell NASDAQ: STGW reported second-quarter results marked by accelerating organic growth, higher profitability and record net new business, as the marketing services company emphasized demand for AI-enabled digital transformation and communications work. Revenue increased 11% year over year to $786 million, while net revenue rose 6% to $632 million, Chief Financial Officer Ryan Greene said. Organic revenue grew 10% and organic net revenue grew 5%, which Greene described as the company's strongest growth rate in the past six quarters. Adjusted EBITDA rose 15% to $108.7 million, and the adjusted EBITDA margin expanded 143 basis points to 17.2%. Adjusted earnings per share increased 39% year over year to $0.25, aided by both EBITDA growth and a lower share count following repurchases. Digital transformation and communications lead growth. Chairman and Chief Executive Officer Mark Penn said the company's digital transformation segment was a principal growth driver, posting 18% organic net revenue growth to $107 million. The segment generated a 30% margin during the quarter, its highest since the merger, according to Greene. Penn attributed the performance to demand for work combining business strategy, technology, creativity and AI transformation. He said clients are moving away from commoditized IT services and seeking partners that can help redesign consumer communications and workflows around AI. "AI is the tech transformation that we were built for," Penn said, adding that the company expects the demand to be sustainable over the long term. He said approximately 75% of coding work is now performed agentically, improving efficiency while Stagwell pursues higher-level client assignments. Communications organic net revenue increased 12% to $112 million, its strongest second quarter since the merger. Penn said political activity is beginning to contribute to the segment's growth and should accelerate ahead of November's midterm elections, while public relations work has also continued to rebound. Other segment results included: * Marketing Cloud organic net revenue growth of 4% to $27 million, supported by demand for AI-embedded products and subscription offerings. * Marketing Services net revenue of $243 million, up 0.5% organically. Greene said major creative assignments awarded during the quarter are expected to scale in the second half and support stronger growth in 2027. * Media and Commerce organic net revenue growth of 1% to $155 million. Geographically, U.S. organic net revenue increased 7.1%, while U.K. organic net revenue rose 13.4%. Record new business and AI product pipeline. Stagwell reported $171 million in net new business, its highest level to date and 45% above the prior-year second quarter, Penn said. New assignments included IBM's creative business, expanded work with Adobe, Visit California, Hershey, Mondelez, Heineken, Haier Europe, Navy Federal Credit Union and Allegiant Air. Discover more MarketBeat Research Tools Cryptocurrency News Penn said the company expects its cumulative year-end new-business pipeline to be about 30% higher than the prior year. He characterized the wins as evidence that clients are seeking a combination of creativity, technology and agility from agencies. The company is also developing an enterprise suite of agentic marketing products, including The Machine, the Knowledge Machine, the Targeting Machine and The Media Machine. Penn said Stagwell had secured $16 million in committed enterprise technology revenue during the first half, with another $16 million in its pipeline. The company remains on track to exceed its initial $25 million annual bookings goal for the products, he said. Stagwell's Targeting Machine, or SATS, is built on Palantir's Foundry platform, while the company has also expanded its relationship with Adobe. Penn said the company is adding sales teams to support technology-product distribution alongside its traditional marketing-services sales infrastructure. Cost actions, cash flow and capital allocation. Greene said Stagwell has implemented about $70 million in annualized savings since launching a cost-reduction program in April 2025 and remains on track for $80 million to $100 million of savings by year-end. Staff costs declined 280 basis points year over year to 60.9% of net revenue, the company's lowest second-quarter labor ratio in four years. Year-to-date cash flow from operations was $63.7 million, up $9 million, or 16%, from the first half of the prior year. Stagwell expects operating cash flow to improve through the remainder of the year because of business seasonality and anticipated election-related communications activity. The company's revolver balance was $360 million at quarter-end, with $374 million in unused borrowing capacity. Net leverage stood at 3.04 times, and management said it expects to exit the year with leverage in the mid-two-times range. During the quarter, Stagwell repurchased approximately 5.9 million shares at an average price of $6.22 each. Through the first half, it repurchased about 14.4 million shares for $88 million at an average price of $6.10 per share. Shares outstanding at the end of the second quarter were 244.4 million, down 6.4% from a year earlier. Guidance maintained; EPS outlook raised. Stagwell maintained its full-year guidance for net revenue growth of 8% to 12%, adjusted EBITDA of $475 million to $525 million, and free-cash-flow conversion of 50% to 60% of adjusted EBITDA. However, the company raised its adjusted EPS outlook to $1.03 to $1.17, primarily reflecting year-to-date share repurchases. Management said growth in the second half is expected to be overwhelmingly organic, led by digital transformation and communications. Penn said Stagwell expects some acquisitions in the second half but does not anticipate any transaction that would be "huge or disruptive." He said capital allocation will remain balanced among debt reduction, share buybacks, capital expenditures and selective small- to midsize acquisitions. About Stagwell (NASDAQ:STGW). Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services. Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Stagwell, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Stagwell wasn't on the list. While Stagwell currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.

Stagwell (STGW) to Acquire QStrauss Consulting to Expand Code and Theory's Implementation of Adobe's Suite of Solutions. * 1 hr ago Colombia-Based Adobe Implementation Specialist Joins Stagwell's Code and Theory Network, Expanding the Network's Global Footprint and Deepening Its Bench of Adobe Experts NEW YORK CITY, NY / ACCESS Newswire / July 27, 2026 / Stagwell (NASDAQ:STGW), the challenger network transforming marketing through AI, today announced it has entered into an agreement to acquire QStrauss Consulting, a leading Adobe implementation and consulting firm and preferred Adobe consulting vendor. Based in Colombia, QStrauss Consulting will join the Code and Theory Network, further expanding its global footprint and team of Adobe experts. Gracie Abrams has insisted it is 'appropriate' to call her a nepo baby QStrauss Consulting helps leading global brands including Walmart, BBVA, Santander, Grupo Salinas, OXXO and Bimbo drive measurable impact from Adobe platforms. The firm specializes in Adobe consulting, implementation and integrations, and thrives at helping clients simplify, optimize and transform business processes. "The addition of QStrauss further enhances Stagwell's position as a leader in digital transformation," said Stagwell Chairman and CEO Mark Penn. "QStrauss builds upon our existing Adobe capabilities, strengthening our expertise and helping clients maximize the value of their marketing technology investments." This acquisition reinforces Code and Theory's unique relationship with Adobe. Code and Theory recently announced a three-year co-development agreement with Adobe to build industry-specific solutions that combine Adobe's platforms with Code and Theory's creative and technology expertise, backed by Stagwell's network and infrastructure. The solutions focus on industries where Code and Theory has deep roots, including financial services, B2B, sports and retail. Code and Theory debuted the first solution, the Creative Intelligence System (CIS), at Adobe Summit earlier this year. This new capability helps marketers learn before they launch by leveraging synthetic personas to make more informed decisions throughout the campaign process. CIS is powered by Stagwell's ID graph and Code and Theory's marketing operating system, The Machine, an always-on system that connects campaign data, asset libraries, creative production and performance results across the enterprise. The acquisition of QStrauss further extends the Code and Theory Network's global footprint, building on its recent growth in the MENA region. Last year, Stagwell and Code and Theory launched Maydan Sports, a global sports engagement collective designed to help organizations across the region build global reputations and deliver local impact through sport. The year prior, Create.Group, the leading digital agency in the Middle East, joined the Code and Theory network further enhancing its capabilities in the region. Gabriel Africany, Co-Founder of QStrauss Consulting, says: "Joining Stagwell and the Code and Theory Network is a major milestone for QStrauss Consulting and for the team we've built. We're proud to be a trusted Adobe implementation partner and this partnership will let us scale that impact, bringing deeper Adobe expertise and stronger delivery capacity as Code and Theory co-develops industry solutions with Adobe." Dan Gardner, Co-Founder of Code and Theory, added: "Code and Theory and Adobe are creating software and services that allow businesses to take a leadership position during this next era of creative and technological possibilities. This acquisition gives us more global reach, talent and ability to do things that haven't been done before. It further solidifies Code and Theory as the place where the C-suite comes together to experience change." About QStrauss Consulting QStrauss is a technology consulting and implementation firm that helps organizations transform operations through process design, automation, system integration, and digital enablement. Acting as an extension of its clients' teams, QStrauss combines business analysis with hands-on implementation expertise to simplify complex operations, improve visibility, and create scalable operating models. The company supports organizations across the full technology adoption journey, from discovery and solution design to deployment, governance, and continuous optimization. Visit https://www.qstrauss.com/. About Stagwell Stagwell is the global challenger network transforming marketing through AI. Mycarrollcountynews 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, its specialists in 45+ countries are unified under a single purpose: to drive effectiveness and improve business results for its clients. Join Mycarrollcountynews at www.stagwellglobal.com. About The Code and Theory Network The Code and Theory Network is the only technology and creative network with a balance of 50% creative and 50% engineers. Its unique makeup makes Mycarrollcountynews the place where CMOs, CTOs and CIOs come together to drive results for their businesses. Mycarrollcountynews partner with its clients to redefine what is possible to create lasting impact and drive long-term growth. Part of Stagwell, Code and Theory offers a global footprint and the capabilities to work across the entirety of the customer-facing journey, and implement the technology that powers it. The network includes the flagship agency Code and Theory as well as Kettle, Instrument, Left Field Labs, Truelogic, Create. Group, and Current. Code and Theory clients include Amazon, JPMorganChase, Microsoft, NBC, NFL and Yeti. For more, visit codeandtheory.com. MEDIA CONTACT: View the original on ACCESS Newswire

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