Stagwell Inc (FRA:6IY)

Q2 2026 Stagwell Inc Earnings Call Transcript

Jul 30, 2026 / 12:30 PM GMT

Release Date Price: €6.95 (+1.46%)

Transcript 10-Q8-K

Key Points

Positve

Stagwell Inc (STGW) reported its strongest second quarter ever with 10% organic revenue growth and 5% organic net revenue growth.
Digital transformation segment saw 18% organic net revenue growth, driven by AI adoption and high-value work.
Adjusted EBITDA increased 15% year-over-year to $109 million, with margins expanding 140 basis points to 17.2%.
Net new business of $171 million was a record high, winning major accounts like IBM, Hershey, and Mondelez from legacy competitors.
Adjusted EPS grew 39% year-over-year to $0.25, supported by strong EBITDA growth and share buybacks.

Negative

Marketing services segment only achieved 0.5% organic net revenue growth, indicating slower performance in creative assignments.
Media and commerce segment grew just 1% organically, lagging behind other segments.
Net leverage remains elevated at 3.04 times, though the company targets mid-twos by year-end.
Free cash flow conversion is still targeted at 50-60% of adjusted EBITDA, suggesting room for improvement.
The company expects minimal M&A activity in 2026, relying heavily on organic growth which may limit diversification.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

STGW.OQ - Stagwell Inc
Q2 2026 Stagwell Inc Earnings Call
Jul 30, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, and thank you for joining us for Stagwell's second quarter earnings webcast. I'm Ben Allenson, and I lead the Investor Relations function here at Stagwell.

With me are Mark Penn, Stagwell's Chairman and Chief Executive Officer, and Ryan Green, Stagwell's Chief Financial Officer.

Mark will provide a business update before Ryan shares that financial review.

After the prepared remarks, we'll open the floor for Q&A. Please remember to submit the questions through the chat function.

Before we begin, I'd like to remind you that the following remarks include forward-looking statements and non-GAAP financial data. Forward-looking statements about the company, including those related to earnings

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