Q3 2025 Stagwell Inc Earnings Call Transcript
Key Points
- Stagwell Inc (STGW) reported a significant increase in revenue, with a total of $743 million and net revenue of $615 million, reflecting a 12% and 10% increase respectively, excluding advocacy.
- The company achieved a record LTM net new business of $472 million, with top client relationships expanding significantly.
- Stagwell Inc (STGW) announced a groundbreaking partnership with Palantir to develop an AI-based audience platform, expected to generate significant new revenue.
- The marketing cloud segment saw excellent net revenue growth of 138%, driven by strong organic growth and contributions from recent acquisitions.
- The company is on track to deliver $80 to $100 million in annualized savings by the end of 2026, with $60 to $70 million expected this year.
- Stagwell Inc (STGW) reported a decline in organic growth, with a reported decrease of 0.4% in Q3.
- The communications segment faced challenges, with softer PR results due to industry-wide headwinds and elongated pitch cycles.
- The company did not achieve its planned $100 million in new revenue from acquisitions, only reaching about $65 million.
- There is a slowdown in the communications vertical, reflecting broader industry issues in that segment.
- The adjusted EBITDA margin declined by 60 basis points compared to Q3 2024 due to lower advocacy.
Good morning from Stagwell's office in Miami. Welcome to Stagwell's 3rd quarter 2025 earnings webcast. My name is Ben Allison, and I lead the investor relations function here at Stagwell.
With me today are Mark Penn, Staggwell's Chairman and Chief Executive Officer, and Ryan Green, Staggwell's Chief Financial Officer.
Mark will provide a business update before Ryan shares a financial review. After the prepared remarks, we will open the floor for Q&A. You're welcome to submit 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 guidance, are subject to uncertainties and risk factors addressed in our earnings release, slide presentation, and the company's SEC filings.
Please refer to our website stagwellglobal.com/investors for an investor presentation and additional resources. This morning's press release and
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