Q1 2026 Stagwell Inc Earnings Call Transcript
Key Points
- Stagwell Inc (STGW) achieved record net new business in the first quarter, with wins approximately $80 million ahead of the previous year.
- The digital transformation segment led growth with a 9% increase, and the company expects mid-teens growth in the second half of the year.
- Revenue grew 8% to $704 million, and net revenue grew 4% to $585 million, with growth across all five segments.
- Adjusted EBITDA grew 9% year-over-year to $90 million, reflecting prudent cost controls and margin improvement.
- Stagwell Inc (STGW) repurchased approximately 7.3 million shares, reducing shares outstanding and contributing to a 31% increase in EPS.
- International efforts were muted by a strengthening dollar and slowdowns in the Middle East tourism and technology sectors.
- The media segment is still recovering from the loss of a major client, H&R Block, which affected the first quarter.
- The company faces challenges in reducing client churn, particularly among smaller clients, which impacts organic growth.
- There is uncertainty regarding the macroeconomic impact of the Middle East conflict and oil prices on client marketing plans.
- The company is heavily investing in AI and technology capabilities, which may strain resources if not managed effectively.
Good morning, and welcome to Stagwell's first quarter 2026 earnings webcast. I'm Lena Petersen, Stagwell's Chief Brand and Communications Officer, [Phila Nampura] Director of Investor Relations Ben Allanson today. With me are Mark Penn, Stagwell's Chairman and Chief Executive Officer and Ryan Greene, Stagwell's Chief Financial Officer. Mark will provide a business update before Ryan Greene shares a financial review.
(Operator Instructions).
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 slide deck provide definitions, explanations, and reconciliations of non-GAAP financial data.
And with that, I'd like to turn the call
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