Stagwell (STGW) Q4 2025 earnings summary

Executive summary

• Achieved record net revenue of $651M in Q4 2025, with full-year revenue up 2% to $2.91 billion and net revenue up 6% to $2.43 billion; organic growth in digital transformation and marketing services was 9% and 5% respectively.

• Net new business reached $476M for the last twelve months, with major client wins and expansions.

• Free cash flow more than doubled to $187M, representing a 45% conversion from adjusted EBITDA.

• Accelerated share buyback announced, with $350M expansion and $400M capacity, reflecting confidence in organic growth and undervalued stock.

• Strategic focus on AI and digital transformation, with major product launches and positioning for further growth in advocacy, sports, and AI-driven marketing solutions.

Financial highlights

• Q4 2025 net revenue was $651M, up 3.4% year-over-year; full-year net revenue reached $2.43B, up 5.7%.

• Adjusted EBITDA for 2025 was $422M (17.4% margin); Q4 adjusted EBITDA margin was 19.9%.

• Adjusted EPS increased 5% to $0.83 for FY25; Q4 adjusted EPS was $0.30, up from $0.25 in Q4 FY24.

• Free cash flow more than doubled to $187M, with net cash from operating activities at $291M.

• Net leverage ratio at year-end was 2.92x.

Outlook and guidance

• FY26 guidance: total net revenue growth of 8–12%, adjusted EBITDA of $475M–$525M, adjusted EPS of $0.98–$1.12, and free cash flow conversion of 50–60%.

• Expecting approximately 10% net revenue growth in 2026, mainly organic, driven by political cycle, new business, AI products, and improved client retention.

• Media segment expected to return to high single-digit organic growth in 2026.