Stagwell Reports Q3 Revenue of $816 Million and Raises 2026 Guidance
Stagwell reported higher third-quarter revenue, adjusted EBITDA and adjusted EPS, while first-nine-month net income attributable to common shareholders was a $3 million loss.
Stagwell Inc. (NASDAQ:STGW) reported third-quarter revenue of $816 million for the period ended September 30, 2026, alongside higher adjusted EBITDA and adjusted EPS. The company also increased its full-year 2026 guidance for both measures, while reporting a year-to-date net loss attributable to Stagwell Inc. common shareholders.
Third-quarter revenue rose 10% from the prior-year period to $816 million. Revenue for the first nine months reached $2,306 million, also an increase of 10%.
Quarterly net revenue was $664 million, up 8% from the prior-year period, while year-to-date net revenue was $1,880 million, an increase of 6%. On an organic basis, Q3 revenue increased 11% and Q3 net revenue increased 7%. For the first nine months, organic revenue growth was 9% and organic net revenue growth was 5%.
#Digital Transformation and Marketing Cloud performance
Stagwell reported Q3 Digital Transformation net revenue of $119 million, representing organic growth of 23% from the prior-year period. The company said its two-year net revenue growth stack for the segment was 38%, with a two-year organic net revenue growth stack of 30%.
Q3 The Marketing Cloud net revenue was $56 million, with organic growth of 108%. Year-to-date enterprise technology products contracted to date were $59 million, which Stagwell said was more than double its initial FY26 target.
Third-quarter adjusted EBITDA increased 25% from the prior-year period to $145 million. Adjusted EBITDA margin was 22% on net revenue. For the first nine months, adjusted EBITDA was $343 million, up 17%, with an adjusted EBITDA margin of 18%.
Q3 net income attributable to Stagwell Inc. common shareholders was $18 million, compared with $25 million in the prior-year period. Reported earnings per share was $0.07, compared with $0.09, while adjusted EPS increased to $0.34 from $0.24.
For the first nine months, Stagwell reported a net loss attributable to Stagwell Inc. common shareholders of $3 million, compared with income of $16 million in the prior-year period. Year-to-date loss per share was $(0.01), compared with earnings per share of $0.04. Year-to-date adjusted EPS was $0.77, compared with $0.54.
Net cash provided by operating activities for the first nine months was $152 million, compared with $31 million in the prior-year period. Year-to-date free cash flow increased 227% year over year to $52 million.
Stagwell reported third-quarter net new business of $168 million and last-twelve-month net new business of $586 million. The company also highlighted its largest multi-agency deal with ServiceNow, its first major federal government win and an expanded partnership with Palantir.
Chairman and CEO Mark Penn said software products, including the agentic Stagwell Machines, and the Digital Transformation segment were driving the business as the company shifted from primarily marketing services toward AI-powered marketing transformation.
Chief Financial Officer Ryan Greene said net leverage stood at 2.7x, a 0.7x improvement year over year. He described the ratio as Stagwell's lowest third-quarter level.
Stagwell raised its 2026 adjusted EBITDA guidance to $490 million to $540 million and its adjusted EPS guidance to $1.07 to $1.21. The company reiterated total net revenue growth guidance of 8% to 12% and free cash flow conversion guidance of 50% to 60%.
The company said its guidance includes the anticipated impact from acquisitions or dispositions. Stagwell also cautioned that its forward-looking statements are subject to risks and uncertainties, including economic conditions, client demand, competition, employee retention, debt-agreement compliance, acquisitions and divestitures, AI-related product development, tax matters, cybersecurity, geopolitical disruption and foreign currency fluctuations. It said actual results could differ materially from those in the forward-looking statements.
Stagwell Inc. announced financial results for the three and nine months ended September 30, 2026. The release also updated the company’s full-year 2026 adjusted EBITDA and adjusted EPS guidance.
Stagwell Inc.’s shares trade on NASDAQ under the ticker symbol STGW, shown in the source as NASDAQ:STGW.
Stagwell Inc. describes itself as a global challenger network transforming marketing through AI. It says its specialists in 40+ countries deliver scaled creative performance by connecting creativity with technology.
Stagwell Inc. reported Q3 revenue of $816 million, an increase of 10% versus the prior year period, and year-to-date revenue of $2,306 million, an increase of 10%. Q3 revenue increased 11% organically, while year-to-date revenue increased 9% organically.
Stagwell Inc. reported Q3 net revenue of $664 million, an increase of 8% versus the prior year period, and year-to-date net revenue of $1,880 million, an increase of 6%. Q3 net revenue increased 7% organically and year-to-date net revenue increased 5% organically.
Stagwell Inc. reported Q3 Digital Transformation net revenue of $119 million, an organic increase of 23% versus the prior year period, and Q3 The Marketing Cloud net revenue of $56 million, an organic increase of 108%. The company also said year-to-date enterprise technology products contracted to date were $59 million, more than double its initial FY26 target.
Stagwell Inc. reported Q3 net income attributable to Stagwell Inc. common shareholders of $18 million, compared with $25 million in the prior year period. Q3 adjusted EBITDA was $145 million, an increase of 25%, while Q3 adjusted EPS was $0.34 versus $0.24 and reported EPS was $0.07 versus $0.09.
For the first nine months of 2026, Stagwell Inc. reported a net loss attributable to Stagwell Inc. common shareholders of $3 million, compared with income of $16 million in the prior year period. Year-to-date adjusted EPS was $0.77 versus $0.54, while loss per share was $(0.01) versus earnings per share of $0.04.
Stagwell Inc. reported year-to-date net cash provided by operating activities of $152 million versus $31 million in the prior year period. Year-to-date free cash flow increased 227% year over year to $52 million.
Stagwell Inc. reported net new business of $168 million in the third quarter and last-twelve-month net new business of $586 million. The release also highlighted the company’s largest multi-agency deal in its history with ServiceNow, its first major federal government win and an expanded partnership with Palantir.
Stagwell Inc.’s CFO said net leverage stood at 2.7x, which was a 0.7x improvement year over year. The CFO described this as the company’s lowest-ever third-quarter ratio.
Chairman and CEO Mark Penn said software products, including the agentic Stagwell Machines, and the Digital Transformation segment were driving the business as Stagwell pivoted from primarily marketing services to AI-powered marketing transformation. CFO Ryan Greene said organic net revenue, adjusted EBITDA and adjusted EPS growth contributed to improved results and higher year-to-date operating cash flow.
Stagwell Inc. raised its 2026 adjusted EBITDA guidance to $490 million to $540 million and its adjusted EPS guidance to $1.07 - $1.21. The company reiterated total net revenue growth of 8% to 12% and free cash flow conversion of 50% to 60%; the guidance includes the anticipated impact from acquisitions or dispositions.
Stagwell Inc. said its forward-looking statements are subject to risks and uncertainties, including economic conditions, client demand and spending, competition, employee retention, debt-agreement compliance, financing contingent payment obligations, acquisitions and divestitures, development of AI-related products, tax matters, cybersecurity, geopolitical disruption and foreign currency fluctuations. The company also said actual results could differ materially from those in its forward-looking statements and that it undertakes no obligation to update them publicly.
Stagwell Inc. said management would host a video webcast on Thursday, October 29, 2026, at 8:30 a.m. (ET). A recording was scheduled to be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.