Prime Highlights
- Stagwell posts its biggest-ever second quarter, driven by a record $171 million Net New Business quarter.
- Digital Transformation net revenue grows 18% organically, leading Stagwell’s accelerating organic growth.
Key Facts
- Stagwell’s Q2 revenue rises 11% to $786 million, with adjusted EPS up to $0.25 from $0.18.
- Last twelve-month net new business reaches $540 million, backed by wins from Adobe, IBM and Heineken.
Background
Stagwell reported its strongest second quarter on record, driven by record-breaking net new business wins including Adobe, IBM, Heineken, Hershey’s, Haier, Mondelez and Visit California.
The company also advanced its AI-powered offerings, including The Media Machine and Stagwell Curate, and completed its acquisition of QStrauss Consulting, a Colombia-based Adobe implementation and consulting firm.
Chairman and CEO Mark Penn said the results show Stagwell thriving in the AI era, pointing to the company’s combination of software, services and engineers as a key driver behind the record $171 million Net New Business quarter.
He noted organic net revenue growth continues to accelerate, led by 18% growth in the Digital Transformation segment and 12% growth in Communications as the political cycle picks up.
He added that strong growth, cost management and share repurchases have led the company to raise its adjusted EPS outlook for the year, with double-digit growth expected in the second half.
Q2 revenue reached $786 million, up 11% year over year, while net revenue rose 6% to $632 million. Digital Transformation net revenue climbed 18% organically to $107 million.
Adjusted EBITDA increased 15% to $109 million, with an adjusted EBITDA margin of 17% on net revenue. Adjusted earnings per share rose to $0.25 from $0.18 a year earlier. Last twelve-month net new business reached $540 million.
Chief Financial Officer Ryan Greene said the company expanded adjusted EBITDA while growing its topline, and that continued share repurchases helped drive 39% growth in adjusted EPS. He said Stagwell remains on course to deliver its full-year outlook, including its raised adjusted EPS guidance.
