Stagwell Q1 revenue slightly beats estimates on AI-driven digital boost
Overview
US marketing services firm's Q1 revenue rose 8%, a slight beat of analyst expectations
Adjusted EPS for Q1 was $0.17, meeting analyst expectations
Q1 adjusted EBITDA grew 9% but slightly missed analyst estimates
Outlook
Stagwell reiterates 2026 total net revenue growth guidance of 8% to 12%
Company maintains 2026 adjusted EBITDA outlook of $475 mln to $525 mln
Stagwell expects 2026 adjusted EPS of $0.98 to $1.12
Result Drivers
DIGITAL TRANSFORMATION - Co said 9% net revenue growth in digital transformation was driven by applying AI to client work
NEW BUSINESS WINS - Record net new business of $141 mln in Q1, including first government contracts, contributed to growth
COST CONTROL - Management said cost controls supported 9% adjusted EBITDA growth and 31% adjusted EPS growth
Company press release: ID:nACScz4W3a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Slight Beat* | $704 mln | $700.51 mln (8 Analysts) |
Q1 Adjusted EPS | Meet | $0.17 | $0.17 (7 Analysts) |
Q1 EPS |
| -$0.05 |
|
Q1 Net Income |
| -$13 mln |
|
Q1 Adjusted EBITDA | Slight Miss* | $90 mln | $90.42 mln (8 Analysts) |
Q1 Adjusted EBITDA Margin |
| 15.00% |
|
Q1 Revenue Growth |
| 8.00% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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