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NEW YORK - Stagwell Inc. (NASDAQ:STGW) reported second-quarter revenue that exceeded analyst expectations on Thursday, as the marketing services company continues to gain market share amid strong performance in its digital transformation businesses.
Stagwell shares edged up 0.19% in after hours trading following the announcement.
The company posted adjusted earnings per share of $0.17, matching analyst estimates, while revenue rose 5% year-over-year to $707 million, surpassing the consensus forecast of $699.86 million. Net revenue excluding advocacy business grew 10% compared to the same period last year.
"With 10% ex advocacy net revenue growth, Stagwell is taking share and building momentum across all key metrics this quarter," said Mark Penn, Chairman and CEO of Stagwell. "In Q2, we posted net new business of $117 million, strong performance at our Digital Transformation businesses, 26% growth among our Top 25 customers, and our first major Government win."
The company reported a net loss attributable to Stagwell Inc. common shareholders of $5 million, or $0.02 per share, compared to a loss of $3 million, or $0.03 per share, in the same quarter last year. Adjusted EBITDA increased 8% to $93 million, with adjusted EBITDA excluding advocacy growing 23% to $80 million.
Stagwell’s Integrated Agencies Network segment, its largest division, saw net revenue increase 7.2% to $344.9 million. The Communications Network segment grew 2.7% to $74.3 million, while the Brand Performance Network declined 1.4% to $154.9 million.
Chief Financial Officer Ryan Greene highlighted the company’s progress on key initiatives: "We have made significant progress on two key initiatives: improving our year-to-date cash flow from operations by $122 million versus the same period last year, and taking actions amounting to $20 million in annualized cost savings."
Stagwell reiterated its full-year 2025 guidance, projecting total net revenue growth of approximately 8%, adjusted EBITDA between $410 million and $460 million, and adjusted EPS of $0.75 to $0.88, in line with analyst consensus of $0.80.
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