Stagwell Returns To Growth In The First Quarter


Stagwell reported a 2% net revenue increase for the first quarter to $532 million with a net organic revenue gain of 2%. The growth was led by a 54% gain in its advocacy operations. 

The results put Stagwell back in growth mode after losing ground in 2023 with a 5.9% organic decline including a drop of 6.7% in Q4. Organic revenue growth excludes the impact of M&A activity and currency fluctuations. 



The company reiterated its growth outlook for the full year including organic net revenue growth of 5% to 7%. Excluding advocacy growth related to the election year cycle, growth will be in the 4% to 5% range. The company expects to generate pre-tax earnings of $400 million to $450 million.  

Stagwell reported net new business wins of $66 million (projected revenue) in Q1 with net new wins in the last 12 months of $284 million. 

CEO Mark Penn said growth this year will be led by double-digit gains in performance media and data capabilities along with tailwinds in record new business and “growth in advertising generally.”  

In addition to a “strong advocacy season,” Penn predicted that the firm will see growth in “AI-related digital transformation assignments building in the second half of the year.” The firm’s ongoing international expansion is also expected to contribute to growth this year, Penn said.  


Next story loading loading..