When Stagwell issued its 2024 earnings release today, an important piece of guidance appeared to be missing: the company’s estimated net organic growth for 2025.  

Organic growth excludes the impact of M&A transactions and currency fluctuations. It’s a key metric used to assess industry health and most of the holding companies provide it, adjusting the outlook as needed throughout the year as circumstances dictate.  

But Stagwell’s omission wasn’t a mistake. Going forward the company is not issuing formal organic growth guidance. 

On a call with analysts earlier today, CEO Mark Penn explained the rationale. “It’s important to look not just at organic growth but at our total growth,” including M&A, he said, noting that the company is “aggressively adding new geographies and we are still a relative teenager on the way up the ladder of scale.” 

“We are guiding to total growth from now on,” he added, which for 2025 is 8%. 

That said, the firm is providing some “transitional” estimates. Penn said that the company’s advocacy business will be down 30% in 2025 after a huge election year bump in 2024.  

Excluding advocacy, organic growth in 2025 is expected to be in the 5.5% to 7.5% range with double-digit growth in the company’s digital transformation business. 

Tech company clients have emerged from a period of “efficiency,” said Penn and are now back in full competition mode as they promote various AI solutions. And all companies need to quickly adapt to the AI world with respect to advertising, website design and other areas, he added, asserting that Stagwell’s transition-focused agencies are poised to help and reap big gains.  

He said that Stagwell won 30% of the competitive RFP’s it participated in last year, a record year for new business. In 2025 the firm estimates it will participate in $1.5 billion (billings) worth of RFPs. That excludes government contracts, which Penn said he believes represents a huge opportunity for the company. 

Pictured above: Stagwell CFO Frank Lanuto and CEO Mark Penn on today's earnings call.