Stagwell reported net revenues of $564 million, up 6% in the first quarter, versus the prior year period. Total gross revenue, including pass-through costs were down 3% for the period. The company said the results were in line with expectations. 

Excluding its political advocacy units—expected to be down 30% this year given the lack of a huge election year bump—net revenue was up 9% to $535 million. 

Unlike its competitors, the company is no longer providing quarter-by-quarter breakouts of organic revenue growth, which excludes the impact of M&A and currency fluctuations, and which is considered a key metric reflecting overall industry health. CEO Mark Penn stated earlier this year that organic revenue alone does not present a true picture of the firm’s growth given its ongoing and aggressive M&A program. 

But earlier in the year, by way of “transitioning” to the new reporting policy, Stagwell did say it expected to achieve full-year organic growth this year of between 5.5% to 7.5%  with double-digit growth in the company’s digital transformation business. That organic growth outlook excludes the firm’s advocacy units. 

The company maintained its full-year outlook for total net revenue growth of approximately 8%.  

In Q1 the company’s net loss attributable to common shareholders widened to $3 million versus $1 million in Q1 2024. 

The company posted record net new business (estimated annualized revenues from new business wins less estimated revenues from client losses) of $130 million for the quarter. 

Company CEO Mark Penn said the quarter was “led by double-digit increases in our Digital Transformation, Creativity and Stagwell Marketing Cloud capabilities.”