Stagwell Raises 2026 Adjusted EBITDA Outlook

The Tip Desk · October 31, 2026 · 2 min read

Third-quarter revenue reached $816 million and the company lifted full-year adjusted EBITDA guidance to $490 million to $540 million.

Stagwell Inc. (STGW), the global marketing network, reported third-quarter revenue of $816 million, up 10% from a year earlier, and raised its full-year 2026 adjusted EBITDA outlook to $490 million to $540 million.

The company also lifted adjusted earnings-per-share guidance to $1.07 to $1.21, after raising that range to $1.03 to $1.17 in July. It reiterated full-year total net revenue growth of 8% to 12% and free cash flow conversion of 50% to 60%.

Net revenue was $664 million, an 8% increase from the year-ago quarter and 7% organically. Organic net revenue growth had been 5% in the second quarter, while first-quarter net revenue growth was 4%.

Adjusted EBITDA was $145 million, up 25% from a year earlier, after 15% growth in the second quarter and 9% in the first. The adjusted EBITDA margin on net revenue was 22%, versus 17% in the second quarter and 15% in the first.

Net income attributable to common shareholders was $18 million, or $0.07 a share, versus $25 million, or $0.09 a share, a year earlier. Adjusted EPS was $0.34, up 42% from a year earlier.

Digital Transformation net revenue was $119 million, an organic increase of 23% from a year earlier, after 18% organic growth in the second quarter and 9% net revenue growth in the first. The two-year organic net revenue growth stack for the segment was 30%. The Marketing Cloud net revenue was $56 million, an organic increase of 108%.

Marketing Services net revenue declined 7.5% organically to $218 million. Media & Commerce net revenue declined 2.1% organically to $159 million. Communications net revenue rose 20.0% organically to $124 million.

Net new business was $168 million in the third quarter. Last-twelve-month net new business was $586 million.

For the nine months ended September 30, 2026, net cash provided by operating activities was $152 million, versus $31 million a year earlier. Year-to-date free cash flow was $52 million.

Chief Financial Officer Ryan Greene said net leverage stood at 2.7 times, a 0.7 times improvement year over year and the company’s lowest ever third-quarter ratio.

Chairman and Chief Executive Officer Mark Penn said software products, including agentic Stagwell Machines, and the Digital Transformation segment were driving the business as the company pivots from primarily marketing services to AI-powered marketing transformation.

Stagwell said it closed the largest multi-agency deal in its history with ServiceNow, secured a first major federal government win, and expanded a partnership with Palantir. Enterprise technology products contracted to date were $59 million, more than double the initial 2026 goal.

Guidance includes the anticipated impact from acquisitions or dispositions.