Stagwell Posts $130 Million in Net New Business in Q1 Despite Revenue Dip

Stagwell has reported its financial results for the first quarter of 2025, showing a mixed performance marked by strong new business momentum and growth in core service areas, despite a dip in overall revenue and macroeconomic headwinds such as tariffs.

The company posted $130 million in net new business during the quarter - nearly double the figure from the same period last year. New client wins included PayPal, Panera, CarMax, Celsius, and Hyatt. Stagwell also announced the acquisition of JetFuel, a move that expands its capabilities in retail and shopper marketing, digital activations, and live brand experiences.

First-quarter revenue fell 3% year-over-year to $652 million. However, net revenue - which excludes certain pass-through costs - rose 6% to $564 million, and was up 9% when excluding its advocacy business, which tends to fluctuate based on the political calendar. Growth was led by double-digit increases in the company’s digital transformation, creative, and Stagwell Marketing Cloud offerings.

Adjusted EBITDA came in at $81 million, down 11% from the same quarter last year, with an EBITDA margin of 14%. The company posted a net loss of $3 million, or $0.04 per share, while adjusted earnings per share were $0.12.

Chairman and CEO Mark Penn said, "Despite the macro noise from tariffs, Stagwell’s first quarter results were in-line with our expectations, setting us up for a strong year ahead. Q1 is a low point in the political cycle and yet we delivered solid growth in the quarter, led by double-digit increases in our Digital Transformation, Creativity and Stagwell Marketing Cloud capabilities. We hit a record $130 million of net new business and, consequently, we remain optimistic about our outlook for the rest of the year."

Chief financial officer Frank Lanuto added, “Stagwell delivered solid first quarter results. We reported 9% total net revenue growth excluding advocacy, while posting $81 million in adjusted EBITDA as we effectively managed costs. Additionally, we have made significant progress in simplifying our capital structure and refinancing our revolving credit facility. Our results and these actions position us well for the year ahead.”

The company reiterated its full-year 2025 guidance, projecting approximately 8% total net revenue growth, adjusted EBITDA between $410 million and $460 million, and free cash flow conversion exceeding 45%.