Stagwell Inc. (NASDAQ:STGW) Posts Mixed Q2 2025 Results as Market Shows Optimism

Stagwell Inc. (NASDAQ:STGW) Reports Mixed Q2 2025 Results, Market Reacts Positively

Stagwell Inc. released its second-quarter earnings for 2025, revealing a mixed performance relative to analyst expectations. While revenue narrowly missed estimates, earnings per share (EPS) slightly exceeded projections, and the market responded with a modest uptick in pre-market trading.

Key Earnings Highlights

• Revenue: Reported at $706.8 million, falling just short of the consensus estimate of $707.6 million.
• EPS: Came in at $0.17, slightly above the estimated $0.1661.
• Year-over-Year Growth:
  • Total revenue increased 5% YoY.
  • Net revenue (excluding pass-through costs) rose 8% YoY.
  • Excluding advocacy revenue, net revenue growth was stronger at 10%, with digital transformation net revenue climbing 12%.

The company’s performance suggests resilience in its core digital and performance media segments, offsetting potential softness in advocacy-related revenue.

Market Reaction

Following the earnings release, STGW shares saw a 2.13% increase in pre-market trading, indicating investor optimism despite the slight revenue miss. Over the past month, the stock has gained 12.9%, though it remains nearly flat (-0.015%) over the past week. The positive pre-market movement suggests that investors are focusing on the earnings beat and strong underlying growth in key business segments rather than the marginal revenue shortfall.

Forward-Looking Estimates

Analysts project the following for Stagwell:

• Q3 2025 Revenue Estimate: $751.3 million
• Full-Year 2025 Revenue Estimate: $2.98 billion
• Full-Year 2025 EPS Estimate: $0.791

The company did not provide explicit guidance in its press release, making it difficult to assess whether these estimates align with management’s internal expectations. However, the sustained growth in digital transformation and performance media suggests that Stagwell may remain on track to meet or exceed full-year forecasts.

Press Release Takeaways

The earnings announcement emphasized:

• Continued expansion in high-margin digital services.
• Strong performance in net revenue, particularly when excluding advocacy-related business.
• No major operational disruptions or downward revisions to outlook.

For a deeper dive into Stagwell’s earnings history and future estimates, visit the earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.