Stagwell Inc (STGW) Form 10-Q — Oct 29, 2026
Stagwell's Q3 2026 revenue rose 9.8% year over year to $816.0 million, with organic net revenue growth of 7.4% led by The Marketing Cloud (+108.4%) and Digital Transformation (+23.1%). Adjusted EBITDA climbed 24.9% to $144.8 million. However, GAAP profitability deteriorated: operating income fell 21.1% to $48.1 million on sharply higher stock-based compensation and deferred acquisition consideration adjustments, and the company remains in a nine-month net loss of $(4.3) million. The Q3 effective tax rate also jumped to 37.7%.
Key figures
- Eps
- Q3 diluted $0.07; nine-month basic and diluted $(0.01)
- Revenue
- 816027000
- Net Income
- Q3 net income $18.4M ($18.1M attributable to Stagwell); nine-month net loss $(4.3)M ($(2.970)M attributable)
- Total Debt
- 1414574000
- Revenue Yoy
- 9.8%
- Total Assets
- 4211442000
- Cash Position
- 132197000
- Deal Value Usd
- Freestar $50.0M ($30.0M stock / $20.0M cash) plus up to $60.0M contingent consideration; QStrauss $3.9M; Wavelength $10.2M
- Shares Outstanding
- 247973313
- Senior notes
- $1.1B 5.625% notes due August 15, 2029
- Adjusted ebitda q3
- $144.8M vs $116.0M prior year (+24.9%)
- Buyback program size
- $725.0M, $325.7M remaining as of September 30, 2026
- Effective tax rate q3
- 37.7% vs 28.7% prior year
- Free cash flow related
- Nine-month operating cash flow $152.3M vs $30.7M prior year
- Out of period adjustments
- $8.2M recorded, $6.0M impact on nine-month net loss
- Operating income change q3
- -21.1%
- Adjusted ebitda nine months
- $343.2M vs $292.6M prior year
- Organic net revenue growth q3
- 7.4%
AI analysis
Red flags4 · Pro
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.