The beat-and-raise quarter with accelerating organic growth in Digital Transformation and record new business wins supports a positive re-rating. Monitor the H2 political cycle ramp in Communications and continued share repurchases as catalysts. The reiterated EBITDA and revenue guidance suggests management sees sustainable momentum.
Price Chart
Executive Summary
Stagwell reported Q2 2026 revenue of $786M (+11% YoY) and adjusted EPS of $0.25 (+39% YoY), beating consensus estimates of $0.19. The company raised its full-year adjusted EPS guidance to $1.03-$1.17 from $0.98-$1.12, while reiterating net revenue growth of 8%-12% and adjusted EBITDA of $475M-$525M. Record net new business of $171M and accelerating Digital Transformation organic net revenue growth of 18% signal strong operational momentum.
Key Financial Metrics
Key Facts
- Q2 revenue $786M, +11% YoY; net revenue $632M, +6% YoY
- Q2 adjusted EPS $0.25 vs consensus $0.19 (29% beat), +39% YoY
- Raised FY2026 adjusted EPS guidance to $1.03-$1.17 from $0.98-$1.12
- Record Q2 net new business of $171M; LTM net new business $540M
- Digital Transformation organic net revenue growth of 18% YoY
- Adjusted EBITDA $109M, +15% YoY; margin 17.2% vs 15.8% prior year
- Repurchased 6M shares in Q2; share count down ~17M vs June 2025
- Net leverage ratio 3.0x; available liquidity $483M
Financial Impact
Q2 revenue $786M, adjusted EPS $0.25; FY guidance raised by $0.05-$0.05 on adjusted EPS
Risk Factors
- GAAP net loss widened to $8.1M from $5.3M YoY due to higher stock-based comp and other items
- Rest of World net revenue declined 7.9% organically in Q2
- Long-term debt increased to $1.45B from $1.33B at year-end 2025
- Free cash flow conversion target of 50%-60% remains to be demonstrated in H2
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000876883-26-000023 |
| Document: a2q26earningspresentatio.htm | 0000876883-26-000023 |
| Document: stgw-20260730.htm | 0000876883-26-000023 |
| Document: 0000876883-26-000023-index-headers.html | 0000876883-26-000023 |
| Document: 0000876883-26-000023-index.html | 0000876883-26-000023 |
| Document: 0000876883-26-000023.txt | 0000876883-26-000023 |
| 8-K Data (Synthetic) | 0000876883-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 22d ago | 8-K | $8.50 | awaiting T+60 | — | $8.85 (+4.12%) |
Jul 30, 2026 12w ago | 8-K | $8.49 $8.98 | ▲ +5.77% | ▲ +3.31% | $8.85 (+4.24%) |
Apr 30, 2026 25w ago | 8-K | $6.27 $7.73 | ▲ +23.29% | ▲ +20.18% | $8.85 (+41.15%) |
US Market Status
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