Document

EX-99.1 2 stgw2026930pr.htm EX-99.1 Document

FOR IMMEDIATE ISSUE

STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026

Q3 YoY Revenue Growth of 10% to $816 million; Q3 YoY Net Revenue Growth of 8% to $664 million

Q3 YoY Digital Transformation Organic Net Revenue Growth of 23%; Q3 YoY The Marketing Cloud Organic Net Revenue Growth of 108%; Enterprise Technology Products Contracted to Date of $59 million More Than Double Initial 2026 Goal

Q3 EPS of $0.07; Q3 Adjusted EPS Growth YoY of 42% to $0.34

Q3 Net Income Attributable to Stagwell Inc. Common Shareholders of $18 million; Q3 Adjusted EBITDA Growth YoY of 25% to $145 million

Year-to-Date Net Cash Provided by Operating Activities Increased 396% YoY to $152 million; Year-to-Date Free Cash Flow Increased 227% YoY to $52 million

Net New Business of $168 million in Q3; LTM Net New Business of $586 million

Largest Multi-Agency Deal in Stagwell History With ServiceNow; Secured First Major Federal Government Win; Expanded Partnership with Palantir

Raise Full-Year Adjusted EBITDA Guidance to $490 million to $540 million; Raise Full-Year Adjusted EPS Guidance to $1.07 to $1.21

New York, NY, October 29, 2026 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three and nine months ended September 30, 2026.

THIRD QUARTER RESULTS:

•Q3 Revenue of $816 million, an increase of 10% versus the prior year period; YTD Revenue of $2,306 million, an increase of 10%;

•Q3 Revenue increased 11% organically versus the prior year period; YTD Revenue increased 9% organically;

•Q3 Net Revenue of $664 million, an increase of 8% versus the prior year period; YTD Net Revenue of $1,880 million, an increase of 6%;

•Q3 Net Revenue increased 7% organically versus the prior year period; YTD Net Revenue increased 5% organically;

Page 1

•Q3 Digital Transformation Net Revenue of $119 million, an organic increase of 23% versus the prior year period;

•Two-Year Net Revenue Growth Stack for Digital Transformation of 38%, Two-Year Organic Net Revenue Growth Stack for Digital Transformation of 30%;

•Q3 The Marketing Cloud Net Revenue of $56 million, an organic increase of 108% versus the prior year period;

•YTD enterprise technology products contracted to date of $59 million, more than double initial FY26 target;

•Q3 Net Income attributable to Stagwell Inc. Common Shareholders of $18 million versus $25 million in the prior year period; YTD Net Loss attributable to Stagwell Inc. Common Shareholders of $3 million versus income of $16 million in the prior year period;

•Q3 Adjusted EBITDA of $145 million, an increase of 25% versus the prior year period; YTD Adjusted EBITDA of $343 million an increase of 17%;

•Q3 Adjusted EBITDA Margin of 22% on net revenue; YTD Adjusted EBITDA Margin of 18%;

•Q3 Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.07 versus $0.09; YTD Loss Per Share attributable to Stagwell Inc. Common Shareholders of $(0.01) versus Earnings Per Share of $0.04 in the prior year period;

•Q3 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.34 versus $0.24; YTD Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.77 versus $0.54 in the prior year period;

•YTD Net Cash provided by Operating Activities of $152 million versus $31 million in the prior year period;

•Net new business of $168 million in the third quarter, last twelve-month net new business of $586 million

See “Non-GAAP Financial Measures” below for explanations and reconciliations of the Company’s non-GAAP financial measures.

“This is the biggest quarter in Stagwell’s history. It shows we are on track to become number one in marketing transformation,” said Mark Penn, Chairman and CEO of Stagwell. “Software products, like our agentic Stagwell Machines, and the Digital Transformation segment are driving our business as we pivot from primarily marketing services to AI-powered marketing transformation. We have more than doubled our initial Enterprise Technology Bookings goal for the year, saw 23% organic net revenue growth in Digital Transformation, and 108% organic growth in The Marketing Cloud."

Ryan Greene, Chief Financial Officer, added: “The third quarter was Stagwell’s largest ever on virtually every metric. Organic net revenue for the company grew more than 7% year-over-year to $664 million, while our adjusted EBITDA grew 25% to $145 million, and our adjusted EPS grew 42% to $0.34. These improved earnings also contributed to a more than 400% increase in operating cash flow year to date. Net leverage now stands at 2.7x, a 0.7x improvement year-over-year, and our lowest ever third quarter ratio. Results through the first three quarters give us the confidence to raise our adjusted EBITDA and adjusted EPS guidance today.”

Financial Outlook

2026 financial guidance is updated as follows:

•Raise Adjusted EBITDA to $490 million to $540 million

Page 2

•Raise Adjusted EPS to $1.07 - $1.21

•Reiterate Total Net Revenue growth of 8% to 12%

•Reiterate Free Cash Flow Conversion of 50% to 60%

•Guidance includes anticipated impact from acquisitions or dispositions.




















* The Company has excluded a quantitative reconciliation with respect to the Company’s 2026 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" below for additional information.

Video Webcast

Management will host a video webcast on Thursday, October 29, 2026, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and nine months ended September 30, 2026. The video webcast will be accessible at https://edge.media-server.com/mmc/p/qudoyxam/. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.

A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.

Stagwell Inc.

Stagwell is the global challenger network transforming marketing through AI. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 40+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.

Contacts

For Investors:

Ben Allanson

IR@stagwellglobal.com

For Press:

Lena Petersen

PR@stagwellglobal.com

Non-GAAP Financial Measures

In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (“SEC”) defines as “non-GAAP Financial Measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following:

(1) Organic Net Revenue: “Organic net revenue growth (decline)” reflects the year-over-year change in the Company’s reported net revenue attributable to the Company’s management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company’s reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the

Page 3

Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate the impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s current period reported revenue as the impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present an amount equal to the entity’s current year net revenue for the same period during which we didn’t own the entity in the prior year as the impact of the acquisition in the current year. We calculate the impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.

(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.

(3) Adjusted EBITDA: is defined as Net income (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense, income tax expense or benefit, equity in income or loss of non-consolidated entities and net income or loss attributable to noncontrolling and redeemable noncontrolling interest holders to achieve Operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, impairment and other losses, and other items. Other items primarily include restructuring, certain system implementation costs, working capital administrative fees, acquisition-related expenses, and other non-recurring income and expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating income (loss), as Net income (loss) is not relevant for a reportable segment financial metric.

(4) Adjusted Diluted EPS: is defined as Adjusted Net Income (loss) attributable to Stagwell Inc. common and Class C shareholders, divided by the diluted weighted average shares outstanding. Adjusted Net Income represents net income (loss) attributable to Stagwell Inc. common and Class C shareholders, excluding amortization, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), allocated between the two share classes based on their respective income allocation percentages using a normalized effective tax rate. The diluted weighted average shares outstanding includes the diluted weighted average common shares outstanding plus Class C common stock, par value $0.00001 per share (the “Class C Common Stock”) as if converted to shares of Class A Common Stock if not included because they were anti-dilutive.

(5) Free Cash Flow: defined as consolidated net cash flow from operations less cash outflow from capital expenditures and capitalized software, excluding material nonrecurring capital purchases. Free Cash Flow Conversion is the percentage of adjusted EBITDA.

Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.

Page 4

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “ability,” “aim,” “anticipate,” “assume,” “believe,” “better,” “build,” “consider,” “continue,” “could,” “depend,” “develop, “drive,” “enhance,” “estimate,” “evaluate,” “expand,” “expect,” “focus,” “forecast,” “future,” “grow,” “guidance,” “illustrative,” “improve,” “intend,” “likely,” “maintain,” “may,” “objective,” “ongoing,” “opportunity,” “optimize,” “outlook,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “realize,” “remain,” “scenario,” “seek,” “should,” “strategy,” “sufficient,” “support,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.

Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:

•risks associated with international, national and regional unfavorable economic conditions, including the effect of changing tariffs and other trade policies, inflation and other macroeconomic factors that could affect the Company or its clients;

•demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;

•inflation and actions taken by central banks to address inflation, including changes in interest rates;

•the Company’s ability to attract new clients and retain existing clients;

•the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;

•financial failure of the Company’s clients;

•the Company’s ability to retain and attract key employees;

•the Company’s ability to compete in the markets in which it operates;

•the Company’s ability to achieve its cost saving initiatives;

•the Company’s implementation of strategic initiatives;

•the Company’s ability to remain in compliance with its debt agreements, and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests, deferred acquisition consideration and profit interests;

•the Company’s ability to manage its growth effectively;

•the Company’s ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company’s business capabilities and successfully integrate newly acquired businesses into the Company’s operations, retain key employees, and realize cost savings, synergies and other related anticipated benefits within the expected time period;

•the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;

•the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;

•the Company’s use of artificial intelligence, including generative artificial intelligence, and its ability to realize anticipated efficiencies and other benefits from its investments in artificial intelligence and automation technologies, and changes in client demand for artificial intelligence-related services;

•adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that recent or future changes in tax laws, potential changes to corporate tax rates in the

Page 5

United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs;

•adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material “emigration tax”);

•the Company’s ability to maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements, such as errors requiring out-of-period adjustments;

•the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;

•the Company’s ability to protect client data from security incidents or cyberattacks;

•economic disruptions resulting from war and other economic and geopolitical tensions (such as the ongoing military conflicts in Iran and the Middle East, and between Russia and Ukraine), terrorist activities, natural disasters, public health events, and tariff and trade policies, including the resulting effects on client marketing spend in affected regions;

•stock price volatility; and

•foreign currency fluctuations.

Investors should carefully consider these risks and the additional risk factors described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2026, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” in our subsequent Quarterly Reports on Form 10-Q and in the Company’s other SEC filings.

Page 6

SCHEDULE 1

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue	$	816,027	$	742,998	$	2,306,477	$	2,101,556
Operating expenses
Cost of services	511,698		470,937		1,488,293		1,342,240
Office and general expenses	206,942		166,422		611,323		528,845
Depreciation and amortization	48,300		44,260		136,395		127,635
Impairment and other losses	1,028		466		1,219		466
	767,968		682,085		2,237,230		1,999,186
Operating Income	48,059		60,913		69,247		102,370
Other income (expenses):
Interest expense, net	(23,993)		(25,196)		(69,587)		(72,007)
Foreign exchange, net	2,244		(366)		(172)		(484)


Other, net	2,526		(2,032)		3,394		(2,143)
	(19,223)		(27,594)		(66,365)		(74,634)
Income before income taxes and equity in earnings of non-consolidated affiliates	28,836		33,319		2,882		27,736
Income tax expense	10,882		9,555		7,646		13,950
Income (loss) before equity in earnings of non-consolidated affiliates	17,954		23,764		(4,764)		13,786
Equity in income (loss) of non-consolidated affiliates	442		(1)		512		18
Net income (loss)	18,396		23,763		(4,252)		13,804
Net (income) loss attributable to noncontrolling and redeemable noncontrolling interests	(277)		856		1,282		2,637
Net income (loss) attributable to Stagwell Inc. common shareholders	$	18,119	$	24,619	$	(2,970)	$	16,441
Earnings (loss) per common share:
Basic	$	0.07	$	0.10	$	(0.01)	$	0.08
Diluted	$	0.07	$	0.09	$	(0.01)	$	0.04
Weighted average number of common shares outstanding:
Basic	244,666		255,952		247,131		210,139
Diluted	250,989		259,583		247,131		266,773

Page 7

SCHEDULE 2

STAGWELL INC.

UNAUDITED COMPONENTS OF NET REVENUE CHANGE

(amounts in thousands)


			Net Revenue - Components of Change										Change
	Three Months Ended September 30, 2025		Foreign Currency		Net Acquisitions (Divestitures)		Organic (1)		Total Change		Three Months Ended September 30, 2026		Organic		Total

Marketing Services	$	239,961	$	(176)	$	(3,996)	$	(18,108)	$	(22,280)	$	217,681	(7.5)	%	(9.3)	%
Digital Transformation	96,111		(233)		599		22,182		22,548		118,659		23.1	%	23.5	%
Media & Commerce	162,542		(432)		—		(3,366)		(3,798)		158,744		(2.1)	%	(2.3)	%
Communications	96,631		72		7,657		19,324		27,053		123,684		20.0	%	28.0	%
The Marketing Cloud	26,571		304		—		28,808		29,112		55,683		108.4	%	109.6	%
Corporate, eliminations and other	(7,294)		12		—		(3,152)		(3,140)		(10,434)		43.2	%	43.0	%
	$	614,522	$	(453)	$	4,260	$	45,688	$	49,495	$	664,017	7.4	%	8.1	%

(1) See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue.

Page 8

SCHEDULE 3

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED COMPONENTS OF NET REVENUE CHANGE

(amounts in thousands)


			Net Revenue - Components of Change										Change
	Nine Months Ended September 30, 2025		Foreign Currency		Net Acquisitions (Divestitures)		Organic (1)		Total Change		Nine Months Ended September 30, 2026		Organic		Total

Marketing Services	$	692,760	$	3,086	$	(7,740)	$	(15,436)	$	(20,090)	$	672,670	(2.2)	%	(2.9)	%
Digital Transformation	277,091		(617)		3,826		45,734		48,943		326,034		16.5	%	17.7	%
Media & Commerce	459,911		1,855		4,185		(191)		5,849		465,760		—	%	1.3	%
Communications	285,447		1,041		10,271		36,114		47,426		332,873		12.7	%	16.6	%
The Marketing Cloud	77,364		2,863		—		30,576		33,439		110,803		39.5	%	43.2	%
Corporate, eliminations and other	(15,735)		(8)		—		(12,173)		(12,181)		(27,916)		77.4	%	77.4	%
	$	1,776,838	$	8,220	$	10,542	$	84,624	$	103,386	$	1,880,224	4.8	%	5.8	%

(1) See Non-GAAP Financial Measures section above for the definition of Organic Net Revenue.

Page 9

SCHEDULE 4

STAGWELL INC.

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Three Months Ended September 30, 2026


	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Corporate, Elimination and Other		Total
Revenue	$	255,445	$	127,176	$	176,857	$	210,913	$	55,825	$	(10,189)	$	816,027
Billable costs	37,764		8,517		18,113		87,229		142		245		152,010
Net revenue	217,681		118,659		158,744		123,684		55,683		(10,434)		664,017


Staff costs	126,795		73,620		95,403		59,939		16,572		13,288		385,617
Administrative costs	24,677		6,830		26,650		13,432		5,291		5,878		82,758
Unbillable and other costs, net	24,254		71		16,917		2,455		9,165		(2,056)		50,806
Adjusted EBITDA (1)	41,955		38,138		19,774		47,858		24,655		(27,544)		144,836

Stock-based compensation	11,717		3,675		1,230		4,221		400		7,677		28,920
Depreciation and amortization	11,841		6,256		8,601		6,925		5,995		8,682		48,300
Deferred acquisition consideration	—		3,433		1,216		3,013		13		—		7,675
Impairment and other losses	—		—		—		—		1,028		—		1,028
Other items, net (1)	3,161		318		3,712		701		986		1,976		10,854
Operating income (loss)	$	15,236	$	24,456	$	5,015	$	32,998	$	16,233	$	(45,879)	$	48,059

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.

Page 10

SCHEDULE 5

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Nine Months Ended September 30, 2026


	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Corporate, eliminations and other		Total
Revenue	$	786,650	$	349,756	$	534,561	$	552,767	$	110,963	$	(28,220)	$	2,306,477
Billable costs	113,980		23,722		68,801		219,894		160		(304)		426,253
Net revenue	672,670		326,034		465,760		332,873		110,803		(27,916)		1,880,224


Staff costs	390,338		208,901		291,338		178,086		51,460		30,062		1,150,185
Administrative costs	74,036		20,966		74,902		40,634		18,003		10,932		239,473
Unbillable and other costs, net	75,327		381		45,820		6,291		23,962		(4,423)		147,358
Adjusted EBITDA (1)	132,969		95,786		53,700		107,862		17,378		(64,487)		343,208

Stock-based compensation	24,649		8,368		2,871		9,131		906		15,810		61,735
Depreciation and amortization	36,749		18,011		24,319		19,972		18,945		18,399		136,395
Deferred acquisition consideration	(1,969)		13,535		9,854		4,773		573		—		26,766
Impairment and other losses	—		—		191		—		1,028		—		1,219
Other items, net (1)	9,085		1,938		11,692		4,205		1,686		19,240		47,846
Operating income (loss)	$	64,455	$	53,934	$	4,773	$	69,781	$	(5,760)	$	(117,936)	$	69,247

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.

Page 11

SCHEDULE 6

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Three Months Ended September 30, 2025


	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Corporate, eliminations and other		Total
Revenue	$	291,089	$	104,445	$	183,112	$	145,086	$	26,576	$	(7,310)	$	742,998
Billable costs	51,128		8,334		20,570		48,455		5		(16)		128,476
Net revenue	239,961		96,111		162,542		96,631		26,571		(7,294)		614,522


Staff costs	138,310		62,845		98,212		56,650		17,969		13,224		387,210
Administrative costs	26,835		6,981		24,225		12,516		3,068		(3,238)		70,387
Unbillable and other costs, net	17,187		401		15,554		2,344		6,898		(1,446)		40,938
Adjusted EBITDA (1)	57,629		25,884		24,551		25,121		(1,364)		(15,834)		115,987

Stock-based compensation	4,240		934		1,111		1,594		200		4,567		12,646
Depreciation and amortization	12,820		5,932		7,524		6,363		6,455		5,166		44,260
Deferred acquisition consideration	(500)		1,874		1,413		(3,716)		(12,419)		—		(13,348)
Impairment and other losses	—		—		—		222		244		—		466
Other items, net (1)	2,200		432		4,153		1,624		1,284		1,357		11,050
Operating income (loss)	$	38,869	$	16,712	$	10,350	$	19,034	$	2,872	$	(26,924)	$	60,913

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items.

Page 12

SCHEDULE 7

STAGWELL INC.

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Nine Months Ended September 30, 2025


	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Corporate, Elimination and Other		Total
Revenue	$	817,294	$	294,301	$	509,416	$	420,556	$	77,380	$	(17,391)	$	2,101,556
Billable costs	124,534		17,210		49,505		135,109		16		(1,656)		324,718
Net Revenue	692,760		277,091		459,911		285,447		77,364		(15,735)		1,776,838


Staff costs	401,036		186,972		291,228		172,273		52,001		33,232		1,136,742
Administrative costs	83,338		19,599		70,963		37,042		11,582		(4,301)		218,223
Unbillable and other costs, net	61,801		1,178		44,486		7,103		18,399		(3,665)		129,302
Adjusted EBITDA (1)	146,585		69,342		53,234		69,029		(4,618)		(41,001)		292,571

Stock-based compensation	14,832		3,081		3,302		6,760		541		15,627		44,143
Depreciation and amortization	39,556		17,250		22,211		19,349		17,436		11,833		127,635
Deferred acquisition consideration	(4,784)		7,729		2,942		(4,879)		(10,919)		—		(9,911)
Impairment and other losses	—		—		—		222		244		—		466
Other items, net (1)	3,133		1,493		11,210		3,686		2,609		5,737		27,868
Operating income (loss)	$	93,848	$	39,789	$	13,569	$	43,891	$	(14,529)	$	(74,198)	$	102,370

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.

Page 13

SCHEDULE 8

STAGWELL INC.

UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)

(amounts in thousands, except per share amounts)

For the Three Months Ended September 30, 2026


	GAAP		Adjustments (1)		Non-GAAP
Net income attributable to Stagwell Inc. common shareholders	$	18,119	$	67,859	$	85,978

Diluted - Weighted average number of shares outstanding	250,989		—		250,989

Diluted EPS and Adjusted Diluted EPS (1)	$	0.07			$	0.34


Adjustments to Net income
Amortization			$	42,884
Impairment and other losses			1,028
Stock-based compensation			28,920
Deferred acquisition consideration			7,675
Other items, net (2)			7,409
			87,916


Adjustment to GAAP income tax expense (3)			(20,057)
			$	67,859

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.

(2) Other items, net, primarily includes restructuring, certain system implementation costs, working capital administrative fees, acquisition-related expense, and other non-recurring expenses.

(3) Represents the difference between the income tax expense of $10.9 million at an effective tax rate of 37.7% on a GAAP basis and the income tax expense of $30.9 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.

Page 14

SCHEDULE 9

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)

(amounts in thousands, except per share amounts)

For the Nine Months Ended September 30, 2026


	GAAP		Adjustments (1)		Non-GAAP
Net (loss) income attributable to Stagwell Inc. common shareholders	$	(2,970)	$	193,633	$	190,663



Diluted - Weighted average number of common shares outstanding	247,131		—		247,131




Diluted EPS and Adjusted Diluted EPS (1)	$	(0.01)			$	0.77


Adjustments to Net (loss) income

Amortization			$	119,962
Impairment and other losses			1,219
Stock-based compensation			61,735
Deferred acquisition consideration			26,766

Other items, net (2)			44,401
			254,083
Adjustment to GAAP income tax expense (3)			(60,450)
			$	193,633

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.

(2) Other items, net, primarily includes restructuring, certain system implementation costs, working capital administrative fees, acquisition-related expense, and other non-recurring expenses.

(3) Represents the difference between the income tax expense of $7.6 million at an effective tax rate of 265.3% on a GAAP basis and the income tax expense of $68.1 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.

Page 15

SCHEDULE 10

STAGWELL INC.

UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)

(amounts in thousands, except per share amounts)

For the Three Months Ended September 30, 2025


	GAAP		Adjustments (1)		Non-GAAP
Net income attributable to Stagwell Inc. common shareholders	$	24,619	$	38,575	$	63,194



Diluted - Weighted average number of common shares outstanding	259,583		—		259,583




Diluted EPS and Adjusted Diluted EPS (1)	$	0.09			$	0.24

Adjustments to Net income
Amortization			$	38,707
Impairment and other losses			466
Stock-based compensation			12,646
Deferred acquisition consideration			(13,348)

Other items, net (2)			13,333
			51,804
Adjustment to GAAP income tax expense (3)			(13,229)
			38,575

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.

(2) Other items, net, primarily includes restructuring, certain system implementation costs, working capital administrative fees, acquisition-related expense, and other non-recurring expenses.

(3) Represents the difference between the income tax expense of $9.6 million at an effective tax rate of 28.7% on a GAAP basis and the income tax expense of $22.8 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.

Page 16

SCHEDULE 11

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)

(amounts in thousands, except per share amounts)

For the Nine Months Ended September 30, 2025


	GAAP		Adjustments (1)		Non-GAAP
Net income attributable to Stagwell Inc. common shareholders	$	16,441	$	134,175	$	150,616
Net loss attributable to Class C shareholders	(6,637)		—		(6,637)
Net income attributable to Stagwell Inc. and Class C shareholders and adjusted net income	$	9,804	$	134,175	$	143,979

Diluted - Weighted average number of common shares outstanding	214,557		—		214,557
Weighted average number of shares of Class C Common Stock outstanding	52,216		—		52,216
Diluted - Weighted average number of shares outstanding	266,773		—		266,773


Diluted EPS and Adjusted Diluted EPS (1)	$	0.04			$	0.54


Adjustments to Net income

Amortization			$	107,281
Impairment and other losses			466
Stock-based compensation			44,143
Deferred acquisition consideration			(9,911)

Other items, net (2)			30,151
			172,130
Adjustment to GAAP income tax expense (3)			(37,955)


			$	134,175

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted Diluted EPS.

(2) Other items, net, primarily includes restructuring, certain system implementation costs, working capital administrative fees, acquisition-related expense, and other non-recurring expenses.

(3) Represents the difference between the income tax expense of $14.0 million at an effective tax rate of 50.3% on a GAAP basis and the income tax expense of $51.9 million at an effective tax rate of 26.5% on a non-GAAP basis. The difference reflects the tax impact of non-GAAP adjustments.

Page 17

SCHEDULE 12

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)


	September 30, 2026		December 31, 2025

ASSETS
Current Assets
Cash and cash equivalents	$	132,197	$	104,537
Accounts receivable, net	772,787		735,752
Expenditures billable to clients	144,015		164,694
Other current assets	174,932		157,309
Total Current Assets	1,223,931		1,162,292
Fixed assets, net	70,083		73,081
Right-of-use assets - operating leases	189,243		213,576
Goodwill	1,598,491		1,595,238
Other intangible assets, net	795,689		834,248
Deferred tax assets	280,193		281,057
Other assets	53,812		55,055
Total Assets	$	4,211,442	$	4,214,547
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS ("RNCI"), AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	489,376	$	548,320
Accrued media	228,612		239,490
Accruals and other liabilities	330,142		291,554
Advance billings	365,529		329,815
Current portion of lease liabilities - operating leases	55,073		55,386
Current portion of deferred acquisition consideration	42,871		15,446
Total Current Liabilities	1,511,603		1,480,011
Long-term debt	1,414,574		1,326,013
Long-term portion of deferred acquisition consideration	21,494		24,598
Long-term lease liabilities - operating leases	195,482		224,397
Deferred tax liabilities	53,899		54,726
Long-term tax receivable agreement liability	252,390		252,390
Other liabilities	30,456		51,077
Total Liabilities	3,479,898		3,413,212
Redeemable Noncontrolling Interests	21,247		24,968
Commitments, contingencies and guarantees
Shareholders' Equity
Common shares - Class A	245		252


Paid-in capital	697,402		744,463
Retained earnings	31,203		32,930
Accumulated other comprehensive loss	(34,787)		(19,252)
Stagwell Inc. Shareholders' Equity	694,063		758,393
Noncontrolling interests	16,234		17,974
Total Shareholders' Equity	710,297		776,367
Total liabilities, RNCI, and shareholders’ equity	$	4,211,442	$	4,214,547

Page 18

SCHEDULE 13

STAGWELL INC. AND SUBSIDIARIES

UNAUDITED SUMMARY CASH FLOW DATA

(amounts in thousands)


	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities:
Net (loss) income	$	(4,252)	$	13,804
Adjustments to reconcile net loss to cash provided by operating activities:
Stock-based compensation	61,735		44,143
Depreciation and amortization	136,395		127,635
Amortization of right-of-use lease assets and lease liability interest	47,471		51,208
Impairment and other (gains) losses	(2,226)		(3,063)
Deferred income taxes	476		3,216
Adjustment to deferred acquisition consideration	26,766		(9,911)


Other, net	2,280		1,319
Changes in working capital:
Accounts receivable	(51,575)		(3,477)
Expenditures billable to clients	20,723		26,266
Other current assets	(22,408)		(53,377)
Accounts payable	(50,059)		(57,306)
Accrued expenses and other liabilities	5,297		(117,118)
Advance billings	35,360		67,964
Current portion of lease liabilities - operating leases	(52,254)		(59,414)
Deferred acquisition related payments	(1,450)		(1,176)
Net cash provided by operating activities	152,279		30,713
Cash flows from investing activities:
Capitalized software	(75,855)		(45,315)
Capital expenditures	(27,405)		(26,338)
Acquisitions, net of cash acquired	(6,347)		(6,179)

Other	(4,303)		(2,927)
Net cash used in investing activities	(113,910)		(80,759)
Cash flows from financing activities:
Repayment of borrowings under revolving credit facility	(1,533,426)		(1,412,000)
Proceeds from borrowings under revolving credit facility	1,619,780		1,586,326
Shares repurchased and cancelled	(90,716)		(105,183)
Distributions to noncontrolling interests and RNCI	(3,903)		(5,018)
Payment of deferred consideration	(337)		(16,103)

Purchase of noncontrolling interest	(450)		—
Tax Receivables Agreement payment	(2,554)		—
Debt financing and other costs	—		(3,795)




Net cash (used in) provided by financing activities	(11,606)		44,227
Effect of exchange rate changes on cash and cash equivalents	897		6,718
Net increase in cash and cash equivalents	27,660		899
Cash and cash equivalents at beginning of period	104,537		131,339
Cash and cash equivalents at end of period	$	132,197	$	132,238

Page 19