Technology

STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024

Published

1 year ago

February 27, 2025

Q4 YoY Revenue Growth of 20%, With 22% Growth in Digital Transformation

Q4 YoY Net Revenue Growth of 14%, Organic Net Revenue Growth of 10%, Digital Transformation Net Revenue Growth of 15%

Q4 Net Income Attributable to Stagwell Inc. Common Shareholders of $3 million

Q4 Adjusted EBITDA of $123 million; Adjusted EBITDA Margin of 20%

Q4 EPS of $0.03; Adjusted EPS of $0.24

Eighth Consecutive Quarter of Record LTM Net New Business

Net New Business of $102 million in Q4; LTM Net New Business of $382 million

Introduce Guidance for 2025 of Total Net Revenue Growth of ~8%; Adjusted EBITDA of $410 million to $460 million; Free Cash Flow Conversion in excess of 45%

Stagwell To Host Investor Day on April 2nd 2025

NEW YORK, Feb. 27, 2025 /PRNewswire/ — (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the quarter and year ended December 31, 2024.

FOURTH QUARTER RESULTS:

Q4 Revenue of $789 million, an increase of 20% versus the prior year period; Full Year Revenue of $2.8 billion, an increase of 12% versus the prior yearQ4 Net Revenue of $630 million, an increase of 14% versus the prior year period; Full Year Net Revenue of $2.3 billion, an increase of 7% versus the prior yearQ4 Organic Net Revenue increased 10% versus the prior year period; Full Year Organic Net Revenue increased 5% versus the prior yearQ4 Net Income attributable to Stagwell Inc. Common Shareholders of $3 million versus $1 million in the prior year period; Full Year Net Income attributable to Stagwell Inc. Common Shareholders of $2 million versus $0.1 million in the prior yearQ4 Adjusted EBITDA of $123 million, an increase of 30% versus the prior year period; Full Year Adjusted EBITDA of $411 million, an increase of 14% versus the prior yearQ4 Adjusted EBITDA Margin of 20% on net revenue; Full Year Adjusted EBITDA Margin of 18% on net revenueQ4 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.03 versus $0.00 in the prior year period; Full Year Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.02 versus $0.00 in the prior yearQ4 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.24 versus $0.12 in the prior year period; Full Year Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.77 versus $0.57 in the prior yearNet new business of $102 million in the fourth quarter, last twelve-month net new business of $382 million

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

Mark Penn, Chairman and CEO of Stagwell, said, “2024 was a breakthrough year for Stagwell and has fueled a strong start to 2025. We re-established ourselves as the fastest growing business in the industry, accelerated rapidly in Digital Transformation, took advantage of an unprecedented U.S. election cycle, and made strategic investments to expand our capabilities and geographical reach. I’m looking forward to a strong 2025.”

Frank Lanuto, Chief Financial Officer, commented: “Stagwell posted strong results in the fourth quarter with double-digit revenue growth in 4 of our 5 principal capabilities. We delivered fourth quarter revenue of $789 million. Simultaneously, we grew our adjusted EBITDA to $123 million, representing a 20% margin on net revenue, an improvement of approximately 230 bps over the prior year period, as we lowered our comp to revenue ratio to 57.5%, a company record. These results give us confidence in the year ahead.”

Financial Outlook

2025 financial guidance is announced as follows:

Total Net Revenue growth of approximately 8%Adjusted EBITDA of $410 million to $460 millionFree Cash Flow Conversion in excess of 45%Adjusted EPS of $0.75 – $0.88Guidance includes anticipated impact from acquisitions or dispositions.

* The Company has excluded a quantitative reconciliation with respect to the Company’s 2025 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, February 27, 2025, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the quarter and year ended December 31, 2024. The video webcast will be accessible at https://bit.ly/3EVAIAk. 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 challenger network built to transform marketing. 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 their clients. Join us at www.stagwellglobal.com.

Contacts

For Investors:
Ben Allanson
IR@stagwellglobal.com

For Press:
Beth Sidhu
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” and “Organic net revenue 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 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 impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity’s prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate 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: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.

(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.

(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. 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.

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,” “build,” “consider,” “continue,” “could,” “create,” “develop,” “drive,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “in development,” “intend,” “likely,” “look,” “maintain,” “may,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “project,” “should,” “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 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 counter inflation;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 and deferred acquisition consideration;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 expected 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;adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that future changes in tax laws, potential increases to corporate tax rates in the 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 establish and 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;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 geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in the Middle East), terrorist activities, natural disasters, and public health events;stock price volatility; andforeign currency fluctuations.

Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2023 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2024, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.

SCHEDULE 1

STAGWELL INC.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share amounts)

Three Months Ended
December 31,

Year Ended
December 31,

2024

2023

2024

2023

Revenue

$ 788,708

$ 654,895

$ 2,841,216

$ 2,527,177

Operating Expenses

Cost of services

502,522

419,865

1,842,978

1,621,174

Office and general expenses

203,887

179,871

711,803

661,250

Depreciation and amortization

38,771

35,036

151,652

142,831

Impairment and other losses

—

833

1,715

11,395

745,180

635,605

2,708,148

2,436,650

Operating Income

43,528

19,290

133,068

90,527

Other income (expenses):

Interest expense, net

(24,038)

(22,889)

(92,317)

(90,644)

Foreign exchange, net

645

(672)

(1,656)

(2,960)

Gain on sale of business

—

94,505

—

94,505

Other, net

(547)

108

(1,372)

(359)

(23,940)

71,052

(95,345)

542

Income before income taxes and equity in earnings of non-consolidated affiliates

19,588

90,342

37,723

91,069

Income tax expense

3,741

35,560

13,182

40,557

Income before equity in earnings of non-consolidated affiliates

15,847

54,782

24,541

50,512

Equity in income (loss) of non-consolidated affiliates

—

(8,423)

503

(8,870)

Net income

15,847

46,359

25,044

41,642

Net income attributable to noncontrolling and redeemable noncontrolling interests

(12,612)

(45,073)

(22,785)

(41,508)

Net income attributable to Stagwell Inc. common shareholders

$ 3,235

$ 1,286

$ 2,259

$ 134

Earnings Per Common Share:

Basic

$ 0.03

$ 0.01

$ 0.02

$ —

Diluted

$ 0.03

$ —

$ 0.02

$ —

Weighted Average Number of Common Shares Outstanding:

Basic

109,266

112,769

110,890

117,259

Diluted

115,147

119,621

115,752

122,170

SCHEDULE 2

STAGWELL INC.

UNAUDITED COMPONENTS OF NET REVENUE CHANGE

(amounts in thousands)

Net Revenue – Components of Change

Change

Three Months
Ended
December 31,
2023

Foreign
Currency

Net
Acquisitions
(Divestitures)

Organic

Total Change

Three Months
Ended
December 31,
2024

Organic

Total

Integrated Agencies Network

$ 302,137

$ 25

$ 4,800

$ 27,405

$ 32,230

$ 334,367

9.1 %

10.7 %

Brand Performance Network

168,519

—

6,046

6,121

174,640

3.6 %

Communications Network

68,229

15,757

23,666

39,465

107,694

34.7 %

57.8 %

All Other

12,181

(161)

2,950

(2,048)

741

12,922

(16.8) %

6.1 %

$ 551,066

$ (19)

$ 23,507

$ 55,069

$ 78,557

$ 629,623

10.0 %

14.3 %

Net Revenue – Components of Change

Change

Year Ended
December 31,
2023

Foreign
Currency

Net
Acquisitions
(Divestitures)

Organic

Total Change

Year Ended
December 31,
2024

Organic

Total

Integrated Agencies Network

$ 1,232,798

$ 226

$ 7,208

$ 32,521

$ 39,955

$ 1,272,753

2.6 %

3.2 %

Brand Performance Network

627,810

2,220

2,252

18,948

$ 23,420

651,230

3.0 %

3.7 %

Communications Network

245,261

(28)

22,177

$ 66,385

$ 88,534

333,795

27.1 %

36.1 %

All Other

46,585

(984)

(609)

(6,108)

(7,701)

38,884

(13.1) %

(16.5) %

$ 2,152,454

$ 1,434

$ 31,028

$ 111,746

$ 144,208

$ 2,296,662

5.2 %

6.7 %

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

Note: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments.

SCHEDULE 3

STAGWELL INC.

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Three Months Ended December 31, 2024

Integrated
Agencies
Network

Brand
Performance
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$ 334,367

$ 174,640

$ 107,694

$ 12,922

$ —

$ 629,623

Billable costs

73,558

13,688

72,150

(311)

—

159,085

Revenue

407,925

188,328

179,844

12,611

—

788,708

Billable costs

73,558

13,688

72,150

(311)

—

159,085

Staff costs

212,062

100,890

54,590

10,364

12,315

390,221

Administrative costs

32,857

23,959

10,940

2,692

5,006

75,454

Unbillable and other costs, net

16,455

19,224

965

4,105

—

40,749

Adjusted EBITDA (1)

72,993

30,567

41,199

(4,239)

(17,321)

123,199

Stock-based compensation

2,083

1,989

643

175

8,345

13,235

Depreciation and amortization

19,345

8,071

5,119

2,780

3,456

38,771

Deferred acquisition consideration

7,600

(1,290)

9,673

(938)

—

15,045

Other items, net (1)

7,388

3,173

1,146

185

728

12,620

Operating income (loss)

$ 36,577

$ 18,624

$ 24,618

$ (6,441)

$ (29,850)

$ 43,528

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

SCHEDULE 4

STAGWELL INC.

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Year Ended December 31, 2024

Integrated
Agencies
Network

Brand
Performance
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$ 1,272,753

$ 651,230

$ 333,795

$ 38,884

$ —

$ 2,296,662

Billable costs

262,692

100,654

181,345

(137)

—

544,554

Revenue

1,535,445

751,884

515,140

38,747

—

2,841,216

Billable costs

262,692

100,654

181,345

(137)

—

544,554

Staff costs

792,041

397,301

177,629

34,999

47,736

1,449,706

Administrative costs

128,954

93,155

37,057

6,139

16,402

281,707

Unbillable and other costs, net

72,756

65,901

2,235

13,570

—

154,462

Adjusted EBITDA (1)

279,002

94,873

116,874

(15,824)

(64,138)

410,787

Stock-based compensation

27,253

6,977

3,374

904

13,653

52,161

Depreciation and amortization

78,076

34,595

14,126

12,718

12,137

151,652

Deferred acquisition consideration

13,290

(7,744)

18,770

(1,321)

—

22,995

Impairment and other losses

1,500

—

215

1,715

Other items, net (1)

20,592

19,536

3,250

887

4,931

49,196

Operating income (loss)

$ 138,291

$ 41,509

$ 77,354

$ (29,012)

$ (95,074)

$ 133,068

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

SCHEDULE 5

STAGWELL INC.

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Three Months Ended December 31, 2023

Integrated
Agencies
Network

Brand
Performance
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$ 302,137

$ 168,519

$ 68,229

$ 12,181

$ —

$ 551,066

Billable costs

51,665

16,921

35,217

—

103,829

Revenue

353,802

185,440

103,446

12,207

—

654,895

Billable costs

51,665

16,921

35,217

—

103,829

Staff costs

195,953

97,871

43,319

6,292

11,088

354,523

Administrative costs

29,618

23,174

8,568

3,445

(1,871)

62,934

Unbillable and other costs, net

18,111

17,357

277

2,885

—

38,630

Adjusted EBITDA (1)

58,456

30,117

16,065

(441)

(9,217)

94,980

Stock-based compensation

12,015

2,364

1,157

6,937

22,564

Depreciation and amortization

19,680

8,090

2,800

2,238

2,228

35,036

Deferred acquisition consideration

3,813

1,739

(3,373)

—

2,179

Impairment and other losses

737

—

833

Other items, net (1)

6,403

3,713

198

4,669

15,078

Operating income (loss)

$ 15,808

$ 14,115

$ 15,283

$ (2,865)

$ (23,051)

$ 19,290

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

SCHEDULE 6

STAGWELL INC.

UNAUDITED SEGMENT OPERATING RESULTS

(amounts in thousands)

For the Year Ended December 31, 2023

Integrated
Agencies
Network

Brand
Performance
Network

Communications
Network

All Other

Corporate

Total

Net Revenue

$ 1,232,798

$ 627,810

$ 245,261

$ 46,585

$ —

$ 2,152,454

Billable costs

185,913

100,364

88,446

—

374,723

Revenue

1,418,711

728,174

333,707

46,585

—

2,527,177

Billable costs

185,913

100,364

88,446

—

374,723

Staff costs

768,846

386,803

159,165

37,416

36,938

1,389,168

Administrative costs

122,618

87,337

33,664

4,689

11,472

259,780

Unbillable and other costs, net

71,776

55,891

613

15,087

—

143,367

Adjusted EBITDA (1)

269,558

97,779

51,819

(10,607)

(48,410)

360,139

Stock-based compensation

27,485

6,204

3,334

518

19,638

57,179

Depreciation and amortization

81,957

33,250

11,016

8,390

8,218

142,831

Deferred acquisition consideration

11,931

2,851

(1,752)

—

13,060

Impairment and other losses

11,299

—

11,395

Other items, net (1)

20,225

12,206

1,535

1,174

10,007

45,147

Operating income (loss)

$ 116,661

$ 43,172

$ 35,904

$ (18,937)

$ (86,273)

$ 90,527

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

SCHEDULE 7

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 December 31, 2024

GAAP

Adjustments

Non-GAAP

Net income attributable to Stagwell Inc. common shareholders

$ 3,235

$ 22,226

$ 25,461

Net income attributable to Class C shareholders

—

40,500

Net income attributable to Stagwell Inc. and Class C shareholders and adjusted net income

$ 3,235

$ 62,726

$ 65,961

Weighted average number of common shares outstanding

115,147

2,567

117,714

Weighted average number of common Class C shares outstanding

—

151,649

Weighted average number of shares outstanding

115,147

154,216

269,363

Diluted EPS and Adjusted Diluted EPS (1)

$ 0.03

$ 0.24

Adjustments to Net income

Amortization

$ 30,572

Stock-based compensation

13,235

Deferred acquisition consideration

15,045

Other items, net

12,620

71,472

Adjusted tax expense

(20,040)

51,432

Net income attributable to Class C shareholders

11,294

$ 62,726

Allocation of adjustments to Net income

Net income attributable to Stagwell Inc. common shareholders – add-backs

$ 22,226

Net income attributable to Class C shareholders – add-backs

29,206

Net income attributable to Class C shareholders

11,294

40,500

$ 62,726

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.

SCHEDULE 8

STAGWELL INC.

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

(amounts in thousands, except per share amounts)

For the Year Ended December 31, 2024

GAAP

Adjustments

Non-GAAP

Net income attributable to Stagwell Inc. common shareholders

$ 2,259

$ 80,403

$ 82,662

Net income attributable to Class C shareholders

—

123,942

Net income attributable to Stagwell Inc. and Class C and adjusted net income

$ 2,259

$ 204,345

$ 206,604

Weighted average number of common shares outstanding

115,752

2,234

117,986

Weighted average number of common Class C shares outstanding

—

151,649

Weighted average number of shares outstanding

115,752

153,883

269,635

Diluted EPS and Adjusted Diluted EPS (1)

$ 0.02

$ 0.77

Adjustments to Net Income

Amortization

$ 122,442

Impairment and other losses

1,715

Stock-based compensation

52,161

Deferred acquisition consideration

22,995

Other items, net

49,196

248,509

Adjusted tax expense

(61,308)

187,201

Net income attributable to Class C shareholders

17,144

$ 204,345

Allocation of adjustments to Net income

Net income attributable to Stagwell Inc. common shareholders – add-backs

$ 80,403

Net income attributable to Class C shareholders – add-backs

106,798

Net income attributable to Class C shareholders

17,144

123,942

$ 204,345

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.

SCHEDULE 9

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 December 31, 2023

GAAP

Adjustments

Non-GAAP

Net income (loss) attributable to Stagwell Inc. common shareholders

$ 127

$ (4,705)

$ (4,578)

Net income attributable to Class C shareholders

—

35,780

Net income attributable to Stagwell Inc. and Class C and adjusted net income

$ 127

$ 31,075

$ 31,202

Weighted average number of common shares outstanding

119,621

—

119,621

Weighted average number of common Class C shares outstanding

—

151,649

Weighted average number of shares outstanding

119,621

151,649

271,270

Diluted EPS and Adjusted Diluted EPS (1)

$ —

$ 0.12

Adjustments to Net income (loss)

Amortization

$ 27,231

Impairment and other losses

833

Stock-based compensation

22,564

Deferred acquisition consideration

3,338

Gain on sale of business

(94,505)

Other items, net

15,078

(25,461)

Adjusted tax expense

14,768

(10,693)

Net income attributable to Class C shareholders

41,768

$ 31,075

Allocation of adjustments to Net income (loss)

Net loss attributable to Stagwell Inc. common shareholders – add-backs

$ (4,705)

Net loss attributable to Class C shareholders – add-backs

(5,988)

Net income attributable to Class C shareholders

41,768

35,780

$ 31,075

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.

SCHEDULE 10

STAGWELL INC.

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

(amounts in thousands, except per share amounts)

For the Year Ended December 31, 2023

GAAP

Adjustments

Non-GAAP

Net income attributable to Stagwell Inc. common shareholders

$ 134

$ 52,712

$ 52,846

Net income attributable to Class C shareholders

—

106,153

Net income attributable to Stagwell Inc. and Class C and adjusted net income

$ 134

$ 158,865

$ 158,999

Weighted average number of common shares outstanding

122,170

3,628

125,798

Weighted average number of common Class C shares outstanding

—

154,972

Weighted average number of shares outstanding

122,170

158,600

280,770

Diluted EPS and Adjusted Diluted EPS (1)

$ —

$ 0.57

Adjustments to Net income

Amortization

$ 113,835

Impairment and other losses

11,395

Stock-based compensation

57,179

Deferred acquisition consideration

13,060

Gain on sale of business

(94,505)

Other items, net

45,147

146,111

Adjusted tax expense

(26,312)

119,799

Net income attributable to Class C shareholders

39,066

$ 158,865

Allocation of adjustments to Net income

Net income attributable to Stagwell Inc. common shareholders

$ 52,712

Net income to attributable to Class C shareholders – add-backs

67,087

Net income attributable to Class C shareholders

39,066

106,153

$ 158,865

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.

SCHEDULE 11

STAGWELL INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

December 31, 2024

December 31, 2023

ASSETS

Current Assets

Cash and cash equivalents

$ 131,339

$ 119,737

Accounts receivable, net

716,415

697,178

Expenditures billable to clients

173,194

114,097

Other current assets

114,200

94,054

Total Current Assets

1,135,148

1,025,066

Fixed assets, net

72,706

77,825

Right-of-use assets – operating leases

219,400

254,278

Goodwill

1,554,146

1,498,815

Other intangible assets, net

836,783

818,220

Other assets

90,038

92,843

Total Assets

$ 3,908,221

$ 3,767,047

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”), AND SHAREHOLDERS’ EQUITY

Current Liabilities

Accounts payable

$ 449,347

$ 414,980

Accrued media

245,883

291,777

Accruals and other liabilities

265,356

233,046

Advance billings

294,609

301,674

Current portion of lease liabilities – operating leases

60,195

65,899

Current portion of deferred acquisition consideration

51,906

66,953

Total Current Liabilities

1,367,296

1,374,329

Long-term debt

1,353,624

1,145,828

Long-term portion of deferred acquisition consideration

50,209

34,105

Long-term lease liabilities – operating leases

245,397

281,307

Deferred tax liabilities, net

47,239

40,509

Other liabilities

59,139

54,905

Total Liabilities

3,122,904

2,930,983

Redeemable Noncontrolling Interests

8,412

10,792

Commitments, Contingencies and Guarantees

Shareholders’ Equity

Common shares – Class A & B

115

118

Common shares – Class C

Paid-in capital

343,647

348,494

Retained earnings

11,740

21,148

Accumulated other comprehensive loss

(23,773)

(13,067)

Stagwell Inc. Shareholders’ Equity

331,731

356,695

Noncontrolling interests

445,174

468,577

Total Shareholders’ Equity

776,905

825,272

Total Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity

$ 3,908,221

$ 3,767,047

SCHEDULE 12

STAGWELL INC.

UNAUDITED SUMMARY CASH FLOW DATA

(amounts in thousands)

Year Ended December 31,

2024

2023

Cash flows from operating activities:

Net income

$ 25,044

$ 41,642

Adjustments to reconcile net income to cash provided by operating activities:

Stock-based compensation

52,161

57,179

Depreciation and amortization

151,652

142,831

Amortization of right-of-use lease assets and lease liability interest

75,117

76,653

Impairment and other losses

1,715

11,395

Deferred income taxes

(10,686)

19,443

Adjustment to deferred acquisition consideration

23,005

13,060

Gain on sale of business

—

(94,505)

Other, net

7,622

8,313

Changes in working capital:

Accounts receivable

8,465

(58,704)

Expenditures billable to clients

(54,350)

(21,477)

Other assets

(6,200)

1,153

Accounts payable

24,438

52,837

Accrued expenses and other liabilities

(28,658)

(24,647)

Advance billings

(22,651)

(41,137)

Current portion of lease liabilities – operating leases

(83,905)

(87,629)

Deferred acquisition related payments

(19,910)

(15,400)

Net cash provided by operating activities

142,859

81,007

Cash flows from investing activities:

Capital expenditures

(18,912)

(14,238)

Acquisitions, net of cash acquired

(103,254)

(23,339)

Capitalized software

(35,094)

(28,175)

Proceeds from sale of business, net

—

229,484

Other

(5,212)

(7,781)

Net cash (used in) provided by investing activities

(162,472)

155,951

Cash flows from financing activities:

Repayment of borrowings under revolving credit facility

(1,755,000)

(1,986,500)

Proceeds from borrowings under revolving credit facility

1,960,000

1,945,500

Shares repurchased and cancelled

(108,249)

(223,835)

Distributions to noncontrolling interests

(26,723)

(24,964)

Payment of deferred consideration

(29,774)

(49,221)

Purchase of noncontrolling interest

(3,316)

—

Debt issuance costs

—

(844)

Net cash provided by (used in) financing activities

36,938

(339,864)

Effect of exchange rate changes on cash and cash equivalents

(5,723)

2,054

Net increase (decrease) in cash and cash equivalents

11,602

(100,852)

Cash and cash equivalents at beginning of period

119,737

220,589

Cash and cash equivalents at end of period

$ 131,339

$ 119,737

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SOURCE Stagwell Inc.

Technology

Singtel Receives Four Frost & Sullivan 2026 Recognitions for Leadership in Enterprise Connectivity, Cybersecurity, and Digital Transformation

Published

4 hours ago

July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 20, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

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SOURCE Frost & Sullivan

Technology

Foreign entrepreneurs find business opportunities and a home in Yiwu

Published

4 hours ago

July 19, 2026

BEIJING, July 19, 2026 /PRNewswire/ — A report from People’s Daily:

Yiwu, a city in east China’s Zhejiang province, is neither a coastal hub nor a border town. Yet it has built a trade network that reaches across the globe. Today, the city is home to more than 10,000 foreign-invested businesses and around 38,000 foreign merchants who live and work there.

People’s Daily reporters recently visited Yiwu to meet foreign entrepreneurs who have built successful businesses and settled down in the city. They shared stories of growing alongside Yiwu and becoming part of its remarkable transformation.

“I wouldn’t be where I am today without Yiwu,” said Senegalese businessman Sourakhata Tirera, a sentiment he often expresses. He first came to Yiwu in 2003 to source hardware products and was immediately impressed by the Yiwu International Trade Market. He noted, “If you can’t find something here, it’s probably because you haven’t searched carefully enough.”

In 2007, Tirera opened a foreign trade agency in Yiwu. In 2012, leveraging Yiwu’s comprehensive foreign trade pilot reform project, he established a wholly foreign-owned trading company. Today, his company ships 200 to 300 containers every month, dealing in more than 1,000 product categories and providing one-stop sourcing services for clients across Africa.

“Everyone is fascinated by Yiwu because it’s a place full of opportunities. Things that once seemed impossible can become reality here,” Tirera told People’s Daily after he finished receiving a trade delegation from Gabon.

Yemeni businessman Maged Mohammed Ali Al-Huraibi came to Yiwu alone in 2008 to pursue his entrepreneurial dream and founded a cosmetics trading company. In 2024, Yiwu launched a one-stop entrepreneurship service for foreign talent, offering factory leasing, policy consultation, and talent recruitment. Seizing the opportunity, Al-Huraibi invested in a cosmetics factory early that year, successfully transitioning from trader to manufacturer.

“Yiwu made my entrepreneurial dream come true. Now I want to bring cosmetics made in Yiwu to even more countries and regions around the world,” Al-Huraibi said.

Yiwu’s success is not simply about gathering products. More importantly, it comes from the city’s ability to create what the market needs — pioneering new approaches where none exist and forging new paths through continuous exploration.

Nepalese businessman Khadka Raj Kumar first came to Yiwu in 2002. In 2011, Yiwu pioneered a dual-track system for representative offices and foreign-invested business entities, addressing challenges related to residency, employment and business operations for foreign entrepreneurs. The following year, Kumar established his own trading company in Yiwu and later bought a home there.

In 2013, Yiwu established China’s first people’s mediation committee dedicated to foreign-related disputes, inviting foreign businesspeople to serve as mediation processes. Kumar has served in this role since 2017 and has participated in resolving more than 150 foreign-related disputes.

“In Yiwu, we’re not outsiders — we’re part of the local community,” he said.

As Yiwu’s sixth-generation marketplace, the Yiwu Global Digital Trade Center marks the city’s transition from traditional trade to a digital trade ecosystem.

Pakistani businessman Sheikh Jamil, who has operated in Yiwu for 21 years, has witnessed this transformation firsthand. According to him, more and more business is now conducted online. With the help of AI, he can quickly generate product solutions tailored to different market demands. “I can do business with the whole world without leaving my office,” he said.

Yemeni businessman Hasan Mohammed entered Yiwu’s cosmetics business as a distributor a decade ago. In 2018, he registered his own cosmetics brand in Saudi Arabia. With its products registered in Saudi Arabia, manufactured in China and sold worldwide, his business model delivers both high-quality products and a strong competitive edge.

“Yiwu is more like an ecosystem where ideas can quickly become reality. It offers not only opportunities, but also the potential for continuous growth,” said Mohammed.

For Brazilian businesswoman Ana Garcia, Yiwu’s transformation from “Made in Yiwu” to “Created in Yiwu” has been fueled by broad support in branding, digital innovation and global expansion. She founded a business consultancy that helps overseas clients identify market opportunities and sourcing needs, connect with qualified suppliers, and manage every step of the supply chain — from product selection and quality inspection to logistics and customs clearance.

Yiwu belongs not only to China, but also to the world. Together with entrepreneurs from around the globe, the city will continue turning the impossible into the possible, further burnishing its reputation as the “world’s supermarket” and ensuring that products created in Yiwu benefit people in more countries.

View original content:https://www.prnewswire.com/apac/news-releases/foreign-entrepreneurs-find-business-opportunities-and-a-home-in-yiwu-302829158.html

SOURCE People’s Daily

Technology

New Datingsmatch Survey: 1 in 5 Users Say a Wink Led to a Conversation

Published

5 hours ago

July 19, 2026

New findings from a Datingsmatch.com user survey show that the smallest gestures are doing more of the communication work than most people realize.

GIBRALTAR, July 19, 2026 /PRNewswire-PRWeb/ — People tend to think about opening messages as the moment a conversation actually starts online. The carefully worded introduction, the line someone spent time writing and then rewrote. What the data from a recent Datingsmatch survey points to is something different: for a meaningful share of users, none of that is where things began. It began with a wink.

According to the survey, 1 in 5 users of Datingsmatch reported that a wink was what got a conversation going. One-fifth of respondents, spread across different age groups and usage habits, identified that a single small gesture as the moment something actually started between two people.

What the Datingsmatch Survey Found

The survey was conducted among 5,000 users of the Datingsmatch online communication platform in June 2026, with participants asked to voluntarily share their experiences. The aim was to get a clearer picture of how conversations tend to begin, what it is that people hesitate about, and what eventually prompts someone to go ahead and reach out.

The wink finding was among the more consistent findings from the responses. Among users who described a conversation they felt good about, a notable portion were able to trace it back to a wink being sent first, whether they had sent it or received it. The reverse situation, where someone sent a cold message with no prior signal of any kind, was something respondents described as harder on both sides of the exchange.

That tracks with what broader research also points to. A 2023 Pew Research Center survey found that 55% of online daters felt insecure about the number of messages they received, and 36% felt overwhelmed by incoming contact. What that suggests is not that people don’t want to connect — it’s that the way contact gets initiated matters a great deal for how it lands.

Why Small Signals Carry More Weight Than They Seem

The Datingsmatch survey also looked at what stops people from reaching out when they want to. Uncertainty came up repeatedly. Not knowing whether someone is open to hearing from you. Not wanting to guess wrong and feel like you’ve overstepped.

What respondents described is not a lack of interest in connecting. It’s the absence of a clear enough signal that the other person is open to it. A Datingsmatch wink feature provides exactly that. It’s visible, unambiguous, and low-commitment enough that neither person has to feel exposed by it. For those still finding their footing on the platform, the beginner’s guide to the Datingsmatch platform walks through how these features work and how to use them effectively.

This connects to a 2024 study published in the journal Cyberpsychology, Behavior, and Social Networking that examined online rejection: ghosting was the most common form of rejection in digital communication, even after substantial prior exchanges. The fear that a message will simply be ignored — without any acknowledgment — is a real barrier. A lower-stakes signal reduces that barrier because the cost of no response feels smaller.

Datingsmatch notes, based on what survey participants shared, that this kind of low-friction signal seems to work differently than most people expect. It doesn’t just start conversations. It seems to reduce the gap that many users described feeling between “I want to reach out” and “I actually did.”

How People Actually Use the Wink Feature on Datingsmatch

Survey responses offered a more specific picture of the behavior. Winks were not being used randomly or as a form of mass outreach. Respondents described using them deliberately, on users they had spent time looking at, toward people they were genuinely interested in but not yet sure about approaching with a message.

Some users described sending a wink as a way of checking whether there was any openness to further contact, without having to commit to a full message exchange in order to find out. Others who had been on the receiving end of a wink said it was something they found easier to respond to, in part because it did not feel like it was asking too much of them too soon. There were also respondents who noted that when a wink had gone back and forth between two people, the first actual message felt less like an approach out of nowhere and more like a natural continuation of something that had already started.

Datingsmatch customer service regularly hears from users that knowing how to start a conversation is one of the things people think about most when they first join the platform. The survey data puts some numbers to what those conversations have long suggested.

What This Means for How the Platform Thinks About Connection

Datingsmatch highlights that findings like these shape how the platform continues to think about the role of small, low-pressure interactions in the overall experience. A conversation that begins with a wink is not a lesser conversation. Survey respondents who traced their most valued exchanges back to a wink described those conversations in consistently positive terms.

The platform sees value in giving users multiple ways to signal interest at different levels of commitment. A message is a commitment. A wink is an invitation. Both have a place, and the data suggests that for a meaningful portion of users, the invitation comes first and matters more than it might look like from the outside.

About Datingsmatch

Datingsmatch is an online communication platform that gives people a range of ways to connect online. The platform is built around the idea that how a conversation starts shapes everything that follows, and that not every interaction needs to begin with a message. Datingsmatch operates globally and continues to develop its communication tools based on how users actually engage with each other.

Media Contact

Elizabeth Fielden, Datingsmatch, 1 5869132511, review@datingsmatch.com, https://datingsmatch.com/

View original content:https://www.prweb.com/releases/new-datingsmatch-survey-1-in-5-users-say-a-wink-led-to-a-conversation-302828676.html

SOURCE Datingsmatch