# Stagwell Inc. (STGW)

> Source: Nexqual · https://nexqual.com/STGW · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Stagwell Inc. (STGW), nexqual.com/STGW" · informational, not investment advice.

**Price:** USD 8.99 (+0.78% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 8.92 · day 8.86–9.07 · 52w 4.29–9.64 · market cap $2.20B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $3.04B, net income $16.2M (0.5% margin), free cash flow $253M (SEC filings).
- Valuation: P/E 135.8x (avg 2142.1x at the last 3 fiscal year-ends), EV/EBITDA 11.2x, net debt $1.34B.
- Earnings quality: non-operating income -$90.3M vs operating income $139M over the last four quarters; P/E excluding non-operating income ≈29.3x (estimate: non-operating income taxed at the company's 35% effective rate).
- 1 of 80 tracked superinvestors hold STGW (13F, Q2 2026): 0 new, 0 added, 0 reduced, 1 unchanged.
- Insider open-market sales, last ~7 months: 2 Form 4 filings, $13.6M; 2 not under a Rule 10b5-1 plan ($13.6M); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $118K; 1 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 2.00 on a 1–5 scale) (8 analysts), mean target USD 10.71 (range 10–13).
- Total return with dividends: 1Y +83.1% vs S&P 500 +14.9%; 5Y -0.1% vs S&P 500 +80.3%.
- Next earnings: 2026-10-29, EPS estimate USD 0.31, revenue estimate $834M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.47B | $2.69B | $2.53B | $2.84B | $2.91B | $3.04B |
| Gross profit | $563M | $1.01B | $906M | $998M | $1.06B | — |
| Operating income | $44.7M | $159M | $90.5M | $133M | $159M | $139M |
| Net income | $21.0M | $19.9M | $134K | $2.3M | $29.1M | $16.2M |
| Free cash flow | $192M | $325M | $66.8M | $124M | $247M | $253M |
| Gross margin | 38.3% | 37.7% | 35.9% | 35.1% | 36.5% | — |
| Operating margin | 3.0% | 5.9% | 3.6% | 4.7% | 5.5% | 4.6% |
| Net margin | 1.4% | 0.7% | 0.0% | 0.1% | 1.0% | 0.5% |
| Revenue growth | +65.5% | +82.9% | -6.0% | +12.4% | +2.4% | — |
| Cash + short-term investments | $184M | $221M | $120M | $131M | $105M | — |
| Total debt | $1.19B | $1.18B | $1.15B | $1.35B | $1.33B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 135.8x · P/E ex non-operating (est.) ≈29.3x · P/S 0.7x · EV/EBITDA 11.2x · EV/Sales 1.2x · P/FCF 8.7x · P/B 3.3x · FCF yield 11.50% · Earnings yield 0.74% · Buyback yield (TTM) 7.04% · Net debt $1.34B · EV $3.54B
P/E at fiscal year-ends: Dec 2025 44.4x, Dec 2024 337.2x, Dec 2023 6044.7x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold STGW. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| First Pacific Advisors |  | 0.11% | $8.9M | Unchanged |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 2 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-07-31 | Lanuto Frank P | See Remarks | 62,000 | $525K | 11.2% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-04 | Gross Bradley J. | Director | 2,163,790 | $13.1M | 99.6% | No | Too little history (no open-market trades in 2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $118K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-05-13 | Penn Mark Jeffery | Chief Executive Officer | 20,000 | $118K | 5.88 | Opportunistic (traded every year 2023–2025, no repeating month) |

## Analysts
Consensus Buy (mean 2.00 on a 1–5 scale), 8 analysts; mean target USD 10.71 (low 10, high 13).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-08-04 | Rosenblatt | Target raised | Buy | $9 → $10 |
| 2026-07-31 | B. Riley Securities | Target raised | Buy | $8 → $10 |
| 2026-07-31 | Wells Fargo | Target raised | Overweight | $8 → $10 |
| 2026-07-30 | Needham | Target raised | Buy | $8 → $10 |
| 2026-06-29 | Needham | Target raised | Buy | $7.25 → $8 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +83.1% | -0.1% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +83.5% | -0.0% |
| Volatility (annualized) | 54.1% | 50.1% |
| Max drawdown | -36.8% (Jan 2026→Feb 2026) | -62.1% (Nov 2021→Oct 2023) |

## Peers (Advertising Agencies)
DV (DoubleVerify Holdings, Inc.) USD 13.56 -0.00% · ZD (Ziff Davis, Inc.) USD 57.95 +1.61% · LFTO (Liftoff Mobile, Inc.) USD 16.32 -1.03% · MGNI (Magnite, Inc.) USD 23.13 -2.07% · CCO (Clear Channel Outdoor Holdings,) USD 2.42 +0.00% · QNST (QuinStreet, Inc.) USD 16.88 +2.93%

## More
Full page: https://nexqual.com/STGW · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in STGW's own 10-K filed 2026-03-13 (https://www.sec.gov/Archives/edgar/data/876883/000087688326000010/stgw-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Stagwell Global | "We go to market in four main ways: as individual Brands, as service lines where collaboration across services is needed, as Stagwell Global when we create multi-region, Stagwell-wide teams, and as The Marketing Cloud, wh…" |
| Partner | Adobe (ADBE) | "We believe Stagwell is at the forefront of innovating these technologies within our industry, collaborating with companies such as Adobe on AI solutions, and incubating original and proprietary technology to drive busine…" |
| Partner | Palantir (PLTR) | "We have made investments to develop new marketing services products and technologies, including The Machine, our Palantir partnership, products at The Marketing Cloud and other marketing data, campaign MarTech, AR and VR…" |
| Competitor | Accenture (ACN) | "Our Brands also face competition from consultancies, such as Accenture and Deloitte, tech platforms, media companies and other services firms that offer related services." |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Marketing Services | $277.3M | 35.3% | +0.5% |
| Communications | $188.4M | 24.0% | +28.9% |
| Media & Commerce | $179.9M | 22.9% | +9.7% |
| Digital Transformation | $117.7M | 15.0% | +20.6% |
| The Marketing Cloud | $27.4M | 3.5% | +8.3% |
| Total revenue | $786.3M | 100% | — |

## Revenue by product line (quarter ended 2025-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Creativity & Communications | $340.8M | 48.2% | +7.6% |
| Digital Transformation | $125.9M | 17.8% | +0.5% |
| Performance Media & Data | $112.4M | 15.9% | -3.6% |
| Stagwell Marketing Cloud Group | $78.1M | 11.0% | +20.5% |
| Consumer Insights & Strategy | $49.7M | 7.0% | +4.1% |
| Total revenue | $706.8M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| UNITED STATES | $623.9M | 79.3% | +11.9% |
| Other | $116.8M | 14.9% | +4.9% |
| UNITED KINGDOM | $45.7M | 5.8% | +20.0% |
| Total revenue | $786.3M | 100% | — |

## Company outlook (8-K filed 2026-07-30)

- "Guidance to $1.03 to $1.17 New York, NY, July 30, 2026 (NASDAQ: STGW) – Stagwell Inc."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.31 | $0.31 | -2.3% | $834.2M | 8 |
| Next quarter (ends 2026-12-31) | $0.39 | $0.39 | -2.1% | $919.9M | 8 |
| Current fiscal year (ends 2026-12-31) | $1.11 | $1.06 | +4.6% | $3.24B | 8 |
| Next fiscal year (ends 2027-12-31) | $1.26 | $1.17 | +7.7% | $3.33B | 8 |