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Stagwell Inc., the marketing and communications group led by political strategist-turned-businessman Mark Penn, reported a modest rise in revenue and adjusted profits for the second quarter of 2025, even as net losses widened and year-to-date earnings per share remained negative.
The New York–based company said that revenue for the second quarter reached $707 million, a 5 percent increase compared to the same period last year. Excluding its advocacy business - a cyclical line of work tied to political and public affairs campaigns, revenue rose 9 percent to $651 million.
Net revenue, a key internal metric that strips out pass-through costs, increased 8 percent year over year to $598 million. Excluding advocacy, net revenue was $560 million, up 10 percent.
Despite top-line gains, Stagwell posted a net loss attributable to common shareholders of $5 million for the quarter, compared to a $3 million loss a year earlier. Losses for the year to date widened to $8 million from $4 million. Earnings per share for the second quarter were negative $0.02, improving slightly from a loss of $0.03 per share in the prior year.
Adjusted earnings per share, a non-GAAP figure favored by analysts, came in at $0.17 for the quarter, up from $0.14. For the first half of 2025, adjusted EPS was $0.29, just below the $0.30 posted a year ago.
Mark Penn, Stagwell’s chairman and chief executive, struck an optimistic tone despite the losses. “With 10% ex-advocacy net revenue growth, Stagwell is taking share and building momentum across all key metrics this quarter,” Penn said in a statement. “In Q2, we posted net new business of $117 million, strong performance at our Digital Transformation businesses, 26% growth among our Top 25 customers, and our first major Government win. Stagwell’s differentiated approach is resonating.”
Adjusted EBITDA for the quarter totaled $93 million, an 8 percent increase from a year ago. Excluding advocacy, adjusted EBITDA grew 23 percent. The company’s adjusted EBITDA margin stood at 16 percent for the quarter and 15 percent year to date.
On global explansion, Penn said, it is less about cost efficiency, and it's more about revenue synergies. "We need to really drive bigger contracts, regional and global assignments. That's why last year, my primary focus was on completing our Asia network, which now immediately has drawn bids for pan-Asia work and also qualified us for other global assignments. And in the Mid East, where I saw tremendous growth, and we now have 500 or 600 people, and we didn't really have an operation there before."
These functions expand the streams by which new business can come in, he added. "So we're getting bids now on contracts that simply we would never have been considered for, both in Asia and in the Middle East. In terms of cost efficiencies, it may tear your hair out with a lot of new jurisdictions."
Stagwell also completed the acquisition of previously announced ADK GLOBAL in the second quarter, giving it offices in 10 new Asia Pacific markets, aligning with its strategy of increasing global scale.
The company executives said M&A remains a key growth driver for Stagwell moving forward, but they do expect to slow down of Stagwell's outside acquisitions through the rest of the year.
Ryan Greene, recently appointed chief financial officer, highlighted improvements in cash flow and the company’s progress on cost-cutting targets. “The second quarter has seen us deliver strong results, hitting $93 million in Adjusted EBITDA,” Mr. Greene said. “Importantly, we have made significant progress on two key initiatives: improving our year-to-date cash flow from operations by $122 million versus the same period last year, and taking actions amounting to $20 million in annualized cost savings.”
The company said it remains on track to meet its previously announced goal of achieving $80 million to $100 million in annual cost savings by the end of 2026. For the first half of 2025, Stagwell reported $55 million in cash from operating activities, a turnaround from a negative $68 million in the same period last year.
Stagwell reiterated its full-year financial guidance, projecting total net revenue growth of approximately 8 percent and adjusted EBITDA between $410 million and $460 million. The company expects to convert more than 45 percent of that EBITDA into free cash flow and is forecasting adjusted EPS in the range of $0.75 to $0.88.
The results arrive as Stagwell continues to navigate a shifting media and advertising landscape, where clients are investing more in digital tools and measurable performance marketing. The firm’s recent emphasis on digital transformation and government business could help it diversify beyond traditional ad markets as macroeconomic pressures weigh on marketing budgets.
For now, Stagwell is betting that its integrated model and recent operational moves will begin to pay dividends. Investors and analysts will be watching closely to see whether the second-half results show a stronger path to profitability.