v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
14. Segment Information
The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information, and is (iii) regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is Mark Penn, Chief Executive Officer and Chairman, to make decisions regarding resource allocation for the segment and assess its performance. Once operating segments are identified, the Company performs an analysis to determine if aggregation of operating segments is applicable. This determination is based upon a quantitative analysis of the expected and historic average long-term profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics. All segments follow the same basis of presentation and accounting policies as those described throughout the Notes included herein.
The CODM uses Adjusted EBITDA as a key metric to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions. 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 includes restructuring, certain system implementation costs, working capital administrative fees and acquisition-related expenses.
On September 30, 2025, the Company reorganized its organizational structure to better reflect how the Company manages its business and goes to market, to simplify reporting and to provide clearer visibility into performance trends across its service offerings. The reorganization also seeks to enhance consistency in the Company’s portfolio of services and improve the transparency and comparability of financial information provided to investors.
As a result of the reorganization, the Company identified five operating and reportable segments: “Marketing Services,” “Digital Transformation,” “Media & Commerce,” “Communications,” and “The Marketing Cloud.” Prior period presented has been recast to reflect the reclassification of Brands within the reportable segments. Based on the segment analysis, management concluded that the operating segments do not exhibit similar economic characteristics or share other aggregation criteria. As a result, none of our operating segments are aggregated for reporting purposes. Further, as a result of the reorganization, certain reporting units have been redefined, and the composition of others has changed. The new structure fairly reflects the allocation of the Company’s resources, thereby improving comparability for investors and supporting the Company’s long-term strategic objectives. The composition of these segments is as follows:
•The Marketing Services segment delivers a broad range of services across four closely related client needs: creative, research, experiential, and social media solutions designed to build and elevate brands. Capabilities include developing breakthrough brand campaigns, providing consumer insights through advanced research methodologies, creating immersive experiential marketing programs and social engagement strategies that connect brands with audiences across digital platforms. By combining creative excellence, data-driven insights, and innovative experiences, Marketing Services empowers organizations to differentiate themselves in the marketplace, drive audience engagement, and achieve measurable business results. These services employ a wide variety of artificial intelligence (“AI”)-powered services in the delivery, such as AI-powered creative production and data analysis. Brands in this segment include, but are not limited to, creative agencies 72 and Sunny and Anomaly, research agencies NRG and Harris Insights, experiential agency TEAM, and social agency Movers & Shakers.
•The Digital Transformation segment designs, implements and activates modern digital ecosystems that enable brand and customer experiences through the integration of strategy, design, and technology. This segment helps clients modernize their digital infrastructure, enhance customer engagement, and accelerate enterprise transformation. Its capabilities span the delivery of digital products and experiences that connect brand storytelling with technology, including website and content development, digital campaigns, product and platform design, AI-native strategies and
integration, and implementation of marketing technology (“MarTech”) products and solutions for customers. It also provides managed services, staff augmentation, and engineering expertise across various delivery models, offering system integration, full-stack development, and ongoing platform management. Additionally, Digital Transformation connects digital ecosystems to physical experiences through innovative, technology-driven customer engagements, such as business-to-business (“B2B”) platforms and multimodal activations that blend physical and digital environments using augmented reality (“AR”), virtual reality (“VR”), and emerging technologies. Together, these capabilities empower organizations to transform their digital presence and drive sustained business growth. Brands in this segment include, but are not limited to, strategy and design agencies Code and Theory and Instrument, development and implementation agency TrueLogic, and digital activation agency Left Field Labs.
•The Media & Commerce segment delivers integrated AI-based data solutions that drive audience engagement and business growth through media buying, owned media platforms, commerce enablement, and Customer Relationship Management (“CRM”) strategies. Its capabilities include planning and executing media campaigns across global platforms, leveraging data-driven approaches to optimize reach and effectiveness across first-party data, second-party data, and third-party data, and providing commerce and CRM tools that connect brands with consumers throughout the purchase journey. The segment also offers specialized media platforms and translation services to support targeted communication and market expansion. By combining expertise in media strategy, commerce activation, and audience analytics, Media & Commerce empowers organizations to maximize their marketing investments and achieve measurably efficient commercial outcomes. Brands in this segment include, but are not limited to, media buying and strategy agency Assembly Global, owned media platforms Reach TV, and commerce and CRM agency Gale.
•The Communications segment provides a leading edge set of solutions designed to help organizations build, protect, and enhance their reputation across diverse audiences and channels. Its capabilities include strategic communications, public relations, and advocacy services that leverage AI and data-driven insights to craft compelling narratives and influence public perception. The segment also offers expertise in targeted communications, corporate public affairs consulting, crisis management, and stakeholder engagement, ensuring clients can respond effectively to emerging issues and opportunities. Advocacy services encompass strategic political campaign management, grassroots mobilization, and fundraising expertise that reach across the political spectrum. By combining deep industry knowledge with innovative digital approaches to media and advocacy, Communications empowers organizations to connect with key audiences, shape conversations, and achieve their strategic objectives. Brands in this segment include, but are not limited to, Allison, Consulum, SKDK and Targeted Victory.
•The Marketing Cloud segment delivers a comprehensive suite of technology solutions for in-house marketers, combining SaaS and DaaS offerings. Its key products cover a range of areas. Advanced research tools that enable real-time customer insights through syndicated and Do It Yourself (“DIY”) generative AI-drafted surveys, AI-driven text analysis, and predictive analytics. Communications technology that aggregates data from millions of sources, including news, social media, print, and TV/radio broadcasts, on a daily basis to monitor, analyze, and respond to market trends. Media studio products that leverage first-party, third-party, and proprietary data to provide actionable audience insights and attribution analytics and advanced media platforms that encompass audience engagement solutions such as AR, quick response (“QR”) codes, and loyalty programs, all designed to collect consumer data and generate actionable insights. Together, these capabilities empower marketers to understand, engage, and influence their audiences with precision and agility. Brands in this segment include, but are not limited to, QUEST, Unicepta, Holy Grail and Smart Assets.

“Corporate, eliminations and other” consists of revenue generated by the Other business components, elimination of certain intercompany revenue and expenses, and corporate office expenses incurred in connection with the strategic resources provided to the operating segments, as well as certain other centrally managed expenses that are not fully allocated to the operating segments. These corporate office and general expenses include (i) salaries and related expenses for corporate office employees, including employees dedicated to supporting the operating segments, (ii) occupancy expenses relating to properties occupied by all corporate office employees, (iii) other office and general expenses including professional fees for the financial statement audits and other public company costs, and (iv) certain other professional fees managed by the corporate office.
Three Months Ended June 30, 2026
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$277,256 $117,672 $179,943 $188,426 $27,380 $790,677 
Billable costs43,014 10,248 25,273 76,337 2 154,874 
Staff costs131,354 67,316 98,710 61,197 18,085 376,662 
Administrative costs25,999 7,720 24,738 14,179 7,201 79,837 
Unbillable and other costs, net (2)
31,673 169 15,130 1,819 7,370 56,161 
Adjusted EBITDA45,216 32,219 16,092 34,894 (5,278)123,143 
Corporate, eliminations and other
(14,456)
Total Consolidated Adjusted EBITDA108,687 
Stock-based compensation18,567 
Depreciation and amortization43,955 
Deferred acquisition consideration8,837 
Other items, net25,782 
Operating income11,546 
Other income (expenses):
Interest expense, net(22,328)
Foreign exchange, net605 
Other, net937 
(20,786)
Loss before income taxes and equity in earnings of non-consolidated affiliates(9,240)
Income tax benefit
(348)
Loss before equity in earnings of non-consolidated affiliates(8,892)
Equity in income of non-consolidated affiliates191 
Net loss(8,701)
Net loss attributable to noncontrolling and redeemable noncontrolling interests585 
Net loss attributable to Stagwell Inc. common shareholders$(8,116)
(1) Total consolidated revenue of $786.3 million reflects revenue generated by the Other business components and intercompany elimination of $4.4 million.
(2) For each reportable segment, Unbillable and other costs, net include costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, and also includes travel related expenses.
Six Months Ended June 30, 2026
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$528,034 $219,138 $354,454 $341,528 $53,895 $1,497,049 
Billable costs76,216 15,205 50,289 132,665 18 274,393 
Staff costs263,543 131,883 195,935 118,147 34,888 744,396 
Administrative costs48,731 14,108 47,911 26,926 12,391 150,067 
Unbillable and other costs, net (2)
49,353 292 28,812 3,843 14,252 96,552 
Adjusted EBITDA90,191 57,650 31,507 59,947 (7,654)231,641 
Corporate, eliminations and other
(33,269)
Total Consolidated Adjusted EBITDA198,372 
Stock-based compensation32,815 
Depreciation and amortization88,286 
Deferred acquisition consideration19,091 
Other items, net36,992 
Operating income21,188 
Other income (expenses):
Interest expense, net(45,594)
Foreign exchange, net(2,416)
Other, net868 
(47,142)
Loss before income taxes and equity in earnings of non-consolidated affiliates(25,954)
Income tax benefit
(3,236)
Loss before equity in earnings of non-consolidated affiliates(22,718)
Equity in income of non-consolidated affiliates70 
Net loss(22,648)
Net loss attributable to noncontrolling and redeemable noncontrolling interests1,559 
Net loss attributable to Stagwell Inc. common shareholders$(21,089)
(1) Total consolidated revenue of $1,490.5 million reflects revenue generated by the Other business components and intercompany elimination of $6.6 million.
(2) For each reportable segment, Unbillable and other costs, net include costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, and also includes travel related expenses.
Three Months Ended June 30, 2025
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$275,888 $97,592 $164,025 $146,180 $25,276 $708,961 
Billable costs40,584 6,492 13,061 48,548 4 108,689 
Staff costs134,397 63,537 98,038 57,311 17,136 370,419 
Administrative costs29,393 7,176 24,325 11,530 3,313 75,737 
Unbillable and other costs, net (2)
26,745 3 13,395 2,584 5,403 48,130 
Adjusted EBITDA44,769 20,384 15,206 26,207 (580)105,986 
Corporate, eliminations and other
(11,695)
Total Consolidated Adjusted EBITDA94,291 
Stock-based compensation19,954 
Depreciation and amortization41,369 
Deferred acquisition consideration(3,220)
Other items, net13,016 
Operating income23,172 
Other expenses:
Interest expense, net(23,455)
Foreign exchange, net(1,338)
Other, net(360)
(25,153)
Loss before income taxes and equity in earnings of non-consolidated affiliates(1,981)
Income tax expense2,673 
Loss before equity in earnings of non-consolidated affiliates(4,654)
Equity in income of non-consolidated affiliates20 
Net loss(4,634)
Net income attributable to noncontrolling and redeemable noncontrolling interests(627)
Net loss attributable to Stagwell Inc. common shareholders$(5,261)
(1) Total consolidated revenue of $706.8 million reflects an intercompany elimination of $2.1 million.
(2) For each reportable segment, Unbillable and other costs, net include costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, and also includes travel related expenses.
Six Months Ended June 30, 2025
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$524,940 $188,479 $324,447 $275,268 $49,382 $1,362,516 
Billable costs73,406 8,875 27,295 86,655 11 196,242 
Staff costs262,726 122,764 192,986 115,623 34,033 728,132 
Administrative costs56,503 12,617 46,738 24,526 8,514 148,898 
Unbillable and other costs, net (2)
43,571 765 28,890 4,665 10,473 88,364 
Adjusted EBITDA88,734 43,458 28,538 43,799 (3,649)200,880 
Corporate, eliminations and other
(24,296)
Total Consolidated Adjusted EBITDA176,584 
Stock-based compensation31,497 
Depreciation and amortization83,375 
Deferred acquisition consideration3,437 
Other items, net16,818 
Operating income41,457 
Other expenses:
Interest expense, net(46,811)
Foreign exchange, net(118)
Other, net(111)
(47,040)
Loss before income taxes and equity in earnings of non-consolidated affiliates(5,583)
Income tax expense4,395 
Loss before equity in earnings of non-consolidated affiliates(9,978)
Equity in income of non-consolidated affiliates19 
Net loss(9,959)
Net loss attributable to noncontrolling and redeemable noncontrolling interests1,781 
Net loss attributable to Stagwell Inc. common shareholders$(8,178)
(1) Total consolidated revenue of $1,358.6 million reflects an intercompany elimination of $4.0 million.
(2) For each reportable segment, Unbillable and other costs, net include costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, and also includes travel related expenses.
The Company’s long-lived tangible assets (i.e., Right-of-use lease assets - operating leases and Fixed assets, net) was $264.4 million ($197.4 million in the United States and $67.1 million in all other countries) as of June 30, 2026 and $286.6 million ($211.6 million in the United States and $75.0 million in all other countries) as of December 31, 2025.
The Company’s CODM does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.
See Note 4 of the Notes included herein for a summary of the Company’s revenue by geographic region for the three and six months ended June 30, 2026 and 2025.