v3.26.3
Segment Information
 9 Months Ended
Sep. 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 Sport Beach, 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 Stagwell Media, 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. 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. Solutions in this segment are sold as SaaS or DaaS offerings, or licensed as software, as appropriate. 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, and The Machines.

“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 September 30, 2026
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$255,445 $127,176 $176,857 $210,913 $55,825 $826,216 
Billable costs37,764 8,517 18,113 87,229 142 151,765 
Staff costs126,795 73,620 95,403 59,939 16,572 372,329 
Administrative costs24,677 6,830 26,650 13,432 5,291 76,880 
Unbillable and other costs, net (2)
24,254 71 16,917 2,455 9,165 52,862 
Adjusted EBITDA41,955 38,138 19,774 47,858 24,655 172,380 
Corporate, eliminations and other
(27,544)
Total Consolidated Adjusted EBITDA144,836 
Stock-based compensation28,920 
Depreciation and amortization48,300 
Deferred acquisition consideration7,675 
Impairment and other losses1,028 
Other items, net10,854 
Operating income48,059 
Other income (expenses):
Interest expense, net(23,993)
Foreign exchange, net2,244 
Other, net2,526 
(19,223)
Income before income taxes and equity in earnings of non-consolidated affiliates28,836 
Income tax expense10,882 
Income before equity in earnings of non-consolidated affiliates17,954 
Equity in income of non-consolidated affiliates442 
Net income18,396 
Net income attributable to noncontrolling and redeemable noncontrolling interests(277)
Net income attributable to Stagwell Inc. common shareholders$18,119 
(1) Total consolidated revenue of $816.0 million reflects revenue generated by the Other business components and intercompany elimination of $10.2 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, amortization of capitalized software marketed externally, and also includes travel related expenses.
Nine Months Ended September 30, 2026
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$786,650 $349,756 $534,561 $552,767 $110,963 $2,334,697 
Billable costs113,980 23,722 68,801 219,894 160 426,557 
Staff costs390,338 208,901 291,338 178,086 51,460 1,120,123 
Administrative costs74,036 20,966 74,902 40,634 18,003 228,541 
Unbillable and other costs, net (2)
75,327 381 45,820 6,291 23,962 151,781 
Adjusted EBITDA132,969 95,786 53,700 107,862 17,378 407,695 
Corporate, eliminations and other
(64,487)
Total Consolidated Adjusted EBITDA343,208 
Stock-based compensation61,735 
Depreciation and amortization136,395 
Deferred acquisition consideration26,766 
Impairment and other losses1,219 
Other items, net47,846 
Operating income69,247 
Other income (expenses):
Interest expense, net(69,587)
Foreign exchange, net(172)
Other, net3,394 
(66,365)
Income before income taxes and equity in earnings of non-consolidated affiliates2,882 
Income tax expense7,646 
Loss before equity in earnings of non-consolidated affiliates(4,764)
Equity in income of non-consolidated affiliates512 
Net loss(4,252)
Net loss attributable to noncontrolling and redeemable noncontrolling interests1,282 
Net loss attributable to Stagwell Inc. common shareholders$(2,970)
(1) Total consolidated revenue of $2,306.5 million reflects revenue generated by the Other business components and intercompany elimination of $28.2 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, amortization of capitalized software marketed externally, and also includes travel related expenses.
Three Months Ended September 30, 2025
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$291,089 $104,445 $183,112 $145,086 $26,576 $750,308 
Billable costs51,128 8,334 20,570 48,455 5 128,492 
Staff costs138,310 62,845 98,212 56,650 17,969 373,986 
Administrative costs26,835 6,981 24,225 12,516 3,068 73,625 
Unbillable and other costs, net (2)
17,187 401 15,554 2,344 6,898 42,384 
Adjusted EBITDA57,629 25,884 24,551 25,121 (1,364)131,821 
Corporate, eliminations and other
(15,834)
Total Consolidated Adjusted EBITDA115,987 
Stock-based compensation12,646 
Depreciation and amortization44,260 
Deferred acquisition consideration(13,348)
Impairment and other losses466 
Other items, net11,050 
Operating income60,913 
Other expenses:
Interest expense, net(25,196)
Foreign exchange, net(366)
Other, net(2,032)
(27,594)
Income before income taxes and equity in earnings of non-consolidated affiliates33,319 
Income tax expense9,555 
Income before equity in earnings of non-consolidated affiliates23,764 
Equity in loss of non-consolidated affiliates(1)
Net income23,763 
Net loss attributable to noncontrolling and redeemable noncontrolling interests856 
Net income attributable to Stagwell Inc. common shareholders$24,619 
(1) Total consolidated revenue of $743.0 million reflects an intercompany elimination of $7.3 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, amortization of capitalized software marketed externally, and also includes travel related expenses.
Nine Months Ended September 30, 2025
Marketing ServicesDigital TransformationMedia & CommerceCommunicationsThe Marketing CloudTotal
(dollars in thousands)
Revenue (1)
$817,294 $294,301 $509,416 $420,556 $77,380 $2,118,947 
Billable costs124,534 17,210 49,505 135,109 16 326,374 
Staff costs401,036 186,972 291,228 172,273 52,001 1,103,510 
Administrative costs83,338 19,599 70,963 37,042 11,582 222,524 
Unbillable and other costs, net (2)
61,801 1,178 44,486 7,103 18,399 132,967 
Adjusted EBITDA146,585 69,342 53,234 69,029 (4,618)333,572 
Corporate, eliminations and other
(41,001)
Total Consolidated Adjusted EBITDA292,571 
Stock-based compensation44,143 
Depreciation and amortization127,635 
Deferred acquisition consideration(9,911)
Impairment and other losses466 
Other items, net27,868 
Operating income102,370 
Other expenses:
Interest expense, net(72,007)
Foreign exchange, net(484)
Other, net(2,143)
(74,634)
Income before income taxes and equity in earnings of non-consolidated affiliates27,736 
Income tax expense13,950 
Income before equity in earnings of non-consolidated affiliates13,786 
Equity in income of non-consolidated affiliates18 
Net income13,804 
Net loss attributable to noncontrolling and redeemable noncontrolling interests2,637 
Net income attributable to Stagwell Inc. common shareholders$16,441 
(1) Total consolidated revenue of $2,101.6 million reflects an intercompany elimination of $17.4 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, amortization of capitalized software marketed externally, 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) were $259.3 million ($196.0 million in the United States and $63.4 million in all other countries) as of September 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 nine months ended September 30, 2026 and 2025.