Stagwell reported a 6% increase in net revenue in the third quarter of 2025. This was driven by double-digit growth in our non-advocacy business and improved margins as we shifted our focus from acquisitions to technology.
The holding company also reaffirmed its full-year outlook, saying cost reductions and new business helped offset the slowdown in advocacy.
numbers
$743 million – Third quarter revenue (+4% YoY)
$615 million – Net revenue (+6% YoY)
19% – Adjusted EBITDA margin is Stagwell’s highest in two years
water cooler talk
CEO Mark Penn opened an earnings call Thursday (Nov. 6) by declaring Stagwell to be “one of the winners” in the marketing industry, which is rapidly reshaping itself around AI.
That strategy includes developing in-house technology such as Stagwell Marketing Cloud, a suite of AI tools that can analyze data and automate production. In July, Stagwell launched Agent Cloud, which provides access to multiple large-scale language models and image and video generation tools in one platform. Penn also mentioned the Stagwell Media Platform, which was launched in mid-2025 to unify media buying across agencies.
Mr. Penn also talked about Stagwell’s partnership with Palantir. The partnership sees the holding company connect its marketing data to Palantir’s analytics engine to create a single AI system for audience targeting, creative testing and campaign management.
Penn reiterated that Stagwell may spin off its marketing cloud division if its value is not reflected in the company’s stock. “We believe it has the potential to generate hundreds of millions of dollars,” he said.
A focus on AI is already driving efficiency at Stagwell. The company saved $27 million this year and expects to save $80 million to $100 million annually by 2026. CFO Ryan Green also hinted that the company is “aggressively focused on labor efficiency and cost discipline.”
Advocacy was a drag on Stagwell’s revenue in the third quarter, but Penn said next year’s election cycle should provide a boost.
important quotes
“This quarter once again shows how Stagwell is a winner in an industry undergoing significant change,” Penn said.
