EX-99.1 2 stgw20241231pr.htm EX-99.1 Document
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FOR IMMEDIATE ISSUE


STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024

Q4 YoY Revenue Growth of 20%, With 22% Growth in Digital Transformation
Q4 YoY Net Revenue Growth of 14%, Organic Net Revenue Growth of 10%, Digital Transformation Net Revenue Growth of 15%
Q4 Net Income Attributable to Stagwell Inc. Common Shareholders of $3 million
Q4 Adjusted EBITDA of $123 million; Adjusted EBITDA Margin of 20%
Q4 EPS of $0.03; Adjusted EPS of $0.24
Eighth Consecutive Quarter of Record LTM Net New Business

Net New Business of $102 million in Q4; LTM Net New Business of $382 million
Introduce Guidance for 2025 of Total Net Revenue Growth of ~8%; Adjusted EBITDA of $410 million to $460 million; Free Cash Flow Conversion in excess of 45%

Stagwell To Host Investor Day on April 2nd 2025


New York, NY, February 27, 2025 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the quarter and year ended December 31, 2024.

FOURTH QUARTER RESULTS:

•Q4 Revenue of $789 million, an increase of 20% versus the prior year period; Full Year Revenue of $2.8 billion, an increase of 12% versus the prior year
•Q4 Net Revenue of $630 million, an increase of 14% versus the prior year period; Full Year Net Revenue of $2.3 billion, an increase of 7% versus the prior year
•Q4 Organic Net Revenue increased 10% versus the prior year period; Full Year Organic Net Revenue increased 5% versus the prior year
•Q4 Net Income attributable to Stagwell Inc. Common Shareholders of $3 million versus $1 million in the prior year period; Full Year Net Income attributable to Stagwell Inc. Common Shareholders of $2 million versus $0.1 million in the prior year
•Q4 Adjusted EBITDA of $123 million, an increase of 30% versus the prior year period; Full Year Adjusted EBITDA of $411 million, an increase of 14% versus the prior year
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•Q4 Adjusted EBITDA Margin of 20% on net revenue; Full Year Adjusted EBITDA Margin of 18% on net revenue
•Q4 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.03 versus $0.00 in the prior year period; Full Year Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.02 versus $0.00 in the prior year
•Q4 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.24 versus $0.12 in the prior year period; Full Year Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.77 versus $0.57 in the prior year
•Net new business of $102 million in the fourth quarter, last twelve-month net new business of $382 million
See “Non-GAAP Financial Measures” below for explanations and reconciliations of the Company’s non-GAAP financial measures.


Mark Penn, Chairman and CEO of Stagwell, said, "2024 was a breakthrough year for Stagwell and has fueled a strong start to 2025. We re-established ourselves as the fastest growing business in the industry, accelerated rapidly in Digital Transformation, took advantage of an unprecedented U.S. election cycle, and made strategic investments to expand our capabilities and geographical reach. I'm looking forward to a strong 2025."

Frank Lanuto, Chief Financial Officer, commented: "Stagwell posted strong results in the fourth quarter with double-digit revenue growth in 4 of our 5 principal capabilities. We delivered fourth quarter revenue of $789 million. Simultaneously, we grew our adjusted EBITDA to $123 million, representing a 20% margin on net revenue, an improvement of approximately 230 bps over the prior year period, as we lowered our comp to revenue ratio to 57.5%, a company record. These results give us confidence in the year ahead.”


Financial Outlook
2025 financial guidance is announced as follows:
•Total Net Revenue growth of approximately 8%
•Adjusted EBITDA of $410 million to $460 million
•Free Cash Flow Conversion in excess of 45%
•Adjusted EPS of $0.75 - $0.88
•Guidance includes anticipated impact from acquisitions or dispositions.
* The Company has excluded a quantitative reconciliation with respect to the Company’s 2025 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See "Non-GAAP Financial Measures" below for additional information.

Video Webcast
Management will host a video webcast on Thursday, February 27, 2025, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the quarter and year ended December 31, 2024. The video webcast will be accessible at https://bit.ly/3EVAIAk. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.

A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.

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Stagwell Inc.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 40+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Contacts
For Investors:
Ben Allanson
IR@stagwellglobal.com

For Press:
Beth Sidhu
PR@stagwellglobal.com


Non-GAAP Financial Measures
In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following:
(1) Organic Net Revenue: “Organic net revenue growth” and “Organic net revenue decline” reflects the year-over-year change in the Company's reported net revenue attributable to the Company's management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company's reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity’s prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.
(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.
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(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.
(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.
(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. Free Cash Flow Conversion is the percentage of adjusted EBITDA.
Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.
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This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “ability,” “aim,” “anticipate,” “assume,” “believe,” “build,” “consider,” “continue,” “could,” “create,” “develop,” “drive,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “in development,” “intend,” “likely,” “look,” “maintain,” “may,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “project,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.

Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:

•risks associated with international, national and regional unfavorable economic conditions that could affect the Company or its clients;
•demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
•inflation and actions taken by central banks to counter inflation;
•the Company’s ability to attract new clients and retain existing clients;
•the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
•financial failure of the Company’s clients;
•the Company’s ability to retain and attract key employees;
•the Company’s ability to compete in the markets in which it operates;
•the Company’s ability to achieve its cost saving initiatives;
•the Company’s implementation of strategic initiatives;
•the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
•the Company’s ability to manage its growth effectively;
•the Company’s ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company’s business capabilities and successfully integrate newly acquired businesses into the Company’s operations, retain key employees, and realize expected cost savings, synergies and other related anticipated benefits within the expected time period;
•the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;
•the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
•the Company’s use of artificial intelligence, including generative artificial intelligence;
•adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that future changes in tax laws, potential increases to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs;
•adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
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•the Company’s ability to establish and maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements;
•the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;
•the Company’s ability to protect client data from security incidents or cyberattacks;
•economic disruptions resulting from war and other geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in the Middle East), terrorist activities, natural disasters, and public health events;
•stock price volatility; and
•foreign currency fluctuations.
Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2023 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2024, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.
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SCHEDULE 1
STAGWELL INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
Three Months Ended December 31,Year Ended December 31,
2024202320242023
Revenue$788,708 $654,895 $2,841,216 $2,527,177 
Operating Expenses
Cost of services502,522 419,865 1,842,978 1,621,174 
Office and general expenses203,887 179,871 711,803 661,250 
Depreciation and amortization38,771 35,036 151,652 142,831 
Impairment and other losses— 833 1,715 11,395 
745,180 635,605 2,708,148 2,436,650 
Operating Income43,528 19,290 133,068 90,527 
Other income (expenses):
Interest expense, net(24,038)(22,889)(92,317)(90,644)
Foreign exchange, net645 (672)(1,656)(2,960)
Gain on sale of business
— 94,505 — 94,505 
Other, net
(547)108 (1,372)(359)
(23,940)71,052 (95,345)542 
Income before income taxes and equity in earnings of non-consolidated affiliates
19,588 90,342 37,723 91,069 
Income tax expense3,741 35,560 13,182 40,557 
Income before equity in earnings of non-consolidated affiliates
15,847 54,782 24,541 50,512 
Equity in income (loss) of non-consolidated affiliates
— (8,423)503 (8,870)
Net income
15,847 46,359 25,044 41,642 
Net income attributable to noncontrolling and redeemable noncontrolling interests
(12,612)(45,073)(22,785)(41,508)
Net income attributable to Stagwell Inc. common shareholders
$3,235 $1,286 $2,259 $134 
Earnings Per Common Share:
   Basic$0.03 $0.01 $0.02 $— 
   Diluted$0.03 $— $0.02 $— 
Weighted Average Number of Common Shares Outstanding:
   Basic 109,266 112,769 110,890 117,259 
   Diluted115,147 119,621 115,752 122,170 
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SCHEDULE 2
STAGWELL INC.
UNAUDITED COMPONENTS OF NET REVENUE CHANGE
(amounts in thousands)


Net Revenue - Components of ChangeChange
Three Months Ended December 31, 2023Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended December 31, 2024OrganicTotal
Integrated Agencies Network$302,137 $25 $4,800 $27,405 $32,230 $334,367 9.1 %10.7 %
Brand Performance Network168,519 75— 6,046 6,121 174,640 3.6 %3.6 %
Communications Network68,229 4215,757 23,666 39,465 107,694 34.7 %57.8 %
All Other12,181 (161)2,950 (2,048)741 12,922 (16.8)%6.1 %
$551,066 $(19)$23,507 $55,069 $78,557 $629,623 10.0 %14.3 %


Net Revenue - Components of ChangeChange
Year Ended December 31, 2023Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeYear Ended December 31, 2024OrganicTotal
Integrated Agencies Network$1,232,798 $226 $7,208 $32,521 $39,955 $1,272,753 2.6 %3.2 %
Brand Performance Network627,8102,2202,252 18,948 $23,420 651,230 3.0 %3.7 %
Communications Network245,261(28)22,177 $66,385 $88,534 333,795 27.1 %36.1 %
All Other46,585 (984)(609)(6,108)(7,701)38,884 (13.1)%(16.5)%
$2,152,454 $1,434 $31,028 $111,746 $144,208 $2,296,662 5.2 %6.7 %

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.

Note: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments.




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SCHEDULE 3
STAGWELL INC.
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)

For the Three Months Ended December 31, 2024
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkAll OtherCorporateTotal
Net Revenue$334,367 $174,640 $107,694 $12,922 $— $629,623 
Billable costs 73,558 13,688 72,150 (311)— 159,085 
Revenue407,925 188,328 179,844 12,611 — 788,708 
Billable costs73,558 13,688 72,150 (311)— 159,085 
Staff costs212,062 100,890 54,590 10,364 12,315 390,221 
Administrative costs32,857 23,959 10,940 2,692 5,006 75,454 
Unbillable and other costs, net16,455 19,224 965 4,105 — 40,749 
Adjusted EBITDA (1)
72,993 30,567 41,199 (4,239)(17,321)123,199 
Stock-based compensation2,083 1,989 643 175 8,345 13,235 
Depreciation and amortization19,345 8,071 5,119 2,780 3,456 38,771 
Deferred acquisition consideration7,600 (1,290)9,673 (938)— 15,045 
Other items, net (1)
7,388 3,173 1,146 185 728 12,620 
Operating income (loss)$36,577 $18,624 $24,618 $(6,441)$(29,850)$43,528 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.







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SCHEDULE 4
STAGWELL INC.
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)

For the Year Ended December 31, 2024
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkAll OtherCorporateTotal
Net Revenue$1,272,753 $651,230 $333,795 $38,884 $— $2,296,662 
Billable costs 262,692 100,654 181,345 (137)— 544,554 
Revenue1,535,445 751,884 515,140 38,747 — 2,841,216 
Billable costs262,692 100,654 181,345 (137)— 544,554 
Staff costs792,041 397,301 177,629 34,999 47,736 1,449,706 
Administrative costs128,954 93,155 37,057 6,139 16,402 281,707 
Unbillable and other costs, net72,756 65,901 2,235 13,570 — 154,462 
Adjusted EBITDA (1)
279,002 94,873 116,874 (15,824)(64,138)410,787 
Stock-based compensation27,253 6,977 3,374 904 13,653 52,161 
Depreciation and amortization78,076 34,595 14,126 12,718 12,137 151,652 
Deferred acquisition consideration13,290 (7,744)18,770 (1,321)— 22,995 
Impairment and other losses1,500 — — — 215 1,715 
Other items, net (1)
20,592 19,536 3,250 887 4,931 49,196 
Operating income (loss)$138,291 $41,509 $77,354 $(29,012)$(95,074)$133,068 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.






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SCHEDULE 5
STAGWELL INC.
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)

For the Three Months Ended December 31, 2023
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkAll OtherCorporateTotal
Net Revenue$302,137 $168,519 $68,229 $12,181 $— $551,066 
Billable costs 51,665 16,921 35,217 26 — 103,829 
Revenue353,802 185,440 103,446 12,207 — 654,895 
Billable costs51,665 16,921 35,217 26 — 103,829 
Staff costs195,953 97,871 43,319 6,292 11,088 354,523 
Administrative costs29,618 23,174 8,568 3,445 (1,871)62,934 
Unbillable and other costs, net18,111 17,357 277 2,885 — 38,630 
Adjusted EBITDA (1)
58,456 30,117 16,065 (441)(9,217)94,980 
Stock-based compensation12,015 2,364 1,157 91 6,937 22,564 
Depreciation and amortization19,680 8,090 2,800 2,238 2,228 35,036 
Deferred acquisition consideration3,813 1,739 (3,373)— — 2,179 
Impairment and other losses737 96 — — — 833 
Other items, net (1)
6,403 3,713 198 95 4,669 15,078 
Operating income (loss)$15,808 $14,115 $15,283 $(2,865)$(23,051)$19,290 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items.

Note: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments.




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SCHEDULE 6
STAGWELL INC.
UNAUDITED SEGMENT OPERATING RESULTS
(amounts in thousands)

For the Year Ended December 31, 2023
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkAll OtherCorporateTotal
Net Revenue$1,232,798 $627,810 $245,261 $46,585 $— $2,152,454 
Billable costs 185,913 100,364 88,446 — — 374,723 
Revenue1,418,711 728,174 333,707 46,585 — 2,527,177 
Billable costs185,913 100,364 88,446 — — 374,723 
Staff costs768,846 386,803 159,165 37,416 36,938 1,389,168 
Administrative costs122,618 87,337 33,664 4,689 11,472 259,780 
Unbillable and other costs, net71,776 55,891 613 15,087 — 143,367 
Adjusted EBITDA (1)
269,558 97,779 51,819 (10,607)(48,410)360,139 
Stock-based compensation27,485 6,204 3,334 518 19,638 57,179 
Depreciation and amortization81,957 33,250 11,016 8,390 8,218 142,831 
Deferred acquisition consideration11,931 2,851 30 (1,752)— 13,060 
Impairment and other losses11,299 96 — — — 11,395 
Other items, net (1)
20,225 12,206 1,535 1,174 10,007 45,147 
Operating income (loss)$116,661 $43,172 $35,904 $(18,937)$(86,273)$90,527 

(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net.

Note: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments.




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SCHEDULE 7
STAGWELL INC.
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)

For the Three Months Ended December 31, 2024
GAAPAdjustmentsNon-GAAP
Net income attributable to Stagwell Inc. common shareholders$3,235 $22,226 $25,461 
Net income attributable to Class C shareholders— 40,500 40,500 
Net income attributable to Stagwell Inc. and Class C shareholders and adjusted net income$3,235 $62,726 $65,961 
Weighted average number of common shares outstanding115,147 2,567 117,714 
Weighted average number of common Class C shares outstanding— 151,649 151,649 
Weighted average number of shares outstanding115,147 154,216 269,363 
Diluted EPS and Adjusted Diluted EPS (1)
$0.03 $0.24 
Adjustments to Net income
Amortization$30,572 
Stock-based compensation13,235 
Deferred acquisition consideration15,045 
Other items, net12,620 
71,472 
Adjusted tax expense(20,040)
51,432 
Net income attributable to Class C shareholders
11,294 
$62,726 
Allocation of adjustments to Net income
Net income attributable to Stagwell Inc. common shareholders - add-backs$22,226 
Net income attributable to Class C shareholders - add-backs29,206 
Net income attributable to Class C shareholders11,294 
40,500 
$62,726 

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.

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SCHEDULE 8
STAGWELL INC.
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)

For the Year Ended December 31, 2024
GAAPAdjustmentsNon-GAAP
Net income attributable to Stagwell Inc. common shareholders
$2,259 $80,403 $82,662 
Net income attributable to Class C shareholders— 123,942 123,942 
Net income attributable to Stagwell Inc. and Class C and adjusted net income
$2,259 $204,345 $206,604 
Weighted average number of common shares outstanding115,752 2,234 117,986 
Weighted average number of common Class C shares outstanding— 151,649 151,649 
Weighted average number of shares outstanding115,752 153,883 269,635 
Diluted EPS and Adjusted Diluted EPS (1)
$0.02 $0.77 
Adjustments to Net Income
Amortization$122,442 
Impairment and other losses1,715 
Stock-based compensation52,161 
Deferred acquisition consideration22,995 
Other items, net49,196 
248,509 
Adjusted tax expense(61,308)
187,201 
Net income attributable to Class C shareholders17,144 
$204,345 
Allocation of adjustments to Net income
Net income attributable to Stagwell Inc. common shareholders - add-backs$80,403 
Net income attributable to Class C shareholders - add-backs106,798 
Net income attributable to Class C shareholders17,144 
123,942 
$204,345 

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.



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SCHEDULE 9
STAGWELL INC.
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)


For the Three Months Ended December 31, 2023

GAAPAdjustmentsNon-GAAP
Net income (loss) attributable to Stagwell Inc. common shareholders$127 $(4,705)$(4,578)
Net income attributable to Class C shareholders— 35,780 35,780 
Net income attributable to Stagwell Inc. and Class C and adjusted net income$127 $31,075 $31,202 
Weighted average number of common shares outstanding119,621 — 119,621 
Weighted average number of common Class C shares outstanding— 151,649 151,649 
Weighted average number of shares outstanding119,621 151,649 271,270 
Diluted EPS and Adjusted Diluted EPS (1)
$— $0.12 
Adjustments to Net income (loss)
Amortization
$27,231 
Impairment and other losses833 
Stock-based compensation22,564 
Deferred acquisition consideration3,338 
Gain on sale of business(94,505)
Other items, net15,078 
(25,461)
Adjusted tax expense
14,768 
(10,693)
Net income attributable to Class C shareholders41,768 
$31,075 
Allocation of adjustments to Net income (loss)
Net loss attributable to Stagwell Inc. common shareholders - add-backs$(4,705)
Net loss attributable to Class C shareholders - add-backs(5,988)
Net income attributable to Class C shareholders41,768 
35,780 
$31,075 

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.
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SCHEDULE 10
STAGWELL INC.
UNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE)
(amounts in thousands, except per share amounts)

For the Year Ended December 31, 2023
GAAPAdjustmentsNon-GAAP
Net income attributable to Stagwell Inc. common shareholders
$134 $52,712 $52,846 
Net income attributable to Class C shareholders— 106,153 106,153 
Net income attributable to Stagwell Inc. and Class C and adjusted net income
$134 $158,865 $158,999 
Weighted average number of common shares outstanding122,170 3,628 125,798 
Weighted average number of common Class C shares outstanding— 154,972 154,972 
Weighted average number of shares outstanding122,170 158,600 280,770 
Diluted EPS and Adjusted Diluted EPS (1)
$— $0.57 
Adjustments to Net income
Amortization
$113,835 
Impairment and other losses11,395 
Stock-based compensation57,179 
Deferred acquisition consideration13,060 
Gain on sale of business(94,505)
Other items, net45,147 
146,111 
Adjusted tax expense(26,312)
119,799 
Net income attributable to Class C shareholders39,066 
$158,865 
Allocation of adjustments to Net income
Net income attributable to Stagwell Inc. common shareholders$52,712 
Net income to attributable to Class C shareholders - add-backs67,087 
Net income attributable to Class C shareholders
39,066 
106,153 
$158,865 

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.
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SCHEDULE 11
STAGWELL INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
 December 31, 2024December 31, 2023
 
ASSETS  
Current Assets  
Cash and cash equivalents$131,339 $119,737 
Accounts receivable, net716,415 697,178 
Expenditures billable to clients173,194 114,097 
Other current assets114,200 94,054 
Total Current Assets1,135,148 1,025,066 
Fixed assets, net72,706 77,825 
Right-of-use assets - operating leases219,400 254,278 
Goodwill1,554,146 1,498,815 
Other intangible assets, net836,783 818,220 
Other assets90,038 92,843 
Total Assets$3,908,221 $3,767,047 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS ("RNCI"), AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable$449,347 $414,980 
Accrued media245,883 291,777 
Accruals and other liabilities265,356 233,046 
Advance billings294,609 301,674 
Current portion of lease liabilities - operating leases60,195 65,899 
Current portion of deferred acquisition consideration51,906 66,953 
Total Current Liabilities1,367,296 1,374,329 
Long-term debt1,353,624 1,145,828 
Long-term portion of deferred acquisition consideration50,209 34,105 
Long-term lease liabilities - operating leases245,397 281,307 
Deferred tax liabilities, net47,239 40,509 
Other liabilities59,139 54,905 
Total Liabilities3,122,904 2,930,983 
Redeemable Noncontrolling Interests8,412 10,792 
Commitments, Contingencies and Guarantees
Shareholders' Equity
Common shares - Class A & B115 118 
Common shares - Class C2 2 
Paid-in capital343,647 348,494 
Retained earnings11,740 21,148 
Accumulated other comprehensive loss(23,773)(13,067)
Stagwell Inc. Shareholders' Equity331,731 356,695 
Noncontrolling interests445,174 468,577 
Total Shareholders' Equity776,905 825,272 
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity
$3,908,221 $3,767,047 
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SCHEDULE 12
STAGWELL INC.
UNAUDITED SUMMARY CASH FLOW DATA
(amounts in thousands)
 Year Ended December 31,
20242023
Cash flows from operating activities:
Net income $25,044 $41,642 
Adjustments to reconcile net income to cash provided by operating activities:
Stock-based compensation52,161 57,179 
Depreciation and amortization151,652 142,831 
Amortization of right-of-use lease assets and lease liability interest
75,117 76,653 
Impairment and other losses1,715 11,395 
Deferred income taxes(10,686)19,443 
Adjustment to deferred acquisition consideration23,005 13,060 
Gain on sale of business— (94,505)
Other, net7,622 8,313 
Changes in working capital:
Accounts receivable8,465 (58,704)
Expenditures billable to clients(54,350)(21,477)
Other assets(6,200)1,153 
Accounts payable24,438 52,837 
Accrued expenses and other liabilities(28,658)(24,647)
Advance billings(22,651)(41,137)
Current portion of lease liabilities - operating leases(83,905)(87,629)
Deferred acquisition related payments(19,910)(15,400)
Net cash provided by operating activities
142,859 81,007 
Cash flows from investing activities:
Capital expenditures(18,912)(14,238)
Acquisitions, net of cash acquired(103,254)(23,339)
Capitalized software(35,094)(28,175)
Proceeds from sale of business, net— 229,484 
Other(5,212)(7,781)
Net cash (used in) provided by investing activities
(162,472)155,951 
Cash flows from financing activities:
Repayment of borrowings under revolving credit facility(1,755,000)(1,986,500)
Proceeds from borrowings under revolving credit facility1,960,000 1,945,500 
Shares repurchased and cancelled(108,249)(223,835)
Distributions to noncontrolling interests(26,723)(24,964)
Payment of deferred consideration(29,774)(49,221)
Purchase of noncontrolling interest(3,316)— 
Debt issuance costs— (844)
Net cash provided by (used in) financing activities
36,938 (339,864)
Effect of exchange rate changes on cash and cash equivalents(5,723)2,054 
Net increase (decrease) in cash and cash equivalents11,602 (100,852)
Cash and cash equivalents at beginning of period119,737 220,589 
Cash and cash equivalents at end of period$131,339 $119,737 

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