Operating margins have faced severe pressure, contracting from 8.2% in 2025Q3 to a marginal 1.4% in 2026Q1 as administrative costs scaled disproportionately to revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.96B | 2.91B | 2.84B | 2.53B | 2.69B | 1.47B | 888.03M | 628.67M | 1.48B | 1.51B | 1.39B | 1.33B | 1.22B | 1.15B | 1.07B | 943.27M | 697.83M | 545.92M | 584.65M | 547.32M | 423.67M | 443.46M | 316.81M | 312.72M | 599.2M | 699.3M | 778.11M | 456.58M | 309.86M | 195.71M | 170.1M |
| Revenue Growth % | 4.91% | 2.39% | 12.43% | -5.98% | 82.92% | 65.46% | 41.26% | -57.41% | -2.48% | 9.24% | 4.49% | 8.4% | 6.5% | 7.3% | 13.51% | 35.17% | 27.82% | -6.62% | 6.82% | 29.18% | -4.46% | 39.98% | 1.31% | -47.81% | -14.31% | -10.13% | 70.42% | 47.35% | 58.33% | 15.05% | 27.55% |
| Cost of Goods Sold | 1.94B | 1.85B | 1.84B | 1.62B | 1.67B | 906.86M | 571.59M | 376.28M | 1.04B | 1.07B | 982.58M | 931.94M | 798.52M | 754.49M | 739.12M | 674.46M | 477.49M | 354.31M | 392.14M | 351.85M | 246.8M | 261.69M | 203M | 276.16M | 311.32M | 350.69M | 401.82M | 200.47M | 157.65M | 109.59M | 99.5M |
| COGS % of Revenue | - | 63.46% | 64.87% | 64.15% | 62.27% | 61.72% | 64.37% | 59.85% | 70.27% | 70.48% | 70.9% | 70.27% | 65.26% | 65.67% | 69.03% | 71.5% | 68.43% | 64.9% | 67.07% | 64.29% | 58.25% | 59.01% | 64.08% | 88.31% | 51.96% | 50.15% | 51.64% | 43.91% | 50.88% | 56% | 58.49% |
| Gross Profit | 1.02B | 1.06B | 998.24M | 906M | 1.01B | 562.51M | 316.44M | 252.39M | 438.81M | 446.83M | 403.21M | 394.32M | 424.99M | 394.39M | 331.59M | 268.81M | 220.33M | 191.61M | 192.5M | 195.47M | 176.87M | 181.78M | 113.81M | 36.56M | 287.88M | 348.61M | 376.29M | 256.11M | 152.21M | 86.12M | 70.6M |
| Gross Margin % | 34.57% | 36.54% | 35.13% | 35.85% | 37.73% | 38.28% | 35.63% | 40.15% | 29.73% | 29.52% | 29.1% | 29.73% | 34.74% | 34.33% | 30.97% | 28.5% | 31.57% | 35.1% | 32.93% | 35.71% | 41.75% | 40.99% | 35.92% | 11.69% | 48.04% | 49.85% | 48.36% | 56.09% | 49.12% | 44% | 41.5% |
| Gross Profit Growth % | - | 6.49% | 10.18% | -10.67% | 80.3% | 77.76% | 25.38% | -42.48% | -1.79% | 10.82% | 2.25% | -7.22% | 7.76% | 18.94% | 23.35% | 22% | 14.99% | -0.46% | -1.52% | 10.51% | -2.7% | 59.72% | 211.3% | -87.3% | -17.42% | -7.36% | 46.93% | 68.26% | 76.76% | 21.97% | 26.34% |
| Operating Expenses | 873.31M | 904.04M | 865.17M | 815.48M | 854.99M | 517.78M | 232.7M | 211.69M | 352.74M | 304.68M | 295.64M | 252.06M | 337.25M | 426.38M | 349.5M | 259.51M | 191.41M | 171.37M | 172.16M | 172.45M | 163.59M | 159.19M | 110.99M | 12.62M | 335.66M | 216.72M | 325.69M | 197.64M | 117.91M | 71.43M | 57.9M |
| OpEx % of Revenue | - | 31.08% | 30.45% | 32.27% | 31.81% | 35.24% | 26.2% | 33.67% | 23.89% | 20.13% | 21.33% | 19.01% | 27.56% | 37.11% | 32.64% | 27.51% | 27.43% | 31.39% | 29.45% | 31.51% | 38.61% | 35.9% | 35.03% | 4.03% | 56.02% | 30.99% | 41.86% | 43.29% | 38.05% | 36.5% | 34.04% |
| Selling, General & Admin | 540.12M | 0 | 711.8M | 661.25M | 601.54M | 424.04M | 191.68M | 175.96M | 352.74M | 304.68M | 295.64M | 252.06M | 290.07M | 386.78M | 303.08M | 0 | 156.92M | 136.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 274.27M | 290.65M | 169.77M | 101.01M | 61.14M | 50.2M |
| SG&A % of Revenue | - | - | 25.05% | 26.17% | 22.38% | 28.86% | 21.58% | 27.99% | 23.89% | 20.13% | 21.33% | 19.01% | 23.71% | 33.67% | 28.31% | - | 22.49% | 25.08% | - | - | - | - | - | - | - | 39.22% | 37.35% | 37.18% | 32.6% | 31.24% | 29.51% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 904.04M | 153.37M | 154.23M | 253.45M | 93.74M | 41.02M | 35.73M | 0 | 0 | 0 | 0 | 47.17M | 39.6M | 46.41M | 259.51M | 34.48M | 34.47M | 172.16M | 172.45M | 163.59M | 159.19M | 110.99M | 12.62M | 335.66M | -57.55M | 35.04M | 27.87M | 16.9M | 10.29M | 7.7M |
| Operating Income | 150.36M | 159M | 133.07M | 90.53M | 159.23M | 44.73M | 83.74M | 40.7M | 86.07M | 142.15M | 107.57M | 142.26M | 87.75M | -31.99M | -17.91M | 9.31M | 28.93M | 20.24M | 20.34M | 23.02M | 13.29M | 22.59M | 2.82M | 23.94M | -47.78M | 131.88M | 50.6M | 58.47M | 34.31M | 14.69M | 12.7M |
| Operating Margin % | 5.08% | 5.47% | 4.68% | 3.58% | 5.92% | 3.04% | 9.43% | 6.47% | 5.83% | 9.39% | 7.76% | 10.73% | 7.17% | -2.78% | -1.67% | 0.99% | 4.15% | 3.71% | 3.48% | 4.21% | 3.14% | 5.09% | 0.89% | 7.66% | -7.97% | 18.86% | 6.5% | 12.81% | 11.07% | 7.5% | 7.47% |
| Operating Income Growth % | - | 19.49% | 46.99% | -43.15% | 256.01% | -46.59% | 105.77% | -52.72% | -39.45% | 32.15% | -24.38% | 62.12% | 374.28% | -78.65% | -292.41% | -67.83% | 42.9% | -0.49% | -11.61% | 73.23% | -41.18% | 700.43% | -88.21% | 150.11% | -136.23% | 160.63% | -13.46% | 70.44% | 133.6% | 15.63% | 74.03% |
| EBITDA | 358.02M | 397.75M | 359.84M | 310.01M | 367.87M | 181.21M | 124.77M | 76.42M | 132.27M | 185.62M | 154.01M | 194.48M | 134.92M | 7.61M | 28.51M | 49.54M | 63.41M | 54.72M | 56.1M | 54.59M | 40.26M | 51.38M | 22.78M | 36.56M | -31.59M | 170.14M | 85.64M | 86.34M | 51.21M | 24.98M | 20.4M |
| EBITDA Margin % | 12.09% | 13.67% | 12.66% | 12.27% | 13.69% | 12.33% | 14.05% | 12.16% | 8.96% | 12.26% | 11.11% | 14.66% | 11.03% | 0.66% | 2.66% | 5.25% | 9.09% | 10.02% | 9.59% | 9.97% | 9.5% | 11.59% | 7.19% | 11.69% | -5.27% | 24.33% | 11.01% | 18.91% | 16.53% | 12.76% | 11.99% |
| EBITDA Growth % | 5.74% | 10.53% | 16.07% | -15.73% | 103.01% | 45.24% | 63.25% | -42.22% | -28.74% | 20.52% | -20.81% | 44.14% | 1673.41% | -73.31% | -42.46% | -21.87% | 15.89% | -2.46% | 2.76% | 35.61% | -21.64% | 125.56% | -37.7% | 215.72% | -118.57% | 98.67% | -0.82% | 68.62% | 105.03% | 22.43% | 75.92% |
| D&A (Non-Cash Add-back) | 207.66M | 238.74M | 226.77M | 219.48M | 208.64M | 136.49M | 41.02M | 35.73M | 46.2M | 43.47M | 46.45M | 52.22M | 47.17M | 39.6M | 46.41M | 40.24M | 34.48M | 34.47M | 35.75M | 31.58M | 26.97M | 28.79M | 19.95M | 12.62M | 16.19M | 38.25M | 35.04M | 27.87M | 16.9M | 10.29M | 7.7M |
| EBIT | 146.26M | 159.47M | 130.04M | 181.71M | 151.65M | 91.45M | 83.56M | 39.55M | -13.42M | 151.34M | 15.89M | 37.94M | 70.37M | -90.36M | -18.51M | 7.88M | 29.58M | 18.55M | 35.33M | 20.61M | 15.56M | 20.86M | 20.18M | 28.09M | 134.27M | -46.81M | 65.06M | 0 | 30.28M | 0 | 12.2M |
| Net Interest Income | -96.35M | -96.44M | -92.32M | -90.64M | -76.06M | -31.89M | -6.22M | -8.66M | 6.41M | 65.88M | -65.05M | -57.44M | -54.85M | -45M | -46.31M | -41.78M | -33.28M | -21.75M | -13.26M | -11.95M | -10.76M | -8.89M | -8.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.41M | 759K | 808K | 467K | 418K | 230K | 259K | 139K | 205K | 344K | 1.74M | 1.73M | 514K | 369K | 685K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 96.35M | 96.44M | 92.32M | 90.64M | 76.06M | 31.89M | 6.22M | 8.66M | 0 | -65.12M | 65.86M | 57.9M | 55.27M | 45.23M | 46.57M | 41.92M | 33.49M | 22.1M | 15M | 13.67M | 11.28M | 9.26M | 8.79M | 11.5M | 17.8M | 31.78M | 31.58M | 0 | 14.99M | 0 | 6.3M |
| Other Income/Expense | -94.79M | -90.57M | -94.84M | -8.33M | -83.72M | 14.59M | -6.34M | -9.8M | -166.48M | -55.07M | -157.28M | -159.67M | -72.64M | -103.6M | -47.17M | -43.34M | -32.83M | -23.79M | -12K | -16.07M | -9.01M | -30.54M | 8.57M | -7.36M | 164.25M | -210.46M | -17.12M | -33.28M | -19.01M | -6.49M | -6.8M |
| Pretax Income | 55.57M | 68.79M | 38.23M | 82.2M | 75.51M | 59.32M | 77.4M | 30.89M | -80.41M | 87.08M | -49.72M | -17.42M | 15.11M | -135.59M | -65.08M | -34.04M | -3.9M | -3.55M | 20.33M | 6.94M | 4.28M | 8.52M | 9.06M | 16.59M | 116.47M | -78.58M | 33.49M | 25.19M | 15.29M | 8.19M | 5.9M |
| Pretax Margin % | 1.88% | 2.36% | 1.35% | 3.25% | 2.81% | 4.04% | 8.72% | 4.91% | -5.45% | 5.75% | -3.59% | -1.31% | 1.23% | -11.8% | -6.08% | -3.61% | -0.56% | -0.65% | 3.48% | 1.27% | 1.01% | 1.92% | 2.86% | 5.3% | 19.44% | -11.24% | 4.3% | 5.52% | 4.94% | 4.19% | 3.47% |
| Income Tax | 33.66M | 38.27M | 13.18M | 40.56M | 25.46M | 23.4M | 5.94M | 10M | 31.6M | -168.06M | -9.4M | 5.66M | 12.42M | -4.29M | 9.55M | 41.73M | -165K | 8.54M | 2.4M | 5.62M | 2.56M | -2.16M | 243K | 6.59M | 22.27M | -16.17M | 5.96M | 9.3M | 6.14M | 2.8M | 800.01K |
| Effective Tax Rate % | 60.57% | 55.64% | 34.48% | 49.34% | 33.72% | 39.45% | 7.67% | 32.38% | -39.3% | -193% | 18.92% | -32.52% | 82.22% | 3.16% | -14.68% | -122.62% | 4.23% | -240.59% | 11.79% | 80.96% | 59.86% | -25.31% | 2.68% | 39.72% | 19.12% | 20.58% | 17.79% | 36.94% | 40.13% | 34.15% | 13.56% |
| Net Income | 19.05M | 29.1M | 2.26M | 134K | 19.92M | 21.04M | 56.36M | 18.4M | -123.73M | 241.85M | -45.84M | -32.15M | -24.06M | -148.86M | -85.44M | -84.67M | -15.44M | -18.32M | 133K | -26.36M | -33.54M | -7.95M | -2.16M | 11.04M | 94.21M | -149.95M | 27.53M | 15.88M | 9.15M | -14.59M | 5.1M |
| Net Margin % | 0.64% | 1% | 0.08% | 0.01% | 0.74% | 1.43% | 6.35% | 2.93% | -8.38% | 15.98% | -3.31% | -2.42% | -1.97% | -12.96% | -7.98% | -8.98% | -2.21% | -3.36% | 0.02% | -4.82% | -7.92% | -1.79% | -0.68% | 3.53% | 15.72% | -21.44% | 3.54% | 3.48% | 2.95% | -7.45% | 3% |
| Net Income Growth % | 2952.08% | 1188.22% | 1585.82% | -99.33% | -5.31% | -62.67% | 206.22% | 114.87% | -151.16% | 627.6% | -42.58% | -33.64% | 83.84% | -74.23% | -0.9% | -448.41% | 15.74% | -13877.44% | 100.5% | 21.42% | -321.93% | -268.52% | -119.53% | -88.28% | 162.83% | -644.67% | 73.34% | 73.49% | 162.77% | -385.99% | 96.21% |
| Net Income (Continuing) | 22M | 30.63M | 25.04M | 41.64M | 50.04M | 35.92M | 71.46M | 20.73M | -112.01M | 255.14M | -40.31M | -23.08M | 2.69M | -131.3M | -74.63M | -75.77M | -3.74M | -12.08M | 17.93M | 1.32M | 1.72M | 10.71M | 10.57M | 11.04M | 94.21M | -149.95M | 27.53M | 15.88M | 9.15M | -14.59M | 5.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.07M | -5.16M | -3.08M | -5.43M | -1.36M | -2.49M | -876K | -10.02M | -7.28M | -18.72M | 1.13M | -7.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 24.32M | 24.97M | 453.59M | 479.37M | 469.27M | 551.65M | 40.39M | 77.23M | 116.06M | 120.92M | 125.81M | 148.55M | 194.95M | 148.53M | 117.95M | 107.43M | 77.56M | 33.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.08 | 0.11 | 0.02 | 0.00 | 0.22 | 0.40 | 0.73 | -0.25 | -2.16 | 4.36 | -0.89 | -0.64 | -0.49 | -3.16 | -1.85 | -1.94 | -0.37 | -0.45 | 0.00 | -0.70 | -0.94 | -0.23 | -0.06 | 0.33 | 2.46 | -5.92 | 1.10 | 0.60 | 0.37 | -0.85 | 0.28 |
| EPS Growth % | 975.61% | 464.1% | - | -99.5% | -45% | -45.21% | 392% | 88.43% | -149.54% | 589.89% | -39.06% | -30.61% | 84.49% | -70.81% | 4.64% | -424.32% | 17.78% | - | 100.46% | 25.53% | -308.7% | -265.08% | -119.09% | -86.59% | 141.55% | -638.18% | 83.33% | 62.16% | 143.53% | -403.57% | 64.71% |
| EPS (Basic) | - | 0.13 | 0.02 | 0.00 | 0.53 | 0.40 | 0.73 | -0.25 | -2.16 | 4.38 | -0.89 | -0.64 | -0.49 | -3.16 | -1.85 | -1.94 | -0.37 | -0.45 | 0.00 | -0.70 | -0.94 | -0.23 | -0.07 | 0.37 | 3.68 | -5.92 | 1.10 | 0.60 | 0.40 | -0.85 | 0.30 |
| Diluted Shares Outstanding | 250.77M | 264.52M | 115.75M | 122.17M | 124.06M | 90.43M | 77.57M | 69.13M | 57.22M | 55.48M | 51.35M | 49.88M | 49.55M | 47.11M | 46.09M | 43.68M | 42.24M | 41.09M | 41.15M | 37.5M | 35.81M | 34.95M | 34.23M | 33.8M | 38.25M | 25.33M | 25.07M | 26.61M | 24.57M | 17.23M | 18.21M |
| Basic Shares Outstanding | 250.77M | 220.61M | 110.89M | 117.26M | 124.26M | 90.43M | 77.57M | 69.13M | 57.22M | 55.26M | 51.35M | 49.88M | 49.55M | 47.11M | 46.09M | 43.68M | 42.24M | 41.09M | 40.15M | 37.5M | 35.81M | 34.95M | 32.03M | 30.11M | 25.63M | 25.33M | 25.07M | 26.61M | 22.93M | 17.23M | 17M |
| Dividend Payout Ratio | - | - | - | - | - | 1108.59% | 205.02% | 218.5% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Thin margins and leverage
According to the provided quarterly income statements, Stagwell's revenue growth has fluctuated significantly, ranging from a contraction of 8.1% in 2023Q4 to a peak expansion of 21.2% in 2024Q4, ultimately settling at a 8.0% growth rate as of the most recent 2026Q1 reporting period.
The inconsistency in top-line performance suggests that the company's reliance on project-based digital transformation contracts creates inherent quarterly lumpiness. Investors should monitor whether the recent 8.0% growth indicates a sustainable recovery or merely a temporary rebound from prior period volatility.
Based on reported financial figures, Stagwell achieved a gross margin of 28.4% in 2026Q1, which represents a notable contraction from the 37.6% peak observed in 2025Q4, highlighting the sensitivity of the company's cost structure to shifts in service mix and pass-through media expenses.
The compression in gross margins suggests that the company struggles to maintain pricing power when project volumes shift toward lower-margin media buying. This volatility warrants further investigation into whether the firm can successfully transition toward higher-margin software revenue within the Marketing Cloud.
As reported in financial statements, Stagwell's operating margin plummeted to 1.4% in 2026Q1, a sharp decline from the 8.2% margin achieved in 2025Q3, indicating that the company's administrative and integration costs are scaling disproportionately relative to its gross profit generation during periods of revenue deceleration.
The inability to maintain operating leverage suggests that the current organizational structure remains burdened by high fixed costs from its aggressive acquisition strategy. This appears to leave the firm with minimal buffer to absorb operational shocks or unexpected increases in personnel expenses.
Based on the provided data, Stagwell's net income has frequently dipped into negative territory, including a $13.0 million loss in 2026Q1, while stock-based compensation remains a persistent expense, reaching $14.2 million in the same period, which significantly dilutes the underlying economic reality of reported earnings.
The recurring presence of stock-based compensation alongside net losses suggests that shareholders are bearing the cost of talent retention without a corresponding bottom-line benefit. Investors should monitor whether these non-cash charges continue to mask the true operational profitability of the agency network.
As indicated by the 2026Q1 net margin of -1.8%, the company's thin profitability profile appears highly vulnerable to even minor revenue misses, challenging the narrative that the 'challenger' agency model provides a superior, more efficient alternative to traditional, larger-scale advertising holding companies.
Short-sellers may focus on the company's inability to consistently generate positive net income despite its aggressive growth strategy. This suggests that the firm's reliance on M&A to drive scale may be masking underlying inefficiencies that could become more pronounced in a tightening economic environment.
Quick answers to the most common questions about buying STGW stock.
For fiscal year 2025, Stagwell Inc. (STGW) reported total revenue of $2.91B. This represents a 1610.1% increase compared to $170.1M in 1996.
Stagwell Inc. (STGW) is profitable, generating $29.1M in net income for the fiscal year ending 2025 with a net profit margin of 1.0%.
Stagwell Inc. (STGW) reported an operating income of $159.0M, resulting in an operating profit margin of 5.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Stagwell Inc. (STGW) generated $1.06B in gross profit for the year, representing a gross profit margin of 36.5%. This demonstrates the company's core pricing power and production efficiency.