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Stagwell reported 6% net revenue growth in the third quarter of 2025, led by double-digit gains in its non-advocacy businesses and stronger profit margins as it shifts its focus from acquisitions to technology. The holding company also reaffirmed its full-year guidance, saying that cost savings and new business helped offset a slow down in advocacy work. The Numbers $743 million – Q3 revenue (+4% year over year) $615 million – Net revenue (+6% year over year) 19% – Adjusted EBITDA margin, Stagwell’s strongest in two years Watercooler Talk CEO Mark Penn opened the earnings call on Thursday (Nov. 6) declaring Stagwell “one of the winners” in a marketing industry that’s rapidly reshaping around AI. Its strategy includes developing internal tech, such as the 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-language models and image- and video-generation tools in one platform. Penn also cited the Stagwell Media Platform, launched in mid-2025 to unify media buying across its agencies. Penn also spoke about Stagwell’s partnership with Palantir, in which the holding company is connecting its marketing data with Palantir’s analytics engine to creating a single AI system for audience targeting, creative testing, and campaign management. Penn reiterated that Stagwell may spin off its Marketing Cloud unit if its value isn’t reflected in the company’s stock. “We believe it has the potential to generate hundreds of millions of dollars,” he said. The focus on AI is already driving efficiencies for Stagwell: The company has saved $27 million this year and expects to save $80 million to $100 million annually by 2026. CFO Ryan Green also alluded to “an active focus on labor efficiency and cost discipline.” Advocacy work dragged on Stagwell’s earnings in Q3, but Penn said next year’s election cycle should provide a boost. “This quarter again demonstrates how Stagwell is a winner in an industry undergoing significant transformation,” said Penn.
