Stagwell IncSTGW
Stagwell Inc Segments Disclosure
18. 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 excluding non-operating income or expense to achieve operating income, 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 now has five operating and reportable segments: “Marketing Services,” “Digital Transformation,” “Media & Commerce,” “Communications,” and “The Marketing Cloud.” Prior years presented have
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 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 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, owned media platforms Reach TV, and strategy agency Assembly Global, 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, 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, strategic communications agencies Allison and Consulum, and advocacy services agencies SKDK and Targeted Victory.
•The Marketing Cloud segment delivers a comprehensive suite of technology solutions for in-house marketers, combining SaaS and DaaS offerings. 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. 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 Smart Assets.
“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.
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Marketing Services | Digital Transformation | Media & Commerce | Communications | The Marketing Cloud | Total | |||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Revenue (1) | $ | 1,134,821 | $ | 393,499 | $ | 690,675 | $ | 592,577 | $ | 106,537 | $ | 2,918,109 | ||||||||||||||||||||||||||
| Billable costs | 175,145 | 26,327 | 80,655 | 199,146 | 51 | 481,324 | ||||||||||||||||||||||||||||||||
| Staff costs | 565,484 | 247,967 | 363,031 | 229,356 | 68,647 | 1,474,485 | ||||||||||||||||||||||||||||||||
| Administrative costs | 105,801 | 27,267 | 93,003 | 50,841 | 17,613 | 294,525 | ||||||||||||||||||||||||||||||||
| Unbillable and other costs * | 78,333 | 1,305 | 64,833 | 9,300 | 22,689 | 176,460 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 210,058 | 90,633 | 89,153 | 103,934 | (2,463) | 491,315 | ||||||||||||||||||||||||||||||||
| Corporate, eliminations and other | (69,462) | |||||||||||||||||||||||||||||||||||||
| Total Consolidated Adjusted EBITDA | 421,853 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 54,095 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 171,249 | |||||||||||||||||||||||||||||||||||||
| Deferred acquisition consideration | (7,467) | |||||||||||||||||||||||||||||||||||||
| Impairment and other losses | 466 | |||||||||||||||||||||||||||||||||||||
| Other items, net | 44,509 | |||||||||||||||||||||||||||||||||||||
| Operating income | 159,001 | |||||||||||||||||||||||||||||||||||||
| Other income (expenses): | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (96,438) | |||||||||||||||||||||||||||||||||||||
| Foreign exchange, net | (1,640) | |||||||||||||||||||||||||||||||||||||
| Loss on sale of business | (2,245) | |||||||||||||||||||||||||||||||||||||
| Bargain purchase gain | 9,937 | |||||||||||||||||||||||||||||||||||||
| Other, net | 171 | |||||||||||||||||||||||||||||||||||||
| (90,215) | ||||||||||||||||||||||||||||||||||||||
| Income before income taxes and equity in earnings of non-consolidated affiliates | 68,786 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 38,271 | |||||||||||||||||||||||||||||||||||||
| Income before equity in earnings of non-consolidated affiliates | 30,515 | |||||||||||||||||||||||||||||||||||||
| Equity in income of non-consolidated affiliates | 111 | |||||||||||||||||||||||||||||||||||||
| Net income | 30,626 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling and redeemable noncontrolling interests | (1,525) | |||||||||||||||||||||||||||||||||||||
| Net income attributable to Stagwell Inc. common shareholders | $ | 29,101 | ||||||||||||||||||||||||||||||||||||
(1) Total consolidated revenue of $2,909,000 reflects revenue generated by the Other business components and intercompany elimination of $9,109.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, and also includes travel related expenses.
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
| Marketing Services | Digital Transformation | Media & Commerce | Communications | The Marketing Cloud | Total | |||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Revenue (1) | $ | 1,077,607 | $ | 335,656 | $ | 695,402 | $ | 703,065 | $ | 32,265 | $ | 2,843,995 | ||||||||||||||||||||||||||
| Billable costs | 172,490 | 11,473 | 93,899 | 267,439 | — | 545,301 | ||||||||||||||||||||||||||||||||
| Staff costs | 557,776 | 227,522 | 356,684 | 232,096 | 28,686 | 1,402,764 | ||||||||||||||||||||||||||||||||
| Administrative costs | 101,145 | 21,809 | 83,572 | 47,335 | 9,777 | 263,638 | ||||||||||||||||||||||||||||||||
| Unbillable and other costs * | 70,924 | 1,393 | 65,188 | 10,840 | 6,117 | 154,462 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 175,272 | 73,459 | 96,059 | 145,355 | (12,315) | 477,830 | ||||||||||||||||||||||||||||||||
| Corporate, eliminations and other | (60,382) | |||||||||||||||||||||||||||||||||||||
| Total Consolidated Adjusted EBITDA | 417,448 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 52,161 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 151,652 | |||||||||||||||||||||||||||||||||||||
| Deferred acquisition consideration | 22,995 | |||||||||||||||||||||||||||||||||||||
| Impairment and other losses | 1,715 | |||||||||||||||||||||||||||||||||||||
| Other items, net | 55,857 | |||||||||||||||||||||||||||||||||||||
| Operating income | 133,068 | |||||||||||||||||||||||||||||||||||||
| Other income (expenses): | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (92,317) | |||||||||||||||||||||||||||||||||||||
| Foreign exchange, net | (1,656) | |||||||||||||||||||||||||||||||||||||
| Other, net | (1,372) | |||||||||||||||||||||||||||||||||||||
| (95,345) | ||||||||||||||||||||||||||||||||||||||
| Income before income taxes and equity in earnings of non-consolidated affiliates | 37,723 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 13,182 | |||||||||||||||||||||||||||||||||||||
| Income before equity in earnings of non-consolidated affiliates | 24,541 | |||||||||||||||||||||||||||||||||||||
| Equity in income of non-consolidated affiliates | 503 | |||||||||||||||||||||||||||||||||||||
| Net income | 25,044 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling and redeemable noncontrolling interests | (22,785) | |||||||||||||||||||||||||||||||||||||
| Net income attributable to Stagwell Inc. common shareholders | $ | 2,259 | ||||||||||||||||||||||||||||||||||||
(1) Total consolidated revenue of $2,841,216 reflects an intercompany elimination of $2,779.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, and also includes travel related expenses.
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
| Marketing Services | Digital Transformation | Media & Commerce | Communications | The Marketing Cloud | Total | |||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Revenue (1) | $ | 1,013,269 | $ | 323,962 | $ | 662,200 | $ | 502,689 | $ | 25,752 | $ | 2,527,872 | ||||||||||||||||||||||||||
| Billable costs | 120,245 | 9,657 | 92,696 | 152,125 | — | 374,723 | ||||||||||||||||||||||||||||||||
| Staff costs | 562,532 | 213,528 | 343,354 | 212,999 | 20,036 | 1,352,449 | ||||||||||||||||||||||||||||||||
| Administrative costs | 103,332 | 20,185 | 76,797 | 41,816 | 4,596 | 246,726 | ||||||||||||||||||||||||||||||||
| Unbillable and other costs * | 71,856 | 658 | 55,204 | 9,575 | 6,074 | 143,367 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 155,304 | 79,934 | 94,149 | — | 86,174 | (4,954) | 410,607 | |||||||||||||||||||||||||||||||
| Corporate, eliminations and other | (44,575) | |||||||||||||||||||||||||||||||||||||
| Total Consolidated Adjusted EBITDA | 366,032 | |||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 57,179 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 142,831 | |||||||||||||||||||||||||||||||||||||
| Deferred acquisition consideration | 13,060 | |||||||||||||||||||||||||||||||||||||
| Impairment and other losses | 11,395 | |||||||||||||||||||||||||||||||||||||
| Other items, net | 51,040 | |||||||||||||||||||||||||||||||||||||
| Operating income | 90,527 | |||||||||||||||||||||||||||||||||||||
| Other income (expenses): | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (90,644) | |||||||||||||||||||||||||||||||||||||
| Foreign exchange, net | (2,960) | |||||||||||||||||||||||||||||||||||||
| Gain on sale of business | 94,505 | |||||||||||||||||||||||||||||||||||||
| Other, net | (359) | |||||||||||||||||||||||||||||||||||||
| 542 | ||||||||||||||||||||||||||||||||||||||
| Income before income taxes and equity in earnings of non-consolidated affiliates | 91,069 | |||||||||||||||||||||||||||||||||||||
| Income tax expense | 40,557 | |||||||||||||||||||||||||||||||||||||
| Income before equity in earnings of non-consolidated affiliates | 50,512 | |||||||||||||||||||||||||||||||||||||
| Equity in income of non-consolidated affiliates | (8,870) | |||||||||||||||||||||||||||||||||||||
| Net income | 41,642 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling and redeemable noncontrolling interests | (41,508) | |||||||||||||||||||||||||||||||||||||
Net income attributable to Stagwell Inc. common shareholders | $ | 134 | ||||||||||||||||||||||||||||||||||||
(1) Total consolidated revenue of $2,527,177 reflects an intercompany elimination of $695.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, panels and survey costs, 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) was $286.6 million ($211.6 million in the United States and $75.0 million in all other countries) as of December 31, 2025 and $292.1 million ($231.9 million in the United States and $60.2 million in all other countries) as of December 31, 2024.
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 5 of the Notes included herein for a summary of the Company’s revenue by geographic region for the years ended December 31, 2025, 2024, and 2023.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 17, 2022 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 5, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.