Slide 1: Second Quarter 2025 Earnings Presentation
Second Quarter 2025 EARNINGS PRESENTATION July 31 | 2025
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION 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
Slide 3: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES In addition to its reported results, Stagwell Inc. has included in this earnings presentation certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP financ
Slide 4: Reiterating Full-Year 2025 Outlook
Reiterating Full-Year 2025 Outlook FINANCIAL ~ 8% Total Net Revenue Growth Outlook $410M - $460M Adjusted EBITDA > 45% EBITDA Conversion on Free Cash Flow $0.75 - $0.88 In Adjusted Earnings Per Share Note: Guidance as of 07/31/2025. The Company has excluded a quantit ativ e reconcil iation wit h res
Slide 5: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS NET REVENUE: $598M | NET LEVERAGE RATIO: 3.18x | ADJ. EBITDA: $93M Accelerating GROWTH Record-Breaking NEW BUSINESS Total Net Revenue growth of 8% year-over-year to $598M $117M of net new business in 2Q25, bringing LTM to $451M Total Net Revenue growth ex. Advocacy of 10%,
Slide 6: Summary Combined Financials
SUMMARY COMBINED FINANCIALS Three Months Ended June 30, Six Months Ended June 30, $ in Thousands 2025 2024 2025 2024 Net Revenue $ 598,129 $ 554,392 $ 1,162,316 $ 1,086,846 Billable Costs 108,689 116,776 196,242 254,381 Revenue $ 706,818 $ 671,168 $ 1,358,558 $ 1,341,227 Billable Costs 108,689 116,7
Slide 7: 2Q25 Net Revenue
2Q25 NET REVENUE Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 $ in Thousands Net Revenue Change Net Revenue Change June 30, 2024 $ 554,392 $ 1,086,846 Organic revenue 3,334 0.6% 5,947 0.5% Acquisitions 37,152 6.7% 68,689 6.3% (divestitures), net Foreign currency 3,251 0.6% 834 0.1
Slide 8: 2Q25 Net Revenue by Geography
2Q25 NET REVENUE BY GEOGRAPHY % OF NET REVENUE Organic Growth Y/Y Geography 2Q25 1H25 2Q 16.2% United States (0.2)% (1.1)% 6.1% United Kingdom (7.7)% (5.4)% Other 10.1% 14.9% 77.7% TOTAL 0.6% 0.5% TOTAL EX-ADVOCACY 2.0% 2.6% Note: Figu res may not foot due to roun din g. 8
Slide 9: Global Network
GLOBAL NETWORK Stagwell’s Affiliate Network Significantly Expands Our Global Footprint Europe • Austria • Ukraine North America • Belgium • France • Bulgaria • Germany • Italy • Netherlands • Canada • Latvia • Poland • USA • Romania • Spain • Mexico • Slovak Republic • Sweden • Slovenia • United Kin
Slide 10: Our Principal Capabilities
OUR PRINCIPAL CAPABILITIES 1 The Marketing Cloud Group SaaS and DaaS Tools for the Modern Marketer 52% 2Q25 2 Digital Transformation Building & Designing Digital Platforms & Technology 3 Performance Media & Data Addressable on a Global Scale 4 Consumer Insights & Strategy Tracking Across the Entire
Slide 11: Net Revenue Growth by Capability
NET REVENUE GROWTH BY CAPABILITY 2Q 1H % OF NET REVENUE Principal Capability Organic Net Revenue Net Revenue Organic Net Revenue Net Revenue Growth Growth Growth Growth The Marketing Cloud (6.1)% 28.0% 5.2% 41.4% Group 11% Digital Transformation 1.4% 5.7% 4.8% 6.8% 2Q 18% Performance 18% (1.6)% 1.2%
Slide 12: Adj. EBITDA Growth by Capability
ADJ EBITDA GROWTH BY CAPABILITY Adj. EBITDA* Growth Y/Y % OF ADJ. EBITDA* Principal Capability 2Q25 1H25 0% The Marketing Cloud Group (79.6)% (205.9)% 26% Digital Transformation 2Q 10.3% 20.1% 10% Performance Media & Data (15.9)% (40.2)% 13% 50% Consumer Insights & Strategy 26.9% 12.1% Creativity &
Slide 13: Ex-Advocacy Revenue, Net Revenue & Adjusted EBITDA
EX-ADVOCACY REVENUE, NET REVENUE & ADJUSTED EBITDA $ in Millions Three Months Ended, Six Months Ended, REVENUE June 30, June 30, % Change June 30, June 30, % Change 2025 2024 2025 2024 Total Revenue $707 $671 5.3% $1,359 $1,341 1.3% Advocacy Revenue 56 72 (22.2)% 98 137 (28.5)% Total Ex Advocacy 651
Slide 14: New Business Update
NEW BUSINESS UPDATE Notable Business WINS & EXPANSIONS Net New Business 2Q25 $117M LTM $451M Avg. Net Revenue 2Q25 $7.1M PER CLIENT AT TOP 25 14
Slide 15: Stagwell Marketing Cloud Group
STAGWELL MARKETING CLOUD GROUP Net Revenue1 Adj. Net EBITDA $ in Millions Revenue Margin $66M Advanced $36.3 7.0% $52M Media Platforms Stagwell $29.9 (7.5)% Marketing Cloud TOTAL $66.3 0.4% 2Q24 2Q25 GROWTH (y/y) 28.0% 1. Defined as GAAP Revenue minus Bill able Costs – Includes both the Advanced Med
Slide 16: Liquidity
LIQUIDITY $ in Millions Available Liquidity (as of 06/30/2025) Commitment Under Credit Facility $ 750 Drawn 377 Letters of Credit 15 Undrawn Commitments Under Facility $ 358 Total Cash & Cash Equivalents 181 Total Available Liquidity $ 539 Note: Numbers may not foo t due to ro unding. 16
Slide 17: Maintaining Discipline Around Deferred Acquisition Costs
MAINTAINING DISCIPLINE AROUND Deferred Acquisition Costs DAC DECREASED BY $10M FROM FY24 YEAR-END BALANCE $102M $92M 4Q24 2Q25 Numbers may not foot due to rounding. 17
Slide 18: Adjusted Earnings Per Share
ADJUSTED EARNINGS PER SHARE Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Reported Reported $ and Shares in Thousands (GAAP) Adjustments Non-GAAP (GAAP) Adjustments Non-GAAP Net income (lo ss) attributable to Stagwell Inc. common shareholders $ (5,261) $ 50,331 $ 45,070 $ (8,178) $
Slide 19: GAAP Consolidated Operating Performance
GAAP CONSOLIDATED OPERATING PERFORMANCE Three Months Ended June 30, Six Months Ended June 30, $ and Shares in Thousands 2025 2024 2025 2024 Revenue $ 706,818 $ 671,168 $ 1,358,558 $ 1,341,227 Cost of services 459,216 438,912 871,303 883,4 38 Office & general expenses 183 ,061 168,13 3 362,4 23 33 1,
Slide 20: Capital Structure
CAPITAL STRUCTURE Net Debt & Debt-Like ($M, as of 6/30/2025) Share Count5 (Thousands, as of 7/24/2025) Revolving Credit Facility $ 377 Class A 258,703 Bonds 1,100 NCI1 22 DAC2 92 Class C - (equal voting & economic rights to Class A) RNCI3 30 Less: Investments4 16 Share-based awards6 12,316 Less: Cas
Slide 21: Applying a Proven Playbook to Scale The Marketing Cloud Group
APPLYING A PROVEN PLAYBOOK to scale The Marketing Cloud Group Building complementary software solutions leveraging the domain expertise and distribution channels already in place at Stagwell Digital Services Technology Digital Transformation Advanced Media Platforms 1 Building Digital Platforms & Co
Slide 22: Product Incubation Playbook
THE MARKETING CLOUD GROUP Product Incubation Playbook We've developed a proven strategy to develop and incubate new technologies, making informed product roadmap decisions based off agency clients while leveraging our world-class tech team Faster WE BUILD Shared infrastructure + tech expertise DEVEL
Slide 23: Product Spotlight: Real-Time Insights
REAL-TIME INSIGHTS Product Spotlight Customer Benefit Unlocking continuous brand tracking on an affordable, global, modern basis for research professionals 23
Slide 24: Product Spotlight: Artificial Intelligence
ARTIFICAL INTELLIGENCE Product Spotlight Customer Benefit Revolutionizing the PR process through AI, saving PR professionals from millions of tedious working hours 24
Slide 25: Product Spotlight: Augmented Reality
AUGMENTED REALITY Product Spotlight Customer Benefit Bringing a whole new level of stadium entertainment and fan engagement to sports and entertainment through shared AR 25
Slide 26: Pricing Model
THE MARKETING CLOUD GROUP Pricing Model Modern, flexible pricing models that fit the needs and budgets for the modern marketer Subscription Pricing Consumption Fee Advertising-Based Annual SaaS contract Data and media spend Sponsorship fees 26
Slide 27: Thank You
Thank You Contact Us: IR@StagwellGlobal.com