Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 EARNINGS PRESENTATION May 8 | 2025
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This document contains forw ard-look ing stateme nts w ithin the meaning of Section 27A of the Securitie s Ac t of 1933, as amende d (the “Se curitie s Ac t”), and Section 21E of the Securitie s Exchange Ac t of 1934, as amende d (the “Exchange Ac t”).
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) d efines as "non-GAAP Financial Measures." Management believes that such non-GAAP finan
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 05/08/2025. The Company has excluded a quantit ativ e reconcil iation wit h res
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS NET REVENUE: $564M | NET LEVERAGE RATIO: 3.3x | ADJ. EBITDA: $81M Growing OUR BUSINESS Record-Breaking NEW BUSINESS Net Revenue growth ex. Advocacy of 9% year-over-year Record $130M of net new business wins in 1Q25, bringing LTM to $446M Digital Transformation grew 15% ex. A
Slide 6: Our Principal Capabilities
OUR PRINCIPAL CAPABILITIES 1 Stagwell Marketing Cloud Group SaaS and DaaS Tools for the Modern Marketer 57% 1Q25 2 Digital Transformation Building & Designing Digital Platforms & Technology 3 Performance Media & Data Addressable on a Global Scale 4 Consumer Insights & Strategy Tracking Across the En
Slide 7: 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 8: Summary Combined Financials
SUMMARY COMBINED FINANCIALS Three Months Ended March 31, $ in Thousands 2025 2024 Net Revenue $ 564,187 $ 532,454 Billable Costs 87,553 137,605 Revenue $ 651,740 $ 670,059 Billable Costs 87,553 137,605 Staff costs 368,262 342,157 Administrative costs 75,109 67,163 Unbillable and other costs, net 40,
Slide 9: 1Q25 Net Revenue by Geography
1Q25 NET REVENUE BY GEOGRAPHY % OF NET REVENUE Total Growth Y/Y Geography 1Q25 1Q 15.5% United States 1.4% 6.4% United Kingdom (2.3)% Other 43.6% 78.1% TOTAL 6.0% TOTAL EX-ADVOCACY 9.1% Note: Figu res may not foot due to roun din g. 9
Slide 10: 1Q25 Growth by Capability
1Q25 GROWTH BY CAPABILITY % OF NET REVENUE 1Q25 Net Revenue Adjusted EBITDA Principal Capability Growth Growth Stagwell Marketing Cloud 11% 32.0% (274.8)% Group 19% 1Q 18% Digital Transformation 7.9% 31.9% 9% Performance (9.8)% (51.8)% Media & Data 43% Consumer Insights 7.6% (2.8)% & Strategy Creati
Slide 11: Ex-Advocacy Net Revenue & Adjusted EBITDA
EX-ADVOCACY NET REVENUE & ADJUSTED EBITDA $ in Millions Three Months Ended, NET March 31, March 31, REVENUE % Change 2025 2024 Total Net Revenue $564 $532 6.0% Advocacy Net Revenue 29 42 -30.2% Total Ex Advocacy 535 490 9.1% Three Months Ended, ADJ. March 31, March 31, % Change EBITDA 2025 2024 Tota
Slide 12: New Business Update
NEW BUSINESS UPDATE Notable Business WINS & EXPANSIONS Net New Business 1Q25 $130M LTM $446M Avg. Net Revenue 1Q25 $6.8M PER CLIENT AT TOP 25 12
Slide 13: Stagwell Marketing Cloud Group
STAGWELL MARKETING CLOUD GROUP Net Revenue1 Adj. Net EBITDA $ in Millions Revenue Margin $63M Advanced $34.8 (3.5)% Media Platforms $48M Stagwell $28.4 (11.8)% Marketing Cloud TOTAL $62.8 (7.7)% 1Q24 1Q25 GROWTH (y/y) 24.1% 1. Defined as GAAP Revenue minus Bill able Costs – Includes both the Advance
Slide 14: Liquidity
LIQUIDITY $ in Millions Available Liquidity (as of 03/31/2025) Commitment Under Credit Facility $ 640 Drawn 375 Letters of Credit 15 Undrawn Commitments Under Facility $ 250 Total Cash & Cash Equivalents 138 Total Available Liquidity $ 388 Note: Numbers may not foo t due to ro unding. 14
Slide 15: Maintaining Discipline Around Deferred Acquisition Costs
MAINTAINING DISCIPLINE AROUND Deferred Acquisition Costs DAC DECREASED BY $8M FROM 1Q24 QUARTER-END BALANCE $73M FROM 1Q23 QUARTER-END BALANCE 166M 101M 93M 1Q23 1Q24 1Q25 Numbers may not foot due to rounding. 15
Slide 16: Adjusted Earnings Per Share
ADJUSTED EARNINGS PER SHARE Three Months Ended March 31, 2025 Reported $ and Shares in Thousands (GAAP) Adjustments Non-GAAP Net income (loss) attributable to Stagwell Inc. common shareholders $ (2,917) $ 18,439 $ 15,522 Net income (loss) attributable to Class C Shareholders (6,637) 24,513 17,876 Ne
Slide 17: GAAP Consolidated Operating Performance
GAAP CONSOLIDATED OPERATING PERFORMANCE Three Months Ended March 31, $ and Shares in Thousands 2025 2024 Revenue $ 651,740 $ 670 ,059 Cost of servic es 412,087 444 ,526 Office & general expenses 179,362 163,3 43 Depreciation & amortization 42,006 34 ,836 Impairmen t & oth er losses - 1,500 Total o p
Slide 18: Capital Structure
CAPITAL STRUCTURE Net Debt & Debt-Like ($M, as of 3/31/2025) Share Count5 (Thousands, as of 4/30/2025) Revolving Credit Facility $ 375 Class A 265,765 Bonds 1,100 NCI1 21 DAC2 93 Class C6 - (equal voting & economic rights to Class A) RNCI3 29 Less: Investments4 16 Share-based awards7 7,881 Less: Cas
Slide 19: Applying a Proven Playbook to Scale Stagwell Marketing Cloud Group
APPLYING A PROVEN PLAYBOOK to scale Stagwell 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
Slide 20: Product Incubation Playbook
STAGWELL 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
Slide 21: 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 21
Slide 22: 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 22
Slide 23: 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 23
Slide 24: Pricing Model
STAGWELL 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 24
Slide 25: Thank You
Thank You Contact Us: IR@StagwellGlobal.com