Quarterly revenue expansion observed for Stagwell, coinciding with a surge in costs during Q2.
Stagwell, a leading marketing and technology firm, is driving innovation and growth through a strategic focus on artificial intelligence (AI) and marketing technology. The company's Q2 2025 results show a 12% year-over-year revenue increase in Digital Transformation, with 52% of total revenue coming from their Marketing Cloud SaaS platform [1].
The centrality of AI and marketing technology to Stagwell's growth is further underscored by their strategic partnerships with major technology firms such as Adobe and Palantir. These partnerships aim to enhance AI-powered data targeting and reduce operational costs by 15% by 2026 [1].
In Q1 2025 alone, Stagwell achieved $130 million in net new business, bringing the last twelve months (LTM) net new business to a record $446 million. High-profile clients like Starbucks, Visa, PayPal, and others have contributed to this growth [2]. This new business growth is supported by a strong pipeline and increased spend from the tech and retail sectors, with 18% and 52% increases respectively [2].
Stagwell is also focusing on growth in its AI-native marketing network and integrated marketing solutions for long-term strategic positioning. Plans for a potential Marketing Cloud spinoff to unlock further value are under consideration [1][3].
Financially, Stagwell has increased its full-year 2025 pro forma revenue guidance to $2.15-$2.18 billion and raised adjusted EBITDA expectations to $370-$380 million, reflecting confidence in sustained growth fueled by technology investments and new client wins [3]. Additionally, the company has recorded $20 million in annualized cost savings through back-office consolidation, real estate optimization, technology efficiencies, and a decrease in personnel costs [1][4].
Executive hires such as Slavi Samardzija to lead data strategy underline Stagwell's commitment to expanding AI and data capabilities [4]. In the coming fall, Samardzija, the global CEO of Omnicom's data and technology arm Annalect, will join Stagwell to lead its data strategy.
Stagwell has also added $117 million in net new business revenue from clients such as Samsung, New Balance, ServiceNow, Volkswagen, and others in Q2 [5].
Looking ahead, Stagwell's CEO, Mark Penn, expects growth to accelerate in the second half of the year due to a positive economic outlook, the arrival of new large clients, and a decrease in client churn after the first half of the year [6]. Penn stated that while other companies are struggling with digital transformation, new business, and workforce reductions, Stagwell's pipeline is robust and growing, and it is picking up key talent from holding companies [6].
Stagwell reiterated its 2025 guidance, citing 38% year over year growth on its Marketing Cloud, 26% growth across its top 25 clients, and continued cost savings [7]. The company is confident in its ability to maintain this momentum, thanks to its strategic focus on AI and marketing technology.
[1] Stagwell's Q2 2025 Results Show Strong Growth in Digital Transformation and Marketing Cloud SaaS Revenue
[2] Stagwell Achieves Record-Breaking Net New Business Growth in Q1 2025
[3] Stagwell Increases Full-Year 2025 Pro forma Revenue and Adjusted EBITDA Guidance
[4] Stagwell Announces Slavi Samardzija as Chief Data Officer
[5] Stagwell Reports Strong Q2 2025 Performance with $117 Million in Net New Business
[6] Stagwell CEO Mark Penn on the Company's Strong Performance and Future Growth Plans
[7] Stagwell Reiterates 2025 Guidance, Citing Strong Growth Across Key Metrics
- The strategic partnerships with major technology firms like Adobe and Palantir, aiming to enhance AI-powered data targeting and reduce operational costs by 15% by 2026, further solidify the financial position of Stagwell's business growth.
- Stagwell's focus on growth in its AI-native marketing network and integrated marketing solutions, alongside plans for a potential Marketing Cloud spinoff to unlock further value, underscores the company's long-term strategic position in the technology-driven business market.
