Benchmark Reiterates Hold Rating on Stagwell Inc. (STGW) Following Q4 Results

Benchmark analyst Mark Zgutowicz reiterated a Hold rating on Stagwell Inc. (NASDAQ: STGW).

The analyst commented, "Management messaged that ‘25 proved the “core” business is strengthening even in a non-political year: exadvocacy net revenue grew +3.6% organically in ‘25 y/y (+4.6% in 4Q) alongside ~flat y/y adj. EBITDA margin (despite tough advocacy compares), cost actions are in-motion (~$50M implemented toward an $80–$100M program), and FCF roughly doubling to $180M. We were pleased to hear of a widened $350M buyback authorization and the intention to be aggressive at low stock multiples. We also note record LTM net new business ($476M), marketing cloud growth (30%+ organic) turning EBITDA-positive in 4Q, and a more disciplined balance sheet profile (leverage under 3x with contingent payments/earn-outs trending toward negligible by end of ‘26). Despite a stronger outlook in a ’26 political year, our model remains conservatively forecasted, including at the low-end of +8–12% net revenue growth guidance, the mid-point of $475–$525M adj. EBITDA, and the low-end of +50–60% FCF conversion."

For an analyst ratings summary and ratings history on Stagwell Inc. click here. For more ratings news on Stagwell Inc. click here.

Shares of Stagwell Inc. closed at $6.16 yesterday.

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