Segment Information

9 Months Ended

Sep. 30, 2025

15. 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 and acquisition-related expenses.

During the three months ended 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.” Periods presented prior to the third quarter of 2025 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. In accordance with ASC 350-20, Intangibles—Goodwill and Other: Goodwill, when changes occur in the composition of reporting units, the Company is required to reallocate goodwill to the affected reporting units using a relative fair value approach and perform goodwill impairment testing for impacted reporting units both immediately before and after the reorganization. As part of the reorganization, goodwill was reallocated. The Company performed the required goodwill impairment assessments as of the date of the reorganization. The assessment indicated that the estimated fair value of each impacted reporting unit exceeded its carrying amount both immediately prior to and immediately subsequent to the reallocation of goodwill. Accordingly, no goodwill impairment was recognized. The goodwill balance as of September 30, 2025, for Marketing Services, Digital Transformation, Media & Commerce, Communications and The Marketing Cloud was $529.7 million, $308.7 million, $419.9 million, $252.9 million and $86.1 million, respectively. 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 artificial intelligence (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&Sunny and Anomaly, research agencies NRG and Harris Insights, experiential agency TEAM, and social agency Crispin.

•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 implementation, and Martech integration. 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, 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 customer relationship management 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 and strategy agency Assembly Global, commerce and CRM agency Gale, and media platform Ink.

•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, Smart Assets and ARound.

The Company reports corporate expenses as “Corporate and eliminations” which consists of 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 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, (iv) certain other professional fees managed by the corporate office, and v) the elimination of certain intercompany services and revenue.


	Three Months Ended September 30, 2025
	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Total
	(dollars in thousands)
Revenue (1)	$	297,195	$	103,710	$	174,738	$	144,947	$	27,187	$	747,777

Billable costs	51,101		8,334		20,581		48,455		5		128,476
Staff costs	144,354		62,123		91,365		56,650		18,763		373,255
Administrative costs	27,919		6,981		22,966		12,516		3,663		74,045
Unbillable and other costs *	17,227		387		15,196		2,245		5,883		40,938
Adjusted EBITDA	56,594		25,885		24,630		25,081		(1,127)		131,063

Adjusted EBITDA - Corporate and eliminations											(16,481)
Total Consolidated Adjusted EBITDA											114,582

Stock-based compensation											12,646
Depreciation and amortization											44,260
Deferred acquisition consideration											(13,348)
Impairment and other losses											466
Other items, net											9,645
Operating Income											60,913
Other income (expenses):
Interest expense, net											(25,196)
Foreign exchange, net											(366)

Other, net											(2,032)
											(27,594)
Income before income taxes and equity in earnings of non-consolidated affiliates											33,319
Income tax expense											9,555
Income before equity in earnings of non-consolidated affiliates											23,764
Equity in loss of non-consolidated affiliates											(1)
Net income											23,763
Net loss attributable to noncontrolling and redeemable noncontrolling interests											856
Net income attributable to Stagwell Inc. common shareholders											$	24,619

(1) Total consolidated revenue of $742,998 reflects an intercompany elimination of $4,779.

*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.


	Nine Months Ended September 30, 2025
	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Total
	(dollars in thousands)
Revenue (1)	$	839,457	$	292,188	$	479,648	$	420,215	$	78,785	$	2,110,293

Billable costs	124,590		17,210		47,793		135,109		16		324,718
Staff costs	421,226		184,886		269,318		172,273		53,683		1,101,386
Administrative costs	86,433		19,599		67,097		37,042		13,531		223,702
Unbillable and other costs *	60,230		1,151		43,833		6,910		17,178		129,302
Adjusted EBITDA	146,978		69,342		51,607		68,881		(5,623)		331,185

Adjusted EBITDA - Corporate and eliminations											(43,166)
Total Consolidated Adjusted EBITDA											288,019

Stock-based compensation											44,143
Depreciation and amortization											127,635
Deferred acquisition consideration											(9,911)
Impairment and other losses											466
Other items, net											23,316
Operating Income											102,370
Other income (expenses):
Interest expense, net											(72,007)
Foreign exchange, net											(484)

Other, net											(2,143)
											(74,634)
Income before income taxes and equity in earnings of non-consolidated affiliates											27,736
Income tax expense											13,950
Income before equity in earnings of non-consolidated affiliates											13,786
Equity in income of non-consolidated affiliates											18
Net income											13,804
Net loss attributable to noncontrolling and redeemable noncontrolling interests											2,637
Net income attributable to Stagwell Inc. common shareholders											$	16,441

(1) Total consolidated revenue of $2,101,556 reflects an intercompany elimination of $8,737.


	Three Months Ended September 30, 2024
	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Total
	(dollars in thousands)
Revenue (1)	$	267,675	$	88,292	$	159,595	$	184,665	$	11,443	$	711,670

Billable costs	42,264		3,022		14,037		72,102		—		131,425
Staff costs	139,694		56,384		88,390		55,518		8,887		348,873
Administrative costs	26,825		5,036		20,171		11,668		3,505		67,205
Unbillable and other costs *	15,435		368		16,357		2,848		2,481		37,489
Adjusted EBITDA	43,457		23,482		20,640		42,529		(3,430)		126,678

Adjusted EBITDA - Corporate and eliminations											(15,509)
Total Consolidated Adjusted EBITDA											111,169

Stock-based compensation											16,935
Depreciation and amortization											36,044
Deferred acquisition consideration											560

Other items, net											15,851
Operating Income											41,779
Other income (expenses):
Interest expense, net											(23,781)
Foreign exchange, net											1,312

Other, net											249
											(22,220)
Income before income taxes and equity in earnings of non-consolidated affiliates											19,559
Income tax expense											5,691
Income before equity in earnings of non-consolidated affiliates											13,868
Equity in loss of non-consolidated affiliates											(4)
Net income											13,864
Net income attributable to noncontrolling and redeemable noncontrolling interests											(10,593)
Net income attributable to Stagwell Inc. common shareholders											$	3,271

(1) Total consolidated revenue of $711,281 reflects an intercompany elimination of $389.


	Nine Months Ended September 30, 2024
	Marketing Services		Digital Transformation		Media & Commerce		Communications		The Marketing Cloud		Total
	(dollars in thousands)
Revenue (1)	$	782,371	$	248,976	$	521,963	$	473,957	$	25,823	$	2,053,090

Billable costs	124,196		9,363		82,180		170,067		—		385,806
Staff costs	407,948		166,965		265,576		162,715		21,024		1,024,228
Administrative costs	74,293		15,707		61,509		33,689		9,659		194,857
Unbillable and other costs *	53,176		788		46,244		7,958		5,547		113,713
Adjusted EBITDA	122,758		56,153		66,454		99,528		(10,407)		334,486

Adjusted EBITDA - Corporate and eliminations											(46,898)
Total Consolidated Adjusted EBITDA											287,588

Stock-based compensation											38,926
Depreciation and amortization											112,881
Deferred acquisition consideration											7,950
Impairment and other losses											1,715
Other items, net											36,576
Operating Income											89,540
Other income (expenses):
Interest expense, net											(68,279)
Foreign exchange, net											(2,301)

Other, net											(825)
											(71,405)
Income before income taxes and equity in earnings of non-consolidated affiliates											18,135
Income tax expense											9,441
Income before equity in earnings of non-consolidated affiliates											8,694
Equity in income of non-consolidated affiliates											503
Net income											9,197
Net loss attributable to noncontrolling and redeemable noncontrolling interests											(10,173)
Net loss attributable to Stagwell Inc. common shareholders											$	(976)

(1) Total consolidated revenue of $2,052,508 reflects an intercompany elimination of $582.

The Company’s long-lived assets (i.e., Right-of-use lease assets-operating leases and Fixed asset, net) was $282.3 million ($212.9 million in the United States and $69.4 million in all other countries) as of September 30, 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 4 of the Notes included herein for a summary of the Company’s revenue by geographic region for the three and nine months ended September 30, 2025 and 2024.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Stagwell Inc 10-Q