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SEC filingRevenue grew 8.0% to $704.1M, driven by election-cycle activity and corporate public affairs consulting, but profitability compressed significantly with operating income falling 47.3% to $9.6M. The net loss widened to -$13.0M as higher stock-based compensation and staff costs outpaced top-line gains.
Stagwell reported revenue of $704.1M for the first quarter of fiscal 2026, an increase of 8.0% compared to $651.7M in the prior year period. This growth was supported by higher revenue from corporate public affairs consulting, election-cycle fundraising growth, and early primary activity. The Communications segment contributed meaningfully to the increase, reflecting strong operating leverage where revenue was delivered against a variable cost base. Gross profit rose 2.1% to $244.6M, yielding a gross margin of 34.7%. Cost of services increased at a slower pace than organic net revenue growth, reflecting disciplined cost management and operating leverage in the core business.
Net cash used in operating activities was -$26.5M, an improvement from -$60.0M in the prior year period. Capital expenditures increased to $10.7M from $3.9M, resulting in free cash flow of -$37.2M. The improvement in operating cash burn reflects favorable working capital dynamics. Management continues to focus on revenue, operating expenses, staff cost ratio, and capital expenditures as key indicators of performance.