Stagwell Shares Face Crucial Earnings Test

All eyes are on Stagwell as the marketing network prepares to release its third-quarter 2025 financial results this Thursday. Market participants await what many consider a pivotal moment for the company's stock performance. The upcoming report follows a recent modest recovery, with shares advancing 1.7% to $4.75 in Friday's trading session.

Ahead of the quarterly disclosure, investment firm B. Riley has upwardly revised its full-year 2025 earnings projection. The bank now anticipates earnings per share of $0.64, a slight improvement over its previous $0.63 estimate. This adjustment comes amid divided market sentiment, with current analyst ratings showing three "buy" recommendations, three "hold" positions, and a single "sell" rating. The consensus price target among market observers stands at $7.97.

For the upcoming quarterly results, financial experts project earnings of $0.23 per share with revenue approximating $743.1 million.

Should investors sell immediately? Or is it worth buying Stagwell?

Historical Performance Context

Stagwell's recent quarterly performance has presented a contrasting picture. The second quarter of 2025 saw the company report EPS of $0.17, falling short of expectations, while simultaneously delivering revenue of $706.82 million that exceeded projections. Similarly, in Q1 2025, the firm posted earnings per share of $0.12, missing targets, yet achieved a 6% revenue increase to $564 million.

Despite these inconsistent profit figures, management maintains its full-year guidance, continuing to forecast approximately 8% revenue growth.

Strategic Initiatives Under Scrutiny

The company's ambitious long-term strategy, known as the "5x5-initiative," aims to achieve annual revenues of $5 billion by 2029. Concurrently, Stagwell is implementing cost-reduction measures targeting $80-100 million in savings through artificial intelligence integration. Thursday's earnings release will provide critical insight into whether the company remains on trajectory to meet these substantial objectives.