Shares of Stagwell Inc. (NASDAQ: STGW) plummeted 6.88% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results that fell short of analyst expectations. The marketing and communications company reported disappointing earnings and revenue figures, raising concerns about its growth trajectory.

Stagwell's adjusted earnings per share (EPS) came in at $0.12, missing the analyst consensus estimate of $0.15 by 20%. This represents a 25% decrease compared to the $0.16 per share reported in the same period last year. The company's quarterly revenue also disappointed, declining 2.73% year-over-year to $651.74 million, falling short of the $664.40 million expected by analysts.

Despite the weak results, Stagwell maintained its full-year 2025 guidance, reiterating expectations for total net revenue growth of approximately 8% and adjusted EBITDA between $410 million and $460 million. However, investors appeared skeptical, as evidenced by the sharp stock decline. The company's ability to navigate challenging market conditions and return to growth will be closely watched in the coming quarters.