Stagwell Inc. (STGW) experienced a significant pre-market plunge of 8.22% following the release of its first-quarter 2026 financial results. The marketing and communications firm reported mixed performance that appears to have disappointed investors in early trading.
The company's Q1 earnings revealed a net loss attributable to common shareholders of $13 million, which represents a widening from year-ago levels. While revenue showed positive growth of 8% to $704 million and adjusted EBITDA climbed 9% to $90 million, the expanding net loss appears to be the primary concern driving the stock price downward.
Other metrics from the quarter showed adjusted EPS of $0.17 meeting analyst estimates, but sales of $704.143 million slightly missed the consensus estimate of $706.008 million. The company did report record net new business of $141 million for the quarter and reiterated its full-year 2026 guidance for total net revenue growth of 8% to 12% and adjusted EBITDA of $475 million to $525 million.