Stagwell reported a 2% net revenue increase for the first quarter to $532 million with a net organic revenue gain of 2%. The growth was led by a 54% gain in its advocacy operations. 

The results put Stagwell back in growth mode after losing ground in 2023 with a 5.9% organic decline including a drop of 6.7% in Q4. Organic revenue growth excludes the impact of M&A activity and currency fluctuations. 

The company reiterated its growth outlook for the full year including organic net revenue growth of 5% to 7%. Excluding advocacy growth related to the election year cycle, growth will be in the 4% to 5% range. The company expects to generate pre-tax earnings of $400 million to $450 million.  

Stagwell reported net new business wins of $66 million (projected revenue) in Q1 with net new wins in the last 12 months of $284 million. 

CEO Mark Penn said growth this year will be led by double-digit gains in performance media and data capabilities along with tailwinds in record new business and “growth in advertising generally.”  

In addition to a “strong advocacy season,” Penn predicted that the firm will see growth in “AI-related digital transformation assignments building in the second half of the year.” The firm’s ongoing international expansion is also expected to contribute to growth this year, Penn said.