Stagwell, the challenger network transforming marketing, is hosting its 2025 Investor Day virtually, where executives will outline the company’s next phase of growth. The event will feature key strategic initiatives, including a plan to reach $5 billion in annual revenue by 2029, an $80 to $100 million cost savings initiative, and a simplified capital structure.

A livestream of the event begins at 10 a.m. ET on April 2, 2025, with a recording available later at Stagwell’s official website.

Announcements from Investor Day

"5 x 5" Initiative: $5 Billion Revenue Target by 2029

Stagwell is launching its "5 x 5" plan, aiming for:

• $5 billion in revenue

• $1 billion in adjusted EBITDA

• No increase in debt ratios

CEO Mark Penn emphasized the company's rapid ascent, stating,
"Three years ago, many doubted we would reach $3 billion in revenue. We proved them wrong. Now, we enter Phase II of our growth strategy to scale even further."

$80 to $100 Million Cost Savings Through AI Efficiency

Stagwell has identified AI-driven efficiencies that will save between $80 to $100 million over the next 18 to 24 months. Key milestones include:

• $60 to $70 million in savings by the end of 2025, reflected in FY26 results

• Remaining savings completed by 2026

These initiatives will significantly enhance adjusted EBITDA by streamlining workflows and optimizing employee productivity.

Simplifying Capital Structure for Market Appeal

To improve investment attractiveness, Stagwell is eliminating its two-class share structure by converting Class C shares into Class A publicly traded common stock. This move will:

• Simplify the company’s capital structure

• Enhance stock liquidity and attractiveness for institutional investors

Business Unit Restructuring for Greater Alignment

Stagwell is reorganizing its business units to better reflect how clients engage with its services. The company’s new structure will include:

• Marketing Services

• Media and Commerce

• Advocacy (political and nonpolitical communications)

• Digital Transformation

• Stagwell Marketing Cloud

The transition will also lead to a more streamlined financial reporting process later this year.

Strategic Partnerships for AI-Driven Insights

Stagwell is strengthening its data capabilities through a new partnership with Palantir. This collaboration will:

• Enhance performance media targeting by integrating Stagwell ID Graph with Palantir’s AI-driven analytics

• Complement Stagwell’s existing partnership with Adobe for advanced content management

• Enable clients to access a suite of new data and content services launching later this year

Appointment of Inaugural Chief AI Officer

Stagwell is reinforcing its commitment to AI innovation by appointing John Kahan as its first-ever Chief AI Officer. Kahan, who previously held leadership roles at Microsoft and IBM, will:

• Oversee AI integration across Stagwell’s global network

• Drive AI-powered solutions to enhance marketing effectiveness

Affirming 2025 Financial Guidance

Stagwell reaffirmed its full-year 2025 guidance, reflecting a strong start to the year:

• 8% total growth in net revenue

• Adjusted EBITDA between $410M - $460M

• Free cash flow conversion above 45%

• Adjusted EPS between $0.75 - $0.88

This guidance accounts for anticipated acquisitions or dispositions in 2025.

Stagwell’s 2025 Investor Day underscores its position as the fastest-growing major advertising holding company. With a bold "5 x 5" growth strategy, AI-driven efficiencies, and a streamlined business structure, Stagwell is well-positioned for sustained expansion in the coming years.