Stagwell Reports Record Q3 Revenue and Federal Deal

Stagwell recorded its best quarter in its five-year history on public markets during the third quarter of 2026, reaching $664 million. The 8% year-over-year increase coincided with Mark Penn noting that the agency eyes the government sector.

The Bottom Line

• Net revenue climbed to $664 million in Q3 2026, marking an 8% increase compared to the same period last year.
• EBITDA rose 25% year-over-year to $145 million, supported by $168 million in net new business revenue during the quarter.
• Mark Penn secured a major five-year federal government contract worth $1.5 billion, anchoring the firm’s public sector expansion.

Q3 Financial Performance and Revenue Metrics

The latest financial disclosures show Stagwell expanding its top-line metrics alongside significant margin improvements. Total net revenue for the third quarter reached $664 million, representing an 8% expansion compared to the prior year. Profitability outpaced revenue growth, with EBITDA climbing 25% year-over-year to hit $145 million.

Here is the math behind the firm’s client acquisition engine: Stagwell pulled in $168 million in net new business revenue during the third quarter alone. Over the trailing twelve months, net new business totaled $586 million. Leadership responded by tightening forward guidance, projecting full-year net revenue growth between 8% and 12%, alongside adjusted EBITDA expectations in the $490 billion to $540 billion range.

Financial Metric	Q3 2026 Value	YoY Change / Guidance
Total Net Revenue	$664 million	+8% YoY
EBITDA	$145 million	+25% YoY
Net New Business (Q3)	$168 million	N/A
Full-Year EBITDA Guidance	$490 million – $540 million	Full-Year Outlook

Federal Procurement Strategy Under Mark Penn

But the balance sheet tells a different story about where future growth originates. On the Q3 earnings call, Mark Penn highlighted the company’s pivot toward public sector spending. The cornerstone of this strategy is a newly secured five-year deal with a federal government department valued at $1.5 billion.

This milestone marks the best quarter in its 5-year history on the public markets. Traditional agency holding companies rely heavily on cyclical corporate marketing budgets. By contrast, multi-year federal contracts provide predictable, recurring cash flows insulated from commercial advertising downturns.

Market Reaction and Public Equity Valuation

Public markets rewarded the earnings beat immediately. Stagwell stock increased 9.85% following the earnings report as investors digested both the profitability and the scale of the federal contract win.

Analysts tracking the marketing services sector note that federal procurement margins often differ from standard enterprise client work. Whether this $1.5 billion public sector engagement establishes a blueprint for other holding companies to follow remains to be seen as the five-year agreement commences.

Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.