Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 106

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 106
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4,906)(24.4)%Revenue170,099 177,245 (7,146)(4.0)%Billable costs15,231 20,137 (4,906)(24.4)%Staff costs100,260 99,264 996 1.0 %Administrative costs25,584 24,525 1,059 4.3 %Unbillable and other costs, net13,443 15,613 (2,170)(13.9)%Adjusted EBITDA15,581 17,706 (2,125)(12.0)%Stock-based compensation809 1,445 (636)(44.0)%Depreciation and amortization8,145 11,715 (3,570)(30.5)%Deferred acquisition consideration2,812 1,272 1,540 121.1 %Other items, net3,713 3,268 445 13.6 %Operating Income$102 $6 $96 NM

Revenue

Revenue for the three months ended June 30, 2025 was $170.1 million, compared to $177.2 million for the three months ended June 30, 2024, a decrease of $7.1 million.

Net Revenue

The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows: 

Net Revenue - Components of ChangeChangeThree Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended June 30, 2025OrganicTotal(dollars in thousands)Brand Performance Network$157,108$2,289$142$(4,671)$(2,240)$154,868(3.0)%(1.4)%Component % change1.5%0.1%(3.0)%(1.4)%

The decrease in organic net revenue was primarily attributable to lower spending due to budget cuts in the Communication sector. 

Operating Income

The increase in Operating Income of $0.1 million was primarily attributable to a decline in Net revenue of $2.2 million, more than offset by a decline in Cost of services, excluding Billable costs of $2.8 million. The total decrease in Cost of services of $7.7 million was primarily due to a