Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 114

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 114
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 number of awards expensed, compared to last year, partially offset by a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.

Deferred acquisition consideration decreased by $4.0 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.

Depreciation and amortization increased by $6.5 million, primarily attributable to the Company’s acquisition of businesses.

Interest Expense, Net

Interest expense, net for the six months ended June 30, 2025 was $46.8 million, compared to $44.5 million for the six months ended June 30, 2024, an increase of $2.3 million, primarily attributable to higher levels of debt outstanding under the Credit Agreement (as defined and discussed in Note 8 of the Notes to the Unaudited Consolidated Financial Statements included herein), partially offset by a lower average interest rate.

Foreign Exchange, Net

The foreign exchange loss for the six months ended June 30, 2025, was $0.1 million, compared to a loss of $3.6 million for the six months ended June 30, 2024, primarily attributable to the movement in the British Pound and Euro.

Income Tax Expense

The Company had an income tax expense for the six months ended June 30, 2025 of $4.4 million (on a pre-tax loss of $5.6 million resulting in an effective tax rate of (78.7)%) primarily due to the tax benefit of the pre-tax loss being more than offset by the current losses subject to valuation allowance, withholding taxes recorded in the period, and a shortfall in deductions for share based compensation expense vested during the period.

The Company had income tax expense for the six months ended June 30, 2024 of $3.8 million (on pre-tax loss of $1.4 million resulting in an effective tax rate of (263.3)%) primarily due to the tax benefit of the nominal pre-tax profit being more than offset by the current losses subject to valuation allowance and a shortfall in deductions for share based compensation expense vested during the period.

Noncontrolling and Redeemable Noncontrolling Interests 

The effect of noncontrolling and redeemable noncontrolling interests for the six months ended June 30, 2025 was a loss of $1.8 million, compared to a loss of $0.4 million for the six months ended