Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 21

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 21
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 net revenue was primarily attributable to decreased spending, primarily due to lower advocacy services as compared to higher spending in 2024 associated with the 2024 elections, and decreased spending in the consumer products sector due to client losses and budget cuts. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Consulum.

Operating Income

Operating Income for the three months ended September 30, 2025 was $19.0 million, compared to $26.0 million for the three months ended September 30, 2024, representing a decrease of $7.0 million. The decrease in Operating Income was primarily attributable to a decrease in Net Revenue of $16.1 million partially offset by a decrease in Office and general expenses. Cost of services decreased by $24.4 million. Excluding the decline in Billable costs of $23.6 million, Cost of services decreased by $0.8 million.

The decrease in Office and general expenses of $10.4 million was primarily attributable to a decrease in Deferred acquisition consideration.

Deferred acquisition consideration decreased $10.5 million, primarily as a result of a decrease in the fair value of a certain Brand.

Adjusted EBITDA decreased $17.4 million, primarily due to a decrease in Net revenue,  as discussed above.

50

The Marketing Cloud

The components of operating results for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 were as follows: 

Three Months Ended September 30,20252024Change(dollars in thousands)$%Revenue$27,187 $11,443 $15,744 137.6 %Operating ExpensesCost of services14,136 5,554 8,582 154.5 %Office and general expenses3,155 9,341 (6,186)(66.2)%Depreciation and amortization6,455 2,679 3,776 140.9 %Impairment and other losses244 — 244 100.0 %$23,990 $17,574 $6,416 36.5 %Operating Income (Loss)$3,197 $(6,131)$9,328 (152.1)%

Three Months Ended September 30,20252024Change(dollars in thousands)$%Net Revenue$27,182 $11,443 $15,739 137.5 %