Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 176

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 176
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 in thousands)Integrated Agencies Network$321,870$744$9,037$13,237$23,018$344,8884.1%7.2%Brand Performance Network157,1082,289142(4,671)(2,240)154,868(3.0)%(1.4)%Communications Network72,39314410,855(9,050)1,94974,342(12.5)%2.7%All Other3,0217417,1183,81821,01024,031126.4%695.5%$554,392$3,251$37,152$3,334$43,737$598,1290.6%7.9%Component % change0.6%6.7%0.6%7.9%

For the three months ended June 30, 2025, organic net revenue increased $3.3 million, or 0.6%. The increase was primarily attributable to new wins and increased spending by clients in the automotive and retail sectors, partially offset by losses and a decrease in client spending due to budget cuts in the consumer products sectors. The increase in net acquisitions (divestitures) was impacted by the acquisitions of JetFuel Studio LLC and Powered by JetFuel LLC (“Jetfuel”), Create Group Holding Limited (“Create”), Consulum (Cayman) Limited (“Consulum”), L.D.R.S. Group Ltd. (“Leaders”), and UNICEPTA Holding GmbH (“Unicepta”).

The geographic mix in net revenues for the three months ended June 30, 2025 and 2024 is as follows:

Three Months Ended June 30, 20252024(dollars in thousands)United States$464,882 $446,326 United Kingdom36,555 39,033 Other96,692 69,033 Total$598,129 $554,392 

Operating Income

Operating Income for the three months ended June 30, 2025 was $23.2 million, compared to Operating Income of $21.9 million for the three months ended June 30, 2024, representing an increase of $1.3 million. The change in Operating Income was primarily attributable to an increase in Revenue, partially offset by an increase in Cost of services and Office and general expenses.

The increase in Cost of services was primarily attributable to higher staff costs due to the inclusion of costs from acquired entities,