Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 44

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 44
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 93,746 (6,118)(6.5)%Billable costs20,630 26,258 (5,628)(21.4)%Staff costs44,577 39,264 5,313 13.5 %Administrative costs10,174 8,704 1,470 16.9 %Unbillable and other costs, net490 136 354 260.3 %Adjusted EBITDA11,757 19,384 (7,627)(39.3)%Stock-based compensation693 1,049 (356)(33.9)%Depreciation and amortization5,175 2,894 2,281 78.8 %Deferred acquisition consideration1,213 (1,114)2,327 (208.9)%Other items, net128 282 (154)(54.6)%Operating Income$4,548 $16,273 $(11,725)(72.1)%

Revenue

Revenue for the three months ended March 31, 2025 was $87.6 million, compared to $93.7 million for the three months ended March 31, 2024, a decrease of $6.1 million. 

Net Revenue

Net revenue for the three months ended March 31, 2025, was $67.0 million, compared to $67.5 million for the three months ended March 31, 2024, a decrease of $0.5 million, or 0.7%. Net revenue decreased primarily due to lower advocacy services as compared to the political year in 2024, partially offset by Net revenue from the acquisitions of PROS and Consulum.

Operating Income

Operating Income for the three months ended March 31, 2025, was $4.5 million, compared to $16.3 million for the three months ended March 31, 2024, representing a decrease of $11.7 million. The change in Operating Income was primarily attributable to lower advocacy services and higher Office and general expenses, primarily due to an increase in Deferred acquisition consideration.

Deferred acquisition consideration increased by $2.3 million, primarily attributable to an increase in the fair value of a certain obligation.

Adjusted EBITDA decreased by $7.6 million, primarily due to lower advocacy services in a non-political year, partially offset by the impact of acquired entities.

43

 All Other

The components of operating results for