Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 28

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 28
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)$(17,944)$301,726(6.0)%(5.6)%Component % change0.3%—%(6.0)%(5.6)%

The decrease in organic net revenue was primarily attributable to decreased spending by existing clients in the business services and transportation sectors.

Operating Income

Operating Income for the six months ended June 30, 2025, was $0.2 million, compared to $13.7 million for the six months ended June 30, 2024, representing a decrease of $13.5 million. The decrease in Operating Income was primarily attributable to a decline in Net revenue of $17.9 million, partially offset by a decline in Cost of services, excluding Billable costs. Cost of services decreased $44.8 million. Excluding the decline in Billable costs of $40.9 million, Cost of services decreased $3.9 million.

Adjusted EBITDA decreased by $18.1 million, primarily driven by a decrease in Operating Income, as discussed above.

60

Communications Network

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

Six Months Ended June 30,20252024Change(dollars in thousands)$%Revenue$193,756 $199,316 $(5,560)(2.8)%Operating ExpensesCost of services128,015 126,460 1,555 1.2 %Office and general expenses36,565 36,166 399 1.1 %Depreciation and amortization10,147 5,984 4,163 69.6 %$174,727 $168,610 $6,117 3.6 %Operating Income$19,029 $30,706 $(11,677)(38.0)%

Six Months Ended June 30,20252024Change(dollars in thousands)$%Net Revenue$141,340 $139,881 $1,459 1.0 %Billable costs 52,416 59,435 (7,019)(11.8)%Revenue193,756 199,316 (5,560)(2.8)%Billable costs52,416 59,435 (7,019)(11.8)%Staff costs89,389 80,395 8,