Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 200

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 200
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424.9 %Depreciation and amortization6,667 5,406 1,261 23.3 %Impairment and other losses— 215 (215)(100.0)%Other items, net1,991 1,622 369 22.7 %Operating Loss$(45,920)$(40,656)$(5,264)12.9 %

Operating Loss

Operating Loss for the six months ended June 30, 2025, was $45.9 million, compared to $40.7 million for the six months ended June 30, 2024, representing an increase of $5.3 million, primarily attributable to higher Stock-based compensation.

Stock-based compensation expense increased by $9.0 million, primarily attributable to an increase in the number of awards partially offset by a decrease in the fair value of the awards and a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.

Liquidity and Capital Resources:

The following table provides summary information about the Company’s liquidity position:

Six Months Ended June 30,20252024(dollars in thousands)Net cash provided by (used in) operating activities$54,738 $(67,618)Net cash used in investing activities(34,936)(52,183)Net cash provided by financing activities21,062 138,304 

The Company had cash and cash equivalents of $181.3 million and $131.3 million as of June 30, 2025, and December 31, 2024, respectively. The Company expects to maintain sufficient cash and/or available borrowings to fund operations for the next twelve months and subsequent periods. The Company has historically maintained and expanded its business using cash generated from operating activities, funds available under the Credit Agreement, and other initiatives, such as obtaining additional debt and equity financing. On April 23, 2025, the Company entered into the Second Amended and Restated Credit Agreement, which increased the limit of borrowing from $640 million to $750 million and extended the maturity date from August 3, 2026 to April 30, 2030. As of June 30, 2025, the Company had $377.0 million of borrowings outstanding and $15.3 million of issued and undrawn letters of credit resulting in $357.7 million unused borrowing capacity under the Credit Agreement. 

The Company transfers