Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 197

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 197
---
 million. 

61

Net Revenue

The components of the fluctuations in net revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, were as follows: 

Net Revenue - Components of ChangeChangeSix Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeSix Months Ended June 30, 2025OrganicTotal(dollars in thousands)Communications Network$139,881$101$25,203$(23,845)$1,459$141,340(17.0)%1.0%Component % change0.1%18.0%(17.0)%1.0%

The decrease in organic net revenue was primarily attributable to decreased spending, primarily due to lower advocacy services as compared to higher spending in the first half of 2024 associated with the 2024 elections and decreased spending in the healthcare and consumer products 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 six months ended June 30, 2025, was $19.0 million, compared to $30.7 million for the six months ended June 30, 2024, representing a decrease of $11.7 million. The decrease in Operating Income was primarily attributable to a decrease in Revenue and an increase in Cost of Services and Depreciation and amortization, partially offset by a decrease in Deferred acquisition consideration.

Cost of services increased $1.6 million. Excluding the decline in Billable costs of $7.0 million, Cost of services increased $8.6 million due to the inclusion of costs from acquired entities.

Deferred acquisition consideration decreased by $3.5 million, primarily attributable to a decrease in the fair value of a certain Brand, partially offset by an increase in the fair value of certain other Brands.

Depreciation and amortization increased by $4.2 million, primarily attributable to the inclusion of costs from acquired entities.

Adjusted EBITDA decreased by $10.4 million, primarily due to a decrease in Operating Income, as discussed above.

 All Other

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