Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 141

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 141
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, compared to $352.7 million for the three months ended March 31, 2024, an increase of $24.6 million. 

Net Revenue

Net revenue for the three months ended March 31, 2025 was $325.8 million, compared to $292.8 million for the three months ended March 31, 2024, an increase of $33.0 million or 11.3%. The increase was primarily attributable to new client wins and higher spending in the technology and retail sectors. 

40

Operating Income

Operating Income for the three months ended March 31, 2025, was $48.0 million, compared to $22.4 million for the three months ended March 31, 2024, representing an increase of $25.7 million. The increase in Operating Income was primarily attributable to an increase in Net revenue of $33.0 million, partially offset by higher Cost of services, excluding Billable costs.  Cost of services decreased $2.2 million. Excluding the decline in Billable costs of $8.4 million, Cost of services increased $6.2 million, primarily attributable to higher staff costs.

Adjusted EBITDA increased by $17.1 million, primarily driven by higher Net revenue, partially offset by an increase in expenses, as discussed above.

Brand Performance Network

The components of operating results for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 were as follows: 

Three Months Ended March 31,20252024Change(dollars in thousands)$%Revenue$162,218 $213,962 $(51,744)(24.2)%Operating ExpensesCost of services102,650 139,787 (37,137)(26.6)%Office and general expenses51,765 52,966 (1,201)(2.3)%Depreciation and amortization7,722 7,514 208 2.8 %$162,137 $200,267 $(38,130)(19.0)%Operating Income$81 $13,695 $(13,614)(99.4)%

Three Months Ended March 31,20252024Change(dollars in thousands)$%Net Revenue$146,858 $162,562 $(15,704)(9.7)%Billable costs 15,360 51,400 (36,040)(