Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 43

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 43
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 2024, a decrease of $51.7 million.

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Net Revenue

Net revenue for the three months ended March 31, 2025, was $146.9 million, compared to $162.6 million for the three months ended March 31, 2024, a decrease of $15.7 million, or 9.7%. The decrease in Net revenue was primarily attributable to lower spending by an existing client in the business services sector and client losses and lower spending in the travel and financial services sectors.

Operating Income

Operating Income for the three months ended March 31, 2025, was $0.1 million, compared to $13.7 million for the three months ended March 31, 2024, representing a decrease of $13.6 million. The decrease in Operating Income was primarily attributable to a decline in Net revenue of $15.7 million, partially offset by a decline in Cost of services, excluding Billable costs. Cost of services decreased $37.1 million. Excluding the decline in Billable costs of $36.0 million, Cost of services  decreased $1.1 million.

Adjusted EBITDA decreased by $16.0 million, primarily driven by a decrease in Operating Income, as discussed above.

Communications 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$87,628 $93,746 $(6,118)(6.5)%Operating ExpensesCost of services58,456 58,504 (48)(0.1)%Office and general expenses19,449 16,075 3,374 21.0 %Depreciation and amortization5,175 2,894 2,281 78.8 %$83,080 $77,473 $5,607 7.2 %Operating Income$4,548 $16,273 $(11,725)(72.1)%

42

Three Months Ended March 31,20252024Change(dollars in thousands)$%Net Revenue$66,998 $67,488 $(490)(0.7)%Billable costs 20,630 26,258 (5,628)(21.4)%Revenue87,628