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

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 10
---
 which we are acting as principal, 

16

contract assets are included as a component of Accounts receivable on the Unaudited Consolidated Balance Sheets. These assets were $181.2 million and $135.9 million as of March 31, 2025, and December 31, 2024, respectively. In arrangements in which we are acting as agent, contract assets pertaining to reimbursable outside vendor costs are included on the Unaudited Consolidated Balance Sheets as Expenditures billable to clients. These assets were $163.7 million and $173.2 million as of March 31, 2025, and December 31, 2024, respectively.Contract liabilities represent advanced billings to customers for fees and reimbursements of third-party costs, whether we act as principal or agent. Such fees and reimbursements of third-party costs are classified as Advance billings on the Company’s Unaudited Consolidated Balance Sheets. Advance billings at March 31, 2025, and December 31, 2024, were $311.3 million and $294.6 million, respectively. The change in Advance billings of $16.7 million for the three months ended March 31, 2025, was primarily driven by $186.9 million of revenue recognized that was included in the Advance billings balances as of December 31, 2024, the incurrence of third-party costs, and cash payments received or due in advance of satisfying our performance obligations. In arrangements in which we are acting as an agent, the revenue recognized related to the contract liability is presented on a net basis within the Unaudited Consolidated Statements of Operations.Changes in the contract asset and liability balances during the three months ended March 31, 2025, were not materially impacted by acquisitions, write-offs, impairment losses or any other factors.Unsatisfied Performance Obligations

The majority of our contracts are for periods of one year or less. For those contracts with a term of more than one year, we had $130.2 million of unsatisfied performance obligations as of March 31, 2025, of which we expect to recognize approximately 68% in 2025, 25% in 2026 and 5% in 2027, 2% in 2028, and thereafter.

17

5. Loss Per ShareThe following table presents the computations of basic and diluted loss per common share for the three months