Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 124

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 124
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 inclusion of costs from acquired entities as well as higher software license fees.

Deferred acquisition consideration increased by $1.5 million, primarily due to an increase in the fair value of a certain Brands.

63

Adjusted EBITDA decreased by $6.1 million, primarily driven by higher Net revenue, more than offset by an increase in expenses, as discussed above. 

Corporate 

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)$%Staff costs$24,876 $22,261 $2,615 11.7 %Administrative costs1,327 9,045 (7,718)(85.3)%Adjusted EBITDA(26,203)(31,306)5,103 (16.3)%Stock-based compensation11,059 2,107 8,952 424.9 %Depreciation and amortization6,667 5,406 1,261 23.3 %Impairment and other losses— 215 (215)(100.0)%Other items, net1,991 1,622 369 22.7 %Operating Loss$(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