Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 109

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 109
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.5 %Billable costs8,334 3,022 5,312 175.8 %Staff costs62,123 56,384 5,739 10.2 %Administrative costs6,981 5,036 1,945 38.6 %Unbillable and other costs, net387 368 19 5.2 %Adjusted EBITDA25,885 23,482 2,403 10.2 %Stock-based compensation934 2,617 (1,683)(64.3)%Depreciation and amortization5,932 5,536 396 7.2 %Deferred acquisition consideration1,874 1,265 609 48.1 %Other items, net432 509 (77)(15.1)%Operating Income$16,713 $13,555 $3,158 23.3 %

Revenue

Revenue for the three months ended September 30, 2025 was $103.7 million, compared to $88.3 million for the three months ended September 30, 2024, an increase of $15.4 million.

Net Revenue

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

Net Revenue - Components of ChangeChangeThree Months Ended September 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended September 30, 2025OrganicTotal(dollars in thousands)Digital Transformation$85,270 $(99)$4,356 $5,849 $10,106 $95,376 6.9%11.9%Component % change(0.1)%5.1 %6.9 %11.9 %

The increase in organic net revenue was primarily attributable to new client wins and increased spending in the communications and consumer products sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Create.

Operating Income

Operating Income for the three months ended September 30, 2025 was $16.7 million, compared to $13.6 million for the three months ended September 30, 2024, representing an increase of $3.2 million. The increase in Operating Income was primarily attributable to an increase in Net revenue of