Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 115

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 115
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.7 million. 

51

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)The Marketing Cloud$11,443 $416 $14,567 $756 $15,739 $27,182 6.6 %NMComponent % change3.6 %NM6.6 %NM

The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Leaders and Unicepta.

Operating Income (Loss)

Operating Income for the three months ended September 30, 2025 was $3.2 million, compared to a loss of $6.1 million for the three months ended September 30, 2024. The increase in Operating Income was primarily attributable to an increase in Net revenue and a decrease in Office and general expenses, partially offset by an increase in Costs of services.

The increase in Cost of services of $8.6 million was primarily attributable to higher staff costs and unbillable costs primarily due to the inclusion of costs from acquired entities.

The decrease in Office and general expenses of $6.2 million was primarily attributable to a decrease in Deferred acquisition consideration, partially offset by higher staff costs and the inclusion of costs from acquired entities.

Deferred acquisition consideration decreased $12.0 million, primarily as a result of a decrease in the fair value of a certain Brand.

Corporate 

The components of operating results for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 were as follows: 

Three Months Ended September 30,20252024Change(dollars in thousands)$%Staff costs$16,362 $13,160 $3,202 24.3 %Administrative costs47 2,351 (2,304)(98.0)%Adjusted EBITDA(16,409)(15,511)(898)5.8 %Stock-based compensation4,567 3,201 1,366 42.7 %Depreciation and amortization5,166 3,275 1,891 57.7 %