Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 80

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 80
---
 income attributable to redeemable noncontrolling interests4,227 793 Net income (loss) attributable to noncontrolling and redeemable noncontrolling interests$(2,408)$569 The following table presents noncontrolling interests between Class C shareholders and other equity interest holders as of March 31, 2025 and December 31, 2024:March 31, 2025December 31, 2024(dollars in thousands)Noncontrolling interest of Class C shareholders$423,996 $423,428 Noncontrolling interest of other equity interest holders (1)21,497 21,746 Total noncontrolling interests$445,493 $445,174 (1) In January 2024, the Company entered into an agreement to purchase the remaining noncontrolling ownership interest in a subsidiary it previously controlled, the consideration for which was a portion of the subsidiary that was transferred to the 

22

noncontrolling interest owner. The non-cash purchase resulted in a reduction of the subsidiary noncontrolling interest by approximately $10.2 million.The following table presents changes in redeemable noncontrolling interests for the three months ended March 31, 2025 and year ended December 31, 2024:March 31, 2025December 31, 2024(dollars in thousands)Beginning balance$8,412 $10,792 Redemptions (1)— (17,039)Additions— 1,127 Distributions— (2,880)Changes in redemption value (2)(1,681)13,363 Net income attributable to redeemable noncontrolling interests4,227 3,005 Currency translation adjustment(102)44 Ending balance$10,856 $8,412 (1) Redemptions for the year ended December 31, 2024 was associated with redeemable noncontrolling interest of a certain brand we did not previously own. The amount was reclassified as a deferred acquisition contingent obligation (see Note 6).(2) Changes in redemption value are the fair value changes from the acquisition date redemption value based on the options held by the minority interest holders, adjusted through Retained earnings.The noncontrolling shareholders’ ability to exercise any such option right is subject to the satisfaction of certain conditions, including conditions requiring notice in advance of exercise and specific employment termination conditions. In addition, these rights cannot be exercised prior to specified staggered exercise dates