Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 19

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 19
---
5 million. The change in Operating Income was primarily attributable to an increase in Revenue, partially offset by an increase in Cost of services and Office and general expenses.

The increase in Cost of services was primarily attributable to an increase in billable costs and staff cost, commensurate with higher revenue as well as the inclusion of costs from acquired entities.

The increase in Office and general expenses was primarily attributable to an increase in deferred acquisition consideration as well as the inclusion of costs from acquired entities.

Deferred acquisition consideration increased $18.7 million, primarily attributable to an increase in the fair value of a certain obligation.

Adjusted EBITDA increased $65.1 million, primarily driven by an increase in Revenue, partially offset by an increase in expenses, as discussed above.

 All Other

The components of operating results for the year ended December 31, 2024, compared to the year ended December 31, 2023 were as follows: 

Year Ended December 31,20242023Change(dollars in thousands)$%Revenue$38,747 $46,585 $(7,838)(16.8)%Operating ExpensesCost of services25,588 32,484 (6,896)(21.2)%Office and general expenses29,453 24,648 4,805 19.5 %Depreciation and amortization12,718 8,390 4,328 51.6 %$67,759 $65,522 $2,237 3.4 %Operating Loss$(29,012)$(18,937)$(10,075)53.2 %

43

Year Ended December 31,20242023Change(dollars in thousands)$%Net Revenue$38,884 $46,585 $(7,701)(16.5)%Billable costs (137)— (137)(100.0)%Revenue (1)38,747 46,585 (7,838)(16.8)%Billable costs(137)— (137)(100.0)%Staff costs34,999 37,416 (2,417)(6.5)%Administrative costs (1)6,139 4,689 1,450 30.9 %Unbillable and other costs, net13,570 15,087 (1,517)(10.1)%Adjusted EBITDA(15,824)(10,607)(5,217)49.2