Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 194

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 194
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 of $10.3 million, Cost of services increased $24.2 million, primarily attributable to higher staff costs due to growth in revenue and inclusion of costs from acquired entities and higher Stock-based compensation.

Stock-based compensation increased by $2.3 million, primarily due to an increase in the fair value of profit interest awards.

Deferred acquisition consideration decreased $3.0 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.

Other items, net decreased 8.5 million, primarily attributable to a lease termination during the first quarter of 2025 resulting in a gain on termination of $3.5 million, and a decrease in severance of $3.5 million.

Adjusted EBITDA increased by $26.6 million, primarily driven by higher Net revenue, partially offset by an increase in expenses, as discussed above.

Brand Performance Network

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)$%Revenue$332,317 $391,207 $(58,890)(15.1)%Operating ExpensesCost of services204,370 249,205 (44,835)(18.0)%Office and general expenses111,897 109,072 2,825 2.6 %Depreciation and amortization15,867 19,229 (3,362)(17.5)%$332,134 $377,506 $(45,372)(12.0)%Operating Income$183 $13,701 $(13,518)(98.7)%

59

Six Months Ended June 30,20252024Change(dollars in thousands)$%Net Revenue$301,726 $319,670 $(17,944)(5.6)%Billable costs 30,591 71,537 (40,946)(57.2)%Revenue332,317 391,207 (58,890)(15.1)%Billable costs30,591 71,537 (40,946)(57.2)%Staff costs196,710 197,695 (985)(0.5)%Administrative costs48,991 46,596 2,395 5.1 %Unbillable and other costs, net28,901 30