Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 23

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 23
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 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 $3,202 24.3 %Administrative costs47 2,351 (2,304)(98.0)%Adjusted EBITDA(16,409)(15,511)(898)5.8 %Stock-based compensation4,567 3,201 1,366 42.7 %Depreciation and amortization5,166 3,275 1,891 57.7 %Other items, net372 2,581 (2,209)(85.6)%Operating Loss$(26,514)$(24,568)$(1,946)7.9 %

Operating Loss for the three months ended September 30, 2025 was $26.5 million, compared to $24.6 million for the three months ended September 30, 2024, representing an increase of $1.9 million. The increase in Operating Loss was primarily attributable to higher Staff costs, Stock-based compensation, and Depreciation and amortization, partially offset by a decrease in Administrative costs.

Staff costs increased by $3.2 million, primarily due to higher insurance claims.

Administrative costs decreased $2.3 million, primarily due to lower professional and legal fees due to a decrease in the number of acquisitions.

52

NINE MONTHS ENDED SEPTEMBER 30, 2025 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2024

Consolidated Results of Operations 

The components of operating results for the nine months