Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 180

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 180
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 7,439 153.4 %Depreciation and amortization20,102 19,472 630 3.2 %Deferred acquisition consideration(4,292)2,531 (6,823)(269.6)%Other items, net3,311 4,029 (718)(17.8)%Operating Income$46,101 $37,114 $8,987 24.2 %`

Revenue

Revenue for the three months ended June 30, 2025 was $406.2 million, compared to $385.1 million for the three months ended June 30, 2024, an increase of $21.1 million. 

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Net Revenue

The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows: 

Net Revenue - Components of ChangeChangeThree Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended June 30, 2025OrganicTotal(dollars in thousands)Integrated Agencies Network$321,870$744$9,037$13,237$23,018$344,8884.1%7.2%Component % change0.2%2.8%4.1%7.2%

The increase in organic net revenue was primarily attributable to new client wins and increased spending in the technology, retail, and automotive sectors, partially offset by lower spending due to budget cuts by large clients in the food and beverage and consumer products sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Jetfuel and Create.

Operating Income

Operating Income for the three months ended June 30, 2025 was $46.1 million, compared to $37.1 million for the three months ended June 30, 2024, representing an increase of $9.0 million, primarily attributable to an increase in Revenue and a decrease in Office and general expenses, partially offset by an increase in Cost of services.

The increase in Cost of services was primarily attributable to higher staff costs due to the inclusion of costs from acquired entities, and higher stock-based compensation.

The decrease in Office and general expenses was primarily attributable to a decrease in deferred acquisition consideration expense.

Stock-based compensation increased by $7.4 million, primarily due to an increase in the