Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 113

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 113
---
011142(19,097)(17,944)301,726(6.0)%(5.6)%Communications Network139,88110125,203(23,845)1,459141,340(17.0)%1.0%All Other12,653(80)29,7646,23135,91548,56849.2%283.8%$1,086,846$834$68,689$5,947$75,470$1,162,3160.5%6.9%Component % change0.1%6.3%0.5%6.9%

For the six months ended June 30, 2025, organic net revenue increased by $5.9 million, or 0.5%. The increase was primarily attributable to new wins and increased spending by clients in the technology and retail sectors. This increase was partially offset by losses and a decrease in client spending due to budget cuts in the consumer products sector. The increase in net acquisitions (divestitures) was impacted by the acquisitions of Jetfuel, Create, Consulum, Leaders, and Unicepta.

54

The geographic mix in Net revenue for the six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended June 30, 20252024(dollars in thousands)United States$905,523 $880,930 United Kingdom72,859 76,186 Other183,934 129,730 Total$1,162,316 $1,086,846 

Operating Income

Operating Income for the six months ended June 30, 2025, was $41.5 million, compared to $47.8 million for the six months ended June 30, 2024, representing a decrease of $6.3 million. The decrease in Operating Income was primarily attributable to an increase in expenses partially offset by an increase in Revenue. 

Cost of services decreased by $12.1 million. Excluding the decline in Billable costs of $58.1 million, Cost of services increased $46.0 million, primarily attributable to the inclusion of expenses of acquired entities.

Office and general expenses increased by $30.9 million, primarily attributable to the inclusion of expenses of acquired entities and higher staff costs. 

Stock-based compensation increased by $9.5 million, primarily due to an increase in the fair value of profit interest awards and an increase in the