Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 189

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 189
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itures) was primarily driven by the acquisition of Create.

Operating Income

Operating Income for the three months ended September 30, 2025 was $16.7 million, compared to $13.6 million for the three months ended September 30, 2024, representing an increase of $3.2 million. The increase in Operating Income was primarily attributable to an increase in Net revenue of $10.1 million, partially offset by an increase in Cost of services excluding Billable costs. Cost of services increased $10.7 million. Excluding the decline in Billable costs of $5.3 million, Cost of services increased $5.4 million, primarily attributable to higher staff costs and the inclusion of costs from acquired entities.

46

Media & Commerce

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)$%Revenue$174,738 $159,595 $15,143 9.5 %Operating ExpensesCost of services104,600 95,950 8,650 9.0 %Office and general expenses51,706 45,237 6,469 14.3 %Depreciation and amortization7,332 6,509 823 12.6 %$163,638 $147,696 $15,942 10.8 %Operating Income$11,100 $11,899 $(799)(6.7)%

Three Months Ended September 30,20252024Change(dollars in thousands)$%Net Revenue$154,157 $145,558 $8,599 5.9 %Billable costs 20,581 14,037 6,544 46.6 %Revenue174,738 159,595 15,143 9.5 %Billable costs20,581 14,037 6,544 46.6 %Staff costs91,365 88,390 2,975 3.4 %Administrative costs22,966 20,171 2,795 13.9 %Unbillable and other costs, net15,196 16,357 (1,161)(7.1)%Adjusted EBITDA24,630 20,640 3,990