Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 68

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 68
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 adjustment and for the settlement of a certain payable to sellers as noted above. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of £8.0 million (approximately $10 million), subject to continued employment requirements and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was mainly recorded as goodwill, which is primarily attributable to the assembled workforce of Sidekick and expected growth related to new customer relationships. Goodwill of $2.2 million was assigned to the Communications Network reportable segment. The goodwill is not fully deductible for income tax purposes. 

4. Revenue Disaggregated Revenue DataThe Company provides a broad range of services to a large base of clients across the full spectrum of verticals globally. The primary source of revenue is from Brand arrangements in the form of fees for services performed, commissions, and from performance incentives or bonuses. Certain clients may engage with the Company in various geographic locations, across multiple disciplines, and through multiple Brands. Representation of a client rarely means that Stagwell handles marketing communications for all Brands or product lines of the client in every geographical location. The Company’s Brands often cooperate with one another through referrals and the sharing of both services and expertise, which enables Stagwell to service clients’ varied marketing needs by crafting custom integrated solutions. 

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In the first quarter of 2025, the Company reclassified a certain Brand from the Digital Transformation into the Performance Media and Data principal capability, to better align with our service offerings. Prior periods presented have been recast to reflect this change. The following table presents revenue disaggregated by our principal capabilities for the three and six months ended June 30, 2025 and 2024: Three Months Ended June 30,Six Months Ended June 30,Principal CapabilitiesReportable Segment2025202420252024(dollars in thousands)Digital TransformationAll segments$125,947 $125,342 $242,413 $241,101 Creativity and CommunicationsAll segments340,762 316,761 643,796 608,414 Performance Media and DataIntegrated Agencies Network and Brand Performance Network112,368 116,541 222,185 273,561 Consumer Insights and StrategyIntegrated Agencies Network49,655 47,717 98,546 93,486 Stagwell Marketing Cloud GroupAll segments