Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 21

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 21
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 decrease in Cost of Services was primarily attributable to lower unbillable costs and staff costs, commensurate with lower revenue.

The increase in Office and general expenses was primarily attributable to an increase in staff costs as a result of a change in the organization structure of certain Brands.

Depreciation and amortization increased $4.3 million, primarily attributable to the acceleration of amortization of certain tradenames. As a result, amortization expense of $2.8 million was recorded in the year ended December 31, 2024, representing the remaining amortization expense associated with these tradenames.

Adjusted EBITDA decreased $5.2 million, primarily driven by a decrease in Revenue, offset by a decrease in expenses, as discussed above.

Corporate 

The components of operating results for the year ended December 31, 2024, compared to the year ended December 31, 2023 were as follows: 

Year Ended December 31,20242023Change(dollars in thousands)$%Staff costs$47,736 $36,938 $10,798 29.2 %Administrative costs16,402 11,472 4,930 43.0 %Adjusted EBITDA(64,138)(48,410)(15,728)32.5 %Stock-based compensation13,653 19,638 (5,985)(30.5)%Depreciation and amortization12,137 8,218 3,919 47.7 %Impairment and other losses215 — 215 100.0 %Other items, net4,931 10,007 (5,076)(50.7)%Operating Loss$(95,074)$(86,273)$(8,801)10.2 %

Operating Loss for the year ended December 31, 2024, was $95.1 million, compared to $86.3 million for the year ended December 31, 2023, representing an increase of $8.8 million. The increase in Operating Loss was primarily attributable to an increase in Staff costs, partially offset by a decrease in Stock-based compensation.

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Staff costs increased $10.8 million, primarily as a result of an increase in headcount, higher health insurance costs and a reduction in bonus expense in 2023 related to cost savings initiatives. 

Stock-based compensation expense decreased $6.0 million, primarily attributable to a decrease in the fair value and