Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 145

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 145
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 %Billable costs3 — 3 100.0 %Staff costs15,455 7,821 7,634 97.6 %Administrative costs (1)8,225 3,209 5,016 156.3 %Unbillable and other costs, net7,187 2,588 4,599 177.7 %Adjusted EBITDA(6,330)(3,986)(2,344)58.8 %Stock-based compensation229 98 131 133.7 %Depreciation and amortization4,301 2,421 1,880 77.7 %Deferred acquisition consideration863 — 863 100.0 %Other items, net311 174 137 78.7 %Operating Loss$(12,034)$(6,679)$(5,355)80.2 %

(1) All Other Revenue and Administrative costs include approximately $5 million and $6 million of eliminations of intercompany services for the three months ended March 31, 2025, and 2024, respectively.

Revenue

Revenue for the three months ended March 31, 2025, was $24.5 million, compared to $9.6 million for the three months ended March 31, 2024, an increase of $14.9 million. 

44

Net Revenue

Net revenue for the three months ended March 31, 2025 was $24.5 million, compared to $9.6 million for the three months ended March 31, 2024, an increase of $14.9 million or 154.7%. The increase was primarily attributable to the acquisition of Unicepta.

Operating Loss

Operating Loss for the three months ended March 31, 2025, was $12.0 million, compared to $6.7 million for the three months ended March 31, 2024, representing an increase of $5.4 million. The increase in Operating Loss was primarily driven by an increase in Net revenue, more than offset by higher Cost of services and Office and general expenses, as detailed below. 

Cost of services increased by $6.9 million primarily attributable to inclusion of costs from acquired entities.

The $11.5 million increase in Office and general expenses was primarily attributable to inclusion of costs from acquired entities as well as higher software license fees.

Adjusted EBITDA decreased by $2.