Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 203

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 203
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 attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.

Other items, net decreased $7.1 million, primarily attributable to a lease termination during the first quarter of 2025 resulting in a gain on termination of $3.5 million and a decrease in severance of $1.5 million.

Adjusted EBITDA increased by $24.2 million, primarily driven by higher Net revenue, partially offset by an increase in Cost of services, as discussed above.

Digital Transformation

The components of operating results for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 were as follows: 

Nine Months Ended September 30,20252024Change(dollars in thousands)$%Revenue$292,188 $248,976 $43,212 17.4 %Operating ExpensesCost of services177,397 154,641 22,756 14.7 %Office and general expenses57,752 52,863 4,889 9.2 %Depreciation and amortization17,250 16,813 437 2.6 %$252,399 $224,317 $28,082 12.5 %Operating Income$39,789 $24,659 $15,130 61.4 %

59

Nine Months Ended September 30,20252024Change(dollars in thousands)$%Net Revenue$274,978 $239,613 $35,365 14.8 %Billable costs 17,210 9,363 7,847 83.8 %Revenue292,188 248,976 43,212 17.4 %Billable costs17,210 9,363 7,847 83.8 %Staff costs184,886 166,965 17,921 10.7 %Administrative costs19,599 15,707 3,892 24.8 %Unbillable and other costs, net1,151 788 363 46.1 %Adjusted EBITDA69,342 56,153 13,189 23.5 %Stock-based compensation3,081 8,102 (5,021)(62.0)%Depreciation and amortization17,250 16,813 437 2.6 %Deferred acquisition consideration