Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 145

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 145
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730 United KingdomAll38,051 40,515 75,935 78,276 OtherAll111,372 79,573 212,610 148,221 $706,818 $671,168 $1,358,558 $1,341,227 Contract Assets and LiabilitiesContract assets consist of fees and reimbursable outside vendor costs incurred on behalf of clients when providing advertising, marketing and corporate communications services that have not yet been invoiced to clients. Such amounts are invoiced to clients at various times over the course of providing services. In arrangements in which we are acting as principal, contract assets are included as a component of Accounts receivable on the Unaudited Consolidated Balance Sheets. These assets were $192.2 million and $135.9 million as of June 30, 2025 and December 31, 2024, respectively. In arrangements in which we are acting as agent, contract assets pertaining to reimbursable outside vendor costs are included on the Unaudited Consolidated Balance Sheets as Expenditures billable to clients. These assets were $150.2 million and $173.2 million as of June 30, 2025 and December 31, 2024, respectively.Contract liabilities represent advanced billings to customers for fees and reimbursements of third-party costs, whether we act as principal or agent. Such fees and reimbursements of third-party costs are classified as Advance billings on the Company’s Unaudited Consolidated Balance Sheets. Advance billings at June 30, 2025 and December 31, 2024, were $339.6 million and $294.6 million, respectively. The change in Advance billings of $45.0 million for the six months ended June 30, 2025 was primarily driven by $231.1 million of revenue recognized that was included in the Advance billings balances as of December 31, 2024, the incurrence of third-party costs, and cash payments received or due in advance of satisfying our performance obligations. In arrangements in which we are acting as an agent, the revenue recognized related to the contract liability is presented on a net basis within the Unaudited Consolidated Statements of Operations.Changes in the contract asset and liability balances during the six months ended June 30, 2025 were not materially impacted by acquisitions, write-offs, impairment losses or any other factors.

20

Unsatisfied Performance Obl