Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 33

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 33
---
.

Operating Income

Operating Income for the nine months ended September 30, 2025 was $39.8 million, compared to $24.7 million for the nine months ended September 30, 2024, representing an increase of $15.1 million. The increase in Operating Income was primarily attributable to an increase in Net revenue of $35.4 million, partially offset by an increase in Cost of services excluding Billable costs. Cost of services increased $22.8 million. Excluding the increase in Billable costs of $7.8 million, Cost of services increased $15.0 million, primarily due to higher staff costs as well as the inclusion of costs from acquired entities.

Deferred acquisition consideration increased $4.0 million, primarily attributable to an increase in the fair value of the deferred acquisition consideration liability associated with a certain Brand.

Adjusted EBITDA increased by $13.2 million, primarily driven by an increase in Operating Income, as discussed above.

60

Media & Commerce

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$479,648 $521,963 $(42,315)(8.1)%Operating ExpensesCost of services289,048 323,772 (34,724)(10.7)%Office and general expenses155,030 144,796 10,234 7.1 %Depreciation and amortization21,626 24,149 (2,523)(10.4)%$465,704 $492,717 $(27,013)(5.5)%Operating Income$13,944 $29,246 $(15,302)(52.3)%

Nine Months Ended September 30,20252024Change(dollars in thousands)$%Net Revenue$431,855 $439,783 $(7,928)(1.8)%Billable costs 47,793 82,180 (34,387)(41.8)%Revenue479,648 521,963 (42,315)(8.1)%Billable costs47,793 82,180 (34,387)(41.8)%Staff costs269,318 265,576 3,742 1.4 %Administrative costs67,097 61