Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 41

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 41
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51,560 59,947 (8,387)(14.0)%Staff costs199,882 186,534 13,348 7.2 %Administrative costs31,644 30,602 1,042 3.4 %Unbillable and other costs, net17,099 15,528 1,571 10.1 %Adjusted EBITDA77,169 60,108 17,061 28.4 %Stock-based compensation4,145 9,321 (5,176)(55.5)%Depreciation and amortization21,364 19,381 1,983 10.2 %Deferred acquisition consideration5,863 2,045 3,818 186.7 %Impairment and other losses— 1,500 (1,500)(100.0)%Other items, net(2,246)5,511 (7,757)(140.8)%Operating Income$48,043 $22,350 $25,693 115.0 %

Revenue

Revenue for the three months ended March 31, 2025 was $377.4 million, compared to $352.7 million for the three months ended March 31, 2024, an increase of $24.6 million. 

Net Revenue

Net revenue for the three months ended March 31, 2025 was $325.8 million, compared to $292.8 million for the three months ended March 31, 2024, an increase of $33.0 million or 11.3%. The increase was primarily attributable to new client wins and higher spending in the technology and retail sectors. 

40

Operating Income

Operating Income for the three months ended March 31, 2025, was $48.0 million, compared to $22.4 million for the three months ended March 31, 2024, representing an increase of $25.7 million. The increase in Operating Income was primarily attributable to an increase in Net revenue of $33.0 million, partially offset by higher Cost of services, excluding Billable costs.  Cost of services decreased $2.2 million. Excluding the decline in Billable costs of $8.4 million, Cost of services increased $6.2 million, primarily attributable to higher staff costs.

Adjusted EBITDA increased by $17.1 million, primarily driven by higher Net