Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 186

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 186
---
 organic net revenue was primarily attributable to new wins and increased spend in the technology and consumer products sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Leaders and Unicepta.

Operating Loss

Operating Loss for the three months ended June 30, 2025 was $13.9 million, compared to $8.8 million for the three months ended June 30, 2024, representing an increase of $5.2 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. 

Cost of services and Office and general expenses increased by $10.4 million and $16.0 million, respectively, primarily due to inclusion of costs from acquired entities.

Adjusted EBITDA decreased $3.8 million, primarily due to an increase in expenses, which was partially offset by an increase in Revenue from the acquired entities.

52

Corporate 

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

Three Months Ended June 30,20252024Change(dollars in thousands)$%Staff costs$12,978 $12,154 $824 6.8 %Administrative costs(332)6,468 (6,800)NMAdjusted EBITDA(12,646)(18,622)5,976 (32.1)%Stock-based compensation5,951 (1,498)7,449 NMDepreciation and amortization3,223 2,780 443 15.9 %Impairment and other losses— 215 (215)(100.0)%Other items, net1,747 752 995 132.3 %Operating Loss$(23,567)$(20,871)$(2,696)12.9 %

Operating Loss for the three months ended June 30, 2025 was $23.6 million, compared to $20.9 million for the three months ended June 30, 2024, representing an increase of $2.7 million. The increase in Operating Loss was primarily attributable to higher Stock-based compensation. 

Stock-based compensation increased $7.4 million, primarily due to an increase in the number of awards, partially offset by a decrease in the fair value of the awards and a reversal of expense in