Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 189

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 189
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 in net acquisitions (divestitures) was impacted by the acquisitions of Jetfuel, Create, Consulum, Leaders, and Unicepta.

54

The geographic mix in Net revenue for the six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended June 30, 20252024(dollars in thousands)United States$905,523 $880,930 United Kingdom72,859 76,186 Other183,934 129,730 Total$1,162,316 $1,086,846 

Operating Income

Operating Income for the six months ended June 30, 2025, was $41.5 million, compared to $47.8 million for the six months ended June 30, 2024, representing a decrease of $6.3 million. The decrease in Operating Income was primarily attributable to an increase in expenses partially offset by an increase in Revenue. 

Cost of services decreased by $12.1 million. Excluding the decline in Billable costs of $58.1 million, Cost of services increased $46.0 million, primarily attributable to the inclusion of expenses of acquired entities.

Office and general expenses increased by $30.9 million, primarily attributable to the inclusion of expenses of acquired entities and higher staff costs. 

Stock-based compensation increased by $9.5 million, primarily due to an increase in the fair value of profit interest awards and an increase in the number of awards expensed, compared to last year, partially offset by a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.

Deferred acquisition consideration decreased by $4.0 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.

Depreciation and amortization increased by $6.5 million, primarily attributable to the Company’s acquisition of businesses.

Interest Expense, Net

Interest expense, net for the six months ended June 30, 2025 was $46.8 million, compared to $44.5 million for the six months ended June 30, 2024, an increase of $2.3 million, primarily attributable to higher levels of debt outstanding under the Credit Agreement (as defined and discussed in Note 8 of the Notes to the Unaudited Consolidated Financial Statements included herein), partially offset by a lower average interest rate.

Foreign Exchange, Net

The foreign exchange loss for the six