Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 125

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 125
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 million, compared to $249.0 million for the nine months ended September 30, 2024, an increase of $43.2 million.

Net Revenue

The components of the fluctuations in net revenue for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 were as follows: 

Net Revenue - Components of ChangeChangeNine Months Ended September 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeNine Months Ended September 30, 2025OrganicTotal(dollars in thousands)Digital Transformation$239,613 $(275)$8,196 $27,444 $35,365 $274,978 11.5 %14.8 %Component % change(0.1)%3.4 %11.5 %14.8 %

The increase in organic net revenue was primarily attributable to new client wins and higher spending in the technology and communications sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Create.

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,