Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 195

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 195
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,179 (1,278)(4.2)%Adjusted EBITDA27,124 45,200 (18,076)(40.0)%Stock-based compensation2,177 3,488 (1,311)(37.6)%Depreciation and amortization15,867 19,229 (3,362)(17.5)%Deferred acquisition consideration1,530 495 1,035 209.1 %Other items, net7,367 8,287 (920)(11.1)%Operating Income$183 $13,701 $(13,518)(98.7)%

Revenue

Revenue for the six months ended June 30, 2025, was $332.3 million, compared to $391.2 million for the six months ended June 30, 2024, a decrease of $58.9 million.

Net Revenue

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

Net Revenue - Components of ChangeChangeSix Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeSix Months Ended June 30, 2025OrganicTotal(dollars in thousands)Brand Performance Network$319,670$1,011$142$(19,097)$(17,944)$301,726(6.0)%(5.6)%Component % change0.3%—%(6.0)%(5.6)%

The decrease in organic net revenue was primarily attributable to decreased spending by existing clients in the business services and transportation sectors.

Operating Income

Operating Income for the six months ended June 30, 2025, was $0.2 million, compared to $13.7 million for the six months ended June 30, 2024, representing a decrease of $13.5 million. The decrease in Operating Income was primarily attributable to a decline in Net revenue of $17.9 million, partially offset by a decline in Cost of services, excluding Billable costs. Cost of services decreased $44.8 million. Excluding the decline in Billable costs of $40.9 million, Cost of services decreased $3.9 million.

Adjusted EBITDA decreased by $18.1 million, primarily driven by a decrease in Operating Income, as discussed above.

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