Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 35

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 35
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3 million.

The increase in Office and general expenses of $10.2 million was primarily attributable to an increase in deferred acquisition consideration expense.

Deferred acquisition consideration increased by $9.4 million, primarily attributable to an increase in the fair value of a certain Brand in 2025 and a decrease in the fair value of a certain Brand in 2024.

Adjusted EBITDA decreased by $14.8 million, primarily due to a decrease in Operating Income, as discussed above.

Communications

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$420,215 $473,957 $(53,742)(11.3)%Operating ExpensesCost of services292,889 318,241 (25,352)(8.0)%Office and general expenses64,012 74,209 (10,197)(13.7)%Depreciation and amortization19,349 13,544 5,805 42.9 %Impairment and other losses222 — 222 100.0 %$376,472 $405,994 $(29,522)(7.3)%Operating Income$43,743 $67,963 $(24,220)(35.6)%

62

Nine Months Ended September 30,20252024Change(dollars in thousands)$%Net Revenue$285,106 $303,890 $(18,784)(6.2)%Billable costs 135,109 170,067 (34,958)(20.6)%Revenue420,215 473,957 (53,742)(11.3)%Billable costs135,109 170,067 (34,958)(20.6)%Staff costs172,273 162,715 9,558 5.9 %Administrative costs37,042 33,689 3,353 10.0 %Unbillable and other costs, net6,910 7,958 (1,048)(13.2)%Adjusted EBITDA68,881 99,528 (30,647)(30.8)%Stock-based compensation6,760 5,467 1,293 23.7 %Depreciation and amortization19,349