Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 102

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 102
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 2025, was $1.2 million, compared to a loss of $2.3 million for the three months ended March 31, 2024, primarily attributable to the movement in the British Pound and Euro.

Income Tax Expense

The Company had an income tax expense for the three months ended March 31, 2025 of $1.7 million (on a pre-tax loss of $3.6 million resulting in an effective tax rate of (47.8)%), primarily due to the tax benefit of the small pre-tax loss being more than offset by the current losses subject to valuation allowance and withholding taxes recorded in the period.

The Company had income tax expense for the three months ended March 31, 2024 of $2.6 million (on pre-tax income of $1.4 million resulting in an effective tax rate of 189.5%) primarily driven by nominal pre-tax profit, current losses subject to valuation allowance and a shortfall in deductions for share based compensation expense vested during the period.

Noncontrolling and Redeemable Noncontrolling Interests 

The effect of noncontrolling and redeemable noncontrolling interests for the three months ended March 31, 2025 was loss of $2.4 million, compared to an income of $0.6 million for the three months ended March 31, 2024. The amounts are driven by the mix of income and loss derived from entities not entirely owned by the Company.

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Net Income (Loss) Attributable to Stagwell Inc. Common Shareholders 

As a result of the foregoing, net loss attributable to Stagwell Inc. common shareholders for the three months ended March 31, 2025, was $2.9 million, compared to a net loss of $1.3 million for the three months ended March 31, 2024.

Earnings Per Share 

Diluted EPS and Adjusted Diluted EPS for the three months ended March 31, 2025, were as follows:

GAAPAdjustmentsNon-GAAP(amounts in thousands, except per share amounts)Net income (loss) attributable to Stagwell Inc. common shareholders$(2,917)$18,439 $15,522 Net income (loss) attributable to Class C shareholders(6,637)24,513 17,876 Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income$(9,554)$42,952 $33