Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 34

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 34
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,509 5,588 9.1 %Unbillable and other costs, net43,833 46,244 (2,411)(5.2)%Adjusted EBITDA51,607 66,454 (14,847)(22.3)%Stock-based compensation3,065 4,399 (1,334)(30.3)%Depreciation and amortization21,626 24,149 (2,523)(10.4)%Deferred acquisition consideration2,942 (6,453)9,395 NMOther items, net10,030 15,113 (5,083)(33.6)%Operating Income$13,944 $29,246 $(15,302)(52.3)%

Revenue

Revenue for the nine months ended September 30, 2025 was $479.6 million, compared to $522.0 million for the nine months ended September 30, 2024, a decrease of $42.3 million. 

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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)Media & Commerce$439,783 $1,651 $2,675 $(12,254)$(7,928)$431,855 (2.8)%(1.8)%Component % change0.4 %0.6 %(2.8)%(1.8)%

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

Operating Income

Operating Income for the nine months ended September 30, 2025 was $13.9 million, compared to $29.2 million for the nine months ended September 30, 2024, representing a decrease of $15.3 million. The decrease in Operating Income was primarily attributable to a decrease in Net revenue of $7.9 million and an increase in Office and general expenses. Cost of services decreased $34.7 million. Excluding the decline in Billable costs of $34.4 million, Cost of services decreased $0.