Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 11

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 11
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 year ended December 31, 2024 of $13.2 million (on a pre-tax income of $37.7 million resulting in an effective tax rate of 34.9%), compared to income tax expense of $40.6 million (on pre-tax income of $91.1 million resulting in an effective tax rate of 44.5%) for the year ended December 31, 2023. 

The difference in the effective tax rate of 34.9% in the year ended December 31, 2024, compared to 44.5% in the year ended December 31, 2023, is primarily due to a decrease on gain related to sale of business, and a change in prior period adjustments offset by an increase in foreign tax and a reduction in tax benefits for share based compensation

Noncontrolling and Redeemable Noncontrolling Interests

The effect of noncontrolling and redeemable noncontrolling interests for the year ended December 31, 2024 was income of $22.8 million, compared to an income of $41.5 million for the year ended December 31, 2023. The amounts are driven by the mix of income and loss derived from entities not entirely owned by the Company.

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

As a result of the foregoing, net income attributable to Stagwell Inc. common shareholders for the year ended December 31, 2024, was $2.3 million, compared to net income of $0.1 million for the year ended December 31, 2023.

36

Earnings Per Share 

Diluted EPS and Adjusted Diluted EPS for the year ended December 31, 2024, were as follows:

GAAPAdjustments(1)Non-GAAP(amounts in thousands, except per share amounts)Net income attributable to Stagwell Inc. common shareholders$2,259 $80,403 $82,662 Net income attributable to Class C shareholders— 123,942 123,942 Net income attributable to Stagwell Inc. and Class C and adjusted net income  $2,259 $204,345 $206,604 Weighted average number of common shares outstanding115,752 2,234 117,986 Weighted average number of common Class C shares outstanding— 151,649 151,649 Weighted average number of shares outstanding115,