Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 108

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 108
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(88)(10.6)%Depreciation and amortization4,972 3,090 1,882 60.9 %Deferred acquisition consideration(2,376)3,433 (5,809)NMOther items, net1,539 390 1,149 294.6 %Operating Income$14,481 $14,433 $48 0.3 %

Revenue

Revenue for the three months ended June 30, 2025 was $106.1 million, compared to $105.6 million for the three months ended June 30, 2024, an increase of $0.6 million. 

50

Net Revenue

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

Net Revenue - Components of ChangeChangeThree Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended June 30, 2025OrganicTotal(dollars in thousands)Communications Network$72,393$144$10,855$(9,050)$1,949$74,342(12.5)%2.7%Component % change0.2%15.0%(12.5)%2.7%

The decrease in organic net revenue was primarily attributable to decreased spending in the Public Affairs as 2024 was a presidential election year, and a decreased spending in Consumer Products and Healthcare sectors due to client losses and budget cuts. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Consulum.

Operating Income

Operating Income for the three months ended June 30, 2025 was $14.5 million, compared to $14.4 million for the three months ended June 30, 2024. The increase in Operating Income was primarily attributable to an increase in Revenue and a decrease in Office and general expenses, partially offset by an increase in Costs of services and Depreciation and amortization.

The increase in Cost of services was primarily attributable to higher staff costs primarily due to the inclusion of costs from acquired entities.

The decrease in Office and general expenses was primarily attributable to a decrease in Deferred acquisition consideration.

Deferred acquisition consideration decreased $5.8 million, primarily as a result of a decrease in the fair value of a certain Brand, partially offset by an increase in the fair value of