Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 107

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 107
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5, was $0.1 million, compared to $13.7 million for the three months ended March 31, 2024, representing a decrease of $13.6 million. The decrease in Operating Income was primarily attributable to a decline in Net revenue of $15.7 million, partially offset by a decline in Cost of services, excluding Billable costs. Cost of services decreased $37.1 million. Excluding the decline in Billable costs of $36.0 million, Cost of services  decreased $1.1 million.

Adjusted EBITDA decreased by $16.0 million, primarily driven by a decrease in Operating Income, as discussed above.

Communications Network

The components of operating results for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, were as follows: 

Three Months Ended March 31,20252024Change(dollars in thousands)$%Revenue$87,628 $93,746 $(6,118)(6.5)%Operating ExpensesCost of services58,456 58,504 (48)(0.1)%Office and general expenses19,449 16,075 3,374 21.0 %Depreciation and amortization5,175 2,894 2,281 78.8 %$83,080 $77,473 $5,607 7.2 %Operating Income$4,548 $16,273 $(11,725)(72.1)%

42

Three Months Ended March 31,20252024Change(dollars in thousands)$%Net Revenue$66,998 $67,488 $(490)(0.7)%Billable costs 20,630 26,258 (5,628)(21.4)%Revenue87,628 93,746 (6,118)(6.5)%Billable costs20,630 26,258 (5,628)(21.4)%Staff costs44,577 39,264 5,313 13.5 %Administrative costs10,174 8,704 1,470 16.9 %Unbillable and other costs, net490 136 354 260.3 %Adjusted EBITDA11,757 19,384 (7,627)(39.3)%Stock-based compensation693 1,049 (356)(