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

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 31
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6,140)86.1 %Stock-based compensation396 350 46 13.1 %Depreciation and amortization9,228 7,365 1,863 25.3 %Deferred acquisition consideration1,499 — 1,499 100.0 %Other items, net1,581 604 977 161.8 %Operating Loss$(25,979)$(15,454)$(10,525)68.1 %

(1) All Other Revenue and Administrative costs include approximately $11 million and $8 million of eliminations of intercompany services for the three months ended June 30, 2025, and 2024, respectively.

Revenue

Revenue for the six months ended June 30, 2025, was $48.9 million, compared to $12.9 million for the six months ended June 30, 2024, an increase of $36.1 million. 

Net Revenue

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

Net Revenue - Components of ChangeChangeSix Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeSix Months Ended June 30, 2025OrganicTotal(dollars in thousands)All Other$12,653$(80)$29,764$6,231$35,915$48,56849.2%283.8%Component % change(0.6)%235.2%49.2%283.8%

The increase in organic net revenue was primarily attributable to new wins and increased spending by clients in the consumer products and technology sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Leaders and Unicepta.

Operating Loss

Operating Loss for the six months ended June 30, 2025, was $26.0 million, compared to $15.5 million for the six months ended June 30, 2024, representing an increase of $10.5 million. The increase in Operating Loss was primarily driven by an increase in Net revenue, more than offset by higher Cost of services and Office and general expenses, as detailed below. 

Cost of services increased by $17.2 million primarily attributable to inclusion of costs from acquired entities.

The $27.5 million increase in Office