Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 199

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 199
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 Company had an income tax expense for the nine months ended September 30, 2025 of $14.0 million (on a pre-tax income of $27.7 million resulting in an effective tax rate of 50.3%) compared to income tax expense of $9.4 million (on pre-tax income of $18.1 million resulting in an effective tax rate of 52.1%) for the nine months ended September 30, 2024.

The difference in the effective tax rate of 50.3% in the nine months ended September 30, 2025, as compared to 52.1% in the nine months ended September 30, 2024, was primarily due to a reduction in interest related to uncertain tax positions and a reduction in shortfall of deductions for share based compensation expense vested during the period, offset by a decrease in the benefit of the disregarded entity structure due to the full exchange in April 2025. 

Noncontrolling and Redeemable Noncontrolling Interests 

The effect of noncontrolling and redeemable noncontrolling interests for the nine months ended September 30, 2025 was a loss of $2.6 million, compared to an income of $10.2 million for the nine months ended September 30, 2024. The amounts are driven by the mix of income and loss derived from entities not entirely owned by the Company. Additionally, the change was driven by the Class C Exchange during the second quarter of 2025.

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 nine months ended September 30, 2025 was $16.4 million, compared to a net loss of $1.0 million for the nine months ended September 30, 2024.

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Earnings Per Share

Diluted EPS and Adjusted Diluted EPS for the nine months ended September 30, 2025 were as follows:

GAAPAdjustmentsNon-GAAP(amounts in thousands, except per share amounts)Net income attributable to Stagwell Inc. common shareholders$16,441 $131,430 $147,871 Net loss attributable to Class C shareholders(6,637)— (6,637)Net income attributable to Stagwell Inc. and Class C shareholders and adjusted net income$9,804 $131,430 $141,