Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 32

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 32
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%Net Revenue$274,978 $239,613 $35,365 14.8 %Billable costs 17,210 9,363 7,847 83.8 %Revenue292,188 248,976 43,212 17.4 %Billable costs17,210 9,363 7,847 83.8 %Staff costs184,886 166,965 17,921 10.7 %Administrative costs19,599 15,707 3,892 24.8 %Unbillable and other costs, net1,151 788 363 46.1 %Adjusted EBITDA69,342 56,153 13,189 23.5 %Stock-based compensation3,081 8,102 (5,021)(62.0)%Depreciation and amortization17,250 16,813 437 2.6 %Deferred acquisition consideration7,729 3,690 4,039 109.5 %Other items, net1,493 2,889 (1,396)(48.3)%Operating Income$39,789 $24,659 $15,130 61.4 %

Revenue

Revenue for the nine months ended September 30, 2025 was $292.2 million, compared to $249.0 million for the nine months ended September 30, 2024, an increase of $43.2 million.

Net Revenue

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

Net Revenue - Components of ChangeChangeNine Months Ended September 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeNine Months Ended September 30, 2025OrganicTotal(dollars in thousands)Digital Transformation$239,613 $(275)$8,196 $27,444 $35,365 $274,978 11.5 %14.8 %Component % change(0.1)%3.4 %11.5 %14.8 %

The increase in organic net revenue was primarily attributable to new client wins and higher spending in the technology and communications sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Create