Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 36

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 36
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 13,544 5,805 42.9 %Deferred acquisition consideration(4,879)9,097 (13,976)NMImpairment and other losses222 — 222 100.0 %Other items, net3,686 3,457 229 6.6 %Operating Income$43,743 $67,963 $(24,220)(35.6)%

Revenue

Revenue for the nine months ended September 30, 2025 was $420.2 million compared to $474.0 million for the nine months ended September 30, 2024, a decrease of $53.7 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)Communications$303,890 $162 $29,002 $(47,948)$(18,784)$285,106 (15.8)%(6.2)%Component % change0.1 %9.5 %(15.8)%(6.2)%

The decrease in organic net revenue was primarily attributable to decreased spending, primarily due to lower advocacy services as compared to higher spending in 2024 associated with the 2024 elections and decreased spending in the healthcare and consumer products 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 nine months ended September 30, 2025 was $43.7 million, compared to $68.0 million for the nine months ended September 30, 2024, representing a decrease of $24.2 million. The decrease in Operating Income was primarily attributable to a decrease in Net revenue of $18.8 million and an increase in Cost of services excluding Billable costs, and Depreciation and amortization, partially offset by a decrease in Office and general expenses.

Cost of services decreased $25.4 million. Excluding the decline in Billable costs of $35.0 million, Cost of services increased $9.6 million due to the inclusion of costs