Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 182

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 182
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102 $6 $96 NM

Revenue

Revenue for the three months ended June 30, 2025 was $170.1 million, compared to $177.2 million for the three months ended June 30, 2024, a decrease of $7.1 million.

Net Revenue

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

Net Revenue - Components of ChangeChangeThree Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended June 30, 2025OrganicTotal(dollars in thousands)Brand Performance Network$157,108$2,289$142$(4,671)$(2,240)$154,868(3.0)%(1.4)%Component % change1.5%0.1%(3.0)%(1.4)%

The decrease in organic net revenue was primarily attributable to lower spending due to budget cuts in the Communication sector. 

Operating Income

The increase in Operating Income of $0.1 million was primarily attributable to a decline in Net revenue of $2.2 million, more than offset by a decline in Cost of services, excluding Billable costs of $2.8 million. The total decrease in Cost of services of $7.7 million was primarily due to a decline in Billable costs of $4.9 million. The increase in Operating Income was further driven by a decrease in Depreciation and amortization partially offset by an increase in Office and general expenses. 

The increase in Office and general expenses of $4.0 million was primarily attributable to an increase in staff restructuring related expenses and an increase in Deferred acquisition consideration of a certain Brand.

Depreciation and amortization decreased by $3.6 million, primarily attributable to the acceleration of amortization of certain tradenames during the three months ended June 30, 2024.

Adjusted EBITDA decreased $2.1 million, primarily driven by an increase in expenses and a decrease in Revenue, as discussed above.

49

Communications Network

The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows: 

Three Months Ended June 30,20252024Change(dollars in thousands)$%Revenue$106,