Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 16

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 16
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Adjusted EBITDA increased by $13.1 million, primarily driven by an increase in Net revenue, as discussed above.

Digital Transformation

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

Three Months Ended September 30,20252024Change(dollars in thousands)$%Revenue$103,710 $88,292 $15,418 17.5 %Operating ExpensesCost of services62,601 51,862 10,739 20.7 %Office and general expenses18,464 17,339 1,125 6.5 %Depreciation and amortization5,932 5,536 396 7.2 %$86,997 $74,737 $12,260 16.4 %Operating Income$16,713 $13,555 $3,158 23.3 %

45

Three Months Ended September 30,20252024Change(dollars in thousands)$%Net Revenue$95,376 $85,270 $10,106 11.9 %Billable costs 8,334 3,022 5,312 175.8 %Revenue103,710 88,292 15,418 17.5 %Billable costs8,334 3,022 5,312 175.8 %Staff costs62,123 56,384 5,739 10.2 %Administrative costs6,981 5,036 1,945 38.6 %Unbillable and other costs, net387 368 19 5.2 %Adjusted EBITDA25,885 23,482 2,403 10.2 %Stock-based compensation934 2,617 (1,683)(64.3)%Depreciation and amortization5,932 5,536 396 7.2 %Deferred acquisition consideration1,874 1,265 609 48.1 %Other items, net432 509 (77)(15.1)%Operating Income$16,713 $13,555 $3,158 23.3 %

Revenue

Revenue for the three months ended September 30, 2025 was $103.7 million, compared to $88.3