Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 108

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 108
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33.9)%Depreciation and amortization5,175 2,894 2,281 78.8 %Deferred acquisition consideration1,213 (1,114)2,327 (208.9)%Other items, net128 282 (154)(54.6)%Operating Income$4,548 $16,273 $(11,725)(72.1)%

Revenue

Revenue for the three months ended March 31, 2025 was $87.6 million, compared to $93.7 million for the three months ended March 31, 2024, a decrease of $6.1 million. 

Net Revenue

Net revenue for the three months ended March 31, 2025, was $67.0 million, compared to $67.5 million for the three months ended March 31, 2024, a decrease of $0.5 million, or 0.7%. Net revenue decreased primarily due to lower advocacy services as compared to the political year in 2024, partially offset by Net revenue from the acquisitions of PROS and Consulum.

Operating Income

Operating Income for the three months ended March 31, 2025, was $4.5 million, compared to $16.3 million for the three months ended March 31, 2024, representing a decrease of $11.7 million. The change in Operating Income was primarily attributable to lower advocacy services and higher Office and general expenses, primarily due to an increase in Deferred acquisition consideration.

Deferred acquisition consideration increased by $2.3 million, primarily attributable to an increase in the fair value of a certain obligation.

Adjusted EBITDA decreased by $7.6 million, primarily due to lower advocacy services in a non-political year, partially offset by the impact of acquired entities.

43

 All Other

The components of operating results for the three months ended March 31, 2025, compared to the three months ended March 31, 2024 were as follows: 

Three Months Ended March 31,20252024Change(dollars in thousands)$%Revenue$24,540 $9,632 $14,908 154.8 %Operating ExpensesCost of services12,607 5,754 6,853 119.1 %Office and general expenses19,666 8,136 11,530 141.7 %Depreciation and amortization4,301 2,421