Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 85

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 1
Chunk 85
---
 us making payments under the TRA. The TRA liability is an estimate and actual amounts payable under the TRA could differ from this estimate. Effective April 4, 2025, all Paired Units were exchanged for Class A Shares in the Class C Exchange (see Note 11). As a result of the Class C Exchange, the Company recorded an increase to deferred tax asset of $204.7 million and an increase to TRA liability of $200.1 million. As of June 30, 2025, the Company has recorded a TRA liability of $225.7 million, and an associated deferred tax asset, net of amortization, of $259.2 million, in connection with the exchange of Paired Units and the projected obligations under the TRA.

15. Related Party Transactions In the ordinary course of business, the Company enters into transactions with related parties, including its affiliates. The transactions may range in the nature and value of services underlying the arrangements. The following table presents significant related party transactions where a related party received services from the Company:RevenueDue From Related PartyThree Months Ended June 30,Six Months Ended June 30,June 30, 2025December 31,2024Services2025202420252024(dollars in thousands)Marketing and advertising services (1)$— $831 $— $941 $— $— Marketing and website development services (2)689 514 1,452 1,269 361 601 Polling services (3)130 363 130 823 — 192 Polling and public relation services (4)161 194 267 298 6 55 Marketing and advertising services (5)1,261 341 1,884 341 — — Total$2,241 $2,243 $3,733 $3,672 $367 $848 (1) Brands’ partners and executives either hold a key leadership position in or are on the board of directors of the client.(2) A member of the Company’s Board is the managing director of a client.(3) A family member of the Company’s Chief Executive Officer holds a key leadership position in the client.(4) A family member of the Company’s President holds a key leadership position in the client.(5) Founder of the client has significant interest in the Company. 

In 2022, the Company made loans to three employees of a