Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 132

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 132
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4, representing an increase of $7.2 million, primarily attributable to higher Stock-based compensation.

65

Stock-based compensation expense increased by $10.3 million, primarily attributable to an increase in the number of awards partially offset by a decrease in the fair value of the awards, and a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.

Liquidity and Capital Resources:

The following table provides summary information about the Company’s liquidity position and capital resources:

Nine Months Ended September 30,20252024Change(dollars in thousands)$%Net cash provided by (used in) operating activities$30,713 $(69,230)$99,943 (144.4)%Net cash used in investing activities(80,759)(66,485)(14,274)21.5 %Net cash provided by financing activities44,227 159,131 (114,904)(72.2)%

The Company had cash and cash equivalents of $132.2 million and $131.3 million as of September 30, 2025, and December 31, 2024, respectively. 

Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2025 was $30.7 million, an increase of $99.9 million, or 144.4%, compared to the same period in the prior year. This improvement primarily reflected the increase in operating income of $12.8 million driven by an increase in revenue, as well as a $103.2 million increase in working capital primarily attributable to stronger working capital management and changes in non-cash items included in the operating income. 

The improvement in working capital was driven by an improved billing and collection process, which resulted in favorable changes in advance billings of $44.0 million and expenditures billable to clients of $42.0 million. Additionally, there were net favorable changes in accounts payable and accruals of $41.4 million as a result of improved payment terms with significant service providers. This was partially offset by an unfavorable change in other assets of $44.3 million due to certain media assets and deferred compensation arrangements. In aggregate, these and other immaterial changes in working capital resulted in a net increase of $103.2 million.

Changes in non-cash items included in operating income consisted primarily of a decrease of $17.9 million in the fair value of deferred acquisition liabilities driven by the