Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 184

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 184
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)OrganicTotal ChangeThree Months Ended June 30, 2025OrganicTotal(dollars in thousands)Communications Network$72,393$144$10,855$(9,050)$1,949$74,342(12.5)%2.7%Component % change0.2%15.0%(12.5)%2.7%

The decrease in organic net revenue was primarily attributable to decreased spending in the Public Affairs as 2024 was a presidential election year, and a decreased spending in Consumer Products and Healthcare sectors due to client losses and budget cuts. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Consulum.

Operating Income

Operating Income for the three months ended June 30, 2025 was $14.5 million, compared to $14.4 million for the three months ended June 30, 2024. The increase in Operating Income was primarily attributable to an increase in Revenue and a decrease in Office and general expenses, partially offset by an increase in Costs of services and Depreciation and amortization.

The increase in Cost of services was primarily attributable to higher staff costs primarily due to the inclusion of costs from acquired entities.

The decrease in Office and general expenses was primarily attributable to a decrease in Deferred acquisition consideration.

Deferred acquisition consideration decreased $5.8 million, primarily as a result of a decrease in the fair value of a certain Brand, partially offset by an increase in the fair value of certain other Brands.

Adjusted EBITDA decreased $2.8 million, primarily due to an increase in expenses more than offset by an increase in Revenue, as discussed above.

All Other

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$24,401 $3,220 $21,181 657.8 %Operating ExpensesCost of services15,992 5,599 10,393 185.6 %Office and general expenses17,427 1,452 15,975 NMDepreciation and amortization4,927 4,944 (17)(0.3)%$38,346 $11,995 $26,351 219.7 %Operating Loss$(13,945)$(8,775)$(5,