Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 142

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 142
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70.1)%Revenue162,218 213,962 (51,744)(24.2)%Billable costs15,360 51,400 (36,040)(70.1)%Staff costs96,450 98,431 (1,981)(2.0)%Administrative costs23,407 22,071 1,336 6.1 %Unbillable and other costs, net15,458 14,566 892 6.1 %Adjusted EBITDA11,543 27,494 (15,951)(58.0)%Stock-based compensation1,368 2,043 (675)(33.0)%Depreciation and amortization7,722 7,514 208 2.8 %Deferred acquisition consideration(1,282)(777)(505)65.0 %Other items, net3,654 5,019 (1,365)(27.2)%Operating Income$81 $13,695 $(13,614)(99.4)%

Revenue

Revenue for the three months ended March 31, 2025, was $162.2 million, compared to $214.0 million for the three months ended March 31, 2024, a decrease of $51.7 million.

41

Net Revenue

Net revenue for the three months ended March 31, 2025, was $146.9 million, compared to $162.6 million for the three months ended March 31, 2024, a decrease of $15.7 million, or 9.7%. The decrease in Net revenue was primarily attributable to lower spending by an existing client in the business services sector and client losses and lower spending in the travel and financial services sectors.

Operating Income

Operating Income for the three months ended March 31, 2025, was $0.1 million, compared to $13.7 million for the three months ended March 31, 2024, representing a decrease of $13.6 million. The decrease in Operating Income was primarily attributable to a decline in Net revenue of $15.7 million, partially offset by a decline in Cost of services, excluding Billable costs. Cost of services decreased $37.1 million. Excluding the decline in Billable costs of $36.0 million, Cost of services  decreased $1.1 million.

Adjusted EBITDA decreased by $16.0 million, primarily