Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 202

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 202
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0.4 %Depreciation and amortization40,141 40,426 (285)(0.7)%Deferred acquisition consideration(4,784)2,000 (6,784)NMImpairment and other losses— 1,500 (1,500)(100.0)%Other items, net3,296 10,372 (7,076)(68.2)%Operating Income$93,256 $53,458 $39,798 74.4 %

Revenue

Revenue for the nine months ended September 30, 2025 was $839.5 million, compared to $782.4 million for the nine months ended September 30, 2024, an increase of $57.1 million. 

58

Net Revenue

The components of the fluctuations in net revenue for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 were as follows: 

Net Revenue - Components of ChangeChangeNine Months Ended September 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeNine Months Ended September 30, 2025OrganicTotal(dollars in thousands)Marketing Services$658,175 $1,473 $2,916 $52,303 $56,692 $714,867 7.9 %8.6 %Component % change0.2 %0.4 %7.9 %8.6 %

The increase in organic net revenue was primarily attributable to new client wins and higher spending in the technology, retail, automotive, and financials sectors. This increase was partially offset by losses and decrease in client spending due to budget cuts in the consumer products sector. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Jetfuel.

Operating Income

Operating Income for the nine months ended September 30, 2025, was $93.3 million, compared to $53.5 million for the nine months ended September 30, 2024, representing an increase of $39.8 million. The increase in Operating Income was primarily attributable to an increase in Net revenue, partially offset by higher Cost of services. 

The increase in Cost of services of $17.3 million was primarily attributable to higher staff costs due to growth in revenue and inclusion of costs from acquired entities.

Deferred acquisition consideration decreased $6.8 million, primarily