Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 193

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 193
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20.7 %Stock-based compensation16,433 14,170 2,263 16.0 %Depreciation and amortization41,466 38,853 2,613 6.7 %Deferred acquisition consideration1,571 4,576 (3,005)(65.7)%Impairment and other losses— 1,500 (1,500)(100.0)%Other items, net1,065 9,540 (8,475)(88.8)%Operating Income$94,144 $59,464 $34,680 58.3 %

Revenue

Revenue for the six months ended June 30, 2025 was $783.5 million, compared to $737.9 million for the six months ended June 30, 2024, an increase of $45.7 million. 

58

Net Revenue

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

Net Revenue - Components of ChangeChangeSix Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeSix Months Ended June 30, 2025OrganicTotal(dollars in thousands)Integrated Agencies Network$614,642$(198)$13,580$42,658$56,040$670,6826.9%9.1%Component % change—%2.2%6.9%9.1%

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 a decrease in client spending due to budget cuts in the consumer products sector. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Jetfuel and Create.

Operating Income

Operating Income for the six months ended June 30, 2025, was $94.1 million, compared to $59.5 million for the six months ended June 30, 2024, representing an increase of $34.7 million. The increase in Operating Income was primarily attributable to an increase in Net revenue and decrease in Office and general expenses, partially offset by higher Cost of services, excluding Billable costs. 

Cost of services increased $13.9 million. Excluding the decline in Billable costs