Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 20

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 20
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%Stock-based compensation904 518 386 74.5 %Depreciation and amortization12,718 8,390 4,328 51.6 %Deferred acquisition consideration(1,321)(1,752)431 (24.6)%Other items, net887 1,174 (287)(24.4)%Operating Loss$(29,012)$(18,937)$(10,075)53.2 %

(1) All Other Revenue and Administrative costs include approximately $8 million and $6 million of eliminations of intercompany services for the years ended December 31, 2024, and 2023, respectively.

Revenue

Revenue for the year ended December 31, 2024, was $38.7 million, compared to $46.6 million for the year ended December 31, 2023, a decrease of $7.8 million. 

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Net Revenue

The components of the fluctuations in net revenue for the year ended December 31, 2024, compared to the year ended December 31, 2023, were as follows: 

Net Revenue - Components of ChangeChangeYear Ended December 31, 2023Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeYear Ended December 31, 2024OrganicTotal(dollars in thousands)All Other$46,585$(984)$(609)$(6,108)$(7,701)$38,884(13.1)%(16.5)%Component % change(2.1)%(1.3)%(13.1)%(16.5)%

The decrease in organic net revenue was primarily attributable to budget cuts and client losses from clients in the food and beverage, travel and transportation, consumer products, healthcare, and financial services sectors. The decrease in net acquisitions (divestitures) was primarily driven by the acquisition of Leaders, offset by the derecognition of a certain noncontrolling interest in the first quarter of 2024.

Operating Loss

Operating Loss for the year ended December 31, 2024, was $29.0 million, compared to $18.9 million for the year ended December 31, 2023, representing an increase of $10.1 million. The increase in Operating Loss was primarily attributable to a decrease in Revenue and an increase in Office and general expenses and Depreciation and amortization, partially offset by a decrease in Cost of services.

The