Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 29

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 29
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994 11.2 %Administrative costs19,724 17,083 2,641 15.5 %Unbillable and other costs, net1,115 846 269 31.8 %Adjusted EBITDA31,112 41,557 (10,445)(25.1)%Stock-based compensation1,432 1,876 (444)(23.7)%Depreciation and amortization10,147 5,984 4,163 69.6 %Deferred acquisition consideration(1,163)2,319 (3,482)NMOther items, net1,667 672 995 148.1 %Operating Income$19,029 $30,706 $(11,677)(38.0)%

Revenue

Revenue for the six months ended June 30, 2025 was $193.8 million, compared to $199.3 million for the six months ended June 30, 2024, a decrease of $5.6 million. 

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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)Communications Network$139,881$101$25,203$(23,845)$1,459$141,340(17.0)%1.0%Component % change0.1%18.0%(17.0)%1.0%

The decrease in organic net revenue was primarily attributable to decreased spending, primarily due to lower advocacy services as compared to higher spending in the first half of 2024 associated with the 2024 elections and decreased spending in the healthcare and consumer products 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 six months ended June 30, 2025, was $19.0 million, compared to $30.7 million for the six months ended June 30, 2024, representing a decrease of $11.7 million. The decrease in Operating Income was primarily attributable to a decrease in Revenue