Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 15

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 15
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7 million was primarily due to a decline in Billable costs of $4.9 million. The increase in Operating Income was further driven by a decrease in Depreciation and amortization partially offset by an increase in Office and general expenses. 

The increase in Office and general expenses of $4.0 million was primarily attributable to an increase in staff restructuring related expenses and an increase in Deferred acquisition consideration of a certain Brand.

Depreciation and amortization decreased by $3.6 million, primarily attributable to the acceleration of amortization of certain tradenames during the three months ended June 30, 2024.

Adjusted EBITDA decreased $2.1 million, primarily driven by an increase in expenses and a decrease in Revenue, as discussed above.

49

Communications Network

The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows: 

Three Months Ended June 30,20252024Change(dollars in thousands)$%Revenue$106,128 $105,570 $558 0.5 %Operating ExpensesCost of services69,559 67,956 1,603 2.4 %Office and general expenses17,116 20,091 (2,975)(14.8)%Depreciation and amortization4,972 3,090 1,882 60.9 %$91,647 $91,137 $510 0.6 %Operating Income$14,481 $14,433 $48 0.3 %

Three Months Ended June 30,20252024Change(dollars in thousands)$%Net Revenue$74,342 $72,393 $1,949 2.7 %Billable costs 31,786 33,177 (1,391)(4.2)%Revenue106,128 105,570 558 0.5 %Billable costs31,786 33,177 (1,391)(4.2)%Staff costs44,812 41,131 3,681 8.9 %Administrative costs9,550 8,379 1,171 14.0 %Unbillable and other costs, net625 710 (85)(12.0)%Adjusted EBITDA19,355 22,173 (2,818)(12.7)%