Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 72

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 72
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,005 Additions (3)— 46,598 Currency translation adjustment2,122 (651)Ending balance (4)$77,047 $102,115 (1) Includes deferred acquisition consideration payments settled in shares of Class A Common Stock of $18.2 million for the year ended December 31, 2024.(2) Adjustments to deferred acquisition consideration contains fair value changes from the Company’s initial estimates of deferred acquisition payments and accretion of expense as awards are earned over the vesting period. (3) Additions in 2024 of $46.6 million include $28.1 million related to the Company’s acquisitions. It also includes $17.0 million related to a reclassification from redeemable noncontrolling interest to deferred acquisition consideration in connection with the purchase of the remaining 40% interest the Company did not previously own in a certain Brand. In relation to this transaction, the Company paid $0.9 million in 2024 and $16.1 million in cash during the nine months ended September 30, 2025.

(4) The deferred acquisition consideration as of September 30, 2025 and December 31, 2024 includes $31.7 million and $38.4 million, respectively, expected to be settled in shares of Class A Common Stock. On November 5, 2025, the Company issued 3,209,970 shares of Class A Common Stock in fulfillment of $16.8 million of its payment obligation with respect to the purchase of additional interests in its Targeted Victory subsidiary. 

7. LeasesThe Company leases office space in North America, Europe, Asia, South America, the Middle East, Africa and Australia. These spaces are primarily used for office and administrative purposes by the Company’s employees in performing professional services. These leases are classified as operating leases and expire between years 2025 through 2036. The Company’s finance leases are immaterial.Lease costs are recognized in the Unaudited Consolidated Statements of Operations over the lease term on a straight-line basis. Leasehold improvements are depreciated on a straight-line basis over the lesser of the term of the related lease or the estimated useful life of the asset. Some of the Company’s leases include options to extend or renew the leases through 2044. The renewal and extension options are not included in the lease term as the Company is not reasonably certain that it will exercise its option.From time to time,