Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 131

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 131
---
NM

The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Leaders and Unicepta.

Operating Loss

Operating Loss for the nine months ended September 30, 2025 was $15.4 million compared to $20.5 million for the nine months ended September 30, 2024, representing a decrease of $5.1 million. The decrease in Operating Loss was primarily attributable to an increase in Net revenue, partially offset by an increase in Cost of Services, Office and general expenses, and Depreciation and amortization.

Cost of services increased $26.7 million, primarily attributable to the inclusion of costs from acquired entities.

Office and general expenses increased $12.7 million primarily due to higher staff costs and the inclusion of costs from acquired entities, partially offset by a decrease in deferred acquisition consideration expense. 

Deferred acquisition consideration decreased by $10.5 million, primarily attributable to a decrease in the fair value of a certain Brand.

Depreciation and amortization increased by $8.1 million, primarily attributable to the inclusion of costs from acquired entities.

Adjusted EBITDA increased by $4.8 million, primarily due to a decrease in Operating Loss, as discussed above.

Corporate 

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

Nine Months Ended September 30,20252024Change(dollars in thousands)$%Staff costs$41,238 $35,421 $5,817 16.4 %Administrative costs1,373 11,396 (10,023)(88.0)%Adjusted EBITDA(42,611)(46,817)4,206 (9.0)%Stock-based compensation15,627 5,308 10,319 194.4 %Depreciation and amortization11,833 8,681 3,152 36.3 %Impairment and other losses— 215 (215)(100.0)%Other items, net2,363 4,203 (1,840)(43.8)%Operating Loss$(72,434)$(65,224)$(7,210)11.1 %

Operating Loss

Operating Loss for the nine months ended September 30, 2025 was $72.4 million compared to $65.2 million for the nine months ended September 30, 202