Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 206

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 206
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 $42.3 million. 

61

Net Revenue

The components of the fluctuations in net revenue for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 were as follows: 

Net Revenue - Components of ChangeChangeNine Months Ended September 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeNine Months Ended September 30, 2025OrganicTotal(dollars in thousands)Media & Commerce$439,783 $1,651 $2,675 $(12,254)$(7,928)$431,855 (2.8)%(1.8)%Component % change0.4 %0.6 %(2.8)%(1.8)%

The decrease in organic net revenue was primarily attributable to decreased spending by existing clients in the business services and food and beverage sectors.

Operating Income

Operating Income for the nine months ended September 30, 2025 was $13.9 million, compared to $29.2 million for the nine months ended September 30, 2024, representing a decrease of $15.3 million. The decrease in Operating Income was primarily attributable to a decrease in Net revenue of $7.9 million and an increase in Office and general expenses. Cost of services decreased $34.7 million. Excluding the decline in Billable costs of $34.4 million, Cost of services decreased $0.3 million.

The increase in Office and general expenses of $10.2 million was primarily attributable to an increase in deferred acquisition consideration expense.

Deferred acquisition consideration increased by $9.4 million, primarily attributable to an increase in the fair value of a certain Brand in 2025 and a decrease in the fair value of a certain Brand in 2024.

Adjusted EBITDA decreased by $14.8 million, primarily due to a decrease in Operating Income, as discussed above.

Communications

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)$%Revenue$420,215 $473,957 $(53,742)(11.3)%Operating ExpensesCost of services292,889 318,241 (25,352)(8.0)%Office and general expenses64,012 74,209