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

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 10
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 a reconciliation of Operating Income to Net income (loss) attributable to Stagwell Inc. common shareholders.

Revenue

Revenue for the three months ended September 30, 2025 was $743.0 million, compared to $711.3 million for the three months ended September 30, 2024, an increase of $31.7 million.

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Net Revenue

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

Net Revenue - Components of ChangeChangeThree Months Ended September 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeThree Months Ended September 30, 2025OrganicTotal(dollars in thousands)Marketing Services$225,411 $989 $4,970 $14,724 $20,683 $246,094 6.5 %9.2 %Digital Transformation85,270 (99)4,356 5,849 10,106 95,376 6.9 %11.9 %Media & Commerce145,558 1,109 2,782 4,708 8,599 154,157 3.2 %5.9 %Communications112,563 214 7,291 (23,576)(16,071)96,492 (20.9)%(14.3)%The Marketing Cloud11,443 416 14,567 756 15,739 27,182 6.6 %137.5 %Eliminations(52)— — (4,727)(4,727)(4,779)NMNM$580,193 $2,629 $33,966 $(2,266)$34,329 $614,522 (0.4)%5.9 %Component % change0.5%5.9%(0.4)%5.9%

For the three months ended September 30, 2025 organic net revenue decreased $2.3 million, or 0.4%. The decrease was primarily attributable to lower advocacy services following the 2024 election season and a decrease in client spending in the consumer products sectors, partially offset by new wins and increased spending by clients in the retail sector. The increase in net acquisitions (divestitures) was impacted by the acquisitions of