Company: STGW
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000876883-25-000024
Chunk: 199

Company: Stagwell Inc
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 199
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 June 30, 2025, compared to the six months ended June 30, 2024, were as follows: 

Net Revenue - Components of ChangeChangeSix Months Ended June 30, 2024Foreign CurrencyNet Acquisitions (Divestitures)OrganicTotal ChangeSix Months Ended June 30, 2025OrganicTotal(dollars in thousands)All Other$12,653$(80)$29,764$6,231$35,915$48,56849.2%283.8%Component % change(0.6)%235.2%49.2%283.8%

The increase in organic net revenue was primarily attributable to new wins and increased spending by clients in the consumer products and technology sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Leaders and Unicepta.

Operating Loss

Operating Loss for the six months ended June 30, 2025, was $26.0 million, compared to $15.5 million for the six months ended June 30, 2024, representing an increase of $10.5 million. The increase in Operating Loss was primarily driven by an increase in Net revenue, more than offset by higher Cost of services and Office and general expenses, as detailed below. 

Cost of services increased by $17.2 million primarily attributable to inclusion of costs from acquired entities.

The $27.5 million increase in Office and general expenses was primarily attributable to inclusion of costs from acquired entities as well as higher software license fees.

Deferred acquisition consideration increased by $1.5 million, primarily due to an increase in the fair value of a certain Brands.

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Adjusted EBITDA decreased by $6.1 million, primarily driven by higher Net revenue, more than offset by an increase in expenses, as discussed above. 

Corporate 

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

Six Months Ended June 30,20252024Change(dollars in thousands)$%Staff costs$24,876 $22,261 $2,615 11.7 %Administrative costs1,327 9,045 (7,718)(85.3)%Adjusted EBITDA(26,203)(31,306)5,103 (16.3)%Stock-based compensation11,059 2,107 8,952