Company: STGW
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000876883-25-000034
Chunk: 129

Company: Stagwell Inc
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 129
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8)%(6.2)%

The decrease in organic net revenue was primarily attributable to decreased spending, primarily due to lower advocacy services as compared to higher spending in 2024 associated with the 2024 elections and decreased spending in the healthcare and consumer products due to client losses and budget cuts. The increase in net acquisitions (divestitures) was primarily driven by the acquisition of Consulum.

Operating Income

Operating Income for the nine months ended September 30, 2025 was $43.7 million, compared to $68.0 million for the nine months ended September 30, 2024, representing a decrease of $24.2 million. The decrease in Operating Income was primarily attributable to a decrease in Net revenue of $18.8 million and an increase in Cost of services excluding Billable costs, and Depreciation and amortization, partially offset by a decrease in Office and general expenses.

Cost of services decreased $25.4 million. Excluding the decline in Billable costs of $35.0 million, Cost of services increased $9.6 million due to the inclusion of costs from acquired entities.

The decrease in Office and general expenses of $10.2 million was primarily attributable to a decrease in Deferred acquisition consideration.

63

Deferred acquisition consideration decreased by $14.0 million, primarily attributable to a decrease in the fair value of a certain Brand, partially offset by an increase in the fair value of certain Brands.

Depreciation and amortization increased by $5.8 million, primarily attributable to the inclusion of costs from acquired entities.

Adjusted EBITDA decreased by $30.6 million, primarily due to a decrease in Operating Income, as discussed above.

The Marketing Cloud

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$78,785 $25,823 $52,962 205.1 %Operating ExpensesCost of services40,539 13,811 26,728 193.5 %Office and general expenses35,939 23,225 12,714 54.7 %Depreciation and amortization17,436 9,309 8,127 87.3 %Impairment and other losses244 — 244 100.0 %$94,158 $46,