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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025
or

| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________
Commission File Number: 001-13718
Stagwell Inc.
(Exact name of registrant as specified in its charter)

Delaware |  | 86-1390679
(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification No.)
One World Trade Center, Floor 65 |  |
New York, | New York |  | 10007
(Address of principal executive offices) |  | (Zip Code)

(646) 429-1800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share | STGW | NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated Filer | ☐ | Accelerated Filer | ☒
Non-accelerated Filer | ☐ | Smaller reporting company | ☐
Emerging growth company | ☐ |  |

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of common shares outstanding as of July 24, 2025, was 258,702,977 shares of Class A Common Stock.

Table of Contents
STAGWELL INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS

|  | Page
| PART I. FINANCIAL INFORMATION |
Item 1. | Financial Statements | 3
| Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 | 3
| Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024 | 4
| Unaudited Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 | 5
| Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 | 6
| Unaudited Consolidated Statements of Shareholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024 | 8
| Notes to the Unaudited Consolidated Financial Statements | 12
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 39
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 67
Item 4. | Controls and Procedures | 67
| PART II. OTHER INFORMATION |
Item 1. | Legal Proceedings | 68
Item 1A. | Risk Factors | 68
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 68
Item 3. | Defaults Upon Senior Securities | 69
Item 4. | Mine Safety Disclosures | 69
Item 5. | Other Information | 69
Item 6. | Exhibits | 69
Signatures | 71

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EXPLANATORY NOTE
References in this Form 10-Q to “Stagwell,” “we,” “us,” “our” and the “Company” refer to Stagwell Inc. and its direct and indirect subsidiaries, unless the context otherwise requires or otherwise is expressly stated.
All dollar amounts are stated in U.S. dollars unless otherwise stated.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated and actual operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “ability,” “aim,” “anticipate,” “assume,” “believe,” “build,” “consider,” “continue,” “could,” “develop,” “drive,” “estimate,” “expect,” “focus,” “forecast,” “future,” “guidance,” “intend,” “likely,” “maintain,” “may,” “ongoing,”, “outlook,” “plan,” “possible,” “potential,” “probable,” “project,” “seek,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.
Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:
•risks associated with international, national and regional unfavorable economic conditions, including the effect of changing tariff and other trade policies, inflation and other macroeconomic factors that could affect the Company or its clients;
•demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
•inflation and actions taken by central banks to counter inflation;
•the Company’s ability to attract new clients and retain existing clients;
•the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
•financial failure of the Company’s clients;
•the Company’s ability to retain and attract key employees;
•the Company’s ability to compete in the markets in which it operates;
•the Company’s ability to achieve its cost saving initiatives;
•the Company’s implementation of strategic initiatives;
•the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
•the Company’s ability to manage its growth effectively;
•the Company’s ability to identify and complete acquisitions or other strategic transactions that complement and expand the Company’s business capabilities and successfully integrate newly acquired businesses into the Company’s operations, retain key employees, and realize cost savings, synergies and other related anticipated benefits within the expected time period;
•the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;
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•the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
•the Company’s use of artificial intelligence, including generative artificial intelligence;
•adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that recent or future changes in tax laws, potential changes to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs;
•adverse tax consequences in connection with the business combination that formed the Company in August 2021, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
•the Company’s ability to maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements;
•the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;
•the Company’s ability to protect client data from security incidents or cyberattacks;
•economic disruptions resulting from war and other economic and geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in the Middle East), terrorist activities, natural disasters, public health events and tariff and trade policies;
•stock price volatility; and
•foreign currency fluctuations.
Investors should carefully consider these risks and the additional risk factors described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2025, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filing.
2

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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Revenue | $ | 706,818 |  |  | $ | 671,168 |  |  | $ | 1,358,558 |  |  | $ | 1,341,227 |  |  |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services | 459,216 |  |  | 438,912 |  |  | 871,303 |  |  | 883,438 |  |  |
Office and general expenses | 183,061 |  |  | 168,133 |  |  | 362,423 |  |  | 331,476 |  |  |
Depreciation and amortization | 41,369 |  |  | 42,001 |  |  | 83,375 |  |  | 76,837 |  |  |
Impairment and other losses | — |  |  | 215 |  |  | — |  |  | 1,715 |  |  |
| 683,646 |  |  | 649,261 |  |  | 1,317,101 |  |  | 1,293,466 |  |  |
Operating Income | 23,172 |  |  | 21,907 |  |  | 41,457 |  |  | 47,761 |  |  |
Other income (expenses): |  |  |  |  |  |  |  |  |
Interest expense, net | (23,455) |  |  | (23,533) |  |  | (46,811) |  |  | (44,498) |  |  |
Foreign exchange, net | (1,338) |  |  | (1,355) |  |  | (118) |  |  | (3,613) |  |  |
Other, net | (360) |  |  | 193 |  |  | (111) |  |  | (1,074) |  |  |
| (25,153) |  |  | (24,695) |  |  | (47,040) |  |  | (49,185) |  |  |
Loss before income taxes and equity in earnings of non-consolidated affiliates | (1,981) |  |  | (2,788) |  |  | (5,583) |  |  | (1,424) |  |  |
Income tax expense | 2,673 |  |  | 1,165 |  |  | 4,395 |  |  | 3,750 |  |  |
Loss before equity in earnings of non-consolidated affiliates | (4,654) |  |  | (3,953) |  |  | (9,978) |  |  | (5,174) |  |  |
Equity in income (loss) of non-consolidated affiliates | 20 |  |  | (1) |  |  | 19 |  |  | 507 |  |  |
Net loss | (4,634) |  |  | (3,954) |  |  | (9,959) |  |  | (4,667) |  |  |
Net (income) loss attributable to noncontrolling and redeemable noncontrolling interests | (627) |  |  | 989 |  |  | 1,781 |  |  | 420 |  |  |
Net loss attributable to Stagwell Inc. common shareholders | $ | (5,261) |  |  | $ | (2,965) |  |  | $ | (8,178) |  |  | $ | (4,247) |  |  |
Loss Per Common Share: |  |  |  |  |  |  |  |  |
Basic | $ | (0.02) |  |  | $ | (0.03) |  |  | $ | (0.04) |  |  | $ | (0.04) |  |  |
Diluted | $ | (0.02) |  |  | $ | (0.03) |  |  | $ | (0.06) |  |  | $ | (0.04) |  |  |
Weighted Average Number of Common Shares Outstanding: |  |  |  |  |  |  |  |  |
Basic | 260,774 |  |  | 113,484 |  |  | 186,843 |  |  | 113,059 |  |  |
Diluted | 260,774 |  |  | 113,484 |  |  | 265,600 |  |  | 113,059 |  |  |

See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(amounts in thousands)

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
COMPREHENSIVE INCOME (LOSS) |  |  |  |  |  |  |  |  |
Net loss | $ | (4,634) |  |  | $ | (3,954) |  |  | $ | (9,959) |  |  | $ | (4,667) |  |  |
Other comprehensive income (loss) - Foreign currency translation adjustment | 24,068 |  |  | (5,479) |  |  | 34,566 |  |  | (12,625) |  |  |
Comprehensive income (loss) for the period | 19,434 |  |  | (9,433) |  |  | 24,607 |  |  | (17,292) |  |  |
Comprehensive (income) loss attributable to the noncontrolling and redeemable noncontrolling interests | (627) |  |  | 4,469 |  |  | (4,246) |  |  | 8,182 |  |  |
Comprehensive income (loss) attributable to Stagwell Inc. common shareholders | $ | 18,807 |  |  | $ | (4,964) |  |  | $ | 20,361 |  |  | $ | (9,110) |  |  |

See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)

| June 30, 2025 |  | December 31, 2024
ASSETS |  |  |
Current Assets |  |  |
Cash and cash equivalents | $ | 181,309 |  |  | $ | 131,339 |
Accounts receivable, net | 769,291 |  |  | 716,415 |
Expenditures billable to clients | 150,234 |  |  | 173,194 |
Other current assets | 162,233 |  |  | 114,200 |
Total Current Assets | 1,263,067 |  |  | 1,135,148 |
Fixed assets, net | 65,267 |  |  | 72,706 |
Right-of-use lease assets - operating leases | 219,717 |  |  | 219,400 |
Goodwill | 1,600,714 |  |  | 1,554,146 |
Other intangible assets, net | 866,780 |  |  | 836,783 |
Deferred tax assets | 251,622 |  |  | 46,926 |
Other assets | 50,008 |  |  | 43,112 |
Total Assets | $ | 4,317,175 |  |  | $ | 3,908,221 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”), AND SHAREHOLDERS’ EQUITY |  |  |
Current Liabilities |  |  |
Accounts payable | $ | 484,069 |  |  | $ | 449,347 |
Accrued media | 222,472 |  |  | 245,883 |
Accruals and other liabilities | 319,724 |  |  | 265,356 |
Advance billings | 339,623 |  |  | 294,609 |
Current portion of lease liabilities - operating leases | 57,192 |  |  | 60,195 |
Current portion of deferred acquisition consideration | 41,391 |  |  | 51,906 |
Total Current Liabilities | 1,464,471 |  |  | 1,367,296 |
Long-term debt | 1,464,242 |  |  | 1,353,624 |
Long-term portion of deferred acquisition consideration | 50,272 |  |  | 50,209 |
Long-term lease liabilities - operating leases | 231,152 |  |  | 245,397 |
Deferred tax liabilities | 49,388 |  |  | 47,239 |
Long-term tax receivable agreement (“TRA”) liability | 223,445 |  |  | 25,493 |
Other liabilities | 53,009 |  |  | 33,646 |
Total Liabilities | 3,535,979 |  |  | 3,122,904 |
Redeemable Noncontrolling Interests | 9,248 |  |  | 8,412 |
Commitments, Contingencies and Guarantees (Note 10) |  |  |
Shareholders’ Equity |  |  |
Common shares - Class A | 261 |  |  | 115 |
Common shares - Class C | — |  |  | 2 |
Paid-in capital | 765,898 |  |  | 343,647 |
Retained earnings | 4,923 |  |  | 11,740 |
Accumulated other comprehensive loss | (20,936) |  |  | (23,773) |
Stagwell Inc. Shareholders’ Equity | 750,146 |  |  | 331,731 |
Noncontrolling interests | 21,802 |  |  | 445,174 |
Total Shareholders’ Equity | 771,948 |  |  | 776,905 |
Total Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity | $ | 4,317,175 |  |  | $ | 3,908,221 |

See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)

| Six Months Ended June 30,
| 2025 |  | 2024 |  |
Cash flows from operating activities: |  |  |  |  |
Net loss | $ | (9,959) |  |  | $ | (4,667) |  |  |
Adjustments to reconcile net income to cash provided by (used in) operating activities: |  |  |  |  |
Stock-based compensation | 31,497 |  |  | 21,991 |  |  |
Depreciation and amortization | 83,375 |  |  | 76,837 |  |  |
Amortization of right-of-use lease assets and lease liability interest | 34,075 |  |  | 39,534 |  |  |
Impairment and other (gains) losses | (3,529) |  |  | 1,715 |  |  |
Deferred income taxes | (1,424) |  |  | 3,797 |  |  |
Adjustment to deferred acquisition consideration | 3,437 |  |  | 7,390 |  |  |
Other, net | (7,517) |  |  | 3,850 |  |  |
Changes in working capital: |  |  |  |  |
Accounts receivable | 7,941 |  |  | (30,157) |  |  |
Expenditures billable to clients | 27,021 |  |  | (6,516) |  |  |
Other assets | (41,375) |  |  | (5,776) |  |  |
Accounts payable | 25,333 |  |  | (28,576) |  |  |
Accrued expenses and other liabilities | (89,393) |  |  | (114,353) |  |  |
Advance billings | 35,765 |  |  | 12,092 |  |  |
Current portion of lease liabilities - operating leases | (40,509) |  | (41,924) |  |  |
Deferred acquisition related payments | — |  |  | (2,855) |  |  |
Net cash provided by (used in) operating activities | 54,738 |  |  | (67,618) |  |  |
Cash flows from investing activities: |  |  |  |  |
Capitalized software | (29,241) |  |  | (17,076) |  |  |
Capital expenditures | (11,595) |  |  | (13,990) |  |  |
Acquisitions, net of cash acquired | 14,172 |  |  | (20,350) |  |  |
Other | (8,272) |  |  | (767) |  |  |
Net cash used in investing activities | (34,936) |  |  | (52,183) |  |  |
Cash flows from financing activities: |  |  |  |  |
Repayment of borrowings under revolving credit facility | (925,000) |  |  | (761,000) |  |  |
Proceeds from borrowings under revolving credit facility | 1,038,000 |  |  | 1,036,000 |  |  |
Shares repurchased and cancelled | (67,504) |  |  | (86,934) |  |  |
Distributions to noncontrolling interests | (4,761) |  |  | (22,483) |  |  |
Payment of deferred consideration | (16,103) |  |  | (23,963) |  |  |
Purchase of noncontrolling interest | — |  |  | (3,316) |  |  |
Debt financing and other costs | (3,570) |  |  | — |  |  |
Net cash provided by financing activities | 21,062 |  |  | 138,304 |  |  |
Effect of exchange rate changes on cash and cash equivalents | 9,106 |  |  | (2,162) |  |  |
Net increase in cash and cash equivalents | 49,970 |  |  | 16,341 |  |  |
Cash and cash equivalents at beginning of period | 131,339 |  |  | 119,737 |  |  |
Cash and cash equivalents at end of period | $ | 181,309 |  |  | $ | 136,078 |  |  |

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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - (continued)
(amounts in thousands)

| Six Months Ended June 30,
| 2025 |  | 2024 |  |
Supplemental Cash Flow Information: |  |  |  |  |
Cash income taxes paid | $ | 14,303 |  |  | $ | 10,636 |  |  |
Cash interest paid | 46,800 |  |  | 42,444 |  |  |
Non-cash investing and financing activities: |  |  |  |  |
Acquisitions of business | 15,300 |  |  | 7,193 |  |  |
Acquisitions of noncontrolling interest | — |  |  | 10,167 |  |  |
Share issuances | — |  |  | 341 |  |  |
Addition to deferred tax asset related to exchange of Paired Units | 204,722 |  |  | — |  |  |
Addition to Tax Receivables Agreement liability related to exchange of Paired Units | 200,119 |  |  | — |  |  |
Conversion of Class C to Class A shares | 447,562 |  |  | — |  |  |
Non-cash payment of deferred acquisition consideration | — |  |  | 18,208 |  |  |

See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(amounts in thousands)

|  | Three Months Ended June 30, 2025
|  | Common Shares - Class A |  | Common Shares - Class C |  | Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Stagwell Inc. Shareholders’ Equity |  | Noncontrolling Interests |  | Shareholders’ Equity
|  | Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |  |  |  |  |  |  |  |
| Balance at March 31, 2025 | 113,894 |  |  | $ | 114 |  |  | 151,649 |  |  | $ | 2 |  |  | $ | 343,082 |  |  | $ | 10,504 |  |  | $ | (19,302) |  |  | $ | 334,400 |  |  | $ | 445,493 |  |  | $ | 779,893 |
| Net income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,261) |  |  | — |  |  | (5,261) |  |  | 627 |  |  | (4,634) |
| Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,068 |  |  | 24,068 |  |  | — |  |  | 24,068 |
| Total other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,261) |  |  | 24,068 |  |  | 18,807 |  |  | 627 |  |  | 19,434 |
| Distributions to noncontrolling interests | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,459) |  |  | (2,459) |
| Changes in redemption value of RNCI, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (321) |  |  | — |  |  | (321) |  |  | — |  |  | (321) |
| Restricted awards granted or vested | 4,174 |  |  | 4 |  |  | — |  |  | — |  |  | 295 |  |  | — |  |  | — |  |  | 299 |  |  | — |  |  | 299 |
| Shares repurchased and cancelled | (11,135) |  |  | (11) |  |  | — |  |  | — |  |  | (56,786) |  |  | — |  |  | — |  |  | (56,797) |  |  | — |  |  | (56,797) |
| Restricted shares forfeited | (15) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| Stock-based compensation | — |  |  | — |  |  | — |  |  | — |  |  | 12,167 |  |  | — |  |  | — |  |  | 12,167 |  |  | — |  |  | 12,167 |
| Shares issued, acquisitions | 2,672 |  |  | 3 |  |  | — |  |  | — |  |  | 15,297 |  |  | — |  |  | — |  |  | 15,300 |  |  | — |  |  | 15,300 |
| Conversion of Class C to Class A shares | 151,649 |  |  | 152 |  |  | (151,649) |  |  | (2) |  |  | 447,412 |  |  | — |  |  | (25,701) |  |  | 421,861 |  |  | (421,861) |  |  | — |
| Other (1) | (3) |  |  | (1) |  |  | — |  |  | — |  |  | 4,431 |  |  | 1 |  |  | (1) |  |  | 4,430 |  |  | 2 |  |  | 4,432 |
| Balance at June 30, 2025 | 261,236 |  |  | $ | 261 |  |  | — |  |  | $ | — |  |  | $ | 765,898 |  |  | $ | 4,923 |  |  | $ | (20,936) |  |  | $ | 750,146 |  |  | $ | 21,802 |  |  | $ | 771,948 |

(1) The Other line within Paid-in Capital includes $4.6 million in connection with the conversion of Class C to Class A shares as this resulted in an adjustment between the deferred tax asset and the accrued TRA liability.
See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - (continued)
(amounts in thousands)

|  | Six Months Ended June 30, 2025
|  | Common Shares - Class A |  | Common Shares - Class C |  | Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Stagwell Inc. Shareholders’ Equity |  | Noncontrolling Interests |  | Shareholders’ Equity
|  | Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |  |  |  |  |  |  |  |
| Balance at December 31, 2024 | 114,847 |  |  | $ | 115 |  |  | 151,649 |  |  | $ | 2 |  |  | $ | 343,647 |  |  | $ | 11,740 |  |  | $ | (23,773) |  |  | $ | 331,731 |  |  | $ | 445,174 |  |  | $ | 776,905 |
| Net loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,178) |  |  | — |  |  | (8,178) |  |  | (1,781) |  |  | (9,959) |
| Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 28,539 |  |  | 28,539 |  |  | 6,027 |  |  | 34,566 |
| Total other comprehensive income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,178) |  |  | 28,539 |  |  | 20,361 |  |  | 4,246 |  |  | 24,607 |
| Distributions to noncontrolling interests | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,040) |  |  | (3,040) |
| Changes in redemption value of RNCI, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,360 |  |  | — |  |  | 1,360 |  |  | — |  |  | 1,360 |
| Restricted awards granted or vested | 5,333 |  |  | 5 |  |  | — |  |  | — |  |  | 562 |  |  | — |  |  | — |  |  | 567 |  |  | — |  |  | 567 |
| Shares repurchased and cancelled | (13,005) |  |  | (13) |  |  | — |  |  | — |  |  | (68,170) |  |  | — |  |  | — |  |  | (68,183) |  |  | — |  |  | (68,183) |
| Restricted shares forfeited | (257) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| Stock-based compensation | — |  |  | — |  |  | — |  |  | — |  |  | 24,226 |  |  | — |  |  | — |  |  | 24,226 |  |  | — |  |  | 24,226 |
| Change in ownership held by Class C shareholders | — |  |  | — |  |  | — |  |  | — |  |  | (1,509) |  |  | — |  |  | — |  |  | (1,509) |  |  | 1,509 |  |  | — |
| Shares issued, acquisitions | 2,672 |  |  | 3 |  |  | — |  |  | — |  |  | 15,297 |  |  | — |  |  | — |  |  | 15,300 |  |  | — |  |  | 15,300 |
| Conversion of Class C to Class A shares | 151,649 |  |  | 152 |  |  | (151,649) |  |  | (2) |  |  | 447,412 |  |  | — |  |  | (25,701) |  |  | 421,861 |  |  | (421,861) |  |  | — |
| Other (1) | (3) |  |  | (1) |  |  | — |  |  | — |  |  | 4,433 |  |  | 1 |  |  | (1) |  |  | 4,432 |  |  | (4,226) |  |  | 206 |
| Balance at June 30, 2025 | 261,236 |  |  | $ | 261 |  |  | — |  |  | $ | — |  |  | $ | 765,898 |  |  | $ | 4,923 |  |  | $ | (20,936) |  |  | $ | 750,146 |  |  | $ | 21,802 |  |  | $ | 771,948 |

(1) The Other line within Paid-in Capital includes $4.6 million in connection with the conversion of Class C to Class A shares as this resulted in an adjustment between the deferred tax asset and the accrued TRA liability.
See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - (continued)
(amounts in thousands)

| Three Months Ended June 30, 2024
| Common Shares - Class A & B |  | Common Shares - Class C |  | Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Stagwell Inc. Shareholders’ Equity |  | Noncontrolling Interests |  | Shareholders’ Equity
| Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |  |  |  |  |  |  |  |
Balance at March 31, 2024 | 114,819 |  |  | $ | 115 |  |  | 151,649 |  |  | $ | 2 |  |  | $ | 333,896 |  |  | $ | 19,618 |  |  | $ | (15,931) |  |  | $ | 337,700 |  |  | $ | 459,890 |  |  | $ | 797,590 |
Net loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,965) |  |  | — |  |  | (2,965) |  |  | (989) |  |  | (3,954) |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,999) |  |  | (1,999) |  |  | (3,480) |  |  | (5,479) |
Total other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,965) |  |  | (1,999) |  |  | (4,964) |  |  | (4,469) |  |  | (9,433) |
Distributions to noncontrolling interests (1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21,074) |  |  | (21,074) |
Purchases of noncontrolling interest | — |  |  | — |  |  | — |  |  | — |  |  | (4,813) |  |  | — |  |  | — |  |  | (4,813) |  |  | — |  |  | (4,813) |
Changes in redemption value of RNCI | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 115 |  |  | — |  |  | 115 |  |  | — |  |  | 115 |
Restricted awards granted or vested | 2,950 |  |  | 3 |  |  | — |  |  | — |  |  | 274 |  |  | — |  |  | — |  |  | 277 |  |  | — |  |  | 277 |
Shares repurchased and cancelled | (8,976) |  |  | (9) |  |  | — |  |  | — |  |  | (56,680) |  |  | — |  |  | — |  |  | (56,689) |  |  | — |  |  | (56,689) |
Restricted shares forfeited | (66) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | — |  |  | — |  |  | — |  |  | — |  |  | 5,458 |  |  | — |  |  | — |  |  | 5,458 |  |  | — |  |  | 5,458 |
Shares issued, acquisitions | 3,238 |  |  | 3 |  |  | — |  |  | — |  |  | 19,262 |  |  | — |  |  | — |  |  | 19,265 |  |  | — |  |  | 19,265 |
Change in ownership held by Class C shareholders | — |  |  | — |  |  | — |  |  | — |  |  | (4,781) |  |  | — |  |  | — |  |  | (4,781) |  |  | 4,781 |  |  | — |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | (1) |  |  | 2 |  |  | (774) |  |  | (772) |
Balance at June 30, 2024 | 111,965 |  |  | $ | 112 |  |  | 151,649 |  |  | $ | 2 |  |  | $ | 292,616 |  |  | $ | 16,771 |  |  | $ | (17,931) |  |  | $ | 291,570 |  |  | $ | 438,354 |  |  | $ | 729,924 |

(1) Distributions to noncontrolling interests include approximately $19.1 million to Class C Shareholders.
See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - (continued)
(amounts in thousands)

| Six Months Ended June 30, 2024
| Common Shares - Class A & B |  | Common Shares - Class C |  | Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Stagwell Inc. Shareholders’ Equity |  | Noncontrolling Interests |  | Shareholders’ Equity
| Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2023 | 118,469 |  |  | $ | 118 |  |  | 151,649 |  |  | $ | 2 |  |  | $ | 348,494 |  |  | $ | 21,148 |  |  | $ | (13,067) |  |  | $ | 356,695 |  |  | $ | 468,577 |  |  | $ | 825,272 |
Net loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,247) |  |  | — |  |  | (4,247) |  |  | (420) |  |  | (4,667) |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,863) |  |  | (4,863) |  |  | (7,762) |  |  | (12,625) |
Total other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,247) |  |  | (4,863) |  |  | (9,110) |  |  | (8,182) |  |  | (17,292) |
Distributions to noncontrolling interests (1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21,074) |  |  | (21,074) |
Purchases of noncontrolling interest | — |  |  | — |  |  | — |  |  | — |  |  | (3,069) |  |  | — |  |  | — |  |  | (3,069) |  |  | (10,226) |  |  | (13,295) |
Changes in redemption value of RNCI | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (135) |  |  | — |  |  | (135) |  |  | — |  |  | (135) |
Restricted awards granted or vested | 3,101 |  |  | 3 |  |  | — |  |  | — |  |  | 528 |  |  | — |  |  | — |  |  | 531 |  |  | — |  |  | 531 |
Shares repurchased and cancelled | (13,804) |  |  | (14) |  |  | — |  |  | — |  |  | (87,261) |  |  | — |  |  | — |  |  | (87,275) |  |  | — |  |  | (87,275) |
Restricted shares forfeited | (84) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | — |  |  | — |  |  | — |  |  | — |  |  | 19,008 |  |  | — |  |  | — |  |  | 19,008 |  |  | — |  |  | 19,008 |
Shares issued, acquisitions | 4,231 |  |  | 4 |  |  | — |  |  | — |  |  | 25,400 |  |  | — |  |  | — |  |  | 25,404 |  |  | — |  |  | 25,404 |
Change in ownership held by Class C shareholders | — |  |  | — |  |  | — |  |  | — |  |  | (10,828) |  |  | — |  |  | — |  |  | (10,828) |  |  | 10,828 |  |  | — |
Other | 52 |  |  | 1 |  |  | — |  |  | — |  |  | 344 |  |  | 5 |  |  | (1) |  |  | 349 |  |  | (1,569) |  |  | (1,220) |
Balance at June 30, 2024 | 111,965 |  |  | $ | 112 |  |  | 151,649 |  |  | $ | 2 |  |  | $ | 292,616 |  |  | $ | 16,771 |  |  | $ | (17,931) |  |  | $ | 291,570 |  |  | $ | 438,354 |  |  | $ | 729,924 |

(1) Distributions to noncontrolling interests include approximately $19.1 million to Class C Shareholders.
See Notes to the Unaudited Consolidated Financial Statements.
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STAGWELL INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Business and Basis of Presentation
Stagwell Inc. together with its consolidated subsidiaries, unless the context requires otherwise, (the “Company,” “we,” or “Stagwell”), incorporated under the laws of Delaware, conducts its business through its networks and its portfolio of marketing services firms (“Brands”), which provide marketing and business solutions that realize the potential of combining data and creativity. Stagwell’s strategy is to build, grow and acquire market-leading businesses that deliver the modern suite of services that marketers need to thrive in a rapidly evolving business environment.
The accompanying Unaudited Consolidated Financial Statements include the accounts of Stagwell and its subsidiaries. Stagwell has prepared the unaudited consolidated interim financial statements included herein in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting interim financial information on Form 10-Q. Accordingly, pursuant to these rules, the footnotes do not include certain information and disclosures. The preparation of financial statements in conformity with GAAP requires us to make judgments, assumptions and estimates about current and future results of operations and cash flows that affect the amounts reported and disclosed. Actual results could differ from these estimates and assumptions. The consolidated reports for interim periods are not necessarily indicative of results for the full year and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”).
The accompanying financial statements reflect all adjustments, consisting of normal recurring accruals, which in the opinion of management are necessary for a fair statement, in all material respects, of the information contained therein. Intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior year financial information to conform to the current year’s presentation.
2. New Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement—Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses (“ASU 2024-03”), to enhance the transparency and decision usefulness of financial information presented in the income statement by requiring disaggregated information about certain income statement expense line items. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of these new requirements on its income statement presentation and disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (“ASU 2023-09”), to enhance the transparency and decision usefulness of income tax disclosures by requiring disaggregated information about an entity’s effective tax rate reconciliation, as well as information on taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Interim disclosures are not impacted by this update. The Company is evaluating the impact of these amendments on its annual disclosures.
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3. Acquisitions
2025 Acquisitions
Acquisition of ADK
On June 2, 2025, the Company acquired ADK Global (“ADK”), a network of marketing solutions companies operating in APAC region, for an estimated purchase price of $25.7 million, subject to post-closing adjustments. In accordance with the agreement, the Company and the sellers are expected to finalize the purchase price within 90 days from the acquisition date. Accordingly, substantially all of the payment for this acquisition is expected to be made in the fiscal quarter ending September 30, 2025.
The consideration has been allocated to the assets acquired and assumed liabilities of ADK based upon fair values. The purchase price accounting is not yet final and the preliminary purchase price allocation is as follows:

|  | Amount
|  | (dollars in thousands)
Cash and cash equivalents |  | $ | 34,200 |
Accounts receivable, net |  | 15,307 |
Other current assets |  | 7,529 |
Right-of-use lease assets |  | 2,100 |
Fixed assets |  | 924 |
Identifiable intangible assets |  | 103 |
Other assets |  | 628 |
Accounts payable |  | (5,188) |
Accruals and other liabilities |  | (23,524) |
Advance billings |  | (3,292) |
Current portion of lease liabilities - operating leases |  | (1,500) |
Long-term lease liabilities - operating leases |  | (600) |
Other liabilities |  | (979) |
Purchase price consideration |  | $ | 25,708 |

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The unaudited pro forma information presents the combined results of operations of the Company and ADK for the periods set forth below giving effect to the acquisition as if it occurred as of January 1, 2024. The pro forma revenue and net loss for the three and six months ended June 30, 2024 would not have been materially different from the actual revenue and net loss reported. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time.

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (dollars in thousands) |  |
Revenue | $ | 722,667 |  |  | $ | 687,264 |  |  | $ | 1,389,112 |  |  | $ | 1,373,675 |  |  |
Net Loss | $ | (6,652) |  |  | $ | (4,523) |  |  | $ | (13,882) |  |  | $ | (6,274) |  |  |

Revenue attributable to ADK, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was $6.3 million. Net loss attributable to ADK, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was $0.6 million.
The purchase price accounting is not yet final as the Company has not yet finalized its valuation processes and therefore it may still make adjustments.
Acquisition of Jetfuel
On May 1, 2025, the Company acquired JetFuel Studio LLC and Powered by JetFuel LLC (collectively, “Jetfuel”), an experiential marketing company, for $22.2 million, of which $10.3 million was paid in cash, $11.3 million was paid in 2,017,857 shares of the Company’s Class A common stock, par value $0.001 per share (“Class A Common Stock”) and $0.7 million in a deferred cash payment, subject to post-closing adjustments. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of $59.5 million, subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock, at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Jetfuel and expected growth related to new customer relationships. Goodwill of $11.9 million was assigned to the Integrated Agencies Network reportable segment. The goodwill is fully deductible for income tax purposes. The purchase price accounting is not yet final as the Company may still make adjustments due to changes in post-closing adjustments.
Acquisition of Create
On April 2, 2025, the Company acquired Create Group Holding Limited (“Create”), a strategic digital communications group in the Middle East, for $15.7 million, of which $11.5 million was paid in cash, $4.0 million was paid in 653,663 shares of the Company’s Class A Common Stock and $0.2 million in a deferred cash payment, subject to post-closing adjustments. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of approximately $24.0 million, subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock, at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Create and expected growth related to new customer relationships. Goodwill of $7.3 million was assigned to the Integrated Agencies Network reportable segment. The goodwill is not deductible for income tax purposes. The purchase price accounting is not yet final as the Company may still make adjustments due to changes in post-closing adjustments.
2024 Acquisitions
Acquisition of Unicepta
On December 19, 2024, the Company acquired UNICEPTA Holding GmbH (“Unicepta”), a global media monitoring and analytics platform, for 60.1 million Euros (“€”) (approximately $62 million), of which €23.8 million (approximately $24 million) was paid in cash, €25.0 million (approximately $26 million) in 3,390,788 shares of the Company’s Class A Common Stock , €0.7 million in a deferred cash payment (approximately $1 million), which was paid in January 2025, and €10.6 million (approximately $11 million) attributable to contingent consideration which is considered part of the purchase price, subject to post-closing adjustments. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of €40.0 million (approximately $42 million) subject to meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion.
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The consideration has been allocated to the assets acquired and assumed liabilities of Unicepta based upon fair values. The preliminary purchase price allocation is as follows:

|  | Amount
|  | (dollars in thousands)
Cash and cash equivalents |  | $ | 2,723 |
Accounts receivable, net |  | 9,354 |
Other current assets |  | 575 |
Right-of-use lease assets |  | 5,911 |
Fixed assets |  | 429 |
Identifiable intangible assets |  | 36,833 |
Other assets |  | 140 |
Accounts payable |  | (2,808) |
Accruals and other liabilities |  | (6,998) |
Advance billings |  | (951) |
Current portion of lease liabilities - operating leases |  | (1,071) |
Long-term lease liabilities - operating leases |  | (5,400) |
Deferred tax liabilities, net |  | (10,500) |
Other liabilities |  | (406) |
Net assets assumed |  | 27,831 |
Goodwill |  | 34,583 |
Purchase price consideration |  | $ | 62,414 |

The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Unicepta. Goodwill of $34.6 million was assigned to the Stagwell Marketing Cloud Group reported within All Other. The goodwill is not deductible for income tax purposes.
Intangible assets consist of trade names, customer relationships, and developed technology. We amortize purchased intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is 10 years. The following table presents the details of identifiable intangible assets acquired:

|  | Estimated Fair Value |  | Estimated Useful Life in Years
|  | (dollars in thousands) |  |
Customer relationships |  | $ | 22,083 |  |  | 12
Trade names |  | 5,417 |  |  | 10
Developed Technology |  | 9,333 |  |  | 5
Total acquired intangible assets |  | $ | 36,833 |  |  |

The unaudited pro forma information presents the combined results of operations of the Company and Unicepta for the periods set forth below giving effect to the acquisition as if it occurred as of January 1, 2024. The pro forma revenue and net loss for the three and six months ended June 30, 2024 would not have been materially different from the actual revenue and net loss reported. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time.

|  | Three Months Ended June 30, 2024 |  | Six Months Ended June 30, 2024
|  | (dollars in thousands)
Revenue |  | $ | 684,630 |  |  | $ | 1,367,875 |
Net loss |  | $ | (5,275) |  |  | $ | (8,855) |

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Revenue attributable to Unicepta, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was $13.2 million and $25.6 million, respectively. Net loss attributable to Unicepta, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was less than 0.1 million.
The purchase price accounting is not yet final as the Company has not yet finalized its valuation processes and therefore may still make adjustments.
Acquisition of Consulum
On October 1, 2024, the Company acquired Consulum (Cayman) Limited (“Consulum”), a government advisory firm that provides public relations management and media and marketing services, for $82.8 million, of which $58.6 million was paid in cash, $12.9 million in 1,810,274 shares of the Company’s Class A Common Stock, and $11.3 million was attributed to contingent consideration which is considered part of the purchase price. On January 29, 2025, the Company paid $0.1 million to the sellers as a post-closing adjustment. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of $90.0 million, partially subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion.
The consideration has been allocated to the assets acquired and assumed liabilities of Consulum based upon fair values. The preliminary purchase price allocation is as follows:

|  | Amount
|  | (dollars in thousands)
Cash and cash equivalents |  | $ | 2,151 |
Accounts receivable, net |  | 26,845 |
Other current assets |  | 3,094 |
Right-of-use lease assets |  | 2,173 |
Fixed assets |  | 2,032 |
Identifiable intangible assets |  | 57,200 |
Accounts payable |  | (2,078) |
Accruals and other liabilities |  | (9,167) |
Advance billings |  | (5,425) |
Current portion of lease liabilities - operating leases |  | (983) |
Long-term lease liabilities - operating leases |  | (1,065) |
Deferred tax liabilities, net |  | (8,618) |
Net assets assumed |  | 66,159 |
Goodwill |  | 16,687 |
Purchase price consideration |  | $ | 82,846 |

The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Consulum. Goodwill of $16.7 million was assigned to the Communications Network reportable segment. The goodwill is not deductible for income tax purposes.
Intangible assets consist of trade names and customer relationships. We amortize purchased intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is nine years. The following table presents the details of identifiable intangible assets acquired:
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|  | Estimated Fair Value |  | Estimated Useful Life in Years
|  | (dollars in thousands) |  |
Customer relationships |  | $ | 43,800 |  |  | 7
Trade names |  | 13,400 |  |  | 10
Total acquired intangible assets |  | $ | 57,200 |  |  |

The unaudited pro forma information presents the combined results of operations of the Company and Consulum for the periods set forth below giving effect to the acquisition as if it occurred as of January 1, 2024. The pro forma revenue and net loss for the three and six months ended June 30, 2024 would not have been materially different from the actual revenue and net loss reported. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time.

|  | Three Months Ended June 30, 2024 |  | Six Months Ended June 30, 2024
|  | (dollars in thousands)
Revenue |  | $ | 684,832 |  |  | $ | 1,369,810 |
Net loss |  | $ | (2,708) |  |  | $ | (95) |

Revenue attributable to Consulum, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was $16.0 million and $28.7 million, respectively. Net income attributable to Consulum included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025, was $6.4 million and $6.6 million, respectively.
The purchase price accounting is not yet final as the Company has not yet finalized its valuation processes and therefore may still make adjustments.
Acquisition of Team Epiphany
On January 2, 2024, the Company acquired Team Epiphany, LLC (“Epiphany”), a consumer marketing company, for $16.7 million, of which $11.7 million was paid in cash and $5.0 million in 797,916 shares of Class A Common Stock, subject to post-closing adjustments. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of $17.0 million, subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion. The goodwill is deductible for income tax purposes.
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The consideration has been allocated to the assets acquired and assumed liabilities of Epiphany based upon fair values. The purchase price allocation is as follows:

| Amount
| (dollars in thousands)
Cash and cash equivalents | $ | 1,095 |
Accounts receivable, net | 8,283 |
Expenditures billable to clients | 4,823 |
Other current assets | 402 |
Right-of-use lease assets | 2,788 |
Fixed assets | 184 |
Identifiable intangible assets | 4,316 |
Accounts payable | (1,086) |
Accruals and other liabilities | (664) |
Advance billings | (8,808) |
Current portion of lease liabilities - operating leases | (516) |
Long-term lease liabilities - operating leases | (2,600) |
Net assets assumed | 8,217 |
Goodwill | 8,452 |
Purchase price consideration | $ | 16,669 |

The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Epiphany. Goodwill of $8.5 million was assigned to the Integrated Agencies Network reportable segment.
Intangible assets consist of trade names and customer relationships. We amortize purchased intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is three years. The following table presents the details of identifiable intangible assets acquired:

|  | Estimated Fair Value |  | Estimated Useful Life in Years
|  | (dollars in thousands) |  |
Customer relationships |  | $ | 3,767 |  |  | 3
Trade names |  | 549 |  |  | 3
Total acquired intangible assets |  | $ | 4,316 |  |  |

Revenue attributable to Epiphany, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025 was $9.7 million and $20.6 million, respectively, and net income was $0.3 million and $1.6 million, respectively. Revenue attributable to Epiphany, included within the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2024 was $10.3 million and $23.7 million, respectively, and net income was $0.6 million and $0.7 million, respectively.
Other 2024 Acquisitions
On July 19, 2024, the Company acquired L.D.R.S. Group Ltd. (“Leaders”), for 25.2 million Israeli New Shekels (“ILS”) (approximately $7 million), of which 10.9 million ILS (approximately $3 million) was paid in cash, 3.5 million ILS (approximately $1 million) in 135,010 shares of the Company’s Class A Common stock, and 10.9 million ILS (approximately $3 million) was attributed to contingent consideration which is considered part of the purchase price. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of 24.2 million ILS (approximately $7 million), partially subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of Leaders and expected growth related to new customer relationships. Goodwill of $4.9 million was assigned to the All Other category.
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The goodwill is not fully deductible for income tax purposes. The purchase price accounting is not yet final as the Company may still make adjustments due to changes in post-closing adjustments.
On April 5, 2024, the Company acquired PROS Agency (“PROS”), for 42.1 million Brazilian reals (“R$”) approximately $8.5 million) of which R$23.3 million ($4.7 million) was paid in cash, R$5.3 million ($1.1 million) was paid in 182,256 shares of Class A Common Stock, and R$13.5 million ($2.7 million) was attributed to contingent consideration which is considered part of the purchase price. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of R$72.5 million ($14.4 million), partially subject to continued employment, and meeting certain future earnings targets, of which a portion may be settled in shares of the Company’s Class A Common Stock, at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of PROS and expected growth related to new customer relationships. Goodwill of $5.4 million was assigned to the Communications Network reportable segment. The goodwill is not fully deductible for income tax purposes.
On April 4, 2024, the Company acquired What’s Next Partners (“WNP”), for €4.3 million (approximately $5 million) in cash. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of €8.5 million (approximately $9 million), partially subject to continued employment and meeting certain future earnings targets, of which a portion may be settled in shares of the Company’s Class A Common Stock, at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily attributable to the assembled workforce of WNP and expected growth related to new customer relationships. Goodwill of $5.4 million was assigned to the Integrated Agencies Network reportable segment. The goodwill is not fully deductible for income tax purposes.
On March 1, 2024, the Company acquired Sidekick Live Limited (“Sidekick”), for 4.6 million British pounds (“£”) (approximately $6 million) of which £3.6 million (approximately $5 million) was paid in cash, £0.1 million (approximately $0.2 million) was incurred as a certain payable to sellers, and £0.9 million (approximately $1 million) in 195,431 shares of Class A Common Stock. On February 12, 2025, the Company paid £0.3 million (approximately less than $0.3 million) to the sellers as a post-closing adjustment and for the settlement of a certain payable to sellers as noted above. In connection with the acquisition, the sellers are entitled to contingent consideration up to a maximum value of £8.0 million (approximately $10 million), subject to continued employment requirements and meeting certain future earnings targets, of which a portion may be settled in shares of Class A Common Stock at the Company’s discretion. The excess of purchase consideration over the fair value of the net assets acquired was mainly recorded as goodwill, which is primarily attributable to the assembled workforce of Sidekick and expected growth related to new customer relationships. Goodwill of $2.2 million was assigned to the Communications Network reportable segment. The goodwill is not fully deductible for income tax purposes.
4. Revenue
Disaggregated Revenue Data
The Company provides a broad range of services to a large base of clients across the full spectrum of verticals globally. The primary source of revenue is from Brand arrangements in the form of fees for services performed, commissions, and from performance incentives or bonuses. Certain clients may engage with the Company in various geographic locations, across multiple disciplines, and through multiple Brands. Representation of a client rarely means that Stagwell handles marketing communications for all Brands or product lines of the client in every geographical location. The Company’s Brands often cooperate with one another through referrals and the sharing of both services and expertise, which enables Stagwell to service clients’ varied marketing needs by crafting custom integrated solutions.
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In the first quarter of 2025, the Company reclassified a certain Brand from the Digital Transformation into the Performance Media and Data principal capability, to better align with our service offerings. Prior periods presented have been recast to reflect this change. The following table presents revenue disaggregated by our principal capabilities for the three and six months ended June 30, 2025 and 2024:

|  |  | Three Months Ended June 30, |  | Six Months Ended June 30, |  |
Principal Capabilities | Reportable Segment |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
|  |  | (dollars in thousands)
Digital Transformation | All segments |  | $ | 125,947 |  |  | $ | 125,342 |  |  | $ | 242,413 |  |  | $ | 241,101 |  |  |
Creativity and Communications | All segments |  | 340,762 |  |  | 316,761 |  |  | 643,796 |  |  | 608,414 |  |  |
Performance Media and Data | Integrated Agencies Network and Brand Performance Network |  | 112,368 |  |  | 116,541 |  |  | 222,185 |  |  | 273,561 |  |  |
Consumer Insights and Strategy | Integrated Agencies Network |  | 49,655 |  |  | 47,717 |  |  | 98,546 |  |  | 93,486 |  |  |
Stagwell Marketing Cloud Group | All segments |  | 78,086 |  |  | 64,807 |  |  | 151,618 |  |  | 124,665 |  |  |
|  |  | $ | 706,818 |  |  | $ | 671,168 |  |  | $ | 1,358,558 |  |  | $ | 1,341,227 |  |  |

As of June 30, 2025, Stagwell’s Brands were located in the United States, the United Kingdom, and 33 other countries around the world. The Company continues to expand its global footprint to support clients in international markets. Historically, some clients have responded to weakening economic conditions with reductions to their marketing budgets, which included discretionary components that are easier to reduce in the short term than other operating expenses.
The following table presents revenue disaggregated by geography for the three and six months ended June 30, 2025 and 2024:

|  |  | Three Months Ended June 30, |  | Six Months Ended June 30, |  |
Geographical Location | Reportable Segment |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
|  |  | (dollars in thousands)
United States | All |  | $ | 557,395 |  |  | $ | 551,080 |  |  | $ | 1,070,013 |  |  | $ | 1,114,730 |  |  |
United Kingdom | All |  | 38,051 |  |  | 40,515 |  |  | 75,935 |  |  | 78,276 |  |  |
Other | All |  | 111,372 |  |  | 79,573 |  |  | 212,610 |  |  | 148,221 |  |  |
|  |  | $ | 706,818 |  |  | $ | 671,168 |  |  | $ | 1,358,558 |  |  | $ | 1,341,227 |  |  |

Contract Assets and Liabilities
Contract assets consist of fees and reimbursable outside vendor costs incurred on behalf of clients when providing advertising, marketing and corporate communications services that have not yet been invoiced to clients. Such amounts are invoiced to clients at various times over the course of providing services. In arrangements in which we are acting as principal, contract assets are included as a component of Accounts receivable on the Unaudited Consolidated Balance Sheets. These assets were $192.2 million and $135.9 million as of June 30, 2025 and December 31, 2024, respectively. In arrangements in which we are acting as agent, contract assets pertaining to reimbursable outside vendor costs are included on the Unaudited Consolidated Balance Sheets as Expenditures billable to clients. These assets were $150.2 million and $173.2 million as of June 30, 2025 and December 31, 2024, respectively.
Contract liabilities represent advanced billings to customers for fees and reimbursements of third-party costs, whether we act as principal or agent. Such fees and reimbursements of third-party costs are classified as Advance billings on the Company’s Unaudited Consolidated Balance Sheets. Advance billings at June 30, 2025 and December 31, 2024, were $339.6 million and $294.6 million, respectively. The change in Advance billings of $45.0 million for the six months ended June 30, 2025 was primarily driven by $231.1 million of revenue recognized that was included in the Advance billings balances as of December 31, 2024, the incurrence of third-party costs, and cash payments received or due in advance of satisfying our performance obligations. In arrangements in which we are acting as an agent, the revenue recognized related to the contract liability is presented on a net basis within the Unaudited Consolidated Statements of Operations.
Changes in the contract asset and liability balances during the six months ended June 30, 2025 were not materially impacted by acquisitions, write-offs, impairment losses or any other factors.
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Unsatisfied Performance Obligations
The majority of our contracts are for periods of one year or less. For those contracts with a term of more than one year, we had $174.7 million of unsatisfied performance obligations as of June 30, 2025, of which we expect to recognize approximately 48% in 2025, 41% in 2026, 9% in 2027, 2% in 2028, and thereafter.
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5. Loss Per Share
The following table presents the computations of basic and diluted loss per common share for the three months ended June 30, 2025 (amounts in thousands, except per share amounts):

| Three Months Ended June 30, |
| 2025 |
Loss Per Share - Basic and Diluted |  |
Numerator: |  |
Net loss | $ | (4,634) |  |
Net income attributable to noncontrolling and redeemable noncontrolling interests | (627) |  |
Net loss attributable to Stagwell Inc. common shareholders | $ | (5,261) |  |
Denominator: |  |
Weighted Average number of common shares outstanding | 260,774 |  |
Loss Per Share - Basic and Diluted | $ | (0.02) |  |
Anti-dilutive: |  |
Class A Shares to settle deferred acquisition obligations | 8,428 |  |
Stock Appreciation Rights and Restricted Awards | 3,151 |  |
Employee Stock Purchase Plan shares | 63 |  |

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The following table presents the computations of basic and diluted loss per common share for the six months ended June 30, 2025 (amounts in thousands, except per share amounts):

| Six Months Ended June 30, |
| 2025 |
Loss Per Share - Basic |  |
Numerator: |  |
Net loss | $ | (9,959) |  |
Net loss attributable to Class C shareholders | 6,637 |  |
Net income attributable to other equity interest holders | (4,856) |  |
Net loss attributable to noncontrolling and redeemable noncontrolling interests | $ | 1,781 |  |
Net loss attributable to Stagwell Inc. common shareholders | $ | (8,178) |  |
Denominator: |  |
Weighted Average number of common shares outstanding | 186,843 |  |
Loss Per Share - Basic | $ | (0.04) |  |
Loss Per Share - Diluted |  |
Numerator: |  |
Net loss attributable to Stagwell Inc. common shareholders | $ | (8,178) |  |
Net loss attributable to Class C shareholders | (6,637) |  |
| $ | (14,815) |  |
Denominator: |  |
Basic - Weighted Average number of common shares outstanding | 186,843 |  |
Dilutive shares: |  |
Class C Shares | 78,757 |  |
Diluted - Weighted average number of common shares outstanding | 265,600 |  |
Loss Per Share - Diluted | $ | (0.06) |  |
Anti-dilutive: |  |
Class A Shares to settle deferred acquisition obligations | 7,503 |  |
Stock Appreciation Rights and Restricted Awards | 4,812 |  |
Employee Stock Purchase Plan shares | 60 |  |

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The following table presents the computations of basic and diluted loss per common share for the three months ended June 30, 2024 (amounts in thousands, except per share amounts):

|  | Three Months Ended June 30,
|  | 2024
Loss Per Share - Basic and Diluted |  |
Numerator: |  |
Net loss |  | $ | (3,954) |
Net loss attributable to Class C shareholders |  | 2,535 |
Net income attributable to other equity interest holders |  | (1,546) |
Net loss attributable to noncontrolling and redeemable noncontrolling interests |  | 989 |
Net loss attributable to Stagwell Inc. common shareholders |  | $ | (2,965) |
Denominator: |  |
Weighted Average number of common shares outstanding |  | 113,484 |
Loss Per Share - Basic |  | $ | (0.03) |
Anti-dilutive: |  |
Class C Shares |  | 151,649 |
Stock Appreciation Rights and Restricted Awards |  | 4,177 |
Class A Shares to settle deferred acquisition obligations |  | 2,810 |
Employee Stock Purchase Plan shares |  | 39 |

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The following table presents the computations of basic and diluted loss per common share for the six months ended June 30, 2024 (amounts in thousands, except per share amounts):

|  | Six Months Ended June 30,
|  | 2024
Loss Per Share - Basic and Diluted |  |
Numerator: |  |
Net loss |  | $ | (4,667) |
Net loss attributable to Class C shareholders |  | 3,582 |
Net income attributable to other equity interest holders |  | (3,162) |
Net loss attributable to noncontrolling and redeemable noncontrolling interests |  | 420 |
Net loss attributable to Stagwell Inc. common shareholders |  | $ | (4,247) |
Denominator: |  |
Weighted Average number of common shares outstanding |  | 113,059 |
Loss Per Share - Basic |  | $ | (0.04) |
Anti-dilutive: |  |
Class C Shares |  | 151,649 |
Stock Appreciation Rights and Restricted Awards |  | 3,641 |
Class A Shares to settle deferred acquisition obligations |  | 2,851 |
Employee Stock Purchase Plan shares |  | 39 |

Restricted stock awards of 4.8 million and 4.6 million as of June 30, 2025 and 2024, respectively, were excluded from the computation of diluted loss per common share because the performance contingencies necessary for vesting were not met as of the reporting date.
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6. Deferred Acquisition Consideration
Deferred acquisition consideration on the Unaudited Consolidated Balance Sheets consists of deferred obligations related to contingent purchase price payments and retention payments tied to continued employment of specific personnel. Arrangements that are not contingent upon future employment are initially measured at the acquisition date fair value and are remeasured at each reporting period within Office and general expenses on the Unaudited Consolidated Statements of Operations. Arrangements that are contingent upon future employment are expensed as earned over the respective vesting (employment) period within Office and general expenses on the Unaudited Consolidated Statements of Operations.
The following table presents changes in deferred acquisition consideration for the six months ended June 30, 2025 and the year ended December 31, 2024 and a reconciliation to the amounts reported on the Unaudited Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 :

| 2025 |  | 2024
| (dollars in thousands)
Beginning balance | $ | 102,115 |  |  | $ | 101,058 |
Payments (1) | (16,103) |  |  | (67,895) |
Adjustments to deferred acquisition consideration (2) | 3,437 |  |  | 23,005 |
Additions (3) | — |  |  | 46,598 |
Currency translation adjustment | 2,214 |  |  | (651) |
Ending balance (4) | $ | 91,663 |  |  | $ | 102,115 |

(1) Includes deferred acquisition consideration payments settled in shares of Class A Common Stock of $18.2 million for the year ended December 31, 2024.
(2) Adjustments to deferred acquisition consideration contains fair value changes from the Company’s initial estimates of deferred acquisition payments and accretion of expense as awards are earned over the vesting period.
(3) Additions in 2024 of $46.6 million include $28.1 million related to the Company’s acquisitions (See Note 3 for further information). It also includes $17.0 million related to a reclassification from redeemable noncontrolling interest to deferred acquisition consideration in connection with the purchase of the remaining 40% interest the Company did not previously own in a certain Brand.
(4) The deferred acquisition consideration as of June 30, 2025 and December 31, 2024 includes $40.0 million and $38.4 million, respectively, expected to be settled in shares of Class A Common Stock.
7. Leases
The Company leases office space in North America, Europe, Asia, South America, Middle East, Africa and Australia. These spaces are primarily used for office and administrative purposes by the Company’s employees in performing professional services. These leases are classified as operating leases and expire between years 2025 through 2036. The Company’s finance leases are immaterial.
Lease costs are recognized in the Unaudited Consolidated Statements of Operations over the lease term on a straight-line basis. Leasehold improvements are depreciated on a straight-line basis over the lesser of the term of the related lease or the estimated useful life of the asset.
Some of the Company’s leases include options to extend or renew the leases through 2044. The renewal and extension options are not included in the lease term as the Company is not reasonably certain that it will exercise its option.
From time to time, the Company enters into sublease arrangements with unrelated third parties. These subleases are classified as operating leases and expire between years 2025 and 2032. Sublease income is recognized over the lease term on a straight-line basis. Currently, the Company subleases office space in North America and Europe.
As of June 30, 2025, the Company had entered into two operating leases for which the commencement date had not yet occurred because the premises were being prepared for occupancy by the landlords. Accordingly, these two leases represent obligations of the Company that are not reflected within the Unaudited Consolidated Balance Sheets as of June 30, 2025. The aggregate future liabilities related to these leases were $1.2 million as of June 30, 2025.
The discount rate used for leases accounted for under the FASB’s Accounting Standards Codification 842 (“ASC 842”) is the Company’s collateralized credit adjusted borrowing rate.
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The following table presents lease costs and other quantitative information for the three and six months ended June 30, 2025 and 2024:

| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Lease Cost: | (dollars in thousands)
Operating lease cost | $ | 16,957 |  | $ | 18,702 |  | $ | 34,075 |  | $ | 39,648 |  |
Variable lease cost | 5,138 |  | 5,889 |  | 11,145 |  | 11,826 |  |
Sublease rental income | (2,161) |  | (1,935) |  | (4,296) |  | (4,415) |  |
Total lease cost | $ | 19,934 |  | $ | 22,656 |  | $ | 40,924 |  | $ | 47,059 |  |
Additional information: |  |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities for operating leases |  |  |  |  |  |  |  |  |
Operating cash flows | $ | 19,982 |  | $ | 22,159 |  | $ | 40,167 |  | $ | 43,819 |  |
Right-of-use lease assets obtained in exchange for operating lease liabilities and other non-cash adjustments | $ | 20,116 |  | $ | 7,171 |  | $ | 21,636 |  | $ | 13,138 |  |

As of June 30, 2025, the weighted average remaining lease term was 5.6 years, and the weighted average discount rate was 5.8%.
Operating lease expense is included in Office and general expenses in the Unaudited Consolidated Statements of Operations. The Company’s lease expense for leases with a term of 12 months or less is immaterial.
The following table presents minimum future rental payments under the Company’s leases as of June 30, 2025 and their reconciliation to the corresponding lease liabilities:

| Maturity Analysis
| (dollars in thousands)
2025 | $ | 33,812 |
2026 | 67,081 |
2027 | 59,647 |
2028 | 52,136 |
2029 | 47,038 |
Thereafter | 81,440 |
Total | 341,154 |
Less: Present value discount | (52,810) |
Lease liability | $ | 288,344 |

8. Debt
The following tables present the Company’s indebtedness as reported on the Unaudited Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024:

| June 30, 2025 |  | December 31, 2024
| (dollars in thousands)
Credit Agreement | $ | 377,000 |  |  | $ | 264,000 |
5.625% Notes | 1,100,000 |  |  | 1,100,000 |
Debt issuance costs | (12,758) |  |  | (10,376) |
Total long-term debt | $ | 1,464,242 |  |  | $ | 1,353,624 |

Interest expense related to long-term debt included in Interest expense, net on the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025 was $23.7 million and $46.4 million, respectively, and for the three and six months ended June 30, 2024 was $23.2 million and $43.5 million, respectively.
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The amortization of debt issuance costs included in Interest expense, net on the Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2025 was $0.7 million and $1.4 million, respectively, and for the three and six months ended June 30, 2024 was $0.7 million and $1.4 million, respectively.
Revolving Credit Agreement
The Company is party to a senior secured revolving credit facility with a five-year maturity with a syndicate of banks (the “Credit Agreement”). On April 23, 2025, the Company entered into the Second Amended and Restated Credit Agreement, which increased the limit of borrowing from $640 million to $750 million and extended the maturity date from August 3, 2026 to April 30, 2030. The Company recorded deferred financing cost related to the amendment of $3.6 million, which was included in Long-term debt on the Unaudited Consolidated Balance Sheets.
The Credit Agreement contains a number of financial and non-financial covenants and is guaranteed by substantially all of our present and future subsidiaries, subject to customary exceptions. The Company was in compliance with all covenants as of June 30, 2025.
A portion of the Credit Agreement in an amount not to exceed $50.0 million is available for the issuance of standby letters of credit. As of June 30, 2025 and December 31, 2024, the Company had issued undrawn outstanding letters of credit of $15.3 million and $15.3 million, respectively.
Senior Notes
The Company had $1.1 billion aggregate principal amount of 5.625% senior notes (“5.625% Notes”) outstanding as of June 30, 2025. The 5.625% Notes are due August 15, 2029, and bear annual interest of 5.625% to be paid semiannually on February 15 and August 15 of each year.
The 5.625% Notes are also subject to certain covenants, customary events of default, including cross-payment default and cross-acceleration provisions. The Company was in compliance with all covenants as of June 30, 2025.
9. Noncontrolling and Redeemable Noncontrolling Interests
When acquiring less than 100% ownership of an entity, the Company may enter into agreements that give the Company an option to purchase, or require the Company to purchase, the incremental ownership interests under certain circumstances. Where the option to purchase incremental ownership is within the Company’s control, the amounts are recorded as Noncontrolling interests within Shareholders’ Equity in the Unaudited Consolidated Balance Sheets. Where the incremental purchase may be required of the Company, the amounts are recorded as Redeemable noncontrolling interests in mezzanine equity in the Unaudited Consolidated Balance Sheets at their estimated acquisition date redemption value and adjusted at each reporting period for changes to their estimated redemption value through Retained earnings (but not less than their initial redemption value), except for foreign currency translation adjustments.
The following table presents Net income (loss) attributable to noncontrolling and redeemable noncontrolling interests between Class C shareholders and other equity interest holders for the three and six months ended June 30, 2025 and 2024:

| Three Months Ended June 30, |  | Six Months Ended June 30, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (dollars in thousands)
Net loss attributable to Class C shareholders | $ | — |  |  | $ | (2,535) |  |  | $ | (6,637) |  |  | $ | (3,582) |  |  |
Net income attributable to other equity interest holders | 624 |  |  | 773 |  |  | 626 |  |  | 1,596 |  |  |
Net income (loss) attributable to noncontrolling interests | $ | 624 |  |  | $ | (1,762) |  |  | $ | (6,011) |  |  | $ | (1,986) |  |  |
Net income attributable to redeemable noncontrolling interests | 3 |  |  | 773 |  |  | 4,230 |  |  | 1,566 |  |  |
Net income (loss) attributable to noncontrolling and redeemable noncontrolling interests | $ | 627 |  |  | $ | (989) |  |  | $ | (1,781) |  |  | $ | (420) |  |  |

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The following table presents noncontrolling interests between Class C shareholders and other equity interest holders as of June 30, 2025 and December 31, 2024:

| June 30, 2025 |  | December 31, 2024
| (dollars in thousands)
Noncontrolling interest of Class C shareholders (1) | $ | — |  |  | $ | 423,428 |
Noncontrolling interest of other equity interest holders (2) | 21,802 |  |  | 21,746 |
Total noncontrolling interests | $ | 21,802 |  |  | $ | 445,174 |

(1) On April 4, 2025, Stagwell Media LP (“Stagwell Media”) exercised in full its right to exchange all of its 151,648,741 shares of Class C common stock, par value $0.00001 per share (“Class C Common Stock”) for an equal number of newly issued shares of Class A Common Stock (the “Class C Exchange”). Following the Class C Exchange, the Company no longer has any Noncontrolling interest of Class C shareholders as of June 30, 2025.
(2) In January 2024, the Company entered into an agreement to purchase the remaining noncontrolling ownership interest in a subsidiary it previously controlled, the consideration for which was a portion of the subsidiary that was transferred to the noncontrolling interest owner. The non-cash purchase resulted in a reduction of the subsidiary noncontrolling interest by approximately $10.2 million.
The following table presents changes in redeemable noncontrolling interests for the six months ended June 30, 2025 and year ended December 31, 2024:

| June 30, 2025 |  | December 31, 2024
| (dollars in thousands)
Beginning balance | $ | 8,412 |  |  | $ | 10,792 |
Redemptions (1) | — |  |  | (17,039) |
Additions | — |  |  | 1,127 |
Distributions | (1,721) |  |  | (2,880) |
Changes in redemption value (2) | (1,360) |  |  | 13,363 |
Net income attributable to redeemable noncontrolling interests | 4,230 |  |  | 3,005 |
Currency translation adjustment | (313) |  |  | 44 |
Ending balance | $ | 9,248 |  |  | $ | 8,412 |

(1) Redemptions for the year ended December 31, 2024 was associated with redeemable noncontrolling interest of a certain brand we did not previously own. The amount was reclassified as a deferred acquisition contingent obligation (see Note 6).
(2) Changes in redemption value are the fair value changes from the acquisition date redemption value based on the options held by the minority interest holders, adjusted through Retained earnings.
The noncontrolling shareholders’ ability to exercise any such option right is subject to the satisfaction of certain conditions, including conditions requiring notice in advance of exercise and specific employment termination conditions. In addition, these rights cannot be exercised prior to specified staggered exercise dates. The exercise of these rights at their earliest contractual date would result in obligations of the Company to fund the related amounts between 2025 and 2031. It is not determinable, at this time, if or when the owners of these rights will exercise all or a portion of these rights.
These adjustments will not impact the calculation of earnings (loss) per share if the redemption values are less than the estimated fair values. As such, there is no related impact on the Company’s earnings (loss) per share calculations for the three and six months ended June 30, 2025 and 2024.
10. Commitments, Contingencies, and Guarantees
Legal Proceedings. The Company’s operating entities are involved in legal proceedings and regulatory inquiries of various types. While any litigation or investigation contains an element of uncertainty, the Company has no reason to believe that the outcome of such proceedings or claims will have a material adverse effect on the financial condition and results of operations of the Company.
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Guarantees. Generally, the Company has indemnified the purchasers of certain assets in the event that a third party asserts a claim against the purchaser that relates to a liability retained by the Company. These types of indemnification guarantees typically extend for a number of years. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying Unaudited Consolidated Financial Statements with respect to these indemnification guarantees. The Company continues to monitor the conditions that are subject to guarantees and indemnifications to identify whether it is probable that a loss has occurred and would recognize any such losses under any guarantees or indemnifications in the period when those losses are probable and estimable.
Commitments. In the ordinary course of business, the Company enters into certain commitments. The following details the significant commitments of the Company at June 30, 2025:
The Company had $15.3 million of undrawn letters of credit outstanding. See Note 8 of the Notes included herein for additional information.
The Company entered into two operating leases for which the commencement date has not yet occurred. See Note 7 of the Notes included herein for additional information.
The Company enters into long-term, non-cancellable contracts with partner associations that include revenue or profit-sharing commitments related to the provision of its services. These contracts may also include provisions that require the partner associations to meet certain performance targets prior to any obligation to the Company. At June 30, 2025, the Company estimates its future minimum commitments under these non-cancellable agreements to be $5.0 million for the remainder of 2025, $5.1 million, $4.0 million, $3.0 million, $2.8 million and $1.0 million for 2026, 2027, 2028, 2029 and 2030, respectively.
The Company is party to a long-term, non-cancellable contract with a certain vendor for cloud services that requires the Company to commit to minimum spending over the contract term. At June 30, 2025, the Company estimates its future minimum commitments under this agreement to be $7.9 million for the remainder of 2025 and $8.7 million, $10.4 million, $12.7 million and $15.3 million for 2026, 2027, 2028 and 2029, respectively.
The Company is party to a long-term, non-cancellable contract with a certain vendor for a software license agreement that requires the Company to commit to minimum spending over the contract term. At June 30, 2025, the Company estimates its future minimum commitments under this agreement to be $7.2 million for the remainder of 2025 and $28.5 million and $21.8 million for 2026 and 2027, respectively.
11. Share Capital
The authorized and outstanding share capital of the Company is below.
Class A Common Stock
There are 1.0 billion shares of Class A Common Stock authorized, of which 261.2 million shares were issued and outstanding as of June 30, 2025. Each share of Class A Common Stock carries one vote and represents an economic interest in the Company.
Class C Common Stock
On April 4, 2025, Stagwell Media exercised in full its right to exchange all of its 151,648,741 shares of Class C Common Stock for an equal number of newly issued shares of Class A Common Stock. Following the Class C Exchange, the Company no longer has any shares of Class C Common Stock outstanding as of June 30, 2025.
Class A Common Stock Repurchases
The Company may repurchase up to an aggregate of $375 million of shares of our outstanding Class A Common Stock under its stock repurchase program (the “Repurchase Program”). The Repurchase Program will expire on November 6, 2027.
Under the Repurchase Program, share repurchases may be made at our discretion from time to time in open market transactions at prevailing market prices, including through trading plans that may be adopted in accordance with Rule 10b5-1 of the Exchange Act, as amended, in privately negotiated transactions, or through other means. The timing and number of shares repurchased under the Repurchase Program will depend on a variety of factors, including the performance of our stock price, general market and economic conditions, regulatory requirements, the availability of funds, and other considerations we deem relevant. The Repurchase Program may be suspended, modified, or discontinued at any time without prior notice. Our Board of Directors will review the Repurchase Program periodically and may authorize adjustments of its terms.
During the six months ended June 30, 2025, 10.6 million shares of Class A Common Stock were repurchased pursuant to the Repurchase Program at an average price of $5.05 per share, for an aggregate value, excluding fees, of $53.3 million.
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The remaining value of shares of Class A Common Stock permitted to be repurchased under the Repurchase Program was $116.4 million as of June 30, 2025.
12. Fair Value Measurements
A fair value measurement assumes a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability.
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. The hierarchy for observable and unobservable inputs used to measure fair value into three broad levels are described below:
•Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.
•Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.
•Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.
Financial Instruments that are not Measured at Fair Value on a Recurring Basis
The following table presents certain information for our financial liability that is not measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:

| June 30, 2025 |  | December 31, 2024
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
| (dollars in thousands)
5.625% Notes | $ | 1,100,000 |  |  | $ | 1,054,394 |  |  | $ | 1,100,000 |  |  | $ | 1,048,311 |

The fair value of this instrument is based on quoted market prices in markets that are not active. Therefore, this debt is classified as Level 2 within the fair value hierarchy.
Financial Instruments Measured at Fair Value on a Recurring Basis
Contingent deferred acquisition consideration (Level 3 fair value measurement) is initially recorded at the acquisition date fair value and adjusted at each reporting period. The estimated liability is determined in accordance with models of each business’ future performance, including revenue growth and free cash flows. These models are dependent upon significant assumptions, such as the growth rate of the earnings of the relevant subsidiary during the contractual period and the discount rate. These growth rates are consistent with the Company’s long-term forecasts. As of June 30, 2025, the discount rate used to measure these liabilities ranged from 4.7% to 7.9%.
As these estimates require the use of assumptions about future performance, which are uncertain at the time of estimation, the fair value measurements presented on the Unaudited Consolidated Balance Sheets are subject to uncertainty.
See Note 6 of the Notes included herein for additional information regarding contingent deferred acquisition consideration.
As of June 30, 2025, and December 31, 2024, the carrying amount of the Company’s financial instruments, including cash, cash equivalents, accounts receivable and accounts payable, approximated fair value because of their short-term maturity.
Non-financial Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis
Certain non-financial assets are measured at fair value on a nonrecurring basis, primarily goodwill, intangible assets (Level 3 fair value measurements) and right-of-use lease assets (Level 2 fair value measurement). Accordingly, these assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment.
See Note 7 of the Notes included herein for additional information on right-of-use lease assets.
13. Supplemental Information
Stock-Based Awards
Stock-based compensation recognized for awards authorized under the Company’s employee stock incentive plans during the three and six months ended June 30, 2025 was $11.7 million and $23.4 million, respectively, and $6.3 million and $19.1 million during the three and six months ended June 30, 2024, respectively. This was included as a component of stock-based compensation in Office and general expenses and Cost of services within the Unaudited Consolidated Statements of Operations.
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Certain of the Company’s subsidiaries grant awards to their employees providing them with an equity interest in the respective subsidiary (the “profits interests awards”). The profits interests awards generally provide the employee with the right, but not the obligation, to sell their profits interest in the subsidiary to the Company based on a performance-based formula and, in certain cases, receive a profit share distribution. The profits interests awards are primarily settled in cash, with certain awards having stock-settlement provisions at the Company’s discretion. The corresponding liability associated with these profits interests awards was $21.4 million and $18.5 million as of June 30, 2025 and December 31, 2024, respectively, and was included as a component of Accruals and other liabilities and Other Liabilities on the Unaudited Consolidated Balance Sheets. The change in the fair value of these awards resulted in an increase in stock-based compensation for the three and six months ended June 30, 2025 of $8.3 million and $8.0 million, respectively. The change in the fair value of these awards resulted in a decrease in stock-based compensation for the three and six months ended June 30, 2024 of $2.7 million and $1.0 million, respectively. This was included as a component of stock-based compensation in Cost of services within the Unaudited Consolidated Statements of Operations.
Transfer of Accounts Receivable
The Company transfers certain of its trade receivable assets to third parties under certain agreements. Per the terms of these agreements, the Company surrenders control over its trade receivables upon transfer.
The trade receivables transferred to the third parties were $114.3 million and $243.5 million for the three and six months ended June 30, 2025, respectively, and $72.0 million and $141.7 million for the three and six months ended June 30, 2024, respectively. The amount collected and due to the third parties under these arrangements was $8.6 million as of June 30, 2025 and $19.5 million as of December 31, 2024. Fees for these arrangements were recorded in Office and general expenses in the Unaudited Consolidated Statements of Operations and totaled $1.3 million and $2.8 million for the three and six months ended June 30, 2025, respectively, and $1.0 million and $1.9 million for the three and six months ended June 30, 2024, respectively.
14. Income Taxes
Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in interim periods.
The Company had an income tax expense for the three months ended June 30, 2025 of $2.7 million (on a pre-tax loss of $2.0 million resulting in an effective tax rate of (134.9)%) primarily due to the tax benefit of the small pre-tax loss being more than offset by the current losses subject to valuation allowance, withholding taxes recorded in the period, and a shortfall in deductions for share based compensation expense vested during the period.
The Company had an income tax expense for the six months ended June 30, 2025 of $4.4 million (on a pre-tax loss of $5.6 million resulting in an effective tax rate of (78.7)%) primarily due to the tax benefit of the pre-tax loss being more than offset by the current losses subject to valuation allowance, withholding taxes recorded in the period, and a shortfall in deductions for share based compensation expense vested during the period.
The Company had income tax expense for the three months ended June 30, 2024 of $1.2 million (on pre-tax loss of $2.8 million resulting in an effective tax rate of (41.8)%) primarily due to the tax benefit of the small pre-tax loss and a small windfall in deductions for share based compensation expense vested during the period, being more than offset by the current losses subject to valuation allowance.
The Company had income tax expense for the six months ended June 30, 2024 of $3.8 million (on pre-tax loss of $1.4 million resulting in an effective tax rate of (263.3)%) primarily due to the tax benefit of the nominal pre-tax profit being more than offset by the current losses subject to valuation allowance and a shortfall in deductions for share based compensation expense vested during the period.
Subsequent to the end of the second quarter of 2025, on July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted by the U.S. government. OBBBA amends U.S. tax law including provision related to bonus depreciation, research and development, and interest deduction limitations. The Company is evaluating the impact of the OBBBA on its consolidated financial statements. We do not expect the OBBBA to have a material impact on our estimated annual effective tax rate in 2025.
The OECD (Organisation for Economic Co-operation and Development) has proposed a global minimum tax of 15% of reported profits (Pillar 2) that has been agreed upon in principle by over 140 countries. Many countries have taken steps to incorporate Pillar 2 model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2. Accordingly, we have included an estimate of the impact of Pillar 2 in our estimated annual effective tax rate and continue to evaluate the potential consequences of Pillar 2 on our longer-term financial position.
On June 28, 2025, The U.S. Treasury Department announced that an understanding of accepted principles had been reached with other members of the G-7 that would implement a “side-by-side” system that would fully exclude U.S. parented
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groups from the Income Inclusion Rule (“IIR”) and Undertaxed Profits Rule (“UTPR”) in respect of both their domestic and foreign profits in recognition of the existing U.S. minimum tax rules to which such U.S. parented groups are subject. If this understanding is implemented for some or all jurisdictions that have enacted Pillar 2 rules, we will update our estimate of the impact of Pillar 2 in our estimated annual effective tax rate
Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our unaudited consolidated financial statements.
Tax Receivables Agreement
In connection with the TRA, the Company is required to make cash payments to Stagwell Media equal to 85% of certain U.S. federal, state and local income tax or franchise tax savings, if any, that we actually realize, or in certain circumstances are deemed to realize, as a result of (i) increases in the tax basis of OpCo’s assets resulting from exchanges of Paired Units (defined in Note 11) for shares of Class A Common Stock or cash, as applicable, and (ii) certain other tax benefits related to us making payments under the TRA. The TRA liability is an estimate and actual amounts payable under the TRA could differ from this estimate.
Effective April 4, 2025, all Paired Units were exchanged for Class A Shares in the Class C Exchange (see Note 11). As a result of the Class C Exchange, the Company recorded an increase to deferred tax asset of $204.7 million and an increase to TRA liability of $200.1 million. As of June 30, 2025, the Company has recorded a TRA liability of $225.7 million, and an associated deferred tax asset, net of amortization, of $259.2 million, in connection with the exchange of Paired Units and the projected obligations under the TRA.
15. Related Party Transactions
In the ordinary course of business, the Company enters into transactions with related parties, including its affiliates. The transactions may range in the nature and value of services underlying the arrangements. The following table presents significant related party transactions where a related party received services from the Company:

|  | Revenue |  | Due From Related Party
|  | Three Months Ended June 30, |  | Six Months Ended June 30, |  | June 30, 2025 |  | December 31, 2024
Services |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (dollars in thousands)
Marketing and advertising services (1) |  | $ | — |  |  | $ | 831 |  |  | $ | — |  |  | $ | 941 |  |  | $ | — |  |  | $ | — |
Marketing and website development services (2) |  | 689 |  |  | 514 |  |  | 1,452 |  |  | 1,269 |  |  | 361 |  |  | 601 |
Polling services (3) |  | 130 |  |  | 363 |  |  | 130 |  |  | 823 |  |  | — |  |  | 192 |
Polling and public relation services (4) |  | 161 |  |  | 194 |  |  | 267 |  |  | 298 |  |  | 6 |  |  | 55 |
Marketing and advertising services (5) |  | 1,261 |  |  | 341 |  |  | 1,884 |  |  | 341 |  |  | — |  |  | — |
Total |  | $ | 2,241 |  |  | $ | 2,243 |  |  | $ | 3,733 |  |  | $ | 3,672 |  |  | $ | 367 |  |  | $ | 848 |

(1) Brands’ partners and executives either hold a key leadership position in or are on the board of directors of the client.
(2) A member of the Company’s Board is the managing director of a client.
(3) A family member of the Company’s Chief Executive Officer holds a key leadership position in the client.
(4) A family member of the Company’s President holds a key leadership position in the client.
(5) Founder of the client has significant interest in the Company.
In 2022, the Company made loans to three employees of a subsidiary each in the amount of $0.9 million, together with interest on the unpaid principal balance at a fixed interest rate equal to 3.5% per annum, compounding quarterly. The cash from the loan was used by the employees to purchase the noncontrolling interest of 13.3% in TMA Direct. As of June 30, 2025, and December 31, 2024, $2.7 million and $2.7 million, respectively, was due from the related parties and included in Other current assets and Other assets, respectively, on the Unaudited Consolidated Balance Sheets.
16. Segment Information
The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information, and is (iii) regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is Mark Penn, Chief Executive Officer and Chairman, to make decisions regarding resource
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allocation for the segment and assess its performance. Once operating segments are identified, the Company performs an analysis to determine if aggregation of operating segments is applicable. This determination is based upon a quantitative analysis of the expected and historic average long-term profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics. All segments follow the same basis of presentation and accounting policies as those described throughout the Notes included herein.
The CODM uses Adjusted EBITDA as a key metric, to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions. Adjusted EBITDA is defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items primarily includes restructuring, certain system implementation and acquisition-related expenses.
The Company has three reportable segments as follows: “Integrated Agencies Network,” “Brand Performance Network,” and the “Communications Network.” The composition of these segments are as follows:
•The Integrated Agencies Network includes five operating segments: the Anomaly Alliance, Constellation, the Doner Partner Network, Code and Theory Network, and National Research Group. The operating segments offer an array of complementary services spanning our core capabilities of Digital Transformation, Performance Media & Data, Consumer Insights & Strategy, Stagwell Marketing Cloud Group and Creativity & Communications. The Brands included in the operating segments that comprise the Integrated Agencies Network reportable segment includes: Anomaly Alliance (Anomaly, What’s Next Partners), Constellation (72andSunny, Crispin LLC, Colle McVoy, Hunter, Redscout, Team Enterprises, Harris Insights, Movers and Shakers, Team Epiphany and Jetfuel), the Doner Partner Network (Doner, KWT Global, Harris X, Veritas, Doner North and Yamamoto), Code and Theory Network (Code and Theory, Instrument, Left Field Labs and Create), and National Research Group.
These operating segments share similar characteristics related to (i) the nature of their services; (ii) the type of clients and the methods used to provide services; and (iii) the extent to which they may be impacted by global economic and geopolitical risks. In addition, these operating segments may occasionally compete with each other for new business or have business move between them.
•The Brand Performance Network (“BPN”) comprises a single operating segment. BPN includes a unified media and data management structure with omnichannel media placement, creative media consulting, influencer and business-to-business marketing capabilities. Our Brands in this segment aim to provide scaled creative performance through developing and executing sophisticated omnichannel campaign strategies leveraging significant amounts of consumer data. BPN’s Brands provide media solutions such as audience analysis, media planning, and buying across a range of digital and traditional platforms (out-of-home, paid search, social media, lead generation, programmatic, television, broadcast, among others) and includes multichannel Brands Assembly, CPB International, Stagwell Production, Vitro, Forsman & Bodenfors, Goodstuff, Bruce Mau, ADK, digital creative & transformation consultancy Gale, B2B specialist Multiview, CX specialists Kenna, and travel media experts Ink.
•The Communications Network reportable segment comprises a single operating segment, our specialist network that provides advocacy, strategic corporate communications, investor relations, public relations, online fundraising and other services to both corporations and political and advocacy organizations and includes Allison, SKDK, Targeted Victory, and Consulum.
The Company combines and discloses operating segments that do not meet the aggregation criteria and includes the elimination of certain intercompany services and revenue, within “All Other.” All Other consists of the Company’s “software as a service” (“SaaS”) and “data as a service” (“DaaS”) technology tools.
The Company reports corporate expenses as “Corporate.” Corporate consists of corporate office expenses incurred in connection with the strategic resources provided to the operating segments, as well as certain other centrally managed expenses that are not fully allocated to the operating segments. These office and general expenses include (i) salaries and related expenses for corporate office employees, including employees dedicated to supporting the operating segments, (ii) occupancy expenses relating to properties occupied by all corporate office employees, (iii) other office and general expenses including professional fees for the financial statement audits and other public company costs, and (iv) certain other professional fees managed by the corporate office.
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|  | Three Months Ended June 30, 2025
|  | Integrated Agencies Network |  | Brand Performance Network |  | Communications Network |  | Total
|  | (dollars in thousands)
Revenue (1) |  | $ | 406,190 |  |  | $ | 170,099 |  |  | $ | 106,128 |  |  | $ | 682,417 |
Billable costs |  | 61,302 |  |  | 15,231 |  |  | 31,786 |  |  | 108,319 |
Staff costs |  | 205,975 |  |  | 100,260 |  |  | 44,812 |  |  | 351,047 |
Administrative costs |  | 34,094 |  |  | 25,584 |  |  | 9,550 |  |  | 69,228 |
Unbillable and other costs * |  | 27,309 |  |  | 13,443 |  |  | 625 |  |  | 41,377 |
Adjusted EBITDA |  | 77,510 |  |  | 15,581 |  |  | 19,355 |  |  | 112,446 |
Adjusted EBITDA - All Other |  |  |  |  |  |  |  | (6,945) |
Adjusted EBITDA - Corporate |  |  |  |  |  |  |  | (12,646) |
Total Consolidated Adjusted EBITDA |  |  |  |  |  |  |  | 92,855 |
Stock-based compensation |  |  |  |  |  |  |  | 19,954 |
Depreciation and amortization |  |  |  |  |  |  |  | 41,369 |
Deferred acquisition consideration |  |  |  |  |  |  |  | (3,220) |
Other items, net |  |  |  |  |  |  |  | 11,580 |
Operating Income |  |  |  |  |  |  |  | 23,172 |
Other income (expenses): |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  | (23,455) |
Foreign exchange, net |  |  |  |  |  |  |  | (1,338) |
Other, net |  |  |  |  |  |  |  | (360) |
|  |  |  |  |  |  |  | (25,153) |
Loss before income taxes and equity in earnings of non-consolidated affiliates |  | (1,981) |
Income tax expense |  |  |  |  |  |  |  | 2,673 |
Loss before equity in earnings of non-consolidated affiliates |  | (4,654) |
Equity in income of non-consolidated affiliates |  | 20 |
Net loss |  |  |  |  |  |  |  | (4,634) |
Net income attributable to noncontrolling and redeemable noncontrolling interests |  | (627) |
Net loss attributable to Stagwell Inc. common shareholders |  | $ | (5,261) |

(1) Total consolidated revenue of $706,818 also includes revenue of $24,401 associated with operating segments that do not meet the aggregation criteria and elimination of certain intercompany service and revenue.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, and panels and survey costs; and also includes travel related expenses associated with contract fulfillment.
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|  | Six Months Ended June 30, 2025
|  | Integrated Agencies Network |  | Brand Performance Network |  | Communications Network |  | Total
|  | (dollars in thousands)
Revenue (1) |  | $ | 783,544 |  |  | $ | 332,317 |  |  | $ | 193,756 |  |  | $ | 1,309,617 |
Billable costs |  | 112,862 |  |  | 30,591 |  |  | 52,416 |  |  | 195,869 |
Staff costs |  | 405,857 |  |  | 196,710 |  |  | 89,389 |  |  | 691,956 |
Administrative costs |  | 65,738 |  |  | 48,991 |  |  | 19,724 |  |  | 134,453 |
Unbillable and other costs * |  | 44,408 |  |  | 28,901 |  |  | 1,115 |  |  | 74,424 |
Adjusted EBITDA |  | 154,679 |  |  | 27,124 |  |  | 31,112 |  |  | 212,915 |
Adjusted EBITDA - All Other |  |  |  |  |  |  |  | (13,275) |
Adjusted EBITDA - Corporate |  |  |  |  |  |  |  | (26,203) |
Total Consolidated Adjusted EBITDA |  |  |  |  |  |  |  | 173,437 |
Stock-based compensation |  |  |  |  |  |  |  | 31,497 |
Depreciation and amortization |  |  |  |  |  |  |  | 83,375 |
Deferred acquisition consideration |  |  |  |  |  |  |  | 3,437 |
Other items, net |  |  |  |  |  |  |  | 13,671 |
Operating Income |  |  |  |  |  |  |  | 41,457 |
Other income (expenses): |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  | (46,811) |
Foreign exchange, net |  |  |  |  |  |  |  | (118) |
Other, net |  |  |  |  |  |  |  | (111) |
|  |  |  |  |  |  |  | (47,040) |
Loss before income taxes and equity in earnings of non-consolidated affiliates |  | (5,583) |
Income tax expense |  |  |  |  |  |  |  | 4,395 |
Loss before equity in earnings of non-consolidated affiliates |  | (9,978) |
Equity in income of non-consolidated affiliates |  | 19 |
Net loss |  |  |  |  |  |  |  | (9,959) |
Net loss attributable to noncontrolling and redeemable noncontrolling interests |  | 1,781 |
Net loss attributable to Stagwell Inc. common shareholders |  | $ | (8,178) |

(1) Total consolidated revenue of $1,358,558 also includes revenue of $48,941 associated with operating segments that do not meet the aggregation criteria and elimination of certain intercompany service and revenue.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, and panels and survey costs; and also includes travel related expenses associated with contract fulfillment.
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|  | Three Months Ended June 30, 2024
|  | Integrated Agencies Network |  | Brand Performance Network |  | Communications Network |  | Total
|  | (dollars in thousands)
Revenue (1) |  | $ | 385,133 |  |  | $ | 177,245 |  |  | $ | 105,570 |  |  | $ | 667,948 |
Billable costs |  | 63,263 |  |  | 20,137 |  |  | 33,177 |  |  | 116,577 |
Staff costs |  | 195,193 |  |  | 99,264 |  |  | 41,131 |  |  | 335,588 |
Administrative costs |  | 33,902 |  |  | 24,525 |  |  | 8,379 |  |  | 66,806 |
Unbillable and other costs * |  | 24,780 |  |  | 15,613 |  |  | 710 |  |  | 41,103 |
Adjusted EBITDA |  | 67,995 |  |  | 17,706 |  |  | 22,173 |  |  | 107,874 |
Adjusted EBITDA - All Other |  |  |  |  |  |  |  | (3,149) |
Adjusted EBITDA - Corporate |  |  |  |  |  |  |  | (18,622) |
Total Consolidated Adjusted EBITDA |  |  |  |  |  |  |  | 86,103 |
Stock-based compensation |  |  |  |  |  |  |  | 5,875 |
Depreciation and amortization |  |  |  |  |  |  |  | 42,001 |
Deferred acquisition consideration |  |  |  |  |  |  |  | 7,236 |
Impairment and other losses |  |  |  |  |  |  |  | 215 |
Other items, net |  |  |  |  |  |  |  | 8,869 |
Operating Income |  |  |  |  |  |  |  | 21,907 |
Interest expense, net |  |  |  |  |  |  |  | (23,533) |
Foreign exchange, net |  |  |  |  |  |  |  | (1,355) |
Other, net |  |  |  |  |  |  |  | 193 |
|  |  |  |  |  |  |  | (24,695) |
Loss before income taxes and equity in earnings of non-consolidated affiliates |  | (2,788) |
Income tax expense |  | 1,165 |
Loss before equity in earnings of non-consolidated affiliates |  | (3,953) |
Equity in loss of non-consolidated affiliates |  | (1) |
Net loss |  | (3,954) |
Net loss attributable to noncontrolling and redeemable noncontrolling interests |  | 989 |
Net loss attributable to Stagwell Inc. common shareholders |  | $ | (2,965) |

(1) Total consolidated revenue of $671,168 also includes revenue of $3,220 associated with operating segments that do not meet the aggregation criteria and elimination of certain intercompany service and revenue.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, and panels and survey costs; and also includes travel related expenses associated with contract fulfillment.
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|  | Six Months Ended June 30, 2024
|  | Integrated Agencies Network |  | Brand Performance Network |  | Communications Network |  | Total
|  | (dollars in thousands)
Revenue (1) |  | $ | 737,852 |  |  | $ | 391,207 |  |  | $ | 199,316 |  |  | $ | 1,328,375 |
Billable costs |  | 123,210 |  |  | 71,537 |  |  | 59,435 |  |  | 254,182 |
Staff costs |  | 381,727 |  |  | 197,695 |  |  | 80,395 |  |  | 659,817 |
Administrative costs |  | 64,504 |  |  | 46,596 |  |  | 17,083 |  |  | 128,183 |
Unbillable and other costs * |  | 40,308 |  |  | 30,179 |  |  | 846 |  |  | 71,333 |
Adjusted EBITDA |  | 128,103 |  |  | 45,200 |  |  | 41,557 |  |  | 214,860 |
Adjusted EBITDA - All Other |  |  |  |  |  |  |  | (7,135) |
Adjusted EBITDA - Corporate |  |  |  |  |  |  |  | (31,306) |
Total Consolidated Adjusted EBITDA |  |  |  |  |  |  |  | 176,419 |
Stock-based compensation |  |  |  |  |  |  |  | 21,991 |
Depreciation and amortization |  |  |  |  |  |  |  | 76,837 |
Deferred acquisition consideration |  |  |  |  |  |  |  | 7,390 |
Impairment and other losses |  |  |  |  |  |  |  | 1,715 |
Other items, net |  |  |  |  |  |  |  | 20,725 |
Operating Income |  |  |  |  |  |  |  | 47,761 |
Other income (expenses): |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  |  |  |  | (44,498) |
Foreign exchange, net |  |  |  |  |  |  |  | (3,613) |
Other, net |  |  |  |  |  |  |  | (1,074) |
|  |  |  |  |  |  |  | (49,185) |
Loss before income taxes and equity in earnings of non-consolidated affiliates |  | (1,424) |
Income tax expense |  | 3,750 |
Loss before equity in earnings of non-consolidated affiliates |  | (5,174) |
Equity in income of non-consolidated affiliates |  | 507 |
Net loss |  | (4,667) |
Net loss attributable to noncontrolling and redeemable noncontrolling interests |  | 420 |
Net loss attributable to Stagwell Inc. common shareholders |  | $ | (4,247) |

(1) Total consolidated revenue of $1,341,227 also includes revenue of $12,852 associated with operating segments that do not meet the aggregation criteria and elimination of certain intercompany service and revenue.
*For each reportable segment, Unbillable and other costs includes costs to fulfill customer contract requirements such as research and subscription related costs, audience measurement, data and analytics, and panels and survey costs; and also includes travel related expenses associated with contract fulfillment.
The Company’s long-lived assets (i.e., Right-of-use lease assets-operating leases and Fixed asset, net) was $285.0 million ($214.9 million in the United States and $70.1 million in all other countries) as of June 30, 2025 and $292.1 million ($231.9 million in the United States and $60.2 million in all other countries) as of December 31, 2024.
The Company’s CODM does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.
See Note 4 of the Notes included herein for a summary of the Company’s revenue by geographic region for the three and six months ended June 30, 2025 and 2024.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Th e following discussion and analysis are based on and should be read in conjunction with our Unaudited Consolidated Financial Statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q for the period ended June 30, 2025 (the “Form 10-Q”). The following discussion and analysis contain forward-looking statements and should be read in conjunction with the disclosures and information contained and referenced under the captions “Forward-Looking Statements” and “Risk Factors” in this Form 10-Q. The following discussion and analysis also include a discussion of certain non-GAAP financial measures. A description of the non-GAAP financial measures discussed in this section and reconciliations to the comparable GAAP measures are below.
In this section, the terms “Stagwell,” “we,” “us,” “our” and the “Company” refer to Stagwell Inc. and its direct and indirect subsidiaries. References to a “fiscal year” mean the Company’s year commencing on January 1 of that year and ending December 31 of that year (e.g., fiscal 2025 means the period beginning January 1, 2025, and ending December 31, 2025).
Executive Summary
Overview
Stagwell conducts its business through its networks, which provide marketing and business solutions that realize the potential of combining data and creativity. Stagwell’s strategy is to build, grow, and acquire market-leading businesses that deliver the modern suite of services that marketers need to thrive in a rapidly evolving business environment. We believe Stagwell’s differentiation lies in its creative roots and proven entrepreneurial leaders, which together with innovations in technology and data, bring transformational marketing, activation, communications and strategic consulting services to clients. Stagwell leverages its range of services in an integrated manner, offering strategic, creative and innovative solutions that are technologically forward and media-agnostic. The Company’s strategy is intended to challenge the industry status quo, realize returns on investment, and drive transformative growth and business performance for its clients and stakeholders.
Stagwell manages its business by monitoring several financial and non-financial performance indicators. The key indicators that we focus on are revenue, operating expenses, capital expenditures, net income (loss), net income (loss) attributable to Stagwell Inc. common shareholders, net income (loss) per share and the non-GAAP financial measures described below. Revenue growth is analyzed by reviewing a mix of measurements, including (i) growth by major geographic location, (ii) growth from existing clients and the addition of new clients, (iii) growth by principal capability, (iv) growth from currency changes, and (v) growth from acquisitions. In addition to monitoring the foregoing financial indicators, the Company assesses and monitors several non-financial performance indicators relating to the business performance of our networks. These indicators may include a network’s recent new client win/loss record; the depth and scope of a pipeline of potential new client account activity; the overall quality of the services provided to clients; and the relative strength of the network’s next generation team that is in place as part of a potential succession plan to succeed the current senior executive team.
Significant Factors Affecting our Business and Results of Operations
The most significant factors affecting our business and results of operations include national, regional, and local economic conditions, our clients’ profitability, mergers and acquisitions of our clients, changes in top management of our clients and our ability to retain and attract key employees. New business wins and client losses occur due to a variety of factors. We believe the two most significant factors are (i) our clients’ desire to change marketing communication firms, and (ii) the digital and data-driven products that our portfolio of marketing services firms, which we refer to as “Brands,” offer. A client may choose to change marketing communication firms for several reasons, such as a change in leadership where new management wants to retain a Brand that it may have previously worked with. In addition, if the client is merged or acquired by another company, the marketing communication firm is often changed. Clients also change firms as a result of the firm’s failure to meet marketing performance targets or other expectations in client service delivery.
Seasonality
Historically, we typically generate the highest quarterly revenue during the fourth quarter of each year. In addition, within our Communications Network, client concentration increases during election years due to the cyclical nature of our advocacy Brands. The highest volumes of retail related consumer marketing increase with the back-to-school season through the end of the holiday season.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). In addition, the Company has included non-GAAP financial measures and ratios, which management uses to
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operate the business, which it believes provide useful supplemental information to both management and readers of this report in making period-to-period comparisons in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by GAAP and should not be construed as an alternative to other titled measures determined in accordance with GAAP. The non-GAAP financial measures included are “net revenue,” “organic net revenue growth (decline),” “Adjusted EBITDA,” and “Adjusted Diluted EPS.”
“Net revenue” refers to revenue excluding billable costs. The Company believes billable costs and their fluctuations are not indicative of the operating performance of its underlying business.
“Organic net revenue growth (decline)” reflects the year-over-year change in the Company’s reported net revenue attributable to the Company’s management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company’s reported net revenue.
The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity’s prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations.
The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.
“Adjusted EBITDA” is defined as Net income (loss) attributable to Stagwell Inc. common shareholders excluding non-operating income or expense to achieve operating income (loss), plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items primarily includes restructuring, certain system implementation and acquisition-related expenses. Adjusted EBITDA for our reportable segments is reconciled to Operating Income (Loss), as Net Income (Loss) is not a relevant reportable segment financial metric.
“Adjusted Diluted EPS” is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income (loss) attributable to Class C shareholders, excluding the impact of amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items (as defined above), based on total consolidated amounts, then allocated to Stagwell Inc. common shareholders and Class C shareholders, based on their respective income allocation percentage using a normalized effective income tax rate divided by (ii) (a) the weighted average number of common shares outstanding plus (b) the weighted average number of outstanding shares of Class C Common Stock. The diluted weighted average shares outstanding include shares of Class C Common Stock as if converted to shares of Class A Common Stock to calculate Adjusted Diluted EPS.
All amounts are in U.S. dollars unless otherwise stated. Amounts reported in millions herein are computed based on the amounts in thousands. As a result, the sum of the components, and related calculations, reported in millions may not equal the total amounts due to rounding.
The percentage changes included in the tables in Item 2 herein that are not considered meaningful are presented as “NM.”
Segments
The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information, and is (iii) regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is Mark Penn, Chief Executive Officer and Chairman, to make decisions regarding resource allocation for the segment and assess its performance. Once operating segments are identified, the Company performs an analysis to determine if aggregation of operating segments is applicable. This determination is based upon a quantitative analysis of the expected and historic average long-term profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics. All segments follow the same basis of presentation and accounting policies as those described throughout the Notes included herein.
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The CODM uses Adjusted EBITDA (as defined above) as a key metric, to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions.
The Company has three reportable segments as follows: “Integrated Agencies Network,” “Brand Performance Network” and the “Communications Network.” The composition of these segments are as follows:
•The Integrated Agencies Network includes five operating segments: the Anomaly Alliance, Constellation, the Doner Partner Network, Code and Theory Network, and National Research Group. The operating segments offer an array of complementary services spanning our core capabilities of Digital Transformation, Performance Media & Data, Consumer Insights & Strategy, Stagwell Marketing Cloud Group and Creativity & Communications. The Brands included in the operating segments that comprise the Integrated Agencies Network reportable segment includes: Anomaly Alliance (Anomaly, What’s Next Partners), Constellation (72andSunny, Crispin LLC, Colle McVoy, Hunter, Redscout, Team Enterprises, Harris Insights, Movers and Shakers, Team Epiphany, and Jetfuel), the Doner Partner Network (Doner, KWT Global, Harris X, Veritas, Doner North, and Yamamoto), Code and Theory Network (Code and Theory, Instrument, Left Field Labs, and Create), and National Research Group.
These operating segments share similar characteristics related to (i) the nature of their services; (ii) the type of clients and the methods used to provide services; and (iii) the extent to which they may be impacted by global economic and geopolitical risks. In addition, these operating segments may occasionally compete with each other for new business or have business move between them.
•The Brand Performance Network (“BPN”) comprises a single operating segment. BPN includes a unified media and data management structure with omnichannel media placement, creative media consulting, influencer and business-to-business marketing capabilities. Our Brands in this segment aim to provide scaled creative performance through developing and executing sophisticated omnichannel campaign strategies leveraging significant amounts of consumer data. BPN’s Brands provide media solutions such as audience analysis, media planning, and buying across a range of digital and traditional platforms (out-of-home, paid search, social media, lead generation, programmatic, television, broadcast, among others) and includes multichannel Brands Assembly, CPB International, Stagwell Production, Vitro, Forsman & Bodenfors, Goodstuff, Bruce Mau, ADK, digital creative & transformation consultancy Gale, B2B specialist Multiview, CX specialists Kenna, and travel media experts Ink.
•The Communications Network reportable segment comprises a single operating segment, our specialist network that provides advocacy, strategic corporate communications, investor relations, public relations, online fundraising and other services to both corporations and political and advocacy organizations and includes Allison, SKDK, Targeted Victory, and Consulum.
The Company combines and discloses operating segments that do not meet the aggregation criteria and includes the elimination of certain intercompany services and revenue, within “All Other.” All Other consists of the Company’s “software as a service” (“SaaS”) and “data as a service” (“DaaS”) technology tools.
The Company reports corporate expenses as “Corporate.” Corporate consists of corporate office expenses incurred in connection with the strategic resources provided to the operating segments, as well as certain other centrally managed expenses that are not fully allocated to the operating segments. These office and general expenses include (i) salaries and related expenses for corporate office employees, including employees dedicated to supporting the operating segments, (ii) occupancy expenses relating to properties occupied by all corporate office employees, (iii) other office and general expenses including professional fees for the financial statement audits and other public company costs, and (iv) certain other professional fees managed by the corporate office.
The following discussion focuses on the operating performance of the Company for the three and six months ended June 30, 2025 and 2024 and the financial condition of the Company as of June 30, 2025.
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Results of Operations:

| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (dollars in thousands)
Revenue: |  |  |  |  |  |  |
Integrated Agencies Network | $ | 406,190 |  |  | $ | 385,133 |  |  | $ | 783,544 |  |  | $ | 737,852 |
Brand Performance Network | 170,099 |  |  | 177,245 |  |  | 332,317 |  |  | 391,207 |
Communications Network | 106,128 |  |  | 105,570 |  |  | 193,756 |  |  | 199,316 |
All Other | 24,401 |  |  | 3,220 |  |  | 48,941 |  |  | 12,852 |
Total Revenue | $ | 706,818 |  |  | $ | 671,168 |  |  | $ | 1,358,558 |  |  | $ | 1,341,227 |
Operating Income | $ | 23,172 |  |  | $ | 21,907 |  |  | $ | 41,457 |  |  | $ | 47,761 |
Other Income (Expenses): |  |  |  |  |  |  |
Interest expense, net | $ | (23,455) |  |  | $ | (23,533) |  |  | $ | (46,811) |  |  | $ | (44,498) |
Foreign exchange, net | (1,338) |  |  | (1,355) |  |  | (118) |  |  | (3,613) |
Other, net | (360) |  |  | 193 |  |  | (111) |  |  | (1,074) |
Loss before income taxes and equity in earnings of non-consolidated affiliates | (1,981) |  |  | (2,788) |  |  | (5,583) |  |  | (1,424) |
Income tax expense | 2,673 |  |  | 1,165 |  |  | 4,395 |  |  | 3,750 |
Loss before equity in earnings of non-consolidated affiliates | (4,654) |  |  | (3,953) |  |  | (9,978) |  |  | (5,174) |
Equity in income (loss) of non-consolidated affiliates | 20 |  |  | (1) |  |  | 19 |  |  | 507 |
Net loss | (4,634) |  |  | (3,954) |  |  | (9,959) |  |  | (4,667) |
Net (income) loss attributable to noncontrolling and redeemable noncontrolling interests | (627) |  |  | 989 |  |  | 1,781 |  |  | 420 |
Net loss attributable to Stagwell Inc. common shareholders | $ | (5,261) |  |  | $ | (2,965) |  |  | $ | (8,178) |  |  | $ | (4,247) |
Reconciliation to Adjusted EBITDA: |  |  |  |  |  |  |
Net loss attributable to Stagwell Inc. common shareholders | $ | (5,261) |  |  | $ | (2,965) |  |  | $ | (8,178) |  |  | $ | (4,247) |
Non-operating items (1) | 28,433 |  |  | 24,872 |  |  | 49,635 |  |  | 52,008 |
Operating income | 23,172 |  |  | 21,907 |  |  | 41,457 |  |  | 47,761 |
Depreciation and amortization | 41,369 |  |  | 42,001 |  |  | 83,375 |  |  | 76,837 |
Impairment and other losses | — |  |  | 215 |  |  | — |  |  | 1,715 |
Stock-based compensation | 19,954 |  |  | 5,875 |  |  | 31,497 |  |  | 21,991 |
Deferred acquisition consideration | (3,220) |  |  | 7,236 |  |  | 3,437 |  |  | 7,390 |
Other items, net | 11,580 |  |  | 8,869 |  |  | 13,671 |  |  | 20,725 |
Adjusted EBITDA | $ | 92,855 |  |  | $ | 86,103 |  |  | $ | 173,437 |  |  | $ | 176,419 |
(1) Non-operating items includes items within the Statements of Operations, below Operating Income, and above Net income (loss) attributable to Stagwell Inc. common shareholders.

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THREE MONTHS ENDED JUNE 30, 2025 COMPARED TO THREE MONTHS ENDED JUNE 30, 2024
Consolidated Results of Operations
The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  | Three Months Ended June 30, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 706,818 |  |  | $ | 671,168 |  |  | $ | 35,650 |  |  | 5.3 | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 459,216 |  |  | 438,912 |  |  | 20,304 |  |  | 4.6 | % |
Office and general expenses |  | 183,061 |  |  | 168,133 |  |  | 14,928 |  |  | 8.9 | % |
Depreciation and amortization |  | 41,369 |  |  | 42,001 |  |  | (632) |  |  | (1.5) | % |
Impairment and other losses |  | — |  |  | 215 |  |  | (215) |  |  | (100.0) | % |
|  | $ | 683,646 |  |  | $ | 649,261 |  |  | $ | 34,385 |  |  | 5.3 | % |
Operating Income |  | $ | 23,172 |  |  | $ | 21,907 |  |  | $ | 1,265 |  |  | 5.8 | % |

| Three Months Ended June 30, |
| 2025 |  | 2024 |  | Change |
| (dollars in thousands) |
|  |  |  |  | $ |  | % |
Net Revenue | $ | 598,129 |  |  | $ | 554,392 |  |  | $ | 43,737 |  |  | 7.9 | % |
Billable costs | 108,689 |  |  | 116,776 |  |  | (8,087) |  |  | (6.9) | % |
Revenue | 706,818 |  | 671,168 |  | 35,650 |  |  | 5.3 | % |
Billable costs | 108,689 |  |  | 116,776 |  |  | (8,087) |  |  | (6.9) | % |
Staff costs | 381,270 |  |  | 355,349 |  |  | 25,921 |  |  | 7.3 | % |
Administrative costs | 75,874 |  |  | 69,534 |  |  | 6,340 |  |  | 9.1 | % |
Unbillable and other costs, net | 48,130 |  |  | 43,406 |  |  | 4,724 |  |  | 10.9 | % |
Adjusted EBITDA | 92,855 |  |  | 86,103 |  |  | 6,752 |  |  | 7.8 | % |
Stock-based compensation | 19,954 |  |  | 5,875 |  |  | 14,079 |  |  | 239.6 | % |
Depreciation and amortization | 41,369 |  |  | 42,001 |  |  | (632) |  |  | (1.5) | % |
Deferred acquisition consideration | (3,220) |  |  | 7,236 |  |  | (10,456) |  |  | NM |
Impairment and other losses | — |  |  | 215 |  |  | (215) |  |  | (100.0) | % |
Other items, net | 11,580 |  |  | 8,869 |  |  | 2,711 |  |  | 30.6 | % |
Operating Income (1) | $ | 23,172 |  |  | $ | 21,907 |  |  | $ | 1,265 |  |  | 5.8 | % |
(1) See the Results of Operations section above for a reconciliation of Operating Income to Net income (loss) attributable to Stagwell Inc. common shareholders. |

Revenue
Revenue for the three months ended June 30, 2025 was $706.8 million, compared to $671.2 million for the three months ended June 30, 2024, an increase of $35.7 million.
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Net Revenue
The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Three Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Three Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Integrated Agencies Network | $321,870 |  | $744 |  | $9,037 |  | $13,237 |  | $23,018 |  | $344,888 |  | 4.1% |  | 7.2%
Brand Performance Network | 157,108 |  | 2,289 |  | 142 |  | (4,671) |  | (2,240) |  | 154,868 |  | (3.0)% |  | (1.4)%
Communications Network | 72,393 |  | 144 |  | 10,855 |  | (9,050) |  | 1,949 |  | 74,342 |  | (12.5)% |  | 2.7%
All Other | 3,021 |  | 74 |  | 17,118 |  | 3,818 |  | 21,010 |  | 24,031 |  | 126.4% |  | 695.5%
| $554,392 |  | $3,251 |  | $37,152 |  | $3,334 |  | $43,737 |  | $598,129 |  | 0.6% |  | 7.9%
Component % change |  |  | 0.6% |  | 6.7% |  | 0.6% |  | 7.9% |  |  |  |  |  |

For the three months ended June 30, 2025, organic net revenue increased $3.3 million, or 0.6%. The increase was primarily attributable to new wins and increased spending by clients in the automotive and retail sectors, partially offset by losses and a decrease in client spending due to budget cuts in the consumer products sectors. The increase in net acquisitions (divestitures) was impacted by the acquisitions of JetFuel Studio LLC and Powered by JetFuel LLC (“Jetfuel”), Create Group Holding Limited (“Create”), Consulum (Cayman) Limited (“Consulum”), L.D.R.S. Group Ltd. (“Leaders”), and UNICEPTA Holding GmbH (“Unicepta”).
The geographic mix in net revenues for the three months ended June 30, 2025 and 2024 is as follows:

| Three Months Ended June 30,
| 2025 |  | 2024
| (dollars in thousands)
United States | $ | 464,882 |  |  | $ | 446,326 |
United Kingdom | 36,555 |  |  | 39,033 |
Other | 96,692 |  |  | 69,033 |
Total | $ | 598,129 |  |  | $ | 554,392 |

Operating Income
Operating Income for the three months ended June 30, 2025 was $23.2 million, compared to Operating Income of $21.9 million for the three months ended June 30, 2024, representing an increase of $1.3 million. The change in Operating Income was primarily attributable to an increase in Revenue, partially offset by an increase in Cost of services and Office and general expenses.
The increase in Cost of services was primarily attributable to higher staff costs due to the inclusion of costs from acquired entities, and higher stock-based compensation.
The increase in Office and general expenses was primarily attributable to an increase in staff costs and acquisition related expenses, partially offset by a decrease in deferred acquisition consideration expense.
Stock-based compensation increased by $14.1 million, primarily due to an increase in the fair value of profit interest awards and an increase in the number of awards expensed, compared to last year, and a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.
Deferred acquisition consideration decreased by $10.5 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.
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Income Tax Expense
The Company had an income tax expense for the three months ended June 30, 2025 of 2.7 million (on a pre-tax loss of $2.0 million resulting in an effective tax rate of (134.9)%) primarily due to the tax benefit of the small pre-tax loss being more than offset by the current losses subject to valuation allowance, withholding taxes recorded in the period, and a shortfall in deductions for share based compensation expense vested during the period.
The Company had income tax expense for the three months ended June 30, 2024 of $1.2 million (on pre-tax loss of $2.8 million resulting in an effective tax rate of (41.8)%) primarily due to the tax benefit of the small pre-tax loss and a small windfall in deductions for share based compensation expense vested during the period, being more than offset by the current losses subject to valuation allowance.
Noncontrolling and Redeemable Noncontrolling Interests
The effect of noncontrolling and redeemable noncontrolling interests for the three months ended June 30, 2025 was income of $0.6 million, compared to loss of $1.0 million for the three months ended June 30, 2024. The amounts are driven by the mix of income and loss derived from entities not entirely owned by the Company.
Net Income (Loss) Attributable to Stagwell Inc. Common Shareholders
As a result of the foregoing, net loss attributable to Stagwell Inc. common shareholders for the three months ended June 30, 2025 was $5.3 million, compared to net loss of $3.0 million for the three months ended June 30, 2024.
Earnings (Loss) Per Share
Diluted EPS and Adjusted Diluted EPS for the three months ended June 30, 2025 were as follows:

|  | GAAP |  | Adjustments (1) |  | Non-GAAP
|  | (amounts in thousands, except per share amounts)
Net income (loss) attributable to Stagwell Inc. common shareholders and adjusted net income |  | $ | (5,261) |  |  | $ | 50,331 |  |  | $ | 45,070 |
Weighted average number of common shares outstanding |  | 260,774 |  |  | 7,550 |  |  | 268,324 |
Diluted EPS and Adjusted Diluted EPS (1) |  | $ | (0.02) |  |  |  |  | $ | 0.17 |
Adjustments to Net income
Amortization |  |  |  | $ | 35,593 |  |  |
Stock-based compensation |  |  |  | 19,954 |  |  |
Deferred acquisition consideration |  |  |  | (3,220) |  |  |
Other items, net |  |  |  | 11,580 |  |  |
|  |  |  | $ | 63,907 |  |  |
Adjusted tax expense |  |  |  | (13,576) |  |  |
|  |  |  | $ | 50,331 |  |  |

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.
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Diluted EPS and Adjusted Diluted EPS for the three months ended June 30, 2024 were as follows:

|  | GAAP |  | Adjustments (1) |  | Non-GAAP
|  | (amounts in thousands, except per share amounts)
Net income (loss) attributable to Stagwell Inc. common shareholders |  | $ | (2,965) |  |  | $ | 18,935 |  |  | $ | 15,970 |
Net income attributable to Class C shareholders |  | — |  |  | 22,828 |  |  | 22,828 |
Net income (loss) attributable to Stagwell Inc. and Class C and adjusted net income |  | $ | (2,965) |  |  | $ | 41,763 |  |  | $ | 38,798 |
Weighted average number of common shares outstanding |  | 113,484 |  |  | 5,281 |  |  | 118,765 |
Weighted average number of common Class C shares outstanding |  | — |  |  | 151,649 |  |  | 151,649 |
Weighted average number of shares outstanding |  | 113,484 |  |  | 156,930 |  |  | 270,414 |
Diluted EPS and Adjusted Diluted EPS (1) |  | $ | (0.03) |  |  |  |  | $ | 0.14 |
Adjustments to Net income (loss)
Amortization |  |  |  | $ | 35,008 |  |  |
Impairment and other losses |  |  |  | 215 |  |  |
Stock-based compensation |  |  |  | 5,875 |  |  |
Deferred acquisition consideration |  |  |  | 7,236 |  |  |
Other items, net |  |  |  | 8,869 |  |  |
|  |  |  | 57,203 |  |  |
Adjusted tax expense |  |  |  | (12,905) |  |  |
|  |  |  | $ | 44,298 |  |  |
Net loss attributable to Class C shareholders |  |  |  | (2,535) |  |  |
|  |  |  | $ | 41,763 |  |  |
Allocation of adjustments to Net income (loss) |  |  |  |  |  |
Net income attributable to Stagwell Inc. common shareholders - add-backs |  |  |  | $ | 18,935 |  |  |
Net income attributable to Class C shareholders - add-backs |  |  |  | 25,363 |  |  |
Net loss attributable to Class C shareholders |  |  |  | (2,535) |  |  |
|  |  |  | 22,828 |  |  |
|  |  |  | $ | 41,763 |  |  |

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.
Adjusted EBITDA
Adjusted EBITDA for the three months ended June 30, 2025 was $92.9 million, compared to $86.1 million for the three months ended June 30, 2024, representing an increase of $6.8 million, primarily driven by an increase in Revenue, partially offset by an increase in expenses, as discussed above.
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Integrated Agencies Network
The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  | Three Months Ended June 30,
|  | 2025 |  | 2024 |  | Change
|  | (dollars in thousands)
|  |  |  |  |  | $ |  | %
Revenue |  | $ | 406,190 |  |  | $ | 385,133 |  |  | $ | 21,057 |  |  | 5.5 | %
Operating Expenses |  |  |  |  |  |  |  |
Cost of services |  | 272,035 |  |  | 255,958 |  |  | 16,077 |  |  | 6.3 | %
Office and general expenses |  | 67,952 |  |  | 72,589 |  |  | (4,637) |  |  | (6.4) | %
Depreciation and amortization |  | 20,102 |  |  | 19,472 |  |  | 630 |  |  | 3.2 | %
|  | $ | 360,089 |  |  | $ | 348,019 |  |  | $ | 12,070 |  |  | 3.5 | %
Operating Income |  | $ | 46,101 |  |  | $ | 37,114 |  |  | $ | 8,987 |  |  | 24.2 | %

| Three Months Ended June 30,
| 2024 |  | 2023 |  | Change
| (dollars in thousands)
|  |  |  |  | $ |  | %
Net Revenue | $ | 344,888 |  |  | $ | 321,870 |  |  | $ | 23,018 |  |  | 7.2 | %
Billable costs | 61,302 |  |  | 63,263 |  |  | (1,961) |  |  | (3.1) | %
Revenue | 406,190 |  |  | 385,133 |  |  | 21,057 |  |  | 5.5 | %
Billable costs | 61,302 |  |  | 63,263 |  |  | (1,961) |  |  | (3.1) | %
Staff costs | 205,975 |  |  | 195,193 |  |  | 10,782 |  |  | 5.5 | %
Administrative costs | 34,094 |  |  | 33,902 |  |  | 192 |  |  | 0.6 | %
Unbillable and other costs, net | 27,309 |  |  | 24,780 |  |  | 2,529 |  |  | 10.2 | %
Adjusted EBITDA | 77,510 |  |  | 67,995 |  |  | 9,515 |  |  | 14.0 | %
Stock-based compensation | 12,288 |  |  | 4,849 |  |  | 7,439 |  |  | 153.4 | %
Depreciation and amortization | 20,102 |  |  | 19,472 |  |  | 630 |  |  | 3.2 | %
Deferred acquisition consideration | (4,292) |  |  | 2,531 |  |  | (6,823) |  |  | (269.6) | %
Other items, net | 3,311 |  |  | 4,029 |  |  | (718) |  |  | (17.8) | %
Operating Income | $ | 46,101 |  |  | $ | 37,114 |  |  | $ | 8,987 |  |  | 24.2 | %

`
Revenue
Revenue for the three months ended June 30, 2025 was $406.2 million, compared to $385.1 million for the three months ended June 30, 2024, an increase of $21.1 million.
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Net Revenue
The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Three Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Three Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Integrated Agencies Network | $321,870 |  | $744 |  | $9,037 |  | $13,237 |  | $23,018 |  | $344,888 |  | 4.1% |  | 7.2%
Component % change |  |  | 0.2% |  | 2.8% |  | 4.1% |  | 7.2% |  |  |  |  |  |

The increase in organic net revenue was primarily attributable to new client wins and increased spending in the technology, retail, and automotive sectors, partially offset by lower spending due to budget cuts by large clients in the food and beverage and consumer products sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Jetfuel and Create.
Operating Income
Operating Income for the three months ended June 30, 2025 was $46.1 million, compared to $37.1 million for the three months ended June 30, 2024, representing an increase of $9.0 million, primarily attributable to an increase in Revenue and a decrease in Office and general expenses, partially offset by an increase in Cost of services.
The increase in Cost of services was primarily attributable to higher staff costs due to the inclusion of costs from acquired entities, and higher stock-based compensation.
The decrease in Office and general expenses was primarily attributable to a decrease in deferred acquisition consideration expense.
Stock-based compensation increased by $7.4 million, primarily due to an increase in the fair value of profit interest awards.
Deferred acquisition consideration decreased by $6.8 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.
Adjusted EBITDA increased by $9.5 million, primarily driven by an increase in Revenue, partially offset by an increase in expenses, as discussed above.
Brand Performance Network
The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  | Three Months Ended June 30, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 170,099 |  |  | $ | 177,245 |  |  | $ | (7,146) |  |  | (4.0) | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 101,720 |  |  | 109,418 |  |  | (7,698) |  |  | (7.0) | % |
Office and general expenses |  | 60,132 |  |  | 56,106 |  |  | 4,026 |  |  | 7.2 | % |
Depreciation and amortization |  | 8,145 |  |  | 11,715 |  |  | (3,570) |  |  | (30.5) | % |
|  | $ | 169,997 |  |  | $ | 177,239 |  |  | $ | (7,242) |  |  | (4.1) | % |
Operating Income |  | $ | 102 |  |  | $ | 6 |  |  | $ | 96 |  |  | NM |

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| Three Months Ended June 30, |
| 2025 |  | 2024 |  | Change |
| (dollars in thousands) |
|  |  |  |  | $ |  | % |
Net Revenue | $ | 154,868 |  |  | $ | 157,108 |  |  | $ | (2,240) |  |  | (1.4) | % |
Billable costs | 15,231 |  |  | 20,137 |  |  | (4,906) |  |  | (24.4) | % |
Revenue | 170,099 |  |  | 177,245 |  |  | (7,146) |  |  | (4.0) | % |
Billable costs | 15,231 |  |  | 20,137 |  |  | (4,906) |  |  | (24.4) | % |
Staff costs | 100,260 |  |  | 99,264 |  |  | 996 |  |  | 1.0 | % |
Administrative costs | 25,584 |  |  | 24,525 |  |  | 1,059 |  |  | 4.3 | % |
Unbillable and other costs, net | 13,443 |  |  | 15,613 |  |  | (2,170) |  |  | (13.9) | % |
Adjusted EBITDA | 15,581 |  |  | 17,706 |  |  | (2,125) |  |  | (12.0) | % |
Stock-based compensation | 809 |  |  | 1,445 |  |  | (636) |  |  | (44.0) | % |
Depreciation and amortization | 8,145 |  |  | 11,715 |  |  | (3,570) |  |  | (30.5) | % |
Deferred acquisition consideration | 2,812 |  |  | 1,272 |  |  | 1,540 |  |  | 121.1 | % |
Other items, net | 3,713 |  |  | 3,268 |  |  | 445 |  |  | 13.6 | % |
Operating Income | $ | 102 |  |  | $ | 6 |  |  | $ | 96 |  |  | NM |

Revenue
Revenue for the three months ended June 30, 2025 was $170.1 million, compared to $177.2 million for the three months ended June 30, 2024, a decrease of $7.1 million.
Net Revenue
The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Three Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Three Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Brand Performance Network | $157,108 |  | $2,289 |  | $142 |  | $(4,671) |  | $(2,240) |  | $154,868 |  | (3.0)% |  | (1.4)%
Component % change |  |  | 1.5% |  | 0.1% |  | (3.0)% |  | (1.4)% |  |  |  |  |  |

The decrease in organic net revenue was primarily attributable to lower spending due to budget cuts in the Communication sector.
Operating Income
The increase in Operating Income of $0.1 million was primarily attributable to a decline in Net revenue of $2.2 million, more than offset by a decline in Cost of services, excluding Billable costs of $2.8 million. The total decrease in Cost of services of $7.7 million was primarily due to a decline in Billable costs of $4.9 million. The increase in Operating Income was further driven by a decrease in Depreciation and amortization partially offset by an increase in Office and general expenses.
The increase in Office and general expenses of $4.0 million was primarily attributable to an increase in staff restructuring related expenses and an increase in Deferred acquisition consideration of a certain Brand.
Depreciation and amortization decreased by $3.6 million, primarily attributable to the acceleration of amortization of certain tradenames during the three months ended June 30, 2024.
Adjusted EBITDA decreased $2.1 million, primarily driven by an increase in expenses and a decrease in Revenue, as discussed above.
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Communications Network
The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  | Three Months Ended June 30, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 106,128 |  |  | $ | 105,570 |  |  | $ | 558 |  |  | 0.5 | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 69,559 |  |  | 67,956 |  |  | 1,603 |  |  | 2.4 | % |
Office and general expenses |  | 17,116 |  |  | 20,091 |  |  | (2,975) |  |  | (14.8) | % |
Depreciation and amortization |  | 4,972 |  |  | 3,090 |  |  | 1,882 |  |  | 60.9 | % |
|  | $ | 91,647 |  |  | $ | 91,137 |  |  | $ | 510 |  |  | 0.6 | % |
Operating Income |  | $ | 14,481 |  |  | $ | 14,433 |  |  | $ | 48 |  |  | 0.3 | % |

| Three Months Ended June 30,
| 2025 |  | 2024 |  | Change
| (dollars in thousands)
|  |  |  |  | $ |  | %
Net Revenue | $ | 74,342 |  |  | $ | 72,393 |  |  | $ | 1,949 |  |  | 2.7 | %
Billable costs | 31,786 |  |  | 33,177 |  |  | (1,391) |  |  | (4.2) | %
Revenue | 106,128 |  |  | 105,570 |  |  | 558 |  |  | 0.5 | %
Billable costs | 31,786 |  |  | 33,177 |  |  | (1,391) |  |  | (4.2) | %
Staff costs | 44,812 |  |  | 41,131 |  |  | 3,681 |  |  | 8.9 | %
Administrative costs | 9,550 |  |  | 8,379 |  |  | 1,171 |  |  | 14.0 | %
Unbillable and other costs, net | 625 |  |  | 710 |  |  | (85) |  |  | (12.0) | %
Adjusted EBITDA | 19,355 |  |  | 22,173 |  |  | (2,818) |  |  | (12.7) | %
Stock-based compensation | 739 |  |  | 827 |  |  | (88) |  |  | (10.6) | %
Depreciation and amortization | 4,972 |  |  | 3,090 |  |  | 1,882 |  |  | 60.9 | %
Deferred acquisition consideration | (2,376) |  |  | 3,433 |  |  | (5,809) |  |  | NM
Other items, net | 1,539 |  |  | 390 |  |  | 1,149 |  |  | 294.6 | %
Operating Income | $ | 14,481 |  |  | $ | 14,433 |  |  | $ | 48 |  |  | 0.3 | %

Revenue
Revenue for the three months ended June 30, 2025 was $106.1 million, compared to $105.6 million for the three months ended June 30, 2024, an increase of $0.6 million.
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Net Revenue
The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Three Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Three Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Communications Network | $72,393 |  | $144 |  | $10,855 |  | $(9,050) |  | $1,949 |  | $74,342 |  | (12.5)% |  | 2.7%
Component % change |  |  | 0.2% |  | 15.0% |  | (12.5)% |  | 2.7% |  |  |  |  |  |

The decrease in organic net revenue was primarily attributable to decreased spending in the Public Affairs as 2024 was a presidential election year, and a decreased spending in Consumer Products and Healthcare sectors 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 three months ended June 30, 2025 was $14.5 million, compared to $14.4 million for the three months ended June 30, 2024. The increase in Operating Income was primarily attributable to an increase in Revenue and a decrease in Office and general expenses, partially offset by an increase in Costs of services and Depreciation and amortization.
The increase in Cost of services was primarily attributable to higher staff costs primarily due to the inclusion of costs from acquired entities.
The decrease in Office and general expenses was primarily attributable to a decrease in Deferred acquisition consideration.
Deferred acquisition consideration decreased $5.8 million, primarily as a result of a decrease in the fair value of a certain Brand, partially offset by an increase in the fair value of certain other Brands.
Adjusted EBITDA decreased $2.8 million, primarily due to an increase in expenses more than offset by an increase in Revenue, as discussed above.
All Other
The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  | Three Months Ended June 30,
|  | 2025 |  | 2024 |  | Change
|  | (dollars in thousands)
|  |  |  |  |  | $ |  | %
Revenue |  | $ | 24,401 |  |  | $ | 3,220 |  |  | $ | 21,181 |  |  | 657.8 | %
Operating Expenses |  |  |  |  |  |  |  |
Cost of services |  | 15,992 |  |  | 5,599 |  |  | 10,393 |  |  | 185.6 | %
Office and general expenses |  | 17,427 |  |  | 1,452 |  |  | 15,975 |  |  | NM
Depreciation and amortization |  | 4,927 |  |  | 4,944 |  |  | (17) |  |  | (0.3) | %
|  | $ | 38,346 |  |  | $ | 11,995 |  |  | $ | 26,351 |  |  | 219.7 | %
Operating Loss |  | $ | (13,945) |  |  | $ | (8,775) |  |  | $ | (5,170) |  |  | 58.9 | %

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| Three Months Ended June 30,
| 2025 |  | 2024 |  | Change
| (dollars in thousands)
|  |  |  |  | $ |  | %
Net Revenue | $ | 24,031 |  |  | $ | 3,021 |  |  | $ | 21,010 |  |  | 695.5 | %
Billable costs | 370 |  |  | 199 |  |  | 171 |  |  | 85.9 | %
Revenue | 24,401 |  |  | 3,220 |  |  | 21,181 |  |  | 657.8 | %
Billable costs | 370 |  |  | 199 |  |  | 171 |  |  | 85.9 | %
Staff costs | 17,245 |  |  | 7,607 |  |  | 9,638 |  |  | 126.7 | %
Administrative costs | 6,978 |  |  | (3,740) |  |  | 10,718 |  |  | NM
Unbillable and other costs, net | 6,753 |  |  | 2,303 |  |  | 4,450 |  |  | 193.2 | %
Adjusted EBITDA | (6,945) |  |  | (3,149) |  |  | (3,796) |  |  | 120.5 | %
Stock-based compensation | 167 |  |  | 252 |  |  | (85) |  |  | (33.7) | %
Depreciation and amortization | 4,927 |  |  | 4,944 |  |  | (17) |  |  | (0.3) | %
Deferred acquisition consideration | 636 |  |  | — |  |  | 636 |  |  | 100.0 | %
Other items, net | 1,270 |  |  | 430 |  |  | 840 |  |  | 195.3 | %
Operating Loss | $ | (13,945) |  |  | $ | (8,775) |  |  | $ | (5,170) |  |  | 58.9 | %

(1) All Other Revenue and Administrative costs include approximately $6 million and $8 million of eliminations of intercompany services for the three months ended June 30, 2025, and 2024, respectively.
Revenue
Revenue for the three months ended June 30, 2025 was $24.4 million, compared to $3.2 million for the three months ended June 30, 2024, an increase of $21.2 million.
Net Revenue
The components of the fluctuations in net revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Three Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Three Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
All Other | $3,021 |  | $74 |  | $17,118 |  | $3,818 |  | $21,010 |  | $24,031 |  | 126.4% |  | 695.5%
Component % change |  |  | 2.4% |  | 566.6% |  | 126.4% |  | 695.5% |  |  |  |  |  |

The increase in organic net revenue was primarily attributable to new wins and increased spend in the technology and consumer products sectors. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Leaders and Unicepta.
Operating Loss
Operating Loss for the three months ended June 30, 2025 was $13.9 million, compared to $8.8 million for the three months ended June 30, 2024, representing an increase of $5.2 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.
Cost of services and Office and general expenses increased by $10.4 million and $16.0 million, respectively, primarily due to inclusion of costs from acquired entities.
Adjusted EBITDA decreased $3.8 million, primarily due to an increase in expenses, which was partially offset by an increase in Revenue from the acquired entities.
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Corporate
The components of operating results for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 were as follows:

| Three Months Ended June 30, |
| 2025 |  | 2024 |  | Change |
| (dollars in thousands) |
|  |  |  |  | $ |  | % |
Staff costs | $ | 12,978 |  |  | $ | 12,154 |  |  | $ | 824 |  |  | 6.8 | % |
Administrative costs | (332) |  |  | 6,468 |  |  | (6,800) |  |  | NM |
Adjusted EBITDA | (12,646) |  |  | (18,622) |  |  | 5,976 |  |  | (32.1) | % |
Stock-based compensation | 5,951 |  |  | (1,498) |  |  | 7,449 |  |  | NM |
Depreciation and amortization | 3,223 |  |  | 2,780 |  |  | 443 |  |  | 15.9 | % |
Impairment and other losses | — |  |  | 215 |  |  | (215) |  |  | (100.0) | % |
Other items, net | 1,747 |  |  | 752 |  |  | 995 |  |  | 132.3 | % |
Operating Loss | $ | (23,567) |  |  | $ | (20,871) |  |  | $ | (2,696) |  |  | 12.9 | % |

Operating Loss for the three months ended June 30, 2025 was $23.6 million, compared to $20.9 million for the three months ended June 30, 2024, representing an increase of $2.7 million. The increase in Operating Loss was primarily attributable to higher Stock-based compensation.
Stock-based compensation increased $7.4 million, primarily due to an increase in the number of awards, partially offset by a decrease in the fair value of the awards and a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.
SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO SIX MONTHS ENDED JUNE 30, 2024
Consolidated Results of Operations
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, |
|  | 2025 | 2024 | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 1,358,558 |  |  | $ | 1,341,227 |  |  | $ | 17,331 |  |  | 1.3 | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 871,303 |  |  | 883,438 |  |  | (12,135) |  |  | (1.4) | % |
Office and general expenses |  | 362,423 |  |  | 331,476 |  |  | 30,947 |  |  | 9.3 | % |
Depreciation and amortization |  | 83,375 |  |  | 76,837 |  |  | 6,538 |  |  | 8.5 | % |
Impairment and other losses |  | — |  |  | 1,715 |  |  | (1,715) |  |  | (100.0) | % |
|  | $ | 1,317,101 |  |  | $ | 1,293,466 |  |  | $ | 23,635 |  |  | 1.8 | % |
Operating Income |  | $ | 41,457 |  |  | $ | 47,761 |  |  | $ | (6,304) |  |  | (13.2) | % |

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| Six Months Ended June 30, |
| 2025 |  | 2024 |  | Change |
| (dollars in thousands) |
|  |  |  |  | $ |  | % |
Net Revenue | $ | 1,162,316 |  |  | $ | 1,086,846 |  |  | $ | 75,470 |  |  | 6.9 | % |
Billable costs | 196,242 |  |  | 254,381 |  |  | (58,139) |  |  | (22.9) | % |
Revenue | 1,358,558 |  | 1,341,227 |  | 17,331 |  |  | 1.3 | % |
Billable costs | 196,242 |  |  | 254,381 |  |  | (58,139) |  |  | (22.9) | % |
Staff costs | 749,532 |  |  | 697,506 |  |  | 52,026 |  |  | 7.5 | % |
Administrative costs | 150,983 |  |  | 136,697 |  |  | 14,286 |  |  | 10.5 | % |
Unbillable and other costs, net | 88,364 |  |  | 76,224 |  |  | 12,140 |  |  | 15.9 | % |
Adjusted EBITDA | 173,437 |  |  | 176,419 |  |  | (2,982) |  |  | (1.7) | % |
Stock-based compensation | 31,497 |  |  | 21,991 |  |  | 9,506 |  |  | 43.2 | % |
Depreciation and amortization | 83,375 |  |  | 76,837 |  |  | 6,538 |  |  | 8.5 | % |
Deferred acquisition consideration | 3,437 |  |  | 7,390 |  |  | (3,953) |  |  | (53.5) | % |
Impairment and other losses | — |  |  | 1,715 |  |  | (1,715) |  |  | (100.0) | % |
Other items, net | 13,671 |  |  | 20,725 |  |  | (7,054) |  |  | (34.0) | % |
Operating Income (1) | $ | 41,457 |  |  | $ | 47,761 |  |  | $ | (6,304) |  |  | (13.2) | % |
(1) See the Results of Operations section above for a reconciliation of Operating Income to Net income (loss) attributable to Stagwell Inc. common shareholders. |

Revenue
Revenue for the six months ended June 30, 2025 was $1,358.6 million, compared to $1,341.2 million for the six months ended June 30, 2024, an increase of $17.3 million.
Net Revenue
The components of the fluctuations in net revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change |  |
| Six Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Six Months Ended June 30, 2025 |  | Organic |  | Total |  |  |  |
| (dollars in thousands) |  |  |  |  |  |  |  |
Integrated Agencies Network | $614,642 |  | $(198) |  | $13,580 |  | $42,658 |  | $56,040 |  | $670,682 |  | 6.9% |  | 9.1% |  |  |  |
Brand Performance Network | 319,670 |  | 1,011 |  | 142 |  | (19,097) |  | (17,944) |  | 301,726 |  | (6.0)% |  | (5.6)% |  |  |  |
Communications Network | 139,881 |  | 101 |  | 25,203 |  | (23,845) |  | 1,459 |  | 141,340 |  | (17.0)% |  | 1.0% |  |  |  |
All Other | 12,653 |  | (80) |  | 29,764 |  | 6,231 |  | 35,915 |  | 48,568 |  | 49.2% |  | 283.8% |  |  |  |
| $1,086,846 |  | $834 |  | $68,689 |  | $5,947 |  | $75,470 |  | $1,162,316 |  | 0.5% |  | 6.9% |  |  |  |
Component % change |  |  | 0.1% |  | 6.3% |  | 0.5% |  | 6.9% |  |  |  |  |  |  |  |  |  |

For the six months ended June 30, 2025, organic net revenue increased by $5.9 million, or 0.5%. The increase was primarily attributable to new wins and increased spending by clients in the technology and retail sectors. This increase was partially offset by losses and a decrease in client spending due to budget cuts in the consumer products sector. The increase in net acquisitions (divestitures) was impacted by the acquisitions of Jetfuel, Create, Consulum, Leaders, and Unicepta.
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The geographic mix in Net revenue for the six months ended June 30, 2025 and 2024 was as follows:

| Six Months Ended June 30,
| 2025 |  | 2024
| (dollars in thousands)
United States | $ | 905,523 |  |  |  | $ | 880,930 |  |
United Kingdom | 72,859 |  |  |  | 76,186 |  |
Other | 183,934 |  |  |  | 129,730 |  |
Total | $ | 1,162,316 |  |  |  | $ | 1,086,846 |  |

Operating Income
Operating Income for the six months ended June 30, 2025, was $41.5 million, compared to $47.8 million for the six months ended June 30, 2024, representing a decrease of $6.3 million. The decrease in Operating Income was primarily attributable to an increase in expenses partially offset by an increase in Revenue.
Cost of services decreased by $12.1 million. Excluding the decline in Billable costs of $58.1 million, Cost of services increased $46.0 million, primarily attributable to the inclusion of expenses of acquired entities.
Office and general expenses increased by $30.9 million, primarily attributable to the inclusion of expenses of acquired entities and higher staff costs.
Stock-based compensation increased by $9.5 million, primarily due to an increase in the fair value of profit interest awards and an increase in the number of awards expensed, compared to last year, partially offset by a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.
Deferred acquisition consideration decreased by $4.0 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.
Depreciation and amortization increased by $6.5 million, primarily attributable to the Company’s acquisition of businesses.
Interest Expense, Net
Interest expense, net for the six months ended June 30, 2025 was $46.8 million, compared to $44.5 million for the six months ended June 30, 2024, an increase of $2.3 million, primarily attributable to higher levels of debt outstanding under the Credit Agreement (as defined and discussed in Note 8 of the Notes to the Unaudited Consolidated Financial Statements included herein), partially offset by a lower average interest rate.
Foreign Exchange, Net
The foreign exchange loss for the six months ended June 30, 2025, was $0.1 million, compared to a loss of $3.6 million for the six months ended June 30, 2024, primarily attributable to the movement in the British Pound and Euro.
I ncome Tax Expense
The Company had an income tax expense for the six months ended June 30, 2025 of $4.4 million (on a pre-tax loss of $5.6 million resulting in an effective tax rate of (78.7)%) primarily due to the tax benefit of the pre-tax loss being more than offset by the current losses subject to valuation allowance, withholding taxes recorded in the period, and a shortfall in deductions for share based compensation expense vested during the period.
The Company had income tax expense for the six months ended June 30, 2024 of $3.8 million (on pre-tax loss of $1.4 million resulting in an effective tax rate of (263.3)%) primarily due to the tax benefit of the nominal pre-tax profit being more than offset by the current losses subject to valuation allowance and a shortfall in deductions for share based compensation expense vested during the period.
Noncontrolling and Redeemable Noncontrolling Interests
The effect of noncontrolling and redeemable noncontrolling interests for the six months ended June 30, 2025 was a loss of $1.8 million, compared to a loss of $0.4 million for the six months ended June 30, 2024. The amounts are driven by the mix of income and loss derived from entities not entirely owned by the Company.
Net Income (Loss) Attributable to Stagwell Inc. Common Shareholders
As a result of the foregoing, net loss attributable to Stagwell Inc. common shareholders for the six months ended June 30, 2025, was $8.2 million, compared to a net loss of $4.2 million for the six months ended June 30, 2024.
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Earnings Per Share
Diluted EPS and Adjusted Diluted EPS for the six months ended June 30, 2025, were as follows:

|  | GAAP |  | Adjustments |  | Non-GAAP
|  | (amounts in thousands, except per share amounts)
Net income (loss) attributable to Stagwell Inc. common shareholders |  | $ | (8,178) |  |  | $ | 93,283 |  |  | $ | 85,105 |
Net loss attributable to Class C shareholders |  | (6,637) |  |  | — |  |  | (6,637) |
Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income |  | $ | (14,815) |  |  | $ | 93,283 |  |  | $ | 78,468 |
Weighted average number of common shares outstanding |  | 186,843 |  |  | 8,506 |  |  | 195,349 |
Weighted average number of shares of Class C Common Stock outstanding |  | 78,757 |  |  | — |  |  | 78,757 |
Weighted average number of shares outstanding |  | 265,600 |  |  | 8,506 |  |  | 274,106 |
Diluted EPS and Adjusted Diluted EPS (1) |  | $ | (0.06) |  |  |  |  | $ | 0.29 |
Adjustments to Net Income (loss) |  |  |  |  |  |
Amortization |  |  |  | $ | 68,574 |  |  |
Stock-based compensation |  |  |  | 31,497 |  |  |
Deferred acquisition consideration |  |  |  | 3,437 |  |  |
Other items, net |  |  |  | 13,671 |  |  |
|  |  |  | 117,179 |  |  |
Adjusted tax expense |  |  |  | (23,896) |  |  |
|  |  |  | $ | 93,283 |  |  |

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.
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Diluted EPS and Adjusted Diluted EPS for the six months ended June 30, 2024, were as follows:

|  | GAAP |  | Adjustments |  | Non-GAAP
|  | (amounts in thousands, except per share amounts)
Net income (loss) attributable to Stagwell Inc. common shareholders |  | $ | (4,247) |  |  | $ | 38,415 |  |  | $ | 34,168 |
Net income attributable to Class C shareholders |  | — |  |  | 47,382 |  |  | 47,382 |
Net income (loss) attributable to Stagwell Inc. and Class C shareholders and adjusted net income |  | $ | (4,247) |  |  | $ | 85,797 |  |  | $ | 81,550 |
Weighted average number of common shares outstanding |  | 113,059 |  |  | 4,760 |  |  | 117,819 |
Weighted average number of shares of Class C Common Stock outstanding |  | — |  |  | 151,649 |  |  | 151,649 |
Weighted average number of shares outstanding |  | 113,059 |  |  | 156,409 |  |  | 269,468 |
Diluted EPS and Adjusted Diluted EPS (1) |  | $ | (0.04) |  |  |  |  | $ | 0.30 |
Adjustments to Net income (loss) |  |  |  |  |  |
Amortization |  |  |  | $ | 63,211 |  |  |
Impairment and other losses |  |  |  | 1,715 |  |
Stock-based compensation |  |  |  | 21,991 |  |  |
Deferred acquisition consideration |  |  |  | 7,390 |  |  |
Other items, net |  |  |  | 20,725 |  |  |
|  |  |  | 115,032 |  |  |
Adjusted tax expense |  |  |  | (25,653) |  |  |
|  |  |  | 89,379 |  |  |
Net loss attributable to Class C shareholders |  |  |  | (3,582) |  |  |
|  |  |  | $ | 85,797 |  |  |
Allocation of adjustments to Net income (loss) |  |  |  |  |  |
Net income attributable to Stagwell Inc. common shareholders |  |  |  | $ | 38,415 |  |  |
Net income attributable to Class C shareholders - add-backs |  |  |  | 50,964 |  |  |
Net loss attributable to Class C shareholders |  |  |  | (3,582) |  |  |
|  |  |  | 47,382 |  |  |
|  |  |  | $ | 85,797 |  |  |

(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary.
Adjusted EBITDA
Adjusted EBITDA for the six months ended June 30, 2025, was $173.4 million, compared to $176.4 million for the six months ended June 30, 2024, representing a decrease of $3.0 million, primarily driven by a decrease in Operating Income, as discussed above.
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Integrated Agencies Network
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, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 783,544 |  |  | $ | 737,852 |  |  | $ | 45,692 |  |  | 6.2 | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 510,317 |  |  | 496,439 |  |  | 13,878 |  |  | 2.8 | % |
Office and general expenses |  | 137,617 |  |  | 141,596 |  |  | (3,979) |  |  | (2.8) | % |
Depreciation and amortization |  | 41,466 |  |  | 38,853 |  |  | 2,613 |  |  | 6.7 | % |
Impairment and other losses |  | — |  |  | 1,500 |  |  | (1,500) |  |  | (100.0) | % |
|  | $ | 689,400 |  |  | $ | 678,388 |  |  | $ | 11,012 |  |  | 1.6 | % |
Operating Income |  | $ | 94,144 |  |  | $ | 59,464 |  |  | $ | 34,680 |  |  | 58.3 | % |

| Six Months Ended June 30,
| 2025 |  | 2024 |  | Change
| (dollars in thousands)
|  |  |  |  | $ |  | %
Net Revenue | $ | 670,682 |  |  | $ | 614,642 |  |  | $ | 56,040 |  |  | 9.1 | %
Billable costs | 112,862 |  |  | 123,210 |  |  | (10,348) |  |  | (8.4) | %
Revenue | 783,544 |  |  | 737,852 |  |  | 45,692 |  |  | 6.2 | %
Billable costs | 112,862 |  |  | 123,210 |  |  | (10,348) |  |  | (8.4) | %
Staff costs | 405,857 |  |  | 381,727 |  |  | 24,130 |  |  | 6.3 | %
Administrative costs | 65,738 |  |  | 64,504 |  |  | 1,234 |  |  | 1.9 | %
Unbillable and other costs, net | 44,408 |  |  | 40,308 |  |  | 4,100 |  |  | 10.2 | %
Adjusted EBITDA | 154,679 |  |  | 128,103 |  |  | 26,576 |  |  | 20.7 | %
Stock-based compensation | 16,433 |  |  | 14,170 |  |  | 2,263 |  |  | 16.0 | %
Depreciation and amortization | 41,466 |  |  | 38,853 |  |  | 2,613 |  |  | 6.7 | %
Deferred acquisition consideration | 1,571 |  |  | 4,576 |  |  | (3,005) |  |  | (65.7) | %
Impairment and other losses | — |  |  | 1,500 |  |  | (1,500) |  |  | (100.0) | %
Other items, net | 1,065 |  |  | 9,540 |  |  | (8,475) |  |  | (88.8) | %
Operating Income | $ | 94,144 |  |  | $ | 59,464 |  |  | $ | 34,680 |  |  | 58.3 | %

Revenue
Revenue for the six months ended June 30, 2025 was $783.5 million, compared to $737.9 million for the six months ended June 30, 2024, an increase of $45.7 million.
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Net Revenue
The components of the fluctuations in net revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Six Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Six Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Integrated Agencies Network | $614,642 |  | $(198) |  | $13,580 |  | $42,658 |  | $56,040 |  | $670,682 |  | 6.9% |  | 9.1%
Component % change |  |  | —% |  | 2.2% |  | 6.9% |  | 9.1% |  |  |  |  |  |

The increase in organic net revenue was primarily attributable to new client wins and higher spending in the technology, retail, automotive, and financials sectors. This increase was partially offset by losses and a decrease in client spending due to budget cuts in the consumer products sector. The increase in net acquisitions (divestitures) was primarily driven by the acquisitions of Jetfuel and Create.
Operating Income
Operating Income for the six months ended June 30, 2025, was $94.1 million, compared to $59.5 million for the six months ended June 30, 2024, representing an increase of $34.7 million. The increase in Operating Income was primarily attributable to an increase in Net revenue and decrease in Office and general expenses, partially offset by higher Cost of services, excluding Billable costs.
Cost of services increased $13.9 million. Excluding the decline in Billable costs of $10.3 million, Cost of services increased $24.2 million, primarily attributable to higher staff costs due to growth in revenue and inclusion of costs from acquired entities and higher Stock-based compensation.
Stock-based compensation increased by $2.3 million, primarily due to an increase in the fair value of profit interest awards.
Deferred acquisition consideration decreased $3.0 million, primarily attributable to a reduction in the fair value of the deferred acquisition consideration liability associated with certain Brands.
Other items, net decreased 8.5 million, primarily attributable to a lease termination during the first quarter of 2025 resulting in a gain on termination of $3.5 million, and a decrease in severance of $3.5 million.
Adjusted EBITDA increased by $26.6 million, primarily driven by higher Net revenue, partially offset by an increase in expenses, as discussed above.
Brand Performance Network
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, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 332,317 |  |  | $ | 391,207 |  |  | $ | (58,890) |  |  | (15.1) | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 204,370 |  |  | 249,205 |  |  | (44,835) |  |  | (18.0) | % |
Office and general expenses |  | 111,897 |  |  | 109,072 |  |  | 2,825 |  |  | 2.6 | % |
Depreciation and amortization |  | 15,867 |  |  | 19,229 |  |  | (3,362) |  |  | (17.5) | % |
|  | $ | 332,134 |  |  | $ | 377,506 |  |  | $ | (45,372) |  |  | (12.0) | % |
Operating Income |  | $ | 183 |  |  | $ | 13,701 |  |  | $ | (13,518) |  |  | (98.7) | % |

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| Six Months Ended June 30,
| 2025 |  | 2024 |  | Change
| (dollars in thousands)
|  |  |  |  | $ |  | %
Net Revenue | $ | 301,726 |  |  | $ | 319,670 |  |  | $ | (17,944) |  |  | (5.6) | %
Billable costs | 30,591 |  |  | 71,537 |  |  | (40,946) |  |  | (57.2) | %
Revenue | 332,317 |  |  | 391,207 |  |  | (58,890) |  |  | (15.1) | %
Billable costs | 30,591 |  |  | 71,537 |  |  | (40,946) |  |  | (57.2) | %
Staff costs | 196,710 |  |  | 197,695 |  |  | (985) |  |  | (0.5) | %
Administrative costs | 48,991 |  |  | 46,596 |  |  | 2,395 |  |  | 5.1 | %
Unbillable and other costs, net | 28,901 |  |  | 30,179 |  |  | (1,278) |  |  | (4.2) | %
Adjusted EBITDA | 27,124 |  |  | 45,200 |  |  | (18,076) |  |  | (40.0) | %
Stock-based compensation | 2,177 |  |  | 3,488 |  |  | (1,311) |  |  | (37.6) | %
Depreciation and amortization | 15,867 |  |  | 19,229 |  |  | (3,362) |  |  | (17.5) | %
Deferred acquisition consideration | 1,530 |  |  | 495 |  |  | 1,035 |  |  | 209.1 | %
Other items, net | 7,367 |  |  | 8,287 |  |  | (920) |  |  | (11.1) | %
Operating Income | $ | 183 |  |  | $ | 13,701 |  |  | $ | (13,518) |  |  | (98.7) | %

Revenue
Revenue for the six months ended June 30, 2025, was $332.3 million, compared to $391.2 million for the six months ended June 30, 2024, a decrease of $58.9 million.
Net Revenue
The components of the fluctuations in net revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Six Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Six Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Brand Performance Network | $319,670 |  | $1,011 |  | $142 |  | $(19,097) |  | $(17,944) |  | $301,726 |  | (6.0)% |  | (5.6)%
Component % change |  |  | 0.3% |  | —% |  | (6.0)% |  | (5.6)% |  |  |  |  |  |

The decrease in organic net revenue was primarily attributable to decreased spending by existing clients in the business services and transportation sectors.
Operating Income
Operating Income for the six months ended June 30, 2025, was $0.2 million, compared to $13.7 million for the six months ended June 30, 2024, representing a decrease of $13.5 million. The decrease in Operating Income was primarily attributable to a decline in Net revenue of $17.9 million, partially offset by a decline in Cost of services, excluding Billable costs. Cost of services decreased $44.8 million. Excluding the decline in Billable costs of $40.9 million, Cost of services decreased $3.9 million.
Adjusted EBITDA decreased by $18.1 million, primarily driven by a decrease in Operating Income, as discussed above.
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Communications Network
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, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 193,756 |  |  | $ | 199,316 |  |  | $ | (5,560) |  |  | (2.8) | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 128,015 |  |  | 126,460 |  |  | 1,555 |  |  | 1.2 | % |
Office and general expenses |  | 36,565 |  |  | 36,166 |  |  | 399 |  |  | 1.1 | % |
Depreciation and amortization |  | 10,147 |  |  | 5,984 |  |  | 4,163 |  |  | 69.6 | % |
|  | $ | 174,727 |  |  | $ | 168,610 |  |  | $ | 6,117 |  |  | 3.6 | % |
Operating Income |  | $ | 19,029 |  |  | $ | 30,706 |  |  | $ | (11,677) |  |  | (38.0) | % |

| Six Months Ended June 30,
| 2025 |  | 2024 |  | Change
| (dollars in thousands)
|  |  |  |  | $ |  | %
Net Revenue | $ | 141,340 |  |  | $ | 139,881 |  |  | $ | 1,459 |  |  | 1.0 | %
Billable costs | 52,416 |  |  | 59,435 |  |  | (7,019) |  |  | (11.8) | %
Revenue | 193,756 |  |  | 199,316 |  |  | (5,560) |  |  | (2.8) | %
Billable costs | 52,416 |  |  | 59,435 |  |  | (7,019) |  |  | (11.8) | %
Staff costs | 89,389 |  |  | 80,395 |  |  | 8,994 |  |  | 11.2 | %
Administrative costs | 19,724 |  |  | 17,083 |  |  | 2,641 |  |  | 15.5 | %
Unbillable and other costs, net | 1,115 |  |  | 846 |  |  | 269 |  |  | 31.8 | %
Adjusted EBITDA | 31,112 |  |  | 41,557 |  |  | (10,445) |  |  | (25.1) | %
Stock-based compensation | 1,432 |  |  | 1,876 |  |  | (444) |  |  | (23.7) | %
Depreciation and amortization | 10,147 |  |  | 5,984 |  |  | 4,163 |  |  | 69.6 | %
Deferred acquisition consideration | (1,163) |  |  | 2,319 |  |  | (3,482) |  |  | NM
Other items, net | 1,667 |  |  | 672 |  |  | 995 |  |  | 148.1 | %
Operating Income | $ | 19,029 |  |  | $ | 30,706 |  |  | $ | (11,677) |  |  | (38.0) | %

Revenue
Revenue for the six months ended June 30, 2025 was $193.8 million, compared to $199.3 million for the six months ended June 30, 2024, a decrease of $5.6 million.
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Net Revenue
The components of the fluctuations in net revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Six Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Six Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
Communications Network | $139,881 |  | $101 |  | $25,203 |  | $(23,845) |  | $1,459 |  | $141,340 |  | (17.0)% |  | 1.0%
Component % change |  |  | 0.1% |  | 18.0% |  | (17.0)% |  | 1.0% |  |  |  |  |  |

The decrease in organic net revenue was primarily attributable to decreased spending, primarily due to lower advocacy services as compared to higher spending in the first half of 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 six months ended June 30, 2025, was $19.0 million, compared to $30.7 million for the six months ended June 30, 2024, representing a decrease of $11.7 million. The decrease in Operating Income was primarily attributable to a decrease in Revenue and an increase in Cost of Services and Depreciation and amortization, partially offset by a decrease in Deferred acquisition consideration.
Cost of services increased $1.6 million. Excluding the decline in Billable costs of $7.0 million, Cost of services increased $8.6 million due to the inclusion of costs from acquired entities.
Deferred acquisition consideration decreased by $3.5 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 other Brands.
Depreciation and amortization increased by $4.2 million, primarily attributable to the inclusion of costs from acquired entities.
Adjusted EBITDA decreased by $10.4 million, primarily due to a decrease in Operating Income, as discussed above.
All Other
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, |
|  | 2025 |  | 2024 |  | Change |
|  | (dollars in thousands) |
|  |  |  |  |  | $ |  | % |
Revenue |  | $ | 48,941 |  |  | $ | 12,852 |  |  | $ | 36,089 |  |  | 280.8 | % |
Operating Expenses |  |  |  |  |  |  |  |  |
Cost of services |  | 28,599 |  |  | 11,353 |  |  | 17,246 |  |  | 151.9 | % |
Office and general expenses |  | 37,093 |  |  | 9,588 |  |  | 27,505 |  |  | 286.9 | % |
Depreciation and amortization |  | 9,228 |  |  | 7,365 |  |  | 1,863 |  |  | 25.3 | % |
|  | $ | 74,920 |  |  | $ | 28,306 |  |  | $ | 46,614 |  |  | 164.7 | % |
Operating Loss |  | $ | (25,979) |  |  | $ | (15,454) |  |  | $ | (10,525) |  |  | 68.1 | % |

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| Six Months Ended June 30, |  |
| 2025 |  | 2024 |  | Change |  |
| (dollars in thousands) |  |
|  |  |  |  | $ |  | % |  |
Net Revenue | $ | 48,568 |  |  | $ | 12,653 |  |  | $ | 35,915 |  |  | 283.8 | % |  |
Billable costs | 373 |  |  | 199 |  |  | 174 |  |  | 87.4 | % |  |
Revenue (1) | 48,941 |  |  | 12,852 |  |  | 36,089 |  |  | 280.8 | % |  |
Billable costs | 373 |  |  | 199 |  |  | 174 |  |  | 87.4 | % |  |
Staff costs | 32,700 |  |  | 15,428 |  |  | 17,272 |  |  | 112.0 | % |  |
Administrative costs (1) | 15,203 |  |  | (531) |  |  | 15,734 |  |  | NM |  |
Unbillable and other costs, net | 13,940 |  |  | 4,891 |  |  | 9,049 |  |  | 185.0 | % |  |
Adjusted EBITDA | (13,275) |  |  | (7,135) |  |  | (6,140) |  |  | 86.1 | % |  |
Stock-based compensation | 396 |  |  | 350 |  |  | 46 |  |  | 13.1 | % |  |
Depreciation and amortization | 9,228 |  |  | 7,365 |  |  | 1,863 |  |  | 25.3 | % |  |
Deferred acquisition consideration | 1,499 |  |  | — |  |  | 1,499 |  |  | 100.0 | % |  |
Other items, net | 1,581 |  |  | 604 |  |  | 977 |  |  | 161.8 | % |  |
Operating Loss | $ | (25,979) |  |  | $ | (15,454) |  |  | $ | (10,525) |  |  | 68.1 | % |  |

(1) All Other Revenue and Administrative costs include approximately $11 million and $8 million of eliminations of intercompany services for the three months ended June 30, 2025, and 2024, respectively.
Revenue
Revenue for the six months ended June 30, 2025, was $48.9 million, compared to $12.9 million for the six months ended June 30, 2024, an increase of $36.1 million.
Net Revenue
The components of the fluctuations in net revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, were as follows:

|  |  | Net Revenue - Components of Change |  |  |  |  |  | Change
| Six Months Ended June 30, 2024 |  | Foreign Currency |  | Net Acquisitions (Divestitures) |  | Organic |  | Total Change |  | Six Months Ended June 30, 2025 |  | Organic |  | Total
| (dollars in thousands) |  |  |  |
All Other | $12,653 |  | $(80) |  | $29,764 |  | $6,231 |  | $35,915 |  | $48,568 |  | 49.2% |  | 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, |  |  |
| 2025 |  | 2024 |  | Change |  |  |
| (dollars in thousands) |  |  |
|  |  |  |  | $ |  | % |  |  |
Staff costs | $ | 24,876 |  |  | $ | 22,261 |  |  | $ | 2,615 |  |  | 11.7 | % |  |  |
Administrative costs | 1,327 |  |  | 9,045 |  |  | (7,718) |  |  | (85.3) | % |  |  |
Adjusted EBITDA | (26,203) |  |  | (31,306) |  |  | 5,103 |  |  | (16.3) | % |  |  |
Stock-based compensation | 11,059 |  |  | 2,107 |  |  | 8,952 |  |  | 424.9 | % |  |  |
Depreciation and amortization | 6,667 |  |  | 5,406 |  |  | 1,261 |  |  | 23.3 | % |  |  |
Impairment and other losses | — |  |  | 215 |  |  | (215) |  |  | (100.0) | % |  |  |
Other items, net | 1,991 |  |  | 1,622 |  |  | 369 |  |  | 22.7 | % |  |  |
Operating Loss | $ | (45,920) |  |  | $ | (40,656) |  |  | $ | (5,264) |  |  | 12.9 | % |  |  |

Operating Loss
Operating Loss for the six months ended June 30, 2025, was $45.9 million, compared to $40.7 million for the six months ended June 30, 2024, representing an increase of $5.3 million, primarily attributable to higher Stock-based compensation.
Stock-based compensation expense increased by $9.0 million, primarily attributable to an increase in the number of awards partially offset by a decrease in the fair value of the awards and a reversal of expense in the second quarter of 2024 associated with stock-based performance awards for which the performance targets were not met.
Liquidity and Capital Resources:
The following table provides summary information about the Company’s liquidity position:

| Six Months Ended June 30,
| 2025 |  | 2024
| (dollars in thousands)
Net cash provided by (used in) operating activities | $ | 54,738 |  |  | $ | (67,618) |
Net cash used in investing activities | (34,936) |  |  | (52,183) |
Net cash provided by financing activities | 21,062 |  |  | 138,304 |

The Company had cash and cash equivalents of $181.3 million and $131.3 million as of June 30, 2025, and December 31, 2024, respectively. The Company expects to maintain sufficient cash and/or available borrowings to fund operations for the next twelve months and subsequent periods. The Company has historically maintained and expanded its business using cash generated from operating activities, funds available under the Credit Agreement, and other initiatives, such as obtaining additional debt and equity financing. On April 23, 2025, the Company entered into the Second Amended and Restated Credit Agreement, which increased the limit of borrowing from $640 million to $750 million and extended the maturity date from August 3, 2026 to April 30, 2030. As of June 30, 2025, the Company had $377.0 million of borrowings outstanding and $15.3 million of issued and undrawn letters of credit resulting in $357.7 million unused borrowing capacity under the Credit Agreement.
The Company transfers certain of its trade receivable assets to third parties under certain agreements. Per the terms of these agreements, the Company surrenders control over its trade receivables upon transfer.
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The trade receivables transferred to the third parties were $114.3 million and $243.5 million for the three and six months ended June 30, 2025, respectively, and $72.0 million and $141.7 million for the three and six months ended June 30, 2024. The amount collected and due to the third parties under these arrangements was $8.6 million as of June 30, 2025 and $19.5 million as of December 31, 2024. Fees for these arrangements were recorded in Office and general expenses in the Unaudited Consolidated Statements of Operations and totaled $1.3 million and $2.8 million for the three and six months ended June 30, 2025, respectively, and $1.0 million and $1.9 million for the three and six months ended June 30, 2024.
The Company may repurchase up to an aggregate of $375.0 million of shares of our outstanding Class A Common Stock under its stock repurchase program (the “Repurchase Program”). The Repurchase Program will expire on November 6, 2027.
Under the Repurchase Program, share repurchases may be made at our discretion from time to time in open market transactions at prevailing market prices, including through trading plans that may be adopted in accordance with Rule 10b5-1 of the Exchange Act, as amended, in privately negotiated transactions, or through other means. The timing and number of shares repurchased under the Repurchase Program will depend on a variety of factors, including the performance of our stock price, general market and economic conditions, regulatory requirements, the availability of funds, and other considerations we deem relevant. The Repurchase Program may be suspended, modified, or discontinued at any time without prior notice. Our Board of Directors will review the Repurchase Program periodically and may authorize adjustments of its terms.
During the six months ended June 30, 2025, 10.6 million shares of Class A Common Stock were repurchased pursuant to the Repurchase Program at an average price of $5.05 per share, for an aggregate value, excluding fees, of $53.3 million.
The remaining value of shares of Class A Common Stock permitted to be repurchased under the Repurchase Program was $116.4 million as of June 30, 2025.
The Company’s obligations extending beyond twelve months primarily consist of deferred acquisition consideration payments, purchases of noncontrolling interests, subsidiary awards, capital expenditures, scheduled lease obligation payments, and interest payments on borrowings under the Company’s 5.625% Notes (as defined in Note 8 of the Notes included herein) and Credit Agreement. The Company expects to make estimated cash payments in the future to satisfy obligations under our Tax Receivables Agreement (“TRA”), which remains in effect after the final exchange of Paired Units (see Note 14 of the Notes included herein for additional details). The amount and timing of any payments under the TRA are contingent on the Company achieving certain tax savings, if any, that we actually realize, or in certain circumstances are deemed to realize. Based on the current outlook, the Company believes future cash flows from operations, together with the Company’s existing cash balance and availability of funds under the Credit Agreement, will be sufficient to meet the Company’s anticipated cash needs for the next twelve months and subsequent periods. The Company’s ability to make payments will depend on future performance, which is subject to general economic conditions, the competitive environment and other factors, including those described in this Form 10-Q and in the Company’s other SEC filings.
Cash Flows
Operating Activities
Cash flows provided by operating activities for the six months ended June 30, 2025 were $54.7 million, primarily driven by earnings, partially offset by funding working capital requirements during the period.
Cash flows used in operating activities for the six months ended June 30, 2024 were $67.6 million. The use of cash from operating activities was to fund working capital requirements during the period.
Investing Activities
Cash flows used in investing activities were $34.9 million for the six months ended June 30, 2025, primarily driven by $29.2 million in capitalized software spend and $11.6 million in capital expenditures, partially offset by $14.2 million in acquisitions, net of cash acquired.
Cash flows used in investing activities were $52.2 million for the six months ended June 30, 2024, primarily driven by $17.1 million in capitalized software spend, $14.0 million in capital expenditures, and $20.4 million in acquisitions, net of cash acquired.
Financing Activities
During the six months ended June 30, 2025, cash flows provided by financing activities were $21.1 million, primarily driven by $113.0 million in net proceeds borrowed under the Credit Agreement, partially offset by shares repurchased and tax shares withheld of $67.5 million and payments of deferred consideration of $16.1 million.
During the six months ended June 30, 2024, cash flows provided by financing activities were $138.3 million, primarily driven by $275.0 million in net proceeds borrowed under the Credit Agreement, shares repurchased and cancelled of $86.9 million, payments of deferred consideration of $24.0 million, and distributions to noncontrolling interests of $22.5 million.
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Total Debt
As of June 30, 2025, Debt, net of debt issuance costs, was $1,464.2 million, compared to $1,353.6 million outstanding as of December 31, 2024. See Note 8 of the Notes included herein for information regarding the Company’s 5.625% Notes and the Credit Agreement.
As of June 30, 2025, t he Company was in compliance with all of the terms and conditions of the Credit Agreement, and management believes, based on its current financial projections, that the Company will be in compliance with its covenants over the next twelve months.
If the Company loses all or a substantial portion of its lines of credit under the Credit Agreement, or if the Company uses the maximum available amount under the agreement, it will be required to seek other sources of liquidity. If the Company were unable to find these sources of liquidity, for example, through an equity offering or access to the capital markets, the Company’s ability to fund its working capital needs and any contingent obligations with respect to acquisitions and redeemable noncontrolling interests would be adversely affected.
Pursuant to the Credit Agreement, the Company must maintain a Total Leverage Ratio (as defined in the Credit Agreement) below an established threshold. For the period ended June 30, 2025, the Company’s calculation of this ratio, and the maximum permitted under the Credit Agreement, respectively, were calculated based on the trailing twelve months as follows:

| June 30, 2025
Total Leverage Ratio | 3.16
Maximum per covenant | 4.25

These ratios and measures are not based on GAAP and are not presented as alternative measures of operating performance or liquidity. Some of these ratios and measures include, among other things, pro forma adjustments for acquisitions, one-time charges, and other items, as defined in the Credit Agreement. They are presented here to demonstrate compliance with the covenants in the Credit Agreement, as non-compliance with such covenants could have a material adverse effect on the Company.
Material Cash Requirements
The Company’s Brands enter into contractual commitments with media providers and agreements with production companies on behalf of their clients at levels that exceed the revenue from services. Some of our Brands purchase media for clients and act as an agent for a disclosed principle. These commitments are included in Accounts payable and Accrued media when the media services are delivered by the media providers. Stagwell takes precautions against default on payment for these services, including the procurement of credit insurance, and has historically had a very low incidence of default. Stagwell is still exposed to the risk of significant uncollectible receivables from our clients. The risk of a material loss could significantly increase in periods of severe economic downturn.
Deferred acquisition consideration on the balance sheet consists of deferred obligations related to contingent purchase price payments and retention payments tied to continued employment of specific personnel. See Note 6 of the Notes included herein for additional information regarding contingent deferred acquisition consideration.
When acquiring less than 100% ownership of an entity, the Company may enter into agreements that give the Company an option to purchase, or require the Company to purchase, the incremental ownership interests under certain circumstances. Where the incremental purchase may be required of the Company, the amounts are recorded as redeemable noncontrolling interests in mezzanine equity. See Note 9 of the Notes included herein for additional information regarding noncontrolling interests and redeemable noncontrolling interests.
Certain of the Company’s subsidiaries grant awards to their employees providing them with an equity interest in the respective subsidiary (the “profits interests awards”). The awards generally provide the employee with the right, but not the obligation, to sell their profits interest in the subsidiary to the Company based on a performance-based formula and, in certain cases, receive a profit share distribution. The profits interests awards are primarily settled in cash, with certain awards having stock-settlement provisions at the Company’s discretion. The corresponding liability associated with these profits interests awards is included as a component of Accruals and other liabilities and Other liabilities on the Consolidated Balance Sheets.
The Company enters into certain long-term non-cancellable contracts for services such as revenue or profit share arrangements, cloud-based services, or software licensing. See Note 10 of the Notes included herein for additional information regarding these material commitments.
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Critical Accounting Estimates
See Note 2 of the Company’s 2024 Form 10-K for information regarding the Company’s critical accounting estimates.
Website Access to Company Reports and Information
Stagwell Inc.’s Internet website address is www.stagwellglobal.com. The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to the Exchange Act, will be made available free of charge through the Company’s website as soon as reasonably practical after those reports are electronically filed with, or furnished to, the SEC. The Company announces material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and its website. The Company uses these channels, as well as social media, including X (formerly Twitter) (@stagwell) and (@Mark_Penn), Instagram (@stagwellglobal) and its LinkedIn page (https://www.linkedin.com/company/stagwell/), to communicate with investors and the public about the Company, its products and services, and other matters. Therefore, investors, the media, and others interested in the Company are encouraged to review the information the Company makes public in these locations, as such information could be deemed to be material information. Information on or that can be accessed through the Company’s websites or these social media channels is not part of this Form 10-Q, and the inclusion of the Company’s website addresses and social media channels are inactive textual references only.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
In the normal course of business, the Company is exposed to market risk related to interest rates, foreign currencies and impairment risk.
Debt Instruments: As of June 30, 2025, the Company’s debt obligations consisted of amounts outstanding under its Credit Agreement and the 5.625% Notes. The Credit Agreement bears interest at variable rates based upon SOFR, EURIBOR, and SONIA depending on the duration of the borrowing product. The Company’s ability to obtain the required bank syndication commitments depends in part on conditions in the bank market at the time of syndication.
With regard to our variable rate debt, a 10% increase or decrease in interest rates would change our annual interest expense by $2.6 million.
Foreign Exchange: While the Company primarily conducts business in markets that use the U.S. dollar, the Canadian dollar, the Euro and the British Pound, its non-U.S. operations transact business in numerous different currencies. The Company’s results of operations are subject to risk from the translation to the U.S. dollar of the revenue and expenses of its non-U.S. operations. The effects of currency exchange rate fluctuations on the translation of the Company’s results of operations are discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in Note 2 of the Company’s Audited Consolidated Financial Statements included in the 2024 Form 10-K. For the most part, revenues and expenses incurred related to the non-U.S. operations are denominated in their functional currency. This reduces the impact that fluctuations in exchange rates will have on profit margins. Translation of intercompany debt, which is not intended to be repaid, is included in cumulative translation adjustments. Translation of current intercompany balances are included in net income (loss). From time to time, the Company may enter into foreign currency forward exchange contracts or other derivative financial instruments to hedge the effects of adverse fluctuations in foreign currency exchange rates.
Impairment Risk: The Company did not record any impairment charge for the six months ended June 30, 2025.
See the Significant Accounting Policies section in the “Notes to Audited Consolidated Financial Statements” of the 2024 Form 10-K for information related to impairment testing for Goodwill, Right-of-use lease assets and long-lived assets and the risk of potential impairment charges in future periods. See the Critical Accounting Estimates section in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 Form 10-K for information related to the risk of potential impairment charges in future periods.
Item 4. Controls and Procedures
We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”), who is our principal executive officer, and Chief Financial Officer (“CFO”), who is our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
We conducted an evaluation, under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report pursuant
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to Rules 13a-15(b) and 15d-15(b) of the Exchange Act. Based on this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025.
There were no changes in our internal control over financial reporting during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
In the ordinary course of business, we are involved in various legal proceedings. We do not currently expect that these proceedings will have a material adverse effect on our results of operations, cash flows or financial position.
Item 1A. Risk Factors
There have been no material changes to the risk factors in Part I, Item 1A “Risk Factors” of our 2024 Form 10-K. These risks could materially and adversely affect our business, results of operations, financial condition, cash flows, projected results and future prospects. These risks are not exclusive and additional risks to which we are subject to include the factors listed under note about “Forward-Looking Statements” and the risks described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Unregistered Sales of Equity Securities
In the three months ended June 30, 2025, the Company granted 45,832 restricted stock units underlying shares of Class A Common Stock as inducement for employment and issued an aggregate of 2,671,520 shares of Class A Common Stock as purchase consideration valued at $15.3 million, in connection with acquisitions exempt from registration under Section 4(a)(2) of the Securities Act. The Company received no cash proceeds and no commissions were paid to any person in connection with the issuance of these shares.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers
Under the Repurchase Program, share repurchases may be made at our discretion from time to time in open market transactions at prevailing market prices (including through trading plans that may be adopted in accordance with Rule 10b5-1 of the Exchange Act), in privately negotiated transactions, or through other means. The timing and number of shares repurchased under the Repurchase Program will depend on a variety of factors, including the performance of our stock price, general market and economic conditions, regulatory requirements, the availability of funds, and other considerations we deem relevant. The Repurchase Program may be suspended, modified or discontinued at any time without prior notice. The Board will review the Repurchase Program periodically and may authorize adjustments of its terms. Pursuant to its Credit Agreement (as defined and discussed in Note 8 of the Notes included herein) and the indenture governing the 5.625% Notes, the Company is currently limited as to the dollar value of shares it may repurchase in the open market.
The following table details our monthly shares repurchased during the second quarter of 2025 and the approximate dollar value of shares that may yet be purchased pursuant to the Repurchase Program:

Period |  | Total Number of Shares Purchased (1) |  | Average Price Paid Per Share (1) |  | Total Number of Shares Purchased as Part of Publicly Announced Program (2) |  | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (2)
4/1/2025 - 4/30/2025 |  | 4,258,208 |  |  | $ | 5.63 |  |  | 2,747,373 |  |  | $ | 149,349,134 |
5/1/2025 - 5/31/2025 |  | 2,896,368 |  |  | $ | 5.15 |  |  | 2,891,590 |  |  | $ | 134,386,023 |
6/1/2025 - 6/30/2025 |  | 3,988,249 |  |  | $ | 4.49 |  |  | 3,988,249 |  |  | $ | 116,397,020 |
Total |  | 11,142,825 |  |  | $ | 5.10 |  |  | 9,627,212 |  |  | $ | 116,397,020 |

(1) Includes information for all shares repurchased by the Company, including shares repurchased as part of the Company’s publicly announced Repurchase Program, and 1,515,613 shares to settle employee tax withholding obligations related to the
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vesting of restricted stock awards and restricted stock units. Under the Repurchase Program, which was announced in March 2022, was extended and increased in November 2024 and will expire on November 6, 2027, the Company may repurchase up to an aggregate of $375.0 million of shares of the Company’s Class A Common Stock.
(2) Only includes information for shares repurchased as part of the Company’s publicly announced Repurchase Program.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During the quarterly period covered by this Form 10-Q, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K).
Item 6. Exhibits
The exhibits required by this item are listed on the Exhibit Index.
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EXHIBIT INDEX

Exhibit No. |  | Description
3.1 |  | Second Amended and Restated Certificate of Incorporation of Stagwell Inc., as amended (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-Q filed on May 9, 2023).
3.2 |  | Amended and Restated Bylaws of Stagwell Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed on August 2, 2021).
10.1^ |  | Second Amended and Restated Credit Agreement, dated as of April 23, 2025, by and among Stagwell Marketing Group LLC, Stagwell Global LLC, Maxxcom LLC, as the Borrowers, the other Loan Parties party thereto, the Lenders party thereto, the Issuing Banks party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on April 24, 2025).
10.2 |  | Third Amended and Restated 2016 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on June 17, 2025).
10.3 |  | Amendment No. 1, dated as of July 2, 2025, to Employment Agreement, by and between the Company and Ryan Greene (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on July 8, 2025).
10.4 |  | Amendment No. 1, dated as of July 2, 2025, to Employment Agreement, by and between the Company and Frank Lanuto (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on July 8, 2025).
31.1 |  | Certification by Chief Executive Officer pursuant to Rules 13a - 14(a) and 15d - 14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2 |  | Certification by Chief Financial Officer pursuant to Rules 13a - 14(a) and 15d - 14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1 |  | Certification by Chief Executive Officer pursuant to 18 USC. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2 |  | Certification by Chief Financial Officer pursuant to 18 USC. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101 |  | Interactive Data File, for the period ended June 30, 2025. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.*
104 |  | Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document and are included in Exhibit 101.*

* Filed herewith.
** Furnished herewith.
^ Certain schedules and attachments have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide, on a supplemental basis, a copy of any omitted schedules and attachments to the Securities and Exchange Commission or its staff upon request.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

STAGWELL INC.
/s/ Mark Penn
Mark Penn
Chairman of the Board and Chief Executive Officer (Principal Executive Officer)
July 31, 2025
/s/ Ryan Greene
Ryan Greene
Chief Financial Officer (Principal Financial Officer)
July 31, 2025

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