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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
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
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.
Three Months Ended June 30, 2025
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkTotal
(dollars in thousands)
Revenue (1)
$406,190 $170,099 $106,128 $682,417 
Billable costs61,302 15,231 31,786 108,319 
Staff costs205,975 100,260 44,812 351,047 
Administrative costs34,094 25,584 9,550 69,228 
Unbillable and other costs *27,309 13,443 625 41,377 
Adjusted EBITDA77,510 15,581 19,355 112,446 
Adjusted EBITDA - All Other(6,945)
Adjusted EBITDA - Corporate(12,646)
Total Consolidated Adjusted EBITDA
92,855 
Stock-based compensation19,954 
Depreciation and amortization41,369 
Deferred acquisition consideration(3,220)
Other items, net11,580 
Operating Income
23,172 
Other income (expenses):
Interest expense, net(23,455)
Foreign exchange, net(1,338)
Other, net(360)
(25,153)
Loss before income taxes and equity in earnings of non-consolidated affiliates(1,981)
Income tax expense2,673 
Loss before equity in earnings of non-consolidated affiliates(4,654)
Equity in income of non-consolidated affiliates
20 
Net loss(4,634)
Net income attributable to noncontrolling and redeemable noncontrolling interests
(627)
Net loss attributable to Stagwell Inc. common shareholders$(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.
Six Months Ended June 30, 2025
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkTotal
(dollars in thousands)
Revenue (1)
$783,544 $332,317 $193,756 $1,309,617 
Billable costs112,862 30,591 52,416 195,869 
Staff costs405,857 196,710 89,389 691,956 
Administrative costs65,738 48,991 19,724 134,453 
Unbillable and other costs *44,408 28,901 1,115 74,424 
Adjusted EBITDA154,679 27,124 31,112 212,915 
Adjusted EBITDA - All Other(13,275)
Adjusted EBITDA - Corporate(26,203)
Total Consolidated Adjusted EBITDA
173,437 
Stock-based compensation31,497 
Depreciation and amortization83,375 
Deferred acquisition consideration3,437 
Other items, net13,671 
Operating Income
41,457 
Other income (expenses):
Interest expense, net(46,811)
Foreign exchange, net(118)
Other, net(111)
(47,040)
Loss before income taxes and equity in earnings of non-consolidated affiliates(5,583)
Income tax expense4,395 
Loss before equity in earnings of non-consolidated affiliates(9,978)
Equity in income of non-consolidated affiliates
19 
Net loss(9,959)
Net loss attributable to noncontrolling and redeemable noncontrolling interests1,781 
Net loss attributable to Stagwell Inc. common shareholders$(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.
Three Months Ended June 30, 2024
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkTotal
(dollars in thousands)
Revenue (1)
$385,133 $177,245 $105,570 $667,948 
Billable costs63,263 20,137 33,177 116,577 
Staff costs195,193 99,264 41,131 335,588 
Administrative costs33,902 24,525 8,379 66,806 
Unbillable and other costs *24,780 15,613 710 41,103 
Adjusted EBITDA67,995 17,706 22,173 107,874 
Adjusted EBITDA - All Other(3,149)
Adjusted EBITDA - Corporate(18,622)
Total Consolidated Adjusted EBITDA86,103 
Stock-based compensation5,875 
Depreciation and amortization42,001 
Deferred acquisition consideration7,236 
Impairment and other losses215 
Other items, net8,869 
Operating Income21,907 
Interest expense, net(23,533)
Foreign exchange, net(1,355)
Other, net193 
(24,695)
Loss before income taxes and equity in earnings of non-consolidated affiliates(2,788)
Income tax expense1,165 
Loss before equity in earnings of non-consolidated affiliates(3,953)
Equity in loss of non-consolidated affiliates(1)
Net loss(3,954)
Net loss attributable to noncontrolling and redeemable noncontrolling interests989 
Net loss attributable to Stagwell Inc. common shareholders$(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.
Six Months Ended June 30, 2024
Integrated Agencies NetworkBrand Performance NetworkCommunications NetworkTotal
(dollars in thousands)
Revenue (1)
$737,852 $391,207 $199,316 $1,328,375 
Billable costs123,210 71,537 59,435 254,182 
Staff costs381,727 197,695 80,395 659,817 
Administrative costs64,504 46,596 17,083 128,183 
Unbillable and other costs *40,308 30,179 846 71,333 
Adjusted EBITDA128,103 45,200 41,557 214,860 
Adjusted EBITDA - All Other(7,135)
Adjusted EBITDA - Corporate(31,306)
Total Consolidated Adjusted EBITDA176,419 
Stock-based compensation21,991 
Depreciation and amortization76,837 
Deferred acquisition consideration7,390 
Impairment and other losses1,715 
Other items, net20,725 
Operating Income
47,761 
Other income (expenses):
Interest expense, net(44,498)
Foreign exchange, net(3,613)
Other, net(1,074)
(49,185)
Loss before income taxes and equity in earnings of non-consolidated affiliates(1,424)
Income tax expense3,750 
Loss before equity in earnings of non-consolidated affiliates(5,174)
Equity in income of non-consolidated affiliates507 
Net loss(4,667)
Net loss attributable to noncontrolling and redeemable noncontrolling interests420 
Net loss attributable to Stagwell Inc. common shareholders$(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.