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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The components of the Company’s income before income taxes and equity in earnings of non-consolidated affiliates by taxing jurisdiction for the years ended December 31 were:
| 2025 |  | 2024 |  | 2023
Income (Loss): |  |  |  |  |
U.S. | $ | 58,405 |  |  | $ | 36,368 |  |  | $ | 66,432 |
Non-U.S. | 10,381 |  |  | 1,355 |  |  | 24,637 |
| $ | 68,786 |  |  | $ | 37,723 |  |  | $ | 91,069 |
Schedule Of Components Of Income Taxes Provision Benefit | The provision (benefit) for income taxes by taxing jurisdiction for the years ended December 31 were:
| 2025 |  | 2024 |  | 2023
Current tax provision |  |  |  |  |
U.S. federal | $ | 2,821 |  |  | $ | 7,139 |  |  | $ | 4,868 |
U.S. state and local | 2,198 |  |  | 4,359 |  |  | 3,103 |
Non-U.S. | 22,813 |  |  | 12,370 |  |  | 13,143 |
| 27,832 |  |  | 23,868 |  |  | 21,114 |
Deferred tax provision (benefit): |  |  |  |  |
U.S. federal | 10,673 |  |  | 607 |  |  | 18,168 |
U.S. state and local | 1,378 |  |  | 248 |  |  | 7,017 |
Non-U.S. | (1,612) |  |  | (11,541) |  |  | (5,742) |
| 10,439 |  |  | (10,686) |  |  | 19,443 |
Income tax expense | $ | 38,271 |  |  | $ | 13,182 |  |  | $ | 40,557 |
Our effective income tax rate for the year ended December 31, 2025 (dollars in thousands) is as follows:
| 2025 |  | %
Tax expense, at U.S. federal statutory rate | $ | 14,445 |  |  | 21.0 | %
State and local income taxes (net of federal benefit) (1) | 3,129 |  |  | 4.6 | %
Foreign tax effects |  |  |
Canada | 4,189 |  |  | 6.1 | %
United Kingdom | 5,672 |  |  | 8.3 | %
Other foreign jurisdictions | 9,098 |  |  | 13.2 | %
Effects of cross-border tax laws | 1,191 |  |  | 1.7 | %
Tax credits | 1,663 |  |  | 2.4 | %
Changes in valuation allowance | 1,824 |  |  | 2.7 | %
Non-taxable or non-deductible Items |  |  |
Deferred acquisition consideration expense | (5,560) |  |  | (8.1) | %
Other | 1,707 |  |  | 2.5 | %
Changes in unrecognized benefits | 268 |  |  | 0.4 | %
Other | 645 |  |  | 0.8 | %
Tax expense, at effective tax rate | $ | 38,271 |  |  | 55.6 | %
(1) State taxes in New York (including local taxes in New York City) and California made up the majority (greater than 50 percent) of the tax effect in this category.
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rate for the years ended December 31, 2024 and 2023 (dollars in thousands) is as follows:
| 2024 |  | 2023
Income before income taxes, equity in non-consolidated affiliates and noncontrolling interest | $37,723 |  | $91,069
Statutory income tax rate | 21.0 | % |  | 21.0 | %
Tax expense using U.S. statutory income tax rate | $7,922 |  | $19,124
Impact of disregarded entity structure | (3,384) |  | (8,520)
Foreign, net | 1,208 |  | (3,684)
State taxes, net | 3,701 |  | 8,422
Stock compensation | 2,244 |  | 400
Valuation allowance | 5,198 |  | 11,791
Deferred acquisition consideration adjustments | (2,079) |  | 1,299
Revaluation of TRA step up | — |  | (424)
Gain on sale of business | — |  | 8,347
Prior year adjustments | (3,464) |  | 5,617
Other, net | 1,836 |  | (1,815)
Income tax expense | $13,182 |  | $40,557
Effective income tax rate | 34.9 | % |  | 44.5 | %
Schedule of Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing deferred tax assets and liabilities as of December 31 were as follows:
| 2025 |  | 2024 |  | 2023
Deferred tax assets: |  |  |  |  |
Net operating losses | $ | 64,721 |  |  | $ | 38,482 |  |  | $ | 29,835 |
Tax credits | 5,203 |  |  | 6,719 |  |  | 6,355 |
Operating lease liability | 73,725 |  |  | 44,356 |  |  | 50,657 |
Interest deductions | 41,591 |  |  | 37,384 |  |  | 36,618 |
Accruals and other liabilities | 1,812 |  |  | 1,010 |  |  | 252 |
TRA and related step-up, net of amortization | 285,538 |  |  | 27,335 |  |  | 29,007 |
Other | 16,003 |  |  | 8,128 |  |  | 13,568 |
Gross deferred tax asset | 488,593 |  |  | 163,414 |  |  | 166,292 |
Less: valuation allowance | (43,060) |  |  | (30,583) |  |  | (26,288) |
Net deferred tax assets | $ | 445,533 |  |  | $ | 132,831 |  |  | $ | 140,004 |
Deferred tax liabilities: |  |  |  |  |
Right-of-use lease asset - operating leases | 54,631 |  |  | 33,163 |  |  | 38,261 |
Property and equipment, net | 9,358 |  |  | 5,065 |  |  | 11,553 |
Goodwill and intangibles | 155,213 |  |  | 94,126 |  |  | 83,335 |
Other | — |  |  | 790 |  |  | 205 |
Total deferred tax liabilities | 219,202 |  |  | 133,144 |  |  | 133,354 |
Net deferred tax asset (liability) | $ | 226,331 |  |  | $ | (313) |  |  | $ | 6,650 |
Deferred tax assets | $ | 281,057 |  |  | $ | 46,926 |  |  | $ | 47,159 |
Deferred tax liabilities | (54,726) |  |  | (47,239) |  |  | (40,509) |
| $ | 226,331 |  |  | $ | (313) |  |  | $ | 6,650 |
Schedule Of Changes In Tax Reserve |
| 2025 |  | 2024 |  |
A reconciliation of the change in unrecognized tax benefits is as follows: |  |  |  |  |
Unrecognized tax benefit - Beginning Balance | $ | 9 |  |  | $ | 9 |  |  |
Current year positions | — |  |  | — |  |  |
Prior period positions | — |  |  | — |  |  |
Additions related to acquisitions | 2,026 |  |  | — |  |  |
Settlements | — |  |  | — |  |  |
Lapse of statute of limitations | — |  |  | — |  |  |
Unrecognized tax benefits - Ending Balance | $ | 2,035 |  |  | $ | 9 |  |  |
Schedule of income tax paid | Income taxes paid (net of refunds) for the year ended December 31, 2025 were as follows:
Income Taxes Paid |
U.S. federal | $ | (444) |
New York State | (1,921) |
Other U.S. state & local | 440 |
Foreign Taxes |
Canada | 6,872 |
Germany | 2,074 |
Saudi Arabia | 3,539 |
United Kingdom | 4,204 |
Other Foreign Jurisdictions | 8,188 |
Total Cash Taxes Paid | $ | 22,952 |
Schedule of deferred tax assets expiration | Our deferred tax assets from operating and capital losses, foreign tax credits, and state credits will expire as follows:
| Stagwell Inc. |  | Consolidated Corporate Subsidiaries |  | Total
Federal |  |  |  |  |
Operating losses expiring between 2033-2037 | $ | — |  |  | $ | 2,552 |  |  | $ | 2,552 |
Indefinite operating losses | 11,553 |  |  | 8,637 |  |  | 20,190 |
Capital losses expiring 2030 | 1,202 |  |  | — |  |  | 1,202 |
State |  |  |  |  |
Operating losses expiring between 2026-2043 | 32 |  |  | 468 |  |  | 500 |
Indefinite operating losses | 5,368 |  |  | 1,800 |  |  | 7,168 |
Foreign |  |  |  |  |
Operating losses expiring between 2026-2045 | — |  |  | 12,922 |  |  | 12,922 |
Indefinite operating losses | — |  |  | 21,388 |  |  | 21,388 |
Tax Credits |  |  |  |  |
Foreign Tax Credits expiring between 2026-2043 | 4,236 |  |  | — |  |  | 4,236 |
Other Tax Credits expiring between 2026-2030 | 967 |  |  | — |  |  | 967 |
| $ | 23,358 |  |  | $ | 47,767 |  |  | $ | 71,125 |

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