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Income Taxes (Tables)
 12 Months Ended
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:
202520242023
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:
202520242023
Current tax provision
U.S. federal$2,821 $7,139 $4,868 
U.S. state and local2,198 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. federal10,673 607 18,168 
U.S. state and local1,378 248 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
   Canada4,189 6.1 %
   United Kingdom5,672 8.3 %
   Other foreign jurisdictions9,098 13.2 %
Effects of cross-border tax laws1,191 1.7 %
Tax credits1,663 2.4 %
Changes in valuation allowance 1,824 2.7 %
Non-taxable or non-deductible Items
    Deferred acquisition consideration expense(5,560)(8.1)%
    Other1,707 2.5 %
Changes in unrecognized benefits268 0.4 %
Other645 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:
20242023
Income before income taxes, equity in non-consolidated affiliates and noncontrolling interest$37,723$91,069
Statutory income tax rate21.0 %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, net1,208(3,684)
State taxes, net3,7018,422
Stock compensation2,244400
Valuation allowance5,19811,791
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, net1,836(1,815)
Income tax expense$13,182$40,557
Effective income tax rate34.9 %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:
202520242023
Deferred tax assets:
Net operating losses$64,721 $38,482 $29,835 
Tax credits5,203 6,719 6,355 
Operating lease liability73,725 44,356 50,657 
Interest deductions41,591 37,384 36,618 
Accruals and other liabilities1,812 1,010 252 
TRA and related step-up, net of amortization285,538 27,335 29,007 
Other16,003 8,128 13,568 
Gross deferred tax asset488,593 163,414 166,292 
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 leases54,631 33,163 38,261 
Property and equipment, net9,358 5,065 11,553 
Goodwill and intangibles155,213 94,126 83,335 
Other— 790 205 
Total deferred tax liabilities219,202 133,144 133,354 
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
20252024
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 acquisitions2,026 — 
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
$22,952 
Schedule of deferred tax assets expiration
Our deferred tax assets from operating and capital losses, foreign tax credits, and state credits will expire as follows:
Stagwell Inc.Consolidated Corporate SubsidiariesTotal
Federal
     Operating losses expiring between 2033-2037$— $2,552 $2,552 
     Indefinite operating losses11,553 8,637 20,190 
     Capital losses expiring 20301,202 — 1,202 
State
     Operating losses expiring between 2026-204332 468 500 
     Indefinite operating losses5,368 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 2026-20434,236 — 4,236 
     Other Tax Credits expiring between 2026-2030967 — 967 
$23,358 $47,767 $71,125