Thu, May 8, 3:56 PM (9 days ago)
**Stagwell Inc. (STGW) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $651.7 million, down 2.7% YoY. - **Operating Income:** $18.3 million, down 29.3% YoY. - **Net Loss:** $2.9 million, compared to a net loss of $1.3 million in Q1 2024. - **Adjusted EBITDA:** $80.6 million, down 10.8% YoY. - **Cash Flow:** Net cash used in operating activities was $60.0 million. **Profit Margins:** - **Operating Margin:** 2.8%. - **Net Margin:** -0.5%. **Cash Flow:** - **Operating Cash Flow:** -$60.0 million. - **Investing Cash Flow:** -$20.4 million. - **Financing Cash Flow:** $83.2 million. **Earnings Changes:** - **EPS (Diluted):** -$0.04, compared to -$0.01 in Q1 2024. - **Adjusted Diluted EPS:** $0.12. **Quarterly Performance Discussion:** - **Revenue Decline:** Primarily due to lower spending by existing clients and client losses. - **Operating Income Decline:** Driven by higher expenses, including increased staff costs and deferred acquisition consideration. - **Cash Flow:** Negative cash flow from operations and investing activities, offset by positive cash flow from financing activities. **Trends and Uncertainties:** - **Acquisitions:** Recent acquisitions include JetFuel Studio and Create Group Holding. - **Debt:** Total debt of $1.47 billion, with $249.7 million in unused borrowing capacity. - **Market Risks:** Exposure to interest rates, foreign currencies, and impairment risks. **Future Operations Impact:** - **Liquidity:** Expects to maintain sufficient cash and borrowings to fund operations. - **Debt Compliance:** In compliance with credit agreement covenants. - **Market Risks:** Continues to monitor and manage market risks. **Ticker:** STGW **Full Name:** Stagwell Inc.