Stagwell Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved revenues of $711.3 million for the third quarter, marking a 15.2% increase from $617.6 million in the same period of 2023. For the nine months, revenue rose to $2.05 billion, up 9.6% from $1.87 billion year-over-year. This growth was driven by strong performance across various segments, particularly in Digital Transformation and Creativity and Communications.

Operating income for the third quarter increased to $41.8 million, a 23.8% rise from $33.7 million in Q3 2023. For the nine-month period, operating income reached $89.5 million, compared to $71.2 million in the prior year, reflecting a 25.7% increase. Net income for the third quarter was $13.9 million, significantly higher than $3.1 million in Q3 2023, while net income for the nine months was $9.2 million, a turnaround from a net loss of $4.7 million in the same period last year.

Stagwell's adjusted EBITDA also showed positive trends, with $111.2 million for the third quarter, up from $101.8 million in 2023, and $287.6 million for the nine months, compared to $265.2 million previously. The company noted that organic net revenue growth was primarily driven by new client acquisitions and increased spending in the technology and retail sectors.

Strategically, Stagwell has been active in acquisitions, including the purchase of Consulum (Cayman) Limited for $71.2 million in October 2024, and Team Epiphany, LLC for $15.8 million earlier in the year. The company also authorized a $125 million increase in its stock repurchase program, bringing the total to $375 million, set to expire in November 2027.

Despite these positive developments, Stagwell reported a net loss attributable to common shareholders of $1.0 million for the nine months ended September 30, 2024, compared to a loss of $1.2 million in the same period of 2023. The company’s total liabilities increased to $3.03 billion as of September 30, 2024, from $2.93 billion at the end of 2023, while total assets rose slightly to $3.80 billion.

The company continues to face challenges, including increased costs in services and general expenses, which have impacted profitability. Stagwell is actively working on improving its internal controls following identified weaknesses in its financial reporting processes.