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Jun 30
Interpublic Group Q2 2025 Earnings Report
Interpublic Group reported its second quarter and first half 2025 results, highlighting a decrease in total revenue and net revenue, but strong adjusted EBITA margin due to strategic restructuring and improved operating performance.
Key Takeaways
Interpublic Group experienced a decline in total revenue and net revenue in Q2 2025, primarily due to prior-year client account activity and strategic dispositions. Despite this, the company achieved a strong adjusted EBITA margin, driven by significant progress in strategic transformation and improved operating performance in its largest units. Diluted EPS decreased, while adjusted diluted EPS increased.
Total revenue for Q2 2025 was $2.54 billion, a 6.4% decrease from Q2 2024.
Net revenue (revenue before billable expenses) was $2.17 billion, a 6.6% decrease, with organic net revenue decreasing by 3.5%.
Reported net income was $162.5 million, including an $88.4 million after-tax expense for strategic restructuring actions.
Adjusted EBITA before restructuring charges and deal costs was $393.7 million, with an 18.1% margin on net revenue, showing strong performance compared to the prior year.
Interpublic Group
Interpublic Group
Forward Guidance
Interpublic remains on track with its full-year target for organic net revenue decrease and expects significantly higher adjusted EBITA margin, driven by structural and operating improvements, and anticipates the Omnicom merger to be completed in the second half of the year.
Positive Outlook
- Organic revenue was in line with expectations, showing sequential improvement against headwinds.
- Strong performance in media and healthcare practice areas, as well as growth in sports marketing and public relations disciplines.
- Adjusted Q2 margin was very strong due to strategic transformation and improved operating performance.
- On track for full-year target of 1% to 2% organic net revenue decrease.
- Expects adjusted 2025 EBITA margin significantly ahead of the previously shared 16.6%.
Challenges Ahead
- Organic net revenue decrease of -3.5% due to prior-year client account activity.
- Total revenue decreased by 6.4% compared to the second quarter of 2024.
- Net revenue decreased by 6.6% from the second quarter of 2024.
- Operating income decreased to $243.7 million from $318.2 million in 2024.
- Diluted loss per share was $0.44 as reported.