IPG Q2 revenue falls to $2.54B, net revenue drops 6.6% YoY

Interpublic Group (IPG) has released its financial results for the second quarter and first half of 2025, reporting a year-on-year decline in revenue while maintaining its full-year targets amid ongoing restructuring and the planned merger with Omnicom.

For Q2 2025, total revenue (including billable expenses) stood at $2.54 billion, down from $2.71 billion in Q2 2024. Net revenue (excluding billable expenses) declined 6.6% year-on-year to $2.17 billion. This decrease was driven by a 3.4% reduction from strategic dispositions, a 3.5% organic decline, and a 0.3% positive impact from foreign currency translation.

For the first half of 2025, total revenue was $4.86 billion, compared to $5.21 billion in the first half of 2024. Net revenue declined by 7.6%, reflecting a 3.6% drop from dispositions, a further 3.6% organic decrease, and a 0.4% negative impact from currency fluctuations.

Operating income for the first half of 2025 was reported at $201.7 million, a significant reduction from $502.4 million in the corresponding period of 2024. However, adjusted EBITA before restructuring and deal costs increased to $580.2 million from $544.4 million, resulting in a margin of 13.9%.

Staff costs were reduced by 11.5% in Q2 and by 10.8% in the first half of 2025, primarily due to cuts in base salaries, benefits, severance, and temporary staffing. Consequently, the staff cost ratio fell to 63.4% in Q2 (from 66.9%) and to 67.0% in the first half (from 69.4%). Office and direct expenses also declined, with a 9.3% reduction in Q2 and a 5.3% decrease in the first half of 2025, attributed largely to lower occupancy and consulting costs, though partly offset by increased spending on technology and software.

In Q2 2025, net income was reported at $162.5 million, with earnings per basic and diluted share at $0.44, compared to $0.57 per share in Q2 2024. Adjusted earnings per diluted share rose to $0.75 from $0.61 in the previous year.

The company noted that it continued to implement restructuring actions aimed at transforming its business and reducing structural costs. In its statement, IPG highlighted that “Organic revenue was in line with expectations, reflecting the impact of account activity in 2024. Underlying growth in the quarter showed sequential improvement against those headwinds, with strong performance at our media and healthcare practice areas.” The report also mentioned growth in sports marketing and public relations.

Regarding the planned merger with Omnicom, IPG stated, “We remain on track to see the transaction (with Omnicom) completed in the second half of this year,” citing ongoing client support and internal momentum.

Additional details for Q2 2025 include an income tax expense of $54.6 million and income before taxes of $218.0 million. Net interest expense increased to $24.3 million, and other expenses were recorded at $1.4 million in Q2 and \$38.3 million in the first half, primarily due to pension costs and business sales.