Interpublic Group (IPG) has released its second quarter and first half 2025 results, revealing key financial metrics and performance indicators.
In the second quarter of 2025, IPG reported total revenue of $2.54 billion, including billable expenses, compared to $2.71 billion in the same period in 2024. However, revenue before billable expenses, or "net revenue," was $2.17 billion, marking a reported decrease of 6.6% from the second quarter of 2024.
Organic net revenue saw a decrease of -3.5% in the second quarter, primarily attributed to prior-year client account activity. Adjusted EBITA before restructuring charges and deal costs was $393.7 million, with a margin of 18.1% on revenue before billable expenses.
The reported net income for the quarter was $162.5 million, which includes an after-tax expense of $88.4 million for previously announced strategic restructuring actions. Diluted loss per share was $0.44 as reported, while adjusted diluted earnings per share stood at $0.75.
For the first half of 2025, total revenue, including billable expenses, was $4.86 billion, compared to $5.21 billion in the first half of 2024. Net revenue for the same period was $4.17 billion, representing a reported decrease of 7.6% from the first half of 2024.
Operating income in the second quarter of 2025 was $243.7 million, including charges for previously announced strategic restructuring of $118.0 million and deal costs of $10.9 million related to the planned acquisition of IPG by Omnicom. Adjusted EBITA before restructuring charges and deal costs was $393.7 million, compared to $338.9 million for the same period in 2024.
The staff cost ratio decreased to 63.4% in the second quarter of 2025, compared to 66.9% for the same period in 2024. Total salaries and related expenses in the second quarter of 2025 were $1.38 billion, a decrease of 11.5% from a year ago.
In the first half of 2025, IPG's cash and cash equivalents totaled $1.56 billion, compared to $2.19 billion at December 31, 2024, and $1.55 billion on June 30, 2024. Total debt was $2.96 billion at June 30, 2025, unchanged from December 31, 2024.
During the first half of 2025, the company repurchased 7.4 million shares of its common stock at an aggregate cost of $188.3 million and paid a common stock cash dividend of $0.330 per share, amounting to $121.1 million.
IPG's CEO, Philippe Krakowsky, expressed confidence in the company's performance and outlined strategic initiatives aimed at driving growth, especially in areas such as media trading, commerce, and data-driven marketing.
For further details on IPG's financial results and non-GAAP measures, the company has directed stakeholders to the appendix within the press release and the investor presentation filed on Form 8-K, available on its website.
Today the company's shares have moved 5.89% to a price of $25.435. Check out the company's full 8-K submission here.
