Interpublic Group’s (IPG) organic revenue declined 3.5% in the second quarter of 2025, but the holding company also posted a record Q2 adjusted EBITA margin of 18.1% as it cuts costs ahead of its acquisition by Omnicom Group.
Reporting results on Thursday morning, IPG reaffirmed its full-year guidance of an organic net revenue decline between 1% to 2%.
The Numbers
$2.2 billion – Net revenue in Q2 2025, down 6.6% year-over-year
$393.7 million – Adjusted EBITA for Q2
$118 million – Restructuring charges for the quarter
$11 million – Omnicom deal-related costs in Q2
6% – year-over-year organic headcount reduction
Watercooler Talk
Client losses in 2024 continued to weigh on IPG’s organic growth in Q2, with the three largest accounting for a 5.5% drag. But CEO Philippe Krakowsky pointed to quarterly growth in media and health care and said that new business performance this year “is showing marked improvement as well,” pointing to momentum in the food and beverage, financial services, and tech and telecom sectors.
He also emphasized IPG’s cost cutting and restructuring efforts ahead of its acquisition by Omnicom, adding that the holding company expects to exceed its initial objectives for “enterprise re-design, client service delivery enhancements, and ongoing operating efficiencies.” Headcount reduced 6% year over year.
Krakowsky also talked up IPG’s Interact AI platform, which he said is being used daily by 40% of employees. IPG is also launching Agentic Systems for Commerce, a new AI-powered commerce platform being piloted by nearly two dozen global clients.
Krakowsky said the company has now secured FTC clearance in the U.S. for its acquisition by Omnicom and is “solidly on track to see the transaction completed in the second half of the year.”
Key Quote
“It was always our ambition to make Interpublic the strongest possible company as it came into the merged organization, and we are clearly making good on that goal,” said Krakowsky.