Total Revenue

7% decline (Q1 2025: $2,322.6M vs. Q1 2024: $2,495.9M)

Revenue fell across multiple segments and geographies. Notably, weaker performance in U.S. (–18.2%) and International markets (–23.3%) dragged overall revenue down compared to last year, reflecting cumulative challenges from reduced client demand and market headwinds. " " " "

MD&E Revenue

–7.4% (Q1 2025: $902.7M vs. Q1 2024: $973.3M)

MD&E experienced a notable decline likely from softer digital project-based offerings and reduced media spend relative to prior performance, representing a drag on overall revenue performance. " " "

IA&C Revenue

–10.6% (Q1 2025: $861.5M vs. Q1 2024: $963.8M)

IA&C revenue declined sharply due to net client losses in key sectors like auto, transportation, and retail, coupled with a continuation of downward trends from previous quarters, stressing this segment’s performance further relative to last year. " " "

SC&E Revenue

Virtually flat (Q1 2025: $558.4M vs. Q1 2024: $558.8M)

SC&E remained stable, indicating resilience in its portfolio – for example, sustaining public relations and experiential solutions, even as other segments suffered declines. " " "

U.S. Revenue

–18.2% (Q1 2025: $1,360.0M vs. Q1 2024: $1,662.0M)

U.S. revenue faced significant declines, driven by notable client losses and reduced spending in domestic markets compared to the previous period, underscoring challenges in maintaining a robust client base within key U.S. sectors. " "

International Revenue

–23.3% (Q1 2025: $640.0M vs. Q1 2024: $833.9M)

International revenue fell steeply, with factors including currency headwinds and regional market slowdowns exacerbating the decline, a worsening trend relative to previous (more modest) declines. " "

Operating Income

From +$184.2M (Q1 2024) to –$42.0M (Q1 2025)

A dramatic reversal driven by restructuring charges. Restructuring expenses surged from $0.6M in Q1 2024 to $203.3M in Q1 2025, overwhelming organic operating performance and contributing to an overall negative operating income despite prior profitability. " "

Net Income

From $113.6M (Q1 2024) to –$85.3M (Q1 2025)

Net income turned negative due to multiple headwinds, including lower revenue, increased operating expenses, and heavy restructuring costs. Unlike Q1 2024’s positive results, the combination of higher non-operating expenses and structural adjustments led to a substantial swing into losses. " " " "

Diluted EPS

From $0.29 (Q1 2024) to –$0.23 (Q1 2025)

Diluted EPS deteriorated significantly, reflecting the combined impact of restructuring (and associated deal costs), revenue declines, and non-operating expenses, which reversed prior gains and resulted in a negative per-share metric. " " " "

Organic Revenue Decrease

FY 2025

1% to 2% decrease "

1% to 2% decrease "

no change

Adjusted EBITDA Margin

FY 2025

no prior guidance

16.6% "

no prior guidance

Foreign Exchange Impact

FY 2025

no prior guidance

negative 60 basis points "

no prior guidance

Restructuring Charges

FY 2025

no prior guidance

$300 million to $350 million " "

no prior guidance

Run Rate Annualized Expense Savings

FY 2025

no prior guidance

similar magnitude as eventual charge " "

no prior guidance

Quarterly Revenue Phasing

FY 2025

Revenue phasing: more challenging in H1, easing in H2 "

no current guidance

no current guidance

Restructuring and Cost Savings

FY 2025

Restructuring program aimed at significant structural expense savings "

no current guidance

no current guidance

Restructuring and Cost-Saving Initiatives

Previously detailed across Q4 2024, Q3 2024 and Q2 2024 with discussions of centralization, cost-savings goals, and a mix of cash and non-cash charges (e.g., write-offs and restructuring expenses) " " "

Q1 2025 highlights an upward revision in expected restructuring charges and provides detailed components (including a 50-50 cash/non-cash split) " " "

Consistent focus with slightly higher expected charges and clear delivery of structural savings.

Strategic AI and Technology Integration

Extensively covered in Q4, Q3 and Q2 with initiatives like the launch of the Interact platform, AI Console, partnerships with major tech firms, and integration of AI into operations and client services " "

Q1 2025 continues the momentum by emphasizing AI adoption across internal processes and client services, with further rollouts of the AI Console and integration of Acxiom’s data "

Continuous adoption and deepening integration with incremental advancements.

Client Demand and New Business Activity

Q4, Q3, and Q2 showcased moderate-to-strong engagement accompanied by several new wins, though tempered by cautious budgeting due to macro uncertainties " "

Q1 2025 reports stable client activity with ongoing scenario planning amid enduring macro uncertainty; new business wins are steady but reflective of the broader market caution "

Steady but cautious, with client activity remaining stable despite macro headwinds.

Competitive Pricing Environment

Q4 highlighted competitive pressures driven by principal media pricing; Q3 and Q2 noted an emphasis on efficiency and cost discipline in media buying " "

Q1 2025 indicates that the competitive pricing environment remains unchanged, with no marked shifts in pricing strategy "

Stable competitive environment with no dramatic changes in pricing dynamics.

Macroeconomic and Geopolitical Uncertainty

Q4, Q3 and Q2 discussed pervasive global and domestic uncertainties influencing client budgets and decision-making " "

Q1 2025 continues to reflect a cautious outlook with ongoing scenario planning and adaptive measures, as clients navigate persistent uncertainty "

Persistent uncertainty with adaptive strategies, and sentiment remains cautious over time.

Asset Divestitures and Portfolio Optimization

Q4 and Q3 detailed active divestitures (notably R/GA and Huge) and strategic evaluations to reoptimize the asset mix; Q2 discussed strategic alternatives for underperforming digital agencies " " "

Q1 2025 notes that net divestitures (e.g., from RGA and Huge) had a measurable negative impact on revenue, continuing the trend of portfolio optimization "

Ongoing strategic divestitures with an initial negative revenue impact, reflecting continued portfolio reshaping.

Strategic M&A and Merger Synergies

Q4, Q3 and Q2 extensively addressed the strategic rationale, synergy targets (e.g. $750M) and potential M&A opportunities, with a strong emphasis on the Omnicom merger " " "

Q1 2025 emphasizes strong shareholder support for the Omnicom merger, with clear forecasts on cost synergies and anticipated benefits starting in 2026 "

Increased focus on merger synergies with heightened strategic emphasis as the merger nears completion.

Sector Performance

Q4, Q3, and Q2 provided detailed sector-by-sector analyses—showing mixed performances with strengths in media and some challenges in healthcare and tech, alongside emerging opportunities in commerce and retail media " " "

Q1 2025 offers a nuanced mix: robust performance in media and technology is partially offset by challenges in healthcare due to key client losses, maintaining a complex and varied sector landscape "

Disparate performance persists across sectors, with some areas performing well (media) and others facing challenges (healthcare, tech).

Revenue Guidance and Growth Expectations

Earlier quarters (Q4, Q3, Q2) discussed modest organic growth expectations and revenue pressures, with guidance reflecting cautious outlooks and adjustments for headwinds " " "

Q1 2025 reaffirms guidance of an organic net revenue decrease of 1% to 2%, with Q1 showing measurable declines and underlying business growth remaining modest " " "

Continued pressure on revenue growth with a cautious outlook and minor adjustments reflecting persistent market headwinds.

Expansion into Principal-Based Media Buying

Q2, Q3 and Q4 detailed initiatives to roll out principal-based media buying internationally, highlighting its strategic importance and early client interest " " "

Q1 2025 reports no significant shift or uptake in principal-based media buying activity, with media trends remaining steady across channels "

An area expected to drive future growth remains underutilized in Q1, suggesting a lag before the model gains significant traction.

Integration of Creativity with Data and Technology

Q2, Q3 and Q4 consistently underscored the strategic blend of creativity with data and technology via innovations like the Interact platform, AI integrations, and unified content supply chains " " "

Q1 2025 continues to stress integration efforts by leveraging Acxiom’s data and deploying AI tools like the AI Console, maintaining the focus on creative, data-driven approaches to improve marketing outcomes "

Consistent and stable emphasis on merging creativity with technology, with continuous innovation and a positive sentiment about its impact.

Non-Cash Impairment Charges

Q3 featured a substantial non-cash goodwill impairment of $232.1M and Q4 discussed non-cash components within restructuring charges, highlighting adjustments for asset write-downs " "

Q1 2025 mentions the non-cash portion of restructuring charges (with roughly 50% being non-cash), maintaining transparency in reporting these items; Q2 had no mention of impairment charges " "

Stable recognition of non-cash charges as a key component of restructuring metrics; reporting remains consistent, aside from one period without mention.