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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q

| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025
or

| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 1-6686
THE INTERPUBLIC GROUP OF COMPANIES, INC.
(Exact name of registrant as specified in its charter)

Delaware |  | 13-1024020
(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)

909 Third Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
(212)704-1200
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Common Stock, par value $0.10 per share | IPG | The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer |  | ☒ |  | Accelerated Filer |  | ☐
Non-accelerated Filer |  | ☐ |  | Smaller Reporting Company |  | ☐
|  |  |  | Emerging Growth Company |  | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý
The number of shares of the registrant’s common stock outstanding as of April 17, 2025 was 369,734,706.

INDEX

| Page
PART I. FINANCIAL INFORMATION
Item 1. | Financial Statements (Unaudited) |
| Consolidated Statements of Operations for the Three Months Ended March 31, 2025 and 2024 | 3
| Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2025 and 2024 | 4
| Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 | 5
| Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024 | 6
| Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024 | 7
| Notes to Consolidated Financial Statements | 8
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 44
Item 4. | Controls and Procedures | 44
PART II. OTHER INFORMATION
Item 1. | Legal Proceedings | 45
Item 1A. | Risk Factors | 45
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 45
Item 3. | Defaults Upon Senior Securities | 45
Item 4. | Mine Safety Disclosures | 45
Item 5. | Other Information | 45
Item 6. | Exhibits | 45
INDEX TO EXHIBITS | 47
SIGNATURES | 48

1

INFORMATION REGARDING FORWARD-LOOKING DISCLOSURE
This quarterly report on Form 10-Q contains forward-looking statements. Statements in this report that are not historical facts, including statements regarding goals, intentions, and expectations as to future plans, trends, events, or future results of operations or financial position, constitute forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “project,” “forecast,” “plan,” “intend,” “could,” “would,” “should,” “will likely result” or comparable terminology are intended to identify forward-looking statements. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results and outcomes to differ materially from those reflected in the forward-looking statements.
On December 8, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Omnicom Group Inc. (“Omnicom”), pursuant to which a merger subsidiary of Omnicom will merge with and into IPG, with IPG surviving the merger as a direct wholly owned subsidiary of Omnicom. The forward-looking statements in this report, other than the statements regarding the proposed merger transaction with Omnicom, do not assume the consummation of the proposed transactions unless specifically stated otherwise.
Actual results and outcomes could differ materially for a variety of reasons, including, among others:
•risks relating to the pending merger transaction with Omnicom, including: the occurrence of any event, change, or other circumstances that could delay or prevent closing of the proposed transactions with Omnicom, or give rise to the termination of the Merger Agreement; unanticipated costs or restrictions resulting from regulatory review of the merger transactions; restrictions on our business activities imposed by the Merger Agreement; costs incurred in connection with the merger and subsequent integration with Omnicom; litigation risks relating to the merger; any failure to integrate successfully the business and operations of Omnicom and IPG in the expected time frame, to realize all of the anticipated benefits of the combination or to effectively manage the combined companies’ expanded operations; and any merger-related loss of clients, service providers, vendors, or other business counterparties;
•the effects of a challenging economy on the demand for our advertising and marketing services, on our clients’ financial condition and on our business or financial condition;
•our ability to attract new clients and retain existing clients, including as a result of the announced merger transaction with Omnicom;
•our ability to retain and attract key employees, including as a result of the announced merger transaction with Omnicom;
•unanticipated changes in the competitive environment in the marketing and communications services industry, including risks and challenges from new or developing technologies such as artificial intelligence (AI);
•risks associated with the effects of global, national and regional economic and political conditions, including counterparty risks and fluctuations in interest rates, inflation rates and currency exchange rates;
•the economic or business impact of military or political conflict in key markets, or any significant market disruptions as a result of factors like public health crises;
•developments from changes in the regulatory and legal environment for advertising and marketing services companies around the world, including laws and regulations related to data protection and consumer privacy;
•the impact on our business as a result of general or directed cybersecurity events; and
•risks associated with assumptions we make in connection with our critical accounting estimates, including changes in assumptions associated with any effects of a challenging economy, and potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments.
Investors should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business, including those outlined under Item 1A, Risk Factors, in our annual report on Form 10-K and our quarterly reports on Form 10-Q. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update or revise publicly any of them in light of new information, future events, or otherwise.
2

Table of Contents
PART I – FINANCIAL INFORMATION

Item 1. | Financial Statements (Unaudited)

THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
REVENUE: |  |  |  |  |  |  |
Revenue before billable expenses | $ | 1,996.3 |  |  | $ | 2,182.9 |  |  |  |  |
Billable expenses | 326.3 |  |  | 313.0 |  |  |  |  |
Total revenue | 2,322.6 |  |  | 2,495.9 |  |  |  |  |
OPERATING EXPENSES: |  |  |  |  |  |  |
Salaries and related expenses | 1,414.4 |  |  | 1,572.8 |  |  |  |  |
Office and other direct expenses | 319.2 |  |  | 322.1 |  |  |  |  |
Billable expenses | 326.3 |  |  | 313.0 |  |  |  |  |
Cost of services | 2,059.9 |  |  | 2,207.9 |  |  |  |  |
Selling, general and administrative expenses | 40.4 |  |  | 38.0 |  |  |  |  |
Depreciation and amortization | 61.0 |  |  | 65.2 |  |  |  |  |
Restructuring charges | 203.3 |  |  | 0.6 |  |  |  |  |
Total operating expenses | 2,364.6 |  |  | 2,311.7 |  |  |  |  |
OPERATING INCOME (LOSS) | (42.0) |  |  | 184.2 |  |  |  |  |
EXPENSES AND OTHER INCOME: |  |  |  |  |  |  |
Interest expense | (50.1) |  |  | (62.8) |  |  |  |  |
Interest income | 34.6 |  |  | 48.7 |  |  |  |  |
Other expense, net | (36.9) |  |  | (9.5) |  |  |  |  |
Total (expenses) and other income | (52.4) |  |  | (23.6) |  |  |  |  |
INCOME (LOSS) BEFORE INCOME TAXES | (94.4) |  |  | 160.6 |  |  |  |  |
Provision for income taxes | (9.2) |  |  | 47.3 |  |  |  |  |
INCOME (LOSS) OF CONSOLIDATED COMPANIES | (85.2) |  |  | 113.3 |  |  |  |  |
Equity in net income (loss) of unconsolidated affiliates | (0.1) |  |  | 0.3 |  |  |  |  |
NET INCOME (LOSS) | (85.3) |  |  | 113.6 |  |  |  |  |
Net income attributable to non-controlling interests | (0.1) |  |  | (3.2) |  |  |  |  |
NET INCOME (LOSS) AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | (85.4) |  |  | $ | 110.4 |  |  |  |  |
Earnings (Loss) per share available to IPG common stockholders: |  |  |  |  |  |  |
Basic | $ | (0.23) |  |  | $ | 0.29 |  |  |  |  |
Diluted | $ | (0.23) |  |  | $ | 0.29 |  |  |  |  |
Weighted-average number of common shares outstanding: |  |  |  |  |  |  |
Basic | 372.5 |  | 378.4 |  |  |  |
Diluted | 375.0 |  | 380.6 |  |  |  |

The accompanying notes are an integral part of these unaudited financial statements.
3

Table of Contents
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in Millions)
(Unaudited)

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
NET INCOME (LOSS) | $ | (85.3) |  |  | $ | 113.6 |  |  |  |  |
OTHER COMPREHENSIVE INCOME (LOSS) |  |  |  |  |  |  |
Foreign currency translation: |  |  |  |  |  |  |
Foreign currency translation adjustments | 64.8 |  |  | (52.3) |  |  |  |  |
Reclassification adjustments recognized in net income | 20.3 |  |  | — |  |  |  |  |
| 85.1 |  |  | (52.3) |  |  |  |  |
Derivative instruments: |  |  |  |  |  |  |
Recognition of previously unrealized net gain in net income | (1.0) |  |  | (0.9) |  |  |  |  |
Income tax effect | 0.3 |  |  | 0.2 |  |  |  |  |
| (0.7) |  |  | (0.7) |  |  |  |  |
Defined benefit pension and other postretirement plans: |  |  |  |  |  |  |
Net actuarial (loss) gain for the period | (0.2) |  |  | 0.8 |  |  |  |  |
Amortization of unrecognized losses, transition obligation and prior service cost included in net income | 2.2 |  |  | 1.9 |  |  |  |  |
Other | (0.2) |  |  | 0.1 |  |  |  |  |
Income tax effect | (0.5) |  |  | (0.5) |  |  |  |  |
| 1.3 |  |  | 2.3 |  |  |  |  |
Other comprehensive income (loss), net of tax | 85.7 |  |  | (50.7) |  |  |  |  |
TOTAL COMPREHENSIVE INCOME | 0.4 |  |  | 62.9 |  |  |  |  |
Less: comprehensive income attributable to non-controlling interests | 0.3 |  |  | 2.0 |  |  |  |  |
COMPREHENSIVE INCOME ATTRIBUTABLE TO IPG | $ | 0.1 |  |  | $ | 60.9 |  |  |  |  |

The accompanying notes are an integral part of these unaudited financial statements.
4

Table of Contents
THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Millions)
(Unaudited)

| March 31, 2025 |  | December 31, 2024
ASSETS: |  |  |
Cash and cash equivalents | $ | 1,869.0 |  |  | $ | 2,187.1 |
Accounts receivable, net of allowance of $35.5 and $37.0, respectively | 4,644.1 |  |  | 5,649.7 |
Accounts receivable, billable to clients | 2,163.4 |  |  | 2,088.4 |
Prepaid expenses | 670.3 |  |  | 552.4 |
Assets held for sale | 6.5 |  |  | 51.4 |
Other current assets | 73.1 |  |  | 77.0 |
Total current assets | 9,426.4 |  |  | 10,606.0 |
Property and equipment, net of accumulated depreciation and amortization of $1,275.9 and $1,258.1, respectively | 540.0 |  |  | 566.8 |
Deferred income taxes | 272.5 |  |  | 249.2 |
Goodwill | 4,756.1 |  |  | 4,689.4 |
Other intangible assets | 665.7 |  |  | 659.9 |
Operating lease right-of-use assets | 932.0 |  |  | 1,037.8 |
Other non-current assets | 532.8 |  |  | 516.7 |
TOTAL ASSETS | $ | 17,125.5 |  |  | $ | 18,325.8 |
LIABILITIES: |  |  |
Accounts payable | $ | 7,406.5 |  |  | $ | 8,286.1 |
Accrued liabilities | 561.4 |  |  | 661.6 |
Contract liabilities | 598.4 |  |  | 509.0 |
Short-term borrowings | 34.0 |  |  | 40.5 |
Current portion of long-term debt | 0.1 |  |  | 0.1 |
Current portion of operating leases | 240.4 |  |  | 237.2 |
Liabilities held for sale | — |  |  | 23.5 |
Total current liabilities | 8,840.8 |  |  | 9,758.0 |
Long-term debt | 2,921.3 |  |  | 2,920.5 |
Non-current operating leases | 1,010.0 |  |  | 1,056.3 |
Deferred compensation | 180.7 |  |  | 202.3 |
Other non-current liabilities | 479.2 |  |  | 478.6 |
TOTAL LIABILITIES | 13,432.0 |  |  | 14,415.7 |
Redeemable non-controlling interests (see Note 6) | 48.6 |  |  | 45.6 |
STOCKHOLDERS’ EQUITY: |  |  |
Common stock | 37.3 |  |  | 37.2 |
Additional paid-in capital | 433.8 |  |  | 432.6 |
Retained earnings | 4,230.7 |  |  | 4,440.2 |
Accumulated other comprehensive loss, net of tax | (1,027.1) |  |  | (1,112.6) |
| 3,674.7 |  |  | 3,797.4 |
Less: Treasury stock | 90.6 |  |  | — |
Total IPG stockholders’ equity | 3,584.1 |  |  | 3,797.4 |
Non-controlling interests | 60.8 |  |  | 67.1 |
TOTAL STOCKHOLDERS’ EQUITY | 3,644.9 |  |  | 3,864.5 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 17,125.5 |  |  | $ | 18,325.8 |

The accompanying notes are an integral part of these unaudited financial statements.
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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Millions)
(Unaudited)

| Three months ended March 31,
| 2025 |  | 2024
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
Net income (loss) | $ | (85.3) |  |  | $ | 113.6 |
Adjustments to reconcile net income to net cash used in operating activities: |  |  |
Deferred income tax | (58.7) |  |  | 6.0 |
Net amortization of bond discounts and deferred financing costs | 0.1 |  |  | 0.3 |
Provision for uncollectible receivables | 1.2 |  |  | 1.7 |
Amortization of restricted stock and other non-cash compensation | 12.2 |  |  | 16.4 |
Net losses on sales of businesses | 36.4 |  |  | 6.8 |
Depreciation and amortization | 61.0 |  |  | 65.2 |
Restructuring charges | 109.2 |  |  | 0.6 |
Other | 2.9 |  |  | 8.3 |
Changes in assets and liabilities, net of acquisitions and divestitures, providing (using) cash: |  |  |
Accounts receivable | 1,073.8 |  |  | 1,369.4 |
Accounts receivable, billable to clients | (45.6) |  |  | 54.0 |
Prepaid expenses | (154.8) |  |  | (125.4) |
Other current assets | 4.4 |  |  | 38.7 |
Accounts payable | (961.4) |  |  | (1,532.6) |
Accrued liabilities | (84.3) |  |  | (174.4) |
Contract liabilities | 81.8 |  |  | 30.0 |
Other non-current assets and liabilities | (29.9) |  |  | (36.0) |
Net cash used in operating activities | (37.0) |  |  | (157.4) |
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
Acquisitions, net of cash acquired | (48.4) |  |  | — |
Capital expenditures | (21.5) |  |  | (35.1) |
Net proceeds from sale of businesses, net of cash sold | 11.4 |  |  | (16.4) |
Other investing activities | 0.3 |  |  | 1.5 |
Net cash used in investing activities | (58.2) |  |  | (50.0) |
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
Common stock dividends | (125.3) |  |  | (126.6) |
Repurchases of common stock | (90.0) |  |  | (62.4) |
Tax payments for employee shares withheld | (15.4) |  |  | (13.5) |
Distributions to non-controlling interests | (7.4) |  |  | (4.3) |
Acquisition-related payments | (5.8) |  |  | — |
Net decrease in short-term borrowings | (4.1) |  |  | (20.4) |
Other financing activities | — |  |  | 0.1 |
Net cash used in financing activities | (248.0) |  |  | (227.1) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 23.4 |  |  | (20.0) |
Net decrease in cash, cash equivalents and restricted cash | (319.8) |  |  | (454.5) |
Cash, cash equivalents and restricted cash at beginning of period | 2,196.4 |  |  | 2,395.1 |
Cash, cash equivalents and restricted cash at end of period | $ | 1,876.6 |  |  | $ | 1,940.6 |

The accompanying notes are an integral part of these unaudited financial statements.
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THE INTERPUBLIC GROUP OF COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts in Millions)
(Unaudited)

| Common Stock |  | Additional Paid-In Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss, Net of Tax |  | Treasury Stock |  |  |  | Total IPG Stockholders’ Equity |  | Non-controlling Interests |  | Total Stockholders’ Equity
| Shares |  | Amount |
Balance at December 31, 2024 | 372.4 |  |  | $ | 37.2 |  |  | $ | 432.6 |  |  | $ | 4,440.2 |  |  | $ | (1,112.6) |  |  | $ | 0.0 |  |  |  |  | $ | 3,797.4 |  |  | $ | 67.1 |  |  | $ | 3,864.5 |
Net Income (loss) |  |  |  |  |  |  | (85.4) |  |  |  |  |  |  |  |  | (85.4) |  |  | 0.1 |  |  | (85.3) |
Other comprehensive income |  |  |  |  |  |  |  |  | 85.5 |  |  |  |  |  |  | 85.5 |  |  | 0.2 |  |  | 85.7 |
Reclassifications related to redeemable non-controlling interests |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.6 |  |  | 0.6 |
Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7.4) |  |  | (7.4) |
Change in redemption value of redeemable non-controlling interests |  |  |  |  |  |  | 0.0 |  |  |  |  |  |  |  |  | 0.0 |  |  |  |  | 0.0 |
Repurchase of common stock |  |  |  |  |  |  |  |  |  |  | (90.6) |  |  |  |  | (90.6) |  |  |  |  | (90.6) |
Common stock dividends ($0.33 per share) |  |  |  |  |  |  | (124.1) |  |  |  |  |  |  |  |  | (124.1) |  |  |  |  | (124.1) |
Stock-based compensation | 1.8 |  |  | 0.2 |  |  | 17.2 |  |  |  |  |  |  |  |  |  |  | 17.4 |  |  |  |  | 17.4 |
Shares withheld for taxes | (0.6) |  |  | (0.1) |  |  | (15.9) |  |  |  |  |  |  |  |  |  |  | (16.0) |  |  |  |  | (16.0) |
Other |  |  |  |  | (0.1) |  |  |  |  |  |  |  |  |  |  | (0.1) |  |  | 0.2 |  |  | 0.1 |
Balance at March 31, 2025 | 373.6 |  |  | $ | 37.3 |  |  | $ | 433.8 |  |  | $ | 4,230.7 |  |  | $ | (1,027.1) |  |  | $ | (90.6) |  |  |  |  | $ | 3,584.1 |  |  | $ | 60.8 |  |  | $ | 3,644.9 |

| Common Stock |  | Additional Paid-In Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss, Net of Tax |  | Treasury Stock |  | Total IPG Stockholders’ Equity |  | Non-controlling Interests |  | Total Stockholders’ Equity
| Shares |  | Amount |
Balance at December 31, 2023 | 383.0 |  |  | $ | 38.3 |  |  | $ | 728.5 |  |  | $ | 4,254.5 |  |  | $ | (946.2) |  |  | $ | (132.5) |  |  | $ | 3,942.6 |  |  | $ | 61.2 |  |  | $ | 4,003.8 |
Net income |  |  |  |  |  |  | 110.4 |  |  |  |  |  |  | 110.4 |  |  | 3.2 |  |  | 113.6 |
Other comprehensive loss |  |  |  |  |  |  |  |  | (49.5) |  |  |  |  | (49.5) |  |  | (1.2) |  |  | (50.7) |
Reclassifications related to redeemable non-controlling interests |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 0.3 |  |  | 0.3 |
Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4.3) |  |  | (4.3) |
Change in redemption value of redeemable non-controlling interests |  |  |  |  |  |  | 0.0 |  |  |  |  |  |  | 0.0 |  |  |  |  | — |
Repurchases of common stock |  |  |  |  |  |  |  |  |  |  | (62.9) |  |  | (62.9) |  |  |  |  | (62.9) |
Common stock dividends ($0.33 per share) |  |  |  |  |  |  | (125.8) |  |  |  |  |  |  | (125.8) |  |  |  |  | (125.8) |
Stock-based compensation | 0.9 |  |  |  |  | 22.8 |  |  |  |  |  |  |  |  | 22.8 |  |  |  |  | 22.8 |
Shares withheld for taxes | (0.4) |  |  |  |  | (13.3) |  |  |  |  |  |  |  |  | (13.3) |  |  |  |  | (13.3) |
Other |  |  |  |  | (0.2) |  |  |  |  |  |  |  |  | (0.2) |  |  | (0.2) |  |  | (0.4) |
Balance at March 31, 2024 | 383.5 |  |  | $ | 38.3 |  |  | $ | 737.8 |  |  | $ | 4,239.1 |  |  | $ | (995.7) |  |  | $ | (195.4) |  |  | $ | 3,824.1 |  |  | $ | 59.0 |  |  | $ | 3,883.1 |

The accompanying notes are an integral part of these unaudited financial statements.
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Notes to Consolidated Financial Statements
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 1: Basis of Presentation
The unaudited Consolidated Financial Statements have been prepared by The Interpublic Group of Companies, Inc. and its subsidiaries (the “Company,” “IPG,” “we,” “us” or “our”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting interim financial information on Form 10-Q. Accordingly, they do not include certain information and disclosures required for complete financial statements. The effects of heightened macroeconomic uncertainty have impacted and may continue to impact our results of operations, cash flows and financial position. The Company’s Consolidated Financial Statements presented herein reflect the latest estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company believes it has used reasonable estimates and assumptions to assess the fair values of goodwill, long-lived assets and indefinite-lived intangible assets; assessment of the annual effective tax rate; valuation of deferred income taxes and allowance for expected credit losses on future uncollectible accounts receivable.
Actual results may differ from these estimates under different assumptions or conditions and further decline in macroeconomic conditions or increasing interest rates could have a negative impact on these estimates, including the fair value of certain assets. The consolidated results for interim periods are not necessarily indicative of results for the full year and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”).
We conduct our business across three reportable segments described in Note 12. The three reportable segments are: Media, Data & Engagement Solutions ("MD&E"), Integrated Advertising & Creativity Led Solutions ("IA&C"), and Specialized Communications & Experiential Solutions ("SC&E").
Cost of services is comprised of the expenses of our revenue-producing reportable segments, including salaries and related expenses, office and other direct expenses and billable expenses, as well as an allocation of the centrally managed expenses from "Corporate and Other" group. Office and other direct expenses include rent expense, professional fees, certain expenses incurred by our staff in servicing our clients and other costs directly attributable to client engagements.
Selling, general and administrative expenses are primarily the unallocated expenses from Corporate and Other, excluding depreciation and amortization.
Depreciation and amortization of the fixed assets and intangible assets of the Company is disclosed as a separate operating expense.
Restructuring charges in 2025 consist of actions designed to transform our business, enhance our offerings and drive significant structural expense savings.
In the opinion of management, these unaudited Consolidated Financial Statements include all adjustments, consisting only of normal and recurring adjustments necessary for a fair statement of the information for each period contained therein. Certain reclassifications and immaterial adjustments have been made to prior-period financial statements to conform to the current-period presentation.
Note 2: Planned Acquisition of IPG by Omnicom
On December 8, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Omnicom Group Inc. (“Omnicom”) and EXT Subsidiary Inc., a direct wholly owned subsidiary of Omnicom (“Merger Sub”), pursuant to which Merger Sub will merge with and into IPG, with IPG surviving the merger as a direct wholly owned subsidiary of Omnicom.
As a result of the merger, each share of IPG common stock issued and outstanding immediately prior to the effective time of the merger (other than certain excluded shares) will be converted into the right to receive 0.344 shares of Omnicom common stock and, if applicable, cash in lieu of fractional shares. The exchange ratio is fixed and will not be adjusted to reflect stock price changes prior to closing the merger.
Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined company and IPG shareholders will own 39.4%, on a fully diluted basis. As a result of the merger, we will cease to be a publicly traded company.
The Merger Agreement contains customary representations, warranties, and covenants. The stock-for-stock transaction is expected to be tax-free to IPG shareholders and is expected to close in the second half of 2025, subject to required domestic and foreign regulatory approvals and other customary conditions.
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On March 12, 2025, each of Omnicom and Interpublic received a Request for Additional Information and Documentary Material (the "Second Request") from the U.S. Federal Trade Commission (FTC) in connection with Omnicom's proposed acquisition of Interpublic. The Second Request was issued under notification requirements of the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as amended.
On March 18, 2025, the shareholders of Omnicom and Interpublic each approved the acquisition of Interpublic at each company's special meeting of stockholders held that day.
If the Merger Agreement is terminated under certain circumstances, including if Omnicom terminates the agreement as a result of a willful and material breach of our non-solicitation obligations under the Merger Agreement, then we will be obligated to pay a termination fee of $439.0 to Omnicom (the “IPG Termination Fee”). We will also be obligated to pay the IPG Termination Fee if we breach the Merger Agreement in a manner that Omnicom’s closing conditions not being satisfied and the breach cannot be cured by the specified outside date and, in any such case, within 12 months after the termination date a competing proposal to acquire 50% or more of the business, assets or outstanding shares of IPG has been publicly announced and consummated, or a definitive agreement in respect of such competing proposal has been signed.
During the first quarter of 2025, $4.8 of deal costs were incurred related to the planned acquisition of IPG by Omnicom, which were recorded within selling, general and administrative expenses.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 3: Revenue
Disaggregation of Revenue
We have three reportable segments as of March 31, 2025: MD&E, IA&C and SC&E, as further discussed in Note 12. MD&E principally generates revenue from providing global media and communications services, digital services and products, advertising and marketing technology, e‐commerce services, data management and analytics, strategic consulting, and digital brand experience. IA&C principally generates revenue from providing advertising, corporate and brand identity services, and strategic consulting. SC&E generates revenue from providing best-in-class global public relations and communications services, events, sports and entertainment marketing, and strategic consulting.
Our agencies are located in over 100 countries, including every significant world market. Our geographic revenue breakdown is listed below.

| Three months ended March 31, |  |
Total revenue: | 2025 |  | 2024 |  |  |  |
United States | $ | 1,573.9 |  |  | $ | 1,662.0 |  |  |  |  |
International: |  |  |  |  |  |  |
United Kingdom | 182.3 |  |  | 210.9 |  |  |  |  |
Continental Europe | 195.2 |  |  | 203.9 |  |  |  |  |
Asia Pacific | 147.1 |  |  | 173.1 |  |  |  |  |
Latin America | 79.1 |  |  | 92.6 |  |  |  |  |
Other | 145.0 |  |  | 153.4 |  |  |  |  |
Total International | 748.7 |  |  | 833.9 |  |  |  |  |
Total Consolidated | $ | 2,322.6 |  |  | $ | 2,495.9 |  |  |  |  |

| Three months ended March 31, |  |
Revenue before billable expenses: | 2025 |  | 2024 |  |  |  |
United States | $ | 1,358.2 |  |  | $ | 1,476.3 |  |  |  |  |
International: |  |  |  |  |  |  |
United Kingdom | 159.4 |  |  | 178.0 |  |  |  |  |
Continental Europe | 169.3 |  |  | 179.5 |  |  |  |  |
Asia Pacific | 119.3 |  |  | 142.8 |  |  |  |  |
Latin America | 72.5 |  |  | 87.1 |  |  |  |  |
Other | 117.6 |  |  | 119.2 |  |  |  |  |
Total International | 638.1 |  |  | 706.6 |  |  |  |  |
Total Consolidated | $ | 1,996.3 |  |  | $ | 2,182.9 |  |  |  |  |

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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)

MD&E | Three months ended March 31, |  |
Total revenue: | 2025 |  | 2024 |  |  |  |
United States | $ | 606.6 |  |  | $ | 637.7 |  |  |  |  |
International | 296.1 |  |  | 335.6 |  |  |  |  |
Total MD&E | $ | 902.7 |  |  | $ | 973.3 |  |  |  |  |
Revenue before billable expenses: |  |  |  |  |  |  |
United States | $ | 601.7 |  |  | $ | 633.5 |  |  |  |  |
International | 287.1 |  |  | 327.8 |  |  |  |  |
Total MD&E | $ | 888.8 |  |  | $ | 961.3 |  |  |  |  |

IA&C | Three months ended March 31, |  |
Total revenue: | 2025 |  | 2024 |  |  |  |
United States | $ | 542.9 |  |  | $ | 624.6 |  |  |  |  |
International | 318.6 |  |  | 339.2 |  |  |  |  |
Total IA&C | $ | 861.5 |  |  | $ | 963.8 |  |  |  |  |
Revenue before billable expenses: |  |  |  |  |  |  |
United States | $ | 516.4 |  |  | $ | 600.7 |  |  |  |  |
International | 264.2 |  |  | 280.7 |  |  |  |  |
Total IA&C | $ | 780.6 |  |  | $ | 881.4 |  |  |  |  |

SC&E | Three months ended March 31, |  |
Total revenue: | 2025 |  | 2024 |  |  |  |
United States | $ | 424.4 |  |  | $ | 399.7 |  |  |  |  |
International | 134.0 |  |  | 159.1 |  |  |  |  |
Total SC&E | $ | 558.4 |  |  | $ | 558.8 |  |  |  |  |
Revenue before billable expenses: |  |  |  |  |  |  |
United States | $ | 240.1 |  |  | $ | 242.1 |  |  |  |  |
International | 86.8 |  |  | 98.1 |  |  |  |  |
Total SC&E | $ | 326.9 |  |  | $ | 340.2 |  |  |  |  |

Contract Balances
The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.

| March 31, 2025 |  | December 31, 2024
Accounts receivable, net of allowance of $35.5 and $37.0, respectively | $ | 4,644.1 |  |  | $ | 5,649.7 |
Accounts receivable, billable to clients | 2,163.4 |  |  | 2,088.4 |
Contract assets | 48.7 |  |  | 50.1 |
Contract liabilities (deferred revenue) | 598.4 |  |  | 509.0 |

Contract assets are primarily comprised of contract incentives that are generally satisfied annually under the terms of our contracts and are transferred to accounts receivable when the right to payment becomes unconditional. Contract liabilities relate
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
to advance consideration received from customers under the terms of our contracts primarily related to reimbursements of third-party expenses, whether we act as principal or agent, and to a lesser extent, periodic retainer fees, both of which are generally recognized shortly after billing.
The majority of our contracts are for periods of one year or less with the exception of our data management contracts. For those contracts with a term of more than one year, we had approximately $579.3 of unsatisfied performance obligations as of March 31, 2025, which will be recognized as services are performed over the remaining contractual terms through 2030.
Note 4: Debt and Credit Arrangements
Long-Term Debt
A summary of the carrying amounts of our long-term debt is listed below.

| Effective Interest Rate |  | March 31, 2025 |  | December 31, 2024
4.650% Senior Notes due 2028 (less unamortized discount and issuance costs of $0.6 and $1.6, respectively) | 4.780% |  | $ | 497.8 |  |  | $ | 497.6 |
4.750% Senior Notes due 2030 (less unamortized discount and issuance costs of $2.1 and $3.1, respectively) | 4.920% |  | 644.8 |  |  | 644.6 |
2.400% Senior Notes due 2031 (less unamortized discount and issuance costs of $0.5 and $2.8, respectively) | 2.512% |  | 496.7 |  |  | 496.6 |
5.375% Senior Notes due 2033 (less unamortized discount and issuance costs of $3.2 and $2.6, respectively) | 5.650% |  | 294.2 |  |  | 294.0 |
3.375% Senior Notes due 2041 (less unamortized discount and issuance costs of $0.9 and $4.6, respectively) | 3.448% |  | 494.5 |  |  | 494.4 |
5.400% Senior Notes due 2048 (less unamortized discount and issuance costs of $2.5 and $4.4, respectively) | 5.480% |  | 493.1 |  |  | 493.1 |
Other notes payable and finance leases |  |  | 0.3 |  |  | 0.3 |
Total long-term debt |  |  | 2,921.4 |  |  | 2,920.6 |
Less: current portion |  |  | 0.1 |  |  | 0.1 |
Long-term debt, excluding current portion |  |  | $ | 2,921.3 |  |  | $ | 2,920.5 |

As of March 31, 2025 and December 31, 2024, the estimated fair value of the Company's long-term debt was $2,727.5 and $2,702.0, respectively. Refer to Note 13 for details.
Credit Agreement
We maintain a committed corporate credit facility, originally dated as of July 18, 2008, which has been amended and restated from time to time (the "Credit Agreement"). We use our Credit Agreement to increase our financial flexibility, to provide letters of credit primarily to support obligations of our subsidiaries and to support our commercial paper program. On May 29, 2024, we amended and restated the Credit Agreement. As amended, among other things, the maturity date of the Credit Agreement was extended to May 29, 2029, and the cost structure of the Credit Agreement was changed. The Credit Agreement continues to include a required leverage ratio of not more than 3.50 to 1.00, among other customary covenants, including limitations on our liens and the liens of our consolidated subsidiaries and limitations on the incurrence of subsidiary debt. At the election of the Company, the leverage ratio may be changed to not more than 4.00 to 1.00 for four consecutive quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
The Credit Agreement is a revolving facility, under which amounts borrowed by us or any of our subsidiaries designated under the Credit Agreement may be repaid and reborrowed, subject to an aggregate lending limit of $1,500.0, or the equivalent in other currencies. The Company has the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250.0, provided the Company receives commitments for such increases and satisfies certain other conditions. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit of $50.0, or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured. As of March 31, 2025, there were no borrowings under the Credit Agreement; however, we had $9.3 of letters of credit under the Credit Agreement, which reduced our total availability to $1,490.7. We were in compliance with all of our covenants in the Credit Agreement as of March 31, 2025.
Uncommitted Lines of Credit
We also have uncommitted lines of credit with various banks that permit borrowings at variable interest rates and that are primarily used to fund working capital needs. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. If we lose access to these credit lines, we would have to provide funding directly to some of our operations. As of March 31, 2025, the Company had uncommitted lines of credit in an aggregate amount of $790.7, under which we had outstanding borrowings of $34.0 classified as short-term borrowings on our Consolidated Balance Sheet. The average amount outstanding during the first quarter of 2025 was $44.1 with a weighted-average interest rate of approximately 7.2%.
Commercial Paper
The Company is authorized to issue unsecured commercial paper up to a maximum aggregate amount outstanding at any time of $1,500.0. Borrowings under the program are supported by the Credit Agreement described above. Proceeds of the commercial paper are used for working capital and general corporate purposes, including the repayment of maturing indebtedness and other short-term liquidity needs. The maturities of the commercial paper vary but may not exceed 397 days from the date of issue. During the first quarter of 2025, there was no commercial paper activity and, as of March 31, 2025, there was no commercial paper outstanding.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 5: Earnings (Loss) Per Share
The following sets forth basic and diluted earnings (loss) per common share available to IPG common stockholders.

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Net income (loss) available to IPG common stockholders | $ | (85.4) |  |  | $ | 110.4 |  |  |  |  |
Weighted-average number of common shares outstanding - basic | 372.5 |  |  | 378.4 |  |  |  |  |
Dilutive effect of stock options and restricted shares | 2.5 |  |  | 2.2 |  |  |  |  |
Weighted-average number of common shares outstanding - diluted | 375.0 |  |  | 380.6 |  |  |  |  |
Earnings (loss) per share available to IPG common stockholders: |  |  |  |  |  |  |
Basic | $ | (0.23) |  |  | $ | 0.29 |  |  |  |  |
Diluted | $ | (0.23) |  |  | $ | 0.29 |  |  |  |  |

Note 6: Supplementary Data
Accrued Liabilities
The following table presents the components of accrued liabilities.

| March 31, 2025 |  | December 31, 2024
Salaries, benefits and related expenses | $ | 294.4 |  |  | $ | 432.1 |
Interest | 39.0 |  |  | 37.5 |
Income taxes payable | 46.4 |  |  | 80.3 |
Office and related expenses | 16.9 |  |  | 18.7 |
Acquisition obligations | 5.3 |  |  | 5.3 |
Restructuring charges | 61.0 |  |  | 0.4 |
Other | 98.4 |  |  | 87.3 |
Total accrued liabilities | $ | 561.4 |  |  | $ | 661.6 |

Other Expense, Net
Results of operations for the three months ended March 31, 2025 and 2024 include certain items that are not directly associated with our revenue-producing operations.

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Net losses on sales of businesses | $ | (36.4) |  |  | $ | (6.8) |  |  |  |  |
Other | (0.5) |  |  | (2.7) |  |  |  |  |
Total other expense, net | $ | (36.9) |  |  | $ | (9.5) |  |  |  |  |

Net losses on sales of businesses – During the three months ended March 31, 2025 and 2024, the amounts recognized were related to sales of business es and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, as held for sale within our MD&E and SC&E reportable segments. D uring the first quarter of 2025, the amounts recognized were primarily related to the sales of two digital specialist agencies within our MD&E segment, which closed in the fourth quarter of 2024 and the first quarter of 2025. The businesses so ld and held for sale pr imarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months.
Other – During the three months ended March 31, 2025 and 2024, the amounts recognized were primarily related to pension and postretirement costs, partially offset by changes in the fair market value of equity investments.
14

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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Share Repurchase Programs
On February 7, 2024, the Board authorized a share repurchase program to repurchase from time to time up to $320.0, excluding fees, of our common stock, which was in addition to any amounts remaining under the 2023 share repurchase program.
On February 11, 2025, the Board authorized a share repurchase program to repurchase from time to time up to $155.0, excluding fees, of our common stock, which was in addition to any amounts remaining under the 2024 share repurchase program.
We may effect such repurchases through open market purchases, trading plans established in accordance with U.S. Securities and Exchange Commission ("SEC") rules, derivative transactions or other means. The timing and amount of repurchases in future periods will depend on market conditions and other funding requirements.
The following table presents our share repurchase activity under our share repurchase programs for the three months ended March 31, 2025 and 2024.

| Three months ended March 31,
| 2025 |  | 2024
Number of shares repurchased | 3.4 |  |  | 1.9 |
Aggregate cost, including fees 1 | $ | 90.0 |  |  | $ | 62.4 |
Average price per share, including fees | $ | 26.39 |  |  | $ | 32.41 |

1 The amount for the three months ended March 31, 2025 and 2024 excludes $0.6 and $0.5 of estimated excise tax on net share repurchases, respectively.
We fully utilized the 2023 share repurchase programs during the second quarter of 2024. As of March 31, 2025, $80.1, and $155.0, excluding fees, remains available for repurchase under the 2024 and 2025 share repurchase programs, respectively. There are no expiration dates associated with the share repurchase programs.
Redeemable Non-controlling Interests
Many of our acquisitions include provisions under which the non-controlling equity owners may require us to purchase additional interests in a subsidiary at their discretion. Redeemable non-controlling interests are adjusted quarterly, if necessary, to their estimated redemption value, but not less than their initial fair value. Any adjustments to the redemption value impact retained earnings or additional paid in capital, except for foreign currency translation adjustments.
The following table presents changes in our redeemable non-controlling interests.

| Three months ended March 31,
| 2025 |  | 2024
Balance at beginning of period | $ | 45.6 |  |  | $ | 42.3 |
Change in related non-controlling interests balance | (0.6) |  |  | (0.3) |
Changes in redemption value of redeemable non-controlling interests: |  |  |
Additions | 8.6 |  |  | — |
Redemptions and other | (5.1) |  |  | (6.1) |
Redemption value adjustments | 0.0 |  |  | 0.0 |
Currency translation adjustments | 0.1 |  |  | 0.1 |
Balance at end of period | $ | 48.6 |  |  | $ | 36.0 |

Goodwill
Goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values.
The Company transferred certain agencies between operating segments as of January 1, 2025. We have allocated goodwill to our reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill
15

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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
impairment for all impacted reporting units immediately prior and subsequent to the reallocation and determined that no impairment existed.
The following table sets forth details of changes in goodwill by reportable segment of the Company:

| MD&E |  | IA&C |  | SC&E |  | Total
Balance at December 31, 2024 1 | $ | 2,332.8 |  |  | $ | 1,681.8 |  |  | $ | 674.8 |  |  | $ | 4,689.4 |
Acquisitions 2 | 42.2 |  |  | — |  |  | — |  |  | 42.2 |
Foreign currency and other | 5.8 |  |  | 15.6 |  |  | 3.1 |  |  | 24.5 |
Balance at March 31, 2025 1 | $ | 2,380.8 |  |  | $ | 1,697.4 |  |  | $ | 677.9 |  |  | $ | 4,756.1 |

1 The goodwill balances at December 31, 2024 and March 31, 2025 include $207.2 of accumulated impairment within the MD&E reportable segment.
2 The amount for the three months ended March 31, 2025 is due to the acquisition of an e-commerce, intelligence platform, for which we paid $48.4, net of cash acquired.
Note 7: Income Taxes
For the three months ended March 31, 2025, our income tax benefit was attributable to our loss on income before income taxes, which reflects restructuring charges of $203.3. The income tax benefit was negatively impacted by losses related to the disposition of previously held for sale entities for which we recorded a nominal tax benefit and by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances.
We have various tax years under examination by tax authorities in the U.S., in various countries, and in various states and localities, such as New York City, in which we have significant business operations. It is not yet known whether these examinations will, in the aggregate, result in our paying additional taxes. We believe our tax reserves are adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation. We regularly assess the likelihood of additional tax assessments in those jurisdictions and, if necessary, adjust our reserves as additional information or events require.
With respect to all tax years open to examination by U.S. federal, various state and local, and non-U.S. tax authorities, we currently anticipate that total unrecognized tax benefits will decrease by an amount between $90.0 and $100.0 in the next twelve months, a portion of which will affect our effective income tax rate, primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitations. This net decrease is related to various items of income and expense, primarily transfer pricing adjustments.
We are effectively settled with respect to U.S. federal income tax audits through 2020. With limited exceptions, we are no longer subject to state and local income tax audits for years prior to 2015 or non-U.S. income tax audits for years prior to 2011.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 8: Restructuring Charges
Restructuring charges for the three months ended March 31, 2025 consist of new actions taken in the first quarter of 2025. Restructuring charges for the three months ended March 31, 2024 represent adjustments to the 2022 Real Estate Actions, as well as adjustments to the actions taken in 2020. The components of restructuring charges for the three months ended March 31, 2025 and 2024 are listed below.

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Severance and termination costs | $ | 80.1 |  |  | $ | — |  |  |  |  |
Lease impairment costs | 70.3 |  |  | 0.6 |  |  |  |  |
Other related costs | 52.9 |  |  | — |  |  |  |  |
Total restructuring charges | $ | 203.3 |  |  | $ | 0.6 |  |  |  |  |

2025 Restructuring Actions
In the first quarter of 2025, management initiated restructuring actions, as previously announced, which are designed to transform our business, enhance our offerings and drive significant structural expense savings. Management currently expects the total charges in connection with these actions to be approximately $300.0 - $350.0, a portion being non-cash, which is subject to change upon finalization of the actions. Actions are expected to be completed by the end of 2025.
During the three months ended March 31, 2025, severance and termination costs related to a planned reduction in workforce of approximately 1,500 employees. The employee groups affected include executive, regional and account management as well as administrative, creative and media production personnel.
Lease impairment costs, which relate to the office spaces that were vacated as part of the 2025 restructuring actions and reduced our occupied global real estate footprint by approximately 430,000 square feet, included impairments of operating lease right-of-use assets. Lease impairments were calculated based on estimated fair values using market participant assumptions including forecasted net discounted cash flows related to the operating lease right-of-use assets.
Other related costs primarily include leasehold improvements and furniture and asset retirement obligations associated with office spaces vacated as part of the 2025 restructuring actions, third-party costs to assist in identifying areas of structural expense savings in relation to our restructuring initiatives, and write-offs of unutilized assets. Leasehold improvements and furniture and asset retirement obligations were estimated using market participant assumptions including forecasted net discounted cash flows.
A summary of the restructuring activities related to the 2025 restructuring actions is as follows:

| 2025 Restructuring Actions
| Restructuring Expense |  | Non-Cash Items |  | Cash Payments |  |  |  | Liability at March 31, 2025
Severance and termination costs | $ | 80.1 |  |  | $ | 2.2 |  |  | $ | 32.4 |  |  |  |  | $ | 45.5 |
Lease impairment costs | 70.3 |  |  | 70.2 |  |  | 0.1 |  |  |  |  | — |
Other related costs | 52.9 |  |  | 36.8 |  |  | 0.6 |  |  |  |  | 15.5 |
Total | $ | 203.3 |  |  | $ | 109.2 |  |  | $ | 33.1 |  |  |  |  | $ | 61.0 |

2022 Real Estate Actions & 2020 Restructuring Plan
There were no adjustments to the 2020 Plan and 2022 Real Estate Actions for the three months ended March 31, 2025. Net restructuring charges of $0.6 for the three months ended March 31, 2024, were related to adjustments to our restructuring actions taken in 2020 and 2022.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 9: Incentive Compensation Plans
We issue stock-based compensation and cash awards to our employees under various plans established by the Compensation and Leadership Talent Committee of the Board of Directors (the "Compensation Committee") and approved by our stockholders. We issued the following stock-based awards under the 2019 Performance Incentive Plan (the "2019 PIP") during the three months ended March 31, 2025.

| Awards |  | Weighted-average grant-date fair value (per award)
Restricted stock (units) | 1.5 |  |  | $ | 27.21 |
Performance-based stock (shares) | 2.9 |  |  | $ | 23.68 |
Cash-settled awards | 0.1 |  |  | $ | 27.20 |
Total stock-based compensation awards | 4.5 |  |  |

During the three months ended March 31, 2025, the Compensation Committee granted performance cash awards under the 2019 PIP and restricted cash awards under the 2020 Restricted Cash Plan with a total annual target value of $1.3 and $6.4, respectively. Cash awards are expensed over the vesting period, which is typically three years for performance cash awards and two years or three years for restricted cash awards.
Note 10: Accumulated Other Comprehensive Loss, Net of Tax
The following tables present the changes in accumulated other comprehensive loss, net of tax, by component.

| Foreign Currency Translation Adjustments |  |  |  | Derivative Instruments |  | Defined Benefit Pension and Other Postretirement Plans |  | Total
Balance as of December 31, 2024 | $ | (940.8) |  |  |  |  | $ | 30.7 |  |  | $ | (202.5) |  |  | $ | (1,112.6) |
Other comprehensive income (loss) before reclassifications | 64.6 |  |  |  |  | — |  |  | (0.3) |  |  | 64.3 |
Amount reclassified from accumulated other comprehensive loss, net of tax | 20.3 |  |  |  |  | (0.7) |  |  | 1.6 |  |  | 21.2 |
Balance as of March 31, 2025 | $ | (855.9) |  |  |  |  | $ | 30.0 |  |  | $ | (201.2) |  |  | $ | (1,027.1) |

| Foreign Currency Translation Adjustments |  | Derivative Instruments |  | Defined Benefit Pension and Other Postretirement Plans |  | Total
Balance as of December 31, 2023 | $ | (789.1) |  |  | $ | 33.5 |  |  | $ | (190.6) |  |  | $ | (946.2) |
Other comprehensive income (loss) before reclassifications | (51.1) |  |  | 0.0 |  |  | 0.9 |  |  | (50.2) |
Amount reclassified from accumulated other comprehensive loss, net of tax | — |  |  | (0.7) |  |  | 1.4 |  |  | 0.7 |
Balance as of March 31, 2024 | $ | (840.2) |  |  | $ | 32.8 |  |  | $ | (188.3) |  |  | $ | (995.7) |

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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Amounts reclassified from accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2025 and 2024 are as follows:

| Three months ended March 31, |  |  |  | Affected Line Item in the Consolidated Statements of Operations
| 2025 |  | 2024 |  |  |  |  |
Foreign currency translation adjustments | $ | 20.3 |  |  | $ | 0.0 |  |  |  |  |  |  | Other expense, net
Net gain on derivative instruments | (1.0) |  |  | (0.9) |  |  |  |  |  |  | Other expense, net, Interest expense
Amortization of defined benefit pension and postretirement plan items | 2.2 |  |  | 1.9 |  |  |  |  |  |  | Other expense, net
Tax effect | (0.3) |  |  | (0.3) |  |  |  |  |  |  | Provision for income taxes
Total amount reclassified from accumulated other comprehensive loss, net of tax | $ | 21.2 |  |  | $ | 0.7 |  |  |  |  |  |  |

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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 11: Employee Benefits
We have a defined benefit pension plan that covers certain U.S. employees (the “Domestic Pension Plan”). We also have numerous funded and unfunded plans outside the U.S. The Interpublic Limited Pension Plan in the U.K. (the "U.K. Pension Plan") is a defined benefit plan and is our most material foreign pension plan in terms of the benefit obligation and plan assets. Some of our domestic and foreign subsidiaries provide postretirement health benefits and life insurance to eligible employees and, in certain cases, their dependents. The domestic postretirement benefit plan is our most material postretirement benefit plan in terms of the benefit o bligation. Certain immaterial foreign pension and postretirement benefit plans have been excluded from the table below.
In December 2023, the U.K. Pension Plan entered into an agreement with an insurance company to purchase a group annuity, or "buy-in", that matches the plan's future projected benefit obligations to covered participants. As part of the annuity purchase contract, the U.K. Pension Plan has the option to complete a "buy-out", which would transfer all liabilities of the plan to the insurer, which the Company anticipates to be completed in 2026. The non-cash settlement charge, net of tax, associated with the transaction is currently estimated to be approximately $180.0 to $200.0 and is subject to finalization of terms and changes in the British Pound Sterling.
The components of net periodic cost for the Domestic Pension Plan, the significant foreign pension plans and the domestic postretirement benefit plan are listed below.

| Domestic Pension Plan |  | Foreign Pension Plans |  | Domestic Postretirement Benefit Plan
Three Months Ended March 31, | 2025 |  | 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
Service cost | $ | 0.0 |  |  | $ | 0.0 |  |  | $ | 0.8 |  |  | $ | 0.8 |  |  | $ | 0.0 |  |  | $ | 0.0 |
Interest cost | 0.9 |  |  | 0.9 |  |  | 3.9 |  |  | 3.7 |  |  | 0.2 |  |  | 0.2 |
Expected return on plan assets | (0.7) |  |  | (0.7) |  |  | (4.0) |  |  | (3.7) |  |  | 0.0 |  |  | 0.0 |
Settlements | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Amortization of: |  |  |  |  |  |  |  |  |  |  |
Prior service cost | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  | 0.0 |
Unrecognized actuarial losses | 0.5 |  |  | 0.4 |  |  | 1.6 |  |  | 1.5 |  |  | 0.1 |  |  | 0.0 |
Net periodic cost | $ | 0.7 |  |  | $ | 0.6 |  |  | $ | 2.3 |  |  | $ | 2.3 |  |  | $ | 0.3 |  |  | $ | 0.2 |

The components of net periodic cost other than the service cost component are included in the line item “Other expense, net” in the Consolidated Statements of Operations.
During the three months ended March 31, 2025, we contributed $0.0 and $2.4 of cash to our domestic and foreign pension plans, respectively. For the remainder of 2025, we expect to contribute approximately $0.0 and $7.0 of cash to our domestic and foreign pension plans, respectively.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 12: Segment Information
IPG's agency brands are grouped into reportable segments based on the agencies' primary capabilities. As of March 31, 2025, we have three reportable segments: MD&E, IA&C, and SC&E. We also report results for the "Corporate and other" group.
MD&E primarily provides, and is distinguished by innovative capabilities and scale in, global media and communications services, digital services and products, advertising and marketing technology, e‐commerce services, data management and analytics, strategic consulting, and digital brand experience. MD&E is comprised of IPG Mediabrands, UM, Initiative, KINESSO, Acxiom and MRM.
IA&C primarily provides advertising, corporate and brand identity services, and strategic consulting. IA&C is distinguished by the leading role of complex integrations of ideation and the execution of advertising and creative campaigns across all communications channels that are foundational to client brand identities. IA&C is comprised of leading global networks and agencies that provide a broad range of services, including McCann Worldgroup, IPG Health, MullenLowe Group, Foote, Cone & Belding ("FCB"), and our domestic integrated agencies.
SC&E primarily provides best-in-class global public relations and other specialized communications services, events, sports and entertainment marketing, and strategic consulting. SC&E is comprised of agencies that provide a range of marketing services expertise, including Weber Shandwick, Golin, our sports, entertainment, and experiential agencies, and IPG DXTRA Health.
We continue to evaluate our financial reporting structure, and the profitability measure employed by our chief operating decision maker for allocating resources to operating divisions and assessing operating division performance is segment EBITA. Summarized financial information concerning our reportable segments is shown in the following table.

Three Months Ended March 31, 2025 | MD&E |  | IA&C |  | SC&E |  | Total
Total revenue | $ | 902.7 |  |  | $ | 861.5 |  |  | $ | 558.4 |  |  | $ | 2,322.6 |
Revenue before billable expenses | 888.8 |  |  | 780.6 |  |  | 326.9 |  |  | 1,996.3 |
Base salaries, benefits and tax | 500.0 |  |  | 534.2 |  |  | 214.6 |  |  |
Incentive expense | 42.9 |  |  | 30.6 |  |  | 11.3 |  |  |
Severance expense | 0.7 |  |  | 1.9 |  |  | 0.8 |  |  |
Temporary help | 17.1 |  |  | 33.7 |  |  | 10.3 |  |  |
Office and other direct expenses | 173.9 |  |  | 103.3 |  |  | 42.0 |  |  |
Depreciation and amortization 1 | 23.6 |  |  | 12.2 |  |  | 3.4 |  |  |
Restructuring Charges 2 | 53.3 |  |  | 55.9 |  |  | 21.7 |  |  |
Other segment items 3 | 15.6 |  |  | 91.2 |  |  | 235.8 |  |  |
Segment EBITA | $ | 75.6 |  |  | $ | (1.5) |  |  | $ | 18.5 |  |  | $ | 92.6 |
Amortization of acquired intangibles | 19.2 |  |  | 0.9 |  |  | 0.3 |  |  |
Capital expenditures | 13.0 |  |  | 3.4 |  |  | 0.5 |  |  |

1 Excludes amortization of acquired intangibles.
2 Non-cash lease impairment costs were comprised of $19.1 at MD&E, $18.6 at IA&C and $9.4 at SC&E for the three months ended March 31, 2025.
3 Includes billable expenses and other salaries and related expenses.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)

Three Months Ended March 31, 2024 | MD&E |  | IA&C |  | SC&E |  | Total
Total revenue | $ | 973.3 |  |  | $ | 963.8 |  |  | $ | 558.8 |  |  | $ | 2,495.9 |
Revenue before billable expenses | 961.3 |  |  | 881.4 |  |  | 340.2 |  |  | 2,182.9 |
Base salaries, benefits and tax | 580.5 |  |  | 571.5 |  |  | 221.1 |  |  |
Incentive expense | 29.1 |  |  | 18.9 |  |  | 9.6 |  |  |
Severance expense | 22.2 |  |  | 20.3 |  |  | 4.7 |  |  |
Temporary help | 24.2 |  |  | 37.2 |  |  | 11.1 |  |  |
Office and other direct expenses | 180.2 |  |  | 101.1 |  |  | 40.8 |  |  |
Depreciation and amortization 1 | 26.5 |  |  | 12.4 |  |  | 3.5 |  |  |
Restructuring Charges 2 | — |  |  | 0.3 |  |  | 0.3 |  |  |
Other segment items 3 | 17.4 |  |  | 94.2 |  |  | 223.8 |  |  |
Segment EBITA | $ | 93.2 |  |  | $ | 107.9 |  |  | $ | 43.9 |  |  | $ | 245.0 |
Amortization of acquired intangibles | 19.2 |  |  | 1.0 |  |  | 0.5 |  |  |
Capital expenditures | 21.5 |  |  | 2.4 |  |  | 0.8 |  |  |

1 Excludes amortization of acquired intangibles.
2 Non-cash lease impairment costs were comprised of $0.3 at IA&C and $0.3 at SC&E for the three months ended March 31, 2024.
3 Includes billable expenses and other salaries and related expenses.

| March 31, 2025 |  | December 31, 2024
Total assets: |  |  |
MD&E | $ | 9,565.4 |  |  | $ | 10,248.1 |
IA&C | 4,541.7 |  |  | 4,549.9 |
SC&E | 1,641.4 |  |  | 1,758.9 |
Corporate and Other | 1,377.0 |  |  | 1,768.9 |
Total | $ | 17,125.5 |  |  | $ | 18,325.8 |

The following table presents the reconciliation of segment EBITA to Income (Loss) before income taxes.

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
MD&E EBITA | $ | 75.6 |  |  | $ | 93.2 |  |  |  |  |
IA&C EBITA | (1.5) |  |  | 107.9 |  |  |  |  |
SC&E EBITA | 18.5 |  |  | 43.9 |  |  |  |  |
Total segment EBITA | 92.6 |  |  | 245.0 |  |  |  |  |
Corporate and Other 1 | (114.2) |  |  | (40.1) |  |  |  |  |
Less: consolidated amortization of acquired intangibles | 20.4 |  | 20.7 |  |  |  |
Operating income (loss) | (42.0) |  |  | 184.2 |  |  |  |  |
Total (expenses) and other income | (52.4) |  |  | (23.6) |  |  |  |  |
Income (Loss) before income taxes | $ | (94.4) |  |  | $ | 160.6 |  |  |  |  |

1 Includes restructuring charges of $72.4 for the three months ended March 31, 2025, including non-cash lease impairment costs of $23.1.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 13: Fair Value Measurements
Authoritative guidance for fair value measurements establishes a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 |  | Unadjusted quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 |  | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 |  | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial Instruments that are Measured at Fair Value on a Recurring Basis
We primarily apply the market approach to determine the fair value of financial instruments that are measured at fair value on a recurring basis. There were no changes to our valuation techniques used to determine the fair value of financial instruments during the three months ended March 31, 2025. The following tables present information about our financial instruments measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value.

| March 31, 2025 |  | Balance Sheet Classification
| Level 1 |  | Level 2 |  | Level 3 |  | Total |
Assets |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 673.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 673.6 |  |  | Cash and cash equivalents
Liabilities |  |  |  |  |  |  |  |  |
Contingent acquisition obligations 1 | $ | — |  |  | $ | — |  |  | $ | 5.5 |  |  | $ | 5.5 |  |  | Accrued liabilities and Other non-current liabilities
| December 31, 2024 |  | Balance Sheet Classification
| Level 1 |  | Level 2 |  | Level 3 |  | Total |
Assets |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 1,139.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,139.5 |  |  | Cash and cash equivalents
Liabilities |  |  |  |  |  |  |  |  |
Contingent acquisition obligations 1 | $ | — |  |  | $ | — |  |  | $ | 5.5 |  |  | $ | 5.5 |  |  | Accrued liabilities and Other non-current liabilities

1 Contingent acquisition obligations includes deferred acquisition payments and unconditional obligations to purchase additional non-controlling equity shares of consolidated subsidiaries. Fair value measurement of the obligations is based upon actual and projected operating performance targets as specified in the related agreements. There was no change in this balance from December 31, 2024 to March 31, 2025. The amounts payable within the next twelve months are classified in accrued liabilities; any amounts payable thereafter are classified in other non-current liabilities.
Financial Instruments that are not Measured at Fair Value on a Recurring Basis
The following table presents information about our financial instruments that are not measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

| March 31, 2025 |  | December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Total long-term debt | $ | — |  |  | $ | 2,727.1 |  |  | $ | 0.4 |  |  | $ | 2,727.5 |  |  | $ | — |  |  | $ | 2,701.6 |  |  | $ | 0.4 |  |  | $ | 2,702.0 |

Our long-term debt is comprised of senior notes and other notes payable. The fair value of our senior notes, which are traded over-the-counter, is based on quoted prices in markets that are not active. Therefore, these senior notes are classified as
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Level 2. Our other notes payable are not actively traded, and their fair value is not solely derived from readily observable inputs. The fair value of our other notes payable is determined based on a discounted cash flow model and other proprietary valuation methods, and therefore is classified as Level 3. See Note 4 for further information on our long-term debt.
The discount rates used as significant unobservable inputs in the Level 3 fair value measurements of our contingent acquisition obligations and long-term debt as of March 31, 2025 ranged from 4.0% to 6.0%.
Non-financial Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis
Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis, primarily goodwill (Level 3), intangible assets, and property and equipment. Accordingly, these assets are not measured and adjusted to fair value on an ongoing basis but are subject to periodic evaluations for potential impairment.
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Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Note 14: Commitments and Contingencies
Guarantees
As discussed in our 2024 Annual Report, we have guaranteed certain obligations of our subsidiaries relating principally to operating leases and uncommitted lines of credit of certain subsidiaries. As of March 31, 2025 and December 31, 2024, the amount of parent company guarantees on lease obligations was $392.7 and $416.1, respectively, the amount of parent company guarantees primarily relating to uncommitted lines of credit was $273.7 and $256.6, respectively, and the amount of parent company guarantees related to daylight overdrafts, primarily utilized to manage intra-day overdrafts due to timing of transactions under cash pooling arrangements without resulting in incremental borrowings, was $78.0 and $79.6, respectively. In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee. As of both March 31, 2025, and December 31, 2024 there were no material assets pledged as security for such parent company guarantees.
Legal Matters
We are involved in various legal proceedings, and subject to investigations, inspections, audits, inquiries and similar actions by governmental authorities arising in the normal course of business. The types of allegations that arise in connection with such legal proceedings vary in nature, but can include claims related to contract, employment, tax and intellectual property matters. We evaluate all cases each reporting period and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount, or potential range, of loss can be reasonably estimated. In certain cases, we cannot reasonably estimate the potential loss because, for example, the litigation is in its early stages. While any outcome related to litigation or such governmental proceedings in which we are involved cannot be predicted with certainty, management believes that the outcome of these matters, individually and in the aggregate, will not have a material adverse effect on our financial condition, results of operations or cash flows.
Note 15: Recent Accounting Standards
Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on our Consolidated Financial Statements.
Income Statement - Reporting Comprehensive Income
In November 2024, the Financial Accounting Standards Board issued amended guidance requiring additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. This amended guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. We are currently evaluating the impact on our Consolidated Financial Statements and do not anticipate a material impact.
Income Taxes
In December 2023, the Financial Accounting Standards Board issued amended guidance to enhance the transparency and decision usefulness of income tax disclosures by requiring disaggregated information about an entity's effective tax rate reconciliation, as well as information on taxes paid. This amended guidance is effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact on our Consolidated Financial Statements and do not anticipate a material impact.
Segment Reporting
In November 2023, the Financial Accounting Standards Board issued amended guidance on segment reporting to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analysis. This amended guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. We adopted the amended guidance as of the year ended December 31, 2024, and applied the amendments retrospectively to all prior periods presented in our Consolidated Financial Statements. For more detailed information about our reportable segments, see Note 12.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)

Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help you understand The Interpublic Group of Companies, Inc. and its subsidiaries (the “Company,” “IPG,” “we,” “us” or “our”). MD&A should be read in conjunction with our unaudited Consolidated Financial Statements and the accompanying notes included in this report and our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), as well as our other reports and filings with the Securities and Exchange Commission (the “SEC”). Our 2024 Annual Report includes additional information about our significant accounting policies and practices as well as details about the most significant risks and uncertainties associated with our financial and operating results. Our MD&A includes the following sections:
EXECUTIVE SUMMARY provides a discussion about our strategic outlook, factors influencing our business and an overview of our results of operations.
RESULTS OF OPERATIONS provides an analysis of the consolidated and segment results of operations for the periods presented.
LIQUIDITY AND CAPITAL RESOURCES provides an overview of our cash flows, funding requirements, financing and sources of funds, and debt credit ratings.
CRITICAL ACCOUNTING ESTIMATES provides an update to the discussion in our 2024 Annual Report of our accounting policies that require critical judgment, assumptions and estimates.
RECENT ACCOUNTING STANDARDS, by reference to Note 15 to the unaudited Consolidated Financial Statements, provides a discussion of certain accounting standards that have been recently adopted or that have not yet been required to be implemented and may be applicable to our future operations.
NON-GAAP FINANCIAL MEASURE, provides a reconciliation of non-GAAP financial measure with the most directly comparable generally accepted accounting principles in the United States (“U.S. GAAP”) financial measures and sets forth the reasons we believe that presentation of the non-GAAP financial measure contained therein provides useful information to investors regarding our results of operations and financial condition.
EXECUTIVE SUMMARY
Our Business
We provide marketing, communications and business transformation services that measurably drive growth for businesses and brands. Combining the power of creativity and technology, our approximately 51,500 employees and operations span all major world markets. Our companies specialize in insights, data, media, creative and production, digital commerce, healthcare marketing and communications, producing marketing solutions for clients that range in scale from large global marketers to regional and local clients. Our comprehensive global services help marketers build brands, increase sales of their products and services, and gain market share.
Our capabilities span ideation to execution: growth, product and experience design; technology and experience platforms; creative, media and marketing strategy; and campaign, content and channel orchestration. The work we produce for our clients is tailored specifically to their unique needs, opportunity and outcomes. Our solutions vary from project-based activity to long-term, fully integrated campaigns. Our operations support the strategic position that marketers have access to the best and most appropriate resources within IPG to drive business success, and may access these capabilities from across the IPG network in an open model that leverages our marketing intelligence platform, Interact. With operations in over 100 countries, we can operate in a single region or deliver global integrated programs.
We operate in a media, consumer and technology ecosystem that continues to evolve at a rapid pace. To help our clients win in a data-led and digital-first world, we have made and continue to make investments in strategic areas including digital commerce, retail media, artificial intelligence, audience resolution and production across world markets. In addition, we consistently review opportunities within our Company to enhance our operations through acquisitions and strategic alliances and internal programs that encourage client-centric collaboration. As appropriate, we also develop relationships with technology and emerging media companies that are building leading-edge marketing tools that complement our agencies' skill sets and capabilities.
Home to some of the world’s best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, UM, Weber Shandwick and more.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Our financial goals include competitive organic growth of revenue before billable expenses and expansion of Adjusted EBITA margin, as defined and discussed within the Non-GAAP Financial Measure section of this MD&A, which we expect will further strengthen our balance sheet and total liquidity and increase value to our stakeholders. Accordingly, we remain focused on meeting the evolving needs of our clients while concurrently managing our cost structure. We continually seek greater efficiency in the delivery of our services, focusing on more effective resource utilization, including the productivity of our employees, real estate, information technology and shared services, such as finance, human resources and legal. The improvements we have made and continue to make in our financial reporting and business information systems in recent years allow us more timely and actionable insights from our global operations. Our disciplined approach to our balance sheet and liquidity provides us with a solid financial foundation and financial flexibility to manage and grow our business. We believe that our strategy and execution position us to meet our financial goals and to deliver long-term value to all of our stakeholders.
Proposed Omnicom Transaction
On December 8, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Omnicom Group Inc. (“Omnicom”), pursuant to which an Omnicom merger subsidiary will merge with and into IPG, with IPG surviving the merger as a direct wholly owned subsidiary of Omnicom.
As a result of the merger, each share of IPG common stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive 0.344 shares of Omnicom common stock. The exchange ratio is fixed and will not be adjusted to reflect stock price changes prior to closing the merger.
If the transaction is completed, following the closing Omnicom shareholders will own 60.6% of the combined company and IPG shareholders will own 39.4%, on a fully diluted basis. As a result of the merger, we will cease to be a publicly traded company.
We believe the combined company will bring together the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, driven by the most advanced sales and marketing platform. Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated clients. We anticipate the combined company will have over 100,000 expert practitioners, delivering end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.
On March 12, 2025, each of Omnicom and Interpublic received a Request for Additional Information and Documentary Material (the “Second Request”) from the U.S. Federal Trade Commission (FTC) in connection with Omnicom's proposed acquisition of Interpublic. The Second Request was issued under notification requirements of the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as amended.
On March 18, 2025, the shareholders of Omnicom and Interpublic each approved the acquisition of Interpublic at each company's special meeting of stockholders held that day.
We also face risks related to our proposed transaction with Omnicom, including as a result of any failure to complete, or delays in completing, the proposed transaction. The closing of the merger is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. Furthermore, uncertainty about the mergers may adversely affect relationships with our clients, partners, suppliers, and employees, whether or not the merger transactions are completed, and if the transaction is completed, the combined company may not perform as we currently expect. See Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K.
Current Market Conditions
The global macroeconomic backdrop continues to be characterized by complex and dynamic developments, due to active business, economic and geopolitical crosscurrents. Shifting economic developments in the first part of the year, both domestically and among the largest global economic actors, have introduced a greater measure of caution to the global economy, though with impacts that may vary widely by sector and individual client. Several trends continue to support the demand for our services, notably proliferating media complexity and the ongoing evolution, at pace, of consumer interaction with brands and commerce. These trends offer significant long-term support to our growth opportunities, while our ability to leverage our agile and flexible operating model enables us to adapt to changing macro circumstances.
The principal macroeconomic risks to our performance include the impact of any general or regional economic slowdown or contraction, the extent of inflation of labor costs and potential for labor shortages, continuing inflationary pressures on our clients and their customers, and the economic impacts of geopolitical conflict and resulting potential for uncertainty and restrictions on spending on the part of some clients and consumers. See Item 1A, Risk Factors, in our most recent Annual Report on Form 10-K.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Our Financial Information
When we analyze period-to-period changes in our operating performance, we determine the portion of the change that is attributable to changes in foreign currency rates and the net effect of acquisitions and divestitures, and the remainder we call organic change, which indicates how our underlying business performed. We exclude the impact of billable expenses in analyzing our operating performance as the fluctuations from period to period are not indicative of the performance of our underlying businesses and have no impact on our operating income or net income.
The change in our operating performance attributable to changes in foreign currency rates is determined by converting the prior-period reported results using the current-period exchange rates and comparing these prior-period adjusted amounts to the prior-period reported results. Although the U.S. Dollar is our reporting currency, a substantial portion of our revenues and expenses are generated in foreign currencies. Therefore, our reported results are affected by fluctuations in the currencies in which we conduct our international businesses. Our exposure is mitigated as the majority of our revenues and expenses in any given market are generally denominated in the same currency. Both positive and negative currency fluctuations against the U.S. Dollar affect our consolidated results of operations, and the magnitude of the foreign currency impact to our operations related to each geographic region depends on the significance and operating performance of the region. The foreign currencies that most adversely impacted our results during the first quarter of 2025 were the Euro, the Brazilian Real, the Canadian Dollar, the Mexican Peso and the British Pound Sterling.
For purposes of analyzing changes in our operating performance attributable to the net effect of acquisitions and divestitures, transactions are treated as if they occurred on the first day of the quarter during which the transaction occurred. We continually evaluate our portfolio of businesses, and over the past several years, we have acquired companies that we believe will enhance our offerings and disposed of businesses that are not consistent with our strategic plan.
The metrics that we use to evaluate our financial performance include organic change in revenue before billable expenses as well as the change in certain operating expenses, and the components thereof, expressed as a percentage of consolidated revenue before billable expenses, as well as Adjusted EBITA. These metrics are also used by management to assess the financial performance of our reportable segments, MD&E, IA&C, and SC&E. In certain of our discussions, we analyze revenue before billable expenses by geographic region and by business sector, in which we focus on our top 500 clients, which typically constitute approximately 85% of our annual consolidated revenue before billable expenses.
Results for the three months ended March 31, 2025, may not be indicative of the results that may be expected for the fiscal year ending December 31, 2025. The Consolidated Financial Statements and MD&A presented herein reflect the latest estimates and assumptions made by us that affect the reported amounts of assets and liabilities and related disclosures as of the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. We believe we have used reasonable estimates and assumptions to assess the fair values of the Company’s goodwill, long-lived assets and indefinite-lived intangible assets; assessment of the annual effective tax rate; valuation of deferred income taxes and the allowance for expected credit losses on future uncollectible accounts receivable. If actual market conditions vary significantly from those currently projected, these estimates and assumptions could materially change resulting in adjustments to the carrying values of our assets and liabilities.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
The following table presents a summary of our financial performance for the three months ended March 31, 2025 and 2024.

| Three months ended March 31, |  |  |  |  |  |
Statement of Operations Data | 2025 |  | 2024 |  | % Increase/ (Decrease) |  |  |  |  |  |
REVENUE: |  |  |  |  |  |  |  |  |  |  |
Revenue before billable expenses | $ | 1,996.3 |  | $ | 2,182.9 |  | (8.5) | % |  |  |  |  |  |
Billable expenses | 326.3 |  | 313.0 |  | 4.2 | % |  |  |  |  |  |
Total revenue | $ | 2,322.6 |  | $ | 2,495.9 |  | (6.9) | % |  |  |  |  |  |
OPERATING INCOME (LOSS)1 | $ | (42.0) |  | $ | 184.2 |  | (122.8) | % |  |  |  |  |  |
Adjusted EBITA 1,2 | $ | (21.6) |  | $ | 204.9 |  | (110.5) | % |  |  |  |  |  |
NET INCOME (LOSS) AVAILABLE TO IPG COMMON STOCKHOLDERS | $ | (85.4) |  | $ | 110.4 |  |  |  |  |  |  |  |
Earnings per share available to IPG common stockholders: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | (0.23) |  | $ | 0.29 |  |  |  |  |  |  |  |
Diluted | $ | (0.23) |  | $ | 0.29 |  |  |  |  |  |  |  |
Operating Ratios |  |  |  |  |  |  |  |  |  |  |
Organic change in revenue before billable expenses | (3.6) | % |  | 1.3 | % |  |  |  |  |  |  |  |
Operating margin on revenue before billable expenses | (2.1) | % |  | 8.4 | % |  |  |  |  |  |  |  |
Operating margin on total revenue | (1.8) | % |  | 7.4 | % |  |  |  |  |  |  |  |
Adjusted EBITA margin on revenue before billable expenses 1,2 | (1.1) | % |  | 9.4 | % |  |  |  |  |  |  |  |
Expenses as a % of revenue before billable expenses: |  |  |  |  |  |  |  |  |  |  |
Salaries and related expenses | 70.9 | % |  | 72.1 | % |  |  |  |  |  |  |  |
Office and other direct expenses | 16.0 | % |  | 14.8 | % |  |  |  |  |  |  |  |
Selling, general and administrative expenses | 2.0 | % |  | 1.7 | % |  |  |  |  |  |  |  |
Depreciation and amortization | 3.1 | % |  | 3.0 | % |  |  |  |  |  |  |  |
Restructuring charges | 10.2 | % |  | 0.0 | % |  |  |  |  |  |  |  |

1 For the three months ended March 31, 2025 and 2024, results include restructuring charges of $203.3 and $0.6, respectively. See "Restructuring Charges" section of this MD&A and Note 8 of Item 1, Financial Statements and Supplementary Data for further information. For the three months ended March 31, 2025, results include deal costs of $4.8 related to the planned acquisition of IPG by Omnicom. See Note 2 of Item 1, Financial Statements and Supplementary Data for further information.
2 Adjusted EBITA is a financial measure that is not defined by U.S. GAAP. Adjusted EBITA is calculated as net income available to IPG common stockholders before provision for in come taxes, total (expenses) and other income, equity in net loss of unconsolidated affiliates, net income attributable to non-controlling interests, and amortization of acquired intangibles. R efer to the “Non-GAAP Financial Measure” section of this MD&A for additional information and for a reconciliation to U.S. GAAP measures.
Total revenue, which includes billable expenses, decreased (6.9)% during the first quarter of 2025. Our org ani c decrease of revenue before billable expenses was (3.6)% d uring the first quarter of 2025, compared to an organic increase of 1.3% during the first quarter of 2024. This was a result of net client losses in our auto and transportation, retail and health care sectors, partially offset by increased spending from existing clients in our technology & telecom and financial services sectors and net client wins in our food and beverage sector. During the first quarter of 2025, our Adjusted EBITA margin on revenue before billable expense s decreased to (1.1)% from 9.4% in the prior-year pe riod as revenue before billable expenses decreased and operating expenses, excluding billable expenses and amortization of acquired intangibles increased. Adjusted EBITA includes
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
$203.3 of restructuring charges related to our 2025 restructuring actions and $4.8 of deal costs related to the planned acquisition of IPG by Omnicom, which had a (10.2)% and (0.2)% impact, respectively, on Adjusted EBITA margin on revenue before billable expenses. Se e further discussion below in the “Results of Operations” section.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
RESULTS OF OPERATIONS
Consolidated Results of Operations – Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Revenue before billable expenses
Our revenue before billable expenses is directly impacted by the retention and spending levels of existing clients and by our ability to win new clients. Most of our expenses are recognized ratably throughout the year and are therefore less seasonal than revenue. Our revenue before billable expenses is typically lowest in the first quarter and highest in the fourth quarter, reflecting the seasonal spending of our clients.

|  |  | Components of Change |  |  |  | Change
| Three months ended March 31, 2024 | Foreign Currency |  | Net Acquisitions/ (Divestitures) |  | Organic |  | Three months ended March 31, 2025 | Organic |  | Total
Consolidated | $ | 2,182.9 |  |  | $ | (27.1) |  |  | $ | (81.6) |  |  | $ | (77.9) |  |  | $ | 1,996.3 |  |  | (3.6) | % |  | (8.5) | %
Domestic | 1,476.3 |  |  | — |  |  | (58.6) |  |  | (59.5) |  |  | 1,358.2 |  |  | (4.0) | % |  | (8.0) | %
International | 706.6 |  |  | (27.1) |  |  | (23.0) |  |  | (18.4) |  |  | 638.1 |  |  | (2.6) | % |  | (9.7) | %
United Kingdom | 178.0 |  |  | (1.8) |  |  | (5.9) |  |  | (10.9) |  |  | 159.4 |  |  | (6.1) | % |  | (10.4) | %
Continental Europe | 179.5 |  |  | (6.7) |  |  | (2.8) |  |  | (0.7) |  |  | 169.3 |  |  | (0.4) | % |  | (5.7) | %
Asia Pacific | 142.8 |  |  | (4.1) |  |  | (6.5) |  |  | (12.9) |  |  | 119.3 |  |  | (9.0) | % |  | (16.5) | %
Latin America | 87.1 |  |  | (10.3) |  |  | (7.0) |  |  | 2.7 |  |  | 72.5 |  |  | 3.1 | % |  | (16.8) | %
Other | 119.2 |  |  | (4.2) |  |  | (0.8) |  |  | 3.4 |  |  | 117.6 |  |  | 2.9 | % |  | (1.3) | %

The organic decrease of revenue before billable expenses was (3.6)% during the first quarter of 2025. The organic decrease in our domestic market was primarily due to revenue decreases at our advertising businesses, digital project-based offerings and experiential businesses, partially offset by revenue increases at our media businesses, public relations agencies and data management and analytics. In our international markets, the organic decrease was driven by revenue decreases across all disciplines, primarily in our Asia Pacific and United Kingdom regions.
Refer to the segment discussion later in this MD&A for information on changes in revenue before billable expenses by segment.
Salaries and Related Expenses

| Three months ended March 31, |  |  |  |  |  |
| 2025 |  | 2024 |  | % Increase/ (Decrease) |  |  |  |  |  |
Salaries and related expenses | $ | 1,414.4 |  | $ | 1,572.8 |  | (10.1) | % |  |  |  |  |  |
As a % of revenue before billable expenses: |  |  |  |  |  |  |  |  |  |  |
Salaries and related expenses | 70.9 | % |  | 72.1 | % |  |  |  |  |  |  |  |
Base salaries, benefits and tax | 62.6 | % |  | 62.9 | % |  |  |  |  |  |  |  |
Incentive expense | 4.2 | % |  | 2.6 | % |  |  |  |  |  |  |  |
Severance expense | 0.2 | % |  | 2.2 | % |  |  |  |  |  |  |  |
Temporary help | 3.1 | % |  | 3.3 | % |  |  |  |  |  |  |  |
All other salaries and related expenses | 0.8 | % |  | 1.1 | % |  |  |  |  |  |  |  |

Total salaries and related expenses decreased (10.1)% during the first quarter of 2025 as compared to the prior-year period, primarily driven by decreased base salaries, benefits and tax, as well as decreases in severance and temporary help expenses, partially offset by an increase in performance-based employee compensation expense.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Office and Other Direc t Expenses

| Three months ended March 31, |  |  |  |  |  |
| 2025 |  | 2024 |  | % Increase/ (Decrease) |  |  |  |  |  |
Office and other direct expenses | $ | 319.2 |  | $ | 322.1 |  | (0.9) | % |  |  |  |  |  |
As a % of revenue before billable expenses: |  |  |  |  |  |  |  |  |  |  |
Office and other direct expenses | 16.0 | % |  | 14.8 | % |  |  |  |  |  |  |  |
Occupancy expense | 4.3 | % |  | 4.4 | % |  |  |  |  |  |  |  |
All other office and other direct expenses 1 | 11.7 | % |  | 10.4 | % |  |  |  |  |  |  |  |

1 Includes client service costs, including technology & software, non-pass through production expenses, travel and entertainment, professional fees, spending to support new business activity, office supplies, bad debt expense, adjustments to contingent acquisition obligations, foreign currency losses (gains) and other expenses.
Office and other direct expenses decreased by (0.9)% during the first quarter of 2025 as compared to the prior-year period. The decrease in office and other direct expenses was mainly due decreases in occupancy expense, new business development, and travel and entertainment expenses, partially offset by increases in technology & software expenses, as well as foreign currency losses.
Selling, General and Administrative Expenses
Selling, general and administrative expenses (“SG&A”) are primarily the unallocated expenses of our "Corporate and Other" group, as detailed further in the segment discussion later in this MD&A, excluding depreciation and amortization. For the three months ended March 31, 2025, SG&A increased by $2.4 to $40.4 as compared to the prior-year period, primarily due to increases in technology & software and performance-based employee compensation expenses, as well as $4.8 of deal costs incurred during the first quarter of 2025 related to the planned acquisition of IPG by Omnicom.
Depreciation and Amortization
During the first quarter of 2025, depreciation and amortization expenses decreased, compared to the prior-year period.
Restructuring Charges
Restructuring charges for the three months ended March 31, 2025 consist of new actions taken in the first quarter of 2025. Restructuring charges for the three months ended March 31, 2024 represent adjustments to the 2022 Real Estate Actions, as well as adjustments to the actions taken in 2020. The components of restructuring charges for the three months ended March 31, 2025 and 2024 are listed below.

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Severance and termination costs | $ | 80.1 |  |  | $ | 0.0 |  |  |  |  |
Lease impairment costs | 70.3 |  |  | 0.6 |  |  |  |  |
Other related costs | 52.9 |  |  | 0.0 |  |  |  |  |
Total restructuring charges | $ | 203.3 |  |  | $ | 0.6 |  |  |  |  |

2025 Restructuring Actions
In the first quarter of 2025, management initiated restructuring actions, as previously announced, which are designed to transform our business, enhance our offerings and drive significant structural expense savings. Management currently expects the total charges in connection with these actions to be approximately $300 - $350, a portion being non-cash, which is subject to change upon finalization of the actions. Actions are expected to be completed by the end of 2025.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
During the three months ended March 31, 2025, severance and termination costs related to a planned reduction in workforce of approximately 1,500 employees. The employee groups affected include executive, regional and account management as well as administrative, creative and media production personnel.
Lease impairment costs, which relate to the office spaces that were vacated as part of the 2025 restructuring actions and reduced our occupied global real estate footprint by approximately 430,000 square feet, included impairments of operating lease right-of-use assets. Lease impairments were calculated based on estimated fair values using market participant assumptions including forecasted net discounted cash flows related to the operating lease right-of-use assets.
Other related costs primarily include leasehold improvements and furniture and asset retirement obligations associated with office spaces vacated as part of the 2025 restructuring actions, as third-party costs to assist in identifying areas of structural expense savings in relation to our restructuring initiatives, and write-offs of unutilized assets. Leasehold improvements and furniture and asset retirement obligations were estimated using market participant assumptions including forecasted net discounted cash flows.
A summary of the restructuring activities related to the 2025 restructuring actions is as follows:

| 2025 Restructuring Actions
| Restructuring Expense |  | Non-Cash Items |  | Cash Payments |  |  |  | Liability at March 31, 2025
Severance and termination costs | $ | 80.1 |  |  | $ | 2.2 |  |  | $ | 32.4 |  |  |  |  | $ | 45.5 |
Lease impairment costs | 70.3 |  |  | 70.2 |  |  | 0.1 |  |  |  |  | 0.0 |
Other related costs | 52.9 |  |  | 36.8 |  |  | 0.6 |  |  |  |  | 15.5 |
Total | $ | 203.3 |  |  | $ | 109.2 |  |  | $ | 33.1 |  |  |  |  | $ | 61.0 |

2022 Real Estate Actions & 2020 Restructuring Plan
There were no adjustments to the 2020 Plan and 2022 Real Estate Actions for the three months ended March 31. 2025. Net restructuring charges of $0.6 for the three months ended March 31, 2024, were related to adjustments to our restructuring actions taken in 2020 and 2022.
EXPENSES AND OTHER INCOME

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Cash interest on debt obligations | $ | (50.0) |  |  | $ | (62.5) |  |  |  |  |
Non-cash interest | (0.1) |  |  | (0.3) |  |  |  |  |
Interest expense | (50.1) |  |  | (62.8) |  |  |  |  |
Interest income | 34.6 |  |  | 48.7 |  |  |  |  |
Net interest expense | (15.5) |  |  | (14.1) |  |  |  |  |
Other expense, net | (36.9) |  |  | (9.5) |  |  |  |  |
Total (expenses) and other income | $ | (52.4) |  |  | $ | (23.6) |  |  |  |  |

Net interest expense increased by $1.4 for the three months ended March 31, 2025, compared to a year ago, primarily attributable to lower interest rates on net deposits and investments.
Other Expense, Net
Results of operations for the three months ended March 31, 2025 and 2024 include certain items that are not directly associated with our revenue-producing operations.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Net losses on sales of businesses | $ | (36.4) |  |  | $ | (6.8) |  |  |  |  |
Other | (0.5) |  |  | (2.7) |  |  |  |  |
Total other expense, net | $ | (36.9) |  |  | $ | (9.5) |  |  |  |  |

Net losses on sales of businesses – During the three months ended March 31, 2025 and 2024, the amounts recognized were related to sales of businesses and the classification of certain assets and liabilities, consisting primarily of accounts receivable and accounts payable, as held for sale within our MD&E and SC&E reportable segments. During the first quarter of 2025, the amounts recognized were primarily related to the sales of two digital specialist agencies within our MD&E segment, which closed in the fourth quarter of 2024 and the first quarter of 2025. The businesses sold and held for sale primarily represent unprofitable, non-strategic agencies which are expected to be sold within the next twelve months.
Other – During the three months ended March 31, 2025 and 2024, the amounts recognized were primarily related to pension and postretirement cost, partially offset by changes in the fair market value of equity investments.
INCOME TAXES

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
INCOME (LOSS) BEFORE INCOME TAXES | $ | (94.4) |  |  | $ | 160.6 |  |  |  |  |
Provision for income taxes | $ | (9.2) |  |  | $ | 47.3 |  |  |  |  |

Our tax rates are affected by many factors, including our worldwide earnings from various countries, changes in legislation and tax characteristics of our income. For the three months ended March 31, 2025, our income tax benefit was attributable to our loss on income before income taxes, which reflects restructuring charges of $203.3. The income tax benefit was negatively impacted by losses related to the disposition of previously held for sale entities for which we recorded a nominal tax benefit and by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances.
For the three months ended March 31, 2024, our income tax expense was negatively impacted by net losses on sales of businesses and the classification of certain assets as held for sale for which we received minimal tax benefit.
EARNINGS (LOSS) PER SHARE
Basic loss per share available to IPG common stockholders for the three months ended March 31, 2025 was $0.23 compared to basic earnings per share of $0.29 for the three months ended March 31, 2024. Diluted loss per share available to IPG common stockholders for the three months ended March 31, 2025 was $0.23 compared to diluted earnings per share of $0.29 for the three months ended March 31, 2024.
Basic and diluted loss per share for the three months ended March 31, 2025 included negative impacts of $0.04 from the amortization of acquired intangibles, $0.41 from restructuring charges, $0.01 related to deal costs related to the planned acquisition of IPG by Omnicom, and $0.09 from net losses on sales of businesses.
Basic and diluted earnings per share for the three months ended March 31, 2024 included negative impacts of $0.04 from the amortization of acquired intangibles and $0.02 from net losses on sales of businesses and the classification of certain assets as held for sale.
Segment Results of Operations – Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
As discussed in Note 12 to the unaudited Consolidated Financial Statements, we have three reportable segments as of March 31, 2025: MD&E, IA&C and SC&E. We also report results for the “Corporate and Other” group.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Media, Data & Engagement Solutions
Revenue before billable expenses

|  |  | Components of Change |  |  |  | Change
| Three months ended March 31, 2024 | Foreign Currency |  | Net Acquisitions/ (Divestitures) |  | Organic |  | Three months ended March 31, 2025 | Organic |  | Total
Consolidated | $ | 961.3 |  |  | $ | (14.2) |  |  | $ | (79.5) |  |  | $ | 21.2 |  |  | $ | 888.8 |  |  | 2.2 | % |  | (7.5) | %
Domestic | 633.5 |  |  | — |  |  | (58.6) |  |  | 26.8 |  |  | 601.7 |  |  | 4.2 | % |  | (5.0) | %
International | 327.8 |  |  | (14.2) |  |  | (20.9) |  |  | (5.6) |  |  | 287.1 |  |  | (1.7) | % |  | (12.4) | %

The organic increase during the first quarter of 2025 was mainly attribu table to higher spending from existing clients and net client wins in our healthcare and food & beverage sectors as well as higher spending from existing clients in our technology & telecom sector, partially offset by net client losses in our retail, auto & transportation and consumer goods sectors. The organic increase in our domestic market during the first quarter of 2025 was primarily driven by revenue incre ases at our media businesses and data management and analytics, partially offset by revenue decreases at our digital project-based offerings. In our international markets, the organic decrease was due to revenue decreases at our digital project-based offerings primarily in our United Kingdom and Continental Europe regions and at our media businesses primarily in our Asia Pacific region, partially offset by revenue increases at our media businesses primarily in our Other region led by Canada and Latin America region.
Segment EBITA

| Three months ended March 31, |  |  |  |  |  |
| 2025 |  | 2024 |  | Change |  |  |  |  |  |
Segment EBITA | $ | 75.6 |  |  | $ | 93.2 |  |  | (18.9) | % |  |  |  |  |  |
Segment EBITA margin on revenue before billable expenses | 8.5 | % |  | 9.7 | % |  |  |  |  |  |  |  |

Segment EBITA margin decreased during the first quarter of 2025 compared to the prior-year period, as the decrease in our revenue before billable exp enses, inclusive of the organic increase as discussed above, outpaced the decrease in our operating expenses, excluding billable expenses and amortization of acquired intang ibles. Segment EBITA reflects the inclusion of $53.3 and $0.0 of restructuring charges for the three months ended March 31, 2025 and 2024, respectively. Salaries and related expenses decreased as compared to the prior-year period, primarily due to decreases in base salaries, bene fits and tax, severance expense and temporary help expense, partially offset by increases in performance-based employee compensation expense. Office and other direct expense decreased mainly due to decreases in occupancy expense, professional consulting fees, new business development, and travel and entertainment expenses, partially offset by an increase in technology & software expenses.
Depreciation and amortization, excluding amortization of acquired intangibles, as a percentage of revenue before billable expenses was 2.7% during the first quarter of 2025, respectively, which decreased slightly as compared to the prior-year period.
Integrated Advertising & Creativity Led Solutions
Revenue before billable expenses

|  |  | Components of Change |  |  |  | Change
| Three months ended March 31, 2024 | Foreign Currency |  | Net Acquisitions/ (Divestitures) |  | Organic |  | Three months ended March 31, 2025 | Organic |  | Total
Consolidated | $ | 881.4 |  |  | $ | (10.0) |  |  | $ | — |  |  | $ | (90.8) |  |  | $ | 780.6 |  |  | (10.3) | % |  | (11.4) | %
Domestic | 600.7 |  |  | — |  |  | — |  |  | (84.3) |  |  | 516.4 |  |  | (14.0) | % |  | (14.0) | %
International | 280.7 |  |  | (10.0) |  |  | — |  |  | (6.5) |  |  | 264.2 |  |  | (2.3) | % |  | (5.9) | %

The organic decrease during the first quarter of 2025 was due t o net client losses in our healthcare sector and lower spending from existing clients and net client losses in our retail and auto & transportation sectors, partially offset by higher spending from existing clients in our technology & telecom and financial services sectors. T he (14.0)% organic decrease during
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
the first quarter of 2025 in our domestic market was due to revenue decreases in our advertising businesses. In our international markets, the (2.3)% organic decrease was due to revenue decreases in our advertising businesses primarily in the United Kingdom and Asia Pacific regions, partially offset by revenue increases in the Continental Europe region.
Segment EBITA

| Three months ended March 31, |  |  |  |  |  |
| 2025 |  | 2024 |  | Change |  |  |  |  |  |
Segment EBITA | $ | (1.5) |  |  | $ | 107.9 |  |  | (101.4) | % |  |  |  |  |  |
Segment EBITA margin on revenue before billable expenses | (0.2) | % |  | 12.2 | % |  |  |  |  |  |  |  |

Segment EBITA margin decreased during the first quarter of 2025 compared to the prior-year period, as revenue before billable expenses, as discussed above, decreased and our operating expenses, excluding billable expenses and amortization of acquired intangibles, increased. Segment EBITA reflects the inclusion of $55.9 and $0.3 of restructuring charges for the three months ended March 31, 2025 and 2024. Salaries and related expenses decreased as compared to the prior-year period, primarily due to decreases in base salaries, benefits and tax, severance expense and temporary help expense, partially offset by increases in performance-based employee compensation expense. Office and other direct expense increased mainly due to increases in technology & software expense and foreign currency losses, partially offset by a decrease in occupancy expense.
Depreciation and amortization, excluding amortization of acquired intangibles, as a percentage of revenue before billable expenses was 1.6% during the first quarter of 2025, which increased compared to the prior-year period.
Specialized Communications & Experiential Solutions
Revenue before billable expenses

|  |  | Components of Change |  |  |  | Change
| Three months ended March 31, 2024 | Foreign Currency |  | Net Acquisitions/ (Divestitures) |  | Organic |  | Three months ended March 31, 2025 | Organic |  | Total
Consolidated | $ | 340.2 |  |  | $ | (2.9) |  |  | $ | (2.1) |  |  | $ | (8.3) |  |  | $ | 326.9 |  |  | (2.4) | % |  | (3.9) | %
Domestic | 242.1 |  |  | — |  |  | — |  |  | (2.0) |  |  | 240.1 |  |  | (0.8) | % |  | (0.8) | %
International | 98.1 |  |  | (2.9) |  |  | (2.1) |  |  | (6.3) |  |  | 86.8 |  |  | (6.4) | % |  | (11.5) | %

The organic decrease during the first quarter of 2025 was mainly attributable to decreased spend from existing clients in our food & beverage, other and technology & telecom sectors, partially offset by increased spending from existing clients and net client wins in our health care, retail and financial services sectors. The organic decrease of (0.8)% during the first quarter of 2025 in our domestic market was due to revenue decreases at our experiential businesses, partially offset by revenue increases at our public relations agencies. In our international markets, the (6.4)% organic decrease was due to revenue decreases at our experiential businesses across nearly all regions and at our public relations agencies, primarily in our United Kingdom region, slightly offset by revenue increases at our public relations agencies in our Other region led by Canada.
Segment EBITA

| Three months ended March 31, |  |  |  |  |  |
| 2025 |  | 2024 |  | Change |  |  |  |  |  |
Segment EBITA | $ | 18.5 |  |  | $ | 43.9 |  |  | (57.9) | % |  |  |  |  |  |
Segment EBITA margin on revenue before billable expenses | 5.7 | % |  | 12.9 | % |  |  |  |  |  |  |  |

Segment EBITA margin decreased during the first quarter of 2025 compared to the prior-year period, as our revenue before billable expenses, decreased and our operating expenses, excluding billable expenses and amortization of acquired intangibles, increased. Segment EBITA reflects the inclusion of $21.7 and $0.3 of restructuring charges for the three months ended March 31, 2025 and 2024, respectively. The decrease in salaries and related expenses, as compared to the prior-year period, was
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
primarily due to decreases in base salaries, benefits and tax, severance expense and temporary help expense, partially offset by increased performance-based employee compensation expense. Office and other direct expense increased mainly due to increases in technology & software expenses and foreign currency losses, partially offset by decreases in occupancy expense.
Depreciation and amortization, excluding amortization of acquired intangibles, as a percentage of revenue before billable expenses was 1.0% during the first quarter of 2025, which remained relatively flat as compared to the prior-year period.
CORPORATE AND OTHER
Corporate and Other is primarily comprised of selling, general and administrative expenses including corporate office expenses as well as shared service center and certain other centrally managed expenses that are not fully allocated to operating divisions; salaries, long-term incentives, annual bonuses and other miscellaneous benefits for corporate office employees; professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services that are engaged and managed through the corporate office; and rental expense for properties occupied by corporate office employees. A portion of centrally managed expenses is allocated to operating divisions based on formulas that use planned or actual revenues of each of the operating units. Amounts allocated also include specific charges for information technology-related projects, which are primarily allocated based on utilization.
During the first quarter of 2025, Corporate and Other expenses increased by $74.1 compared to the prior-year period to $114.2, primarily attributable to an increase in selling, general and administrative exp enses, as well as restructuring charges, which is discussed in the Results of Operations section.
LIQUIDITY AND CAPITAL RESOURCES
CASH FLOW OVERVIEW
The following table summarizes key financial data relating to our liquidity, capital resources and uses of capital.

| Three months ended March 31,
Cash Flow Data | 2025 |  | 2024
Net income (loss) | $ | (85.3) |  |  | $ | 113.6 |
Adjustments to reconcile to net cash used in operating activities 1 | 164.3 |  |  | 105.3 |
Net cash used in working capital 2 | (86.1) |  |  | (340.3) |
Changes in other non-current assets and liabilities | (29.9) |  |  | (36.0) |
Net cash used in operating activities | $ | (37.0) |  |  | $ | (157.4) |
Net cash used in investing activities | (58.2) |  |  | (50.0) |
Net cash used in financing activities | (248.0) |  |  | (227.1) |

1 Consist primarily of non-cash restructuring charges, depreciation and amortization of fixed assets and intangible assets, deferred income taxes and net losses on sales of businesses.
2 Reflects changes in accounts receivable, prepaid expenses, other current assets, accounts payable, accrued liabilities and contract liabilities.
Operating Activities
The presentation of the three components of net cash provided by operating activities above reflects the manner in which management views and analyzes this information. Management believes this presentation is useful as it presents cash provided by operating activities separately from the impact of changes in working capital, which is seasonal in nature and is impacted by the timing of media buying on behalf of our clients. Additionally, we view changes in other non-current assets and liabilities separately, as these items are not impacted by the factors described below.
Due to the seasonality of our business, we typically use cash from working capital in the first nine months of a year, with the largest impact in the first quarter, and generate cash from working capital in the fourth quarter, driven by the seasonally strong media spending by our clients. Quarterly and annual working capital results are impacted by the fluctuating annual media spending budgets of our clients as well as their changing media spending patterns throughout each year across various countries.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
The timing of media buying on behalf of our clients across various countries affects our working capital and operating cash flow and can be volatile. In most of our businesses, our agencies enter into commitments to pay production and media costs on behalf of clients. To the extent possible, we pay production and media charges after we have received funds from our clients. The amounts involved, which substantially exceed our revenues, primarily affect the level of accounts receivable, accounts payable, accrued liabilities and contract liabilities. Our assets include both cash received and accounts receivable from clients for these pass-through arrangements, while our liabilities include amounts owed on behalf of clients to media and production suppliers. Our accrued liabilities are also affected by the timing of certain other payments. For example, while annual cash incentive awards are accrued throughout the year, they are generally paid during the first quarter of the subsequent year.
Net cash used in operating activities during the first quarter of 2025 was $37.0, which was a decrease of $120.4 compared to net cash used in operating activities of $157.4 in the first quarter of 2024. The change was due to a decrease in working capital usage of $254.2, as well as the impact of our net loss of $85.3 for the first quarter of 2025, which includes restructuring charges of $203.3. Working capital use was primarily impacted by the spending levels of our clients, lower accrued incentive payments and variation in the timing of collections and payments around the reporting period.
Investing Activities
Net cash used in investing activities during the first quarter of 2025 was $58.2, which was an increase of $8.2 as compared to the first quarter of 2024, driven by an increase of cash used for acquisitions, net of cash acquired of $48.4, partially offset by an increase from net proceeds from sale of businesses, net of cash sold and a decrease of capital expenditures as compared to the first quarter of 2024. Payments for capital expenditures decreased to $21.5 in the first quarter of 2025 from $35.1 in the first quarter of 2024, primarily attributable to lower spending on computer hardware and internal-use computer software.
Financing Activities
Net cash used in financing activities during the first quarter of 2025 was $248.0, primarily driven by the payment of common stock dividends of $125.3 and common stock repurchases of $90.0.
Net cash used in financing activities during the first quarter of 2024 was $227.1, primarily driven by the payment of common stock dividends of $126.6 and common stock repurchases of $62.4.
Foreign Exchange Rate Changes
The effect of foreign exchange rate changes on cash, cash equivalents and restricted cash included in the unaudited Consolidated Statements of Cash Flows resulted in a net increase of $23.4 during the first quarter of 2025. The increase was primarily a result of the U.S. Dollar being weaker than several foreign currencies, including the Euro as of March 31, 2025 as compared to December 31, 2024.
LIQUIDITY OUTLOOK
We expect our cash flow from operations and existing cash and cash equivalents to be sufficient to meet our anticipated operating requirements at a minimum for the next twelve months. We also have a commercial paper program, a committed corporate credit facility, and uncommitted lines of credit to support our operating needs. Borrowings under our commercial paper program are supported by our committed corporate credit agreement. We continue to maintain a disciplined approach to managing liquidity, with flexibility over significant uses of cash, including our capital expenditures, cash used for new acquisitions, our common stock repurchase program and our common stock dividends.
From time to time, we evaluate market conditions and financing alternatives for opportunities to raise additional funds or otherwise improve our liquidity profile, enhance our financial flexibility and manage market risk. Our ability to access the capital markets depends on a number of factors, which include those specific to us, such as our credit ratings, and those related to the financial markets, such as the amount or terms of available credit. There can be no guarantee that we would be able to access new sources of liquidity, or continue to access existing sources of liquidity, on commercially reasonable terms, or at all.
Funding Requirements
Our most significant funding requirements include our operations, non-cancelable operating lease obligations, capital expenditures, acquisitions, common stock dividends, taxes, and debt service. Additionally, we may be required to make payments to minority shareholders in certain subsidiaries if they exercise their options to sell us their equity interests.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Notable funding requirements include:
•Debt service – As of March 31, 2025, we had outstanding short-term borrowings of $34.0 from our uncommitted lines of credit used primarily to fund short-term working capital needs. The remainder of our debt is primarily long-term, with maturities scheduled from 2028 through 2048.
•Acquisitions – We paid cash of $48.4, net of cash acquired, related to the acquisition of an e-commerce, intelligence platform, completed in the first quarter of 2025. We paid deferred payments of $5.8 for prior-year acquisitions as well as ownership increases in our consolidated subsidiaries in the first quarter of 2025. In addition to potential cash expenditures for new acquisitions, we expect to pay approximately $5.0 over the next twelve months related to all completed acquisitions as of March 31, 2025. We may also be required to pay approximately $9.0 related to redeemable non-controlling interest held by minority shareholders, if exercised, over the next twelve months. We will continue to evaluate strategic opportunities to grow and continue to strengthen our market position, particularly in our digital and marketing services offerings, and to expand our presence in high-growth and key strategic world markets.
•Dividends – In the first quarter of 2025, we paid a quarterly cash dividend of $0.330 per share on our common stock. Total dividends paid during the quarter were $125.3. Assuming we pay a quarterly dividend of $0.330 per share, and there is no significant change in the number of outstanding shares as of March 31, 2025, we would expect to pay approximately $489.0 over the next twelve months. Whether to declare and the amount of any such future dividend is at the discretion of our Board of Directors (the "Board") and will depend upon factors such as our earnings, financial position and cash requirements.
•U.K. Pension Plan – In December 2023, the Interpublic Limited Pension Plan in the U.K., (the "U.K. Pension Plan") the Company's U.K. defined benefit pension plan, entered into an agreement with an insurance company to purchase a group annuity, or "buy-in", that matches the plans future projected benefit obligations to covered participants. As part of the annuity purchase contract, the U.K. Pension Plan has the option to complete a "buy-out", which would transfer all liabilities of the plan to the insurer, which the Company anticipates to be completed in 2026. The non-cash settlement charge, net of tax, associated with the transaction is currently estimated to be approximately $180.0 to $200.0 and is subject to finalization of terms and changes in the British Pound Sterling.
Share Repurchase Programs
On February 7, 2024, our Board authorized a share repurchase program to repurchase from time to time up to $320.0, excluding fees, of our common stock.
On February 11, 2025, the Board authorized a share repurchase program to repurchase from time to time up to $155.0, excluding fees, of our common stock, which was in addition to any amounts remaining under the 2024 share repurchase program.
We may effect such repurchases through open market purchases, trading plans established in accordance with U.S. Securities and Exchange Commission ("SEC") rules, derivative transactions or other means. As of March 31, 2025, $155.0 and $80.1, excluding fees, remains available under the 2025 and 2024 share repurchase programs, respectively. There are no expiration dates associated with the share repurchase programs.
FINANCING AND SOURCES OF FUNDS
Substantially all of our operating cash flow is generated by our agencies. Our cash balances are held in numerous jurisdictions throughout the world, including at the holding company level. Below is a summary of our sources of liquidity.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Credit Agreement
We maintain a committed corporate credit facility, originally dated as of July 18, 2008, which has been amended and restated from time to time (the “Credit Agreement”). We use our Credit Agreement to increase our financial flexibility, to provide letters of credit primarily to support obligations of our subsidiaries and to support our commercial paper program. On May 29, 2024, we amended and restated the Credit Agreement. As amended, among other things, the maturity date of the Credit Agreement was extended to May 29, 2029, and the cost structure of the Credit Agreement was changed. The Credit Agreement continues to include a required leverage ratio of not more than 3.50 to 1.00, among other customary covenants, including limitations on our liens and the liens of our consolidated subsidiaries and limitations on the incurrence of subsidiary debt. At the election of the Company, the leverage ratio may be changed to not more than 4.00 to 1.00 for four consecutive quarters, beginning with the fiscal quarter in which there is an occurrence of one or more acquisitions with an aggregate purchase price of at least $200.0. The Credit Agreement is a revolving facility, under which amounts borrowed by us or any of our subsidiaries designated under the Credit Agreement may be repaid and reborrowed, subject to an aggregate lending limit of $1,500.0, or the equivalent in other currencies. The Company has the ability to increase the commitments under the Credit Agreement from time to time by an additional amount of up to $250.0, provided the Company receives commitments for such increases and satisfies certain other conditions. The aggregate available amount of letters of credit outstanding may decrease or increase, subject to a sublimit of $50.0, or the equivalent in other currencies. Our obligations under the Credit Agreement are unsecured. As of March 31, 2025, there were no borrowings under the Credit Agreement; however, we had $9.3 of letters of credit under the Credit Agreement, which reduced our total availability to $1,490.7.
We were in compliance with all of our covenants in the Credit Agreement as of March 31, 2025. Management utilizes Credit Agreement EBITDA, which is a non-GAAP financial measure, as well as the amounts shown in the table below, calculated as required by the Credit Agreement, in order to assess our compliance with such covenants.

|  | Four Quarters Ended |  |  |  | Four Quarters Ended
Financial Covenant |  | March 31, 2025 |  | Credit Agreement EBITDA Reconciliation |  | March 31, 2025
Leverage ratio (not greater than) 1 |  | 3.50x |  | Net income available to IPG common stockholders |  | $ | 493.7 |
Actual leverage ratio |  | 1.84x |  | Non-operating adjustments 2 |  | 483.3 |
|  |  |  | Operating income |  | 977.0 |
|  |  |  | Add: |  |
|  |  |  | Depreciation and amortization |  | 328.8 |
|  |  |  | Other non-cash charges reducing operating income |  | 296.2 |
|  |  |  | Credit Agreement EBITDA 1 |  | $ | 1,602.0 |

1 The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA (as defined in the Credit Agreement) for the four quarters then ended.
2 Includes adjustments of the following items from our Consolidated Statements of Operations: provision for income taxes, total (expenses) and other income, equity in net income (loss) of unconsolidated affiliates, and net income attributable to non-controlling interests.
Uncommitted Lines of Credit
We also have uncommitted lines of credit with various banks that permit borrowings at variable interest rates and that are primarily used to fund working capital needs. We have guaranteed the repayment of some of these borrowings made by certain subsidiaries. If we lose access to these credit lines, we would have to provide funding directly to some of our operations. As of March 31, 2025, the Company had uncommitted lines of credit in an aggregate amount of $790.7, under which we had outstanding borrowings of $34.0 classified as short-term borrowings on our Consolidated Balance Sheet. The average amount outstanding during the first quarter of 2025 was $44.1 with weighted-average interest rate of approximately 7.2%.
Commercial Paper
The Company is authorized to issue unsecured commercial paper up to a maximum aggregate amount outstanding at any time of $1,500.0. Borrowings under the program are supported by the Credit Agreement described above. Proceeds of the commercial paper are used for working capital and general corporate purposes, including the repayment of maturing indebtedness and other short-term liquidity needs. The maturities of the commercial paper vary but may not exceed 397 days from the date of issue. During the first quarter of 2025, there was no commercial paper activity, and as of March 31, 2025, there was no commercial paper outstanding.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
Cash Pooling
We aggregate our domestic cash position on a daily basis. Outside the United States, we use cash pooling arrangements with banks to help manage our liquidity requirements. In these pooling arrangements, several IPG agencies agree with a single bank that the cash balances of any of the agencies with the bank will be subject to a full right of set-off against amounts other agencies owe the bank, and the bank provides for overdrafts as long as the net balance for all agencies does not exceed an agreed-upon level. Typically, each agency pays interest on outstanding overdrafts and receives interest on cash balances. Our unaudited Consolidated Balance Sheets reflect cash, net of bank overdrafts, under all of our pooling arrangements, and as of March 31, 2025, the amount netted was $2,415.2.
DEBT CREDIT RATINGS
Our debt credit ratings as of April 17, 2025, are listed below.

| Moody’s Investors Service |  | S&P Global Ratings |  | Fitch Ratings
Short-term rating | P-2+ |  | A-2+ |  | F1
Long-term rating | Baa2+ |  | BBB+ |  | BBB+
Outlook | Positive |  | Positive |  | Stable

A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning credit rating agency. The rating of each credit rating agency should be evaluated independently of any other rating. Credit ratings could have an impact on liquidity, either adverse or favorable, because, among other things, they could affect funding costs in the capital markets or otherwise. For example, our Credit Agreement fees and borrowing rates are based on a credit ratings grid, and our access to the commercial paper market is contingent on our maintenance of sufficient short-term debt ratings.
CRITICAL ACCOUNTING ESTIMATES
Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements for the year ended December 31, 2024, included in our 2024 Annual Report. As summarized in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our 2024 Annual Report, we believe that certain of these policies are critical because they are important to the presentation of our financial condition and results of operations, and they require management’s most difficult, subjective or complex judgments, often as a result of the need to estimate the effect of matters that are inherently uncertain. These critical estimates relate to revenue recognition, income taxes, goodwill and other intangible assets, and pension and postretirement benefits. We base our estimates on historical experience and various other factors that we believe to be relevant under the circumstances. Estimation methodologies are applied consistently from year to year, and there have been no significant changes in the application of critical accounting estimates since December 31, 2024. Actual results may differ from these estimates under different assumptions or conditions and further decline in macroeconomic conditions or increasing interest rates could have a negative impact on these estimates, including the fair value of certain assets.
RECENT ACCOUNTING STANDARDS
See Note 15 to the unaudited Consolidated Financial Statements for further information on certain accounting standards that have been recently adopted or that have not yet been required to be implemented and may be applicable to our future operations.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
NON-GAAP FINANCIAL MEASURE
This MD&A includes both financial measures in accordance with U.S. GAAP, as well as a non-GAAP financial measure. The non-GAAP financial measure represents Net Income (Loss) Available to IPG Common Stockholders before Provision for Income Taxes, Total (Expenses) and Other Income, Equity in Net Income (Loss) of Unconsolidated Affiliates, Net Income Attributable to Non-controlling Interests and Amortization of Acquired Intangibles, which we refer to as “Adjusted EBITA”.
Adjusted EBITA should be viewed as supplemental to, and not as an alternative for, Net Income (Loss) Available to IPG Common Stockholders calculated in accordance with U.S. GAAP (“net income”) or operating income calculated in accordance with U.S. GAAP (“operating income”). This section also includes reconciliation of this non-GAAP financial measure to the most directly comparable U.S. GAAP financial measures, as presented below.
Adjusted EBITA is used by our management as an additional measure of our Company’s performance for purposes of business decision-making, including developing budgets, managing expenditures and evaluating potential acquisitions or divestitures. Period-to-period comparisons of Adjusted EBITA help our management identify additional trends in our Company’s financial results that may not be shown solely by period-to-period comparisons of net income or operating income. In addition, we use Adjusted EBITA in the incentive compensation programs applicable to some of our employees in order to evaluate our Company’s performance. Our management recognizes that Adjusted EBITA has inherent limitations because of the excluded items, particularly those items that are recurring in nature. Management also reviews operating income and net income as well as the specific items that are excluded from Adjusted EBITA, but included in net income or operating income, as well as trends in those items. The amounts of those items are set forth, for the applicable periods, in the reconciliation of Adjusted EBITA to net income that accompany our disclosure documents containing non-GAAP financial measures, including the reconciliations contained in this MD&A.
We believe that the presentation of Adjusted EBITA is useful to investors in their analysis of our results for reasons similar to the reasons why our management finds it useful and because it helps facilitate investor understanding of decisions made by management in light of the performance metrics used in making those decisions. In addition, as more fully described below, we believe that providing Adjusted EBITA, together with a reconciliation of this non-GAAP financial measure to net income, helps investors make comparisons between our Company and other companies that may have different capital structures, different effective income tax rates and tax attributes, different capitalized asset values and/or different forms of employee compensation. However, Adjusted EBITA is intended to provide a supplemental way of comparing our Company with other public companies and is not intended as a substitute for comparisons based on net income or operating income. In making any comparisons to other companies, investors need to be aware that companies may use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding U.S. GAAP measures provided by each company under the applicable rules of the SEC.
The following is an explanation of the items excluded by us from Adjusted EBITA but included in net income:
•Total (Expenses) and Other Income, Provision for Income Taxes, Equity in Net Income (Loss) of Unconsolidated Affiliates, and Net Income Attributable to Non-controlling Interests. We exclude these items (i) because these items are not directly attributable to the performance of our business operations and, accordingly, their exclusion assists management and investors in making period-to-period comparisons of operating performance and (ii) to assist management and investors in making comparisons to companies with different capital structures. Investors should note that these items will recur in future periods.
•Amortization of Acquired Intangibles. Amortization of acquired intangibles is a non-cash expense relating to intangible assets arising from acquisitions that are expensed on a straight-line basis over the estimated useful life of the related assets. We exclude amortization of acquired intangibles because we believe that (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired intangible assets. Accordingly, we believe that this exclusion assists management and investors in making period-to-period comparisons of operating performance. Investors should note that the use of intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation and should also note that such expense may recur in future periods.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)
(Amounts in Millions, Except Per Share Amounts)
(Unaudited)
The following table presents the reconciliation of Net Income (Loss) Available to IPG Common Stockholders to Adjusted EBITA for the three months ended March 31, 2025 and 2024.

| Three months ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Revenue before billable expenses | $ | 1,996.3 |  |  | $ | 2,182.9 |  |  |  |  |
Adjusted EBITA Reconciliation: |  |  |  |  |  |  |
Net Income (Loss) Available to IPG Common Stockholders 1,2 | $ | (85.4) |  |  | $ | 110.4 |  |  |  |  |
Add Back: |  |  |  |  |  |  |
Provision for income taxes | (9.2) |  |  | 47.3 |  |  |  |  |
Subtract: |  |  |  |  |  |  |
Total (expenses) and other income | (52.4) |  |  | (23.6) |  |  |  |  |
Equity in net income (loss) of unconsolidated affiliates | (0.1) |  |  | 0.3 |  |  |  |  |
Net income attributable to non-controlling interests | (0.1) |  |  | (3.2) |  |  |  |  |
Operating Income (Loss) 1, 2 | (42.0) |  |  | 184.2 |  |  |  |  |
Add Back: |  |  |  |  |  |  |
Amortization of acquired intangibles | 20.4 |  |  | 20.7 |  |  |  |  |
Adjusted EBITA 1, 2 | $ | (21.6) |  |  | $ | 204.9 |  |  |  |  |
Adjusted EBITA Margin on Revenue before billable expenses | (1.1) | % |  | 9.4 | % |  |  |  |

1 Calculations include restructuring cha rges of $203.3 for the three months ended March 31, 2025 and $0.6 for the three months ended March 31, 2024. See "Restructuring Charges" section of this MD&A and Note 8 of Item 1, Financial Statements and Supplementary Data for further information.
2 C alculations include $4.8 of deal costs incurred during the three months ended March 31, 2025 related to the planned acquisition of IPG by Omnicom. See Note 2 of Item 1, Financial Statements and Supplementary Data, for further information.
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Item 3. | Quantitative and Qualitative Disclosures about Market Risk

In the normal course of business, we are exposed to market risks related to interest rates, foreign currency rates and certain balance sheet items. From time to time, we use derivative instruments, pursuant to established guidelines and policies, to manage some portion of these risks. Derivative instruments utilized in our hedging activities are viewed as risk management tools and are not used for trading or speculative purposes. There has been no significant change in our exposure to market risk during the first quarter of 2025. Our exposure to market risk for changes in interest rates primarily relates to the fair market value and cash flows of our debt obligations. As of both March 31, 2025 and December 31, 2024, approximately 99% of our debt obligations bore interest rates at fixed rates. For further discussion of our exposure to market risk, refer to Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in our 2024 Annual Report.

Item 4. | Controls and Procedures

Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2025, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.
Changes in Internal Control Over Financial Reporting
There has been no change in internal control over financial reporting in the quarter ended March 31, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION

Item 1. | Legal Proceedings

Information about our legal proceedings is set forth in Note 14 to the unaudited Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Item 1A. | Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A, Risk Factors, in our 2024 Annual Report on Form 10-K (the “2024 Annual Report”), which could materially affect our business, financial condition or future results. In the first quarter of 2025, there have been no material changes in the risk factors we have previously disclosed in Item 1A, Risk Factor s, in our 2024 Annual Report. The risks described in our 2024 Annual Report are not the only risks we face, and additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect the Company’s business, financial condition or operating results.

Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds

(c)The following table provides information regarding our purchases of our equity securities during the period from January 1, 2025, to March 31, 2025:

| Total Number of Shares (or Units) Purchased 1 |  | Average Price Paid per Share (or Unit) 2 |  | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs 3 |  | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs 3
January 1 - 31 | 956 |  |  | $ | 28.80 |  |  | — |  |  | $ | 170,066,503 |
February 1 - 28 | 568,363 |  |  | $ | 27.20 |  |  | — |  |  | $ | 325,066,503 |
March 1 - 31 | 3,427,470 |  |  | $ | 26.39 |  |  | 3,411,002 |  |  | $ | 235,066,518 |
Total | 3,996,789 |  |  | $ | 26.50 |  |  | 3,411,002 |  |  |

1 The total number of shares of our common stock purchased includes shares withheld under the terms of grants under employee stock-based compensation plans to offset tax withholding obligations that arose upon vesting and release of restricted shares (the “Withheld Shares”). We repurchased 956 Withheld Shares in January 2025; 568,363 Withheld Shares in February 2025; and 16,468 Withheld Shares in March 2025, for a total of 585,787 Withheld Shares during the three-month period.
2 The average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing (a) the sum for the applicable period of the aggregate value of the tax withholding obligations and the aggregate amount we paid for shares acquired under our share repurchase program, described in Note 6 to the unaudited Consolidated Financial Statements, by (b) the sum of the number of Withheld Shares and the number of shares acquired in our share repurchase program.
3 On February 7, 2024, the Company's Board of Directors authorized a share repurchase program to repurchase from time to time up to $320.0 million, excluding fees, of our common stock. On February 11, 2025, the Board authorized a share repurchase program to repurchase from time to time up to $155.0 million, excluding fees, of our common stock, which was in addition to any amounts remaining under the 2024 share repurchase program.
On December 8, 2024, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with Omnicom Group Inc. ("Omnicom"), pursuant to which a merger subsidiary of Omnicom will merge with and into IPG, with IPG surviving the merger as a direct wholly owned subsidiary of Omnicom. Under the terms of the Merger Agreement, IPG may continue to purchase its common stock in the open market or pursuant to Rule 10b5-1 trading plans, up to $325.0 million in the aggregate per calendar year, and we expect to continue to repurchase our common stock in future periods. The timing and amount of the repurchases will depend on market conditions and other funding requirements. There are no expiration dates associated with the share repurchase programs.

Item 3. | Defaults Upon Senior Securities

None.

Item 4. | Mine Safety Disclosures

Not applicable.

Item 5. | Other Information

None.

Item 6. | Exhibits

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All exhibits required pursuant to Item 601 of Regulation S-K to be filed as part of this report or incorporated herein by reference to other documents are listed in the Index to Exhibits below.
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INDEX TO EXHIBITS

Exhibit No. |  | Description |
31.1 |  | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. |
31.2 |  | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. |
32 |  | Certification of the Chief Executive Officer and the Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350 and Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. |
101 |  | Interactive Data File for the period ended March 31, 2025. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. |
104 |  | Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document and are included in Exhibit 101. |

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

| THE INTERPUBLIC GROUP OF COMPANIES, INC.
| By | /s/ Philippe Krakowsky
|  | Philippe Krakowsky Chief Executive Officer

D ate: April 24, 2025

| By | /s/ Christopher F. Carroll
|  | Christopher F. Carroll Executive Vice President, Controller and Chief Accounting and Business Transformation Officer (Principal Accounting Officer)

Date: April 24, 2025
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