[Management View]
Interpublic Group of Companies (IPG) is focused on strategic transformation programs that have exceeded initial targets, resulting in structural cost savings and positioning the company for a stronger adjusted EBITDA margin. The company is also progressing with the Omnicom acquisition, which is expected to enhance capabilities and geographic reach.

[Outlook]
IPG maintains its guidance for a 1%-2% organic revenue decrease for the year, supported by stable client activity and improved trends in media and healthcare. The adjusted EBITDA margin is expected to exceed the previously guided 16.6%, reflecting cost savings and transformation efforts. The Omnicom acquisition is on track for completion in the second half of the year.

[Financial Performance]
Organic revenue decreased by 3.5% in Q2 2025, impacted by 2024 account losses. Adjusted EBITDA was $393.7 million, with an 18.1% margin, excluding restructuring charges. Diluted EPS was $0.44, with adjusted EPS at $0.75. Share repurchases totaled $98 million for the quarter.

[Q&A Highlights]
Question 1: David Karnovsky asked about the realization of savings and margin outlook, and if there is overlap with Omnicom deal synergies.
Answer: Philippe Krakowsky explained that the restructuring focused on improving service delivery and structural efficiencies, with a strategic approach. The acquisition has helped streamline and modernize the business model, indicating earnings power in the model.

Question 2: David Karnovsky inquired about the inflection in organic growth and the impact of account loss headwinds.
Answer: Krakowsky noted that the impact of account losses was consistent with expectations, but underlying growth is evident in strong-performing units. Sequential improvement in the US is a positive indicator.

Question 3: Stephen Cahall asked about the performance of creative services and the trend towards outcome-based contracts.
Answer: Krakowsky highlighted that traditional creative services face industry-wide challenges, but outcome-based components are growing, with over 50% of media contracts now including such terms.

Question 4: Adam Berlin sought clarification on H2 performance expectations and cost savings.
Answer: Krakowsky indicated that Q3 and Q4 are expected to be similar, with in-year savings of $300 million and ongoing structural savings above $300 million.

Question 5: Bank of America asked about staffing needs and healthcare marketing spending amid policy reforms.
Answer: Krakowsky and Ellen Johnson discussed structural changes and efficiency improvements, noting that growth may require different staffing. Healthcare marketing spending is impacted by policy challenges but remains a strong market.

Question 6: Jason Bazinet inquired about the pro forma entity's strengths and potential gaps post-acquisition.
Answer: Krakowsky expressed confidence in the combined capabilities and geographic fit with Omnicom, emphasizing the strategic power and complete portfolio of the new entity.

[Sentiment Analysis]
The tone of the management was optimistic, focusing on strategic transformation and the benefits of the Omnicom acquisition. Analysts were inquisitive, seeking clarity on financial metrics and future growth prospects.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------|---------|---------|
| Organic Revenue Change | -3.5% | N/A |
| Adjusted EBITDA | $393.7M | N/A |
| Adjusted EBITDA Margin | 18.1% | N/A |
| Diluted EPS | $0.44 | N/A |
| Adjusted Diluted EPS | $0.75 | N/A |

[Risks and Concerns]
Key risks include ongoing account activity losses impacting growth, restructuring charges, and macroeconomic volatility affecting client spending. The completion of the Omnicom acquisition is contingent on remaining jurisdictional clearances.

[Final Takeaway]
Interpublic Group is navigating a challenging environment with strategic transformation initiatives that have yielded significant cost savings and improved operational efficiency. The anticipated completion of the Omnicom acquisition is set to enhance the company's capabilities and market position. Despite headwinds from past account losses, IPG is poised for future growth with a focus on outcome-based contracts and leveraging data and technology to drive client success.