Financial Data and Key Metrics Changes - Like-for-like revenue less pass-through costs fell 5.9% in Q3 2025, leading to a year-to-date decline of 4.8% [3][4] - Overall revenue less pass-through costs was down 11.1% in the quarter [4] - Adjusted net debt at £3.6 billion, stable year-on-year but up from year-end [14][16] - Revised full-year organic growth guidance to -5.5% to -6% [17][18] Business Line Data and Key Metrics Changes - Global integrated agencies experienced a like-for-like decline of 6.2% in Q3 [5] - WPP media saw a like-for-like decline of 5.7%, with a nine-month performance decline of 3.9% [5][6] - Public relations declined by 5.9% in Q3, following a decline of 7.8% in Q2 [10] - Specialist agencies saw a decline of 2.2% in Q3, with strong growth from CMI Media Group [10] Market Data and Key Metrics Changes - North America declined by 6% in Q3, with key drivers being WPP Media and Ogilvy [11] - The UK declined 8.9% in Q3, impacted by media client assignment losses [12] - Western continental Europe saw a like-for-like decline of 4.4% [12] - Healthcare sector delivered high single-digit growth, contrasting with declines in CPG and automotive sectors [13] Company Strategy and Development Direction - The company aims to strengthen financial performance and improve shareholder returns while delivering success for clients [2] - Focus on simplifying and integrating client offerings, powered by data and AI [29] - Plans to leverage data and AI advantages to expand addressable market, particularly in enterprise and technology solutions [26][29] - Emphasis on improving execution and building a high-performance culture [25][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges recent performance has been unacceptable and is focused on identifying and addressing issues [19][24] - Clients desire simpler, more integrated offerings that are efficiently priced [25] - The company is optimistic about growth opportunities in the AI era, positioning itself to lead in this transformation [20][23] Other Important Information - The company has a strong liquidity position with £2.9 billion available at the end of September [17] - The weighted average maturity of bond debt is 6.1 years with an average coupon of 3.5% [16] - The company is committed to maintaining an investment-grade balance sheet [16][71] Q&A Session Summary Question: Insights on lower client spending - Management noted that project work and delays are the main areas of reduced spending, particularly in CPG, automotive, and tech sectors [32][35] Question: Full-year guidance and underlying slowdown - Guidance reflects a cautious outlook due to client losses and volatility in spending patterns, particularly in the media business [41][43] Question: Staff motivation strategies - Management emphasized the importance of retaining top talent and providing a world-class employee experience [50][57] Question: Feedback from lost clients - Initial discussions with lost clients revealed consistent feedback on the complexity of the company's offerings and organizational structure [62][63] Question: Cash flow guidance and working capital - Operating cash flow guidance remains unchanged due to disciplined cash management and FX tailwinds [62][65] Question: Balance sheet strength and investment capabilities - The company maintains a strong balance sheet and is focused on reallocating investments to areas that will deliver the fastest returns [71][72]

Financial Performance - WPP's like-for-like net sales decreased by 5.9%[14] - M&A activities, primarily the disposal of FGS Global, had a negative impact of 3.5% on net sales[14,35] - Foreign exchange headwinds, mainly due to USD weakness, further reduced net sales by 1.7%[14] - Reported net sales amounted to £2,459 million[14] - The company anticipates a like-for-like revenue less pass-through costs growth of -5.5% to -6.0% for the full year 2025[35] - The headline operating margin is expected to be around 13% for FY 2025[35] Business Segment Performance - Integrated Creative Agencies experienced a decline of 6.5% in LFL revenue less pass-through costs[21] - WPP Media saw a decrease of 5.7% in LFL revenue less pass-through costs, impacted by client assignment losses in the US and UK[21,24] - Public Relations declined by 5.9% due to a challenging environment for client discretionary spending[21,24] - Specialist Agencies decreased by 2.2%, with growth in CMI Media Group and Landor offset by declines in smaller agencies[21,24] Regional Performance - North America declined by 6.0%, reflecting client assignment losses and spending cuts[26,28] - The UK experienced a decrease of 8.9%, amplified by client assignment losses and spending cuts[26,28] - Western Continental Europe saw a decline of 4.4%, with Spain outperforming and Germany experiencing a significant step down[26,28] - Asia Pacific declined by 7.4%, with China decreasing by 10.6% due to macro pressures, while India grew by 6.7%[51]

Core Viewpoint - The company is facing significant challenges and has acknowledged the need for substantial improvements to address what has been described as an unacceptable performance [1] Group 1 - The Chief Executive, Cindy Rose, emphasized the urgency of the situation and the extensive work required to achieve a turnaround [1]

Core Viewpoint - WPP has issued a profit warning following a disappointing 5.9% decline in third-quarter net revenue, highlighting the challenges faced by new CEO Cindy Rose in revitalizing the advertising firm [1] Group 1: Financial Performance - WPP reported a 5.9% drop in third-quarter net revenue, which was worse than market expectations [1] - The decline in revenue underscores the difficulties in the advertising sector, particularly for WPP as it navigates a competitive landscape [1] Group 2: Leadership Challenges - New CEO Cindy Rose is tasked with the challenge of turning around the company's performance amid declining revenues [1] - The profit warning indicates significant pressure on the leadership to implement effective strategies for recovery [1]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against WPP plc due to allegations of false and misleading statements regarding the company's expected revenue for fiscal year 2025, which may have led to significant investor losses [2][3]. Summary by Sections Legal Investigation - Faruqi & Faruqi, LLP is encouraging investors who suffered losses in WPP between February 27, 2025, and July 8, 2025, to discuss their legal options [1]. - A federal securities class action has been filed against WPP, with a deadline of December 8, 2025, for investors to seek the role of lead plaintiff [1]. Allegations Against WPP - The complaint alleges that WPP and its executives violated federal securities laws by making false statements and failing to disclose material information about the company's media division and its ability to handle macroeconomic challenges [2]. - WPP's executives claimed that new business wins would offset losses, while concealing the fact that the company was losing market share to competitors [2]. Stock Performance Impact - Following WPP's trading update on July 9, 2025, which indicated a deterioration in performance, the company's stock price fell from $35.82 to $29.34, a decline of approximately 18.1% in one day [4].

Core Viewpoint - A class action securities lawsuit has been filed against WPP plc, alleging securities fraud that negatively impacted investors between February 27, 2025, and July 8, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that WPP's management provided overly positive statements while concealing material adverse facts about the company's media arm, which was struggling to cope with macroeconomic challenges and losing market share [2]. - On July 9, 2025, WPP reported a deterioration in performance for Q2 2025, attributing this to macroeconomic uncertainty and weaker new business, partly due to ongoing restructuring within WPP Media (GroupM) [2]. - Following the trading update, WPP's stock price plummeted from $35.82 per share on July 8, 2025, to $29.34 per share on July 9, 2025, marking an 18.1% decline in a single day [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified period have until December 8, 2025, to request appointment as lead plaintiff in the lawsuit [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4]. - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4].

Core Viewpoint - WPP PLC is facing a class action lawsuit due to allegations of misleading investors about its business prospects and financial performance during the specified class period [1][2]. Group 1: Allegations and Company Performance - The lawsuit claims that WPP PLC misrepresented its revenue outlook and growth potential, downplaying risks associated with seasonality and macroeconomic factors [2]. - The complaint indicates that WPP's optimistic projections regarding new client acquisitions and retention were not aligned with actual performance, as the media division struggled to maintain market share [2]. - On July 9, 2025, WPP reported a decline in performance for Q2 2025, attributing this to macroeconomic uncertainties and weaker-than-expected new business, which led to an 18.1% drop in stock price from $35.82 to $29.34 per share [3]. Group 2: Legal Proceedings and Participation - Shareholders are encouraged to participate in the class action and can contact Robbins LLP if they wish to serve as lead plaintiffs, representing the interests of other investors [4]. - Participation in the lawsuit is not mandatory for recovery, allowing shareholders to remain absent class members if they choose [4]. Group 3: Company Background - WPP PLC is a global communications company involved in advertising, media management, consultancy, public relations, and branding services [1].

Core Points - A securities fraud class action lawsuit has been filed against WPP plc, alleging violations of the Securities Exchange Act of 1934 [2] - The lawsuit claims that WPP misrepresented its media arm's capabilities to handle macroeconomic challenges [2] - Investors who purchased WPP common stock between February 27, 2025, and July 8, 2025, are eligible to participate in the lawsuit [2][3] Legal Proceedings - The deadline to file as a lead plaintiff in the class action is December 8, 2025 [3] - Representation in the lawsuit is on a contingency fee basis, meaning shareholders incur no fees or expenses [3] - Investors can remain absent class members if they choose not to take action [3] Firm Background - Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has a strong track record in class action litigation [4] - The firm has been recognized multiple times in The National Law Journal's "Plaintiffs' Hot List" and has been listed in The Legal 500 for sixteen consecutive years [4]

Core Viewpoint - WPP plc is facing a class action lawsuit due to allegations of providing misleading statements about its media arm's performance, leading to a significant drop in stock price after a disappointing trading update [1][2]. Summary by Sections Allegations - The complaint claims that WPP's management made overly positive statements while concealing adverse facts about the company's ability to handle macroeconomic challenges and competition, resulting in a loss of market share [1]. - On July 9, 2025, WPP reported a deterioration in performance for Q2 2025, attributing this to macroeconomic uncertainty and weaker new business, compounded by distractions from ongoing restructuring efforts [1]. Stock Performance - Following the trading update on July 9, 2025, WPP's stock price plummeted from $35.82 per share to $29.34 per share, marking an approximate decline of 18.1% in just one day [1]. Class Action Details - Shareholders who purchased WPP shares during the class period from February 27, 2025, to July 8, 2025, are encouraged to register for the class action, with a deadline for lead plaintiff applications set for December 8, 2025 [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [2].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against WPP plc due to allegations of false and misleading statements regarding the company's expected revenue for fiscal year 2025, leading to significant investor losses [3][5]. Group 1: Allegations Against WPP - The complaint alleges that WPP and its executives violated federal securities laws by making false statements and failing to disclose material information about the company's media division performance [5]. - WPP's executives expressed confidence in revitalizing the media division and claimed that new business wins would offset losses, while concealing the true challenges faced by the company [5]. - The company was reportedly losing significant market share to competitors, which was not disclosed to investors, leading to purchases of WPP securities at inflated prices [5]. Group 2: Impact on Stock Price - On July 9, 2025, WPP announced a deterioration in performance, attributing it to macroeconomic uncertainties and weaker new business than expected, which led to a dramatic stock price decline [6][7]. - The stock price fell from $35.82 per share on July 8, 2025, to $29.34 per share on July 9, 2025, marking an approximate decline of 18.1% in one day [7]. Group 3: Legal Proceedings - Investors who suffered losses are encouraged to contact Faruqi & Faruqi to discuss their legal rights, with a deadline of December 8, 2025, to seek the role of lead plaintiff in the class action [3][9]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [8].