Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [6][7] - Non-GAAP adjusted EBITDA for the quarter was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [7][14] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [7][14] - The reported income tax rate was 27.2%, up from 26.8% in the prior year, primarily due to non-deductible acquisition-related costs [16][17] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [18] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [18] - Public Relations declined by 8%, largely due to the absence of U.S. national election-related revenue [19] - Healthcare revenues decreased by 2% organically, with declines in both U.S. and European agencies [20] - Branding and retail commerce fell by 17%, and experiential marketing declined by 18% due to tough comparisons with the previous year [21] Market Data and Key Metrics Changes - The U.S. market saw a revenue growth of 4.6%, while the UK grew by 3.7%. Continental Europe experienced a decline of 3.1% [22] - Non-euro markets delivered organic growth, but this was offset by declines in the events business [22] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic, with plans to close the deal by late November [7][8] - The launch of OmniPlus, a next-generation marketing operating system, is anticipated to enhance client services and internal operations [9][11] - The integration planning aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize operational disruption [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects and the value expected from the acquisition of Interpublic [12] - The operating environment remains challenging, but the company is optimistic about capturing project work in Q4 [39][40] - Management noted that despite macroeconomic challenges, the fundamentals of the business remain strong, with no significant loss of personnel or business [40] Other Important Information - The company continues to maintain a strong liquidity position with cash equivalents and short-term investments totaling $3.4 billion [27] - Free cash flow for the nine months ended September 30 was impacted by acquisition-related and repositioning costs, but operating capital improved significantly [25][26] Q&A Session Summary Question: When will the market receive updates on pro forma financials post-acquisition? - Management indicated plans to disclose future operations and portfolio details around the week of CES in January [33] Question: What caused the deceleration in Precision Marketing? - The decline was primarily due to issues in the consulting business related to government work in major European cities, but the rest of the business remains strong [35] Question: Confirmation of organic growth guidance for the year? - Management confirmed that they are comfortable with the original guidance of 3% growth for the year [38] Question: How is the creative business performing within media growth? - The creative business is stable, with growth primarily driven by the media side [46] Question: What are the biggest opportunities for revenue synergies post-acquisition? - Key opportunities identified include media business expansion, healthcare portfolio enhancement, and improvements in precision marketing [72]