S4 Capital reported a 14.3% net revenue decline in the first quarter to 178 million GBP (about $235 million) with an organic net revenue shortfall 11.4% 

All of the firm’s geographic regions were down double digits including the Americas (accounting for 80% of the business) which was down 10.5%. 

Company leader Martin Sorrell cited the volatile macroeconomic picture—heightened by the Trump tariff war--that has clients generally remaining cautious. 

The firm’s technology services practice was impacted by cutbacks by a larger client, Sorrell noted, adding that technology clients are generally prioritizing capital expenditures such as AI over operating expenditures like marketing. Tech clients account for nearly half of the firm’s business. 

Sorrell said the firm expects improvement in the second half, aided by the phasing in of revenue from new business wins. In the meantime the company will continue to pay strict attention to costs.  

New business wins in the first quarter included new or broadened relationships with Asana, Amplifon, Samsung, Square, NCS and Opella. The company said its remits for General Motors and Amazon have also expanded and will “ramp up significantly” in the second half. 

The company said it was maintaining financial targets spelled out earlier in the year, including net revenue and pre-tax earnings that will be “broadly” similar to 2024. The company did not provide a specific percentage or range for organic net revenue expectations.