S4 Capital reported a 6.9% drop in net revenue for the third quarter to 167 GBP with an organic revenue shortfall of 4.4%. Results were below expectations, and company shares were down more than 7% in midday trading. 

Net revenue for the first nine months was 495 GBP, down 10.8%, and the organic decline was 8.2%. Organic revenue growth excludes M&A and currency impact. 

The company said that the full-year 2025 organic revenue decline would be in the “upper single digits” on a percentage basis. That’s a downgrade from September when the firm projected a mid-single-digit decline. Earlier it expected growth to be flat for the year. 

The Americas—accounting for about 80% of the company’s business—reported organic growth of 1.6% for the quarter with a decline of 5.6% for the first nine months of the year. 

Company executive chairman Martin Sorrell cited continuing “volatile global macroeconomic conditions” and cautious clients as reasons contributing to the further declines. 

“The global macroeconomic environment has been challenging in 2025,” Sorrell said. "Assessing the impact of US imposed tariffs was added to the three key risks around US/China relations, Russia/Ukraine and Iran/Middle-East. Clients, therefore, are likely to continue to remain cautious.” 

New business wins for the company this year include Asana, Amplifon, Samsung, Square, NCS, Opella, Visa, Cinemark and HelloFresh. Sorrell said, “We also continue to expand many of our existing relationships, in particular General Motors, Amazon, T-Mobile and PIF.” Sorrell also reported two new unidentified US-based global consumer goods clients, “which are ramping up significantly in the second half of the year.” 

“The strategy of S4 Capital remains the same,” the company stated in a trading update. “The Company's unitary, purely digital transformation model, based on first-party data fueling the creation, production and distribution of digital advertising content, distributed by digital media and built on technology platforms to ensure success and efficiency, resonates with clients.” 

UK investment bank Panmure Liberum issued a note in which it retained its “hold” rating on S4 Capital shares. “Q3 was tougher than management expected,” the bank noted. “Slow ramp-up in new client spend and client caution were indicated to be material factors... Q4 was already expected to be tougher than Q3,” which the firm concluded implies a “tough 2025 exit rate.”  

The bank added that S4 “continues to focus on improving its offer via AI solutions. We can’t see when the potential traction will offset the pressure in the top-line and the risk in content production. Americas exposure is favorable, but risks remain, and it is too early to buy into potential of flat 2026 revenue objective.”