WPP reported a staggering 71.2% plunge in reported operating profit for FY25, dropping to £382 million from £1.33 billion. This dramatic fall resulted directly from a £641 million goodwill impairment charge, significantly impacting revenue which declined 8.1% to £13.55 billion. The company also warned of further declines in the first half of 2026, sending its shares down over 8%.

Chief Executive Cindy Rose attributed the underperformance to excessive organizational complexity, a lack of an integrated operating model, and inconsistent strategic execution. The £641 million impairment stands as the primary driver of the profit collapse, overshadowing other factors like restructuring costs and property impairments totaling £939 million. Revenue less pass-through costs fell 10.4% reported and 5.4% like-for-like, highlighting persistent pressure on core metrics.