PHILADELPHIA , Nov. 18, 2025 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating the fairness of the recently announced proposed buyout of Heidrick & Struggles International, Inc. (NASDAQ: HSII) (“Heidrick”) stockholders to determine whether the buyout price undervalues the company’s shares. Click here for additional information about your legal rights and options: https://kaskelalaw.com/case/heidrick-struggles/ October 6, 2025, Heidrick announced that it had agreed to be acquired by a co ...

Core Viewpoint - Heidrick & Struggles International, Inc. is facing scrutiny regarding the fairness of its proposed buyout at $59.00 per share, which may not adequately reflect the company's strong financial performance [1][2]. Financial Performance - On November 3, 2025, Heidrick reported earnings per share of $0.83, exceeding the estimated $0.76, and achieved revenue of approximately $322.8 million, surpassing the estimated $304.9 million, indicating a robust financial position [2]. Stock Performance - HSII's current stock price is $58.63, slightly below the proposed buyout price of $59.00 per share, with a market capitalization of approximately $1.22 billion. The stock has shown a stable growth trajectory over the past year, trading between a high of $58.85 and a low of $36.87 [3]. Investor Interest - The trading volume for HSII today is 212,208 shares, indicating active investor interest. Shareholders who believe the buyout price undervalues the company are encouraged to reach out to Kaskela Law LLC, which specializes in representing investors in securities fraud and corporate governance [4].

Accessibility StatementSkip Navigation Kaskela Law LLCexclusivelyrepresents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. Since 2020, Kaskela Law LLC has helped to recover over $500 million for investors. For additional information about Kaskela Law LLC please visitwww.kaskelalaw.com.     CONTACT: Kaskela Law LLC   D. Seamus Kaskela, Esq.   ([email protected])   Adrienne Bell, Esq.   ([email protected])   18 Campus Blvd. ...

Accessibility StatementSkip Navigation Q3 Revenue Exceeds High End of Outlook All Lines of Business Contribute to Consolidated Revenue Growth Third Quarter 2025 Financial Highlights: CHICAGO, Nov. 3, 2025 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles", "Heidrick" or the "Company"), a premier provider of global leadership advisory and on-demand talent solutions, today announced financial results for its third quarter ended September 30, 2025. "We continued our ...

Merger and Acquisition - The Company has entered into a Merger Agreement with Heron BidCo, LLC, where each share of common stock will be converted into the right to receive $59.00 in cash[133]. - The Merger is subject to stockholder approval and customary closing conditions, including regulatory approvals[133]. Revenue Performance - Total revenue increased by $45.1 million, or 15.9%, to $327.9 million for the three months ended September 30, 2025, compared to $282.8 million for the same period in 2024[147]. - Net revenue before reimbursements rose by $44.3 million, or 15.9%, to $322.8 million for the three months ended September 30, 2025, with a positive impact of $4.6 million from foreign exchange fluctuations[148]. - Executive Search net revenue was $239.1 million for the three months ended September 30, 2025, an increase of $34.7 million, or 17.0%, compared to the same period in 2024[148]. - Consolidated total revenue increased by $102.5 million, or 12.3%, to $937.2 million for the nine months ended September 30, 2025, compared to $834.8 million for the same period in 2024[183]. - Executive Search net revenue was $690.6 million for the nine months ended September 30, 2025, an increase of $74.8 million, or 12.1%, compared to the same period in 2024, driven by a 5.9% increase in the number of executive search confirmations[184]. Segment Performance - The Americas segment reported net revenue of $162.5 million for the three months ended September 30, 2025, an increase of 20.8% compared to $134.5 million for the same period in 2024[161]. - The Europe segment reported net revenue of $50.9 million for the three months ended September 30, 2025, an increase of 18.0% compared to $43.1 million for the same period in 2024[165]. - The Asia Pacific segment reported net revenue of $25.6 million for the three months ended September 30, 2025, a decrease of 3.9% compared to $26.7 million for the same period in 2024[169]. - The Americas segment reported net revenue of $467.1 million for the nine months ended September 30, 2025, an increase of 11.7% compared to $418.3 million for the same period in 2024[199]. - The Europe segment reported net revenue of $148.8 million for the nine months ended September 30, 2025, an increase of 19.3% compared to $124.7 million for the same period in 2024[204]. - The Asia Pacific segment reported net revenue of $74.8 million for the nine months ended September 30, 2025, an increase of 2.7% compared to $72.8 million for the same period in 2024[210]. Expenses and Costs - Salaries and benefits expense increased by $34.8 million, or 19.0%, to $217.8 million for the three months ended September 30, 2025, compared to $183.0 million for the same period in 2024[150]. - General and administrative expenses rose by $2.0 million, or 5.1%, to $41.8 million for the three months ended September 30, 2025, compared to $39.7 million for the same period in 2024[152]. - Cost of services increased by $6.6 million, or 21.3%, to $37.6 million for the three months ended September 30, 2025, compared to $31.0 million for the same period in 2024[154]. - Salaries and benefits expense increased by $81.2 million, or 15.2%, to $616.5 million for the nine months ended September 30, 2025, compared to $535.3 million for the same period in 2024[186]. - General and administrative expenses decreased by $2.3 million, or 12.1%, for the nine months ended September 30, 2025, due to reduced business development travel and office occupancy costs[225]. - Cost of services rose by $3.6 million, or 47.3%, for the nine months ended September 30, 2025, attributed to an increase in the volume of consulting projects[226]. Adjusted EBITDA - Adjusted EBITDA was $34.2 million for the three months ended September 30, 2025, an increase of $3.8 million, or 12.6%, compared to $30.4 million for the same period in 2024[157]. - Consolidated Adjusted EBITDA increased by $12.1 million, or 14.2%, to $97.2 million for the nine months ended September 30, 2025, with an Adjusted EBITDA margin of 10.5%[195]. - Adjusted EBITDA for the Americas segment was $48.9 million for the three months ended September 30, 2025, an increase of $8.4 million, or 20.8%, compared to $40.5 million for the same period in 2024[164]. - Adjusted EBITDA for the Europe segment was $6.6 million for the three months ended September 30, 2025, an increase of $1.6 million, or 31.0%, compared to $5.0 million for the same period in 2024[168]. - The On-Demand Talent segment achieved an Adjusted EBITDA of $4.3 million for the nine months ended September 30, 2025, improving from an Adjusted EBITDA loss of $0.8 million for the same period in 2024[222]. - Adjusted EBITDA loss for Heidrick Consulting improved by $1.0 million, or 23.4%, to a loss of $3.4 million for the nine months ended September 30, 2025, compared to a loss of $4.4 million in 2024[227]. Consultant Metrics - Key performance indicators include net revenue, Adjusted EBITDA, and Adjusted EBITDA margin, with a focus on consultant headcount and productivity metrics[136]. - The Company utilizes a tiered payout model for consultant compensation, linking a portion of compensation to net revenue generated[142]. - The average revenue per executive search was $162,000 for the three months ended September 30, 2025, compared to $149,000 for the same period in 2024[149]. - The number of Executive Search consultants increased to 421 as of September 30, 2025, compared to 414 as of September 30, 2024[149]. Digital Solutions and Innovation - The Company has integrated new digital solutions for consulting services, enhancing virtual delivery capabilities[131]. - Consolidated R&D expense increased by $1.8 million, or 10.9%, to $18.8 million for the nine months ended September 30, 2025, reflecting the company's focus on developing new technologies[192]. Cash and Financial Position - Cash used in operating activities was $28.9 million for the nine months ended September 30, 2025, primarily due to an increase in accounts receivable of $63.6 million[238]. - Cash, cash equivalents, and marketable securities totaled $528.1 million as of September 30, 2025, including $214.3 million held by foreign subsidiaries[237]. - The company had no outstanding borrowings as of September 30, 2025, and was in compliance with financial covenants under the Amended Credit Agreement[236]. - Net non-operating income increased to $14.6 million for the nine months ended September 30, 2025, compared to $12.3 million for the same period in 2024[196]. - A 10% change in average exchange rates for foreign currencies would have impacted net income by approximately $1.2 million for the nine months ended September 30, 2025[249].

Financial Performance - Q3 2025 net revenue reached $322.8 million, a 15.9% increase year-over-year from $278.6 million in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $34.2 million, up 12.6% from $30.4 million in Q3 2024, with an adjusted EBITDA margin of 10.6%[9] - Net income for Q3 2025 was $17.6 million, compared to $14.8 million in Q3 2024, resulting in diluted earnings per share of $0.83, up from $0.71[9] - Total revenue for Q3 2025 reached $327,896 thousand, reflecting a $45,081 thousand increase or 15.9% compared to Q3 2024[24] - Net income for Q3 2025 was $17,646 thousand, compared to $14,829 thousand in Q3 2024, marking an increase of 19.0%[24] - Earnings per diluted share improved to $0.83 in Q3 2025, up from $0.71 in Q3 2024[24] - Total Adjusted EBITDA for Q3 2025 was $34,244 thousand, a 12.6% increase from $30,415 thousand in Q3 2024[26] - Operating income for the nine months ended September 30, 2025, surged to $60,619 thousand, a 94.5% increase from $31,173 thousand in the same period of 2024[28] - Comprehensive income for the nine months ended September 30, 2025, was $60,785 thousand, compared to $24,515 thousand in the same period of 2024[28] - Net income for the nine months ended September 30, 2025, reached $52,025 thousand, compared to $23,704 thousand for the same period in 2024, reflecting a growth of 119.5%[34] Revenue Segments - Executive Search segment generated $239.1 million in Q3 2025, a 17.0% increase from $204.4 million in Q3 2024[10] - On-Demand Talent segment revenue increased by 10.1% to $50.9 million in Q3 2025, compared to $46.2 million in Q3 2024[11] - Heidrick Consulting segment revenue rose 17.6% to $32.8 million in Q3 2025, up from $27.9 million in Q3 2024[12] - Revenue growth was driven by increases across all business lines: Executive Search, On-Demand Talent, and Heidrick Consulting[8] - Executive Search revenue in the Americas grew by 20.8% to $162,508 thousand in Q3 2025, compared to $134,545 thousand in Q3 2024[26] - Total Executive Search revenue increased to $239,083 thousand in Q3 2025, up 17.0% from $204,389 thousand in Q3 2024[26] Operational Metrics - The ending number of consultants increased to 421 in Q3 2025 from 414 in Q3 2024, indicating growth in human capital resources[7] - Operating expenses rose to $308,735 thousand in Q3 2025, a 17.1% increase from $263,733 thousand in Q3 2024[24] - Operating income for the nine months ended September 30, 2025, was $60,619 thousand, significantly higher than $31,173 thousand for the same period in 2024, marking an increase of 94.3%[34] Balance Sheet Highlights - Total assets increased to $1,264,262 thousand as of September 30, 2025, up from $1,194,188 thousand on December 31, 2024, representing a growth of 5.8%[32] - Total current liabilities rose to $538,975 thousand as of September 30, 2025, compared to $483,013 thousand on December 31, 2024, indicating an increase of 11.6%[32] - Stockholders' equity increased to $509,220 thousand as of September 30, 2025, up from $452,817 thousand on December 31, 2024, showing a growth of 12.5%[32] - Total liabilities increased to $755,042 thousand as of September 30, 2025, compared to $741,371 thousand on December 31, 2024, reflecting a rise of 1.8%[32] - Cash and cash equivalents decreased to $454,640 thousand as of September 30, 2025, down from $515,627 thousand on December 31, 2024, a decline of 11.8%[32] Corporate Actions - The company declared a cash dividend of $0.15 per share for Q3 2025, payable on November 26, 2025[5] - The company is in the process of a take-private transaction at $59.00 per share, led by Advent International and Corvex Private Equity[4]

Industry Overview - The Staffing Firms industry is expected to gradually return to pre-pandemic levels, enabling companies to distribute regular dividends [1] - The industry encompasses a wide range of human resources and workforce solutions, including recruitment, payroll administration, and organizational planning [2] Market Trends - The industry is characterized by stable demand, with revenues and cash flows anticipated to recover to pre-pandemic levels [3] - The adoption of remote work and hybrid models has surged, prompting staffing agencies to focus on flexible staffing solutions [4] - Technological advancements are being integrated into staffing operations, enhancing efficiency and service quality [5] Performance Metrics - The Zacks Staffing Firms industry currently holds a Zacks Industry Rank of 219, placing it in the bottom 10% of 243 Zacks industries [6] - Over the past year, the industry has underperformed the S&P 500, declining by 35.6% compared to the S&P 500's growth of 19% [8] - The industry is trading at an EV-to-EBITDA ratio of 5.77X, significantly lower than the S&P 500's 18.87X and the sector's 10.93X [11] Company Highlights - **Kelly Services (KELYA)**: The company is experiencing growth driven by the acquisition of Motion Recruitment Partners, with a 5.3% year-over-year organic growth in its education business [15][16] - **Heidrick & Struggles International (HSII)**: The company has shown strong performance due to its focus on executive search and consulting, with a 50.9% increase in shares over the past six months [20][22] - **DLH Holdings (DLHC)**: The company is investing in tech integration and advanced solutions in cybersecurity, with shares increasing by 56.4% in the past six months [25][27]

Core Viewpoint - Kaskela Law LLC is investigating the proposed buyout of Heidrick & Struggles International, Inc. to assess the fairness of the transaction for the company's investors [1][3]. Group 1: Buyout Details - Heidrick announced an agreement to be acquired by a consortium of private equity funds at a price of $59.00 per share in cash [2]. - Following the transaction's closing, Heidrick shareholders will be cashed out and will not benefit from any future financial upside [2]. Group 2: Investigation Findings - The investigation has identified significant conflicts of interest related to the proposed transaction, suggesting that the sales process and monetary consideration may be unfair to current shareholders [3]. Group 3: Shareholder Actions - Heidrick shareholders who believe the buyout price is too low are encouraged to contact Kaskela Law LLC to discuss their legal rights and options regarding the transaction [4].

Core Viewpoint - Heidrick is under investigation for potential breaches of fiduciary duty and other legal violations related to its transaction with Advent and Corvex, which involves a significant cash payout to shareholders [1][2]. Group 1: Transaction Details - Heidrick's shareholders are set to receive $59.00 per share in an all-cash transaction, which is valued at approximately $1.3 billion [2]. - The transaction agreement includes provisions that impose a significant penalty on Heidrick if it accepts a competing bid, potentially limiting other offers [3]. Group 2: Board Conduct - The investigation focuses on the conduct of Heidrick's board of directors to determine if they are fulfilling their fiduciary duties to all shareholders amidst the transaction [3].

Group 1 - Halper Sadeh LLC is investigating Heidrick & Struggles International, Inc. for potential violations related to its sale to a consortium led by Advent International and Corvex Private Equity for $59.00 per share in cash [1] - Vimeo, Inc. is also under investigation for its sale to Bending Spoons for $7.85 per share in cash [2] - The firm may seek increased consideration for shareholders and additional disclosures regarding the proposed transactions [3] Group 2 - Shareholder involvement is emphasized as a means to improve company policies and enhance shareholder value [4] - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [5]