The upcoming report from Korn/Ferry (KFY) is expected to reveal quarterly earnings of $1.24 per share, indicating an increase of 5.1% compared to the year-ago period. Analysts forecast revenues of $685.13 million, representing an increase of 1.5% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings release, it is of ...

Core Insights - Recent market volatility has drawn parallels to the meme stock phenomenon of 2021, with significant price fluctuations observed in companies like Kohl's and Opendoor [2] - Maintaining discipline and focusing on fundamental analysis is crucial for investors during chaotic market conditions [3] Company Overview - Korn Ferry (KFY) is positioned as an industry leader with a strong alignment of executive and shareholder interests, high yield supported by robust cash flows, and an undervalued stock [4][5] - The company has a proprietary dataset that has expanded significantly, increasing from 4 billion data points in fiscal 2Q20 to over 10 billion by fiscal 4Q25 [8] Financial Performance - Korn Ferry's total fee revenue grew 4% year-over-year in fiscal 4Q25, with a long-term growth trend of 10% and 9% compounded annually over the last 10 and 20 years, respectively [12] - The company has achieved revenue and net operating profit after-tax (NOPAT) growth of 8% and 13% compounded annually since fiscal 1999 [14] - Korn Ferry's Core Earnings increased from $82 million in fiscal 2015 to $228 million in fiscal 2025, reflecting an 11% compounded annual growth rate [15] Market Position and Growth Opportunities - Korn Ferry operates in five business segments and is recognized as the 1 executive recruiting firm in the U.S. as of 2025 [10] - The HR and recruitment services market is projected to grow 15% compounded annually from 2024 to 2034, providing a favorable environment for Korn Ferry [13] Profitability and Shareholder Returns - Korn Ferry boasts industry-leading profitability, with a return on invested capital (ROIC) increasing from 12.3% in fiscal 2015 to 13.6% in fiscal 2025 [19] - The company has returned over $240 million in dividends since fiscal 2020 and has repurchased $457 million in shares during the same period, indicating strong capital return strategies [23][24] Financial Stability - Korn Ferry generated $1.1 billion in free cash flow from fiscal 2020 to fiscal 2025, equating to 35% of the company's enterprise value, ensuring the ability to fund dividends and share repurchases [26] - The company maintains a strong balance sheet and an attractive credit rating, positioning it well to navigate economic uncertainties [28][30] Challenges and Market Dynamics - A tight labor market may pose challenges for recruitment service providers, with hiring trends showing a decline since mid-2020 [31] - Despite these challenges, Korn Ferry's focus on high-level executive roles provides some insulation against broader hiring slowdowns [32]

Core Insights - The staffing industry is evolving rapidly due to digital innovation, demographic changes, and the demand for flexible work arrangements, making effective staffing solutions critical for companies [3][4] - Staffing firms are increasingly viewed as growth enablers, helping organizations navigate economic uncertainties and scale for growth [4][5] Industry Overview - The staffing ecosystem has transformed, with organizations seeking strategic partners who understand talent needs and market trends [3] - Technology, including AI-enabled recruitment tools and talent analytics, is becoming standard in staffing strategies, allowing for faster and smarter hiring decisions [3] Investment Opportunities - The staffing sector presents compelling opportunities for investors, with firms like ADP, Korn Ferry, and Barrett Business Services positioned as key players in workforce transformation [5][6] - As hiring accelerates, staffing companies are at the forefront of providing scalable solutions that contribute to economic growth and long-term value creation [5] Company Highlights - **ADP**: A leader in human capital management solutions, ADP reported revenues of $5.1 billion for Q3 fiscal 2025, a 5.7% year-over-year increase, and is focused on expanding its cloud-based HCM and HR outsourcing solutions [8][9] - **Korn Ferry**: Specializes in executive search and workforce transformation, leveraging data-driven insights and AI tools to enhance hiring processes and leadership development [10][11][12] - **Barrett Business Services (BBSI)**: Provides HR outsourcing and management consulting, focusing on personalized client interactions and local market expertise, which supports its sustained growth [13]

Industry Overview - The Zacks Staffing industry encompasses a wide range of human resources and workforce solutions, including recruitment, payroll administration, and organizational consulting services tailored for various sectors [2] - The industry is currently facing challenges due to a contraction in the manufacturing sector, which negatively impacts the demand for temporary workers [3] Current Trends - The staffing industry is expected to recover to pre-pandemic revenues, income, and cash flows despite the ongoing contraction in manufacturing [3] - There is an increased adoption of remote work and hybrid models, prompting staffing agencies to prioritize flexible staffing solutions to meet evolving workplace preferences [4] - Technology is increasingly being utilized in the staffing sector to enhance operations, with AI-driven tools and platforms improving the efficiency of attracting and onboarding talent [5] Market Performance - The Zacks Staffing Firms industry has underperformed compared to the broader sector and the S&P 500, declining 32% over the past year, while the S&P 500 grew by 15.9% [8] - The industry currently trades at an EV-to-EBITDA ratio of 6.53X, significantly lower than the S&P 500's 18.03X and the sector's 11.37X [11] Company Highlights - **Korn Ferry (KFY)**: This firm is leveraging its broad array of solutions and large-scale client engagements, with a focus on technology and AI investments. KFY's digital subscription and license business is enhancing revenue stability [14][15] KFY has a Zacks Rank 3 and a consensus estimate for its 2025 bottom line at $5.16, reflecting an 11% increase over the past 60 days [17] - **RCM Technologies (RCMT)**: RCMT is transitioning into an innovative company with a strong growth narrative in its healthcare segment, particularly in K-12 behavioral health. The company is also expanding in life sciences and engineering, supported by multi-year contracts [20][22] RCMT holds a Zacks Rank 3 with a consensus estimate for its 2025 bottom line at $2.2 [22] - **Heidrick & Struggles International (HSII)**: HSII focuses on value creation through effective leadership placement, supported by a diversified revenue model and zero debt. The company has a Zacks Rank 3 and a consensus estimate for 2025 EPS at $2.86 [25][27]

Core Viewpoint - Korn/Ferry International (KFY) has reached a significant support level and is considered a potential investment opportunity due to a recent "golden cross" technical pattern, indicating a bullish breakout [1]. Technical Analysis - KFY's 50-day simple moving average has recently crossed above its 200-day moving average, forming a "golden cross," which is a bullish signal in technical analysis [1]. - A successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer moving average, and the stock maintains upward momentum [2]. Performance Metrics - Over the past four weeks, KFY has gained 5.2%, indicating positive price movement [3]. - The company currently holds a 3 (Hold) rating on the Zacks Rank, suggesting it may be poised for further breakout [3]. - There has been one upward earnings estimate revision for KFY in the past 60 days, with no downward revisions, and the Zacks Consensus Estimate has also increased [3]. Investment Outlook - The combination of positive earnings estimate revisions and the technical breakout suggests that KFY could see more gains in the near future, making it a stock to watch for investors [4].

Part I [Business](index=6&type=section&id=Item%201.%20Business) Korn Ferry is a global consulting firm specializing in talent and organizational performance across five main solution areas Fiscal 2025 Financial Highlights | Metric | Value (USD Million) | | :--- | :--- | | Fee Revenue | $2,730.1 | | Net Income Attributable to Korn Ferry | $246.1 | | Net Income Margin | 9.0% | | Adjusted EBITDA | $463.9 | | Adjusted EBITDA Margin | 17.0% | | Diluted Earnings Per Share | $4.60 | - The Marquee and Diamond Accounts Program, covering 350 key clients, generated approximately **39%** of consolidated fee revenue in fiscal 2025[29](index=29&type=chunk) - Cross-solution referrals accounted for approximately **25%** of consolidated fee revenue in fiscal 2025, demonstrating successful collaboration across its business segments[30](index=30&type=chunk) - The company operates through five solution areas: Consulting, Digital, Executive Search, Professional Search & Interim, and RPO, corresponding to eight reportable segments[37](index=37&type=chunk) [Consulting](index=9&type=section&id=Consulting) The Consulting segment offers talent strategies and organizational solutions, serving over **4,300** clients in fiscal 2025 Consulting FY2025 Performance | Metric | Value | | :--- | :--- | | Fee Revenue | $662.7 million | | Adjusted EBITDA | $115.5 million | | Adjusted EBITDA Margin | 17.4% | | Year-End Staff | 1,599 | | Average Bill Rate | $439 per hour | - In fiscal 2025, the Consulting segment supported over **4,300** clients, and **28%** of its fee revenue was referred from other Korn Ferry solutions[43](index=43&type=chunk) [Digital](index=9&type=section&id=Digital) The Digital segment provides data-driven talent management tools via the Korn Ferry Talent Suite®, serving over **7,800** clients Digital FY2025 Performance | Metric | Value | | :--- | :--- | | Fee Revenue | $363.5 million | | Subscription/License Revenue | $137.7 million (+5.1% YoY) | | Adjusted EBITDA | $112.7 million | | Adjusted EBITDA Margin | 31.0% | - The Digital segment engaged with more than **7,800** clients in fiscal 2025, with **33%** of its fee revenue referred from other company solutions[45](index=45&type=chunk) [Executive Search](index=9&type=section&id=Executive%20Search) The Executive Search segment recruits board-level and senior executive talent, opening over **6,300** new engagements Executive Search FY2025 Performance | Metric | Value | | :--- | :--- | | Fee Revenue | $846.2 million | | Adjusted EBITDA | $206.2 million | | Adjusted EBITDA Margin | 24.4% | | New Engagements | > 6,300 | - In fiscal 2025, the Executive Search segment partnered with over **3,700** clients, including many of the world's most recognized public and private enterprises[51](index=51&type=chunk) [Professional Search & Interim](index=10&type=section&id=Professional%20Search%20%26%20Interim) This segment provides scalable recruiting and interim talent solutions for professional roles, partnering with over **3,200** clients Professional Search & Interim FY2025 Performance | Metric | Value | | :--- | :--- | | Fee Revenue | $503.5 million | | Adjusted EBITDA | $107.6 million | | Adjusted EBITDA Margin | 21.4% | | Average Bill Rate | $133 per hour | - The segment partnered with over **3,200** clients globally in fiscal 2025, with **23%** of its fee revenue referred from other Korn Ferry solutions[53](index=53&type=chunk) [Recruitment Process Outsourcing (RPO)](index=10&type=section&id=Recruitment%20Process%20Outsourcing%20(RPO)) The RPO segment offers high-volume, outsourced hiring solutions, securing **$533.4 million** in new business RPO FY2025 Performance | Metric | Value | | :--- | :--- | | Fee Revenue | $354.1 million | | Adjusted EBITDA | $52.6 million | | Adjusted EBITDA Margin | 14.9% | | New Business | $533.4 million | - The RPO segment supported over **240** enterprise clients in fiscal 2025, with **59%** of its fee revenue coming from referrals from other Korn Ferry solutions[59](index=59&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from competition, talent retention, indebtedness, cybersecurity, and global economic factors - The company faces significant competition from large consulting firms, specialized boutiques, and technology-based providers, which may lead to pricing pressures and reduced market share[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - The loss of key consultants is a major risk, as the top ten consultants combined generated approximately **5%** of total fee revenues in fiscal 2025, and client relationships are highly portable[72](index=72&type=chunk) - The company's use of AI technology introduces risks related to operational challenges, data privacy, regulatory compliance, and potential IP infringement[108](index=108&type=chunk)[109](index=109&type=chunk) - As of April 30, 2025, the company had approximately **$400.0 million** in total indebtedness, which could affect its financial condition and ability to operate[96](index=96&type=chunk) - Goodwill and purchased intangibles accounted for approximately **27%** of total assets as of April 30, 2025, and changes in business conditions could lead to impairment charges[130](index=130&type=chunk) - In fiscal 2025, **47%** of fee revenue was generated from operations outside of the U.S., exposing the company to risks associated with social, political, and economic instability in international markets[134](index=134&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - Not applicable[150](index=150&type=chunk) [Cybersecurity](index=25&type=section&id=Item%201C.%20Cybersecurity) Korn Ferry maintains an ISO 27001-based cybersecurity program, overseen by the Board, with no material incidents to date - The company's cybersecurity program is based on the ISO 27001 framework, which incorporates NIST and Center for Internet Security frameworks[152](index=152&type=chunk) - The Board of Directors is responsible for overseeing the cybersecurity risk program and is briefed at least annually by the Chief Information Officer[160](index=160&type=chunk) - The company has not experienced a cybersecurity incident that has materially affected its business strategy, results of operations, or financial condition as of the report date[153](index=153&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company's corporate office is in Los Angeles, California, leasing **103** offices globally totaling **0.9 million** square feet - As of April 30, 2025, the company leased approximately **0.9 million** square feet of office space across **103** offices in **51** countries[162](index=162&type=chunk)[33](index=33&type=chunk) [Legal Proceedings](index=27&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in litigation but expects no material adverse effect on its business or financial condition - The company is not currently engaged in any legal proceedings that are expected to have a material adverse effect on its business[163](index=163&type=chunk) [Executive Officers](index=27&type=section&id=Information%20about%20our%20Executive%20Officers) The report details background information for five key executive officers, including the President and CEO, and segment CEOs Executive Officers as of April 30, 2025 | Name | Age | Position | | :--- | :--- | :--- | | Gary D. Burnison | 64 | President and Chief Executive Officer | | Robert P. Rozek | 64 | Executive Vice President, Chief Financial Officer and Chief Corporate Officer | | Lesley Uren | 63 | Chief Executive Officer, Consulting | | Michael Distefano | 55 | Chief Executive Officer, Professional Search & Interim | | Jeanne MacDonald | 56 | Chief Executive Officer, RPO | Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Korn Ferry's common stock trades on NYSE (KFY), with a capital allocation strategy including dividends and share repurchases - The Board of Directors increased the quarterly dividend to **$0.48** per share on March 10, 2025[181](index=181&type=chunk) Share Repurchases | Period | Amount Repurchased (USD Million) | | :--- | :--- | | Fiscal 2025 | $88.9 | | Fiscal 2024 | $52.5 | | Fiscal 2023 | $93.9 | Issuer Purchases of Equity Securities (Q4 FY2025) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | Value of Shares Remaining for Purchase (USD Million) | | :--- | :--- | :--- | :--- | | Feb 2025 | 39,820 | 66.88 | 106.3 | | Mar 2025 | 65,577 | 66.97 | 102.0 | | Apr 2025 | 131,000 | 62.69 | 93.8 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2025 fee revenue decreased 1% to **$2.73 billion**, while net income increased 45% to **$246.1 million** due to cost management [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Fiscal 2025 fee revenue decreased 1% to **$2.73 billion**, while net income increased 45% to **$246.1 million** with a **17.0%** Adjusted EBITDA margin Consolidated Financial Performance (FY2025 vs. FY2024) | Metric | FY2025 (USD Million) | FY2024 (USD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Fee Revenue | $2,730.1 | $2,762.7 | (1%) | | Net Income Attributable to Korn Ferry | $246.1 | $169.2 | 45% | | Adjusted EBITDA | $463.9 | $408.2 | 14% | | Adjusted EBITDA Margin | 17.0% | 14.8% | +220 bps | Fee Revenue by Segment (FY2025 vs. FY2024) | Segment | FY2025 Fee Revenue (USD Million) | FY2024 Fee Revenue (USD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Consulting | $662.7 | $695.0 | (5%) | | Digital | $363.5 | $366.7 | (1%) | | Executive Search | $846.2 | $806.2 | 5% | | Professional Search & Interim | $503.5 | $540.6 | (7%) | | RPO | $354.1 | $354.1 | 0% | - Compensation and benefits expense decreased by **$86.2 million (5%)** in FY2025, primarily due to a **7%** reduction in average headcount and lower commission expense[228](index=228&type=chunk) - Restructuring charges were significantly lower in FY2025 at **$1.9 million**, compared to **$68.6 million** in FY2024 related to a plan to eliminate excess capacity[249](index=249&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 30, 2025, the company held **$1.28 billion** in cash and marketable securities, generating **$364.4 million** cash from operations Cash and Liquidity Position (as of April 30, 2025) | Item | Value (USD Million) | | :--- | :--- | | Cash, Cash Equivalents & Marketable Securities | $1,277.0 | | Working Capital | $794.5 | | Long-Term Debt (Notes) | $400.0 | | Availability under Revolver | $645.6 | Cash Flow Summary (FY2025) | Cash Flow Activity | Value (USD Million) | | :--- | :--- | | Net Cash from Operating Activities | $364.4 | | Net Cash used in Investing Activities | ($125.5) | | Net Cash used in Financing Activities | ($190.7) | - On November 1, 2024, the company acquired Trilogy for **$44.4 million**, net of cash acquired[265](index=265&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency fluctuations and interest rate changes, with mitigation strategies in place - The company is exposed to foreign currency risk as a material portion of its revenue and expenses are generated internationally. A **10%** change in the value of its ten largest currency exposures could result in a gain or loss of **$16.0 million**[290](index=290&type=chunk) - Interest rate risk is primarily related to the variable-rate Amended Credit Agreement, under which there were no amounts outstanding as of April 30, 2025[291](index=291&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of April 30, 2025, with no material internal control changes - Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2025[295](index=295&type=chunk) Part III [Directors, Compensation, Security Ownership, and Accountant Fees](index=47&type=section&id=Item%2010,%2011,%2012,%2013,%2014) Information for Items 10 through 14 is incorporated by reference from the company's definitive proxy statement for its 2025 Annual Meeting - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the registrant's definitive proxy statement for its 2025 Annual Meeting of Stockholders[299](index=299&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=48&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section provides an index of all financial statements, schedules, and exhibits filed with the Form 10-K[307](index=307&type=chunk) Financial Statements and Supplementary Data [Reports on Financial Statements and Internal Controls](index=54&type=section&id=Reports%20on%20Financial%20Statements%20and%20Internal%20Controls) Management concluded internal control over financial reporting was effective, with Ernst & Young LLP issuing an unqualified opinion and identifying Consulting Revenue Recognition as a Critical Audit Matter - Management concluded that the Company's internal control over financial reporting was effective as of April 30, 2025[323](index=323&type=chunk) - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[326](index=326&type=chunk)[335](index=335&type=chunk) - The audit identified 'Consulting Revenue Recognition' as a Critical Audit Matter, highlighting the complexity and judgment required in estimating total hours for project completion[339](index=339&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk) [Notes to Consolidated Financial Statements](index=64&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, debt, and acquisitions, including the **$44.4 million** Trilogy acquisition and restructuring charges Fee Revenue by Industry (FY2025) | Industry | Fee Revenue (USD Million) | Percentage of Total | | :--- | :--- | :--- | | Industrial | $814.6 | 29.9% | | Financial Services | $516.7 | 18.9% | | Life Sciences/Healthcare | $475.8 | 17.4% | | Technology | $396.0 | 14.5% | | Consumer Goods | $349.2 | 12.8% | | Education/Non–Profit/General | $177.7 | 6.5% | - The company has **$400 million** in **4.625%** Senior Unsecured Notes due 2027. As of April 30, 2025, the fair value of these notes was **$389.0 million**[466](index=466&type=chunk)[467](index=467&type=chunk) - Goodwill as of April 30, 2025 was **$948.8 million**, with the largest allocations to the Digital (**$326.1M**), Professional Search & Interim (**$293.3M**), and Consulting (**$173.2M**) segments[494](index=494&type=chunk) - The company recorded restructuring charges of **$1.9 million** in FY2025, following charges of **$68.6 million** in FY2024 and **$42.6 million** in FY2023 to align its workforce with business needs[490](index=490&type=chunk)[491](index=491&type=chunk)

Core Insights - The article introduces DCF Value Investor as a new contributing analyst on Seeking Alpha, emphasizing a focus on unique investment ideas across various stocks and commodities [2]. Group 1: Analyst's Approach - The analyst specializes in fundamental analysis and valuation, targeting undervalued companies based on their financial statements [2]. - Preferred sectors for analysis include materials, technology, and real estate, indicating a diverse investment strategy [2]. - The research process involves screening for undervalued companies, followed by a detailed fundamental analysis that includes valuation ratios and industry trends [2]. Group 2: Investment Philosophy - The investment thesis is grounded in value investing principles, aiming to uncover hidden opportunities in the market [2]. - The analyst seeks to provide a different perspective from traditional Wall Street views, focusing on overhyped stocks and conducting in-depth financial analysis [2].

Group 1 - The article provides a hold rating for Korn Ferry (NYSE: KFY), indicating that while there are early signs of recovery, they are not yet strong enough to warrant a more bullish outlook [1] - The investment approach emphasizes understanding core business economics, including competitive moat, unit economics, reinvestment runway, and management quality, which are crucial for long-term free cash flow generation and shareholder value creation [1] - The focus is on sectors with strong secular tailwinds, suggesting a strategic preference for industries that are expected to grow over time [1] Group 2 - The author identifies as a fundamental, valuation-driven investor with a decade of experience, managing personal funds sourced from friends and family [1] - The motivation for writing is to share investment insights and gather feedback from fellow investors, aiming to help readers focus on long-term equity value drivers [1] - The analysis is intended to be both analytical and accessible, adding value to readers seeking high-quality, long-term investment opportunities [1]

Company Overview - Invictus Origin is a high-alpha investment management firm founded by Oliver Rodzianko in May 2025, aiming to become a globally recognized actively managed fund [1] - The firm is developing innovative portfolio strategies, particularly through its Nasdaq High-Alpha Black Swan Portfolio, designed to sustainably outperform the Nasdaq-100 [1] - The portfolio maintains approximately 20% in strategic cash reserves, providing downside protection and flexibility during market disruptions [1] Leadership and Expertise - Oliver Rodzianko has extensive experience as a macro-focused investment analyst specializing in public equities, emphasizing fundamental valuation and long-term market cycles [1] - His sector expertise includes technology, semiconductors, artificial intelligence, and energy, integrating U.S. market specialization with international market awareness [1] - Rodzianko has built a strong reputation as an Investment Analyst for platforms like Seeking Alpha, TipRanks, and GuruFocus, providing actionable insights to sophisticated investors [1] Investment Strategy - The investment process at Invictus Origin focuses on capturing asymmetric upside by navigating market dislocations and intrinsic value cycles [1] - The firm is characterized by resilience, performance, and disciplined capital stewardship, supported by a complementary family office structure for lower-volatility capital preservation [1]

Financial Data and Key Metrics Changes - Consolidated fee revenue for the fourth quarter was $712 million, growing 4% year over year at constant currency [15] - Adjusted EBITDA grew 8% to $121 million, with an adjusted EBITDA margin increase of 70 basis points to 17% [15] - Adjusted diluted earnings per share increased 5% to $1.32 [15] - Estimated remaining fees under existing contracts totaled approximately $1.7 billion, up 12% year over year [16] Business Line Data and Key Metrics Changes - Executive Search grew 15% year over year at constant currency, marking the fourth consecutive quarter of growth [14] - Digital subscription and license new business grew to 40% of total digital new business, up from 37% in the prior year quarter [14] - RPO (Recruitment Process Outsourcing) secured $119 million in new business awards, with 77% attributed to new logos [14] - Average hourly bill rates in consulting and interim portions remained strong at $454 and $131, respectively [14] Market Data and Key Metrics Changes - Fee revenue in The Americas was flat year over year at constant currency, with growth in Executive Search and RPO [17] - EMEA fee revenue grew 9% year over year at constant currency, driven by growth in Executive Search and Professional Search [18] - APAC fee revenue grew 8% year over year at constant currency, primarily due to growth in Executive Search and RPO [18] Company Strategy and Development Direction - The company is focused on extending its offerings and solutions, particularly in technology and AI, to drive organizational performance for clients [8][10] - The strategy emphasizes synergistic fee revenue sources, with 77% of clients purchasing two or more solutions [7] - The company aims to innovate and enhance its TalentSuite product, which is expected to create a significant impact in the market [9][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing economic challenges, including a cost of living crisis and its impact on client spending [33][34] - Despite the challenging environment, the company remains optimistic about future growth opportunities and its ability to drive performance for clients [19] - The leadership team is focused on adapting to changing market demands and the need for different leadership qualities in the current economic climate [50][51] Other Important Information - The company returned $173 million to shareholders through share repurchases and dividends in fiscal year 2025 [18] - The company invested $44 million in M&A and $62 million in capital expenditures focused on technology platforms and product enhancements [18] Q&A Session Summary Question: Insights on new business trends and revenue trends by month - Management noted that May was stronger than April, indicating a positive trend despite ongoing uncertainties [23] Question: Executive Search growth specifics - Management indicated that long-term growth has been consistent, with quarterly fluctuations expected [26] Question: Update on sales cycles and client spending behaviors - Management highlighted a cost of living crisis affecting client spending and overall economic growth [33][34] Question: Performance of consulting and digital segments - Digital business grew 4% year over year, while consulting remained flat, reflecting larger engagements taking longer to implement [41] Question: Impact of international news on business confidence - Management expressed uncertainty about the impact of geopolitical events on business confidence, emphasizing the ongoing cost of living crisis [58][59] Question: Headcount productivity and revenue generation - Management discussed the importance of monetizing intellectual property and the scalability of their offerings [73][74] Question: Changes in leadership qualities sought by boards - Management emphasized the need for leaders who can embrace ambiguity and adapt to rapid changes in the market [50][51]