A specter is haunting Europe—the specter of aging.Many Western countries are facing what the World Bank calls a “profound demographic crisis”: The twin perils of an aging population and record-low fertility rates are predicted to send their populations plunging in the coming decades. The worst consequences of this demographic shift, per the World Bank, are economic. Soon, the shrinking working population in the U.S., Canada, or Germany won’t be able to meet their own constant demands for high-quality goods ...

I had a buy rating for Korn Ferry ( KFY ) previously, as I thought the setup had gotten better given the growth in high-value projects, continued strength in professional search interim, and the growingI’m a fundamental, valuation-driven investor with a strong focus on identifying businesses that have the potential to scale over time and unlock massive terminal value. My investment approach centers around understanding the core economics of a business—its competitive moat, unit economics, reinvestment runwa ...

I had a buy rating for Korn Ferry ( KFY ) previously, as I thought the setup had gotten better given the growth in high-value projects, continued strength in professional search interim, and the growingI’m a fundamental, valuation-driven investor with a strong focus on identifying businesses that have the potential to scale over time and unlock massive terminal value. My investment approach centers around understanding the core economics of a business—its competitive moat, unit economics, reinvestment runwa ...

Financial Performance - Q2 FY'26 fee revenue was $721.7 million, a year-over-year increase of 7%[109] - Net income attributable to Korn Ferry was $72.4 million, a 19% year-over-year increase, with a margin of 10.0%, up 100bps year-over-year[109] - Diluted earnings per share increased to $1.36 in Q2 FY'26, up 19% compared to the year-ago quarter[109] - Total revenue for the three months ended October 31, 2025, was $729.8 million, reflecting a 7.0% increase from $682.0 million in the same quarter of 2024[112] - Net income attributable to Korn Ferry increased by $11.6 million, or 19%, to $72.4 million in the three months ended October 31, 2025, compared to $60.8 million in the year-ago quarter[145] - Net income attributable to Korn Ferry increased by $15.6 million, or 13%, to $139.0 million in the six months ended October 31, 2025 compared to $123.4 million in the year-ago period[192] Revenue Breakdown - Executive Search fee revenue grew 10% year-over-year, while Professional Search & Interim grew 17% year-over-year[109] - Consulting fee revenue for the three months ended October 31, 2025, was $172.8 million, accounting for 23.9% of total fee revenue, compared to $166.8 million and 24.7% in the prior year[113] - Digital fee revenue for the six months ended October 31, 2025, was $180.2 million, representing 12.6% of total fee revenue, slightly down from $181.1 million and 13.4% in the same period of 2024[110] - Executive Search North America reported fee revenue of $142.1 million, an increase of $12.2 million, or 9%, attributed to a 5% increase in the weighted-average fee billed per engagement[118] - Professional Search & Interim fee revenue increased by $20.0 million, or 17%, to $141.1 million, largely due to interim fee revenue associated with the acquisition of Trilogy International[122] - Fee revenue for the three months ended October 31, 2025, was $721.7 million, an increase of $47.3 million, or 7%, compared to $674.4 million in the year-ago quarter[115] Expenses and Costs - Compensation and benefits expense increased by $24.6 million, or 6%, to $462.0 million, primarily due to higher performance-related bonuses[124] - General and administrative expenses for the three months ended October 31, 2025, decreased to 7.0% of total revenue from 9.6% in the same period of 2024[110] - Cost of services expense increased by $14.4 million, or 22%, to $79.1 million, with Professional Search & Interim accounting for $14.0 million of the increase[142] - Depreciation and amortization expenses increased by $11.9 million, or 60%, to $31.6 million, primarily due to accelerated depreciation related to the sunset of the Digital platform[143] - General and administrative expenses decreased by $10.4 million, or 8%, to $114.1 million in the six months ended October 31, 2025 from $124.5 million in the year-ago period, primarily due to a $13.9 million gain from the modification of an office lease[179] Adjusted EBITDA - Adjusted EBITDA for Q2 FY'26 was $124.8 million, a 7% year-over-year increase, with a margin of 17.3%, essentially flat year-over-year[109] - Adjusted EBITDA for the six months ended October 31, 2025, was $245.2 million, with an EBITDA margin of 17.1%, up from $228.2 million and 16.9% in the same period of 2024[114] - Adjusted EBITDA increased by $7.8 million, or 7%, to $124.8 million in the three months ended October 31, 2025, compared to $117.0 million in the year-ago quarter[146] - Executive Search North America Adjusted EBITDA increased by $11.2 million, or 16%, to $83.2 million in the six months ended October 31, 2025 compared to $72.0 million in the year-ago period[196] - Professional Search & Interim Adjusted EBITDA was $58.2 million in the six months ended October 31, 2025, an increase of $5.3 million, or 10%, compared to $52.9 million in the year-ago period[200] Cash and Working Capital - The company had $1,038.3 million in cash and cash equivalents as of October 31, 2025, down from $1,277.0 million as of April 30, 2025[213] - Working capital increased to $857.0 million as of October 31, 2025, up from $794.5 million as of April 30, 2025, primarily due to a decrease in compensation and benefits payable[216] - Cash used in investing activities was $41.9 million for the six months ended October 31, 2025, compared to $36.3 million in the prior year[217] - Cash used in financing activities decreased to $87.8 million for the six months ended October 31, 2025, from $111.1 million in the same period last year[218] Other Financial Metrics - Interest expense for the three months ended October 31, 2025, was $5.8 million, representing 0.8% of total revenue, compared to $5.6 million and 0.9% in the same period of 2024[112] - The provision for income tax was $51.9 million with an effective tax rate of 26.9%, compared to $47.3 million and 27.2% in the previous year[204] - Other income, net was $7.1 million in the three months ended October 31, 2025, compared to $5.4 million in the year-ago quarter[155] - Other income, net was $19.8 million for the six months ended October 31, 2025, slightly down from $19.9 million in the same period last year[202] - Net interest expense decreased to $9.3 million for the six months ended October 31, 2025, compared to $9.6 million in the prior year[203]

Korn Ferry (NYSE:KFY) shares advanced Tuesday after the talent and consulting firm delivered stronger quarterly profit and revenue amid broad-based growth across its businesses.Korn Ferry shares are powering higher. Why is KFY stock up today?Investors also assessed the company's upbeat momentum and fresh guidance as demand for organizational transformation services continued to strengthen.The firm reported second-quarter adjusted earnings per share of $1.33, beating the analyst consensus estimate of $1.31.Q ...

Korn Ferry (NYSE:KFY) Q2 2026 Earnings Call December 09, 2025 12:00 PM ET Company ParticipantsSami Nasir - Equity Research AssociateGary Burnison - CEOBob Rozek - CFOConference Call ParticipantsTobey Sommer - Managing Director and Senior Equity Research AnalystAlex Sinatra - Equity Research AnalystTrevor Romeo - Equity Research AnalystJosh Chan - Executive Director and Equity Research AnalystOperatorLadies and gentlemen, thank you for standing by and welcome to the Korn Ferry second quarter fiscal year 2026 ...

Korn Ferry (NYSE:KFY) Q2 2026 Earnings Call December 09, 2025 12:00 PM ET Company ParticipantsSami Nasir - Equity Research AssociateGary Burnison - CEOBob Rozek - CFOConference Call ParticipantsTobey Sommer - Managing Director and Senior Equity Research AnalystAlex Sinatra - Equity Research AnalystTrevor Romeo - Equity Research AnalystJosh Chan - Executive Director and Equity Research AnalystOperatorLadies and gentlemen, thank you for standing by and welcome to the Korn Ferry second quarter fiscal year 2026 ...

Financial Data and Key Metrics Changes - Consolidated fee revenue grew 7% year-over-year to $722 million [11] - Adjusted EBITDA increased by $8 million, or 7% year-over-year, to $125 million, with an adjusted EBITDA margin of 17.3% [11] - Adjusted diluted earnings per share rose by $0.12, or 10% year-over-year, to $1.33 [11] Business Line Data and Key Metrics Changes - Executive search fee revenue grew 10%, marking the sixth consecutive quarter of year-over-year growth [11] - Professional search and interim fee revenue increased by 17% year-over-year, with professional search up 7% and interim, including the Trilogy acquisition, up 24% [11] - RPO delivered $253 million of new business in the quarter, with 16% from new logos and 84% from renewals [11] Market Data and Key Metrics Changes - Fee revenue in the Americas was up 3% year-over-year, led by executive search and RPO [12] - EMEA fee revenue grew 20% year-over-year, with growth in executive search, professional search, interim, consulting, and digital [12] - APAC fee revenue remained flat, with moderate growth in executive search and professional search, offset by slight declines in RPO, consulting, and digital [12] Company Strategy and Development Direction - The company is focusing on a unified "We Are Korn Ferry" strategy, integrating multiple solutions to create enduring client partnerships [4][6] - The launch of the new Talent Suite technology platform is expected to enhance the company's ability to serve clients as a holistic talent partner [9] - The company aims to drive long-term, profitable, and sustainable growth by leveraging foundational assets to deliver differentiated solutions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for a strong 2026, emphasizing the need for talent in the current uncertain business environment [8][14] - The outlook for the third quarter of fiscal 2026 anticipates fee revenue between $680 million and $694 million, with adjusted EBITDA margins ranging from 17.2% to 17.4% [13] - Management noted that the current economic conditions have not significantly changed, and they remain focused on identified growth opportunities [24] Other Important Information - Estimated remaining fees under existing contracts increased to $1.84 billion, up 20% year-over-year [11] - The company returned almost $70 million to shareholders through repurchases and dividends during the quarter [12] - The Talent Suite launch is expected to provide significant opportunities in areas such as pay transparency and analytics [47] Q&A Session Summary Question: Strength in executive search business - Management noted significant growth in executive search worldwide, driven by changing leadership needs and the retirement of baby boomers [16] Question: Historical referral rates and future expectations - Management indicated a historical referral rate of 25%-26%, with a goal to increase it to 35% as the strategy evolves [18] Question: Improvement in placement-type solutions - Management confirmed that the strategy is working, with sequential growth in Professional Search and Interim Solutions, and noted the quality of their IP and AI usage in RPO [24] Question: Consulting bill rates and margin dynamics - Management highlighted that bill rates have increased due to larger, more impactful engagements, and there remains substantial opportunity for further growth [27][33] Question: Impact of AI on search efficiency - Management stated that while technology has improved efficiency, the larger impact comes from changes in work processes post-COVID [38] Question: Financial impact of Talent Suite - Management expects the Talent Suite to significantly enhance client engagement and analytics capabilities, leading to increased monetization of IP [46][47] Question: Changes in behavior since competitor went private - Management reported no noticeable changes in market behavior following the competitor's transition to private [51]

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FY'26 Q2 Earnings Call Presentation DECEMBER 9, 2025 | © 2025 Korn Ferry Safe Harbor Statement FORWARD-LOOKING STATEMENTS Statements in this presentation that relate to goals, strategies, future plans and expectations are based on Korn Ferry's current expectations. You are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties. For a detailed description of many of those ris ...