Core Insights - Korn Ferry shares increased following the release of stronger quarterly profit and revenue, driven by broad-based growth across its businesses [1][2] Financial Performance - The company reported second-quarter adjusted earnings per share of $1.33, surpassing the analyst consensus estimate of $1.31 [2] - Quarterly sales reached $729.80 million, exceeding the expected $705.97 million [2] - Fee revenue for the second quarter was $721.7 million, reflecting a 7% increase year-over-year [3] - Executive Search revenue rose by 10%, while Professional Search & Interim revenue increased by 17% [3] - Adjusted EBITDA grew to $124.8 million, a 7% increase from the previous year, with a margin of 17.3% remaining stable [5] - The company ended the quarter with cash and equivalents totaling $761.579 million [5] - Estimated remaining fees under existing contracts were $1.842 billion, marking a 20% year-over-year increase [5] Strategic Positioning - Korn Ferry emphasizes the need for adaptable strategies in a rapidly changing economy, positioning itself as a partner to help organizations align strategy, operations, and talent [4] - The CEO highlighted the company's outstanding performance, noting the fourth consecutive quarter of accelerated growth, particularly from Marquee and Diamond accounts [4] Dividend Announcement - The company declared a cash dividend of 48 cents per share, payable on January 15, 2026, to shareholders of record on December 19, 2025 [6] Future Outlook - For the third quarter, Korn Ferry expects adjusted EPS between $1.19 and $1.25, aligning closely with the Street's estimate of $1.24 [7] - The projected GAAP EPS for the third quarter is between $1.15 and $1.21, which is below the Street's estimate of $1.26 [7] - Fee revenue for the third quarter is anticipated to be between $680 million and $694 million [7] - At the time of publication, Korn Ferry shares were up 3.52% at $67.26 [7]

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] - Estimated remaining fees under existing contracts increased to $1.84 billion, up 20% year-over-year [10] 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 up 24% [11] - RPO delivered $253 million of new business in the quarter, with 16% from new logos and 84% from renewals [11] - Business referrals grew to 27.6% of consolidated fee revenue, up approximately 250 basis points year-over-year and quarter-sequential [10] 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 strategy under "We Are Korn Ferry," emphasizing client centricity and integrated solutions [4][7] - 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 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for a strong 2026, despite the uncertain business environment [7][15] - The company anticipates fee revenue in the third quarter of fiscal 2026 to range from $680-$694 million, with adjusted EBITDA margins between 17.2%-17.4% [14] - Management noted that the current economic conditions have not significantly changed, and they remain focused on identified growth opportunities [25][59] Other Important Information - The company returned almost $70 million to shareholders through combined repurchases and dividends during the quarter [12] - Capital expenditures of $43 million were focused on Talent Suite, productivity tools, and other solution enhancements [13] Q&A Session Summary Question: Strength in Executive Search Business - Management noted significant growth in executive search worldwide, driven by changing leadership needs and demographic shifts [17][18] Question: Placement Solutions Improvement - Management confirmed that the strategy is working, with sequential growth in Professional Search and Interim Solutions, and highlighted the quality of their IP and AI integration [24][25] Question: Consulting Bill Rates and Margins - Management indicated that bill rates have increased due to larger, more impactful engagements, and there is substantial opportunity for further growth in consulting [26][30] Question: Seasonal Trends in Executive Search - Management expects typical seasonal softness in Q3 due to holiday impacts, which is factored into their guidance [33] Question: Digital Business Performance - Management acknowledged a purposeful reduction in sellers in the digital solution to pivot towards enterprise-oriented sales, impacting top-line performance [58][59] Question: New RPO Contracts - The majority of new RPO contracts were renewals from existing marquee clients, with a significant portion coming from the healthcare and industrial sectors [60][61]

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, driven by executive search and RPO [12] - EMEA fee revenue grew 20% year-over-year, with increases 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 strategy under "We Are Korn Ferry," emphasizing client centricity and integrated solutions [4][7] - The launch of the new Talent Suite technology platform is expected to enhance the company's ability to serve clients and leverage foundational assets [9] - The company aims to drive long-term, profitable, and sustainable growth by delivering differentiated solutions [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for a strong 2026, despite economic uncertainties [7][14] - The company anticipates fee revenue for the third quarter of fiscal 2026 to range from $680 million to $694 million, with adjusted EBITDA margins between 17.2% and 17.4% [14] - Management noted that the current business environment presents opportunities for growth, particularly in organizational strategy and larger engagements [35] Other Important Information - Estimated remaining fees under existing contracts increased to $1.84 billion, with approximately 57% expected to be recognized within the next year [11] - The company returned almost $70 million to shareholders through repurchases and dividends during the quarter [12] Q&A Session Summary Question: Strength in executive search business - Management noted significant growth in executive search worldwide, driven by changing leadership needs and demographic shifts [17][18] Question: Placement-type solutions improvement - 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 [24][25] Question: Consulting bill rates and margins - Management indicated that bill rates have increased due to larger engagements, and there is substantial opportunity for further growth in consulting [26][30] Question: Seasonal expectations for executive search - Management expects typical seasonal softness in Q3 due to holiday impacts, which is factored into guidance [33] Question: Digital business performance - Management acknowledged a purposeful reduction in sellers in the digital solution to pivot towards enterprise-oriented sales, impacting top-line performance [58] Question: New RPO contracts - The majority of new RPO contracts were renewals from marquee clients, with a significant portion coming from the healthcare and industrial sectors [61]

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 ...

Shares of Korn Ferry ( KFY ) have been a poor performer over the past year, losing about 10% of their value. With fears about the labor market continuing to grow, recruiting-related stocks have faced renewed pressure in recent months. Given its diversified business model, I haveOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a ...

Shares of Korn Ferry ( KFY ) have been a poor performer over the past year, losing about 10% of their value. With fears about the labor market continuing to grow, recruiting-related stocks have faced renewed pressure in recent months. Given its diversified business model, I haveOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a ...

Financial Performance - Korn Ferry reported Q2 FY'26 fee revenue of $721.7 million, a 7% increase year-over-year, with 6% growth at constant currency[4]. - Net income attributable to Korn Ferry was $72.4 million, up 19% year-over-year, with a margin of 10.0%, an increase of 100bps[4][8]. - Adjusted EBITDA for Q2 FY'26 was $124.8 million, reflecting a 7% increase year-over-year, with an adjusted EBITDA margin of 17.3%[4][10]. - Korn Ferry reported total revenue of $729.8 million for the three months ended October 31, 2025, representing a 7.0% increase compared to $681.96 million for the same period in 2024[43]. - Fee revenue for the six months ended October 31, 2025, was $1.43 billion, up 6.0% from $1.35 billion in the prior year[45]. - Net income attributable to Korn Ferry for the three months ended October 31, 2025, was $72.4 million, a 19.2% increase from $60.8 million in the same quarter of 2024[43]. - Adjusted EBITDA for the six months ended October 31, 2025, reached $245.2 million, up 7.4% from $228.2 million in the prior year[49]. - The total fee revenue for the three months ended October 31, 2025, was $721.7 million, slightly down from $729.8 million in the same period of 2024[53]. - The adjusted EBITDA margin for the three months ended October 31, 2025, was 17.3%, compared to 17.4% in the same period of 2024[53]. Segment Performance - Executive Search fee revenue was $226.0 million in Q2 FY'26, a 9.7% increase from $206.0 million in Q2 FY'25[19]. - Consulting fee revenue increased to $172.8 million in Q2 FY'26, up 4% year-over-year, driven by a 10% rise in average bill rates[11][12]. - Digital segment fee revenue was $91.0 million in Q2 FY'26, a decrease of 2% from $92.9 million in Q2 FY'25[15][16]. - In the Professional Search & Interim segment, fee revenue reached $141.1 million in Q2 FY'26, a 17% increase from Q2 FY'25, primarily due to higher revenue from Interim services[24]. - RPO fee revenue for Q2 FY'26 was $90.8 million, a 4% increase from Q2 FY'25, attributed to new logo clients in North America[28]. - The Consulting segment saw a fee revenue increase of 3.6% to $172.8 million for the three months ended October 31, 2025[45]. - The Executive Search segment's fee revenue increased by 9.7% to $225.9 million for the same period[45]. Engagements and Contracts - Estimated remaining fees under existing contracts reached $1.842 billion, a 20% increase year-over-year[4]. - New engagements in Executive Search increased to 1,633 in Q2 FY'26, compared to 1,567 in Q2 FY'25[19]. - New engagements in the Professional Search segment totaled 1,004 in Q2 FY'26, compared to 947 in Q2 FY'25, indicating strong growth in client demand[23]. - Estimated remaining fees under existing contracts in the RPO segment were $886.9 million, significantly higher than $659.2 million in the previous year[27]. Earnings and Shares - Adjusted diluted earnings per share for Q2 FY'26 were $1.33, a 10% increase year-over-year[4]. - The company expects Q3 FY'26 fee revenue to be in the range of $680 million to $694 million, with diluted earnings per share projected between $1.15 to $1.21[34]. - The company reported a basic earnings per share of $1.38 for the three months ended October 31, 2025, compared to $1.16 in the same period of 2024[43]. - The adjusted net income attributable to Korn Ferry for the three months ended October 31, 2025, was $70.5 million, compared to $64.7 million in the same period of 2024, reflecting a 9.0% increase[49]. Assets and Liabilities - Korn Ferry's cash and cash equivalents decreased to $761.6 million as of October 31, 2025, down from $1.01 billion in April 2025[47]. - Total assets decreased to $3.72 billion as of October 31, 2025, compared to $3.86 billion in April 2025[47]. - The company reported that total liabilities decreased to $1.77 billion as of October 31, 2025, from $1.99 billion in April 2025[47]. Cost Management - The company incurred integration/acquisition costs of $1.3 million for the three months ended October 31, 2025, down from $3.9 million in the same period of 2024[49].

Core Insights - Korn Ferry reported second quarter fee revenue of $721.7 million, a 7% increase year-over-year, with diluted earnings per share at $1.36 and adjusted diluted earnings per share at $1.33 [1][3][6] Financial Performance - Fee revenue for Q2 FY'26 was $721.7 million, up from $674.4 million in Q2 FY'25, reflecting a 7% increase (6% at constant currency) [3][6] - Total revenue for the quarter was $729.8 million, compared to $682.0 million in the previous year, marking a 7% increase [3][6] - Net income attributable to Korn Ferry was $72.4 million, with a margin of 10.0%, up from $60.8 million and a margin of 9.0% in the prior year [3][6] - Adjusted EBITDA for Q2 FY'26 was $124.8 million, compared to $117.0 million in Q2 FY'25, with an adjusted EBITDA margin of 17.3% [3][7] Segment Performance - Consulting segment fee revenue was $172.8 million, a 4% increase from $166.8 million in Q2 FY'25, driven by a 10% increase in average bill rates [10][11] - Digital segment fee revenue decreased to $91.0 million from $92.9 million, a 2% decline [12][13] - Executive Search segment fee revenue increased to $226.0 million, up 10% from $206.0 million, attributed to growth in engagements billed and average fees [14][18] - Professional Search & Interim segment fee revenue rose to $141.1 million, a 17% increase from $121.1 million, primarily due to higher revenue from Interim services [19][21] - Recruitment Process Outsourcing (RPO) fee revenue increased to $90.8 million, up 4% from $87.6 million, driven by new business in North America [22][24] Outlook - For Q3 FY'26, Korn Ferry expects adjusted diluted earnings per share to be in the range of $1.19 to $1.25, with fee revenue projected between $680 million and $694 million [25][30]