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]

Financial Data and Key Metrics Changes - Consolidated fee revenue for Q4 was $712 million, growing 4% year over year at constant currency [16] - Adjusted EBITDA grew 8% to $121 million, with an adjusted EBITDA margin increase of 70 basis points to 17% [16] - Adjusted diluted earnings per share increased 5% to $1.32 [16] - Estimated remaining fees under existing contracts totaled approximately $1.7 billion, up 12% year over year [17] Business Line Data and Key Metrics Changes - Executive Search grew 15% year over year at constant currency, marking the fourth consecutive quarter of growth [15] - Digital subscription and license new business accounted for 40% of total digital new business, up from 37% in the prior year [15] - RPO (Recruitment Process Outsourcing) secured $119 million in new business awards, with 77% attributed to new logos [15] - Average hourly bill rates in consulting and interim portions remained strong at $454 and $131, respectively [15] 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 [19] - EMEA fee revenue grew 9% year over year at constant currency, driven by growth in Executive Search and Professional Search [20] - APAC fee revenue increased 8% year over year at constant currency, primarily due to growth in Executive Search and RPO [20] Company Strategy and Development Direction - The company is focused on innovation, particularly in technology and AI, to enhance organizational performance for clients [9] - A balanced approach to capital allocation has been maintained, with $173 million returned to shareholders through share repurchases and dividends [20] - The company aims to leverage its extensive data and intellectual property to create knowledge transfer and drive client success [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing economic challenges but expressed confidence in the company's strategic direction and growth opportunities [5][21] - The leadership emphasized the importance of adapting to changing client needs and the evolving labor market, particularly in light of demographic shifts [56][72] - The company expects Q1 fiscal 2026 fee revenue to range from $675 million to $695 million, with adjusted EBITDA margins between 16.8% and 17.2% [21] Other Important Information - The company has raised its dividend six times in five years, indicating a commitment to returning value to shareholders [8] - The introduction of a new operating metric, estimated remaining fees under existing contracts, demonstrates the effectiveness of the company's diversification strategy [16] 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 in the market [25] Question: Executive Search growth specifics - Management indicated that while there are ebbs and flows, the long-term growth rate for Executive Search remains strong, driven by demographic factors and changing leadership demands [29][30] Question: Update on sales cycles and client spending behaviors - Management highlighted the cost of living crisis impacting client spending and noted that companies are cutting costs, which has been consistent for several quarters [36] Question: Performance of consulting and digital segments - Digital business grew 4% year over year, while consulting remained flat, with larger engagements taking longer to implement [45] Question: Changes in leadership expectations - Management emphasized the need for leaders to embrace ambiguity and adapt to profound changes in the market, particularly with the rise of AI [54][56] Question: International growth and consultant productivity - Management reported strong growth in international markets and increased consultant productivity, attributing it to both company strategy and market factors [59] Question: Impact of international news on business confidence - Management acknowledged the uncertainty created by international events but emphasized the ongoing cost of living crisis as a significant concern [63] Question: Bonus payout and investable cash - Management indicated that the bonus payout would be sufficient to reward top performers, with investable cash around $675 million [66][67]

Group 1 - Korn Ferry (NYSE: KFY) shares increased by 8.8%, trading at $72.64 after reporting better-than-expected earnings and revenue for the fiscal fourth quarter [1] - The stock broke above resistance at $72, which had emerged in January, and reached its highest level since early December [1] - Korn Ferry is on track for its largest single-day percentage increase since November, with a year-to-date gain of 7.9% [1] Group 2 - The options market for Korn Ferry is experiencing 43 times the average intraday volume, indicating heightened trading activity [2] - The most popular options contracts are the June 75 call and the 75 put, with new positions being opened for both [2] - Short-term options traders are exhibiting a more bearish sentiment than usual, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 1.53, ranking in the 99th percentile of annual readings [2]

Group 1 - The article emphasizes the importance of making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1] - The author has over fifteen years of experience in the investment field, focusing on identifying potential investment opportunities [1] Group 2 - There is a disclosure stating that the author does not hold any stock, option, or similar derivative positions in the companies mentioned and has no plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's personal opinions and is not influenced by any compensation from companies mentioned [2]

Group 1 - Korn/Ferry reported revenue of $712.05 million for the quarter ended April 2025, a year-over-year increase of 3.1% [1] - The EPS for the same period was $1.32, compared to $1.26 a year ago, representing a surprise of +4.76% over the consensus estimate [1] - The reported revenue exceeded the Zacks Consensus Estimate of $688.94 million by +3.35% [1] Group 2 - Total Executive Search fee revenue was $227 million, surpassing the estimated $206.26 million, reflecting a year-over-year increase of +14.2% [4] - Overall fee revenue was $712.05 million, compared to the average estimate of $688.94 million, indicating a +3.1% change year over year [4] - Digital fee revenue was $91.63 million, slightly below the average estimate of $91.65 million, with a year-over-year change of +0.4% [4] - Consulting fee revenue was $169.36 million, exceeding the estimated $167.62 million, but showing a year-over-year decline of -7% [4] Group 3 - Korn/Ferry's shares have returned -3.3% over the past month, while the Zacks S&P 500 composite increased by +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - Korn/Ferry reported quarterly earnings of $1.32 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and showing an increase from $1.26 per share a year ago, representing an earnings surprise of 4.76% [1] - The company posted revenues of $712.05 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.35%, compared to year-ago revenues of $690.8 million [2] - Over the last four quarters, Korn/Ferry has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Korn/Ferry shares have declined about 1% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.18 on revenues of $671.85 million, and for the current fiscal year, it is $4.65 on revenues of $2.71 billion [7] Group 3: Industry Context - The Staffing Firms industry, to which Korn/Ferry belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Resources Connection, another company in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $0.03, reflecting a year-over-year change of -89.3% [9]

FY'25 Q4 Earnings Call Presentation JUNE 18, 2025 | © 2025 Korn Ferry Korn Ferry – A Global Organizational Consulting Firm The leading brand in Talent and Organizational Consulting ~ 9,200 colleagues strategically positioned in more than 50 countries Balanced capital allocation and excellent M&A track record Proven management team Proprietary and scaled IP and data: • Driving an expanding suite of digitized products • Enabling the delivery of scaled, integrated talent and organization solutions • "Brand Per ...

Financial Performance - Korn Ferry reported Q4 FY'25 fee revenue of $712.0 million, a 3% increase year-over-year, and full year fee revenue of $2,730.1 million, a 1% decrease compared to FY'24[3]. - Net income attributable to Korn Ferry for Q4 FY'25 was $64.2 million with a margin of 9.0%, while full year net income was $246.1 million, reflecting a margin increase of 290bps from FY'24[10]. - Adjusted EBITDA for Q4 FY'25 was $121.1 million, with a margin of 17.0%, up 70bps year-over-year; full year adjusted EBITDA was $463.9 million, also with a margin of 17.0%, an increase of 220bps[11]. - Total revenue for the year ended April 30, 2025, was $2.761086 billion, a decrease of 1.2% from $2.795505 billion in 2024[49]. - Consolidated net income for the three months ended April 30, 2025, was $64,244 million, representing a margin of 9.0%, compared to $65,189 million and a margin of 9.4% for the same period in 2024[61]. - For the year ended April 30, 2025, consolidated net income was $246,062 million, with a margin of 9.0%, compared to $169,154 million and 6.1% in 2024[61]. Segment Performance - Executive Search segment achieved Q4 FY'25 fee revenue of $227.0 million, a 14% increase year-over-year[3]. - Consulting fee revenue decreased to $169.4 million in Q4 FY'25, down 7% year-over-year, primarily due to a shift towards larger engagements[16]. - Digital segment fee revenue was $91.6 million in Q4 FY'25, essentially flat year-over-year, with an adjusted EBITDA margin increase to 31.1%[21]. - Fee revenue in the Professional Search & Interim segment for Q4 FY'25 was $130.7 million, a slight increase of 1% from $129.2 million in Q4 FY'24[27]. - RPO fee revenue for Q4 FY'25 was $93.3 million, representing a 4% increase from $89.5 million in Q4 FY'24[31]. - North America executive search revenue for the three months ended April 30, 2025, was $143,014 million, with a margin of 27.3%, compared to $125,468 million and 26.4% in 2024[61]. Capital Allocation and Investments - The company repurchased 232,000 shares for $15.0 million and paid dividends totaling $25 million during the quarter[3]. - Korn Ferry invested $44 million in an acquisition and $62 million in technology platforms and product enhancements during FY'25[3]. - The company maintained a balanced capital allocation approach, returning $89 million through share repurchases and $84 million through dividends in FY'25[3]. Future Outlook - The company expects Q1 FY'26 fee revenue to be in the range of $675 million to $695 million[38]. - Q1 FY'26 adjusted diluted earnings per share is projected to be between $1.18 and $1.26[35]. Consultant Metrics - The company reported a total of 560 consultants at the end of FY'25, an increase from 542 in FY'24[24]. - New engagements in the Executive Search segment totaled 1,738 in Q4 FY'25, compared to 1,586 in Q4 FY'24[24]. Adjusted Metrics - Adjusted net income attributable to Korn Ferry for the three months ended April 30, 2025, was $64.244 million, slightly down from $65.189 million in the same period last year[47]. - Adjusted EBITDA for the year ended April 30, 2025, increased to $463.866 million, compared to $408.204 million in 2024, reflecting a growth of 13.6%[53]. - The adjusted net income attributable to Korn Ferry for the three months ended April 30, 2025, was $70.109 million, up from $65.731 million in the same period of 2024, representing a 6.4% increase[56]. - Total adjusted EBITDA for the three months ended April 30, 2025, was $121,141 million, with a margin of 17.0%, up from $112,300 million and a margin of 16.3% in 2024[61].