Korn Ferry(US:KFY)2025-06-18 10:52Financial 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].