Heidrick & Struggles(US:HSII)2025-11-03 11:35Financial Performance - Q3 2025 net revenue reached $322.8 million, a 15.9% increase year-over-year from $278.6 million in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $34.2 million, up 12.6% from $30.4 million in Q3 2024, with an adjusted EBITDA margin of 10.6%[9] - Net income for Q3 2025 was $17.6 million, compared to $14.8 million in Q3 2024, resulting in diluted earnings per share of $0.83, up from $0.71[9] - Total revenue for Q3 2025 reached $327,896 thousand, reflecting a $45,081 thousand increase or 15.9% compared to Q3 2024[24] - Net income for Q3 2025 was $17,646 thousand, compared to $14,829 thousand in Q3 2024, marking an increase of 19.0%[24] - Earnings per diluted share improved to $0.83 in Q3 2025, up from $0.71 in Q3 2024[24] - Total Adjusted EBITDA for Q3 2025 was $34,244 thousand, a 12.6% increase from $30,415 thousand in Q3 2024[26] - Operating income for the nine months ended September 30, 2025, surged to $60,619 thousand, a 94.5% increase from $31,173 thousand in the same period of 2024[28] - Comprehensive income for the nine months ended September 30, 2025, was $60,785 thousand, compared to $24,515 thousand in the same period of 2024[28] - Net income for the nine months ended September 30, 2025, reached $52,025 thousand, compared to $23,704 thousand for the same period in 2024, reflecting a growth of 119.5%[34] Revenue Segments - Executive Search segment generated $239.1 million in Q3 2025, a 17.0% increase from $204.4 million in Q3 2024[10] - On-Demand Talent segment revenue increased by 10.1% to $50.9 million in Q3 2025, compared to $46.2 million in Q3 2024[11] - Heidrick Consulting segment revenue rose 17.6% to $32.8 million in Q3 2025, up from $27.9 million in Q3 2024[12] - Revenue growth was driven by increases across all business lines: Executive Search, On-Demand Talent, and Heidrick Consulting[8] - Executive Search revenue in the Americas grew by 20.8% to $162,508 thousand in Q3 2025, compared to $134,545 thousand in Q3 2024[26] - Total Executive Search revenue increased to $239,083 thousand in Q3 2025, up 17.0% from $204,389 thousand in Q3 2024[26] Operational Metrics - The ending number of consultants increased to 421 in Q3 2025 from 414 in Q3 2024, indicating growth in human capital resources[7] - Operating expenses rose to $308,735 thousand in Q3 2025, a 17.1% increase from $263,733 thousand in Q3 2024[24] - Operating income for the nine months ended September 30, 2025, was $60,619 thousand, significantly higher than $31,173 thousand for the same period in 2024, marking an increase of 94.3%[34] Balance Sheet Highlights - Total assets increased to $1,264,262 thousand as of September 30, 2025, up from $1,194,188 thousand on December 31, 2024, representing a growth of 5.8%[32] - Total current liabilities rose to $538,975 thousand as of September 30, 2025, compared to $483,013 thousand on December 31, 2024, indicating an increase of 11.6%[32] - Stockholders' equity increased to $509,220 thousand as of September 30, 2025, up from $452,817 thousand on December 31, 2024, showing a growth of 12.5%[32] - Total liabilities increased to $755,042 thousand as of September 30, 2025, compared to $741,371 thousand on December 31, 2024, reflecting a rise of 1.8%[32] - Cash and cash equivalents decreased to $454,640 thousand as of September 30, 2025, down from $515,627 thousand on December 31, 2024, a decline of 11.8%[32] Corporate Actions - The company declared a cash dividend of $0.15 per share for Q3 2025, payable on November 26, 2025[5] - The company is in the process of a take-private transaction at $59.00 per share, led by Advent International and Corvex Private Equity[4]