Financial Data and Key Metrics Changes - Consolidated fee revenue grew 5% year over year to $709 million, marking the second consecutive quarter of positive growth [12] - Adjusted EBITDA increased by $9 million, or 8% year over year, to $120 million, with an adjusted EBITDA margin growth of 50 basis points year over year to 17% [12] - Adjusted diluted earnings per share rose by $0.13, or 11% year over year, to $1.31 [12] Business Line Data and Key Metrics Changes - Executive Search fee revenue grew 8% year over year, marking the fifth consecutive quarter of growth in this area [11] - Professional Search and Interim fee revenue increased by 10% year over year, with Professional Services per employee up 5% and Interim up 14% [11] - Digital subscription and licensed new business grew 10% year over year, contributing to 39% of total digital new business [11] Market Data and Key Metrics Changes - Fee revenue in the Americas decreased by 2% year over year, while EMEA fee revenue grew by 19% and APAC fee revenue increased by 12% [14][15] - Total company new business, excluding RPO, grew 5% year over year, with strength noted in EMEA and APAC [13] Company Strategy and Development Direction - The company is focused on a diversification strategy that enhances resilience and durability, contributing to sustained shareholder value [8] - The upcoming launch of the TalentSuite platform is expected to enhance the delivery of integrated solutions and improve client engagement [10] - The company aims to increase the proportion of digital subscriptions to over 60% in the long term [21] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the company's trajectory despite ongoing economic uncertainties, emphasizing the importance of their integrated business strategy [9] - The outlook for the second quarter of fiscal 2026 anticipates fee revenue to range from $690 million to $710 million, with adjusted EBITDA margins expected between 17% and 17.5% [15][16] - Management noted that the current economic environment presents opportunities for strengthening client relationships and addressing complex talent challenges [9] Other Important Information - The company returned $36 million to shareholders through share repurchases and dividends, while investing $22 million in capital expenditures focused on TalentSuite and productivity tools [15] - Estimated remaining fees under existing contracts amounted to $1.67 billion, up 9% year over year, with expectations for approximately 58% to be recognized as fees within the next year [14] Q&A Session Summary Question: Key milestones for TalentSuite rollout and timeline for financial benefits - Management indicated that true benefits from TalentSuite are expected towards the end of calendar 2026, with key milestones including partnerships and training for consultants [19] Question: Long-term aspirational target for digital subscriptions - The company aims for digital subscriptions to exceed 60% of segment revenue in the long term, leveraging partnerships for growth [21] Question: Guidance for Q2 revenue and potential conservatism - Management acknowledged a conservative approach in guidance due to uncertainties in the economic backdrop [24] Question: Client feedback on economic uncertainty and job creation - Management noted optimism in the Americas but acknowledged challenges in pricing power and labor market dynamics [28] Question: Performance of Consulting new business and outlook - Management expects continued momentum in Europe and Asia for consulting solutions, while the Americas may face challenges [39] Question: Impact of AI on workforce and consulting services - Management discussed the dual impact of AI on reducing headcount and enhancing efficiency in service delivery [66][70] Question: Performance of Executive Search in North America - The Executive Search segment is benefiting from demographic shifts and changes in leadership needs post-COVID [45] Question: Opportunities in Professional Search and Interim Solutions - Management sees significant opportunities in Professional Search and Interim Solutions, particularly outside the U.S. [59]