Financial Data and Key Metrics Changes - Q2 2025 revenue reached approximately $317 million, marking a 14% increase compared to Q2 2024 [15] - Adjusted EBITDA improved by $5 million to $34 million, with an adjusted EBITDA margin expanding by 40 basis points to 10.7% [15] - Adjusted net income for the quarter was $18.1 million, with adjusted diluted EPS at $0.85, representing a 27% increase from the previous year [22] Business Line Data and Key Metrics Changes - Executive Search revenue grew 13% to $238 million, with adjusted EBITDA of $54.6 million and an adjusted EBITDA margin of 22.9% [20] - On Demand Talent revenue increased 14% to $48 million, with adjusted EBITDA turning positive at $1 million compared to a loss of $1.6 million in the prior year [21] - Heidrick Consulting saw a 17% revenue increase to $31 million, with adjusted EBITDA of $600,000 [21] Market Data and Key Metrics Changes - Revenue increases were noted across regions: 9% in The Americas, 31% in Europe, and 12% in APAC [19] - Consultant productivity annualized at $2.3 million, up from $2 million in the same quarter last year [20] Company Strategy and Development Direction - The company aims to build differentiated relationships by being the most trusted leadership partner to the C-suite and board [12] - Focus on deepening client relationships through transformation in leadership and embedding solutions in client workflows [13] - Strategic priorities include growing talent base and enhancing productivity through training and technology [10][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing demand for leadership talent amid economic and geopolitical uncertainties [4][5] - The company anticipates continued growth in the second half of 2025, despite potential project delays due to macroeconomic factors [24] - Confidence in medium-term targets of mid to high single-digit organic revenue growth and 5-8% organic adjusted EBITDA growth [14] Other Important Information - The company ended Q2 with a strong cash position of $400 million, up from $297 million in June 2024 [23] - Expected Q3 revenue range is $295 million to $315 million, reflecting nearly 10% growth compared to the previous year [23] Q&A Session Summary Question: Insights on hiring plans for the second half of the year - The company is focused on growing its team to capitalize on existing client relationships and white space opportunities [29] - Hiring will be smooth throughout the year, with some costs from first-half hiring impacting the second half [33] Question: Cash usage and prioritization - The company sees strength across its businesses and is focused on organic investments, with potential for acquisitions as hiring discussions progress [40] Question: Third quarter revenue guidance and macroeconomic factors - Guidance reflects typical summer seasonality, with macro uncertainty factored in [44] - Demand remains strong, and client needs can accelerate quickly despite potential delays [49] Question: Executive search productivity and hiring impact - Current productivity is strong, indicating client demand, and hiring is expected to support future growth [52] Question: Regional differences in executive search EBITDA margins - Growth in Europe and Asia is seen as sustainable, while the Americas may experience fluctuations due to bonus structures [66] Question: Customer insights regarding capital markets - The company is observing a complex environment with varying levels of enthusiasm among clients, particularly in capital markets [68] Question: Industry verticals outlook for 2025 - The company sees thematic trends across industries, particularly in AI and leadership restructuring [70] Question: Sustainability of consulting margins - Management is pleased with progress and remains confident in long-term targets for consulting margins [72]