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]

Core Insights - Korn/Ferry (KFY) is expected to report quarterly earnings of $1.26 per share, indicating no change from the previous year [1] - Analysts forecast revenues of $688.94 million, representing a decrease of 0.3% year over year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, reflecting analysts' reassessment of projections [1] Revenue Projections - Analysts estimate 'Fee Revenue - Total Executive Search' at $206.26 million, indicating a year-over-year increase of 3.8% [4] - The combined estimate for 'Fee Revenue' is projected to be $688.94 million, suggesting a decrease of 0.3% year over year [4] - 'Fee Revenue - Digital' is expected to reach $91.65 million, reflecting a change of 0.4% from the prior-year quarter [4] - 'Fee Revenue - Consulting' is anticipated to be $167.62 million, indicating a year-over-year decline of 8% [5] Market Performance - Over the past month, Korn/Ferry shares have recorded a return of 0.8%, compared to the Zacks S&P 500 composite's return of 3.6% [5] - Korn/Ferry holds a Zacks Rank 5 (Strong Sell), suggesting it may underperform the overall market in the upcoming period [5]

Financial Data and Key Metrics Changes - First quarter revenue reached approximately $284 million, marking a 7% increase compared to Q1 2024 [19] - Adjusted EBITDA improved by $3.3 million to $29.1 million, with an adjusted EBITDA margin expanding by 50 basis points to 10.3% [19] - Adjusted net income for the quarter was $14.2 million, consistent with the previous year [26] Business Line Data and Key Metrics Changes - Executive Search revenue grew 6% to $213 million, with adjusted EBITDA of $52.3 million and an adjusted EBITDA margin of 24.5% [22] - On Demand Talent revenue increased 12% to $43 million, achieving adjusted EBITDA of $400,000 compared to a loss of $900,000 in the prior year [24] - Heidrick Consulting saw organic revenue increase 7% year-over-year to $28 million, with an adjusted EBITDA loss of $2.1 million [25] Market Data and Key Metrics Changes - Revenue increases were noted across regions: 6% in The Americas, 9% in Europe, and 1% in APAC [22] - European performance was strong across various sectors, including technology, financial services, and industrials [62] Company Strategy and Development Direction - The company aims to be the most trusted leadership partner for the C-suite and board, focusing on leadership talent [10] - There is a commitment to growing executive search and assessment capabilities, which are central to the business [11] - The strategy includes continuous client engagement and innovation in products and services to meet evolving client needs [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic environment's complexity but emphasizes the company's resilience and ability to create value for clients [5][18] - The company is closely monitoring client activities and tone, anticipating potential caution in decision-making as the year progresses [8][36] - The outlook for Q2 revenue is expected to be between $285 million and $305 million, reflecting ongoing demand despite economic uncertainties [27] Other Important Information - The company ended the first quarter with a strong cash position of $325 million, up from $253 million in March 2024 [26] - The business model is characterized by zero debt, low capital expenditure, and a diversified revenue stream across geographies and industries [9] Q&A Session Summary Question: Insights on past disruptions and their relevance to current circumstances - Management noted that while segments may slow during economic distress, current results do not reflect such trends, emphasizing the unique nature of each downturn [33][34] Question: Use of cash and acquisition pipeline - The company is managing cash flow for earn-out payments from past acquisitions while prioritizing organic investments and evaluating potential acquisition opportunities [37][38] Question: M&A activity as a driver of client demand - M&A activities create opportunities for the company to assist clients in leadership and cultural integration during transitions [42][43] Question: Profitability expectations for Heidrick Consulting and On Demand Talent - Both segments are expected to improve profitability, with consulting aiming for 11% to 13% growth and on-demand talent showing positive momentum [66] Question: Demand trends among different end markets - Demand has been broad-based across sectors, with financial services performing well alongside technology and consumer markets [70]