Financial Data and Key Metrics Changes - Consolidated fee revenue grew 7% year-over-year to $722 million [11] - Adjusted EBITDA increased by $8 million, or 7% year-over-year, to $125 million, with an adjusted EBITDA margin of 17.3% [11] - Adjusted diluted earnings per share rose by $0.12, or 10% year-over-year, to $1.33 [11] Business Line Data and Key Metrics Changes - Executive search fee revenue grew 10%, marking the sixth consecutive quarter of year-over-year growth [11] - Professional search and interim fee revenue increased by 17% year-over-year, with professional search up 7% and interim, including the Trilogy acquisition, up 24% [11] - RPO delivered $253 million of new business in the quarter, with 16% from new logos and 84% from renewals [11] Market Data and Key Metrics Changes - Fee revenue in the Americas was up 3% year-over-year, led by executive search and RPO [12] - EMEA fee revenue grew 20% year-over-year, with growth in executive search, professional search, interim, consulting, and digital [12] - APAC fee revenue remained flat, with moderate growth in executive search and professional search, offset by slight declines in RPO, consulting, and digital [12] Company Strategy and Development Direction - The company is focusing on a unified "We Are Korn Ferry" strategy, integrating multiple solutions to create enduring client partnerships [4][6] - The launch of the new Talent Suite technology platform is expected to enhance the company's ability to serve clients as a holistic talent partner [9] - The company aims to drive long-term, profitable, and sustainable growth by leveraging foundational assets to deliver differentiated solutions [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for a strong 2026, emphasizing the need for talent in the current uncertain business environment [8][14] - The outlook for the third quarter of fiscal 2026 anticipates fee revenue between $680 million and $694 million, with adjusted EBITDA margins ranging from 17.2% to 17.4% [13] - Management noted that the current economic conditions have not significantly changed, and they remain focused on identified growth opportunities [24] Other Important Information - Estimated remaining fees under existing contracts increased to $1.84 billion, up 20% year-over-year [11] - The company returned almost $70 million to shareholders through repurchases and dividends during the quarter [12] - The Talent Suite launch is expected to provide significant opportunities in areas such as pay transparency and analytics [47] Q&A Session Summary Question: Strength in executive search business - Management noted significant growth in executive search worldwide, driven by changing leadership needs and the retirement of baby boomers [16] Question: Historical referral rates and future expectations - Management indicated a historical referral rate of 25%-26%, with a goal to increase it to 35% as the strategy evolves [18] Question: Improvement in placement-type solutions - Management confirmed that the strategy is working, with sequential growth in Professional Search and Interim Solutions, and noted the quality of their IP and AI usage in RPO [24] Question: Consulting bill rates and margin dynamics - Management highlighted that bill rates have increased due to larger, more impactful engagements, and there remains substantial opportunity for further growth [27][33] Question: Impact of AI on search efficiency - Management stated that while technology has improved efficiency, the larger impact comes from changes in work processes post-COVID [38] Question: Financial impact of Talent Suite - Management expects the Talent Suite to significantly enhance client engagement and analytics capabilities, leading to increased monetization of IP [46][47] Question: Changes in behavior since competitor went private - Management reported no noticeable changes in market behavior following the competitor's transition to private [51]

Core Insights - KellyOCG + Sevenstep has been recognized as a top provider in HRO Today's 2025 Baker's Dozen Customer Satisfaction Ratings for Recruitment Process Outsourcing (RPO), ranking No. 1 in deal size, No. 2 in healthcare and breadth of service, No. 4 in quality of service, and No. 3 overall out of 58 evaluated providers [1][2] Company Performance - The Baker's Dozen list is based on customer feedback from 335 client companies, providing an objective assessment of RPO providers based on service breadth, deal size, service quality, and overall customer satisfaction [2] - The integrated KellyOCG + Sevenstep brand received its first recognition this year, although its individual RPO solutions have been acknowledged for over a decade [3] Technology and Services - KellyOCG + Sevenstep utilizes agile and AI-enabled solutions for talent acquisition, integrating data and predictive analytics to enhance decision-making and strategy effectiveness [3] - The company offers modular and enterprise RPO services, total talent solutions, and industry-leading consulting services, supported by proprietary technology like SevayoInsights [3][4] Industry Position - The company has expanded its global footprint and resources, making it a compelling choice for global enterprise RPO programs and tailored solutions [4] - KellyOCG + Sevenstep combines extensive industry experience with ongoing technology investments to deliver world-class programs tailored to unique workforce needs [5]

Core Insights - KellyOCG + Sevenstep has been recognized as a Leader and Star Performer in Everest Group's 2025 Recruitment Process Outsourcing (RPO) Services PEAK Matrix Assessment, highlighting its strong technology stack and breadth of solutions [1][4] Group 1: Company Overview - KellyOCG + Sevenstep is a leading provider of permanent hiring solutions, part of Kelly's outsourced workforce solutions business, which includes recruitment process outsourcing (RPO), managed services provider (MSP), and total talent management solutions [5] - The company has expanded its global footprint to 71 countries, supported by 33 in-country teams, offering end-to-end talent acquisition capabilities [3] Group 2: Recognition and Assessment - The Everest Group's PEAK Matrix provides a data-driven assessment of global RPO providers based on market impact, vision, and capability, evaluating them across seven categories [2] - KellyOCG + Sevenstep's leadership position reflects its ability to cater to various industries and support hiring for both high-volume and specialized roles, backed by a robust technology stack [4] Group 3: Strategic Capabilities - The combined entity of KellyOCG and Sevenstep offers flexible, modular solutions designed to meet the evolving needs of clients, emphasizing outcomes and strategic expertise [4] - The integration of Sevenstep's Sevayo Insights and KellyOCG's Helix platforms enhances the company's service offerings, contributing to its recognition as a Leader and Star Performer [4]

Consolidated Financial Performance - Revenue decreased by 6% to $31.9 million compared to $33.9 million in Q1 2024[5] - Adjusted net revenue increased slightly by 0.4% to $16.4 million[5] - SG&A expenses decreased by 4.5% to $17.1 million[5] - Adjusted EBITDA improved significantly by 56.7% to $(0.7) million from $(1.5) million[5] - Net loss improved by 39.4% to $(1.8) million from $(2.9) million[5] Regional Performance - Americas revenue increased by 14.3% to $6.9 million[8] - Asia Pacific revenue decreased by 11.1% to $19.1 million[11] - EMEA revenue decreased by 7.8% to $5.9 million[14] - Adjusted EBITDA in Americas increased by 113.7% to $0.1 million[8] - Adjusted EBITDA in Asia Pacific increased significantly by 454.2% to $0.6 million[11] - Adjusted EBITDA in EMEA decreased significantly by 237.9% to $(0.5) million[14]