Korn Ferry Announces Third Quarter Fiscal 2025 Results of Operations
Korn Ferry (KFY) reported flat Q3 FY'25 fee revenue of $668.7 million (2% increase on constant currency). The company achieved net income of $58.4 million with an 8.7% margin, showing a slight 10bps decrease year-over-year. Adjusted EBITDA rose to $114.5 million with a 17.1% margin, up 190bps from the previous year.
Key performance highlights include: RPO fee revenue increased 4% year-over-year, with new business of $210 million (64% from new clients). Diluted and adjusted EPS were $1.10 and $1.19 respectively. The company repurchased 237,000 shares for $17.9 million during the quarter.
Looking ahead, Q4 FY'25 guidance projects fee revenue between $680-700 million, with diluted EPS expected at $1.20-1.28 and adjusted diluted EPS at $1.22-1.30.
Korn Ferry (KFY) ha riportato ricavi da commissioni stabili nel terzo trimestre dell'anno fiscale '25, pari a 668,7 milioni di dollari (aumento del 2% a valuta costante). L'azienda ha registrato un utile netto di 58,4 milioni di dollari con un margine dell'8,7%, mostrando una leggera diminuzione di 10 punti base rispetto all'anno precedente. L'EBITDA rettificato è salito a 114,5 milioni di dollari con un margine del 17,1%, in aumento di 190 punti base rispetto all'anno scorso.
I principali punti salienti delle performance includono: i ricavi da commissioni RPO sono aumentati del 4% rispetto all'anno precedente, con nuovi affari pari a 210 milioni di dollari (64% provenienti da nuovi clienti). L'utile per azione diluito e rettificato erano rispettivamente di 1,10 e 1,19 dollari. L'azienda ha riacquistato 237.000 azioni per 17,9 milioni di dollari durante il trimestre.
Guardando avanti, le previsioni per il quarto trimestre dell'anno fiscale '25 indicano ricavi da commissioni compresi tra 680-700 milioni di dollari, con un utile per azione diluito previsto tra 1,20 e 1,28 dollari e un utile per azione diluito rettificato tra 1,22 e 1,30 dollari.
Korn Ferry (KFY) reportó ingresos por honorarios estables en el tercer trimestre del año fiscal '25, alcanzando 668.7 millones de dólares (aumento del 2% en moneda constante). La compañía logró un ingreso neto de 58.4 millones de dólares con un margen del 8.7%, mostrando una ligera disminución de 10 puntos básicos en comparación con el año anterior. El EBITDA ajustado aumentó a 114.5 millones de dólares con un margen del 17.1%, un incremento de 190 puntos básicos respecto al año anterior.
Los aspectos destacados del rendimiento incluyen: los ingresos por honorarios RPO aumentaron un 4% interanual, con nuevos negocios de 210 millones de dólares (64% de nuevos clientes). Las ganancias por acción diluida y ajustada fueron de 1.10 y 1.19 dólares respectivamente. La compañía recompró 237,000 acciones por 17.9 millones de dólares durante el trimestre.
De cara al futuro, la guía para el cuarto trimestre del año fiscal '25 proyecta ingresos por honorarios entre 680-700 millones de dólares, con ganancias por acción diluida esperadas entre 1.20 y 1.28 dólares y ganancias por acción diluida ajustadas entre 1.22 y 1.30 dólares.
Korn Ferry (KFY)는 2025 회계연도 3분기 수수료 수익이 6억 6,870만 달러로 변동이 없다고 보고했습니다(상수환율 기준 2% 증가). 이 회사는 5,840만 달러의 순이익을 달성했으며, 마진은 8.7%로 전년 대비 10bps 감소했습니다. 조정된 EBITDA는 1억 1,450만 달러로 증가했으며, 마진은 17.1%로 전년 대비 190bps 증가했습니다.
주요 성과 하이라이트에는 RPO 수수료 수익이 전년 대비 4% 증가했으며, 신규 사업이 2억 1,000만 달러(64%는 신규 고객)로 나타났습니다. 희석 및 조정된 주당 순이익은 각각 1.10달러와 1.19달러였습니다. 이 회사는 분기 동안 237,000주를 1,790만 달러에 재매입했습니다.
앞으로의 전망으로, 2025 회계연도 4분기 가이드는 수수료 수익이 6억 8,000만~7억 달러 사이가 될 것으로 예측하며, 희석 주당 순이익은 1.20~1.28달러, 조정된 희석 주당 순이익은 1.22~1.30달러로 예상됩니다.
Korn Ferry (KFY) a rapporté des revenus de frais stables au troisième trimestre de l'exercice '25, s'élevant à 668,7 millions de dollars (augmentation de 2% à taux de change constant). L'entreprise a réalisé un revenu net de 58,4 millions de dollars avec une marge de 8,7%, montrant une légère diminution de 10 points de base par rapport à l'année précédente. L'EBITDA ajusté a augmenté à 114,5 millions de dollars avec une marge de 17,1%, en hausse de 190 points de base par rapport à l'année précédente.
Les principaux points forts de la performance incluent : les revenus de frais RPO ont augmenté de 4% d'une année sur l'autre, avec de nouvelles affaires de 210 millions de dollars (64% provenant de nouveaux clients). Le bénéfice par action dilué et ajusté était respectivement de 1,10 et 1,19 dollars. L'entreprise a racheté 237 000 actions pour 17,9 millions de dollars au cours du trimestre.
En regardant vers l'avenir, les prévisions pour le quatrième trimestre de l'exercice '25 projettent des revenus de frais entre 680-700 millions de dollars, avec un bénéfice par action dilué attendu entre 1,20 et 1,28 dollars et un bénéfice par action dilué ajusté entre 1,22 et 1,30 dollars.
Korn Ferry (KFY) berichtete über stabile Gebühreneinnahmen im dritten Quartal des Geschäftsjahres '25 in Höhe von 668,7 Millionen Dollar (2% Anstieg bei konstanten Währungen). Das Unternehmen erzielte netto 58,4 Millionen Dollar mit einer Marge von 8,7%, was einen leichten Rückgang von 10 Basispunkten im Vergleich zum Vorjahr zeigt. Das bereinigte EBITDA stieg auf 114,5 Millionen Dollar mit einer Marge von 17,1%, was einem Anstieg von 190 Basispunkten im Vergleich zum Vorjahr entspricht.
Wichtige Leistungskennzahlen umfassen: Die Gebühreneinnahmen aus RPO stiegen im Jahresvergleich um 4%, wobei die neuen Geschäfte 210 Millionen Dollar ausmachten (64% von neuen Kunden). Der verwässerte und bereinigte Gewinn pro Aktie betrug 1,10 Dollar bzw. 1,19 Dollar. Das Unternehmen hat im Laufe des Quartals 237.000 Aktien für 17,9 Millionen Dollar zurückgekauft.
Für das vierte Quartal des Geschäftsjahres '25 wird ein Gebühreneinkommen zwischen 680-700 Millionen Dollar prognostiziert, wobei der verwässerte Gewinn pro Aktie zwischen 1,20 und 1,28 Dollar und der bereinigte verwässerte Gewinn pro Aktie zwischen 1,22 und 1,30 Dollar erwartet wird.
- Adjusted EBITDA margin improved 190bps to 17.1%
- RPO segment revenue grew 4% with strong new client wins
- Strong Q4 guidance indicating continued growth
- New business reached $210 million with 64% from new clients
- Improved consultant productivity and disciplined cost management across segments
- Flat overall revenue growth year-over-year
- Net income margin declined 10bps to 8.7%
- Consulting segment revenue decreased 5%
- Industry-wide slowdown in demand for Permanent and Interim professionals
Insights
Korn Ferry's Q3 FY25 results demonstrate resilience despite macroeconomic headwinds, with
Segment performance shows a mixed picture: Executive Search grew
The
The company's focus on productivity and cost discipline is delivering tangible results, offsetting flat topline growth and positioning Korn Ferry well for an economic environment characterized by talent supply/demand imbalances.
Highlights
-
Fee revenue in Q3 FY'25 was
$668.7 million 2% increase on a constant currency basis). -
RPO fee revenue increased
4% year over year and new business in Q3 FY'25 was$210 million 64% and36% was from new client wins and renewals/extensions, respectively. -
Net income attributable to Korn Ferry was
$58.4 million 8.7% , a 10bps decrease compared to the year-ago quarter. Adjusted EBITDA was$114.5 million 17.1% , a 190bps increase compared to the year-ago quarter. -
Diluted and adjusted diluted earnings per share were
$1.10 $1.19 -
The Company repurchased 237,000 shares of stock during the quarter for
$17.9 million
“I am pleased with our third quarter results, which clearly demonstrate the power of our business and the strength of our diversification,” said Gary D. Burnison, CEO, Korn Ferry. “Tomorrow’s macro environment will be encircled by a labor supply/demand imbalance which will require companies to reimagine and reskill their workforce; inspire, employ, develop and retain talent; and embrace technologies that drive a new world of work—all of which present tremendous opportunity for Korn Ferry as we deliver offerings and expertise that drive organizational performance.”
Selected Financial Results |
||||||||||||||||
(dollars in millions, except per share amounts) (a) |
||||||||||||||||
|
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Fee revenue |
$ |
668.7 |
|
|
$ |
668.7 |
|
|
$ |
2,018.0 |
|
|
$ |
2,071.9 |
|
|
Total revenue |
$ |
676.5 |
|
|
$ |
676.9 |
|
|
$ |
2,041.3 |
|
|
$ |
2,095.6 |
|
|
Net income attributable to Korn Ferry |
$ |
58.4 |
|
|
$ |
59.1 |
|
|
$ |
181.8 |
|
|
$ |
104.0 |
|
|
Net income attributable to Korn Ferry margin |
|
8.7 |
% |
|
|
8.8 |
% |
|
|
9.0 |
% |
|
|
5.0 |
% |
|
Basic earnings per share |
$ |
1.12 |
|
|
$ |
1.14 |
|
|
$ |
3.46 |
|
|
$ |
2.00 |
|
|
Diluted earnings per share |
$ |
1.10 |
|
|
$ |
1.13 |
|
|
$ |
3.40 |
|
|
$ |
1.99 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Results (b): |
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Adjusted EBITDA |
$ |
114.5 |
|
|
$ |
101.7 |
|
|
$ |
342.7 |
|
|
$ |
295.9 |
|
|
Adjusted EBITDA margin |
|
17.1 |
% |
|
|
15.2 |
% |
|
|
17.0 |
% |
|
|
14.3 |
% |
|
Adjusted net income attributable to Korn Ferry (c) |
$ |
63.3 |
|
|
$ |
55.8 |
|
|
$ |
191.1 |
|
|
$ |
158.3 |
|
|
Adjusted basic earnings per share (c) |
$ |
1.21 |
|
|
$ |
1.07 |
|
|
$ |
3.64 |
|
|
$ |
3.04 |
|
|
Adjusted diluted earnings per share (c) |
$ |
1.19 |
|
|
$ |
1.07 |
|
|
$ |
3.57 |
|
|
$ |
3.03 |
|
|
______________________ |
||
(a) |
Numbers may not total due to rounding. |
|
(b) |
Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations): |
|
|
Third Quarter |
|
Year to Date |
|||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||
Integration/acquisition costs |
$ |
2.1 |
|
$ |
3.9 |
|
$ |
7.1 |
|
$ |
13.1 |
|
Restructuring charges, net |
$ |
1.3 |
|
$ |
4.6 |
|
$ |
1.9 |
|
$ |
68.6 |
|
Impairment of fixed assets |
$ |
0.5 |
|
$ |
— |
|
$ |
0.5 |
|
$ |
1.6 |
|
Impairment of right-of-use assets |
$ |
2.5 |
|
$ |
— |
|
$ |
2.5 |
|
$ |
1.6 |
|
(c) |
Due to actions taken in connection with the worldwide minimum tax, the Company recorded a |
The Company reported fee revenue in Q3 FY'25 of
Net income attributable to Korn Ferry was
Net income attributable to Korn Ferry and net income attributable to Korn Ferry margin decreased as a result of higher income tax provision in the current period compared to a non-recurring tax benefit recorded in the year-ago quarter from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance, partially offset by disciplined cost management and strong consultant productivity.
Adjusted EBITDA and Adjusted EBITDA margin increased due to disciplined cost management and strong consultant productivity.
Results by Line of Business
Selected Consulting Data |
||||||||||||||||
(dollars in millions) (a) |
||||||||||||||||
|
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Fee revenue |
$ |
158.7 |
|
|
$ |
166.9 |
|
|
$ |
493.3 |
|
|
$ |
512.8 |
|
|
Total revenue |
$ |
161.4 |
|
|
$ |
169.9 |
|
|
$ |
501.5 |
|
|
$ |
521.7 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending number of consultants and execution staff (b) |
|
1,632 |
|
|
|
1,687 |
|
|
|
1,632 |
|
|
|
1,687 |
|
|
Hours worked in thousands (c) |
|
344 |
|
|
|
381 |
|
|
|
1,137 |
|
|
|
1,239 |
|
|
Average bill rate (d) |
$ |
461 |
|
|
$ |
438 |
|
|
$ |
434 |
|
|
$ |
414 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Results (e): |
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Adjusted EBITDA |
$ |
28.0 |
|
|
$ |
27.8 |
|
|
$ |
86.4 |
|
|
$ |
81.9 |
|
|
Adjusted EBITDA margin |
|
17.7 |
% |
|
|
16.7 |
% |
|
|
17.5 |
% |
|
|
16.0 |
% |
|
______________________ |
||
(a) |
Numbers may not total due to rounding. |
|
(b) |
Represents number of employees originating, delivering and executing consulting services. |
|
(c) |
The number of hours worked by consultant and execution staff during the period. |
|
(d) |
The amount of fee revenue divided by the number of hours worked by consultants and execution staff. |
|
(e) |
Adjusted results exclude the following: |
|
|
Third Quarter |
|
Year to Date |
|||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||
Restructuring charges, net |
$ |
1.3 |
|
$ |
1.1 |
|
$ |
1.7 |
|
$ |
18.9 |
|
Impairment of right-of-use assets |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
0.6 |
|
Fee revenue was
Adjusted EBITDA was
Selected Digital Data |
||||||||||||||||
(dollars in millions) (a) |
||||||||||||||||
|
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Fee revenue |
$ |
90.8 |
|
|
$ |
90.3 |
|
|
$ |
271.9 |
|
|
$ |
275.4 |
|
|
Total revenue |
$ |
90.8 |
|
|
$ |
90.4 |
|
|
$ |
272.1 |
|
|
$ |
275.6 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending number of consultants |
|
249 |
|
|
|
275 |
|
|
|
249 |
|
|
|
275 |
|
|
Subscription & License fee revenue |
$ |
34.5 |
|
|
$ |
32.8 |
|
|
$ |
103.2 |
|
|
$ |
97.7 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Results (b): |
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Adjusted EBITDA |
$ |
28.4 |
|
|
$ |
27.4 |
|
|
$ |
84.2 |
|
|
$ |
80.7 |
|
|
Adjusted EBITDA margin |
|
31.3 |
% |
|
|
30.3 |
% |
|
|
31.0 |
% |
|
|
29.3 |
% |
|
______________________ |
||
(a) |
Numbers may not total due to rounding. |
|
(b) |
Adjusted results exclude the following: |
|
|
Third Quarter |
|
Year to Date |
|||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||
Restructuring charges, net |
$ |
— |
|
$ |
0.6 |
|
$ |
— |
|
$ |
9.5 |
|
Impairment of fixed assets |
$ |
0.4 |
|
$ |
— |
|
$ |
0.4 |
|
$ |
1.5 |
|
Fee revenue was
Adjusted EBITDA was
Selected Executive Search Data(a) |
||||||||||||||||
(dollars in millions) (b) |
||||||||||||||||
|
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Fee revenue |
$ |
204.6 |
|
|
$ |
199.3 |
|
|
$ |
619.2 |
|
|
$ |
607.5 |
|
|
Total revenue |
$ |
206.6 |
|
|
$ |
201.2 |
|
|
$ |
624.9 |
|
|
$ |
613.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending number of consultants |
|
560 |
|
|
|
562 |
|
|
|
560 |
|
|
|
562 |
|
|
Average number of consultants |
|
558 |
|
|
|
574 |
|
|
|
551 |
|
|
|
582 |
|
|
Engagements billed |
|
3,540 |
|
|
|
3,469 |
|
|
|
7,211 |
|
|
|
7,269 |
|
|
New engagements (c) |
|
1,464 |
|
|
|
1,425 |
|
|
|
4,587 |
|
|
|
4,505 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Results (d): |
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Adjusted EBITDA |
$ |
51.2 |
|
|
$ |
43.4 |
|
|
$ |
152.0 |
|
|
$ |
125.6 |
|
|
Adjusted EBITDA margin |
|
25.0 |
% |
|
|
21.8 |
% |
|
|
24.5 |
% |
|
|
20.7 |
% |
|
______________________ |
||
(a) |
Executive Search is the sum of the individual Executive Search Reporting Segments described in our annual and quarterly reporting on Forms 10-K and 10-Q and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Lines of Business, and financial metrics used by the Company’s investor base. |
|
(b) |
Numbers may not total due to rounding. |
|
(c) |
Represents new engagements opened in the respective period. |
|
(d) |
Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following: |
|
|
Third Quarter |
|
Year to Date |
|||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||
Restructuring charges, net |
$ |
— |
|
$ |
2.3 |
|
$ |
0.2 |
|
$ |
28.2 |
|
Impairment of right-of-use assets |
$ |
2.5 |
|
$ |
— |
|
$ |
2.5 |
|
$ |
0.9 |
|
Impairment of fixed assets |
$ |
0.2 |
|
$ |
— |
|
$ |
0.2 |
|
$ |
0.1 |
|
Fee revenue was
Adjusted EBITDA was
Selected Professional Search & Interim Data |
||||||||||||||||
(dollars in millions) (a) |
||||||||||||||||
|
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Fee revenue |
$ |
130.0 |
|
|
$ |
130.9 |
|
|
$ |
372.8 |
|
|
$ |
411.5 |
|
|
Total revenue |
$ |
130.9 |
|
|
$ |
131.8 |
|
|
$ |
375.6 |
|
|
$ |
414.3 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Permanent Placement: |
|
|
|
|
|
|
|
|||||||||
Fee revenue |
$ |
47.9 |
|
|
$ |
52.4 |
|
|
$ |
152.9 |
|
|
$ |
167.2 |
|
|
Engagements billed |
|
1,675 |
|
|
|
1,901 |
|
|
|
3,780 |
|
|
|
4,511 |
|
|
New engagements (b) |
|
883 |
|
|
|
995 |
|
|
|
2,802 |
|
|
|
3,414 |
|
|
Ending number of consultants |
|
296 |
|
|
|
344 |
|
|
|
296 |
|
|
|
344 |
|
|
Interim: |
|
|
|
|
|
|
|
|||||||||
Fee revenue |
$ |
82.1 |
|
|
$ |
78.5 |
|
|
$ |
219.9 |
|
|
$ |
244.3 |
|
|
Average bill rate (c) |
$ |
129 |
|
|
$ |
129 |
|
|
$ |
134 |
|
|
$ |
126 |
|
|
Average weekly billable consultants (d) |
|
1,324 |
|
|
|
1,283 |
|
|
|
1,124 |
|
|
|
1,352 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Results (e): |
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Adjusted EBITDA |
$ |
27.3 |
|
|
$ |
23.8 |
|
|
$ |
80.2 |
|
|
$ |
73.7 |
|
|
Adjusted EBITDA margin |
|
21.0 |
% |
|
|
18.2 |
% |
|
|
21.5 |
% |
|
|
17.9 |
% |
|
_____________________ |
||
(a) |
Numbers may not total due to rounding. |
|
(b) |
Represents new engagements opened in the respective period. |
|
(c) |
Fee revenue from interim divided by the number of hours worked by consultants. |
|
(d) |
The number of billable consultants based on a weekly average in the respective period. |
|
(e) |
Adjusted results exclude the following: |
|
|
Third Quarter |
|
Year to Date |
|||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||
Integration/acquisition costs |
$ |
2.0 |
|
$ |
3.8 |
|
$ |
4.4 |
|
$ |
12.7 |
|
Restructuring charges, net |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3.8 |
|
Fee revenue was
Adjusted EBITDA was
Selected Recruitment Process Outsourcing ("RPO") Data |
||||||||||||||||
(dollars in millions) (a) |
||||||||||||||||
|
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Fee revenue |
$ |
84.7 |
|
|
$ |
81.2 |
|
|
$ |
260.8 |
|
|
$ |
264.7 |
|
|
Total revenue |
$ |
86.9 |
|
|
$ |
83.6 |
|
|
$ |
267.1 |
|
|
$ |
270.5 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Remaining revenue under contract (b) |
$ |
752.4 |
|
|
$ |
695.8 |
|
|
$ |
752.4 |
|
|
$ |
695.8 |
|
|
RPO new business (c) |
$ |
209.9 |
|
|
$ |
122.1 |
|
|
$ |
414.6 |
|
|
$ |
311.2 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted Results (d): |
Third Quarter |
|
Year to Date |
|||||||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||||||
Adjusted EBITDA |
$ |
12.7 |
|
|
$ |
9.3 |
|
|
$ |
38.1 |
|
|
$ |
28.6 |
|
|
Adjusted EBITDA margin |
|
15.0 |
% |
|
|
11.4 |
% |
|
|
14.6 |
% |
|
|
10.8 |
% |
|
______________________ |
||
(a) |
Numbers may not total due to rounding. |
|
(b) |
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. |
|
(c) |
Estimated total value of a contract at the point of execution of the contract. |
|
(d) |
Adjusted results exclude the following: |
|
|
Third Quarter |
|
Year to Date |
|||||||||
|
FY’25 |
|
FY’24 |
|
FY’25 |
|
FY’24 |
|||||
Restructuring charges, net |
$ |
— |
|
$ |
0.7 |
|
$ |
— |
|
$ |
7.9 |
|
Impairment of right-of-use assets |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
0.1 |
|
Fee revenue was
Adjusted EBITDA was
Outlook
Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:
-
Q4 FY’25 fee revenue is expected to be in the range of
$680 million $700 million
-
Q4 FY’25 diluted earnings per share is expected to range between
$1.20 $1.28
On a consolidated adjusted basis:
-
Q4 FY’25 adjusted diluted earnings per share is expected to be in the range from
$1.22 $1.30
|
Q4 FY’25
|
|||||||
|
Low |
|
High |
|||||
|
|
|
|
|||||
Consolidated diluted earnings per share |
$ |
1.20 |
|
|
$ |
1.28 |
|
|
Integration/acquisition costs |
|
0.03 |
|
|
|
0.03 |
|
|
Tax rate impact |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
Consolidated adjusted diluted earnings per share(1) |
$ |
1.22 |
|
|
$ |
1.30 |
|
|
______________________ |
||
(1) |
Consolidated adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table. |
|
Earnings Conference Call Webcast
The earnings conference call will be held today at 12:00 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at ir.kornferry.com. We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.
About Korn Ferry
Korn Ferry is a global organizational consulting firm, bringing together strategy and talent to drive superior performance for our clients. We work with our clients to design their organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward, develop, and motivate their workforce. And we help professionals navigate and advance their careers.
Forward-Looking Statements
Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, expected benefits of the acquisition of Trilogy, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as “believes”, “expects”, “anticipates”, “goals”, “estimates”, “guidance”, “may”, “should”, “could”, “will” or “likely”, and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, trade wars, interest rates, labor market conditions, global slowdowns, or recessions, competition, geopolitical tensions, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to corporate responsibility matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property ("IP"), our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the expansion of social media platforms, the ability to effect acquisitions and integrate acquired businesses, resulting organizational changes, our indebtedness, and those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Measures
This press release contains financial information calculated other than in accordance with
-
Adjusted net income attributable to Korn Ferry, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net of income tax effect, and to exclude a
$9.7 million
-
Adjusted basic and diluted earnings per share, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net of income tax effect, and to exclude a
$9.7 million
- Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period; and
- Consolidated and Executive Search Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net when applicable, and Consolidated and Executive Search Adjusted EBITDA margin.
This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain charges that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These charges, which are described in the footnotes in the attached reconciliations, represent 1) costs we incurred to acquire and integrate a portion of our Professional Search & Interim business, 2) impairment of fixed assets primarily due to software impairment charge in our Digital segment, 3) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices, 4) restructuring charges, net to align workforce to challenging macroeconomic business environment and 5) to exclude a
KORN FERRY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
(unaudited) |
|||||||||||||||
Fee revenue |
$ |
668,729 |
|
|
$ |
668,679 |
|
|
$ |
2,018,040 |
|
|
$ |
2,071,871 |
|
|
Reimbursed out-of-pocket engagement expenses |
|
7,809 |
|
|
|
8,194 |
|
|
|
23,219 |
|
|
|
23,711 |
|
|
Total revenue |
|
676,538 |
|
|
|
676,873 |
|
|
|
2,041,259 |
|
|
|
2,095,582 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Compensation and benefits |
|
425,319 |
|
|
|
456,216 |
|
|
|
1,314,521 |
|
|
|
1,389,956 |
|
|
General and administrative expenses |
|
65,325 |
|
|
|
62,661 |
|
|
|
189,865 |
|
|
|
194,315 |
|
|
Reimbursed expenses |
|
7,809 |
|
|
|
8,194 |
|
|
|
23,219 |
|
|
|
23,711 |
|
|
Cost of services |
|
78,047 |
|
|
|
75,814 |
|
|
|
210,248 |
|
|
|
231,516 |
|
|
Depreciation and amortization |
|
20,490 |
|
|
|
19,509 |
|
|
|
59,756 |
|
|
|
58,075 |
|
|
Restructuring charges, net |
|
1,316 |
|
|
|
4,612 |
|
|
|
1,892 |
|
|
|
68,558 |
|
|
Total operating expenses |
|
598,306 |
|
|
|
627,006 |
|
|
|
1,799,501 |
|
|
|
1,966,131 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
78,232 |
|
|
|
49,867 |
|
|
|
241,758 |
|
|
|
129,451 |
|
|
Other income, net |
|
9,363 |
|
|
|
23,817 |
|
|
|
29,259 |
|
|
|
23,559 |
|
|
Interest expense, net |
|
(5,461 |
) |
|
|
(4,946 |
) |
|
|
(15,032 |
) |
|
|
(16,282 |
) |
|
Income before provision for income taxes |
|
82,134 |
|
|
|
68,738 |
|
|
|
255,985 |
|
|
|
136,728 |
|
|
Income tax provision |
|
22,795 |
|
|
|
9,018 |
|
|
|
70,047 |
|
|
|
29,779 |
|
|
Net income |
|
59,339 |
|
|
|
59,720 |
|
|
|
185,938 |
|
|
|
106,949 |
|
|
Net income attributable to noncontrolling interest |
|
(925 |
) |
|
|
(649 |
) |
|
|
(4,120 |
) |
|
|
(2,984 |
) |
|
Net income attributable to Korn Ferry |
$ |
58,414 |
|
|
$ |
59,071 |
|
|
$ |
181,818 |
|
|
$ |
103,965 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per common share attributable to Korn Ferry: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
1.12 |
|
|
$ |
1.14 |
|
|
$ |
3.46 |
|
|
$ |
2.00 |
|
|
Diluted |
$ |
1.10 |
|
|
$ |
1.13 |
|
|
$ |
3.40 |
|
|
$ |
1.99 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
51,606 |
|
|
|
51,126 |
|
|
|
51,838 |
|
|
|
51,129 |
|
|
Diluted |
|
52,364 |
|
|
|
51,343 |
|
|
|
52,789 |
|
|
|
51,329 |
|
|
KORN FERRY AND SUBSIDIARIES FINANCIAL SUMMARY BY REPORTING SEGMENT (dollars in thousands) (unaudited) |
||||||||||||||||||
|
Three Months Ended January 31, |
|
Nine Months Ended January 31, |
|||||||||||||||
|
2025 |
|
2024 |
|
% Change |
|
2025 |
|
2024 |
|
% Change |
|||||||
Fee revenue: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Consulting |
$ |
158,704 |
|
$ |
166,947 |
|
(4.9 |
%) |
|
$ |
493,345 |
|
$ |
512,830 |
|
(3.8 |
%) |
|
Digital |
|
90,823 |
|
|
90,317 |
|
0.6 |
% |
|
|
271,896 |
|
|
275,395 |
|
(1.3 |
%) |
|
Executive Search: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
128,264 |
|
|
121,449 |
|
5.6 |
% |
|
|
392,907 |
|
|
381,459 |
|
3.0 |
% |
|
EMEA |
|
47,840 |
|
|
48,999 |
|
(2.4 |
%) |
|
|
140,609 |
|
|
138,873 |
|
1.3 |
% |
|
|
|
21,664 |
|
|
21,324 |
|
1.6 |
% |
|
|
63,707 |
|
|
65,167 |
|
(2.2 |
%) |
|
|
|
6,803 |
|
|
7,541 |
|
(9.8 |
%) |
|
|
21,982 |
|
|
22,041 |
|
(0.3 |
%) |
|
Total Executive Search (a) |
|
204,571 |
|
|
199,313 |
|
2.6 |
% |
|
|
619,205 |
|
|
607,540 |
|
1.9 |
% |
|
Professional Search & Interim |
|
129,957 |
|
|
130,890 |
|
(0.7 |
%) |
|
|
372,805 |
|
|
411,453 |
|
(9.4 |
%) |
|
RPO |
|
84,674 |
|
|
81,212 |
|
4.3 |
% |
|
|
260,789 |
|
|
264,653 |
|
(1.5 |
%) |
|
Total fee revenue |
|
668,729 |
|
|
668,679 |
|
0.0 |
% |
|
|
2,018,040 |
|
|
2,071,871 |
|
(2.6 |
%) |
|
Reimbursed out-of-pocket engagement expenses |
|
7,809 |
|
|
8,194 |
|
(4.7 |
%) |
|
|
23,219 |
|
|
23,711 |
|
(2.1 |
%) |
|
Total revenue |
$ |
676,538 |
|
$ |
676,873 |
|
(0.0 |
%) |
|
$ |
2,041,259 |
|
$ |
2,095,582 |
|
(2.6 |
%) |
|
(a) |
Total Executive Search is the sum of the individual Executive Search Reporting Segments and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Lines of Business, and financial metrics used by the Company’s investor base. |
KORN FERRY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) |
||||||||
|
January 31,
|
|
April 30,
|
|||||
|
(unaudited) |
|
|
|||||
ASSETS |
|
|
|
|||||
Cash and cash equivalents |
$ |
779,298 |
|
|
$ |
941,005 |
|
|
Marketable securities |
|
40,658 |
|
|
|
42,742 |
|
|
Receivables due from clients, net of allowance for doubtful accounts of |
|
575,703 |
|
|
|
541,014 |
|
|
Income taxes and other receivables |
|
54,467 |
|
|
|
40,696 |
|
|
Unearned compensation |
|
61,842 |
|
|
|
59,247 |
|
|
Prepaid expenses and other assets |
|
45,352 |
|
|
|
49,456 |
|
|
Total current assets |
|
1,557,320 |
|
|
|
1,674,160 |
|
|
|
|
|
|
|||||
Marketable securities, non-current |
|
241,037 |
|
|
|
211,681 |
|
|
Property and equipment, net |
|
162,769 |
|
|
|
161,849 |
|
|
Operating lease right-of-use assets, net |
|
148,169 |
|
|
|
160,464 |
|
|
Cash surrender value of company-owned life insurance policies, net of loans |
|
254,027 |
|
|
|
218,977 |
|
|
Deferred income taxes |
|
130,427 |
|
|
|
133,564 |
|
|
Goodwill |
|
942,105 |
|
|
|
908,376 |
|
|
Intangible assets, net |
|
75,841 |
|
|
|
88,833 |
|
|
Unearned compensation, non-current |
|
111,121 |
|
|
|
99,913 |
|
|
Investments and other assets |
|
26,843 |
|
|
|
21,052 |
|
|
Total assets |
$ |
3,649,659 |
|
|
$ |
3,678,869 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|||||
Accounts payable |
$ |
51,659 |
|
|
$ |
50,112 |
|
|
Income taxes payable |
|
20,653 |
|
|
|
24,076 |
|
|
Compensation and benefits payable |
|
416,051 |
|
|
|
525,466 |
|
|
Operating lease liability, current |
|
36,806 |
|
|
|
36,073 |
|
|
Other accrued liabilities |
|
292,588 |
|
|
|
298,792 |
|
|
Total current liabilities |
|
817,757 |
|
|
|
934,519 |
|
|
|
|
|
|
|||||
Deferred compensation and other retirement plans |
|
476,413 |
|
|
|
440,396 |
|
|
Operating lease liability, non-current |
|
130,850 |
|
|
|
143,507 |
|
|
Long-term debt |
|
397,535 |
|
|
|
396,946 |
|
|
Deferred tax liabilities |
|
4,952 |
|
|
|
4,540 |
|
|
Other liabilities |
|
24,875 |
|
|
|
21,636 |
|
|
Total liabilities |
|
1,852,382 |
|
|
|
1,941,544 |
|
|
|
|
|
|
|||||
Stockholders' equity |
|
|
|
|||||
Common stock: |
|
365,435 |
|
|
|
414,885 |
|
|
Retained earnings |
|
1,549,086 |
|
|
|
1,425,844 |
|
|
Accumulated other comprehensive loss, net |
|
(121,781 |
) |
|
|
(107,671 |
) |
|
Total Korn Ferry stockholders' equity |
|
1,792,740 |
|
|
|
1,733,058 |
|
|
Noncontrolling interest |
|
4,537 |
|
|
|
4,267 |
|
|
Total stockholders' equity |
|
1,797,277 |
|
|
|
1,737,325 |
|
|
Total liabilities and stockholders' equity |
$ |
3,649,659 |
|
|
$ |
3,678,869 |
|
|
(1) |
Information is derived from audited financial statements included in Form 10-K. |
KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (dollars in thousands) (unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended January 31, |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to Korn Ferry |
$ |
58,414 |
|
|
$ |
59,071 |
|
|
$ |
181,818 |
|
|
$ |
103,965 |
|
|
Net income attributable to non-controlling interest |
|
925 |
|
|
|
649 |
|
|
|
4,120 |
|
|
|
2,984 |
|
|
Net income |
|
59,339 |
|
|
|
59,720 |
|
|
|
185,938 |
|
|
|
106,949 |
|
|
Income tax provision |
|
22,795 |
|
|
|
9,018 |
|
|
|
70,047 |
|
|
|
29,779 |
|
|
Income before provision for income taxes |
|
82,134 |
|
|
|
68,738 |
|
|
|
255,985 |
|
|
|
136,728 |
|
|
Interest expense, net |
|
5,461 |
|
|
|
4,946 |
|
|
|
15,032 |
|
|
|
16,282 |
|
|
Depreciation and amortization |
|
20,490 |
|
|
|
19,509 |
|
|
|
59,756 |
|
|
|
58,075 |
|
|
Integration/acquisition costs (1) |
|
2,127 |
|
|
|
3,899 |
|
|
|
7,099 |
|
|
|
13,057 |
|
|
Impairment of fixed assets (2) |
|
509 |
|
|
|
— |
|
|
|
509 |
|
|
|
1,575 |
|
|
Impairment of right-of-use assets (3) |
|
2,452 |
|
|
|
— |
|
|
|
2,452 |
|
|
|
1,629 |
|
|
Restructuring charges, net (4) |
|
1,316 |
|
|
|
4,612 |
|
|
|
1,892 |
|
|
|
68,558 |
|
|
Adjusted EBITDA |
$ |
114,489 |
|
|
$ |
101,704 |
|
|
$ |
342,725 |
|
|
$ |
295,904 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to Korn Ferry margin |
|
8.7 |
% |
|
|
8.8 |
% |
|
|
9.0 |
% |
|
|
5.0 |
% |
|
Net income attributable to non-controlling interest |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.1 |
% |
|
Income tax provision |
|
3.4 |
% |
|
|
1.4 |
% |
|
|
3.5 |
% |
|
|
1.5 |
% |
|
Interest expense, net |
|
0.8 |
% |
|
|
0.7 |
% |
|
|
0.7 |
% |
|
|
0.8 |
% |
|
Depreciation and amortization |
|
3.1 |
% |
|
|
2.9 |
% |
|
|
3.0 |
% |
|
|
2.8 |
% |
|
Integration/acquisition costs (1) |
|
0.3 |
% |
|
|
0.6 |
% |
|
|
0.4 |
% |
|
|
0.6 |
% |
|
Impairment of fixed assets (2) |
|
0.1 |
% |
|
|
— |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
Impairment of right-of-use assets (3) |
|
0.4 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
Restructuring charges, net (4) |
|
0.2 |
% |
|
|
0.7 |
% |
|
|
0.1 |
% |
|
|
3.3 |
% |
|
Adjusted EBITDA margin |
|
17.1 |
% |
|
|
15.2 |
% |
|
|
17.0 |
% |
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to Korn Ferry |
$ |
58,414 |
|
|
$ |
59,071 |
|
|
$ |
181,818 |
|
|
$ |
103,965 |
|
|
Integration/acquisition costs (1) |
|
2,127 |
|
|
|
3,899 |
|
|
|
7,099 |
|
|
|
13,057 |
|
|
Impairment of fixed assets (2) |
|
509 |
|
|
|
— |
|
|
|
509 |
|
|
|
1,575 |
|
|
Impairment of right-of-use assets (3) |
|
2,452 |
|
|
|
— |
|
|
|
2,452 |
|
|
|
1,629 |
|
|
Restructuring charges, net (4) |
|
1,316 |
|
|
|
4,612 |
|
|
|
1,892 |
|
|
|
68,558 |
|
|
Tax effect on the adjusted items (5) |
|
(1,555 |
) |
|
|
(2,092 |
) |
|
|
(2,700 |
) |
|
|
(20,763 |
) |
|
Tax adjustment (6) |
|
— |
|
|
|
(9,714 |
) |
|
|
— |
|
|
|
(9,714 |
) |
|
Adjusted net income attributable to Korn Ferry |
$ |
63,263 |
|
|
$ |
55,776 |
|
|
$ |
191,070 |
|
|
$ |
158,307 |
|
|
Explanation of Non-GAAP Adjustments |
||
(1) |
Costs associated with current and previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses. |
|
(2) |
Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment. |
|
(3) |
Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices. |
|
(4) |
Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment. |
|
(5) |
Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, and restructuring charges, net. |
|
(6) |
Due to actions taken in connection with the worldwide minimum tax, the Company recorded a |
|
KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended January 31, |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per common share |
$ |
1.12 |
|
|
$ |
1.14 |
|
|
$ |
3.46 |
|
|
$ |
2.00 |
|
|
Integration/acquisition costs (1) |
|
0.04 |
|
|
|
0.07 |
|
|
|
0.14 |
|
|
|
0.25 |
|
|
Impairment of fixed assets (2) |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
Impairment of right-of-use assets (3) |
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
0.03 |
|
|
Restructuring charges, net (4) |
|
0.02 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
1.32 |
|
|
Tax effect on the adjusted items (5) |
|
(0.03 |
) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.40 |
) |
|
Tax adjustment (6) |
|
— |
|
|
|
(0.19 |
) |
|
|
— |
|
|
|
(0.19 |
) |
|
Adjusted basic earnings per share |
$ |
1.21 |
|
|
$ |
1.07 |
|
|
$ |
3.64 |
|
|
$ |
3.04 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted earnings per common share |
$ |
1.10 |
|
|
$ |
1.13 |
|
|
$ |
3.40 |
|
|
$ |
1.99 |
|
|
Integration/acquisition costs (1) |
|
0.04 |
|
|
|
0.07 |
|
|
|
0.13 |
|
|
|
0.25 |
|
|
Impairment of fixed assets (2) |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
Impairment of right-of-use assets (3) |
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
0.03 |
|
|
Restructuring charges, net (4) |
|
0.02 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
1.32 |
|
|
Tax effect on the adjusted items (5) |
|
(0.03 |
) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.40 |
) |
|
Tax adjustment (6) |
|
— |
|
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.19 |
) |
|
Adjusted diluted earnings per share |
$ |
1.19 |
|
$ |
1.07 |
|
|
$ |
3.57 |
|
|
$ |
3.03 |
|
||
Explanation of Non-GAAP Adjustments |
||
(1) |
Costs associated with current and previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses. |
|
(2) |
Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment. |
|
(3) |
Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices. |
|
(4) |
Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment. |
|
(5) |
Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, and restructuring charges, net. |
|
(6) |
Due to actions taken in connection with the worldwide minimum tax, the Company recorded a |
|
KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (dollars in thousands) (unaudited) |
|||||||||||||||||||||||||
|
Three Months Ended January 31, |
||||||||||||||||||||||||
|
2025 |
|
2024 |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
Net income attributable to Korn Ferry |
|
Net income attributable to Korn Ferry margin |
|
|
|
|
|
Net income attributable to Korn Ferry |
|
Net income attributable to Korn Ferry margin |
||||||||||
Consolidated |
|
|
|
|
$ |
58,414 |
|
|
8.7 |
% |
|
|
|
|
|
$ |
59,071 |
|
|
8.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fee revenue |
|
Total revenue |
|
Adjusted EBITDA |
|
Adjusted EBITDA margin |
|
Fee revenue |
|
Total revenue |
|
Adjusted EBITDA |
|
Adjusted EBITDA margin |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consulting |
$ |
158,704 |
|
$ |
161,382 |
|
$ |
28,026 |
|
|
17.7 |
% |
|
$ |
166,947 |
|
$ |
169,929 |
|
$ |
27,812 |
|
|
16.7 |
% |
Digital |
|
90,823 |
|
|
90,836 |
|
|
28,408 |
|
|
31.3 |
% |
|
|
90,317 |
|
|
90,394 |
|
|
27,370 |
|
|
30.3 |
% |
Executive Search: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
128,264 |
|
|
129,889 |
|
|
37,175 |
|
|
29.0 |
% |
|
|
121,449 |
|
|
123,059 |
|
|
29,382 |
|
|
24.2 |
% |
EMEA |
|
47,840 |
|
|
48,087 |
|
|
7,845 |
|
|
16.4 |
% |
|
|
48,999 |
|
|
49,171 |
|
|
7,799 |
|
|
15.9 |
% |
|
|
21,664 |
|
|
21,794 |
|
|
4,504 |
|
|
20.8 |
% |
|
|
21,324 |
|
|
21,384 |
|
|
4,500 |
|
|
21.1 |
% |
|
|
6,803 |
|
|
6,807 |
|
|
1,696 |
|
|
24.9 |
% |
|
|
7,541 |
|
|
7,543 |
|
|
1,750 |
|
|
23.2 |
% |
Total Executive Search |
|
204,571 |
|
|
206,577 |
|
|
51,220 |
|
|
25.0 |
% |
|
|
199,313 |
|
|
201,157 |
|
|
43,431 |
|
|
21.8 |
% |
Professional Search & Interim |
|
129,957 |
|
|
130,854 |
|
|
27,265 |
|
|
21.0 |
% |
|
|
130,890 |
|
|
131,824 |
|
|
23,795 |
|
|
18.2 |
% |
RPO |
|
84,674 |
|
|
86,889 |
|
|
12,743 |
|
|
15.0 |
% |
|
|
81,212 |
|
|
83,569 |
|
|
9,291 |
|
|
11.4 |
% |
Corporate |
|
— |
|
|
— |
|
|
(33,173 |
) |
|
|
|
|
— |
|
|
— |
|
|
(29,995 |
) |
|
|
||
Consolidated |
$ |
668,729 |
|
$ |
676,538 |
|
$ |
114,489 |
|
|
17.1 |
% |
|
$ |
668,679 |
|
$ |
676,873 |
|
$ |
101,704 |
|
|
15.2 |
% |
|
Nine Months Ended January 31, |
||||||||||||||||||||||||
|
2025 |
|
2024 |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
Net income attributable to Korn Ferry |
|
Net income attributable to Korn Ferry margin |
|
|
|
|
|
Net income attributable to Korn Ferry |
|
Net income attributable to Korn Ferry margin |
||||||||||
Consolidated |
|
|
|
|
$ |
181,818 |
|
|
9.0 |
% |
|
|
|
|
|
$ |
103,965 |
|
|
5.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fee revenue |
|
Total revenue |
|
Adjusted EBITDA |
|
Adjusted EBITDA margin |
|
Fee revenue |
|
Total revenue |
|
Adjusted EBITDA |
|
Adjusted EBITDA margin |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consulting |
$ |
493,345 |
|
$ |
501,533 |
|
$ |
86,426 |
|
|
17.5 |
% |
|
$ |
512,830 |
|
$ |
521,675 |
|
$ |
81,920 |
|
|
16.0 |
% |
Digital |
|
271,896 |
|
|
272,085 |
|
|
84,219 |
|
|
31.0 |
% |
|
|
275,395 |
|
|
275,563 |
|
|
80,678 |
|
|
29.3 |
% |
Executive Search: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
392,907 |
|
|
397,395 |
|
|
109,180 |
|
|
27.8 |
% |
|
|
381,459 |
|
|
386,405 |
|
|
87,574 |
|
|
23.0 |
% |
EMEA |
|
140,609 |
|
|
141,495 |
|
|
22,597 |
|
|
16.1 |
% |
|
|
138,873 |
|
|
139,621 |
|
|
19,056 |
|
|
13.7 |
% |
|
|
63,707 |
|
|
64,038 |
|
|
13,154 |
|
|
20.6 |
% |
|
|
65,167 |
|
|
65,454 |
|
|
14,690 |
|
|
22.5 |
% |
|
|
21,982 |
|
|
21,992 |
|
|
7,046 |
|
|
32.1 |
% |
|
|
22,041 |
|
|
22,050 |
|
|
4,296 |
|
|
19.5 |
% |
Total Executive Search |
|
619,205 |
|
|
624,920 |
|
|
151,977 |
|
|
24.5 |
% |
|
|
607,540 |
|
|
613,530 |
|
|
125,616 |
|
|
20.7 |
% |
Professional Search & Interim |
|
372,805 |
|
|
375,572 |
|
|
80,174 |
|
|
21.5 |
% |
|
|
411,453 |
|
|
414,348 |
|
|
73,746 |
|
|
17.9 |
% |
RPO |
|
260,789 |
|
|
267,149 |
|
|
38,136 |
|
|
14.6 |
% |
|
|
264,653 |
|
|
270,466 |
|
|
28,617 |
|
|
10.8 |
% |
Corporate |
|
— |
|
|
— |
|
|
(98,207 |
) |
|
|
|
|
— |
|
|
— |
|
|
(94,673 |
) |
|
|
||
Consolidated |
$ |
2,018,040 |
|
$ |
2,041,259 |
|
$ |
342,725 |
|
|
17.0 |
% |
|
$ |
2,071,871 |
|
$ |
2,095,582 |
|
$ |
295,904 |
|
|
14.3 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250304442113/en/
Investor Relations: Tiffany Louder, (214) 310-8407
Media: Dan Gugler, (310) 226-2645
Source: Korn Ferry
FAQ
What was Korn Ferry's (KFY) Q3 FY'25 revenue and how did it compare to last year?
How much did Korn Ferry's (KFY) stock buyback program amount to in Q3 FY'25?
What is Korn Ferry's (KFY) revenue guidance for Q4 FY'25?
How did Korn Ferry's (KFY) RPO segment perform in Q3 FY'25?
What was Korn Ferry's (KFY) Adjusted EBITDA margin in Q3 FY'25?
