8-K
KORN FERRY (KFY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________
FORM 8-K
_______________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 9, 2025
_______________________________________________________
KORN FERRY
(Exact name of registrant as specified in its charter)
_______________________________________________________
| Delaware | 001-14505 | 95-2623879 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission <br>File Number) | (IRS Employer<br>Identification No.) |
1900 Avenue of the Stars, Suite 1225
Los Angeles, California 90067
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (310) 552-1834
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
|---|---|---|
| Common Stock, par value $0.01 per share | KFY | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On September 9, 2025, Korn Ferry issued a press release announcing its first quarter fiscal year 2026 results. A copy of the press release is attached hereto as Exhibit 99.1. The information in this Item 2.02 and the exhibit hereto are furnished to, but not filed with, the Securities and Exchange Commission.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
| Exhibit 99.1 | Press Release, dated September 9, 2025. |
|---|---|
| Exhibit 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KORN FERRY | ||
|---|---|---|
| (Registrant) | ||
| Date: September 9, 2025 | /s/ Robert P. Rozek | |
| (Signature) | ||
| Name: | Robert P. Rozek | |
| Title: | Executive Vice President, Chief Financial Officer and<br>Chief Corporate Officer |
Document
Exhibit 99.1
| FOR IMMEDIATE RELEASE | Contacts: |
|---|---|
| Investor Relations: Tiffany Louder, (214) 310-8407 | |
| Media: Dan Gugler, (310) 226-2645 |
Korn Ferry Announces First Quarter Fiscal 2026
Results of Operations
Highlights
▪Korn Ferry reports Q1 FY'26 fee revenue of $708.6 million, an increase of 5% year-over-year at actual, and 4% at constant currency.
◦Fee revenue grew year-over-year in each Solution, led by Professional Search & Interim (10% actual) and Executive Search (8% actual).
▪Net income attributable to Korn Ferry was $66.6 million, an increase of 6% year-over-year, with a margin of 9.4%, an increase of 10bps year-over-year.
▪Adjusted EBITDA was $120.4 million, an increase of 8% year-over-year, with a margin of 17.0%, an increase of 50bps year-over-year.
▪Diluted and adjusted diluted earnings per share were $1.26 and $1.31 in Q1 FY'26, up 8% and 11% year-over-year, respectively.
▪The Company repurchased 145,770 shares of stock during the quarter for $9.9 million.
Los Angeles, CA, September 9, 2025 – Korn Ferry (NYSE: KFY), a global consulting firm, today announced first quarter fee revenue of $708.6 million. In addition, first quarter diluted earnings per share was $1.26 and adjusted diluted earnings per share was $1.31.
“I am pleased with our company’s performance. When looking at our results over the last few quarters—even amid all of the choppiness that has encircled the labor and economic environment—it’s clear that our strategy is working,” said Gary D. Burnison, CEO, Korn Ferry. “Today we are driving performance with a far more sophisticated, holistic approach that brings together our expertise, robust IP and relevant solutions in every major region of the world to solve our clients’ most pressing challenges. When one considers our diversification strategy and the demographic shifts alone, the opportunity for Korn Ferry is immense.”
Selected Financial Results
(dollars in millions, except per share amounts) (a)
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| FY’26 | FY’25 | |||||
| Fee revenue | $ | 708.6 | $ | 674.9 | ||
| Total revenue | $ | 715.5 | $ | 682.8 | ||
| Estimated remaining fees under existing contracts (b) | $ | 1,674.1 | $ | 1,532.6 | ||
| Net income attributable to Korn Ferry | $ | 66.6 | $ | 62.6 | ||
| Net income attributable to Korn Ferry margin | 9.4 | % | 9.3 | % | ||
| Basic earnings per share | $ | 1.28 | $ | 1.19 | ||
| Diluted earnings per share | $ | 1.26 | $ | 1.17 | ||
| Adjusted Results (c): | First Quarter | |||||
| FY’26 | FY’25 | |||||
| Adjusted EBITDA | $ | 120.4 | $ | 111.2 | ||
| Adjusted EBITDA margin | 17.0 | % | 16.5 | % | ||
| Adjusted net income attributable to Korn Ferry (d) | $ | 69.2 | $ | 63.1 | ||
| Adjusted basic earnings per share (d) | $ | 1.33 | $ | 1.20 | ||
| Adjusted diluted earnings per share (d) | $ | 1.31 | $ | 1.18 |
______________________
(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)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, restructuring charges, net and management separation charges when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):
| First Quarter | ||||
|---|---|---|---|---|
| FY’26 | FY’25 | |||
| Integration/acquisition costs | $ | 1.5 | $ | 1.1 |
(d)Excludes $2.0 million of accelerated depreciation associated with the decision to sunset our Digital platform once our Korn Ferry Talent Suite platform is introduced, which we expect in the third quarter of fiscal 2026. Amount is included in the Company's US GAAP results but excluded from the Adjusted results.
The Company reported fee revenue in Q1 FY'26 of $708.6 million, an increase of 5% year-over-year (up 4.0% at constant currency).
Net income attributable to Korn Ferry was $66.6 million with a margin of 9.4% in Q1 FY'26, compared to net income attributable to Korn Ferry of $62.6 million with a margin of 9.3%, in Q1 FY'25, an increase of 10bps compared to the year-ago quarter. Net income attributable to Korn Ferry increased from the year-ago quarter primarily due to an increase in fee revenue.
Adjusted EBITDA was $120.4 million in Q1 FY'26 compared to $111.2 million in Q1 FY'25. Adjusted EBITDA margin was 17.0% in Q1 FY'26, an increase of 50bps compared to the year-ago quarter, also primarily due to an increase in fee revenue.
Results by Solution
Selected Consulting Data
(dollars in millions) (a)
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| FY’26 | FY’25 | |||||
| Fee revenue | $ | 170.0 | $ | 167.9 | ||
| Total revenue | $ | 172.7 | $ | 170.8 | ||
| Estimated remaining fees under existing contracts (b) | $ | 372.3 | $ | 349.3 | ||
| Ending number of consultants and execution staff (c) | 1,550 | 1,663 | ||||
| Hours worked in thousands (d) | 367 | 395 | ||||
| Average bill rate (e) | $ | 463 | $ | 425 | ||
| Adjusted Results: | First Quarter | |||||
| FY’26 | FY’25 | |||||
| Adjusted EBITDA | $ | 28.8 | $ | 29.3 | ||
| Adjusted EBITDA margin | 17.0 | % | 17.5 | % |
______________________
(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)Represents number of employees originating, delivering and executing consulting services.
(d)The number of hours worked by consultant and execution staff during the period.
(e)The amount of fee revenue divided by the number of hours worked by consultants and execution staff.
Fee revenue was $170.0 million in Q1 FY'26 compared to $167.9 million in Q1 FY'25, an increase of $2.1 million or 1%. The year-over-year increase in Consulting fee revenue was primarily driven by a 9% increase in average bill rates, resulting from the continuing shift to larger and longer duration engagements, partially offset by slower client consumption of backlog engagements.
Adjusted EBITDA was $28.8 million in Q1 FY'26 compared to $29.3 million in the year-ago quarter. Adjusted EBITDA margin in the quarter decreased year-over-year by 50bps to 17.0%.
Selected Digital Data
(dollars in millions) (a)
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| FY’26 | FY’25 | |||||
| Fee revenue | $ | 89.2 | $ | 88.2 | ||
| Total revenue | $ | 89.2 | $ | 88.2 | ||
| Estimated remaining fees under existing contracts (b) | $ | 398.0 | $ | 372.1 | ||
| Ending number of consultants | 225 | 259 | ||||
| Subscription & License fee revenue | $ | 37.2 | $ | 34.1 | ||
| Adjusted Results: | First Quarter | |||||
| FY’26 | FY’25 | |||||
| Adjusted EBITDA | $ | 27.6 | $ | 26.6 | ||
| Adjusted EBITDA margin | 31.0 | % | 30.2 | % |
______________________
(a)Numbers may not total due to rounding.
(b)Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
Fee revenue was $89.2 million in Q1 FY'26 compared to $88.2 million in Q1 FY'25, up 1% year-over-year while down 1% at constant currency.
Adjusted EBITDA was $27.6 million in Q1 FY'26, compared to $26.6 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 80bps to 31.0%.
Selected Executive Search Data(a)
(dollars in millions) (b)
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| FY’26 | FY’25 | |||||
| Fee revenue | $ | 224.3 | $ | 208.6 | ||
| Total revenue | $ | 226.3 | $ | 210.4 | ||
| Estimated remaining fees under existing contracts (c) | $ | 66.6 | $ | 61.5 | ||
| Ending number of consultants | 574 | 559 | ||||
| Average number of consultants | 567 | 551 | ||||
| Engagements billed | 3,751 | 3,448 | ||||
| New engagements (d) | 1,596 | 1,556 | ||||
| Adjusted Results (e): | First Quarter | |||||
| FY’26 | FY’25 | |||||
| Adjusted EBITDA | $ | 57.5 | $ | 49.4 | ||
| Adjusted EBITDA margin | 25.6 | % | 23.7 | % |
______________________
(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 Solutions, and financial metrics used by the Company’s investor base.
(b)Numbers may not total due to rounding.
(c)Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(d)Represents new engagements opened in the respective period.
(e)Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures for which no adjustments have been made in the periods shown in this table.
Fee revenue was $224.3 million in Q1 FY'26 compared to $208.6 million in Q1 FY'25, an increase of $15.7 million or 8% (up 6% at constant currency). The year-over-year increase in fee revenue was primarily driven by an increase in the number of engagements billed. The Company experienced fee revenue growth in EMEA, North America and APAC regions.
Adjusted EBITDA was $57.5 million in Q1 FY'26 compared to $49.4 million in the year-ago quarter, an increase of 16% year-over-year. Adjusted EBITDA margin increased by 190bps to 25.6% in Q1 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin was due to higher fee revenue.
Selected Professional Search & Interim Data
(dollars in millions) (a)
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| FY’26 | FY’25 | |||||
| Fee revenue | $ | 133.9 | $ | 121.7 | ||
| Total revenue | $ | 135.1 | $ | 122.7 | ||
| Permanent Placement: | ||||||
| Fee revenue | $ | 54.7 | $ | 52.2 | ||
| Estimated remaining fees under existing contracts (b) | $ | 15.2 | $ | 14.2 | ||
| Engagements billed | 1,853 | 1,820 | ||||
| New engagements (c) | 963 | 972 | ||||
| Ending number of consultants | 299 | 319 | ||||
| Interim: | ||||||
| Fee revenue | $ | 79.2 | $ | 69.5 | ||
| Estimated remaining fees under existing contracts (b) | $ | 93.3 | $ | 79.4 | ||
| Average bill rate (d) | $ | 138 | $ | 133 | ||
| Average weekly billable consultants (e) | 1,219 | 1,068 | ||||
| Adjusted Results (f): | First Quarter | |||||
| FY’26 | FY’25 | |||||
| Adjusted EBITDA | $ | 28.0 | $ | 25.7 | ||
| Adjusted EBITDA margin | 20.9 | % | 21.1 | % |
_____________________
(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)Represents new engagements opened in the respective period.
(d)Fee revenue from interim divided by the number of hours worked by consultants.
(e)The number of billable consultants based on a weekly average in the respective period.
(f)Adjusted results exclude the following:
| First Quarter | ||||
|---|---|---|---|---|
| FY’26 | FY’25 | |||
| Integration/acquisition costs | $ | 1.5 | $ | 1.1 |
Fee revenue was $133.9 million in Q1 FY'26 compared to $121.7 million in Q1 FY'25, an increase of $12.2 million or 10% in both actual and constant currency. Fee revenue increased primarily due to higher fee revenue from Interim associated with the acquisition of Trilogy International effective November 1, 2024.
Adjusted EBITDA was $28.0 million in Q1 FY'26 compared to $25.7 million in the year-ago quarter. Adjusted EBITDA margin was 20.9%, essentially flat year-over-year.
Selected Recruitment Process Outsourcing ("RPO") Data
(dollars in millions) (a)
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| FY’26 | FY’25 | |||||
| Fee revenue | $ | 91.3 | $ | 88.5 | ||
| Total revenue | $ | 92.2 | $ | 90.7 | ||
| Estimated remaining fees under existing contracts (b) | $ | 728.8 | $ | 656.1 | ||
| RPO new business (c) | $ | 99.3 | $ | 103.6 | ||
| Adjusted Results: | First Quarter | |||||
| FY’26 | FY’25 | |||||
| Adjusted EBITDA | $ | 14.3 | $ | 12.5 | ||
| Adjusted EBITDA margin | 15.7 | % | 14.1 | % |
______________________
(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.
Fee revenue was $91.3 million in Q1 FY'26 compared to $88.5 million in Q1 FY'25, an increase of $2.8 million or 3% (up 1% at constant currency). RPO fee revenue increased primarily due to new logo clients in North America.
Adjusted EBITDA was $14.3 million in Q1 FY'26 compared to $12.5 million in the year-ago quarter. Adjusted EBITDA margin increased 160bps to 15.7% in Q1 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue.
Outlook
Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:
▪Q2 FY’26 fee revenue is expected to be in the range of $690 million and $710 million; and
▪Q2 FY’26 diluted earnings per share is expected to range between $1.10 to $1.16.
On a consolidated adjusted basis:
▪Q2 FY’26 adjusted diluted earnings per share is expected to be in the range from $1.23 to $1.33.
| Q2 FY’26<br>Earnings Per Share Outlook | ||||
|---|---|---|---|---|
| Low | High | |||
| Consolidated diluted earnings per share | $ | 1.10 | $ | 1.16 |
| Integration/acquisition costs and accelerated depreciation on Digital platform | 0.19 | 0.23 | ||
| Tax rate impact | (0.06) | (0.06) | ||
| Consolidated adjusted diluted earnings per share(1) | $ | 1.23 | $ | 1.33 |
______________________
(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 consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That’s why the world’s most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than.
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 impacts of sunsetting our Digital platform, expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, impact of global events on our business, 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, 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 U.S. Generally Accepted Accounting Principles (“GAAP”). In particular, it includes:
•Adjusted net income attributable to Korn Ferry, adjusted to exclude integration/acquisition costs and cost associated with accelerated depreciation on our Digital platform, net of income tax effect;
•Adjusted basic and diluted earnings per share, adjusted to exclude integration/acquisition costs and cost associated with accelerated depreciation on our Digital platform, net of income tax effect;
•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 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 and 2) accelerated depreciation associated with the decision to sunset our Digital platform after introducing our Korn Ferry Talent Suite platform, which is expected in the third quarter of fiscal 2026. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated and Executive Search Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company’s operating results. Management further believes that Consolidated and Executive Search Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making.
[Tables attached]
KORN FERRY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
| Three Months Ended<br> July 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| (unaudited) | ||||
| Fee revenue | $ | 708,613 | $ | 674,946 |
| Reimbursed out-of-pocket engagement expenses | 6,930 | 7,815 | ||
| Total revenue | 715,543 | 682,761 | ||
| Compensation and benefits | 461,411 | 451,775 | ||
| General and administrative expenses | 63,874 | 59,999 | ||
| Reimbursed expenses | 6,930 | 7,815 | ||
| Cost of services | 77,194 | 67,544 | ||
| Depreciation and amortization | 22,686 | 19,578 | ||
| Total operating expenses | 632,095 | 606,711 | ||
| Operating income | 83,448 | 76,050 | ||
| Other income, net | 12,752 | 14,505 | ||
| Interest expense, net | (3,516) | (3,945) | ||
| Income before provision for income taxes | 92,684 | 86,610 | ||
| Income tax provision | 25,250 | 22,354 | ||
| Net income | 67,434 | 64,256 | ||
| Net income attributable to noncontrolling interest | (798) | (1,652) | ||
| Net income attributable to Korn Ferry | $ | 66,636 | $ | 62,604 |
| Earnings per common share attributable to Korn Ferry: | ||||
| Basic | $ | 1.28 | $ | 1.19 |
| Diluted | $ | 1.26 | $ | 1.17 |
| Weighted-average common shares outstanding: | ||||
| Basic | 51,466 | 51,950 | ||
| Diluted | 52,368 | 52,745 |
KORN FERRY AND SUBSIDIARIES
FINANCIAL SUMMARY BY REPORTING SEGMENT
(dollars in thousands)
(unaudited)
| Three Months Ended July 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | % Change | ||||
| Fee revenue: | ||||||
| Consulting | $ | 169,962 | $ | 167,870 | 1.2 | % |
| Digital | 89,198 | 88,180 | 1.2 | % | ||
| Executive Search: | ||||||
| North America | 139,654 | 134,752 | 3.6 | % | ||
| EMEA | 53,781 | 45,981 | 17.0 | % | ||
| Asia Pacific | 24,701 | 20,579 | 20.0 | % | ||
| Latin America | 6,117 | 7,323 | (16.5 | %) | ||
| Total Executive Search (a) | 224,253 | 208,635 | 7.5 | % | ||
| Professional Search & Interim | 133,901 | 121,741 | 10.0 | % | ||
| RPO | 91,299 | 88,520 | 3.1 | % | ||
| Total fee revenue | 708,613 | 674,946 | 5.0 | % | ||
| Reimbursed out-of-pocket engagement expenses | 6,930 | 7,815 | (11.3 | %) | ||
| Total revenue | $ | 715,543 | $ | 682,761 | 4.8 | % |
(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 Solutions, and financial metrics used by the Company’s investor base.
KORN FERRY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
| July 31,<br>2025 | April 30,<br><br>2025 (1) | |||
|---|---|---|---|---|
| (unaudited) | ||||
| ASSETS | ||||
| Cash and cash equivalents | $ | 684,855 | $ | 1,006,964 |
| Marketable securities | 36,277 | 36,388 | ||
| Receivables due from clients, net of allowance for doubtful accounts of $41,497 and $40,461 at July 31, 2025 and April 30, 2025, respectively | 600,362 | 565,255 | ||
| Income taxes and other receivables | 47,062 | 38,394 | ||
| Unearned compensation | 64,033 | 61,649 | ||
| Prepaid expenses and other assets | 58,313 | 41,488 | ||
| Total current assets | 1,490,902 | 1,750,138 | ||
| Marketable securities, non-current | 242,162 | 233,626 | ||
| Property and equipment, net | 179,491 | 173,610 | ||
| Operating lease right-of-use assets, net | 143,262 | 152,712 | ||
| Cash surrender value of company-owned life insurance policies, net of loans | 268,556 | 252,621 | ||
| Deferred income taxes | 139,212 | 144,560 | ||
| Goodwill | 948,659 | 948,832 | ||
| Intangible assets, net | 64,043 | 70,193 | ||
| Unearned compensation, non-current | 124,817 | 106,965 | ||
| Investments and other assets | 29,493 | 27,967 | ||
| Total assets | $ | 3,630,597 | $ | 3,861,224 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Accounts payable | $ | 55,058 | $ | 58,884 |
| Income taxes payable | 23,585 | 23,079 | ||
| Compensation and benefits payable | 266,671 | 530,473 | ||
| Operating lease liability, current | 36,318 | 38,573 | ||
| Other accrued liabilities | 292,768 | 304,589 | ||
| Total current liabilities | 674,400 | 955,598 | ||
| Deferred compensation and other retirement plans | 504,867 | 477,770 | ||
| Operating lease liability, non-current | 126,429 | 131,762 | ||
| Long-term debt | 397,939 | 397,736 | ||
| Deferred tax liabilities | 6,737 | 5,981 | ||
| Other liabilities | 21,412 | 20,238 | ||
| Total liabilities | 1,731,784 | 1,989,085 | ||
| Stockholders' equity | ||||
| Common stock: $0.01 par value, 150,000 shares authorized, 79,124 and 78,264 shares issued and 51,770 and 51,458 shares outstanding at July 31, 2025 and April 30, 2025, respectively | 351,238 | 364,425 | ||
| Retained earnings | 1,628,701 | 1,588,274 | ||
| Accumulated other comprehensive loss, net | (87,851) | (86,243) | ||
| Total Korn Ferry stockholders' equity | 1,892,088 | 1,866,456 | ||
| Noncontrolling interest | 6,725 | 5,683 | ||
| Total stockholders' equity | 1,898,813 | 1,872,139 | ||
| Total liabilities and stockholders' equity | $ | 3,630,597 | $ | 3,861,224 |
(1) information is derived from audited financial statements included in our most recently filed Form 10-K.
KORN FERRY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(dollars in thousands)
(unaudited)
| Three Months Ended<br> July 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Net income attributable to Korn Ferry | $ | 66,636 | $ | 62,604 | ||
| Net income attributable to non-controlling interest | 798 | 1,652 | ||||
| Net income | 67,434 | 64,256 | ||||
| Income tax provision | 25,250 | 22,354 | ||||
| Income before provision for income taxes | 92,684 | 86,610 | ||||
| Interest expense, net | 3,516 | 3,945 | ||||
| Depreciation and amortization | 22,686 | 19,578 | ||||
| Integration/acquisition costs (1) | 1,508 | 1,076 | ||||
| Adjusted EBITDA | $ | 120,394 | $ | 111,209 | ||
| Net income attributable to Korn Ferry margin | 9.4 | % | 9.3 | % | ||
| Net income attributable to non-controlling interest | 0.1 | % | 0.2 | % | ||
| Income tax provision | 3.6 | % | 3.3 | % | ||
| Interest expense, net | 0.5 | % | 0.6 | % | ||
| Depreciation and amortization | 3.2 | % | 2.9 | % | ||
| Integration/acquisition costs (1) | 0.2 | % | 0.2 | % | ||
| Adjusted EBITDA margin | 17.0 | % | 16.5 | % | ||
| Net income attributable to Korn Ferry | $ | 66,636 | $ | 62,604 | ||
| Integration/acquisition costs (1) | 1,508 | 1,076 | ||||
| Accelerated depreciation on Digital platform (2) | 1,977 | — | ||||
| Tax effect on the adjusted items (3) | (883) | (560) | ||||
| Adjusted net income attributable to Korn Ferry | $ | 69,238 | $ | 63,120 | ||
| Basic earnings per common share | $ | 1.28 | $ | 1.19 | ||
| Integration/acquisition costs (1) | 0.03 | 0.02 | ||||
| Accelerated depreciation on Digital platform (2) | 0.04 | — | ||||
| Tax effect on the adjusted items (3) | (0.02) | (0.01) | ||||
| Adjusted basic earnings per share | $ | 1.33 | $ | 1.20 | ||
| Diluted earnings per common share | $ | 1.26 | $ | 1.17 | ||
| Integration/acquisition costs (1) | 0.03 | 0.02 | ||||
| Accelerated depreciation on Digital platform (2) | 0.04 | — | ||||
| Tax effect on the adjusted items (3) | (0.02) | (0.01) | ||||
| Adjusted diluted earnings per share | $ | 1.31 | $ | 1.18 |
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 accelerated depreciation associated with the decision to sunset our Digital platform upon the introduction of our Korn Ferry Talent Suite platform, which is expected in the third quarter of fiscal 2026.
(3)Tax effect on integration/acquisition costs and accelerated depreciation on Digital platform.
KORN FERRY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED
(dollars in thousands)
(unaudited)
| Three Months Ended July 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||||||||||||
| Net income attributable to<br><br>Korn Ferry | Net income attributable to<br><br>Korn Ferry margin | Net income attributable to<br><br>Korn Ferry | Net income attributable to<br><br>Korn Ferry margin | |||||||||||||
| Consolidated | $ | 66,636 | 9.4 | % | $ | 62,604 | 9.3 | % | ||||||||
| Fee revenue | Total revenue | Adjusted EBITDA | Adjusted EBITDA margin | Fee revenue | Total revenue | Adjusted EBITDA | Adjusted EBITDA margin | |||||||||
| Consulting | $ | 169,962 | $ | 172,699 | $ | 28,809 | 17.0 | % | $ | 167,870 | $ | 170,767 | $ | 29,294 | 17.5 | % |
| Digital | 89,198 | 89,245 | 27,607 | 31.0 | % | 88,180 | 88,211 | 26,623 | 30.2 | % | ||||||
| Executive Search: | ||||||||||||||||
| North America | 139,654 | 141,215 | 41,240 | 29.5 | % | 134,752 | 136,087 | 35,098 | 26.0 | % | ||||||
| EMEA | 53,781 | 54,081 | 9,143 | 17.0 | % | 45,981 | 46,276 | 7,265 | 15.8 | % | ||||||
| Asia Pacific | 24,701 | 24,839 | 5,535 | 22.4 | % | 20,579 | 20,704 | 4,218 | 20.5 | % | ||||||
| Latin America | 6,117 | 6,139 | 1,540 | 25.2 | % | 7,323 | 7,326 | 2,798 | 38.2 | % | ||||||
| Total Executive Search | 224,253 | 226,274 | 57,458 | 25.6 | % | 208,635 | 210,393 | 49,379 | 23.7 | % | ||||||
| Professional Search & Interim | 133,901 | 135,141 | 28,027 | 20.9 | % | 121,741 | 122,730 | 25,706 | 21.1 | % | ||||||
| RPO | 91,299 | 92,184 | 14,342 | 15.7 | % | 88,520 | 90,660 | 12,494 | 14.1 | % | ||||||
| Corporate | — | — | (35,849) | — | — | (32,287) | ||||||||||
| Consolidated | $ | 708,613 | $ | 715,543 | $ | 120,394 | 17.0 | % | $ | 674,946 | $ | 682,761 | $ | 111,209 | 16.5 | % |