KFY 10-Q

Korn Ferry (KFY)

10-Q 2026-09-09 For: 2026-07-31

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Added on September 09, 2026

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Delaware						95-2623879
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


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


			Large accelerated filer ☑			Accelerated filer o

			Non-accelerated filer o			Smaller reporting company o
						Emerging growth company o


Item #	Description	Page

	Part I. Financial Information

Item 1.	Condensed Consolidated Financial Statements

	Condensed Consolidated Balance Sheets as of July 31, 2026 (unaudited) and April 30, 2026	1

	Condensed Consolidated Statements of Income (unaudited) for the three months ended July 31, 2026 and 2025	2

	Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three months ended July 31, 2026 and 2025	3

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for three months ended July 31, 2026 and 2025	4

	Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended July 31, 2026 and 2025	5

	Notes to Condensed Consolidated Unaudited Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	32

	Part II. Other Information

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 5.	Other Information	33

Item 6.	Exhibits	34

	Signatures	35


	July 31, 2026		April 30, 2026
	(unaudited)
	(in thousands, except per share data)
ASSETS
Cash and cash equivalents	$	800,852	$	1,095,445
Marketable securities	15,439		38,914
Receivables due from clients, net of allowance for doubtful accounts of $44,591 and $42,527 at July 31, 2026 and April 30, 2026, respectively	615,274		573,350
Income taxes and other receivables	68,265		75,410
Unearned compensation	67,215		64,421
Prepaid expenses and other assets	71,923		58,437
Total current assets	1,638,968		1,905,977

Marketable securities, non-current	234,778		247,132
Property and equipment, net	193,676		191,531
Operating lease right-of-use assets, net	170,191		170,986
Cash surrender value of company-owned life insurance policies, net of loans	304,906		289,058
Deferred income taxes	118,383		113,207
Goodwill	945,837		950,636
Intangible assets, net	39,754		45,858
Unearned compensation, non-current	140,457		118,592
Investments and other assets	29,926		31,799
Total assets	$	3,816,876	$	4,064,776
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	50,316	$	49,682
Income taxes payable	18,718		19,573
Compensation and benefits payable	299,408		570,242
Operating lease liability, current	30,621		28,111
Other accrued liabilities	292,154		314,402
Total current liabilities	691,217		982,010

Deferred compensation and other retirement plans	531,991		510,774
Operating lease liability, non-current	163,701		164,899
Long-term debt	398,778		398,565
Deferred tax liabilities	6,607		5,723
Other liabilities	23,305		23,902
Total liabilities	1,815,599		2,085,873

Stockholders' equity
Common stock: $0.01 par value, 150,000 shares authorized, 80,165 and 79,203 shares issued and 50,790 and 50,225 shares outstanding at July 31, 2026 and April 30, 2026, respectively	276,212		284,370
Retained earnings	1,799,808		1,761,063
Accumulated other comprehensive loss, net	(81,633)		(72,827)
Total Korn Ferry stockholders' equity	1,994,387		1,972,606
Noncontrolling interest	6,890		6,297
Total stockholders' equity	2,001,277		1,978,903
Total liabilities and stockholders' equity	$	3,816,876	$	4,064,776


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


o						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended July 31,
	2026		2025

	(in thousands, except per share data)
Fee revenue	$	756,496	$	708,613
Reimbursed out-of-pocket engagement expenses	8,126		6,930
Total revenue	764,622		715,543

Compensation and benefits	477,362		461,411
General and administrative expenses	80,231		63,874
Reimbursed expenses	8,126		6,930
Cost of services	83,328		77,194
Depreciation and amortization	22,195		22,686

Total operating expenses	671,242		632,095

Operating income	93,380		83,448
Other income, net	5,107		12,752
Interest expense, net	(4,342)		(3,516)
Income before provision for income taxes	94,145		92,684
Income tax provision	24,648		25,250
Net income	69,497		67,434
Net income attributable to noncontrolling interest	(530)		(798)
Net income attributable to Korn Ferry	$	68,967	$	66,636

Earnings per common share attributable to Korn Ferry:
Basic	$	1.35	$	1.28
Diluted	$	1.32	$	1.26

Weighted-average common shares outstanding:
Basic	50,351		51,466
Diluted	51,347		52,368


	Common Stock			Retained Earnings		Accumulated Other Comprehensive Loss, Net		Total Korn Ferry Stockholders' Equity		Noncontrolling Interest		Total Stockholder's Equity
	Shares	Amount

	(in thousands)
Balance as of April 30, 2026	50,225	$	284,370	$	1,761,063	$	(72,827)	$	1,972,606	$	6,297	$	1,978,903
Net income	—	—		68,967		—		68,967		530		69,497
Other comprehensive (loss) income	—	—		—		(8,806)		(8,806)		63		(8,743)
Dividends paid to stockholders	—	—		(30,222)		—		(30,222)		—		(30,222)
Purchase of stock	(330)	(24,912)		—		—		(24,912)		—		(24,912)
Issuance of stock	895	4,516		—		—		4,516		—		4,516
Stock-based compensation	—	12,238		—		—		12,238		—		12,238
Balance as of July 31, 2026	50,790	$	276,212	$	1,799,808	$	(81,633)	$	1,994,387	$	6,890	$	2,001,277


	Foreign Currency Translation		Deferred Compensation and Pension Plan		Unrealized Losses on Marketable Securities		Accumulated Other Comprehensive Loss

	(in thousands)
Balance as of April 30, 2026	$	(81,518)	$	8,721	$	(30)	$	(72,827)
Unrealized losses arising during the period	(8,918)		—		(34)		(8,952)
Reclassification of realized net losses to net income	—		82		64		146
Balance as of July 31, 2026	$	(90,436)	$	8,803	$	—	$	(81,633)


	Foreign Currency Translation		Deferred Compensation and Pension Plan		Unrealized Gains (Losses) on Marketable Securities		Accumulated Other Comprehensive Loss

	(in thousands)
Balance as of April 30, 2025	$	(93,904)	$	7,604	$	57	$	(86,243)
Unrealized losses arising during the period	(1,536)		—		(58)		(1,594)
Reclassification of realized net gains to net income	—		(14)		—		(14)
Balance as of July 31, 2025	$	(95,440)	$	7,590	$	(1)	$	(87,851)


	Shares	Weighted- Average Grant Date Fair Value

	(in thousands, except per share data)
Non-vested, April 30, 2026	1,884	$	70.56
Granted	921	$	67.63
Vested	(827)	$	48.87
Forfeited/expired	(27)	$	66.74
Non-vested, July 31, 2026	1,951	$	78.43


	July 31, 2026
	Fair Value Measurement			Balance Sheet Classification
		Fair Value		Cash and Cash Equivalents		Marketable Securities, Current		Marketable Securities, Non- current		Income Taxes & Other Receivables

	(in thousands)








Changes in Fair Value Recorded in
Net Income
Level 1:
Mutual funds (1)		$	250,217	$	—	$	15,439	$	234,778	$	—
Total equity investments		$	250,217	$	—	$	15,439	$	234,778	$	—
Cash		$	653,307	$	653,307	$	—	$	—	$	—
Money market funds		147,545		147,545		—		—		—
Level 2:
Foreign currency forward contracts		448		—		—		—		448
Total		$	1,051,517	$	800,852	$	15,439	$	234,778	$	448


	April 30, 2026
	Fair Value Measurement								Balance Sheet Classification
	Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities, Current		Marketable Securities, Non-current		Income Taxes & Other Receivables

	(in thousands)
Changes in Fair Value Recorded in
Other Comprehensive Income
Level 2:
Commercial paper	$	1,508	$	—	$	(2)	$	1,506	$	—	$	1,506	$	—	$	—
Corporate notes/bonds	40,473		18		(59)		40,432		—		23,457		16,975		—
U.S. Treasury and Agency Securities	501		1		—		502		—		502		—		—
Total debt investments	$	42,482	$	19	$	(61)	$	42,440	$	—	$	25,465	$	16,975	$	—

Changes in Fair Value Recorded in
Net Income
Level 1:
Mutual funds (1)							$	243,606	$	—	$	13,449	$	230,157	$	—
Total equity investments							$	243,606	$	—	$	13,449	$	230,157	$	—
Cash							$	783,125	$	783,125	$	—	$	—	$	—
Money market funds							312,320		312,320		—		—		—
Level 2:
Foreign currency forward contracts							283		—		—		—		283
Total							$	1,381,774	$	1,095,445	$	38,914	$	247,132	$	283


(1)			These investments are held in trust for settlement of the Company’s vested obligations of $235.2 million and $222.1 million as of July 31, 2026 and April 30, 2026, respectively, under the ECAP (see Note 6 — Deferred Compensation and Retirement Plans). Unvested obligations under the deferred compensation plans totaled $18.6 million and $18.9 million as of July 31, 2026 and April 30, 2026, respectively. During the three months ended July 31, 2026 and 2025, the fair value of the investments increased; therefore, the Company recognized a gain of $4.8 million and $12.3 million, respectively, which was recorded in other income, net.


	Three Months Ended July 31,
	2026		2025

	(in thousands)
Service cost	$	12,054	$	11,673
Interest cost	4,060		3,884
Amortization of actuarial loss	136		127
Expected return on plan assets (1)	(285)		(278)
Net periodic service credit amortization	(77)		(101)
Net periodic benefit costs (2)	$	15,888	$	15,305


(1)			The expected long-term rate of return on plan assets was 6.25% for both July 31, 2026 and 2025.


	Three months ended July 31,
	2026				2025
	Dollars		%		Dollars		%
	(dollars in thousands)
AMERICAS
Search	$	209,325	27.7	%	$	183,723	25.9	%
Talent & Organizational Solutions	106,853		14.1		110,061		15.5
Workforce Solutions	125,951		16.6		110,351		15.6
Total Americas	442,129		58.4		404,135		57.0
EMEA
Search	66,836		8.8		65,499		9.2
Talent & Organizational Solutions	115,366		15.3		111,415		15.7
Workforce Solutions	45,468		6.0		42,041		5.9
Total EMEA	227,670		30.1		218,955		30.9
APAC
Search	31,737		4.2		29,702		4.2
Talent & Organizational Solutions	37,001		4.9		37,684		5.3
Workforce Solutions	17,959		2.4		18,137		2.6
Total APAC	86,697		11.5		85,523		12.1
Total fee revenue	$	756,496	100.0	%	$	708,613	100.0	%


	(in thousands)
Balance at April 30, 2026	$	42,527
Provision for credit losses	5,155
Write-offs	(3,479)
Recoveries of amounts previously written off	427
Foreign currency translation	(39)
Balance at July 31, 2026	$	44,591


(2)			The service cost, interest cost and the other components of net periodic benefit costs are included in compensation and benefits expense, interest expense, net and other income, net, respectively, on the condensed consolidated statements of income.


	Less Than 12 Months				12 Months or longer				Balance Sheet Classification
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Cash and Cash Equivalent		Marketable Securities, Current		Marketable Securities, Non- Current

	(in thousands)




Balance at April 30, 2026
Commercial paper	$	1,506	$	2	$	—	$	—	$	—	$	1,506	$	—
Corporate notes/bonds	$	23,927	$	58	$	498	$	1	$	—	$	8,346	$	16,079


	Three Months Ended July 31, 2026
	Americas		EMEA		APAC		Corporate		Consolidated
	(in thousands)
Fee revenue	$	442,129	$	227,670	$	86,697	$	—	$	756,496
Total revenue	$	447,550	$	229,580	$	87,492	$	—	$	764,622

Less significant segment expenses
Compensation and benefits(1)	$	258,302	$	143,120	$	54,148	$	21,792
General and administrative expenses(2)	19,798		18,350		11,200		23,329
Cost of services	51,921		29,066		2,341		—
Other segment items(3)	1,110		1,764		584		(439)
Segment Adjusted EBITDA	116,419		37,280		19,219		(44,682)		128,236

Reconciliation of Segment Adjusted EBITDA
Depreciation and amortization									22,195
Interest expense, net									4,342
Integration/acquisition costs									7,554
Income tax provision									24,648
Net income attributable to noncontrolling interest									530
Net income attributable to Korn Ferry									$	68,967


	Three Months Ended July 31, 2025
	Americas		EMEA		APAC		Corporate		Consolidated
	(in thousands)
Fee revenue	$	404,135	$	218,955	$	85,523	$	—	$	708,613
Total revenue	$	408,462	$	220,875	$	86,206	$	—	$	715,543

Less significant segment expenses
Compensation and benefits(1)	$	247,771	$	139,510	$	52,856	$	19,766
General and administrative expenses(2)	19,548		17,579		9,800		16,947
Cost of services	47,411		26,284		3,499		—
Other segment items(3)	(7,015)		1,775		282		(864)
Segment Adjusted EBITDA	100,747		35,727		19,769		(35,849)		120,394

Reconciliation of Segment Adjusted EBITDA
Depreciation and amortization									22,686
Interest expense, net									3,516
Integration/acquisition costs									1,508
Income tax provision									25,250
Net income attributable to noncontrolling interest									798
Net income attributable to Korn Ferry									$	66,636


In thousands	July 31, 2026		April 30, 2026

Senior Unsecured Notes	$	400,000	$	400,000
Less: Unamortized discount and issuance costs	(1,222)		(1,435)
Long-term borrowings, net of unamortized discount and debt issuance costs	$	398,778	$	398,565


Year Ending April 30,	Operating		Financing

	(in thousands)
2027 (excluding the three months ended July 31, 2026)	$	30,388	$	1,675
2028	40,096		1,967
2029	33,708		889
2030	26,275		396
2031	22,088		60
Thereafter	93,437		—
Total lease payments	245,992		4,987
Less: imputed interest	51,670		317
Total	$	194,322	$	4,670


	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly- Announced Programs	Approximate Dollar Value of Shares That May Yet be Purchased Under the Programs (2)
May 1, 2026— May 31, 2026	—	$	—	—	$227.7 million
June 1, 2026— June 30, 2026	1,471	$	71.99	—	$227.7 million
July 1, 2026— July 31, 2026	329,043	$	75.39	—	$227.7 million
Total	330,514	$	75.37	—


Exhibit Number						Description
2.1*#						Sale and Purchase Agreement, dated as of June 27, 2026, relating to the sale of all the shares in Auxey Holdco Limited, by and between, Auxey Holdings (Lux) S.A.S., OMERS Administration Corporation, AMS Cayco Ltd, the management share sellers identified in Part 2 of Schedule 1 thereto, the management beneficial interest sellers identified in Part 3 of Schedule 1 thereto, Ocorian Limited, acting in its capacity as trustee of the Auxey Equity Plan Employee Trust and nominee on behalf of the management beneficial interest sellers, and Korn Ferry, filed as Exhibit 2.1 to the Company’s Report on Form 8-K, filed on June 29, 2026.
2.2*						Management Warranty Deed, dated as of June 27, 2026, by and between the persons set out in Schedule 1 thereto and Korn Ferry, filed as Exhibit 2.2 to the Company’s Report on Form 8-K, filed on June 29, 2026.
2.3*						Deed of Amendment, dated as of July 29, 2026, by and between Auxey Holdings (Lux) S.A.S., OMERS Administration Corporation, AMS Cayco Ltd., Rosaleen Blair, Ocorian Limited, acting in its capacity as trustee of the Auxey Equity Plan Employee Trust and nominee on behalf of the Management Beneficial Interest Sellers, and Korn Ferry, filed as Exhibit 2.1 to the Company’s Report on Form 8-K, filed August 3, 2026.
3.1*						Restated Certificate of Incorporation of the Company, dated June 10, 2026, filed as Exhibit 3.1 to the Company's Annual Report on Form 10-K, filed June 2 6, 2026.
3.2*						Eighth Amended and Restated Bylaws, effective May 26, 2023, filed as Exhibit 3.1 to the Company’s Report on Form 8-K, filed May 30, 2023.
31.1						Chief Executive Officer Certification pursuant to Rule 13a-14(a) under the Exchange Act.
31.2						Chief Financial Officer Certification pursuant to Rule 13a-14(a) under the Exchange Act.
32.1						Chief Executive Officer and Chief Financial Officer Certification pursuant to 18 U.S.C. Section 1350.
101.INS						Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document.
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104						The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2026, has been formatted in Inline XBRL and included as Exhibit 101.


	Korn Ferry
Date: September 9, 2026
	By:	/s/ Robert P. Rozek
		Robert P. Rozek
		Executive Vice President, Chief Financial Officer and Chief Corporate Officer (Duly Authorized Officer, Principal Financial Officer and Principal Accounting Officer)