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Oct 31, 2024

Korn Ferry Q2 2025 Earnings Report

Korn Ferry's financial performance showcased resilience with stable Talent Acquisition revenues, improving Digital new business trends, and consistent Consulting performance.

Key Takeaways

Korn Ferry reported Q2 FY25 fee revenue of $674.4 million, a 4% year-over-year decrease but flat sequentially. Diluted EPS was $1.14, and adjusted diluted EPS was $1.21. The company achieved its sixth consecutive quarter of improved profitability, with an operating margin increase to 13.0% and adjusted EBITDA margin of 17.4%.

Fee revenue reached $674.4 million, a 4% decrease year-over-year but flat sequentially.

Operating income was $87.5 million, with operating margin increasing to 13.0%.

Net income attributable to Korn Ferry was $60.8 million, with diluted EPS at $1.14 and adjusted diluted EPS at $1.21.

Adjusted EBITDA was $117.0 million, representing a 17.4% margin.

Total Revenue
$682M
Previous year: $712M
-4.3%
EPS
$1.21
Previous year: $0.97
+24.7%
Executive Search Engagements Billed
3.57K
Previous year: 3.49K
+2.2%
Executive Search New Engagements
1.57K
Previous year: 1.48K
+5.9%
Digital Subscription License Revenue
$34.6M
Previous year: $32.4M
+6.8%
Gross Profit
$180M
Previous year: $625M
-71.2%
Cash and Equivalents
$736M
Previous year: $647M
+13.7%
Free Cash Flow
$108M
Previous year: $117M
-7.7%
Total Assets
$3.53B
Previous year: $3.36B
+4.9%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Forward Guidance

Korn Ferry anticipates Q3 FY25 fee revenue to be between $635 million and $665 million, with diluted earnings per share expected to range from $1.02 to $1.16, and adjusted diluted earnings per share between $1.06 and $1.18.

Positive Outlook

  • Q3 FY’25 fee revenue is expected to be in the range of $635 million and $665 million.
  • Q3 FY’25 diluted earnings per share is expected to range between $1.02 to $1.16.
  • Q3 FY’25 adjusted diluted earnings per share is expected to be in the range from $1.06 to $1.18.
  • Guidance assumes steady worldwide geopolitical, economic, and financial market conditions.
  • Guidance assumes steady foreign exchange rates.

Challenges Ahead

  • Guidance is contingent on worldwide geopolitical conditions remaining steady.
  • Guidance is contingent on economic conditions remaining steady.
  • Guidance is contingent on financial markets remaining steady.
  • Guidance is contingent on foreign exchange rates remaining steady.
  • Actual results may differ materially due to risks and uncertainties beyond the control of Korn Ferry.

Revenue & Expenses

Visualization of income flow from segment revenue to net income