Korn Ferry Q2 2025 Earnings Report
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.
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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