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Jan 31

Korn Ferry Q3 2025 Earnings Report

Korn Ferry maintained stable revenue in Q3 FY25 with growth in certain segments.

Key Takeaways

Korn Ferry reported fee revenue of $668.7 million in Q3 FY25, flat year-over-year but up 2% on a constant currency basis. Net income stood at $58.4 million, with diluted EPS of $1.10 and adjusted diluted EPS of $1.19. Executive Search and RPO segments saw revenue growth, while Consulting declined. Adjusted EBITDA increased 12.5% to $114.5 million, driven by cost management and improved consultant productivity.

Total revenue remained flat at $668.7 million, with a 2% constant currency increase.

Net income declined slightly to $58.4 million, reflecting higher tax provisions.

Executive Search and RPO segments experienced growth, while Consulting saw a decline.

Adjusted EBITDA grew 12.5% to $114.5 million, driven by cost discipline.

Total Revenue
$669M
Previous year: $677M
-1.2%
EPS
$1.19
Previous year: $1.07
+11.2%
Executive Search Engagements Billed
3.54K
Previous year: 3.47K
+2.0%
Executive Search New Engagements
1.46K
Previous year: 1.43K
+2.7%
Digital Subscription License Revenue
$34.5M
Previous year: $32.8M
+5.2%
Cash and Equivalents
$779M
Previous year: $783M
-0.4%

Korn Ferry

Korn Ferry

Korn Ferry Revenue by Segment

Korn Ferry Revenue by Geographic Location

Forward Guidance

Korn Ferry anticipates continued stable performance with slight revenue growth in Q4 FY25.

Positive Outlook

  • Q4 FY25 fee revenue expected between $680M and $700M.
  • Q4 diluted EPS projected between $1.20 and $1.28.
  • Adjusted diluted EPS forecasted between $1.22 and $1.30.
  • Continued growth expected in Executive Search and RPO segments.
  • Cost management efforts expected to support profitability.

Challenges Ahead

  • Consulting segment expected to remain under pressure.
  • Macroeconomic uncertainty may impact corporate hiring trends.
  • Potential foreign exchange fluctuations could affect revenue growth.
  • Competitive market conditions may slow new client acquisitions.
  • Ongoing tax provisions may impact net income growth.