Highlights

Fee revenue in Q3 FY'25 was $668.7 million, flat year over year (2% increase on a constant currency basis).
RPO fee revenue increased 4% year over year and new business in Q3 FY'25 was $210 million, of which 64% and 36% was from new client wins and renewals/extensions, respectively.
Net income attributable to Korn Ferry was $58.4 million with a net income attributable to Korn Ferry margin of 8.7%, a 10bps decrease compared to the year-ago quarter. Adjusted EBITDA was $114.5 million with an Adjusted EBITDA margin of 17.1%, a 190bps increase compared to the year-ago quarter.
Diluted and adjusted diluted earnings per share were $1.10 and $1.19 in Q3 FY'25, respectively.
The Company repurchased 237,000 shares of stock during the quarter for $17.9 million.

Korn Ferry (NYSE:KFY), a global organizational consulting firm, today announced third quarter fee revenue of $668.7 million. In addition, third quarter diluted earnings per share was $1.10 and adjusted diluted earnings per share was $1.19.

"I am pleased with our third quarter results, which clearly demonstrate the power of our business and the strength of our diversification," said Gary D. Burnison, CEO, Korn Ferry. "Tomorrow's macro environment will be encircled by a labor supply/demand imbalance which will require companies to reimagine and reskill their workforce; inspire, employ, develop and retain talent; and embrace technologies that drive a new world of work—all of which present tremendous opportunity for Korn Ferry as we deliver offerings and expertise that drive organizational performance."

Selected Financial Results
(dollars in millions, except per share amounts) ^(a)

	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Fee revenue	$	668.7		$	668.7		$	2,018.0		$	2,071.9
Total revenue	$	676.5		$	676.9		$	2,041.3		$	2,095.6
Net income attributable to Korn Ferry	$	58.4		$	59.1		$	181.8		$	104.0
Net income attributable to Korn Ferry margin		8.7	%		8.8	%		9.0	%		5.0	%
Basic earnings per share	$	1.12		$	1.14		$	3.46		$	2.00
Diluted earnings per share	$	1.10		$	1.13		$	3.40		$	1.99

Adjusted Results (b):	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Adjusted EBITDA	$	114.5		$	101.7		$	342.7		$	295.9
Adjusted EBITDA margin		17.1	%		15.2	%		17.0	%		14.3	%
Adjusted net income attributable to Korn Ferry (c)	$	63.3		$	55.8		$	191.1		$	158.3
Adjusted basic earnings per share (c)	$	1.21		$	1.07		$	3.64		$	3.04
Adjusted diluted earnings per share (c)	$	1.19		$	1.07		$	3.57		$	3.03

______________________
(a)		Numbers may not total due to rounding.
(b)		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 and restructuring charges, net when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

	Third Quarter				Year to Date
	FY'25		FY'24		FY'25		FY'24
Integration/acquisition costs	$	2.1	$	3.9	$	7.1	$	13.1
Restructuring charges, net	$	1.3	$	4.6	$	1.9	$	68.6
Impairment of fixed assets	$	0.5	$	—	$	0.5	$	1.6
Impairment of right-of-use assets	$	2.5	$	—	$	2.5	$	1.6

(c)

Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results.

The Company reported fee revenue in Q3 FY'25 of $668.7 million, which was flat year over year (up 2% at constant currency). During the quarter, fee revenue increased slightly in Executive Search, RPO and Digital, offset by a decline in fee revenue in Consulting.

Net income attributable to Korn Ferry was $58.4 million with a net income attributable to Korn Ferry margin of 8.7%, in Q3 FY'25, compared to net income attributable to Korn Ferry of $59.1 million with a net income attributable to Korn Ferry margin of 8.8%, in the year-ago quarter, a decrease in net income attributable to Korn Ferry margin of 10bps. Adjusted EBITDA was $114.5 million in Q3 FY'25 compared to $101.7 million in Q3 FY'24. Adjusted EBITDA margin was 17.1% in Q3 FY'25, an increase of 190bps compared to the year-ago quarter.

Net income attributable to Korn Ferry and net income attributable to Korn Ferry margin decreased as a result of higher income tax provision in the current period compared to a non-recurring tax benefit recorded in the year-ago quarter from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance, partially offset by disciplined cost management and strong consultant productivity.

Adjusted EBITDA and Adjusted EBITDA margin increased due to disciplined cost management and strong consultant productivity.

Results by Line of Business

Selected Consulting Data
(dollars in millions) ^(a)

	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Fee revenue	$	158.7		$	166.9		$	493.3		$	512.8
Total revenue	$	161.4		$	169.9		$	501.5		$	521.7

Ending number of consultants and execution staff (b)		1,632			1,687			1,632			1,687
Hours worked in thousands (c)		344			381			1,137			1,239
Average bill rate (d)	$	461		$	438		$	434		$	414

Adjusted Results (e):	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Adjusted EBITDA	$	28.0		$	27.8		$	86.4		$	81.9
Adjusted EBITDA margin		17.7	%		16.7	%		17.5	%		16.0	%

______________________
(a)		Numbers may not total due to rounding.
(b)		Represents number of employees originating, delivering and executing consulting services.
(c)		The number of hours worked by consultant and execution staff during the period.
(d)		The amount of fee revenue divided by the number of hours worked by consultants and execution staff.
(e)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'25		FY'24		FY'25		FY'24
Restructuring charges, net	$	1.3	$	1.1	$	1.7	$	18.9
Impairment of right-of-use assets	$	—	$	—	$	—	$	0.6

Fee revenue was $158.7 million in Q3 FY'25, a decrease of 5% compared to year-ago quarter (down 3% at constant currency). The year-over-year decrease in Consulting fee revenue was primarily driven by a decline in our organizational strategy and total rewards offerings, due to the increase in larger engagements (those over $1.0 million) which convert to fee revenue over a longer duration and, to a lesser extent, slower client consumption of solutions and services such as assessments and training development.

Adjusted EBITDA was $28.0 million in Q3 FY'25 compared to $27.8 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 100bps to 17.7%. These increases resulted primarily from higher average bill rates, greater consultant and execution staff productivity, and disciplined cost management.

Selected Digital Data
(dollars in millions) ^(a)

	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Fee revenue	$	90.8		$	90.3		$	271.9		$	275.4
Total revenue	$	90.8		$	90.4		$	272.1		$	275.6

Ending number of consultants		249			275			249			275
Subscription & License fee revenue	$	34.5		$	32.8		$	103.2		$	97.7

Adjusted Results (b):	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Adjusted EBITDA	$	28.4		$	27.4		$	84.2		$	80.7
Adjusted EBITDA margin		31.3	%		30.3	%		31.0	%		29.3	%

______________________
(a)		Numbers may not total due to rounding.
(b)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'25		FY'24		FY'25		FY'24
Restructuring charges, net	$	—	$	0.6	$	—	$	9.5
Impairment of fixed assets	$	0.4	$	—	$	0.4	$	1.5

Fee revenue was $90.8 million in Q3 FY'25 compared to $90.3 million in Q3 FY'24, essentially flat year-over-year (up 3% at constant currency).

Adjusted EBITDA was $28.4 million in Q3 FY'25 compared to $27.4 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased year-over-year by 100bps to 31.3%. The increase in Adjusted EBITDA margin was mainly due to improved consultant productivity and disciplined cost management.

Selected Executive Search Data^(a)
(dollars in millions) ^(b)

	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Fee revenue	$	204.6		$	199.3		$	619.2		$	607.5
Total revenue	$	206.6		$	201.2		$	624.9		$	613.5

Ending number of consultants		560			562			560			562
Average number of consultants		558			574			551			582
Engagements billed		3,540			3,469			7,211			7,269
New engagements (c)		1,464			1,425			4,587			4,505

Adjusted Results (d):	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Adjusted EBITDA	$	51.2		$	43.4		$	152.0		$	125.6
Adjusted EBITDA margin		25.0	%		21.8	%		24.5	%		20.7	%

______________________
(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 Lines of Business, and financial metrics used by the Company's investor base.
(b)		Numbers may not total due to rounding.
(c)		Represents new engagements opened in the respective period.
(d)		Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following:

	Third Quarter				Year to Date
	FY'25		FY'24		FY'25		FY'24
Restructuring charges, net	$	—	$	2.3	$	0.2	$	28.2
Impairment of right-of-use assets	$	2.5	$	—	$	2.5	$	0.9
Impairment of fixed assets	$	0.2	$	—	$	0.2	$	0.1

Fee revenue was $204.6 million in Q3 FY'25, an increase of $5.3 million or 3% compared to the year-ago quarter (up 4% at constant currency). The year-over-year increase in fee revenue was primarily driven by an increase in the number of engagements billed.

Adjusted EBITDA was $51.2 million in Q3 FY'25 compared to $43.4 million in the year-ago quarter. Adjusted EBITDA margin increased by 320bps to 25.0% in Q3 FY'25. The increase in Adjusted EBITDA and Adjusted EBITDA margin was due to higher fee revenue, consultant productivity, and disciplined cost management.

Selected Professional Search & Interim Data
(dollars in millions) ^(a)

	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Fee revenue	$	130.0		$	130.9		$	372.8		$	411.5
Total revenue	$	130.9		$	131.8		$	375.6		$	414.3

Permanent Placement:
Fee revenue	$	47.9		$	52.4		$	152.9		$	167.2
Engagements billed		1,675			1,901			3,780			4,511
New engagements (b)		883			995			2,802			3,414
Ending number of consultants		296			344			296			344
Interim:
Fee revenue	$	82.1		$	78.5		$	219.9		$	244.3
Average bill rate (c)	$	129		$	129		$	134		$	126
Average weekly billable consultants (d)		1,324			1,283			1,124			1,352

Adjusted Results (e):	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Adjusted EBITDA	$	27.3		$	23.8		$	80.2		$	73.7
Adjusted EBITDA margin		21.0	%		18.2	%		21.5	%		17.9	%

_____________________
(a)		Numbers may not total due to rounding.
(b)		Represents new engagements opened in the respective period.
(c)		Fee revenue from interim divided by the number of hours worked by consultants.
(d)		The number of billable consultants based on a weekly average in the respective period.
(e)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'25		FY'24		FY'25		FY'24
Integration/acquisition costs	$	2.0	$	3.8	$	4.4	$	12.7
Restructuring charges, net	$	—	$	—	$	—	$	3.8

Fee revenue was $130.0 million in Q3 FY'25 compared to $130.9 million Q3 FY'24, essentially flat year-over-year at actual and constant currency. During the quarter, fee revenue was impacted by the Industry-wide slowdown in demand for Permanent and Interim professionals offset by an increase in fee revenue from the acquisition of Trilogy, effective November 1, 2024.

Adjusted EBITDA was $27.3 million in Q3 FY'25 compared to $23.8 million in the year-ago quarter. Adjusted EBITDA margin increased year-over-year by 280bps to 21.0%. The increase in Adjusted EBITDA and Adjusted EBITDA margin was primarily due to disciplined cost management.

Selected Recruitment Process Outsourcing ("RPO") Data
(dollars in millions) ^(a)

	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Fee revenue	$	84.7		$	81.2		$	260.8		$	264.7
Total revenue	$	86.9		$	83.6		$	267.1		$	270.5

Remaining revenue under contract (b)	$	752.4		$	695.8		$	752.4		$	695.8
RPO new business (c)	$	209.9		$	122.1		$	414.6		$	311.2

Adjusted Results (d):	Third Quarter						Year to Date
	FY'25			FY'24			FY'25			FY'24
Adjusted EBITDA	$	12.7		$	9.3		$	38.1		$	28.6
Adjusted EBITDA margin		15.0	%		11.4	%		14.6	%		10.8	%

______________________
(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.
(d)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'25		FY'24		FY'25		FY'24
Restructuring charges, net	$	—	$	0.7	$	—	$	7.9
Impairment of right-of-use assets	$	—	$	—	$	—	$	0.1

Fee revenue was $84.7 million in Q3 FY'25 compared to $81.2 million in Q3 FY'24, an increase of 4%, (up 6% at constant currency). RPO fee revenue increased due to recent new client wins being stood up and an increase in demand from our base clients in the North America and Asia Pacific regions.

Adjusted EBITDA was $12.7 million in Q3 FY'25 compared to $9.3 million in the year-ago quarter. Adjusted EBITDA margin increased 360bps to 15.0% in Q3 FY'25. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue, greater execution staff productivity, and disciplined cost management.

Outlook

Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

Q4 FY'25 fee revenue is expected to be in the range of $680 million and $700 million; and

Q4 FY'25 diluted earnings per share is expected to range between $1.20 to $1.28.

On a consolidated adjusted basis:

Q4 FY'25 adjusted diluted earnings per share is expected to be in the range from $1.22 to $1.30.

	Q4 FY'25 Earnings Per Share Outlook
	Low			High

Consolidated diluted earnings per share	$	1.20		$	1.28
Integration/acquisition costs		0.03			0.03
Tax rate impact		(0.01	)		(0.01	)
Consolidated adjusted diluted earnings per share⁽¹⁾	$	1.22		$	1.30

______________________
(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 organizational consulting firm, bringing together strategy and talent to drive superior performance for our clients. We work with our clients to design their organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward, develop, and motivate their workforce. And we help professionals navigate and advance their careers.

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 labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, expected benefits of the acquisition of Trilogy, 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 ("IP"), 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, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net of income tax effect, and to exclude a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance;

Adjusted basic and diluted earnings per share, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net of income tax effect, and to exclude a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance;

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, impairment of fixed assets, impairment of right-of-use assets and restructuring charges, net 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, 2) impairment of fixed assets primarily due to software impairment charge in our Digital segment, 3) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices, 4) restructuring charges, net to align workforce to challenging macroeconomic business environment and 5) to exclude a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance. 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.

KORN FERRY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024

	(unaudited)
Fee revenue	$	668,729		$	668,679		$	2,018,040		$	2,071,871
Reimbursed out-of-pocket engagement expenses		7,809			8,194			23,219			23,711
Total revenue		676,538			676,873			2,041,259			2,095,582

Compensation and benefits		425,319			456,216			1,314,521			1,389,956
General and administrative expenses		65,325			62,661			189,865			194,315
Reimbursed expenses		7,809			8,194			23,219			23,711
Cost of services		78,047			75,814			210,248			231,516
Depreciation and amortization		20,490			19,509			59,756			58,075
Restructuring charges, net		1,316			4,612			1,892			68,558
Total operating expenses		598,306			627,006			1,799,501			1,966,131

Operating income		78,232			49,867			241,758			129,451
Other income, net		9,363			23,817			29,259			23,559
Interest expense, net		(5,461	)		(4,946	)		(15,032	)		(16,282	)
Income before provision for income taxes		82,134			68,738			255,985			136,728
Income tax provision		22,795			9,018			70,047			29,779
Net income		59,339			59,720			185,938			106,949
Net income attributable to noncontrolling interest		(925	)		(649	)		(4,120	)		(2,984	)
Net income attributable to Korn Ferry	$	58,414		$	59,071		$	181,818		$	103,965

Earnings per common share attributable to Korn Ferry:
Basic	$	1.12		$	1.14		$	3.46		$	2.00
Diluted	$	1.10		$	1.13		$	3.40		$	1.99

Weighted-average common shares outstanding:
Basic		51,606			51,126			51,838			51,129
Diluted		52,364			51,343			52,789			51,329


KORN FERRY AND SUBSIDIARIES FINANCIAL SUMMARY BY REPORTING SEGMENT (dollars in thousands) (unaudited)

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025		2024		% Change		2025		2024		% Change
Fee revenue:
Consulting	$	158,704	$	166,947	(4.9	%)	$	493,345	$	512,830	(3.8	%)
Digital		90,823		90,317	0.6	%		271,896		275,395	(1.3	%)
Executive Search:
North America		128,264		121,449	5.6	%		392,907		381,459	3.0	%
EMEA		47,840		48,999	(2.4	%)		140,609		138,873	1.3	%
Asia Pacific		21,664		21,324	1.6	%		63,707		65,167	(2.2	%)
Latin America		6,803		7,541	(9.8	%)		21,982		22,041	(0.3	%)
Total Executive Search ^(a)		204,571		199,313	2.6	%		619,205		607,540	1.9	%
Professional Search & Interim		129,957		130,890	(0.7	%)		372,805		411,453	(9.4	%)
RPO		84,674		81,212	4.3	%		260,789		264,653	(1.5	%)
Total fee revenue		668,729		668,679	0.0	%		2,018,040		2,071,871	(2.6	%)
Reimbursed out-of-pocket engagement expenses		7,809		8,194	(4.7	%)		23,219		23,711	(2.1	%)
Total revenue	$	676,538	$	676,873	(0.0	%)	$	2,041,259	$	2,095,582	(2.6	%)

(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 Lines of Business, and financial metrics used by the Company's investor base.


KORN FERRY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)

	January 31, 2025			April 30, 2024 ⁽¹⁾
	(unaudited)
ASSETS
Cash and cash equivalents	$	779,298		$	941,005
Marketable securities		40,658			42,742
Receivables due from clients, net of allowance for doubtful accounts of $43,484 and $44,192 at January 31, 2025 and April 30, 2024, respectively		575,703			541,014
Income taxes and other receivables		54,467			40,696
Unearned compensation		61,842			59,247
Prepaid expenses and other assets		45,352			49,456
Total current assets		1,557,320			1,674,160

Marketable securities, non-current		241,037			211,681
Property and equipment, net		162,769			161,849
Operating lease right-of-use assets, net		148,169			160,464
Cash surrender value of company-owned life insurance policies, net of loans		254,027			218,977
Deferred income taxes		130,427			133,564
Goodwill		942,105			908,376
Intangible assets, net		75,841			88,833
Unearned compensation, non-current		111,121			99,913
Investments and other assets		26,843			21,052
Total assets	$	3,649,659		$	3,678,869

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	51,659		$	50,112
Income taxes payable		20,653			24,076
Compensation and benefits payable		416,051			525,466
Operating lease liability, current		36,806			36,073
Other accrued liabilities		292,588			298,792
Total current liabilities		817,757			934,519

Deferred compensation and other retirement plans		476,413			440,396
Operating lease liability, non-current		130,850			143,507
Long-term debt		397,535			396,946
Deferred tax liabilities		4,952			4,540
Other liabilities		24,875			21,636
Total liabilities		1,852,382			1,941,544

Stockholders' equity
Common stock: $0.01 par value, 150,000 shares authorized, 78,287 and 77,460 shares issued and 51,573 and 51,983 shares outstanding at January 31, 2025 and April 30, 2024, respectively		365,435			414,885
Retained earnings		1,549,086			1,425,844
Accumulated other comprehensive loss, net		(121,781	)		(107,671	)
Total Korn Ferry stockholders' equity		1,792,740			1,733,058
Noncontrolling interest		4,537			4,267
Total stockholders' equity		1,797,277			1,737,325
Total liabilities and stockholders' equity	$	3,649,659		$	3,678,869

(1)

Information is derived from audited financial statements included in Form 10-K.


KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (dollars in thousands) (unaudited)

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024

Net income attributable to Korn Ferry	$	58,414		$	59,071		$	181,818		$	103,965
Net income attributable to non-controlling interest		925			649			4,120			2,984
Net income		59,339			59,720			185,938			106,949
Income tax provision		22,795			9,018			70,047			29,779
Income before provision for income taxes		82,134			68,738			255,985			136,728
Interest expense, net		5,461			4,946			15,032			16,282
Depreciation and amortization		20,490			19,509			59,756			58,075
Integration/acquisition costs (1)		2,127			3,899			7,099			13,057
Impairment of fixed assets (2)		509			—			509			1,575
Impairment of right-of-use assets (3)		2,452			—			2,452			1,629
Restructuring charges, net (4)		1,316			4,612			1,892			68,558
Adjusted EBITDA	$	114,489		$	101,704		$	342,725		$	295,904

Net income attributable to Korn Ferry margin		8.7	%		8.8	%		9.0	%		5.0	%
Net income attributable to non-controlling interest		0.1	%		0.1	%		0.2	%		0.1	%
Income tax provision		3.4	%		1.4	%		3.5	%		1.5	%
Interest expense, net		0.8	%		0.7	%		0.7	%		0.8	%
Depreciation and amortization		3.1	%		2.9	%		3.0	%		2.8	%
Integration/acquisition costs (1)		0.3	%		0.6	%		0.4	%		0.6	%
Impairment of fixed assets (2)		0.1	%		—	%		0.0	%		0.1	%
Impairment of right-of-use assets (3)		0.4	%		—	%		0.1	%		0.1	%
Restructuring charges, net (4)		0.2	%		0.7	%		0.1	%		3.3	%
Adjusted EBITDA margin		17.1	%		15.2	%		17.0	%		14.3	%

Net income attributable to Korn Ferry	$	58,414		$	59,071		$	181,818		$	103,965
Integration/acquisition costs (1)		2,127			3,899			7,099			13,057
Impairment of fixed assets (2)		509			—			509			1,575
Impairment of right-of-use assets (3)		2,452			—			2,452			1,629
Restructuring charges, net (4)		1,316			4,612			1,892			68,558
Tax effect on the adjusted items (5)		(1,555	)		(2,092	)		(2,700	)		(20,763	)
Tax adjustment (6)		—			(9,714	)		—			(9,714	)
Adjusted net income attributable to Korn Ferry	$	63,263		$	55,776		$	191,070		$	158,307

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 impairment of fixed assets primarily due to software impairment charge in our Digital segment.
(3)		Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.
(4)		Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(5)		Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, and restructuring charges, net.
(6)		Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results.

KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (unaudited)

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024

Basic earnings per common share	$	1.12		$	1.14		$	3.46		$	2.00
Integration/acquisition costs (1)		0.04			0.07			0.14			0.25
Impairment of fixed assets (2)		0.01			—			0.01			0.03
Impairment of right-of-use assets (3)		0.05			—			0.05			0.03
Restructuring charges, net (4)		0.02			0.09			0.03			1.32
Tax effect on the adjusted items (5)		(0.03	)		(0.04	)		(0.05	)		(0.40	)
Tax adjustment (6)		—			(0.19	)		—			(0.19	)
Adjusted basic earnings per share	$	1.21		$	1.07		$	3.64		$	3.04

Diluted earnings per common share	$	1.10		$	1.13		$	3.40		$	1.99
Integration/acquisition costs (1)		0.04			0.07			0.13			0.25
Impairment of fixed assets (2)		0.01			—			0.01			0.03
Impairment of right-of-use assets (3)		0.05			—			0.05			0.03
Restructuring charges, net (4)		0.02			0.09			0.03			1.32
Tax effect on the adjusted items (5)		(0.03	)		(0.04	)		(0.05	)		(0.40	)
Tax adjustment (6)		—			(0.18	)		—			(0.19	)
Adjusted diluted earnings per share	$	1.19		$	1.07		$	3.57		$	3.03

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 impairment of fixed assets primarily due to software impairment charge in our Digital segment.
(3)		Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.
(4)		Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(5)		Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, and restructuring charges, net.
(6)		Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in the quarter ended January 31, 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results.

KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (dollars in thousands) (unaudited)

	Three Months Ended January 31,
	2025									2024

					Net income attributable to Korn Ferry			Net income attributable to Korn Ferry margin						Net income attributable to Korn Ferry			Net income attributable to Korn Ferry margin
Consolidated					$	58,414		8.7	%					$	59,071		8.8	%

	Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin		Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin

Consulting	$	158,704	$	161,382	$	28,026		17.7	%	$	166,947	$	169,929	$	27,812		16.7	%
Digital		90,823		90,836		28,408		31.3	%		90,317		90,394		27,370		30.3	%
Executive Search:
North America		128,264		129,889		37,175		29.0	%		121,449		123,059		29,382		24.2	%
EMEA		47,840		48,087		7,845		16.4	%		48,999		49,171		7,799		15.9	%
Asia Pacific		21,664		21,794		4,504		20.8	%		21,324		21,384		4,500		21.1	%
Latin America		6,803		6,807		1,696		24.9	%		7,541		7,543		1,750		23.2	%
Total Executive Search		204,571		206,577		51,220		25.0	%		199,313		201,157		43,431		21.8	%
Professional Search & Interim		129,957		130,854		27,265		21.0	%		130,890		131,824		23,795		18.2	%
RPO		84,674		86,889		12,743		15.0	%		81,212		83,569		9,291		11.4	%
Corporate		—		—		(33,173	)				—		—		(29,995	)
Consolidated	$	668,729	$	676,538	$	114,489		17.1	%	$	668,679	$	676,873	$	101,704		15.2	%

	Nine Months Ended January 31,
	2025									2024

					Net income attributable to Korn Ferry			Net income attributable to Korn Ferry margin						Net income attributable to Korn Ferry			Net income attributable to Korn Ferry margin
Consolidated					$	181,818		9.0	%					$	103,965		5.0	%

	Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin		Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin

Consulting	$	493,345	$	501,533	$	86,426		17.5	%	$	512,830	$	521,675	$	81,920		16.0	%
Digital		271,896		272,085		84,219		31.0	%		275,395		275,563		80,678		29.3	%
Executive Search:
North America		392,907		397,395		109,180		27.8	%		381,459		386,405		87,574		23.0	%
EMEA		140,609		141,495		22,597		16.1	%		138,873		139,621		19,056		13.7	%
Asia Pacific		63,707		64,038		13,154		20.6	%		65,167		65,454		14,690		22.5	%
Latin America		21,982		21,992		7,046		32.1	%		22,041		22,050		4,296		19.5	%
Total Executive Search		619,205		624,920		151,977		24.5	%		607,540		613,530		125,616		20.7	%
Professional Search & Interim		372,805		375,572		80,174		21.5	%		411,453		414,348		73,746		17.9	%
RPO		260,789		267,149		38,136		14.6	%		264,653		270,466		28,617		10.8	%
Corporate		—		—		(98,207	)				—		—		(94,673	)
Consolidated	$	2,018,040	$	2,041,259	$	342,725		17.0	%	$	2,071,871	$	2,095,582	$	295,904		14.3	%

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Media: Dan Gugler, (310) 226-2645