Highlights

Korn Ferry reports Q3 FY'26 fee revenue of $717.4 million, an increase of 7% year-over-year with growth in all solutions.
Net income attributable to Korn Ferry increased 12% year-over-year, with a margin of 9.1%.
Adjusted EBITDA increased 8% year-over-year, with a margin of 17.2%.
Diluted and adjusted diluted earnings per share were up 12% and 8% year-over-year, respectively.
Estimated remaining fees under existing contracts at the end of the third quarter was $1.9 billion, up 11% year-over-year, led by Digital +16%, Consulting +12% and RPO +10%.

Korn Ferry (NYSE:KFY), a global consulting firm, today announced third quarter fee revenue of $717.4 million. In addition, third quarter diluted earnings per share was $1.23 and adjusted diluted earnings per share was $1.28.

"Our strong quarterly performance continues to reflect the evolution of our firm," said Gary D. Burnison, CEO, Korn Ferry. "Today the world is enveloped by unprecedented levels of change – shifts in population, demographics and technological advancement that are converging to exert great impact on the way people live, work and consume. This environment provides tremendous opportunity for Korn Ferry."

"I am pleased with the synchronization of our expertise, globality and solutions to solve our clients' toughest performance challenges. Most of all, I am energized by our talented colleagues around the world who are committed to enabling people and organizations to Be More Than," added Burnison. "Success begins and ends with talent. As such, we are proud to be a Founding Partner of the LA28 Olympic and Paralympic Games, powering the people who power the Olympic Games."

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

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	717.4		$	668.7		$	2,147.7		$	2,018.0
Total revenue	$	725.0		$	676.5		$	2,170.4		$	2,041.3
Estimated remaining fees under existing contracts (b)	$	1,850.8		$	1,669.4		$	1,850.8		$	1,669.4
Net income attributable to Korn Ferry	$	65.3		$	58.4		$	204.3		$	181.8
Net income attributable to Korn Ferry margin		9.1	%		8.7	%		9.5	%		9.0	%
Basic earnings per share	$	1.25		$	1.12		$	3.91		$	3.46
Diluted earnings per share	$	1.23		$	1.10		$	3.84		$	3.40

Adjusted Results (c):	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	123.1		$	114.5		$	368.3		$	342.7
Adjusted EBITDA margin		17.2	%		17.1	%		17.1	%		17.0	%
Adjusted net income attributable to Korn Ferry (d)	$	67.7		$	63.3		$	207.4		$	191.1
Adjusted basic earnings per share (d)	$	1.30		$	1.21		$	3.97		$	3.64
Adjusted diluted earnings per share (d)	$	1.28		$	1.19		$	3.89		$	3.57

____________________
(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)		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, gain on modification of an office lease, restructuring charges, net and management separation charges 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'26		FY'25		FY'26			FY'25
Integration/acquisition costs	$	1.6	$	2.1	$	4.4		$	7.1
Restructuring charges, net	$	—	$	1.3	$	—		$	1.9
Impairment of fixed assets	$	—	$	0.5	$	—		$	0.5
Impairment of right-of-use assets	$	—	$	2.5	$	—		$	2.5
Gain on modification of office lease	$	—	$	—	$	(13.9	)	$	—

____________________
(d)		Adjusted net income attributable to Korn Ferry, Adjusted basic earnings per share and Adjusted diluted earnings per share are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Accelerated depreciation on Digital platform	$	1.7		$	—		$	13.8		$	—
Integration/acquisition costs	$	1.6		$	2.1		$	4.4		$	7.1
Restructuring charges, net	$	—		$	1.3		$	—		$	1.9
Impairment of fixed assets	$	—		$	0.5		$	—		$	0.5
Impairment of right-of-use assets	$	—		$	2.5		$	—		$	2.5
Gain on modification of office lease	$	—		$	—		$	(13.9	)	$	—
Tax effect on the adjusted items	$	(0.9	)	$	(1.6	)	$	(1.2	)	$	(2.7	)

The Company reported fee revenue in Q3 FY'26 of $717.4 million, an increase of 7% year-over-year (up 4% at constant currency). Fee revenue grew in all solutions year-over-year, led by Executive Search at 13%, followed by Professional Search & Interim and Consulting, both at 5%.

Net income attributable to Korn Ferry was $65.3 million with a margin of 9.1% in Q3 FY'26, compared to Q3 FY'25 net income attributable to Korn Ferry of $58.4 million with a margin of 8.7%, an increase of 40bps. Net income attributable to Korn Ferry increased from the year-ago quarter primarily due to an increase in fee revenue and the impact of adjusted items in item (d) above, partially offset by an increase in compensation and benefits expenses.

Adjusted EBITDA was $123.1 million in Q3 FY'26 compared to $114.5 million in Q3 FY'25. Adjusted EBITDA margin was 17.2% in Q3 FY'26, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by an increase in compensation and benefits expenses.

Results by Solution

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

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	166.9		$	158.7		$	509.7		$	493.3
Total revenue	$	170.2		$	161.4		$	518.8		$	501.5

Estimated remaining fees under existing contracts (b)	$	407.3		$	364.6		$	407.3		$	364.6
Ending number of consultants and execution staff (c)		1,524			1,632			1,524			1,632
Hours worked in thousands (d)		317			344			1,060			1,137
Average bill rate (e)	$	470		$	461		$	464		$	434

Adjusted Results (f):	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	28.4		$	28.0		$	87.5		$	86.4
Adjusted EBITDA margin		17.0	%		17.7	%		17.2	%		17.5	%

____________________
(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)		Represents number of employees originating, delivering and executing consulting services.
(d)		The number of hours worked by consultant and execution staff during the period.
(e)		The amount of fee revenue divided by the number of hours worked by consultants and execution staff.
(f)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'26		FY'25		FY'26			FY'25
Restructuring charges, net	$	—	$	1.3	$	—		$	1.7
Gain on modification of office lease	$	—	$	—	$	(4.1	)	$	—

Fee revenue was $166.9 million in Q3 FY'26 compared to $158.7 million in Q3 FY'25, an increase of $8.2 million or 5% (up 2% on a constant currency basis). The year-over-year increase in Consulting fee revenue was primarily driven by a 2% increase in average bill rates.

Adjusted EBITDA was $28.4 million in Q3 FY'26 compared to $28.0 million in the year-ago quarter. Adjusted EBITDA margin was 17.0% in Q3 FY'26 compared to 17.7% in the year-ago quarter.

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

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	94.0		$	90.8		$	274.2		$	271.9
Total revenue	$	94.2		$	90.8		$	274.7		$	272.1

Estimated remaining fees under existing contracts (b)	$	428.0		$	369.6		$	428.0		$	369.6
Ending number of consultants		225			249			225			249
Subscription & License fee revenue	$	37.2		$	34.5		$	110.6		$	103.2

Adjusted Results (c):	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	29.1		$	28.4		$	85.4		$	84.2
Adjusted EBITDA margin		31.0	%		31.3	%		31.2	%		31.0	%

____________________
(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)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'26		FY'25		FY'26			FY'25
Impairment of fixed assets	$	—	$	0.4	$	—		$	0.4
Gain on modification of office lease	$	—	$	—	$	(2.0	)	$	—

Fee revenue was $94.0 million in Q3 FY'26 compared to $90.8 million in Q3 FY'25, an increase of $3.2 million or 4% (essentially flat on a constant currency basis). The year-over-year increase in Digital fee revenue was primarily driven by an 8% increase in Subscription & License fee revenue.

Adjusted EBITDA was $29.1 million in Q3 FY'26, compared to $28.4 million in the year-ago quarter. Adjusted EBITDA margin was 31.0%, a slight decline from the year-ago quarter.

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

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	231.9		$	204.6		$	682.2		$	619.2
Total revenue	$	233.8		$	206.6		$	687.9		$	624.9

Estimated remaining fees under existing contracts (c)	$	68.6		$	58.5		$	68.6		$	58.5
Ending number of consultants		563			560			563			560
Average number of consultants		566			558			562			551
Engagements billed		3,737			3,540			7,648			7,211
New engagements (d)		1,573			1,464			4,802			4,587

Adjusted Results (e):	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	58.2		$	51.2		$	173.4		$	152.0
Adjusted EBITDA margin		25.1	%		25.0	%		25.4	%		24.5	%

____________________
(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 Solutions, and financial metrics used by the Company's investor base.
(b)		Numbers may not total due to rounding.
(c)		Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(d)		Represents new engagements opened in the respective period.
(e)		Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following:

	Third Quarter				Year to Date
	FY'26		FY'25		FY'26			FY'25
Impairment of right-of-use assets	$	—	$	2.5	$	—		$	2.5
Impairment of fixed assets	$	—	$	0.2	$	—		$	0.2
Gain on modification of office lease	$	—	$	—	$	(3.7	)	$	—
Restructuring charges, net	$	—	$	—	$	—		$	0.2

Fee revenue was $231.9 million in Q3 FY'26 compared to $204.6 million in Q3 FY'25, an increase of $27.3 million or 13% (up 11% at constant currency). The year-over-year increase in fee revenue was driven by an increase in both the number of engagements billed and the weighted-average fee billed per engagement. The Company experienced fee revenue growth in all regions.

Adjusted EBITDA was $58.2 million in Q3 FY'26 compared to $51.2 million in the year-ago quarter, an increase of 14% year-over-year. Adjusted EBITDA margin was 25.1%, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was primarily due to an increase in fee revenue, partially offset by an increase in compensation and benefits expenses.

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

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	137.0		$	130.0		$	412.0		$	372.8
Total revenue	$	138.2		$	130.9		$	415.8		$	375.6

Permanent Placement:
Fee revenue	$	51.7		$	47.9		$	162.6		$	152.9
Estimated remaining fees under existing contracts (b)	$	15.3		$	12.8		$	15.3		$	12.8
Engagements billed		1,715			1,675			3,847			3,780
New engagements (c)		901			883			2,868			2,802
Ending number of consultants		292			296			292			296
Interim:
Fee revenue	$	85.3		$	82.1		$	249.4		$	219.9
Estimated remaining fees under existing contracts (b)	$	106.6		$	111.5		$	106.6		$	111.5
Average bill rate (d)	$	149		$	129		$	143		$	134
Average weekly billable consultants (e)		1,257			1,324			1,238			1,124

Adjusted Results (f):	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	29.1		$	27.3		$	87.3		$	80.2
Adjusted EBITDA margin		21.2	%		21.0	%		21.2	%		21.5	%

____________________
(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)		Represents new engagements opened in the respective period.
(d)		Fee revenue from interim divided by the number of hours worked by consultants.
(e)		The number of billable consultants based on a weekly average in the respective period.
(f)		Adjusted results exclude the following:

	Third Quarter				Year to Date
	FY'26		FY'25		FY'26			FY'25
Integration/acquisition costs	$	1.6	$	2.0	$	4.4		$	4.4
Gain on modification of office lease	$	—	$	—	$	(2.6	)	$	—

Fee revenue was $137.0 million in Q3 FY'26 compared to $130.0 million in Q3 FY'25, an increase of $7.0 million or 5% (up 3% at constant currency). Fee revenue increased due to higher fee revenues in both Permanent Placement and Interim. The year-over-year increase in permanent placement fee revenue was driven by an increase in both the number of engagements billed and the weighted-average fee billed per engagement. The year-over-year increase in interim fee revenue was primarily due to a 16% increase in average bill rate.

Adjusted EBITDA was $29.1 million in Q3 FY'26 compared to $27.3 million in the year-ago quarter. Adjusted EBITDA margin was 21.2%, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.

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

	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	87.5		$	84.7		$	269.6		$	260.8
Total revenue	$	88.6		$	86.9		$	273.1		$	267.1

Estimated remaining fees under existing contracts (b)	$	825.0		$	752.4		$	825.0		$	752.4
RPO new business (c)	$	54.4		$	209.9		$	406.7		$	414.6

Adjusted Results (d):	Third Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	13.6		$	12.7		$	42.2		$	38.1
Adjusted EBITDA margin		15.6	%		15.0	%		15.7	%		14.6	%

____________________
(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'26		FY'25		FY'26			FY'25
Gain on modification of office lease	$	—	$	—	$	(1.5	)	$	—

Fee revenue was $87.5 million in Q3 FY'26 compared to $84.7 million in Q3 FY'25, an increase of $2.8 million or 3% (up 1% at constant currency). RPO fee revenue increased primarily due to new logo clients in North America.

Adjusted EBITDA was $13.6 million in Q3 FY'26 compared to $12.7 million in the year-ago quarter. Adjusted EBITDA margin increased 60bps to 15.6% in Q3 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue, partially offset by an increase in compensation and benefits expense.

Outlook

Assuming no material negative impact from the recent Middle East conflict and that other worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

Q4 FY'26 fee revenue is expected to be in the range of $730 million and $750 million; and
Q4 FY'26 diluted earnings per share is expected to range between $1.34 to $1.40.

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 consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That's why the world's most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than.

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, impact of global events on our business, 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, including the recent Middle East conflict, 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, 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 use 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 accelerated depreciation on our Digital platform, integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net of income tax effect;
Adjusted basic and diluted earnings per share, adjusted to exclude cost associated with accelerated depreciation on our Digital platform, integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net of income tax effect;
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, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, 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 items 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 items, which are described in the footnotes in the attached reconciliations, represent 1) costs associated with previous acquisitions, such as legal and professional fees, retention awards and on-going integration expenses, 2) gain on modification of an office lease where the Company received lease incentives to shorten the lease term, 3) restructuring charges, net to align workforce to eliminate excess capacity resulting from challenging macroeconomic business environment, 4) accelerated depreciation associated with the decision to sunset our Digital platform, 5) impairment of fixed assets primarily due to software impairment charge in our Digital segment and 6) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices. 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,
	2026			2025			2026			2025
	(unaudited)
Fee revenue	$	717,385		$	668,729		$	2,147,697		$	2,018,040
Reimbursed out-of-pocket engagement expenses		7,657			7,809			22,688			23,219
Total revenue		725,042			676,538			2,170,385			2,041,259

Compensation and benefits		456,823			425,319			1,380,268			1,314,521
General and administrative expenses		65,944			65,325			180,068			189,865
Reimbursed expenses		7,657			7,809			22,688			23,219
Cost of services		80,607			78,047			236,888			210,248
Depreciation and amortization		22,994			20,490			77,253			59,756
Restructuring charges, net		—			1,316			—			1,892
Total operating expenses		634,025			598,306			1,897,165			1,799,501

Operating income		91,017			78,232			273,220			241,758
Other income, net		7,468			9,363			27,295			29,259
Interest expense, net		(5,663	)		(5,461	)		(14,942	)		(15,032	)
Income before provision for income taxes		92,822			82,134			285,573			255,985
Income tax provision		26,683			22,795			78,578			70,047
Net income		66,139			59,339			206,995			185,938
Net income attributable to noncontrolling interest		(874	)		(925	)		(2,695	)		(4,120	)
Net income attributable to Korn Ferry	$	65,265		$	58,414		$	204,300		$	181,818

Earnings per common share attributable to Korn Ferry:
Basic	$	1.25		$	1.12		$	3.91		$	3.46
Diluted	$	1.23		$	1.10		$	3.84		$	3.40

Weighted-average common shares outstanding:
Basic		51,570			51,606			51,594			51,838
Diluted		52,417			52,364			52,612			52,789

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

	Three Months Ended January 31,						Nine Months Ended January 31,
	2026		2025		% Change		2026		2025		% Change
Fee revenue:
Consulting	$	166,931	$	158,704	5.2	%	$	509,734	$	493,345	3.3	%
Digital		94,014		90,823	3.5	%		274,241		271,896	0.9	%
Executive Search:
North America		145,540		128,264	13.5	%		427,299		392,907	8.8	%
EMEA		55,318		47,840	15.6	%		160,999		140,609	14.5	%
Asia Pacific		24,073		21,664	11.1	%		72,905		63,707	14.4	%
Latin America		7,018		6,803	3.2	%		20,950		21,982	(4.7	%)
Total Executive Search ^(a)		231,949		204,571	13.4	%		682,153		619,205	10.2	%
Professional Search & Interim		137,017		129,957	5.4	%		412,017		372,805	10.5	%
RPO		87,474		84,674	3.3	%		269,552		260,789	3.4	%
Total fee revenue		717,385		668,729	7.3	%		2,147,697		2,018,040	6.4	%
Reimbursed out-of-pocket engagement expenses		7,657		7,809	(1.9	%)		22,688		23,219	(2.3	%)
Total revenue	$	725,042	$	676,538	7.2	%	$	2,170,385	$	2,041,259	6.3	%

(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 Solutions, 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, 2026			April 30, 2025 ⁽¹⁾
	(unaudited)
ASSETS
Cash and cash equivalents	$	938,365		$	1,006,964
Marketable securities		38,367			36,388
Receivables due from clients, net of allowance for doubtful accounts of $45,990 and $40,461 at January 31, 2026 and April 30, 2025, respectively		626,813			565,255
Income taxes and other receivables		65,823			38,394
Unearned compensation		65,882			61,649
Prepaid expenses and other assets		53,225			41,488
Total current assets		1,788,475			1,750,138

Marketable securities, non-current		241,745			233,626
Property and equipment, net		182,572			173,610
Operating lease right-of-use assets, net		141,084			152,712
Cash surrender value of company-owned life insurance policies, net of loans		285,516			252,621
Deferred income taxes		134,199			144,560
Goodwill		951,962			948,832
Intangible assets, net		52,047			70,193
Unearned compensation, non-current		128,310			106,965
Investments and other assets		43,698			27,967
Total assets	$	3,949,608		$	3,861,224

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	60,034		$	58,884
Income taxes payable		23,313			23,079
Compensation and benefits payable		457,225			530,473
Operating lease liability, current		29,418			38,573
Other accrued liabilities		319,565			304,589
Total current liabilities		889,555			955,598

Deferred compensation and other retirement plans		491,616			477,770
Operating lease liability, non-current		132,633			131,762
Long-term debt		398,354			397,736
Deferred tax liabilities		6,436			5,981
Other liabilities		23,049			20,238
Total liabilities		1,941,643			1,989,085

Stockholders' equity
Common stock: $0.01 par value, 150,000 shares authorized, 79,180 and 78,264 shares issued and 51,463 and 51,458 shares outstanding at January 31, 2026 and April 30, 2025, respectively		351,578			364,425
Retained earnings		1,716,206			1,588,274
Accumulated other comprehensive loss, net		(65,337	)		(86,243	)
Total Korn Ferry stockholders' equity		2,002,447			1,866,456
Noncontrolling interest		5,518			5,683
Total stockholders' equity		2,007,965			1,872,139
Total liabilities and stockholders' equity	$	3,949,608		$	3,861,224

(1)		Information is derived from audited financial statements included in our most recently filed 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,
	2026			2025			2026			2025

Net income attributable to Korn Ferry	$	65,265		$	58,414		$	204,300		$	181,818
Net income attributable to non-controlling interest		874			925			2,695			4,120
Net income		66,139			59,339			206,995			185,938
Income tax provision		26,683			22,795			78,578			70,047
Income before provision for income taxes		92,822			82,134			285,573			255,985
Interest expense, net		5,663			5,461			14,942			15,032
Depreciation and amortization (1)		22,994			20,490			77,253			59,756
Integration/acquisition costs (2)		1,587			2,127			4,420			7,099
Restructuring charges, net (3)		—			1,316			—			1,892
Impairment of fixed assets (4)		—			509			—			509
Impairment of right-of-use assets (5)		—			2,452			—			2,452
Gain on modification of office lease (6)		—			—			(13,907	)		—
Adjusted EBITDA	$	123,066		$	114,489		$	368,281		$	342,725

Net income attributable to Korn Ferry margin		9.1	%		8.7	%		9.5	%		9.0	%
Net income attributable to non-controlling interest		0.1	%		0.1	%		0.1	%		0.2	%
Income tax provision		3.8	%		3.4	%		3.6	%		3.5	%
Interest expense, net		0.8	%		0.8	%		0.7	%		0.7	%
Depreciation and amortization (1)		3.2	%		3.1	%		3.6	%		3.0	%
Integration/acquisition costs (2)		0.2	%		0.3	%		0.2	%		0.4	%
Restructuring charges, net (3)		—	%		0.2	%		—	%		0.1	%
Impairment of fixed assets (4)		—	%		0.1	%		—	%		0.0	%
Impairment of right-of-use assets (5)		—	%		0.4	%		—	%		0.1	%
Gain on modification of office lease (6)		—	%		—	%		(0.6	%)		—	%
Adjusted EBITDA margin		17.2	%		17.1	%		17.1	%		17.0	%

Net income attributable to Korn Ferry	$	65,265		$	58,414		$	204,300		$	181,818
Accelerated depreciation on Digital platform (1)		1,696			—			13,846			—
Integration/acquisition costs (2)		1,587			2,127			4,420			7,099
Restructuring charges, net (3)		—			1,316			—			1,892
Impairment of fixed assets (4)		—			509			—			509
Impairment of right-of-use assets (5)		—			2,452			—			2,452
Gain on modification of office lease (6)		—			—			(13,907	)		—
Tax effect on the adjusted items (7)		(865	)		(1,555	)		(1,243	)		(2,700	)
Adjusted net income attributable to Korn Ferry	$	67,683		$	63,263		$	207,416		$	191,070

Explanation of Non-GAAP Adjustments
(1)		Depreciation and amortization includes $1.7 million and $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and nine months ended January 31, 2026, respectively.
(2)		Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.
(3)		Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(4)		Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.
(5)		Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.
(6)		Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.
(7)		Tax effect on accelerated depreciation on Digital platform, integration/acquisition costs, restructuring charges, net, impairment of fixed assets and right-of-use assets and gain on modification of office lease.

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

	Three Months Ended January 31,						Nine Months Ended January 31,
	2026			2025			2026			2025

Basic earnings per common share	$	1.25		$	1.12		$	3.91		$	3.46
Accelerated depreciation on Digital platform (1)		0.04			—			0.27			—
Integration/acquisition costs (2)		0.03			0.04			0.08			0.14
Restructuring charges, net (3)		—			0.02			—			0.03
Impairment of fixed assets (4)		—			0.01			—			0.01
Impairment of right-of-use assets (5)		—			0.05			—			0.05
Gain on modification of office lease (6)		—			—			(0.27	)		—
Tax effect on the adjusted items (7)		(0.02	)		(0.03	)		(0.02	)		(0.05	)
Adjusted basic earnings per share	$	1.30		$	1.21		$	3.97		$	3.64

Diluted earnings per common share	$	1.23		$	1.10		$	3.84		$	3.40
Accelerated depreciation on Digital platform (1)		0.04			—			0.26			—
Integration/acquisition costs (2)		0.03			0.04			0.07			0.13
Restructuring charges, net (3)		—			0.02			—			0.03
Impairment of fixed assets (4)		—			0.01			—			0.01
Impairment of right-of-use assets (5)		—			0.05			—			0.05
Gain on modification of office lease (6)		—			—			(0.26	)		—
Tax effect on the adjusted items (7)		(0.02	)		(0.03	)		(0.02	)		(0.05	)
Adjusted diluted earnings per share	$	1.28		$	1.19		$	3.89		$	3.57

Explanation of Non-GAAP Adjustments
(1)		Depreciation and amortization includes $1.7 million and $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and nine months ended January 31, 2026, respectively.
(2)		Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.
(3)		Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(4)		Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.
(5)		Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.
(6)		Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.
(7)		Tax effect on accelerated depreciation on Digital platform, integration/acquisition costs, restructuring charges, net, impairment of fixed assets and right-of-use assets and gain on modification of office lease.

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

	Three Months Ended January 31,
	2026									2025

					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					$	65,265		9.1	%					$	58,414		8.7	%

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

Consulting	$	166,931	$	170,202	$	28,417		17.0	%	$	158,704	$	161,382	$	28,026		17.7	%
Digital		94,014		94,199		29,099		31.0	%		90,823		90,836		28,408		31.3	%
Executive Search:
North America		145,540		146,784		42,138		29.0	%		128,264		129,889		37,175		29.0	%
EMEA		55,318		55,784		9,459		17.1	%		47,840		48,087		7,845		16.4	%
Asia Pacific		24,073		24,218		5,331		22.1	%		21,664		21,794		4,504		20.8	%
Latin America		7,018		7,026		1,223		17.4	%		6,803		6,807		1,696		24.9	%
Total Executive Search		231,949		233,812		58,151		25.1	%		204,571		206,577		51,220		25.0	%
Professional Search & Interim		137,017		138,188		29,065		21.2	%		129,957		130,854		27,265		21.0	%
RPO		87,474		88,641		13,641		15.6	%		84,674		86,889		12,743		15.0	%
Corporate		—		—		(35,307	)				—		—		(33,173	)
Consolidated	$	717,385	$	725,042	$	123,066		17.2	%	$	668,729	$	676,538	$	114,489		17.1	%

	Nine Months Ended January 31,
	2026									2025

					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					$	204,300		9.5	%					$	181,818		9.0	%

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

Consulting	$	509,734	$	518,831	$	87,490		17.2	%	$	493,345	$	501,533	$	86,426		17.5	%
Digital		274,241		274,681		85,438		31.2	%		271,896		272,085		84,219		31.0	%
Executive Search:
North America		427,299		431,565		125,332		29.3	%		392,907		397,395		109,180		27.8	%
EMEA		160,999		162,077		27,373		17.0	%		140,609		141,495		22,597		16.1	%
Asia Pacific		72,905		73,321		16,185		22.2	%		63,707		64,038		13,154		20.6	%
Latin America		20,950		20,984		4,497		21.5	%		21,982		21,992		7,046		32.1	%
Total Executive Search		682,153		687,947		173,387		25.4	%		619,205		624,920		151,977		24.5	%
Professional Search & Interim		412,017		415,834		87,293		21.2	%		372,805		375,572		80,174		21.5	%
RPO		269,552		273,092		42,203		15.7	%		260,789		267,149		38,136		14.6	%
Corporate		—		—		(107,530	)				—		—		(98,207	)
Consolidated	$	2,147,697	$	2,170,385	$	368,281		17.1	%	$	2,018,040	$	2,041,259	$	342,725		17.0	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260227661073/en/

Investor Relations: Tiffany Louder, (214) 310-8407

Media: Dan Gugler, (310) 226-2645

Korn Ferry Announces Third Quarter Fiscal 2026 Results of Operations