Korn Ferry Announces Fourth Quarter and Full Year FY'26 Results of Operations

Korn Ferry Announces Fourth Quarter and Full Year FY'26 Results of Operations LOS ANGELES--( BUSINESS WIRE)--Korn Ferry (NYSE: KFY), a global consulting firm, today announced fourth quarter and annual fee revenue of $759.8 million and $2.9 billion, respectively. In addition, fourth quarter diluted earnings per share was $1.39 and adjusted diluted earnings per share was $1.40, while full year diluted earnings per share was $5.22 and adjusted diluted earnings per share was $5.28.

“I am very pleased with our quarterly performance. This marks our fifth consecutive quarter of top-line growth, underscoring the strength of our strategy and the increasing relevance of our solutions – all amid an uneven economic environment,” said Gary D. Burnison, CEO, Korn Ferry. “In addition to increased momentum across our broader offerings, I am particularly encouraged by double-digit growth in Professional Search & Interim, reflecting the depth and breadth of our solutions.

“As we conclude another fiscal year, I have never been more excited about the potential for Korn Ferry, the impact we have on clients and our We Are Korn Ferry mindset that is furthering collaboration across our firm. I am incredibly proud of our colleagues around the world. Their expertise and passion are the catalyst as we unlock potential in people and unleash transformation across organizations.”

Selected Financial Results

(dollars in millions, except per share amounts) (a)

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

759.8

712.0

2,907.5

2,730.1

Total revenue

768.3

719.8

2,938.6

2,761.1

Estimated remaining fees under existing contracts (b)

1,883.0

1,709.6

1,883.0

1,709.6

Net income attributable to Korn Ferry

73.1

64.2

277.4

246.1

Net income attributable to Korn Ferry margin

9.6

9.0

9.5

9.0

Basic earnings per share

1.42

1.23

5.33

4.69

Diluted earnings per share

1.39

1.21

5.22

4.60

Adjusted Results (c):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

129.5

121.1

497.8

463.9

Adjusted EBITDA margin

17.0

17.1

17.0

Adjusted net income attributable to Korn Ferry (d)

73.5

70.1

280.9

261.2

Adjusted basic earnings per share (d)

1.43

1.34

5.40

4.98

Adjusted diluted earnings per share (d)

1.40

1.32

5.28

4.88

(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):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Management separation charges are contractual

obligations due upon executive's death

—

4.6

—

4.6

Integration/acquisition costs

—

1.7

4.4

8.8

Restructuring charges, net

—

1.9

Impairment of fixed assets

—

0.5

Impairment of right-of-use assets

—

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 items in (c) and the following, as applicable (see attached reconciliations):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Accelerated depreciation on Digital platform

—

13.8

—

Tax effect on the adjusted items

0.4

(0.5

)

(0.9

)

(3.2

)

Fiscal 2026 Fourth Quarter Results

The Company reported fee revenue in Q4 FY'26 of $759.8 million, an increase of 7% year-over-year (up 5.0% at constant currency), led by Professional Search & Interim up 14%, followed by Executive Search and Consulting, both up 7% and RPO up 5%.

Net income attributable to Korn Ferry was $73.1 million with a margin of 9.6% in Q4 FY'26, compared to Q4 FY'25 net income attributable to Korn Ferry of $64.2 million with a margin of 9.0%, an increase of 60bps. Adjusted EBITDA was $129.5 million in Q4 FY'26 compared to $121.1 million in Q4 FY'25. Adjusted EBITDA margin was 17.0% in both Q4 FY'26 and Q4 FY'25. Increases in net income attributable to Korn Ferry and margin, as well as Adjusted EBITDA, were primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and costs of services.

Fiscal 2026 Full Year Results

The Company reported fee revenue in FY'26 of $2,907.5 million, an increase of 7% year-over-year (up 5% at constant currency), led by Professional Search & Interim up 11%, Executive Search up 9%, and Consulting and RPO, both up approximately 4%.

Net income attributable to Korn Ferry was $277.4 million with a margin of 9.5% in FY'26, compared to net income attributable to Korn Ferry of $246.1 million with a margin of 9.0% in FY'25, an increase of 50bps. Adjusted EBITDA was $497.8 million in FY'26 compared to $463.9 million in FY'25. Adjusted EBITDA margin was 17.1% in FY'26, essentially flat compared to the year-ago period. Increases in net income attributable to Korn Ferry and margin, as well as Adjusted EBITDA, were primarily due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.

Results by Solution

Selected Consulting Data

(dollars in millions) (a)

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

181.9

169.4

691.7

662.7

Total revenue

185.3

172.5

704.1

674.1

Estimated remaining fees under existing contracts (b)

390.1

367.7

390.1

367.7

Ending number of consultants and execution staff (c)

1,522

1,599

1,522

1,599

Hours worked in thousands (d)

366

373

1,426

1,510

Average bill rate (e)

442

413

458

439

Adjusted Results (f):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

30.9

29.1

118.4

115.5

Adjusted EBITDA margin

17.0

17.2

17.1

17.4

(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:

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Management separation charges (g)

—

4.6

—

4.6

Restructuring charges, net

—

1.7

Gain on modification of office lease

—

(4.1

)

—

(g)

Contractual obligations due upon executive's death.

Fee revenue was $181.9 million in Q4 FY'26 compared to $169.4 million in Q4 FY'25, an increase of $12.5 million or 7% (up 5% on a constant currency basis). The year-over-year increase in Consulting fee revenue was primarily driven by higher fee revenue in leadership development, assessment & succession and organizational strategy offerings.

Adjusted EBITDA was $30.9 million in Q4 FY'26 compared to $29.1 million in the year-ago quarter. Adjusted EBITDA margin was 17.0% in Q4 FY'26, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was primarily from higher fee revenue, partially offset by an increase in compensation and benefits expenses.

Selected Digital Data

(dollars in millions) (a)

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

89.3

91.6

363.5

Total revenue

89.7

91.6

364.4

363.7

Estimated remaining fees under existing contracts (b)

416.9

392.6

416.9

392.6

Ending number of consultants

233

244

233

244

Subscription & License fee revenue

38.0

34.5

148.6

137.7

Adjusted Results (c):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

27.7

28.5

113.1

112.7

Adjusted EBITDA margin

31.0

31.1

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:

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Impairment of fixed assets

—

0.4

Gain on modification of office lease

—

(2.0

)

—

Fee revenue was $89.3 million in Q4 FY'26 compared to $91.6 million in Q4 FY'25, a decrease of $2.3 million or 3% (down 6% on a constant currency basis).

Adjusted EBITDA was $27.7 million in Q4 FY'26, compared to $28.5 million in the year-ago quarter. Adjusted EBITDA margin was 31.0%, relatively unchanged from the year-ago quarter.

Selected Executive Search Data (a)

(dollars in millions) (b)

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

242.0

227.0

924.1

846.2

Total revenue

244.1

229.1

932.1

854.1

Estimated remaining fees under existing contracts (c)

73.2

69.6

73.2

69.6

Ending number of consultants

566

560

566

560

Average number of consultants

565

560

563

551

Engagements billed

3,794

3,827

9,511

9,151

New engagements (d)

1,712

1,738

6,514

6,325

Adjusted Results (e):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

64.0

54.2

237.4

206.2

Adjusted EBITDA margin

26.4

23.9

25.7

24.4

(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:

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Impairment of right-of-use assets

—

2.5

Impairment of fixed assets

—

0.2

Gain on modification of office lease

—

(3.7

)

—

Restructuring charges, net

—

0.2

Fee revenue was $242.0 million in Q4 FY'26 compared to $227.0 million in Q4 FY'25, an increase of $15.0 million or 7% (up 5% at constant currency). The year-over-year increase in fee revenue was driven by an increase in the weighted-average fees billed per engagement, resulting from more search work at higher levels. The Company experienced fee revenue growth in all regions.

Adjusted EBITDA was $64.0 million in Q4 FY'26 compared to $54.2 million in the year-ago quarter, an increase of $9.8 million or 18% year-over-year. Adjusted EBITDA margin was 26.4%, compared to 23.9% in the year-ago quarter. The increase in Adjusted EBITDA and Adjusted EBITDA margin was primarily due to an increase in fee revenue combined with lower general and administrative expenses, partially offset by an increase in compensation and benefits expenses.

Selected Professional Search & Interim Data

(dollars in millions) (a)

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

149.1

130.7

561.1

503.5

Total revenue

150.4

131.7

566.3

507.2

Permanent Placement:

Fee revenue

59.8

50.9

222.4

203.8

Estimated remaining fees under existing contracts (b)

16.5

14.1

16.5

14.1

Engagements billed

1,784

1,829

4,835

4,830

New engagements (c)

1,034

1,009

3,902

3,811

Ending number of consultants

290

309

290

309

Interim:

Fee revenue

89.3

79.8

338.7

299.7

Estimated remaining fees under existing contracts (b)

144.1

107.6

144.1

107.6

Average bill rate (d)

151

131

145

133

Average weekly billable consultants (e)

1,234

1,301

1,237

1,168

Adjusted Results (f):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

33.9

27.4

121.2

107.6

Adjusted EBITDA margin

22.7

21.0

21.6

21.4

(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:

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Integration/acquisition costs

—

1.6

4.4

6.0

Gain on modification of office lease

—

(2.6

)

—

Fee revenue was $149.1 million in Q4 FY'26 compared to $130.7 million in Q4 FY'25, an increase of $18.4 million or 14% (up 12% at constant currency). Fee revenue increased due to higher fee revenues in both Permanent Placement and Interim. The year-over-year increase in Interim fee revenue was primarily due to a 15% increase in average bill rate. The year-over-year increase in Permanent Placement fee revenue was driven by an increase in the weighted-average fee billed per engagement.

Adjusted EBITDA was $33.9 million in Q4 FY'26 compared to $27.4 million in the year-ago quarter. Adjusted EBITDA margin was 22.7% in Q4 FY'26 compared to 21.0% in the year-ago quarter. The increase in Adjusted EBITDA and Adjusted EBITDA margin 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)

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

97.6

93.3

367.1

354.1

Total revenue

98.7

94.8

371.8

362.0

Estimated remaining fees under existing contracts (b)

842.2

758.0

842.2

758.0

RPO new business (c)

137.2

118.8

543.9

533.4

Adjusted Results (d):

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

15.5

14.5

57.7

52.6

Adjusted EBITDA margin

15.8

15.5

15.7

14.9

(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:

Fourth Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

—

(1.5

)

—

Fee revenue was $97.6 million in Q4 FY'26 compared to $93.3 million in Q4 FY'25, an increase of $4.3 million or 5% (up 3% at constant currency). RPO fee revenue increased primarily due to new logo client wins in North America.

Adjusted EBITDA was $15.5 million in Q4 FY'26 compared to $14.5 million in the year-ago quarter. Adjusted EBITDA margin was 15.8% in Q4 FY'26, compared to 15.5% in Q4 FY'25.

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:

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:

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, 6) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices and 7) management separation charges due to contractual obligations due upon executive's death. 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

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

Three Months Ended

April 30,

Year Ended

April 30,

2026

2025

2026

2025

(unaudited)

Fee revenue

759,772

712,048

2,907,469

2,730,088

Reimbursed out-of-pocket engagement expenses

8,484

7,779

31,172

30,998

Total revenue

768,256

719,827

2,938,641

2,761,086

Compensation and benefits

486,737

443,503

1,867,005

1,758,024

General and administrative expenses

67,659

68,623

247,727

258,488

Reimbursed expenses

8,484

7,779

31,172

30,998

Cost of services

82,262

74,827

319,150

285,075

Depreciation and amortization

21,591

20,531

98,844

80,287

Restructuring charges, net

—

1,892

Total operating expenses

666,733

615,263

2,563,898

2,414,764

Operating income

101,523

104,564

374,743

346,322

Other income (loss), net

6,410

(10,306

)

33,705

18,953

Interest expense, net

(5,056

)

(5,331

)

(19,998

)

(20,363

)

Income before provision for income taxes

102,877

88,927

388,450

344,912

Income tax provision

29,052

23,789

107,630

93,836

Net income

73,825

65,138

280,820

251,076

Net income attributable to noncontrolling interest

(691

)

(894

)

(3,386

)

(5,014

)

Net income attributable to Korn Ferry

73,134

64,244

277,434

246,062

Earnings per common share attributable to Korn Ferry:

Basic

1.42

1.23

5.33

4.69

Diluted

1.39

1.21

5.22

4.60

Weighted-average common shares outstanding:

Basic

50,932

51,599

51,428

51,778

Diluted

51,922

52,504

52,519

52,806

KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY REPORTING SEGMENT

(dollars in thousands)

(unaudited)

Three Months Ended April 30,

Year Ended April 30,

2026

2025

% Change

2026

2025

% Change

Fee revenue:

Consulting

181,920

169,363

7.4

691,654

662,708

4.4

Digital

89,282

91,634

(2.6

363,523

363,530

—

Executive Search:

North America

156,095

143,014

9.1

583,394

535,921

8.9

EMEA

54,135

53,479

1.2

215,134

194,088

10.8

Asia Pacific

24,622

23,630

4.2

97,527

87,337

11.7

Latin America

7,099

6,880

3.2

28,049

28,862

(2.8

Total Executive Search (a)

241,951

227,003

6.6

924,104

846,208

9.2

Professional Search & Interim

149,060

130,710

14.0

561,077

503,515

11.4

RPO

97,559

93,338

4.5

367,111

354,127

3.7

Total fee revenue

759,772

712,048

6.7

2,907,469

2,730,088

6.5

Reimbursed out-of-pocket engagement expenses

8,484

7,779

9.1

31,172

30,998

0.6

Total revenue

768,256

719,827

6.7

2,938,641

2,761,086

6.4

(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

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

April 30,

2026

April 30,

2025

ASSETS

Cash and cash equivalents

1,095,445

1,006,964

Marketable securities

38,914

36,388

Receivables due from clients, net of allowance for doubtful accounts of $42,527 and $40,461 at April 30, 2026 and 2025, respectively

573,350

565,255

Income taxes and other receivables

75,410

38,394

Unearned compensation

64,421

61,649

Prepaid expenses and other assets

58,437

41,488

Total current assets

1,905,977

1,750,138

Marketable securities, non-current

247,132

233,626

Property and equipment, net

191,531

173,610

Operating lease right-of-use assets, net

170,986

152,712

Cash surrender value of company-owned life insurance policies, net of loans

289,058

252,621

Deferred income taxes

113,207

144,560

Goodwill

950,636

948,832

Intangible assets, net

45,858

70,193

Unearned compensation, non-current

118,592

106,965

Investments and other assets

31,799

27,967

Total assets

4,064,776

3,861,224

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

49,682

58,884

Income taxes payable

19,573

23,079

Compensation and benefits payable

570,242

530,473

Operating lease liability, current

28,111

38,573

Other accrued liabilities

314,402

304,589

Total current liabilities

982,010

955,598

Deferred compensation and other retirement plans

510,774

477,770

Operating lease liability, non-current

164,899

131,762

Long-term debt

398,565

397,736

Deferred tax liabilities

5,723

5,981

Other liabilities

23,902

20,238

Total liabilities

2,085,873

1,989,085

Stockholders' equity

Common stock: $0.01 par value, 150,000 shares authorized, 79,203 and 78,264 shares issued and 50,225 and 51,458 shares outstanding at April 30, 2026 and 2025, respectively

284,370

364,425

Retained earnings

1,761,063

1,588,274

Accumulated other comprehensive loss, net

(72,827

)

(86,243

)

Total Korn Ferry stockholders' equity

1,972,606

1,866,456

Noncontrolling interest

6,297

5,683

Total stockholders' equity

1,978,903

1,872,139

Total liabilities and stockholders' equity

4,064,776

3,861,224

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands)

(unaudited)

Three Months Ended

April 30,

Year Ended

April 30,

2026

2025

2026

2025

Net income attributable to Korn Ferry

73,134

64,244

277,434

246,062

Net income attributable to non-controlling interest

691

894

3,386

5,014

Net income

73,825

65,138

280,820

251,076

Income tax provision

29,052

23,789

107,630

93,836

Income before provision for income taxes

102,877

88,927

388,450

344,912

Interest expense, net

5,056

5,331

19,998

20,363

Depreciation and amortization (1)

21,591

20,531

98,844

80,287

Management separation charges (2)

—

4,614

—

4,614

Integration/acquisition costs (3)

—

1,738

4,420

8,837

Gain on modification of office lease (4)

—

(13,907

)

—

Impairment of right-of-use assets (5)

—

2,452

Impairment of fixed assets (6)

—

509

Restructuring charges, net (7)

—

1,892

Adjusted EBITDA

129,524

121,141

497,805

463,866

Net income attributable to Korn Ferry margin

9.6

9.0

9.5

9.0

Net income attributable to non-controlling interest

0.1

0.2

Income tax provision

3.8

3.3

3.7

3.4

Interest expense, net

0.7

0.8

0.7

0.8

Depreciation and amortization (1)

2.8

2.9

3.4

2.9

Management separation charges (2)

—

0.7

—

0.2

Integration/acquisition costs (3)

—

0.2

0.3

Gain on modification of office lease (4)

—

(0.5

—

Impairment of right-of-use assets (5)

—

0.1

Impairment of fixed assets (6)

—

0.0

Restructuring charges, net (7)

—

0.1

Adjusted EBITDA margin

17.0

17.1

17.0

Net income attributable to Korn Ferry

73,134

64,244

277,434

246,062

Accelerated depreciation on Digital platform (1)

—

13,846

—

Management separation charges (2)

—

4,614

—

4,614

Integration/acquisition costs (3)

—

1,738

4,420

8,837

Gain on modification of office lease (4)

—

(13,907

)

—

Impairment of right-of-use assets (5)

—

2,452

Impairment of fixed assets (6)

—

509

Restructuring charges, net (7)

—

1,892

Tax effect on the adjusted items (8)

380

(487

)

(863

)

(3,187

)

Adjusted net income attributable to Korn Ferry

73,514

70,109

280,930

261,179

Explanation of Non-GAAP Adjustments

(1)

Depreciation and amortization includes $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the year ended April 30, 2026.

(2)

Contractual obligations due upon executive's death.

(3)

Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.

(4)

Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.

(5)

Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.

(6)

Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.

(7)

Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.

(8)

Tax effect on accelerated depreciation on Digital platform, management separation charges, integration/acquisition costs, gain on modification of office lease, impairment of right-of-use assets and fixed assets, and restructuring charges, net.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

(unaudited)

Three Months Ended

April 30,

Year Ended

April 30,

2026

2025

2026

2025

Basic earnings per common share

1.42

1.23

5.33

4.69

Accelerated depreciation on Digital platform (1)

—

0.27

—

Management separation charges (2)

—

0.09

—

0.09

Integration/acquisition costs (3)

—

0.03

0.09

0.17

Gain on modification of office lease (4)

—

(0.27

)

—

Impairment of right-of-use assets (5)

—

0.05

Impairment of fixed assets (6)

—

0.01

Restructuring charges, net (7)

—

0.03

Tax effect on the adjusted items (8)

0.01

(0.01

)

(0.02

)

(0.06

)

Adjusted basic earnings per share

1.43

1.34

5.40

4.98

Diluted earnings per common share

1.39

1.21

5.22

4.60

Accelerated depreciation on Digital platform (1)

—

0.26

—

Management separation charges (2)

—

0.09

—

0.09

Integration/acquisition costs (3)

—

0.03

0.08

0.16

Gain on modification of office lease (4)

—

(0.26

)

—

Impairment of right-of-use assets (5)

—

0.05

Impairment of fixed assets (6)

—

0.01

Restructuring charges, net (7)

—

0.03

Tax effect on the adjusted items (8)

0.01

(0.01

)

(0.02

)

(0.06

)

Adjusted diluted earnings per share

1.40

1.32

5.28

4.88

Explanation of Non-GAAP Adjustments

(1)

Depreciation and amortization includes $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the year ended April 30, 2026.

(2)

Contractual obligations due upon executive's death.

(3)

Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.

(4)

Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.

(5)

Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.

(6)

Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.

(7)

Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.

(8)

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

(dollars in thousands)

(unaudited)

Three Months Ended April 30,

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

73,134

9.6

64,244

9.0

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Consulting

181,920

185,298

30,923

17.0

169,363

172,537

29,055

17.2

Digital

89,282

89,702

27,691

31.0

91,634

91,642

28,477

31.1

Executive Search:

North America

156,095

157,748

48,371

31.0

143,014

144,673

39,062

27.3

EMEA

54,135

54,440

9,199

17.0

53,479

53,773

9,092

17.0

Asia Pacific

24,622

24,817

5,290

21.5

23,630

23,802

4,965

21.0

Latin America

7,099

7,108

1,106

15.6

6,880

6,884

1,103

16.0

Total Executive Search

241,951

244,113

63,966

26.4

227,003

229,132

54,222

23.9

Professional Search & Interim

149,060

150,419

33,863

22.7

130,710

131,674

27,426

21.0

RPO

97,559

98,724

15,455

15.8

93,338

94,842

14,499

15.5

Corporate

—

(42,374

)

—

(32,538

)

Consolidated

759,772

768,256

129,524

17.0

712,048

719,827

121,141

17.0

Year Ended April 30,

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

277,434

9.5

246,062

9.0

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Consulting

691,654

704,129

118,413

17.1

662,708

674,070

115,481

17.4

Digital

363,523

364,383

113,129

31.1

363,530

363,727

112,696

31.0

Executive Search:

North America

583,394

589,313

173,703

29.8

535,921

542,068

148,242

27.7

EMEA

215,134

216,517

36,572

17.0

194,088

195,268

31,689

16.3

Asia Pacific

97,527

98,138

21,475

22.0

87,337

87,840

18,119

20.7

Latin America

28,049

28,092

5,603

20.0

28,862

28,876

8,149

28.2

Total Executive Search

924,104

932,060

237,353

25.7

846,208

854,052

206,199

24.4

Professional Search & Interim

561,077

566,253

121,156

21.6

503,515

507,246

107,600

21.4

RPO

367,111

371,816

57,658

15.7

354,127

361,991

52,635

14.9

Corporate

—

(149,904

)

—

(130,745

)

Consolidated

2,907,469

2,938,641

497,805

17.1

2,730,088

2,761,086

463,866

17.0