Korn Ferry Announces Second Quarter Fiscal 2026 Results of Operations

LOS ANGELES--( BUSINESS WIRE)--Korn Ferry (NYSE: KFY), a global consulting firm, today announced second quarter fee revenue of $721.7 million. In addition, second quarter diluted earnings per share was $1.36 and adjusted diluted earnings per share was $1.33.

“Our performance during the quarter was outstanding, as we achieved our fourth consecutive quarter of accelerated growth, led by our Marquee and Diamond accounts,“ said Gary D. Burnison, CEO, Korn Ferry. “In a world defined by disruption, digitization and economic fluctuation, organizations require more than static strategies. They need the ability to adapt, align and act. Korn Ferry sits at the intersection of these opportunities, unlocking the potential in people and organizations—synchronizing strategy, operations and talent to accelerate performance, fuel growth and inspire a legacy of change.”

Selected Financial Results

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

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

721.7

674.4

1,430.3

1,349.3

Total revenue

729.8

682.0

1,445.3

1,364.7

Estimated remaining fees under existing contracts (b)

1,842.4

1,530.4

1,842.4

1,530.4

Net income attributable to Korn Ferry

72.4

60.8

139.0

123.4

Net income attributable to Korn Ferry margin

10.0

9.0

9.7

9.1

Basic earnings per share

1.38

1.16

2.66

2.34

Diluted earnings per share

1.36

1.14

2.61

2.30

Adjusted Results (c):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

124.8

117.0

245.2

228.2

Adjusted EBITDA margin

17.3

17.4

17.1

16.9

Adjusted net income attributable to Korn Ferry (d)

70.5

64.7

139.7

127.8

Adjusted basic earnings per share (d)

1.35

1.23

2.67

2.42

Adjusted diluted earnings per share (d)

1.33

1.21

2.63

2.38

(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 lease modification, 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):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(13.9

)

—

(13.9

)

—

Integration/acquisition costs

1.3

3.9

2.8

5.0

Restructuring charges, net

—

0.6

—

0.6

(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):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(13.9

)

—

(13.9

)

—

Accelerated depreciation on Digital platform

10.2

—

12.2

—

Integration/acquisition costs

1.3

3.9

2.8

5.0

Restructuring charges, net

—

0.6

—

0.6

Tax effect on the adjusted items

0.5

(0.6

)

(0.4

)

(1.1

)

The Company reported fee revenue in Q2 FY'26 of $721.7 million, an increase of 7% year-over-year (up 6.0% at constant currency).

Net income attributable to Korn Ferry was $72.4 million with a margin of 10.0% in Q2 FY'26, compared to Q2 FY'25 net income attributable to Korn Ferry of $60.8 million with a margin of 9.0%, an increase of 100bps. 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 increases in compensation and benefits expenses and cost of services.

Adjusted EBITDA was $124.8 million in Q2 FY'26 compared to $117.0 million in Q2 FY'25. Adjusted EBITDA margin was 17.3% in Q2 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 increases in compensation and benefits expenses and cost of services.

Results by Solution

Selected Consulting Data

(dollars in millions) (a)

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

172.8

166.8

342.8

334.6

Total revenue

175.9

169.4

348.6

340.2

Estimated remaining fees under existing contracts (b)

373.0

352.2

373.0

352.2

Ending number of consultants and execution staff (c)

1,537

1,646

1,537

1,646

Hours worked in thousands (d)

376

398

743

793

Average bill rate (e)

460

419

461

422

Adjusted Results (f):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

30.3

29.1

59.1

58.4

Adjusted EBITDA margin

17.5

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:

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(4.1

)

—

(4.1

)

—

Restructuring charges, net

—

0.4

—

0.4

Fee revenue was $172.8 million in Q2 FY'26 compared to $166.8 million in Q2 FY'25, an increase of $6.0 million or 4% (up 3% on a constant currency basis). The year-over-year increase in Consulting fee revenue was primarily driven by a 10% increase in average bill rates.

Adjusted EBITDA was $30.3 million in Q2 FY'26 compared to $29.1 million in the year-ago quarter. Adjusted EBITDA margin in the quarter was 17.5%, flat year-over-year.

Selected Digital Data

(dollars in millions) (a)

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

91.0

92.9

180.2

181.1

Total revenue

91.2

93.0

180.5

181.2

Estimated remaining fees under existing contracts (b)

397.2

371.7

397.2

371.7

Ending number of consultants

231

260

231

260

Subscription & License fee revenue

36.2

34.6

73.4

68.7

Adjusted Results (c):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

28.7

29.2

56.3

55.8

Adjusted EBITDA margin

31.6

31.4

31.3

30.8

Numbers may not total due to rounding.

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

Adjusted results exclude the following:

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(2.0

)

—

(2.0

)

—

Fee revenue was $91.0 million in Q2 FY'26 compared to $92.9 million in Q2 FY'25, a decrease of $1.9 million or 2% (down 3% on a constant currency basis).

Adjusted EBITDA was $28.7 million in Q2 FY'26, compared to $29.2 million in the year-ago quarter. Adjusted EBITDA margin was 31.6%, essentially flat compared to the year-ago quarter.

Selected Executive Search Data (a)

(dollars in millions) (b)

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

226.0

206.0

450.2

414.6

Total revenue

227.9

208.0

454.1

418.3

Estimated remaining fees under existing contracts (c)

72.8

62.2

72.8

62.2

Ending number of consultants

569

555

569

555

Average number of consultants

572

557

565

549

Engagements billed

3,762

3,566

5,826

5,474

New engagements (d)

1,633

1,567

3,229

3,123

Adjusted Results (e):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

57.8

51.4

115.2

100.8

Adjusted EBITDA margin

25.6

24.9

25.6

24.3

(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:

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(3.7

)

—

(3.7

)

—

Restructuring charges, net

—

0.2

—

0.2

Fee revenue was $226.0 million in Q2 FY'26 compared to $206.0 million in Q2 FY'25, an increase of $20.0 million or 10% (up 9% 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 North America, EMEA and APAC regions.

Adjusted EBITDA was $57.8 million in Q2 FY'26 compared to $51.4 million in the year-ago quarter, an increase of 12% year-over-year. Adjusted EBITDA margin increased by 70bps to 25.6% in Q2 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin was due to higher fee revenue, partially offset by an increase in compensation and benefits expense.

Selected Professional Search & Interim Data

(dollars in millions) (a)

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

141.1

121.1

275.0

242.8

Total revenue

142.5

122.0

277.6

244.7

Permanent Placement:

Fee revenue

56.2

52.8

110.9

105.0

Estimated remaining fees under existing contracts (b)

15.9

14.2

15.9

14.2

Engagements billed

1,843

1,740

2,918

2,844

New engagements (c)

1,004

947

1,967

1,919

Ending number of consultants

301

292

301

292

Interim:

Fee revenue

84.9

68.3

164.1

137.8

Estimated remaining fees under existing contracts (b)

96.5

70.9

96.5

70.9

Average bill rate (d)

142

140

137

Average weekly billable consultants (e)

1,237

980

1,227

1,024

Adjusted Results (f):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

30.2

27.2

58.2

52.9

Adjusted EBITDA margin

21.4

22.5

21.2

21.8

(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)

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:

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(2.6

)

—

(2.6

)

—

Integration/acquisition costs

1.3

1.4

2.8

2.5

Fee revenue was $141.1 million in Q2 FY'26 compared to $121.1 million in Q2 FY'25, an increase of $20.0 million or 17% (up 16% at constant currency). Fee revenue increased primarily due to higher fee revenue from Interim associated with the acquisition of Trilogy International effective November 1, 2024.

Adjusted EBITDA was $30.2 million in Q2 FY'26 compared to $27.2 million in the year-ago quarter. Adjusted EBITDA margin was 21.4% in Q2 FY'26, a decrease of 110bps compared to the year-ago quarter. Adjusted EBITDA increased due to an increase in fee revenue, partially offset by an increase in cost of services. Adjusted EBITDA margin decreased due to the growth in fee revenue from Interim services which have lower margins than permanent placement.

Selected Recruitment Process Outsourcing ("RPO") Data

(dollars in millions) (a)

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

90.8

87.6

182.1

176.1

Total revenue

92.3

89.6

184.5

180.3

Estimated remaining fees under existing contracts (b)

886.9

659.2

886.9

659.2

RPO new business (c)

253.0

101.1

352.3

204.7

Adjusted Results (d):

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

14.2

12.9

28.6

25.4

Adjusted EBITDA margin

15.7

14.7

15.7

14.4

(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)

Estimated total value of a contract at the point of execution of the contract.

(d)

Adjusted results exclude the following:

Second Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

(1.5

)

—

(1.5

)

—

Fee revenue was $90.8 million in Q2 FY'26 compared to $87.6 million in Q2 FY'25, an increase of $3.2 million or 4% (up 3% at constant currency). RPO fee revenue increased primarily due to new logo clients in North America.

Adjusted EBITDA was $14.2 million in Q2 FY'26 compared to $12.9 million in the year-ago quarter. Adjusted EBITDA margin increased 100bps to 15.7% in Q2 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue.

Outlook

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

On a consolidated adjusted basis:

Q3 FY’26

Earnings Per Share

Outlook

Low

High

Consolidated diluted earnings per share

1.15

1.21

Integration/acquisition costs and accelerated depreciation on Digital platform

0.05

Tax rate impact

(0.01

)

(0.01

)

Consolidated adjusted diluted earnings per share (1)

(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 (EST) 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 impacts of sunsetting our Digital platform, 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, 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 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:

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 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 and 4) accelerated depreciation associated with the decision to sunset our Digital platform. 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

October 31,

Six Months Ended

October 31,

2025

2024

2025

2024

(unaudited)

Fee revenue

721,699

674,365

1,430,312

1,349,311

Reimbursed out-of-pocket engagement expenses

8,101

7,595

15,031

15,410

Total revenue

729,800

681,960

1,445,343

1,364,721

Compensation and benefits

462,034

437,427

923,445

889,202

General and administrative expenses

50,250

64,541

114,124

124,540

Reimbursed expenses

8,101

7,595

15,031

15,410

Cost of services

79,087

64,657

156,281

132,201

Depreciation and amortization

31,573

19,688

54,259

39,266

Restructuring charges, net

—

576

—

576

Total operating expenses

631,045

594,484

1,263,140

1,201,195

Operating income

98,755

87,476

182,203

163,526

Other income, net

7,075

5,391

19,827

19,896

Interest expense, net

(5,763

)

(5,626

)

(9,279

)

(9,571

)

Income before provision for income taxes

100,067

87,241

192,751

173,851

Income tax provision

26,645

24,898

51,895

47,252

Net income

73,422

62,343

140,856

126,599

Net income attributable to noncontrolling interest

(1,023

)

(1,543

)

(1,821

)

(3,195

)

Net income attributable to Korn Ferry

72,399

60,800

139,035

123,404

Earnings per common share attributable to Korn Ferry:

Basic

1.38

1.16

2.66

2.34

Diluted

1.36

1.14

2.61

2.30

Weighted-average common shares outstanding:

Basic

51,745

51,957

51,606

51,953

Diluted

52,517

52,750

52,557

52,864

KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY REPORTING SEGMENT

(dollars in thousands)

(unaudited)

Three Months Ended October 31,

Six Months Ended October 31,

2025

2024

% Change

2025

2024

% Change

Fee revenue:

Consulting

172,841

166,771

3.6

342,803

334,641

2.4

Digital

91,029

92,893

(2.0

180,227

181,073

(0.5

Executive Search:

North America

142,105

129,891

9.4

281,759

264,643

6.5

EMEA

51,900

46,788

10.9

105,681

92,769

13.9

Asia Pacific

24,131

21,464

12.4

48,832

42,043

16.1

Latin America

7,815

7,856

(0.5

13,932

15,179

(8.2

Total Executive Search (a)

225,951

205,999

9.7

450,204

414,634

8.6

Professional Search & Interim

141,099

121,107

16.5

275,000

242,848

13.2

RPO

90,779

87,595

3.6

182,078

176,115

3.4

Total fee revenue

721,699

674,365

7.0

1,430,312

1,349,311

6.0

Reimbursed out-of-pocket engagement expenses

8,101

7,595

6.7

15,031

15,410

(2.5

Total revenue

729,800

681,960

7.0

1,445,343

1,364,721

5.9

(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)

October 31,

2025

April 30,

2025 (1)

(unaudited)

ASSETS

Cash and cash equivalents

761,579

1,006,964

Marketable securities

39,509

36,388

Receivables due from clients, net of allowance for doubtful accounts of $43,418 and $40,461 at October 31, 2025 and April 30, 2025, respectively

607,303

565,255

Income taxes and other receivables

75,254

38,394

Unearned compensation

67,603

61,649

Prepaid expenses and other assets

54,989

41,488

Total current assets

1,606,237

1,750,138

Marketable securities, non-current

237,227

233,626

Property and equipment, net

176,506

173,610

Operating lease right-of-use assets, net

131,861

152,712

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

270,984

252,621

Deferred income taxes

127,324

144,560

Goodwill

948,284

948,832

Intangible assets, net

57,901

70,193

Unearned compensation, non-current

137,290

106,965

Investments and other assets

29,319

27,967

Total assets

3,722,933

3,861,224

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

53,032

58,884

Income taxes payable

23,243

23,079

Compensation and benefits payable

355,256

530,473

Operating lease liability, current

32,996

38,573

Other accrued liabilities

284,722

304,589

Total current liabilities

749,249

955,598

Deferred compensation and other retirement plans

476,882

477,770

Operating lease liability, non-current

118,563

131,762

Long-term debt

398,145

397,736

Deferred tax liabilities

6,276

5,981

Other liabilities

24,033

20,238

Total liabilities

1,773,148

1,989,085

Stockholders' equity

Common stock: $0.01 par value, 150,000 shares authorized, 79,136 and 78,264 shares issued and 51,694 and 51,458 shares outstanding at October 31, 2025 and April 30, 2025, respectively

355,151

364,425

Retained earnings

1,675,964

1,588,274

Accumulated other comprehensive loss, net

(86,960

)

(86,243

)

Total Korn Ferry stockholders' equity

1,944,155

1,866,456

Noncontrolling interest

5,630

5,683

Total stockholders' equity

1,949,785

1,872,139

Total liabilities and stockholders' equity

3,722,933

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

October 31,

Six Months Ended

October 31,

2025

2024

2025

2024

Net income attributable to Korn Ferry

72,399

60,800

139,035

123,404

Net income attributable to non-controlling interest

1,023

1,543

1,821

3,195

Net income

73,422

62,343

140,856

126,599

Income tax provision

26,645

24,898

51,895

47,252

Income before provision for income taxes

100,067

87,241

192,751

173,851

Interest expense, net

5,763

5,626

9,279

9,571

Depreciation and amortization (1)

31,573

19,688

54,259

39,266

Integration/acquisition costs (2)

1,325

3,896

2,833

4,972

Gain on modification of office lease (3)

(13,907

)

—

(13,907

)

—

Restructuring charges, net (4)

—

576

—

576

Adjusted EBITDA

124,821

117,027

245,215

228,236

Net income attributable to Korn Ferry margin

10.0

9.0

9.7

9.1

Net income attributable to non-controlling interest

0.1

0.2

0.1

0.3

Income tax provision

3.7

3.6

3.5

Interest expense, net

0.8

0.9

0.7

Depreciation and amortization (1)

4.4

2.9

3.8

2.9

Integration/acquisition costs (2)

0.2

0.6

0.2

0.4

Gain on modification of office lease (3)

(1.9

—

(1.0

—

Restructuring charges, net (4)

—

0.1

—

0.0

Adjusted EBITDA margin

17.3

17.4

17.1

16.9

Net income attributable to Korn Ferry

72,399

60,800

139,035

123,404

Accelerated depreciation on Digital platform (1)

10,173

—

12,150

—

Integration/acquisition costs (2)

1,325

3,896

2,833

4,972

Gain on modification of office lease (3)

(13,907

)

—

(13,907

)

—

Restructuring charges, net (4)

—

576

—

576

Tax effect on the adjusted items (5)

505

(585

)

(378

)

(1,145

)

Adjusted net income attributable to Korn Ferry

70,495

64,687

139,733

127,807

Basic earnings per common share

1.38

1.16

2.66

2.34

Accelerated depreciation on Digital platform (1)

0.20

—

0.24

—

Integration/acquisition costs (2)

0.03

0.07

0.05

0.09

Gain on modification of office lease (3)

(0.27

)

—

(0.27

)

—

Restructuring charges, net (4)

—

0.01

—

0.01

Tax effect on the adjusted items (5)

0.01

(0.01

)

(0.01

)

(0.02

)

Adjusted basic earnings per share

1.35

1.23

2.67

2.42

Diluted earnings per common share

1.36

1.14

2.61

2.30

Accelerated depreciation on Digital platform (1)

0.19

—

0.24

—

Integration/acquisition costs (2)

0.03

0.07

0.05

0.09

Gain on modification of office lease (3)

(0.26

)

—

(0.26

)

—

Restructuring charges, net (4)

—

0.01

—

0.01

Tax effect on the adjusted items (5)

0.01

(0.01

)

(0.01

)

(0.02

)

Adjusted diluted earnings per share

1.33

1.21

2.63

2.38

(1)

Depreciation and amortization includes $10.2 million and $12.2 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and six months ended October 31, 2025, respectively.

(2)

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

(3)

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

(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, gain on modification of office lease, restructuring charges, net and accelerated depreciation on Digital platform.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

(dollars in thousands)

(unaudited)

Three Months Ended October 31,

2025

2024

Net income

attributable to

Korn Ferry

Net income

attributable

Korn Ferry

margin

Net income

attributable

Korn Ferry

Net income

attributable

Korn Ferry

margin

Consolidated

72,399

10.0

60,800

9.0

Fee

revenue

Total

revenue

Adjusted

EBITDA

Adjusted

EBITDA

margin

Fee

revenue

Total

revenue

Adjusted

EBITDA

Adjusted

EBITDA

margin

Consulting

172,841

175,930

30,264

17.5

166,771

169,384

29,106

17.5

Digital

91,029

91,237

28,732

31.6

92,893

93,038

29,188

31.4

Executive Search:

North America

142,105

143,566

41,954

29.5

129,891

131,419

36,907

28.4

EMEA

51,900

52,212

8,771

16.9

46,788

47,132

7,487

16.0

Asia Pacific

24,131

24,264

5,319

22.0

21,464

21,540

4,432

20.6

Latin America

7,815

7,819

1,734

22.2

7,856

7,859

2,552

32.5

Total Executive Search

225,951

227,861

57,778

25.6

205,999

207,950

51,378

24.9

Professional Search & Interim

141,099

142,505

30,201

21.4

121,107

121,988

27,203

22.5

RPO

90,779

92,267

14,220

15.7

87,595

89,600

12,899

14.7

Corporate

—

(36,374

)

—

(32,747

)

Consolidated

721,699

729,800

124,821

17.3

674,365

681,960

117,027

17.4

Six Months Ended October 31,

2025

2024

Net income

attributable

Korn Ferry

Net income

attributable

Korn Ferry

margin

Net income

attributable

Korn Ferry

Net income

attributable

Korn Ferry

margin

Consolidated

139,035

9.7

123,404

9.1

Fee

revenue

Total

revenue

Adjusted

EBITDA

Adjusted

EBITDA

margin

Fee

revenue

Total

revenue

Adjusted

EBITDA

Adjusted

EBITDA

margin

Consulting

342,803

348,629

59,073

17.2

334,641

340,151

58,400

17.5

Digital

180,227

180,482

56,339

31.3

181,073

181,249

55,811

30.8

Executive Search:

North America

281,759

284,781

83,194

29.5

264,643

267,506

72,005

27.2

EMEA

105,681

106,293

17,914

17.0

92,769

93,408

14,752

15.9

Asia Pacific

48,832

49,103

10,854

22.2

42,043

42,244

8,650

20.6

Latin America

13,932

13,958

3,274

23.5

15,179

15,185

5,350

35.2

Total Executive Search

450,204

454,135

115,236

25.6

414,634

418,343

100,757

24.3

Professional Search & Interim

275,000

277,646

58,228

21.2

242,848

244,718

52,909

21.8

RPO

182,078

184,451

28,562

15.7

176,115

180,260

25,393

14.4

Corporate

—

(72,223

)

—

(65,034

)

Consolidated

1,430,312

1,445,343

245,215

17.1

1,349,311

1,364,721

228,236

16.9