10-Q - KORN FERRY (0000056679) (Filer)

Mon, Dec 9, 8:39 PM (63 days ago)

Korn Ferry (KFY) reported its Q2 FY2025 results, showing a 4% decline in fee revenue to $674.4 million compared to the previous year. This decrease was primarily driven by lower demand in Professional Search & Interim, Consulting, and Digital segments, though Executive Search EMEA and Asia Pacific saw revenue increases. Operating income rose significantly to $87.5 million, with an operating margin of 13%, up 980 basis points year-over-year. Net income attributable to Korn Ferry was $60.8 million, a notable recovery from a net loss of $1.7 million in Q2 FY2024, driven by reduced restructuring charges. Adjusted EBITDA increased by 19% to $117 million, reflecting cost reductions in compensation and services despite lower revenues. Cash and cash equivalents decreased to $694.9 million, with a significant cash flow used in operations of $105.2 million. The company’s liquidity position remains strong, supported by a $650 million revolving credit facility, with $645.4 million available. Future operations may be impacted by ongoing economic uncertainties, but Korn Ferry is poised for growth through strategic initiatives and acquisitions, including the recent acquisition of Trilogy International.