Korn Ferry Reports Flat Fee Revenue in Q3 FY'25

By Tamara Parker • Tuesday, March 11 15:18 • Permanent Link

Korn Ferry, a global organizational consulting firm, announced its third-quarter fiscal 2025 results, reporting fee revenue of $668.7 million, which remained flat year over year but increased by 2% on a constant currency basis. The company saw a 4% increase in RPO fee revenue, with new business in Q3 FY'25 totaling $210 million, 64% of which came from new client wins and 36% from renewals/extensions.

Net income attributable to Korn Ferry was $58.4 million, with a net income margin of 8.7%, showing a 10bps decrease compared to the year-ago quarter. Adjusted EBITDA was reported at $114.5 million, with an adjusted EBITDA margin of 17.1%, marking a 190bps increase from the year-ago quarter. Diluted and adjusted diluted earnings per share were $1.10 and $1.19, respectively, in Q3 FY'25.

During the quarter, the company repurchased 237,000 shares of stock for $17.9 million.

In terms of specific business lines, fee revenue in Q3 FY'25 decreased by 5% in consulting, remained flat in digital, increased by 3% in executive search, and remained flat in professional search & interim. However, fee revenue in RPO increased by 4% compared to the year-ago quarter.

Looking ahead, Korn Ferry provided an outlook for Q4 FY'25, expecting fee revenue to be in the range of $680 million and $700 million, with diluted earnings per share expected to range between $1.20 and $1.28. On a consolidated adjusted basis, the company expects adjusted diluted earnings per share to be in the range of $1.22 to $1.30.

CEO Gary D. Burnison expressed satisfaction with the third-quarter results, emphasizing the company's ability to deliver offerings and expertise that drive organizational performance in an evolving labor supply/demand imbalance and technological landscape. As a result of these announcements, the company's shares have moved 9.2% on the market, and are now trading at a price of $68.28. For the full picture, make sure to review Korn Ferry's 8-K report.

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