Korn Ferry (KFY) investor relations material

Executive summary

• Fee revenue grew 5% year-over-year to $709 million, driven by broad-based growth across Executive Search, Professional Search & Interim, and strong client relationships, with nearly 40% of revenue from marquee accounts and 25% from cross-solution referrals.

• Adjusted EBITDA increased 8% year-over-year to $120.4 million, with a margin of 17.0%, and adjusted diluted EPS rose 11% to $1.31.

• Net income attributable to shareholders was $66.6 million, up 6% year-over-year, with a margin of 9.4%.

• Continued capital investments in digital platforms, notably TalentSuite, and AI initiatives are set to enhance future growth and operational scale.

• Strong liquidity position with $963 million in cash and marketable securities, and $618 million investable cash.

Financial highlights

• Consolidated fee revenue grew 5% year-over-year to $709 million, with total revenue at $715.5 million.

• Adjusted EBITDA margin improved by 50 basis points to 17.0%.

• Adjusted diluted EPS was $1.31, up 11% year-over-year; net income margin was 9.4%.

• Estimated remaining fees under existing contracts at quarter-end were $1.71 billion, up 9% year-over-year.

• Cash and cash equivalents plus marketable securities totaled $963 million at quarter-end.

Outlook and guidance

• Q2 FY'26 fee revenue expected between $690 million and $710 million.

• Adjusted EBITDA margin forecasted at 17% to 17.5%; adjusted diluted EPS between $1.23 and $1.33.

• GAAP diluted EPS expected between $1.10 and $1.16, including $0.14 per share of accelerated depreciation due to platform transition.

• Management highlights a $450 billion addressable market and expects continued growth through diversified solutions and digital expansion.

• Sufficient liquidity is anticipated to meet capital needs, but macroeconomic uncertainty could impact demand and cash flows.