Korn Ferry (KFY) 46th Annual William Blair Growth Stock Conference summary

Business evolution and strategy

• Expanded from executive search to a $3B global talent solutions provider, integrating consulting, digital, and RPO services.

• Proprietary data and behavioral science are core differentiators, with over 115M executive assessments and 44M employee engagement data points.

• The 'We Are Korn Ferry' initiative focuses on unified client engagement and cross-selling, aiming to deepen relationships with the top 4,500 clients who generate 90% of fee revenue.

• Cross-referral rates have increased by 200 basis points in FY26, with a goal to reach the 30% range.

• Backlog stands at $2B, with $1B to be recognized in the next 12 months, reflecting a shift to more recurring revenue.

Market opportunity and AI integration

• Sees a $450B addressable market, with significant growth potential beyond current $3B revenue.

• AI is viewed as a tailwind, supporting growth in executive search and PS&I segments, outperforming peers.

• AI is used to enhance productivity, focusing on automating repetitive tasks while retaining workforce for growth.

• Internal AI deployment targets areas with critical mass and redundancy, aiming for efficiency gains rather than workforce reduction.

• Approach is 'AI plus people,' leveraging both for competitive advantage.

Financial performance and outlook

• Trailing 12-month fee revenue is $2.9B, with $500M Adjusted EBITDA and a 17.1% margin.

• 10-year CAGR: 10% fee revenue, 11% Adjusted EBITDA, and 10% margin.

• Long-term targets: 16%-18% EBITDA margin, with mix-driven variability; digital growth could push margins higher.

• Balanced capital allocation: preference for reinvestment, steady dividend increases (currently 3% yield), and opportunistic buybacks or M&A.