Korn Ferry (NYSE: KFY) Q4 FY’25 Earnings

Korn Ferry (NYSE: KFY) Q4 FY’25 Results Showcase Revenue Growth and Enhanced Margins

Korn Ferry, a global consulting firm, reported its fourth-quarter and full-year fiscal year 2025 (FY’25) results as follows:

## Summary:
– **Q4 FY’25 Fee Revenue**:
– Increased to $712.0 million, marking a **3% year-over-year growth** (4% in constant currency).
– **Full Year FY’25 Fee Revenue**:
– Amounted to $2,730.1 million, noting a **1% decrease** in both actual and constant currency.
– **Net Income**:
– Fourth-quarter net income was $64.2 million, with a **margin of 9.0%**, down by 40bps from the previous year.
– Full-year net income was $246.1 million, with a **margin of 9.0%**, showing an increase of 290bps from the prior year.
– **Adjusted EBITDA**:
– Q4 FY’25 Adjusted EBITDA was $121.1 million, with a **margin of 17.0%**, up by 70bps from the previous year’s quarter.
– Full year FY’25 Adjusted EBITDA reached $463.9 million, with a **margin of 17.0%**, showing an increase of 220bps from the prior year.
– **Earnings Per Share**:
– Q4 FY’25 saw diluted earnings per share at $1.21 and adjusted diluted earnings per share at $1.32.
– Full-year FY’25 reported diluted earnings per share of $4.60 and adjusted diluted earnings per share of $4.88.
– **Shareholder Returns**:
– The company repurchased 232,000 shares worth $15.0 million and paid dividends of $25 million during the quarter.
– **Capital Allocation**:
– The company invested in acquisitions, technology enhancements, and returned capital to shareholders through share repurchases and dividends.

## Financial Results by Solution:
– **Consulting**:
– Saw a 7% decrease in fee revenue in Q4 FY’25 due to larger project durations, resulting in $169.4 million on fee revenue.
– **Digital**:
– Reported flat year-over-year fee revenue of $91.6 million in Q4 FY’25 (up 1% in constant currency).
– **Executive Search**:
– Noted a significant 14% increase in fee revenue to $227.0 million in Q4 FY’25 (15% in constant currency).
– **Professional Search & Interim**:
– Showed a 1% increase in fee revenue to $130.7 million in Q4 FY’25.
– **RPO**:
– Witnessed a 4% growth in fee revenue to $93.3 million in Q4 FY’25 (5% in constant currency).

## Outlook:
– **Q1 FY’26**:
– Expected fee revenue range of $675 million to $695 million and a diluted earnings per share range of $1.16 to $1.24.

Korn Ferry’s financial performance in Q4 FY’25 reflects steady growth in fee revenue, improved margins, and a balanced approach to capital allocation, positioning the company for continued success into the next fiscal year.

### CONSOLIDATED STATEMENTS OF INCOME

Amounts in thousands.

### CONSOLIDATED BALANCE SHEETS

Amounts in thousands.

### RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

#### Three Months Ended April 30, 2025

#### Year Ended April 30, 2025

Amounts in thousands.