Heidrick & Struggles Reports 15.9% Revenue Growth and Proposed Merger with Heron BidCo

Heidrick & Struggles International, Inc. reported a significant increase in financial performance for the third quarter of 2025, with total revenue reaching $327.9 million, a 15.9% rise from $282.8 million in the same period last year. The company's net revenue before reimbursements also saw a similar increase, climbing to $322.8 million from $278.6 million. This growth was primarily driven by a 17% increase in Executive Search net revenue, which amounted to $239.1 million, attributed to a rise in both the number of executive search confirmations and the average revenue per search. The On-Demand Talent and Heidrick Consulting segments also contributed positively, with net revenues of $50.9 million and $32.8 million, respectively.

In terms of profitability, Heidrick & Struggles reported a net income of $17.6 million for the third quarter, compared to $14.8 million in the prior year, reflecting a 19.5% increase. The company's operating income remained stable at $19.2 million, slightly up from $19.1 million year-over-year. However, the Adjusted EBITDA margin decreased slightly to 10.6% from 10.9%, indicating that while revenues increased, the growth in operating expenses, particularly in salaries and benefits, impacted overall profitability. Salaries and benefits expenses rose by 19% to $217.8 million, driven by higher fixed and variable compensation due to increased consultant productivity.

Heidrick & Struggles also reported a notable increase in its employee headcount, averaging 2,261 employees in the third quarter, up from 2,170 in the same quarter of 2024. The company’s strategic focus on expanding its consulting capabilities and enhancing its digital offerings has contributed to this growth. The firm has been investing in research and development, with R&D expenses increasing to $6.4 million, reflecting its commitment to developing new technologies and services.

Looking ahead, Heidrick & Struggles announced a proposed merger with Heron BidCo, LLC, which is expected to close subject to stockholder and regulatory approvals. Under the terms of the merger, shareholders will receive $59.00 in cash for each share of common stock. The merger is anticipated to streamline operations and enhance the company's market position, although it remains contingent on various closing conditions. The company expressed confidence in its ability to navigate the merger process while continuing to focus on its core business operations and strategic initiatives.