Heidrick & Struggles Reports 13.8% Revenue Growth and Profitability Recovery in Q2 2025

Heidrick & Struggles International, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenue reaching $321.9 million, a 13.8% rise from $282.9 million in the same period last year. The company's net revenue before reimbursements also saw a 13.9% increase, amounting to $317.2 million, driven by growth in its Executive Search and Heidrick Consulting segments. The Executive Search segment alone generated $238.2 million, reflecting a 13.4% increase, attributed to a 5.2% rise in executive search confirmations. The On-Demand Talent segment reported $47.9 million, up 14.3%, while Heidrick Consulting's revenue increased by 16.6% to $31.2 million.

In terms of profitability, Heidrick & Struggles achieved an operating income of $25.2 million for the quarter, a notable recovery from an operating loss of $4.2 million in the prior year. The net income for the quarter was $21.1 million, compared to a loss of $5.2 million in the same quarter of 2024. The company’s Adjusted EBITDA also improved, reaching $33.9 million, a 17.5% increase from $28.8 million in the previous year, with an Adjusted EBITDA margin of 10.7%, up from 10.3%.

The company has made strategic adjustments, including a focus on enhancing its digital capabilities and expanding its service offerings. The number of consultants in the Executive Search and Heidrick Consulting segments increased to 420 and 90, respectively, as of June 30, 2025, compared to 415 and 85 a year earlier. This growth in headcount is indicative of the company's efforts to bolster its consulting capabilities and meet rising client demand. Additionally, the company has been actively managing its operational costs, with general and administrative expenses decreasing by 9.2% to $42.2 million, primarily due to adjustments in earnout accruals and reduced costs associated with events.

Looking ahead, Heidrick & Struggles remains optimistic about its growth trajectory, supported by a robust pipeline of executive search engagements and consulting projects. The company is also focused on leveraging its digital tools, such as the Heidrick Leadership Framework and Heidrick Connect, to enhance client engagement and service delivery. The firm has a strong liquidity position, with cash and cash equivalents totaling $211.2 million as of June 30, 2025, down from $515.6 million at the end of 2024, reflecting strategic investments in marketable securities and capital expenditures. The company anticipates that its ongoing investments in technology and talent will continue to drive growth and improve operational efficiency in the coming quarters.