Heidrick & Struggles Reports 6.8% Revenue Growth in Q1 2025

Heidrick & Struggles International, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $287.4 million, a 6.8% increase from $269.1 million in the same period last year. The company's net revenue before reimbursements rose by 6.9% to $283.6 million, driven primarily by a 5.9% increase in Executive Search net revenue, which reached $213.4 million. The On-Demand Talent segment also saw significant growth, with revenue increasing by 12.4% to $42.6 million, attributed to a higher volume of projects. However, net income for the quarter decreased to $13.3 million, down from $14.0 million in the prior year, resulting in diluted earnings per share of $0.62 compared to $0.67.

The company's operating expenses increased by 7.3% to $271.2 million, with salaries and benefits accounting for a significant portion of this rise, up 8.6% to $189.5 million. This increase was driven by higher fixed and variable compensation costs, reflecting increased consultant productivity. General and administrative expenses remained stable at $41.4 million, while the cost of services rose by 9.6% to $30.1 million, primarily due to the growth in On-Demand Talent and consulting projects. The Adjusted EBITDA for the quarter improved by 12.6% to $29.1 million, with an Adjusted EBITDA margin of 10.3%, up from 9.8% in the previous year.

In terms of operational metrics, Heidrick & Struggles employed an average of 2,210 employees during the quarter, a slight decrease from 2,224 in the prior year. The number of Executive Search consultants increased marginally to 427, while Heidrick Consulting consultants decreased to 91. The company reported a productivity increase in Executive Search, with annualized net revenue per consultant rising to $2.0 million from $1.9 million. The average revenue per executive search also saw a slight increase, reaching $137,000.

Strategically, Heidrick & Struggles continues to focus on expanding its service offerings and enhancing its digital capabilities. The company is investing in technology to improve its consulting services and has introduced new digital solutions for leadership assessments and organizational culture acceleration. The firm also amended its credit agreement in March 2025, securing a $100 million revolving credit facility to support its operational and strategic initiatives.

Looking ahead, Heidrick & Struggles remains optimistic about its growth prospects, despite potential challenges from macroeconomic conditions and competitive pressures. The company aims to leverage its diversified service offerings and strong market position to drive future revenue growth and improve profitability.