Korn Ferry Reports $2.73 Billion Fee Revenue, Net Income Rises 45% to $246.1 Million

Korn Ferry reported a fee revenue of $2.73 billion for the fiscal year ending April 30, 2025, a decrease of 1% from the previous year’s $2.76 billion. The company's net income attributable to Korn Ferry rose significantly to $246.1 million, reflecting a 45% increase from $169.2 million in fiscal 2024. This growth in profitability was attributed to a reduction in compensation and benefits expenses, restructuring charges, and cost of services, despite a decline in overall fee revenue. The adjusted EBITDA for the year was $463.9 million, marking a 14% increase from $408.2 million in the prior year, with an adjusted EBITDA margin of 17.0%, up from 14.8%.

In terms of operational changes, Korn Ferry completed the acquisition of Trilogy International for $44.4 million in November 2024, which is expected to enhance its Professional Search & Interim segment. The company also reported a 7% reduction in average headcount, which contributed to a decrease in compensation and benefits expenses by $86.2 million. As of April 30, 2025, Korn Ferry employed 9,253 full-time professionals, down from 9,953 in the previous year. The company’s Marquee and Diamond Accounts program, which includes 350 strategic partnerships, accounted for approximately 39% of consolidated fee revenue, reflecting a 3% growth compared to fiscal 2024.

Korn Ferry's geographic footprint remains extensive, with operations in 51 countries and 103 offices worldwide. The company reported that 47% of its fee revenue was generated from international operations. The Executive Search segment saw a revenue increase of 5% in North America, driven by a rise in both the number of engagements and the average fee billed per engagement. However, the Professional Search & Interim segment experienced a 7% decline in fee revenue, attributed to decreased demand in the current economic environment.

Looking ahead, Korn Ferry expressed confidence in its strategic initiatives, particularly in integrating technology and deepening client relationships. The company plans to continue investing in innovation and client-tailored solutions to support long-term growth. Korn Ferry's balanced approach to capital allocation includes returning excess capital to shareholders through dividends and share repurchases, with a quarterly dividend of $0.48 per share declared for payment in July 2025. The company remains focused on navigating the challenges posed by economic conditions while leveraging its capabilities to drive performance and growth.