US Market News
3月前
Korn Ferry Announces Third Quarter Fiscal 2026 Results of OperationsMarch 9, 2026 6:45 AM
Business Wire
Highlights
Korn Ferry reports Q3 FY'26 fee revenue of $717.4 million, an increase of 7% year-over-year with growth in all solutions.
Net income attributable to Korn Ferry increased 12% year-over-year, with a margin of 9.1%.
Adjusted EBITDA increased 8% year-over-year, with a margin of 17.2%.
Diluted and adjusted diluted earnings per share were up 12% and 8% year-over-year, respectively.
Estimated remaining fees under existing contracts at the end of the third quarter was $1.9 billion, up 11% year-over-year, led by Digital +16%, Consulting +12% and RPO +10%.
Korn Ferry (NYSE: KFY), a global consulting firm, today announced third quarter fee revenue of $717.4 million. In addition, third quarter diluted earnings per share was $1.23 and adjusted diluted earnings per share was $1.28.
“Our strong quarterly performance continues to reflect the evolution of our firm,” said Gary D. Burnison, CEO, Korn Ferry. “Today the world is enveloped by unprecedented levels of change – shifts in population, demographics and technological advancement that are converging to exert great impact on the way people live, work and consume. This environment provides tremendous opportunity for Korn Ferry."
“I am pleased with the synchronization of our expertise, globality and solutions to solve our clients’ toughest performance challenges. Most of all, I am energized by our talented colleagues around the world who are committed to enabling people and organizations to Be More Than,” added Burnison. “Success begins and ends with talent. As such, we are proud to be a Founding Partner of the LA28 Olympic and Paralympic Games, powering the people who power the Olympic Games.”
Selected Financial Results
(dollars in millions, except per share amounts) (a)
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Fee revenue
$
717.4
$
668.7
$
2,147.7
$
2,018.0
Total revenue
$
725.0
$
676.5
$
2,170.4
$
2,041.3
Estimated remaining fees under existing contracts (b)
$
1,850.8
$
1,669.4
$
1,850.8
$
1,669.4
Net income attributable to Korn Ferry
$
65.3
$
58.4
$
204.3
$
181.8
Net income attributable to Korn Ferry margin
9.1
%
8.7
%
9.5
%
9.0
%
Basic earnings per share
$
1.25
$
1.12
$
3.91
$
3.46
Diluted earnings per share
$
1.23
$
1.10
$
3.84
$
3.40
Adjusted Results (c):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Adjusted EBITDA
$
123.1
$
114.5
$
368.3
$
342.7
Adjusted EBITDA margin
17.2
%
17.1
%
17.1
%
17.0
%
Adjusted net income attributable to Korn Ferry (d)
$
67.7
$
63.3
$
207.4
$
191.1
Adjusted basic earnings per share (d)
$
1.30
$
1.21
$
3.97
$
3.64
Adjusted diluted earnings per share (d)
$
1.28
$
1.19
$
3.89
$
3.57
____________________
(a)
Numbers may not total due to rounding.
(b)
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(c)
Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, gain on modification of an office lease, restructuring charges, net and management separation charges when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Integration/acquisition costs
$
1.6
$
2.1
$
4.4
$
7.1
Restructuring charges, net
$
—
$
1.3
$
—
$
1.9
Impairment of fixed assets
$
—
$
0.5
$
—
$
0.5
Impairment of right-of-use assets
$
—
$
2.5
$
—
$
2.5
Gain on modification of office lease
$
—
$
—
$
(13.9
)
$
—
____________________
(d)
Adjusted net income attributable to Korn Ferry, Adjusted basic earnings per share and Adjusted diluted earnings per share are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Accelerated depreciation on Digital platform
$
1.7
$
—
$
13.8
$
—
Integration/acquisition costs
$
1.6
$
2.1
$
4.4
$
7.1
Restructuring charges, net
$
—
$
1.3
$
—
$
1.9
Impairment of fixed assets
$
—
$
0.5
$
—
$
0.5
Impairment of right-of-use assets
$
—
$
2.5
$
—
$
2.5
Gain on modification of office lease
$
—
$
—
$
(13.9
)
$
—
Tax effect on the adjusted items
$
(0.9
)
$
(1.6
)
$
(1.2
)
$
(2.7
)
The Company reported fee revenue in Q3 FY'26 of $717.4 million, an increase of 7% year-over-year (up 4% at constant currency). Fee revenue grew in all solutions year-over-year, led by Executive Search at 13%, followed by Professional Search & Interim and Consulting, both at 5%.
Net income attributable to Korn Ferry was $65.3 million with a margin of 9.1% in Q3 FY'26, compared to Q3 FY'25 net income attributable to Korn Ferry of $58.4 million with a margin of 8.7%, an increase of 40bps. Net income attributable to Korn Ferry increased from the year-ago quarter primarily due to an increase in fee revenue and the impact of adjusted items in item (d) above, partially offset by an increase in compensation and benefits expenses.
Adjusted EBITDA was $123.1 million in Q3 FY'26 compared to $114.5 million in Q3 FY'25. Adjusted EBITDA margin was 17.2% in Q3 FY'26, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by an increase in compensation and benefits expenses.
Results by Solution
Selected Consulting Data
(dollars in millions) (a)
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Fee revenue
$
166.9
$
158.7
$
509.7
$
493.3
Total revenue
$
170.2
$
161.4
$
518.8
$
501.5
Estimated remaining fees under existing contracts (b)
$
407.3
$
364.6
$
407.3
$
364.6
Ending number of consultants and execution staff (c)
1,524
1,632
1,524
1,632
Hours worked in thousands (d)
317
344
1,060
1,137
Average bill rate (e)
$
470
$
461
$
464
$
434
Adjusted Results (f):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Adjusted EBITDA
$
28.4
$
28.0
$
87.5
$
86.4
Adjusted EBITDA margin
17.0
%
17.7
%
17.2
%
17.5
%
____________________
(a)
Numbers may not total due to rounding.
(b)
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(c)
Represents number of employees originating, delivering and executing consulting services.
(d)
The number of hours worked by consultant and execution staff during the period.
(e)
The amount of fee revenue divided by the number of hours worked by consultants and execution staff.
(f)
Adjusted results exclude the following:
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Restructuring charges, net
$
—
$
1.3
$
—
$
1.7
Gain on modification of office lease
$
—
$
—
$
(4.1
)
$
—
Fee revenue was $166.9 million in Q3 FY'26 compared to $158.7 million in Q3 FY'25, an increase of $8.2 million or 5% (up 2% on a constant currency basis). The year-over-year increase in Consulting fee revenue was primarily driven by a 2% increase in average bill rates.
Adjusted EBITDA was $28.4 million in Q3 FY'26 compared to $28.0 million in the year-ago quarter. Adjusted EBITDA margin was 17.0% in Q3 FY'26 compared to 17.7% in the year-ago quarter.
Selected Digital Data
(dollars in millions) (a)
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Fee revenue
$
94.0
$
90.8
$
274.2
$
271.9
Total revenue
$
94.2
$
90.8
$
274.7
$
272.1
Estimated remaining fees under existing contracts (b)
$
428.0
$
369.6
$
428.0
$
369.6
Ending number of consultants
225
249
225
249
Subscription & License fee revenue
$
37.2
$
34.5
$
110.6
$
103.2
Adjusted Results (c):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Adjusted EBITDA
$
29.1
$
28.4
$
85.4
$
84.2
Adjusted EBITDA margin
31.0
%
31.3
%
31.2
%
31.0
%
____________________
(a)
Numbers may not total due to rounding.
(b)
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(c)
Adjusted results exclude the following:
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Impairment of fixed assets
$
—
$
0.4
$
—
$
0.4
Gain on modification of office lease
$
—
$
—
$
(2.0
)
$
—
Fee revenue was $94.0 million in Q3 FY'26 compared to $90.8 million in Q3 FY'25, an increase of $3.2 million or 4% (essentially flat on a constant currency basis). The year-over-year increase in Digital fee revenue was primarily driven by an 8% increase in Subscription & License fee revenue.
Adjusted EBITDA was $29.1 million in Q3 FY'26, compared to $28.4 million in the year-ago quarter. Adjusted EBITDA margin was 31.0%, a slight decline from the year-ago quarter.
Selected Executive Search Data(a)
(dollars in millions) (b)
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Fee revenue
$
231.9
$
204.6
$
682.2
$
619.2
Total revenue
$
233.8
$
206.6
$
687.9
$
624.9
Estimated remaining fees under existing contracts (c)
$
68.6
$
58.5
$
68.6
$
58.5
Ending number of consultants
563
560
563
560
Average number of consultants
566
558
562
551
Engagements billed
3,737
3,540
7,648
7,211
New engagements (d)
1,573
1,464
4,802
4,587
Adjusted Results (e):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Adjusted EBITDA
$
58.2
$
51.2
$
173.4
$
152.0
Adjusted EBITDA margin
25.1
%
25.0
%
25.4
%
24.5
%
____________________
(a)
Executive Search is the sum of the individual Executive Search Reporting Segments described in our annual and quarterly reporting on Forms 10-K and 10-Q and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Solutions, and financial metrics used by the Company’s investor base.
(b)
Numbers may not total due to rounding.
(c)
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(d)
Represents new engagements opened in the respective period.
(e)
Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following:
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Impairment of right-of-use assets
$
—
$
2.5
$
—
$
2.5
Impairment of fixed assets
$
—
$
0.2
$
—
$
0.2
Gain on modification of office lease
$
—
$
—
$
(3.7
)
$
—
Restructuring charges, net
$
—
$
—
$
—
$
0.2
Fee revenue was $231.9 million in Q3 FY'26 compared to $204.6 million in Q3 FY'25, an increase of $27.3 million or 13% (up 11% at constant currency). The year-over-year increase in fee revenue was driven by an increase in both the number of engagements billed and the weighted-average fee billed per engagement. The Company experienced fee revenue growth in all regions.
Adjusted EBITDA was $58.2 million in Q3 FY'26 compared to $51.2 million in the year-ago quarter, an increase of 14% year-over-year. Adjusted EBITDA margin was 25.1%, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was primarily due to an increase in fee revenue, partially offset by an increase in compensation and benefits expenses.
Selected Professional Search & Interim Data
(dollars in millions) (a)
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Fee revenue
$
137.0
$
130.0
$
412.0
$
372.8
Total revenue
$
138.2
$
130.9
$
415.8
$
375.6
Permanent Placement:
Fee revenue
$
51.7
$
47.9
$
162.6
$
152.9
Estimated remaining fees under existing contracts (b)
$
15.3
$
12.8
$
15.3
$
12.8
Engagements billed
1,715
1,675
3,847
3,780
New engagements (c)
901
883
2,868
2,802
Ending number of consultants
292
296
292
296
Interim:
Fee revenue
$
85.3
$
82.1
$
249.4
$
219.9
Estimated remaining fees under existing contracts (b)
$
106.6
$
111.5
$
106.6
$
111.5
Average bill rate (d)
$
149
$
129
$
143
$
134
Average weekly billable consultants (e)
1,257
1,324
1,238
1,124
Adjusted Results (f):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Adjusted EBITDA
$
29.1
$
27.3
$
87.3
$
80.2
Adjusted EBITDA margin
21.2
%
21.0
%
21.2
%
21.5
%
____________________
(a)
Numbers may not total due to rounding.
(b)
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(c)
Represents new engagements opened in the respective period.
(d)
Fee revenue from interim divided by the number of hours worked by consultants.
(e)
The number of billable consultants based on a weekly average in the respective period.
(f)
Adjusted results exclude the following:
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Integration/acquisition costs
$
1.6
$
2.0
$
4.4
$
4.4
Gain on modification of office lease
$
—
$
—
$
(2.6
)
$
—
Fee revenue was $137.0 million in Q3 FY'26 compared to $130.0 million in Q3 FY'25, an increase of $7.0 million or 5% (up 3% at constant currency). Fee revenue increased due to higher fee revenues in both Permanent Placement and Interim. The year-over-year increase in permanent placement fee revenue was driven by an increase in both the number of engagements billed and the weighted-average fee billed per engagement. The year-over-year increase in interim fee revenue was primarily due to a 16% increase in average bill rate.
Adjusted EBITDA was $29.1 million in Q3 FY'26 compared to $27.3 million in the year-ago quarter. Adjusted EBITDA margin was 21.2%, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.
Selected Recruitment Process Outsourcing ("RPO") Data
(dollars in millions) (a)
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Fee revenue
$
87.5
$
84.7
$
269.6
$
260.8
Total revenue
$
88.6
$
86.9
$
273.1
$
267.1
Estimated remaining fees under existing contracts (b)
$
825.0
$
752.4
$
825.0
$
752.4
RPO new business (c)
$
54.4
$
209.9
$
406.7
$
414.6
Adjusted Results (d):
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Adjusted EBITDA
$
13.6
$
12.7
$
42.2
$
38.1
Adjusted EBITDA margin
15.6
%
15.0
%
15.7
%
14.6
%
____________________
(a)
Numbers may not total due to rounding.
(b)
Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.
(c)
Estimated total value of a contract at the point of execution of the contract.
(d)
Adjusted results exclude the following:
Third Quarter
Year to Date
FY’26
FY’25
FY’26
FY’25
Gain on modification of office lease
$
—
$
—
$
(1.5
)
$
—
Fee revenue was $87.5 million in Q3 FY'26 compared to $84.7 million in Q3 FY'25, an increase of $2.8 million or 3% (up 1% at constant currency). RPO fee revenue increased primarily due to new logo clients in North America.
Adjusted EBITDA was $13.6 million in Q3 FY'26 compared to $12.7 million in the year-ago quarter. Adjusted EBITDA margin increased 60bps to 15.6% in Q3 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue, partially offset by an increase in compensation and benefits expense.
Outlook
Assuming no material negative impact from the recent Middle East conflict and that other worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:
Q4 FY’26 fee revenue is expected to be in the range of $730 million and $750 million; and
Q4 FY’26 diluted earnings per share is expected to range between $1.34 to $1.40.
Earnings Conference Call Webcast
The earnings conference call will be held today at 12:00 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at ir.kornferry.com. We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.
About Korn Ferry
Korn Ferry is a global consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That’s why the world’s most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than.
Forward-Looking Statements
Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, impact of global events on our business, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as “believes”, “expects”, “anticipates”, “goals”, “estimates”, “guidance”, “may”, “should”, “could”, “will” or “likely”, and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, trade wars, interest rates, labor market conditions, global slowdowns, or recessions, competition, geopolitical tensions, including the recent Middle East conflict, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to corporate responsibility matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property, our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the use of social media platforms, the ability to effect acquisitions and integrate acquired businesses, resulting organizational changes, our indebtedness, and those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Measures
This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In particular, it includes:
Adjusted net income attributable to Korn Ferry, adjusted to exclude accelerated depreciation on our Digital platform, integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net of income tax effect;
Adjusted basic and diluted earnings per share, adjusted to exclude cost associated with accelerated depreciation on our Digital platform, integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net of income tax effect;
Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period; and
Consolidated and Executive Search Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net when applicable, and Consolidated and Executive Search Adjusted EBITDA margin.
This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain items that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These items, which are described in the footnotes in the attached reconciliations, represent 1) costs associated with previous acquisitions, such as legal and professional fees, retention awards and on-going integration expenses, 2) gain on modification of an office lease where the Company received lease incentives to shorten the lease term, 3) restructuring charges, net to align workforce to eliminate excess capacity resulting from challenging macroeconomic business environment, 4) accelerated depreciation associated with the decision to sunset our Digital platform, 5) impairment of fixed assets primarily due to software impairment charge in our Digital segment and 6) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated and Executive Search Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company’s operating results. Management further believes that Consolidated and Executive Search Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making.
KORN FERRY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended
January 31,
Nine Months Ended
January 31,
2026
2025
2026
2025
(unaudited)
Fee revenue
$
717,385
$
668,729
$
2,147,697
$
2,018,040
Reimbursed out-of-pocket engagement expenses
7,657
7,809
22,688
23,219
Total revenue
725,042
676,538
2,170,385
2,041,259
Compensation and benefits
456,823
425,319
1,380,268
1,314,521
General and administrative expenses
65,944
65,325
180,068
189,865
Reimbursed expenses
7,657
7,809
22,688
23,219
Cost of services
80,607
78,047
236,888
210,248
Depreciation and amortization
22,994
20,490
77,253
59,756
Restructuring charges, net
—
1,316
—
1,892
Total operating expenses
634,025
598,306
1,897,165
1,799,501
Operating income
91,017
78,232
273,220
241,758
Other income, net
7,468
9,363
27,295
29,259
Interest expense, net
(5,663
)
(5,461
)
(14,942
)
(15,032
)
Income before provision for income taxes
92,822
82,134
285,573
255,985
Income tax provision
26,683
22,795
78,578
70,047
Net income
66,139
59,339
206,995
185,938
Net income attributable to noncontrolling interest
(874
)
(925
)
(2,695
)
(4,120
)
Net income attributable to Korn Ferry
$
65,265
$
58,414
$
204,300
$
181,818
Earnings per common share attributable to Korn Ferry:
Basic
$
1.25
$
1.12
$
3.91
$
3.46
Diluted
$
1.23
$
1.10
$
3.84
$
3.40
Weighted-average common shares outstanding:
Basic
51,570
51,606
51,594
51,838
Diluted
52,417
52,364
52,612
52,789
KORN FERRY AND SUBSIDIARIES
FINANCIAL SUMMARY BY REPORTING SEGMENT
(dollars in thousands)
(unaudited)
Three Months Ended
January 31,
Nine Months Ended
January 31,
2026
2025
% Change
2026
2025
% Change
Fee revenue:
Consulting
$
166,931
$
158,704
5.2
%
$
509,734
$
493,345
3.3
%
Digital
94,014
90,823
3.5
%
274,241
271,896
0.9
%
Executive Search:
North America
145,540
128,264
13.5
%
427,299
392,907
8.8
%
EMEA
55,318
47,840
15.6
%
160,999
140,609
14.5
%
Asia Pacific
24,073
21,664
11.1
%
72,905
63,707
14.4
%
Latin America
7,018
6,803
3.2
%
20,950
21,982
(4.7
%)
Total Executive Search (a)
231,949
204,571
13.4
%
682,153
619,205
10.2
%
Professional Search & Interim
137,017
129,957
5.4
%
412,017
372,805
10.5
%
RPO
87,474
84,674
3.3
%
269,552
260,789
3.4
%
Total fee revenue
717,385
668,729
7.3
%
2,147,697
2,018,040
6.4
%
Reimbursed out-of-pocket engagement expenses
7,657
7,809
(1.9
%)
22,688
23,219
(2.3
%)
Total revenue
$
725,042
$
676,538
7.2
%
$
2,170,385
$
2,041,259
6.3
%
(a)
Total Executive Search is the sum of the individual Executive Search Reporting Segments and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Solutions, and financial metrics used by the Company’s investor base.
KORN FERRY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
January 31,
2026
April 30,
2025 (1)
(unaudited)
ASSETS
Cash and cash equivalents
$
938,365
$
1,006,964
Marketable securities
38,367
36,388
Receivables due from clients, net of allowance for doubtful accounts of $45,990 and $40,461 at January 31, 2026 and April 30, 2025, respectively
626,813
565,255
Income taxes and other receivables
65,823
38,394
Unearned compensation
65,882
61,649
Prepaid expenses and other assets
53,225
41,488
Total current assets
1,788,475
1,750,138
Marketable securities, non-current
241,745
233,626
Property and equipment, net
182,572
173,610
Operating lease right-of-use assets, net
141,084
152,712
Cash surrender value of company-owned life insurance policies, net of loans
285,516
252,621
Deferred income taxes
134,199
144,560
Goodwill
951,962
948,832
Intangible assets, net
52,047
70,193
Unearned compensation, non-current
128,310
106,965
Investments and other assets
43,698
27,967
Total assets
$
3,949,608
$
3,861,224
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$
60,034
$
58,884
Income taxes payable
23,313
23,079
Compensation and benefits payable
457,225
530,473
Operating lease liability, current
29,418
38,573
Other accrued liabilities
319,565
304,589
Total current liabilities
889,555
955,598
Deferred compensation and other retirement plans
491,616
477,770
Operating lease liability, non-current
132,633
131,762
Long-term debt
398,354
397,736
Deferred tax liabilities
6,436
5,981
Other liabilities
23,049
20,238
Total liabilities
1,941,643
1,989,085
Stockholders' equity
Common stock: $0.01 par value, 150,000 shares authorized, 79,180 and 78,264 shares issued and 51,463 and 51,458 shares outstanding at January 31, 2026 and April 30, 2025, respectively
351,578
364,425
Retained earnings
1,716,206
1,588,274
Accumulated other comprehensive loss, net
(65,337
)
(86,243
)
Total Korn Ferry stockholders' equity
2,002,447
1,866,456
Noncontrolling interest
5,518
5,683
Total stockholders' equity
2,007,965
1,872,139
Total liabilities and stockholders' equity
$
3,949,608
$
3,861,224
(1)
Information is derived from audited financial statements included in our most recently filed Form 10-K.
KORN FERRY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(dollars in thousands)
(unaudited)
Three Months Ended
January 31,
Nine Months Ended
January 31,
2026
2025
2026
2025
Net income attributable to Korn Ferry
$
65,265
$
58,414
$
204,300
$
181,818
Net income attributable to non-controlling interest
874
925
2,695
4,120
Net income
66,139
59,339
206,995
185,938
Income tax provision
26,683
22,795
78,578
70,047
Income before provision for income taxes
92,822
82,134
285,573
255,985
Interest expense, net
5,663
5,461
14,942
15,032
Depreciation and amortization (1)
22,994
20,490
77,253
59,756
Integration/acquisition costs (2)
1,587
2,127
4,420
7,099
Restructuring charges, net (3)
—
1,316
—
1,892
Impairment of fixed assets (4)
—
509
—
509
Impairment of right-of-use assets (5)
—
2,452
—
2,452
Gain on modification of office lease (6)
—
—
(13,907
)
—
Adjusted EBITDA
$
123,066
$
114,489
$
368,281
$
342,725
Net income attributable to Korn Ferry margin
9.1
%
8.7
%
9.5
%
9.0
%
Net income attributable to non-controlling interest
0.1
%
0.1
%
0.1
%
0.2
%
Income tax provision
3.8
%
3.4
%
3.6
%
3.5
%
Interest expense, net
0.8
%
0.8
%
0.7
%
0.7
%
Depreciation and amortization (1)
3.2
%
3.1
%
3.6
%
3.0
%
Integration/acquisition costs (2)
0.2
%
0.3
%
0.2
%
0.4
%
Restructuring charges, net (3)
—
%
0.2
%
—
%
0.1
%
Impairment of fixed assets (4)
—
%
0.1
%
—
%
0.0
%
Impairment of right-of-use assets (5)
—
%
0.4
%
—
%
0.1
%
Gain on modification of office lease (6)
—
%
—
%
(0.6
%)
—
%
Adjusted EBITDA margin
17.2
%
17.1
%
17.1
%
17.0
%
Net income attributable to Korn Ferry
$
65,265
$
58,414
$
204,300
$
181,818
Accelerated depreciation on Digital platform (1)
1,696
—
13,846
—
Integration/acquisition costs (2)
1,587
2,127
4,420
7,099
Restructuring charges, net (3)
—
1,316
—
1,892
Impairment of fixed assets (4)
—
509
—
509
Impairment of right-of-use assets (5)
—
2,452
—
2,452
Gain on modification of office lease (6)
—
—
(13,907
)
—
Tax effect on the adjusted items (7)
(865
)
(1,555
)
(1,243
)
(2,700
)
Adjusted net income attributable to Korn Ferry
$
67,683
$
63,263
$
207,416
$
191,070
Explanation of Non-GAAP Adjustments
(1)
Depreciation and amortization includes $1.7 million and $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and nine months ended January 31, 2026, respectively.
(2)
Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.
(3)
Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(4)
Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.
(5)
Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.
(6)
Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.
(7)
Tax effect on accelerated depreciation on Digital platform, integration/acquisition costs, restructuring charges, net, impairment of fixed assets and right-of-use assets and gain on modification of office lease.
KORN FERRY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED
(unaudited)
Three Months Ended
January 31,
Nine Months Ended
January 31,
2026
2025
2026
2025
Basic earnings per common share
$
1.25
$
1.12
$
3.91
$
3.46
Accelerated depreciation on Digital platform (1)
0.04
—
0.27
—
Integration/acquisition costs (2)
0.03
0.04
0.08
0.14
Restructuring charges, net (3)
—
0.02
—
0.03
Impairment of fixed assets (4)
—
0.01
—
0.01
Impairment of right-of-use assets (5)
—
0.05
—
0.05
Gain on modification of office lease (6)
—
—
(0.27
)
—
Tax effect on the adjusted items (7)
(0.02
)
(0.03
)
(0.02
)
(0.05
)
Adjusted basic earnings per share
$
1.30
$
1.21
$
3.97
$
3.64
Diluted earnings per common share
$
1.23
$
1.10
$
3.84
$
3.40
Accelerated depreciation on Digital platform (1)
0.04
—
0.26
—
Integration/acquisition costs (2)
0.03
0.04
0.07
0.13
Restructuring charges, net (3)
—
0.02
—
0.03
Impairment of fixed assets (4)
—
0.01
—
0.01
Impairment of right-of-use assets (5)
—
0.05
—
0.05
Gain on modification of office lease (6)
—
—
(0.26
)
—
Tax effect on the adjusted items (7)
(0.02
)
(0.03
)
(0.02
)
(0.05
)
Adjusted diluted earnings per share
$
1.28
$
1.19
$
3.89
$
3.57
Explanation of Non-GAAP Adjustments
(1)
Depreciation and amortization includes $1.7 million and $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and nine months ended January 31, 2026, respectively.
(2)
Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.
(3)
Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(4)
Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.
(5)
Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.
(6)
Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.
(7)
Tax effect on accelerated depreciation on Digital platform, integration/acquisition costs, restructuring charges, net, impairment of fixed assets and right-of-use assets and gain on modification of office lease.
KORN FERRY AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED
(dollars in thousands)
(unaudited)
Three Months Ended January 31,
2026
2025
Net income attributable to
Korn Ferry
Net income attributable to
Korn Ferry margin
Net income attributable to
Korn Ferry
Net income attributable to
Korn Ferry margin
Consolidated
$
65,265
9.1
%
$
58,414
8.7
%
Fee revenue
Total revenue
Adjusted EBITDA
Adjusted EBITDA margin
Fee revenue
Total revenue
Adjusted EBITDA
Adjusted EBITDA margin
Consulting
$
166,931
$
170,202
$
28,417
17.0
%
$
158,704
$
161,382
$
28,026
17.7
%
Digital
94,014
94,199
29,099
31.0
%
90,823
90,836
28,408
31.3
%
Executive Search:
North America
145,540
146,784
42,138
29.0
%
128,264
129,889
37,175
29.0
%
EMEA
55,318
55,784
9,459
17.1
%
47,840
48,087
7,845
16.4
%
Asia Pacific
24,073
24,218
5,331
22.1
%
21,664
21,794
4,504
20.8
%
Latin America
7,018
7,026
1,223
17.4
%
6,803
6,807
1,696
24.9
%
Total Executive Search
231,949
233,812
58,151
25.1
%
204,571
206,577
51,220
25.0
%
Professional Search & Interim
137,017
138,188
29,065
21.2
%
129,957
130,854
27,265
21.0
%
RPO
87,474
88,641
13,641
15.6
%
84,674
86,889
12,743
15.0
%
Corporate
—
—
(35,307
)
—
—
(33,173
)
Consolidated
$
717,385
$
725,042
$
123,066
17.2
%
$
668,729
$
676,538
$
114,489
17.1
%
Nine Months Ended January 31,
2026
2025
Net income attributable to
Korn Ferry
Net income attributable to
Korn Ferry margin
Net income attributable to
Korn Ferry
Net income attributable to
Korn Ferry margin
Consolidated
$
204,300
9.5
%
$
181,818
9.0
%
Fee revenue
Total revenue
Adjusted EBITDA
Adjusted EBITDA margin
Fee revenue
Total revenue
Adjusted EBITDA
Adjusted EBITDA margin
Consulting
$
509,734
$
518,831
$
87,490
17.2
%
$
493,345
$
501,533
$
86,426
17.5
%
Digital
274,241
274,681
85,438
31.2
%
271,896
272,085
84,219
31.0
%
Executive Search:
North America
427,299
431,565
125,332
29.3
%
392,907
397,395
109,180
27.8
%
EMEA
160,999
162,077
27,373
17.0
%
140,609
141,495
22,597
16.1
%
Asia Pacific
72,905
73,321
16,185
22.2
%
63,707
64,038
13,154
20.6
%
Latin America
20,950
20,984
4,497
21.5
%
21,982
21,992
7,046
32.1
%
Total Executive Search
682,153
687,947
173,387
25.4
%
619,205
624,920
151,977
24.5
%
Professional Search & Interim
412,017
415,834
87,293
21.2
%
372,805
375,572
80,174
21.5
%
RPO
269,552
273,092
42,203
15.7
%
260,789
267,149
38,136
14.6
%
Corporate
—
—
(107,530
)
—
—
(98,207
)
Consolidated
$
2,147,697
$
2,170,385
$
368,281
17.1
%
$
2,018,040
$
2,041,259
$
342,725
17.0
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260227661073/en/
Investor Relations: Tiffany Louder, (214) 310-8407
Media: Dan Gugler, (310) 226-2645
Original: Korn Ferry Announces Third Quarter Fiscal 2026 Results of Operations
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