Korn Ferry reported its financial results for the third quarter and nine months ended January 31, 2025, revealing a slight decline in fee revenue but a significant increase in net income. The company generated fee revenue of $668.7 million for the quarter, nearly unchanged from $668.7 million in the same period last year. For the nine-month period, fee revenue decreased by 3% to $2.018 billion from $2.072 billion. Despite the revenue dip, net income attributable to Korn Ferry rose to $58.4 million, compared to $59.1 million in the prior year, while net income for the nine months surged to $181.8 million, up from $104.0 million.
The company's operating income for the quarter increased to $78.2 million, a notable rise from $49.9 million in the previous year, driven by a reduction in compensation and benefits expenses, which fell by 7% to $425.3 million. This decrease was attributed to lower performance-related bonuses and a reduction in average headcount. Additionally, Korn Ferry's Adjusted EBITDA for the quarter improved by 13% to $114.5 million, reflecting a margin increase to 17.1% from 15.2% year-over-year.
Strategically, Korn Ferry completed the acquisition of Trilogy International on November 1, 2024, for $44.4 million, which is expected to enhance its Professional Search & Interim segment by expanding its digital interim talent offerings across EMEA and the U.S. The company also reported a 4% year-over-year increase in Recruitment Process Outsourcing (RPO) fee revenue, indicating a positive trend in new business, with $210 million in new client wins during the quarter.
Operationally, Korn Ferry's employee headcount decreased by 2% compared to the previous year, contributing to lower compensation costs. The company also experienced a decline in fee revenue across several segments, including Consulting and Professional Search & Interim, due to reduced demand in the current economic environment. However, Executive Search North America and EMEA reported revenue growth, highlighting regional variations in performance. Looking ahead, Korn Ferry remains focused on leveraging its diversified service offerings and strategic acquisitions to navigate economic uncertainties and drive future growth.
About KORN FERRY
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