Korn Ferry Posts Flat Revenues

March 11, 2025 – Korn Ferry (NYSE:KFY) has posted 2025 fiscal third quarter revenues of $668.7 million, flat from the same period a year ago (two percent increase on a constant currency basis). During the quarter, fee revenue increased slightly in Executive Search, RPO and Digital, offset by a decline in fee revenue in Consulting. The Los Angeles-headquartered executive recruiter and leadership consultant – the largest globally and in the Americas as ranked by Hunt Scanlon Media –  recorded net income of $58.4 with a net income attributable to Korn Ferry margin of 8.7 percent, in Q3 FY’25, compared to net income attributable to Korn Ferry of $59.1 million with a net income attributable to Korn Ferry margin of 8.8 percent, in the year-ago quarter. Diluted and adjusted diluted earnings per share were $1.10 and $1.19 in Q3 FY’25, respectively.

“I am pleased with our third quarter results, which clearly demonstrate the power of our business and the strength of our diversification,” said Gary D. Burnison, CEO of Korn Ferry. “Tomorrow’s macro environment will be encircled by a labor supply/demand imbalance which will require companies to reimagine and reskill their workforce; inspire, employ, develop and retain talent; and embrace technologies that drive a new world of work—all of which present tremendous opportunity for Korn Ferry as we deliver offerings and expertise that drive organizational performance.”

Fee revenue across its business segments showed a mixed performance—Executive Search saw slight growth, with North America leading at $129.9 million, followed by EMEA at $48.1 million, Asia Pacific at $21.8 million, and Latin America at $6.8 million, totaling $206.6 million globally. The Digital segment remained stable at $90.8 million, while Professional Search & Interim recorded $130.9 million. RPO experienced an increase in fee revenue, reaching $86.9 million, up from $83.6 million a year ago. However, the Consulting segment saw a decline, posting $161.4 million in fee revenue compared to $166.9 million in the prior year.

Yesterday, Korn Ferry announced its board of directors has approved a 30 percent increase in its quarterly cash dividend to $0.48 per share. This dividend will be payable on April 15, 2025 to shareholders of record on March 27, 2025. This represents an indicated annual dividend of $1.92 per share.

“This marks the fifth consecutive year that we have increased our regular quarterly cash dividend and demonstrates the continued confidence we have in our business,” said Mr. Burnison.

Korn Ferry is a Los Angeles-headquartered executive recruiter and leadership consultant and the largest globally and in the Americas. The firm’s 8,600 colleagues serve clients in more than 50 countries.

Korn Ferry recently appointed Michael LoRusso as chief information officer. He succeeded Brandon Johnson, who has retired from the CIO role after serving in this position for the last five years. “We are excited to have Mike join the firm,” said Robert Rozek, CFO and chief corporate officer, Korn Ferry. “He brings extensive IT knowledge and leadership experience to Korn Ferry, having served at several top global brands. His diverse experience, combined with a strong understanding of technology and evolving digital issues that can differentiate organizations today, will be a great fit for Korn Ferry. At the same time, we want to thank Brandon for his substantial contribution to our firm and wish him great success and happiness in the next phase of his life.”

Mr. LoRusso brings to Korn Ferry 25 years of technology and global leadership experience with a broad operational background in both the public and private sectors. His expertise spans digital transformation, application development, cybersecurity, infrastructure management and audits and compliance. Most recently, Mr. LoRusso was the CIO and head of shared services at Embecta Corp.

Korn Ferry also recently added Scott Maguire to the firm’s interim business where he will lead its North American technology practice. He will be based in the San Jose office. “Scott’s credentials in the technology sector will be instrumental as we continue to advance the scope of our relationships with and offerings to technology clients who will benefit from our Interim expertise,” said Mike Distefano, CEO of Korn Ferry’s professional search & interim business.

Related: Korn Ferry Appoints Senior Leaders

Mr. Maguire joins Korn Ferry from business and consulting firm RGP where he spent 10 years, including leading its western region and technology centric practice. Prior to that, he spent almost a decade in various management roles at Lockheed Martin.

Recent Acquisition

In November, Korn Ferry closed its acquisition of U.K.-based Trilogy International. Terms of the deal were not disclosed. The acquisition is expected to be immediately accretive to Korn Ferry’s adjusted earnings. “We’re pleased to have Trilogy join Korn Ferry,” said Mr. Burnison. “Trilogy operates at the forefront of change, in a large addressable market. The company’s highly relevant digital interim professional offerings, combined with a broad EMEA footprint, will be a great fit for Korn Ferry and our clients.”

Korn Ferry Names Chief Product Officer

Korn Ferry has appointed Stacie Overbaugh as a chief product officer for its digital business, which focuses on talent products and technologies. She will be based in the firm’s San Francisco office. “Stacie will play an instrumental role in shaping the strategy for our talent suite and vision for our talent platform,” said Mathias Herzog, president of digital for Korn Ferry. “Her deep human capital management experience and expertise will be invaluable in setting the direction for our HR technology products and scaling our worldclass intellectual property, data and offerings to our clients and driving impact. We are thrilled to welcome Stacie to the team.” Ms. Overbaugh brings to Korn Ferry more than two decades of product leadership experience and extensive knowledge of the human capital management space. Prior to Korn Ferry, she held key product management and strategy roles at UKG, SAP SuccessFactors, and Workday leading global teams of product managers.

Headquartered in London, Trilogy is a provider of digital interim talent across EMEA and in the United States. “Through the combination with Trilogy, Korn Ferry’s professional search & interim business will extend its ability to scale its solutions at the intersection of talent, transformation and strategy,” the firm said.

“Trilogy is known as the technologist’s recruiter – bringing to our clients a bespoke, consultative, high-touch approach,” said Ivan Jackson, co-founder and managing director of Trilogy. “Our success is grounded in delivering the right talent with the right knowledge and technology skills to drive business value and transformation. We’re excited to start a new journey with Korn Ferry and tap into the firm’s global network of colleagues, expansive client relationships and in-depth IP and digital expertise. We look forward to the opportunity ahead.”

Outlook

Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis Korn Ferry expects Q4 FY’25 fee revenue is expected to be in the range of $680 million and $700 million; and Q4 FY’25 diluted earnings per share is expected to range between $1.20 to $1.28.

On a consolidated adjusted basis Korn Ferry anticipates Q4 FY’25 adjusted diluted earnings per share is expected to be in the range from $1.22 to $1.30.

Related: Korn Ferry Expands Interim Talent Operations into France

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media