# Korn Ferry (KFY) Q1 2026 Financial Results Summary
Los Angeles, CA, September 9, 2025 – Korn Ferry (NYSE: KFY), a global consulting firm, announced its financial results for the first quarter of fiscal year 2026. The company’s fee revenue for the quarter was reported at $708.6 million, reflecting a 5% increase year-over-year.
## Financial Highlights
– **Fee Revenue**
– Q1 FY’26: **$708.6 million**
– Q1 FY’25: **$674.9 million**
– Year-over-year growth: **5%** (up **4%** at constant currency)
– **Net Income**
– Attributable to Korn Ferry: **$66.6 million**
– Year-over-year increase: **6%**
– Net income margin: **9.4%**, an increase of **10 bps** from 9.3% in Q1 FY’25
– **Adjusted EBITDA**
– Q1 FY’26: **$120.4 million**
– Q1 FY’25: **$111.2 million**
– Year-over-year increase: **8%**
– Adjusted EBITDA margin: **17.0%**, an increase of **50 bps** from 16.5%
– **Earnings Per Share**
– Diluted: **$1.26** (up **8%** from **$1.17** in Q1 FY’25)
– Adjusted diluted: **$1.31** (up **11%** from **$1.18** in Q1 FY’25)
– **Dividends and Share Repurchase**
– Korn Ferry repurchased **145,770 shares** of stock during the quarter for **$9.9 million**.
– No quarterly dividend was declared for the current reporting period.
## Performance by Business Segment
– **Consulting**
– Fee Revenue: **$170.0 million** (up **1%** from **$167.9 million** in Q1 FY’25)
– Adjusted EBITDA: **$28.8 million** (down **2%** year-over-year)
– Adjusted EBITDA margin: **17.0%** (down **50 bps**)
– **Digital**
– Fee Revenue: **$89.2 million** (up **1%** from **$88.2 million** in Q1 FY’25)
– Adjusted EBITDA: **$27.6 million** (up **4%** year-over-year)
– Adjusted EBITDA margin: **31.0%** (up **80 bps**)
– **Executive Search**
– Fee Revenue: **$224.3 million** (up **8%** from **$208.6 million** in Q1 FY’25)
– Adjusted EBITDA: **$57.5 million** (up **16%**)
– Adjusted EBITDA margin: **25.6%** (up **190 bps**)
– **Professional Search & Interim**
– Fee Revenue: **$133.9 million** (up **10%** from **$121.7 million** in Q1 FY’25)
– Adjusted EBITDA: **$28.0 million** (up **9%**)
– Adjusted EBITDA margin: **20.9%** (essentially flat)
– **Recruitment Process Outsourcing (RPO)**
– Fee Revenue: **$91.3 million** (up **3%** from **$88.5 million** in Q1 FY’25)
– Adjusted EBITDA: **$14.3 million** (up **14%**)
– Adjusted EBITDA margin: **15.7%** (up **160 bps**)
## Outlook
– For Q2 FY 2026:
– Expected fee revenue range: **$690 million to $710 million**
– Expected diluted earnings per share range: **$1.10 to $1.16**
– Expected adjusted diluted earnings per share range: **$1.23 to $1.33**
This report reflects Korn Ferry’s strong performance amid varied economic conditions, emphasizing the effectiveness of its diversified consulting strategies.
Here are the extracted tables from the press release in HTML format:
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
| Three Months Ended | July 31, 2025 | July 31, 2024 |
|---|---|---|
| Fee revenue | $ 708,613 | $ 674,946 |
| Reimbursed out-of-pocket engagement expenses | 6,930 | 7,815 |
| Total revenue | 715,543 | 682,761 |
| Compensation and benefits | 461,411 | 451,775 |
| General and administrative expenses | 63,874 | 59,999 |
| Reimbursed expenses | 6,930 | 7,815 |
| Cost of services | 77,194 | 67,544 |
| Depreciation and amortization | 22,686 | 19,578 |
| Total operating expenses | 632,095 | 606,711 |
| Operating income | 83,448 | 76,050 |
| Other income, net | 12,752 | 14,505 |
| Interest expense, net | -3,516 | -3,945 |
| Income before provision for income taxes | 92,684 | 86,610 |
| Income tax provision | 25,250 | 22,354 |
| Net income | 67,434 | 64,256 |
| Net income attributable to noncontrolling interest | -798 | -1,652 |
| Net income attributable to Korn Ferry | $ 66,636 | $ 62,604 |
| Earnings per common share attributable to Korn Ferry: | ||
| Basic | $ 1.28 | $ 1.19 |
| Diluted | $ 1.26 | $ 1.17 |
| Weighted-average common shares outstanding: | ||
| Basic | 51,466 | 51,950 |
| Diluted | 52,368 | 52,745 |
### CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
| July 31, 2025 | (unaudited) | April 30, 2025(1) |
|---|---|---|
| Cash and cash equivalents | $ 684,855 | $ 1,006,964 |
| Marketable securities | 36,277 | 36,388 |
| Receivables due from clients, net of allowance for doubtful accounts of $41,497 and $40,461 at July 31, 2025 and April 30, 2025, respectively | 600,362 | 565,255 |
| Income taxes and other receivables | 47,062 | 38,394 |
| Unearned compensation | 64,033 | 61,649 |
| Prepaid expenses and other assets | 58,313 | 41,488 |
| Total current assets | 1,490,902 | 1,750,138 |
| Marketable securities, non-current | 242,162 | 233,626 |
| Property and equipment, net | 179,491 | 173,610 |
| Operating lease right-of-use assets, net | 143,262 | 152,712 |
| Cash surrender value of company-owned life insurance policies, net of loans | 268,556 | 252,621 |
| Deferred income taxes | 139,212 | 144,560 |
| Goodwill | 948,659 | 948,832 |
| Intangible assets, net | 64,043 | 70,193 |
| Unearned compensation, non-current | 124,817 | 106,965 |
| Investments and other assets | 29,493 | 27,967 |
| Total assets | $ 3,630,597 | $ 3,861,224 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Accounts payable | $ 55,058 | $ 58,884 |
| Income taxes payable | 23,585 | 23,079 |
| Compensation and benefits payable | 266,671 | 530,473 |
| Operating lease liability, current | 36,318 | 38,573 |
| Other accrued liabilities | 292,768 | 304,589 |
| Total current liabilities | 674,400 | 955,598 |
| Deferred compensation and other retirement plans | 504,867 | 477,770 |
| Operating lease liability, non-current | 126,429 | 131,762 |
| Long-term debt | 397,939 | 397,736 |
| Deferred tax liabilities | 6,737 | 5,981 |
| Other liabilities | 21,412 | 20,238 |
| Total liabilities | 1,731,784 | 1,989,085 |
| Stockholders’ equity | ||
| Common stock: $0.01 par value, 150,000 shares authorized, 79,124 and 78,264 shares issued and 51,770 and 51,458 shares outstanding at July 31, 2025 and April 30, 2025, respectively | 351,238 | 364,425 |
| Retained earnings | 1,628,701 | 1,588,274 |
| Accumulated other comprehensive loss, net | -87,851 | -86,243 |
| Total Korn Ferry stockholders’ equity | 1,892,088 | 1,866,456 |
| Noncontrolling interest | 6,725 | 5,683 |
| Total stockholders’ equity | 1,898,813 | 1,872,139 |
| Total liabilities and stockholders’ equity | $ 3,630,597 | $ 3,861,224 |
This maintains the originality and structure of the tables as provided in the press release.
