Korn Ferry (NYSE: KFY) Q4 FY’25 Results Showcase Revenue Growth and Enhanced Margins
Korn Ferry, a global consulting firm, reported its fourth-quarter and full-year fiscal year 2025 (FY’25) results as follows:
## Summary:
– **Q4 FY’25 Fee Revenue**:
– Increased to $712.0 million, marking a **3% year-over-year growth** (4% in constant currency).
– **Full Year FY’25 Fee Revenue**:
– Amounted to $2,730.1 million, noting a **1% decrease** in both actual and constant currency.
– **Net Income**:
– Fourth-quarter net income was $64.2 million, with a **margin of 9.0%**, down by 40bps from the previous year.
– Full-year net income was $246.1 million, with a **margin of 9.0%**, showing an increase of 290bps from the prior year.
– **Adjusted EBITDA**:
– Q4 FY’25 Adjusted EBITDA was $121.1 million, with a **margin of 17.0%**, up by 70bps from the previous year’s quarter.
– Full year FY’25 Adjusted EBITDA reached $463.9 million, with a **margin of 17.0%**, showing an increase of 220bps from the prior year.
– **Earnings Per Share**:
– Q4 FY’25 saw diluted earnings per share at $1.21 and adjusted diluted earnings per share at $1.32.
– Full-year FY’25 reported diluted earnings per share of $4.60 and adjusted diluted earnings per share of $4.88.
– **Shareholder Returns**:
– The company repurchased 232,000 shares worth $15.0 million and paid dividends of $25 million during the quarter.
– **Capital Allocation**:
– The company invested in acquisitions, technology enhancements, and returned capital to shareholders through share repurchases and dividends.
## Financial Results by Solution:
– **Consulting**:
– Saw a 7% decrease in fee revenue in Q4 FY’25 due to larger project durations, resulting in $169.4 million on fee revenue.
– **Digital**:
– Reported flat year-over-year fee revenue of $91.6 million in Q4 FY’25 (up 1% in constant currency).
– **Executive Search**:
– Noted a significant 14% increase in fee revenue to $227.0 million in Q4 FY’25 (15% in constant currency).
– **Professional Search & Interim**:
– Showed a 1% increase in fee revenue to $130.7 million in Q4 FY’25.
– **RPO**:
– Witnessed a 4% growth in fee revenue to $93.3 million in Q4 FY’25 (5% in constant currency).
## Outlook:
– **Q1 FY’26**:
– Expected fee revenue range of $675 million to $695 million and a diluted earnings per share range of $1.16 to $1.24.
Korn Ferry’s financial performance in Q4 FY’25 reflects steady growth in fee revenue, improved margins, and a balanced approach to capital allocation, positioning the company for continued success into the next fiscal year.
### CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended April 30, 2025 | Year Ended April 30, 2025 | |
|---|---|---|
| Fee revenue | $712,048 | $2,730,088 |
| Total revenue | $719,827 | $2,761,086 |
| Adjusted EBITDA | $121,141 | $463,866 |
Amounts in thousands.
### CONSOLIDATED BALANCE SHEETS
| April 30, 2025 | April 30, 2024 | |
|---|---|---|
| Cash and cash equivalents | $1,006,964 | $941,005 |
| Total current assets | $1,750,138 | $1,674,160 |
| Goodwill | $948,832 | $908,376 |
| Total assets | $3,861,224 | $3,678,869 |
| Accounts payable | $58,884 | $50,112 |
| Total current liabilities | $955,598 | $934,519 |
| Total stockholders’ equity | $1,872,139 | $1,737,325 |
Amounts in thousands.
### RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
#### Three Months Ended April 30, 2025
| Net income attributable to Korn Ferry | Adjusted EBITDA | |
|---|---|---|
| Consolidated | $64,244 | $121,141 |
| Consulting | $29,055 | – |
| Digital | $28,477 | – |
| Executive Search | $54,222 | – |
| Professional Search & Interim | $27,426 | – |
| RPO | $14,499 | – |
#### Year Ended April 30, 2025
| Net income attributable to Korn Ferry | Adjusted EBITDA | |
|---|---|---|
| Consolidated | $246,062 | $463,866 |
| Consulting | $115,481 | – |
| Digital | $112,696 | – |
| Executive Search | $206,199 | – |
| Professional Search & Interim | $107,600 | – |
| RPO | $52,635 | – |
Amounts in thousands.
