Korn Ferry delivered a solid QQ2 2025 performance with continued profitability improvement and the ongoing diversification of its portfolio. Consolidated fee revenue was $681.96 million, down 4% year-over-year but flat sequentially, as management emphasized cost discipline and productivity gains that supported a sixth consecutive quarter of EBITDA margin expansion. Adjusted EBITDA rose to $112.56 million, with an adjusted EBITDA margin of 17.4%, up 340 basis points year-over-year, underscoring the company’s ability to grow earnings even as revenue declined in select segments. GAAP diluted EPS was $1.14 and adjusted diluted EPS was $1.21 for the quarter, while management highlighted a robust cash generation profile and capital allocation to shareholders. The period featured strategic investments designed to broaden Korn Ferry’s IP and go-to-market capabilities, notably the Korn Ferry Talent Suite and the Trilogy International acquisition, which expands interim professional offerings into Europe, the Middle East and Africa (EMEA) and North America.
Segment trends reflected a mixed demand backdrop: KF Digital revenue of $93 million fell 4% YoY but rose 5% QoQ with digital new business up 11% YoY and a digital EBITDA margin of 31.4%. Consulting revenue was $167 million, down 6% YoY but flat sequentially, with an 17.5% adjusted EBITDA margin as bill rates rose modestly and productivity improved. RPO remained stable at $88 million, with new awards totaling $101 million and a margin of 14.7%. Executive Search delivered $206 million in fee revenue, up 2% YoY. Management signaled that new logo activity in RPO and the larger, backlog-heavy consulting engagements could modestly accelerate in 2H calendar 2025, supported by Trilogy and the Talent Suite. The company also reiterated its focus on marquee and regional accounts (38% of the portfolio) and a people-centric strategy to sustain high performance across a diversified revenue mix. Management’s long-term thesis remains that inorganic growth will contribute meaningfully (approximately 40%) to growth, supported by disciplined integration and cultural fit.
Looking ahead, Korn Ferry guided for Q3 FY2025 fee revenue of $635–$665 million, with adjusted EBITDA margin of roughly 16.5%–17.3% and adjusted diluted EPS of $1.06–$1.18. Trilogy contributions are expected to be modest this quarter (around $14–$15 million) as the integration progresses, and the company expects seasonality and fewer working days to weigh on third-quarter results. Investors should monitor the evolution of RPO new logos, the monetization of the Talent Suite through platform integrations, and the pace of interim demand in Europe via Trilogy as key catalysts and potential upside drivers in 2H FY2025.