Heidrick & Struggles Delivers 16% Revenue Growth in Q3, Driving Strong Profitability
Q3 Revenue Exceeds High End of Outlook
All Lines of Business Contribute to Consolidated Revenue Growth
Third Quarter 2025 Financial Highlights:
CHICAGO, Nov. 3, 2025 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles", "Heidrick" or the "Company"), a premier provider of global leadership advisory and on-demand talent solutions, today announced financial results for its third quarter ended September 30, 2025.
"We continued our strong 2025 momentum highlighted by our third quarter results that exceeded the high end of our outlook," said Tom Monahan, CEO of Heidrick & Struggles. "Our teams remained laser focused on partnering with clients through the full suite of our global leadership advisory solutions to meet and solve their needs while developing differentiated, deep, and durable global client relationships. With a focus on being a trusted partner to senior leaders and ensuring Heidrick is a company where the best people do their best work, we aim to drive sustainable growth and profitability which in turn allows us to reinvest into growing top talent while developing client solutions for the future."
Take Private Transaction
As announced on October 6, 2025, Heidrick entered into a definitive agreement to become a private company with an investor consortium led by Advent International and Corvex Private Equity for $59.00 per share in cash. In light of this transaction, Heidrick will not be hosting an earnings conference call or webcast to discuss its third quarter 2025 financial results.
Dividend
The Board of Directors declared a 2025 third quarter cash dividend of $0.15 per share payable on November 26, 2025, to shareholders of record at the close of business on November 13, 2025.
Selected Consolidated Results
(Dollars in millions, except per share amounts, and average revenue per executive search in thousands)
Three Months Ended
September 30,
2025
2024
Revenue before reimbursements (net revenue)
$ 322.8
$ 278.6
Adjusted results (a):
Adjusted EBITDA
$ 34.2
$ 30.4
Adjusted EBITDA margin
10.6 %
10.9 %
Net income
$ 17.6
$ 14.8
Diluted earnings per share
$ 0.83
$ 0.71
Selected Executive Search Data
Revenue before reimbursements (net revenue)
$ 239.1
$ 204.4
Ending number of consultants
421
414
Annualized consultant productivity
$ 2.3
$ 2.0
Average revenue per executive search
$ 162
$ 149
Confirmations (% increase/decrease)
7.1 %
5.4 %
Selected On-Demand Talent Data
Revenue before reimbursements (net revenue)
$ 50.9
$ 46.2
Selected Heidrick Consulting Data
Revenue before reimbursements (net revenue)
$ 32.8
$ 27.9
Ending number of consultants
93
84
(a) Non-GAAP financial measures. See Non-GAAP Financial Measures, Reconciliations of Net Income to Adjusted EBITDA at the end of this press release for more information.
2025 Third Quarter Results
Consolidated net revenue increased 15.9%, or $44.3 million, to $322.8 million in the 2025 third quarter compared to consolidated net revenue of $278.6 million in the 2024 third quarter (up 14.2%, or $39.7 million on a constant currency basis). The revenue increase was driven by year-over-year growth in each of the Company's lines of business — Executive Search, On-Demand Talent, and Heidrick Consulting.
2025 third quarter net income was $17.6 million and diluted earnings per share was $0.83 compared to net income of $14.8 million and diluted earnings per share of $0.71 in the 2024 third quarter.
Adjusted EBITDA increased $3.8 million, or 12.6%, to $34.2 million in the 2025 third quarter compared to $30.4 million in the 2024 third quarter, and 2025 third quarter adjusted EBITDA margin declined 30 basis points to 10.6% compared to 10.9% in the 2024 third quarter.
Executive Search net revenue was $239.1 million in the 2025 third quarter compared to net revenue of $204.4 million in the 2024 third quarter, an increase of $34.7 million, or 17.0% (up $32.3 million, or 15.8% on a constant currency basis). The higher revenue versus the year-ago period was driven by increases of 20.8% in the Americas (up 20.7% on a constant currency basis), 18.0% in Europe (up 12.1% on a constant currency basis), partially offset by a decrease in Asia Pacific of 3.9% (down 3.1% on a constant currency basis) when compared to the 2024 third quarter.
Adjusted EBITDA increased $6.5 million, or 12.8%, to $57.2 million in the 2025 third quarter compared to $50.7 million in the 2024 third quarter, and 2025 third quarter adjusted EBITDA margin was 23.9% compared to 24.8% in the 2024 third quarter.
On-Demand Talent net revenue increased $4.7 million, or 10.1%, to $50.9 million in the 2025 third quarter compared to net revenue of $46.2 million in the 2024 third quarter (up $3.0 million, or 6.6% on a constant currency basis).
Adjusted EBITDA was $2.8 million in the 2025 third quarter compared to $1.8 million in the 2024 third quarter, and Adjusted EBITDA margin was 5.6% compared to 3.8% in the 2024 third quarter.
Heidrick Consulting net revenue increased $4.9 million, or 17.6%, to $32.8 million in the 2025 third quarter compared to net revenue of $27.9 million in the 2024 second quarter (up $4.3 million, or 15.4% on a constant currency basis).
Adjusted EBITDA was a loss of $1.9 million in the 2025 third quarter compared to a loss of $1.0 million in the 2024 third quarter, and Adjusted EBITDA margin was (5.7)% compared to (3.7)% in the 2024 third quarter.
About Heidrick & Struggles International, Inc.
Heidrick & Struggles (Nasdaq: HSII) is the world's foremost advisor on executive leadership, driving superior client performance through premier human capital leadership advisory services. For more than 70 years, we've delivered value for our clients by leveraging unrivaled expertise to help organizations discover and enable outstanding leaders and teams. Learn more at www.heidrick.com.
Non-GAAP Financial Measures
To supplement the financial results presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Heidrick & Struggles presents certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of comprehensive income, balance sheets or statements of cash flow of the Company.
Non-GAAP financial measures used within this earnings release are adjusted EBITDA, adjusted EBITDA margin, and net revenue excluding the impact of exchange rate fluctuations (referred to as constant currency). These measures are presented because management uses this information to monitor and evaluate financial results and allocate resources. Management believes this information is also useful for investors to evaluate the comparability of financial information presented. Reconciliations of these non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP are provided as schedules attached to this release.
Adjusted EBITDA refers to net income before interest, taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compensation, deferred compensation plan income or expense, certain reorganization costs, transaction fees, impairment charges and restructuring charges.
Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of net revenue in the same period.
The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculates constant currency percentages by converting its financial results in a local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly titled measures used by other companies.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the third quarter of 2025. The forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industry in which we operate and management's beliefs and assumptions. Forward-looking statements may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "outlook," "projects," "forecasts," "aim" and similar expressions. Forward-looking statements are not guarantees of future performance, rely on a number of assumptions, and involve certain known and unknown risks and uncertainties that are difficult to predict, many of which are beyond our control. Factors that may cause actual outcomes and results to differ materially from what is expressed, forecasted or implied in the forward-looking statements include, among other things, our ability to attract, integrate, develop, manage, retain and motivate qualified consultants and senior leaders; our ability to prevent our consultants from taking our clients with them to another firm; our ability to maintain our professional reputation and brand name; our clients' ability to restrict us from recruiting their employees; our heavy reliance on information management systems; risks arising from our implementation of new technology and intellectual property to deliver new products and services to our clients; our dependence on third parties for the execution of certain critical functions; the fact that we face the risk of liability in the services we perform; the fact that data security, data privacy and data protection laws and other evolving regulations and cross-border data transfer restrictions may limit the use of our services and adversely affect our business; any challenges to the classification of our on-demand talent as independent contractors; the fact that increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted cyber-related attacks could pose a risk to our systems, networks, solutions, services and data; the fact that our net revenue may be affected by adverse macroeconomic or labor market conditions, including impacts of inflation and effects of geopolitical instability; the aggressive competition we face; the impact of foreign currency exchange rate fluctuations; our ability to access additional credit; social, political, regulatory, legal and economic risks in markets where we operate, including the impact of the ongoing war in Ukraine, the conflict between Israel and Hamas and any broader regional conflict in the Middle East, the risks of an expansion or escalation of those conflicts and our ability to quickly and completely recover from any disruption to our business; the impact from actions by the U.S. presidential administration and Congress; unfavorable tax law changes and tax authority rulings; our ability to realize the benefit of our net deferred tax assets; the fact that we may not be able to align our cost structure with net revenue; any impairment of our goodwill, other intangible assets and other long-lived assets; our ability to maintain an effective system of disclosure controls and internal control over our financial reporting and produce accurate and timely financial statements; our ability to execute and integrate future acquisitions; the fact that we have anti-takeover provisions that make an acquisition of us difficult and expensive; risks and uncertainties relating to the transactions contemplated by the Merger Agreement (as defined below), including the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the Merger Agreement; the possibility that the Merger and the related transactions do not close when expected or at all because required regulatory, stockholder, or other approvals and other conditions to closing are not waived, received or satisfied on a timely basis or at all; the risk that the benefits from the Merger may not be fully realized; and the diversion of management's attention and time to the Merger from ongoing business operations and opportunities. We caution the reader that the list of factors may not be exhaustive. For more information on the factors that could affect the outcome of forward-looking statements, refer to our Annual Report on Form 10-K for the year ended December 31, 2024, under the heading "Risk Factors" in Item 1A, and any subsequent Company filings with the Securities and Exchange Commission ("SEC"). We caution the reader that the list of factors may not be exhaustive. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
We caution the reader that the list of factors may not be exhaustive. For more information on these risks, uncertainties and other factors, refer to our Annual Report on Form 10-K for the year ended December 31, 2024, under the heading "Risk Factors" in Item 1A, and our subsequent filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Investors & Analysts:
Vance Edelson
Vance.Edelson@icrinc.com
Media:
Bianca Wilson, Global Director, Public Relations
bwilson@heidrick.com
Heidrick & Struggles International, Inc.
Consolidated Statements of Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
September 30,
2025
2024
$ Change
% Change
Revenue
Revenue before reimbursements (net revenue)
$ 322,837
$ 278,559
$ 44,278
15.9 %
Reimbursements
5,059
4,256
803
18.9 %
Total revenue
327,896
282,815
45,081
15.9 %
Operating expenses
Salaries and benefits
217,836
183,025
34,811
19.0 %
General and administrative expenses
41,778
39,740
2,038
5.1 %
Cost of services
37,644
31,030
6,614
21.3 %
Research and development
6,418
5,682
736
13.0 %
Reimbursed expenses
5,059
4,256
803
18.9 %
Total operating expenses
308,735
263,733
45,002
17.1 %
Operating income
19,161
19,082
79
0.4 %
Non-operating income (loss)
Interest, net
3,436
2,570
Other, net
3,884
(555)
Net non-operating income
7,320
2,015
Income before income taxes
26,481
21,097
Provision for income taxes
8,835
6,268
Net income
17,646
14,829
Other comprehensive income (loss), net of tax
(261)
6,996
Comprehensive income
$ 17,385
$ 21,825
Weighted-average common shares outstanding
Basic
20,735
20,357
Diluted
21,316
21,024
Earnings per common share
Basic
$ 0.85
$ 0.73
Diluted
$ 0.83
$ 0.71
Salaries and benefits as a % of net revenue
67.5 %
65.7 %
General and administrative expenses as a % of net revenue
12.9 %
14.3 %
Cost of services as a % of net revenue
11.7 %
11.1 %
Research and development as a % of net revenue
2.0 %
2.0 %
Operating margin
5.9 %
6.9 %
Heidrick & Struggles International, Inc.
Segment Information
(In thousands)
(Unaudited)
Three Months Ended September 30,
2025
2024
$
Change
%
Change
2025
Margin 1
2024
Margin 1
Revenue
Executive Search
Americas
$ 162,508
$ 134,545
$ 27,963
20.8 %
Europe
50,927
43,143
7,784
18.0 %
Asia Pacific
25,648
26,701
(1,053)
(3.9) %
Total Executive Search
239,083
204,389
34,694
17.0 %
On-Demand Talent
50,910
46,231
4,679
10.1 %
Heidrick Consulting
32,844
27,939
4,905
17.6 %
Revenue before reimbursements (net revenue)
322,837
278,559
44,278
15.9 %
Reimbursements
5,059
4,256
803
18.9 %
Total revenue
$ 327,896
$ 282,815
$ 45,081
15.9 %
Adjusted EBITDA
Executive Search
Americas
$ 48,893
$ 40,465
$ 8,428
20.8 %
30.1 %
30.1 %
Europe
6,578
5,022
1,556
31.0 %
12.9 %
11.6 %
Asia Pacific
1,760
5,247
(3,487)
(66.5) %
6.9 %
19.7 %
Total Executive Search
57,231
50,734
6,497
12.8 %
23.9 %
24.8 %
On-Demand Talent
2,837
1,763
1,074
(60.9) %
5.6 %
3.8 %
Heidrick Consulting
(1,864)
(1,025)
(839)
(81.9) %
(5.7) %
(3.7) %
Total segments
58,204
51,472
6,732
13.1 %
18.0 %
18.5 %
Research and Development
(4,615)
(4,606)
(9)
(0.2) %
(1.4) %
(1.7) %
Global Operations Support
(19,345)
(16,451)
(2,894)
(17.6) %
(6.0) %
(5.9) %
Total Adjusted EBITDA
$ 34,244
$ 30,415
$ 3,829
12.6 %
10.6 %
10.9 %
1 Margin based on revenue before reimbursements (net revenue).
Heidrick & Struggles International, Inc.
Consolidated Statements of Comprehensive Income
(In thousands, except per share amounts)
(Unaudited)
Nine Months Ended
September 30,
2025
2024
$ Change
% Change
Revenue
Revenue before reimbursements (net revenue)
$ 923,663
$ 822,382
$ 101,281
12.3 %
Reimbursements
13,583
12,408
1,175
9.5 %
Total revenue
937,246
834,790
102,456
12.3 %
Operating expenses
Salaries and benefits
616,514
535,330
81,184
15.2 %
General and administrative expenses
125,386
127,556
(2,170)
(1.7) %
Cost of services
102,297
88,158
14,139
16.0 %
Research and development
18,847
17,002
1,845
10.9 %
Impairment charges
—
16,224
(16,224)
(100.0) %
Restructuring charges
—
6,939
(6,939)
(100.0) %
Reimbursed expenses
13,583
12,408
1,175
9.5 %
Total operating expenses
876,627
803,617
73,010
9.1 %
Operating income
60,619
31,173
29,446
94.5 %
Non-operating income
Interest, net
10,030
9,268
Other, net
4,594
3,013
Net non-operating income
14,624
12,281
Income before income taxes
75,243
43,454
Provision for income taxes
23,218
19,750
Net income
52,025
23,704
Other comprehensive income, net of tax
8,760
811
Comprehensive income
$ 60,785
$ 24,515
Weighted-average common shares outstanding
Basic
20,617
20,254
Diluted
21,377
21,144
Earnings per common share
Basic
$ 2.52
$ 1.17
Diluted
$ 2.43
$ 1.12
Salaries and benefits as a % of net revenue
66.7 %
65.1 %
General and administrative expenses as a % of net revenue
13.6 %
15.5 %
Cost of services as a % of net revenue
11.1 %
10.7 %
Research and development as a % of net revenue
2.0 %
2.1 %
Operating margin
6.6 %
3.8 %
Heidrick & Struggles International, Inc.
Segment Information
(In thousands)
(Unaudited)
Nine Months Ended September 30,
2025
2024
$
Change
%
Change
2025
Margin 1
2024
Margin 1
Revenue
Executive Search
Americas
$ 467,082
$ 418,302
$ 48,780
11.7 %
Europe
148,769
124,706
24,063
19.3 %
Asia Pacific
74,796
72,829
1,967
2.7 %
Total Executive Search
690,647
615,837
74,810
12.1 %
On-Demand Talent
141,340
125,983
15,357
12.2 %
Heidrick Consulting
91,676
80,562
11,114
13.8 %
Revenue before reimbursements (net revenue)
923,663
822,382
101,281
12.3 %
Reimbursements
13,583
12,408
1,175
9.5 %
Total revenue
$ 937,246
$ 834,790
$ 102,456
12.3 %
Adjusted EBITDA
Executive Search
Americas
$ 139,770
$ 130,448
$ 9,322
7.1 %
29.9 %
31.2 %
Europe
17,008
11,215
5,793
51.7 %
11.4 %
9.0 %
Asia Pacific
7,302
10,182
(2,880)
(28.3) %
9.8 %
14.0 %
Total Executive Search
164,080
151,845
12,235
8.1 %
23.8 %
24.7 %
On-Demand Talent
4,265
(787)
5,052
641.9 %
3.0 %
(0.6) %
Heidrick Consulting
(3,405)
(4,447)
1,042
23.4 %
(3.7) %
(5.5) %
Total segments
164,940
146,611
18,329
12.5 %
17.9 %
17.8 %
Research and Development
(13,877)
(14,312)
435
3.0 %
(1.5) %
(1.7) %
Global Operations Support
(53,845)
(47,205)
(6,640)
(14.1) %
(5.8) %
(5.7) %
Total Adjusted EBITDA
$ 97,218
$ 85,094
$ 12,124
14.2 %
10.5 %
10.3 %
1 Margin based on revenue before reimbursements (net revenue).
Heidrick & Struggles International, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30,
2025
December 31,
2024
Current assets
Cash and cash equivalents
$ 454,640
$ 515,627
Marketable securities
73,442
47,896
Accounts receivable, net
204,085
134,331
Prepaid expenses
31,553
28,718
Other current assets
49,716
39,935
Income taxes recoverable
10,200
6,470
Total current assets
823,636
772,977
Non-current assets
Property and equipment, net
55,513
51,685
Operating lease right-of-use assets
79,189
83,518
Assets designated for retirement and pension plans
11,310
9,976
Investments
72,537
58,290
Other non-current assets
26,262
25,500
Goodwill
142,464
137,861
Other intangible assets, net
8,949
12,483
Deferred income taxes
44,402
41,898
Total non-current assets
440,626
421,211
Total assets
$ 1,264,262
$ 1,194,188
Current liabilities
Accounts payable
$ 20,281
$ 25,088
Accrued salaries and benefits
366,127
353,531
Deferred revenue
56,110
51,085
Operating lease liabilities
18,182
17,653
Other current liabilities
67,450
21,369
Income taxes payable
10,825
14,287
Total current liabilities
538,975
483,013
Non-current liabilities
Accrued salaries and benefits
38,945
58,547
Retirement and pension plans
88,193
72,138
Operating lease liabilities
83,100
83,152
Other non-current liabilities
4,380
42,905
Deferred income taxes
1,449
1,616
Total non-current liabilities
216,067
258,358
Total liabilities
755,042
741,371
Stockholders' equity
509,220
452,817
Total liabilities and stockholders' equity
$ 1,264,262
$ 1,194,188
Heidrick & Struggles International, Inc.
Reconciliation of Net Income to Adjusted EBITDA (Non-GAAP)
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Revenue before reimbursements (net revenue)
$ 322,837
$ 278,559
$ 923,663
$ 822,382
Net income
17,646
14,829
52,025
23,704
Interest, net
(3,436)
(2,570)
(10,030)
(9,268)
Other, net
(3,884)
555
(4,594)
(3,013)
Provision for income taxes
8,835
6,268
23,218
19,750
Operating income
19,161
19,082
60,619
31,173
Adjustments
Depreciation
3,760
2,997
10,367
7,480
Intangible amortization
1,623
1,953
4,878
6,170
Earnout accretion
517
478
1,534
1,413
Earnout fair value adjustments
—
—
(2,315)
1,211
Acquisition contingent compensation
2,627
2,947
7,014
8,220
Deferred compensation plan
3,895
2,958
8,735
6,264
Reorganization costs
911
—
4,636
—
Transaction fees
1,750
—
1,750
—
Impairment charges
—
—
—
16,224
Restructuring charges
—
—
—
6,939
Total adjustments
15,083
11,333
36,599
53,921
Adjusted EBITDA
$ 34,244
$ 30,415
$ 97,218
$ 85,094
Adjusted EBITDA margin
10.6 %
10.9 %
10.5 %
10.3 %
SOURCE Heidrick & Struggles