Korn Ferry Announces Third Quarter Fiscal 2026 Results of Operations

LOS ANGELES--( BUSINESS WIRE)--Korn Ferry (NYSE: KFY), a global consulting firm, today announced third quarter fee revenue of $717.4 million. In addition, third quarter diluted earnings per share was $1.23 and adjusted diluted earnings per share was $1.28.

“Our strong quarterly performance continues to reflect the evolution of our firm,” said Gary D. Burnison, CEO, Korn Ferry. “Today the world is enveloped by unprecedented levels of change – shifts in population, demographics and technological advancement that are converging to exert great impact on the way people live, work and consume. This environment provides tremendous opportunity for Korn Ferry."

“I am pleased with the synchronization of our expertise, globality and solutions to solve our clients’ toughest performance challenges. Most of all, I am energized by our talented colleagues around the world who are committed to enabling people and organizations to Be More Than,” added Burnison. “Success begins and ends with talent. As such, we are proud to be a Founding Partner of the LA28 Olympic and Paralympic Games, powering the people who power the Olympic Games.”

Selected Financial Results

(dollars in millions, except per share amounts) (a)

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

717.4

668.7

2,147.7

2,018.0

Total revenue

725.0

676.5

2,170.4

2,041.3

Estimated remaining fees under existing contracts (b)

1,850.8

1,669.4

1,850.8

1,669.4

Net income attributable to Korn Ferry

65.3

58.4

204.3

181.8

Net income attributable to Korn Ferry margin

9.1

8.7

9.5

9.0

Basic earnings per share

1.25

1.12

3.91

3.46

Diluted earnings per share

1.23

1.10

3.84

3.40

Adjusted Results (c):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

123.1

114.5

368.3

342.7

Adjusted EBITDA margin

17.2

17.1

17.0

Adjusted net income attributable to Korn Ferry (d)

67.7

63.3

207.4

191.1

Adjusted basic earnings per share (d)

1.30

1.21

3.97

3.64

Adjusted diluted earnings per share (d)

1.28

1.19

3.89

3.57

(a)

Numbers may not total due to rounding.

(b)

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

(c)

Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, gain on modification of an office lease, restructuring charges, net and management separation charges when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Integration/acquisition costs

1.6

2.1

4.4

7.1

Restructuring charges, net

—

1.3

—

1.9

Impairment of fixed assets

—

0.5

—

0.5

Impairment of right-of-use assets

—

2.5

—

2.5

Gain on modification of office lease

—

(13.9

)

—

(d)

Adjusted net income attributable to Korn Ferry, Adjusted basic earnings per share and Adjusted diluted earnings per share are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Accelerated depreciation on Digital platform

1.7

—

13.8

—

Integration/acquisition costs

1.6

2.1

4.4

7.1

Restructuring charges, net

—

1.3

—

1.9

Impairment of fixed assets

—

0.5

—

0.5

Impairment of right-of-use assets

—

2.5

—

2.5

Gain on modification of office lease

—

(13.9

)

—

Tax effect on the adjusted items

(0.9

)

(1.6

)

(1.2

)

(2.7

)

The Company reported fee revenue in Q3 FY'26 of $717.4 million, an increase of 7% year-over-year (up 4% at constant currency). Fee revenue grew in all solutions year-over-year, led by Executive Search at 13%, followed by Professional Search & Interim and Consulting, both at 5%.

Net income attributable to Korn Ferry was $65.3 million with a margin of 9.1% in Q3 FY'26, compared to Q3 FY'25 net income attributable to Korn Ferry of $58.4 million with a margin of 8.7%, an increase of 40bps. Net income attributable to Korn Ferry increased from the year-ago quarter primarily due to an increase in fee revenue and the impact of adjusted items in item (d) above, partially offset by an increase in compensation and benefits expenses.

Adjusted EBITDA was $123.1 million in Q3 FY'26 compared to $114.5 million in Q3 FY'25. Adjusted EBITDA margin was 17.2% in Q3 FY'26, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by an increase in compensation and benefits expenses.

Results by Solution

Selected Consulting Data

(dollars in millions) (a)

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

166.9

158.7

509.7

493.3

Total revenue

170.2

161.4

518.8

501.5

Estimated remaining fees under existing contracts (b)

407.3

364.6

407.3

364.6

Ending number of consultants and execution staff (c)

1,524

1,632

1,524

1,632

Hours worked in thousands (d)

317

344

1,060

1,137

Average bill rate (e)

470

461

464

434

Adjusted Results (f):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

28.4

28.0

87.5

86.4

Adjusted EBITDA margin

17.0

17.7

17.2

17.5

(a)

Numbers may not total due to rounding.

(b)

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

(c)

Represents number of employees originating, delivering and executing consulting services.

(d)

The number of hours worked by consultant and execution staff during the period.

(e)

The amount of fee revenue divided by the number of hours worked by consultants and execution staff.

(f)

Adjusted results exclude the following:

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Restructuring charges, net

—

1.3

—

1.7

Gain on modification of office lease

—

(4.1

)

—

Fee revenue was $166.9 million in Q3 FY'26 compared to $158.7 million in Q3 FY'25, an increase of $8.2 million or 5% (up 2% on a constant currency basis). The year-over-year increase in Consulting fee revenue was primarily driven by a 2% increase in average bill rates.

Adjusted EBITDA was $28.4 million in Q3 FY'26 compared to $28.0 million in the year-ago quarter. Adjusted EBITDA margin was 17.0% in Q3 FY'26 compared to 17.7% in the year-ago quarter.

Selected Digital Data

(dollars in millions) (a)

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

94.0

90.8

274.2

271.9

Total revenue

94.2

90.8

274.7

272.1

Estimated remaining fees under existing contracts (b)

428.0

369.6

428.0

369.6

Ending number of consultants

225

249

225

249

Subscription & License fee revenue

37.2

34.5

110.6

103.2

Adjusted Results (c):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

29.1

28.4

85.4

84.2

Adjusted EBITDA margin

31.0

31.3

31.2

31.0

(a)

Numbers may not total due to rounding.

(b)

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

(c)

Adjusted results exclude the following:

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Impairment of fixed assets

—

0.4

—

0.4

Gain on modification of office lease

—

(2.0

)

—

Fee revenue was $94.0 million in Q3 FY'26 compared to $90.8 million in Q3 FY'25, an increase of $3.2 million or 4% (essentially flat on a constant currency basis). The year-over-year increase in Digital fee revenue was primarily driven by an 8% increase in Subscription & License fee revenue.

Adjusted EBITDA was $29.1 million in Q3 FY'26, compared to $28.4 million in the year-ago quarter. Adjusted EBITDA margin was 31.0%, a slight decline from the year-ago quarter.

Selected Executive Search Data (a)

(dollars in millions) (b)

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

231.9

204.6

682.2

619.2

Total revenue

233.8

206.6

687.9

624.9

Estimated remaining fees under existing contracts (c)

68.6

58.5

68.6

58.5

Ending number of consultants

563

560

563

560

Average number of consultants

566

558

562

551

Engagements billed

3,737

3,540

7,648

7,211

New engagements (d)

1,573

1,464

4,802

4,587

Adjusted Results (e):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

58.2

51.2

173.4

152.0

Adjusted EBITDA margin

25.1

25.0

25.4

24.5

(a)

Executive Search is the sum of the individual Executive Search Reporting Segments described in our annual and quarterly reporting on Forms 10-K and 10-Q and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Solutions, and financial metrics used by the Company’s investor base.

(b)

Numbers may not total due to rounding.

(c)

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

(d)

Represents new engagements opened in the respective period.

(e)

Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following:

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Impairment of right-of-use assets

—

2.5

—

2.5

Impairment of fixed assets

—

0.2

—

0.2

Gain on modification of office lease

—

(3.7

)

—

Restructuring charges, net

—

0.2

Fee revenue was $231.9 million in Q3 FY'26 compared to $204.6 million in Q3 FY'25, an increase of $27.3 million or 13% (up 11% at constant currency). The year-over-year increase in fee revenue was driven by an increase in both the number of engagements billed and the weighted-average fee billed per engagement. The Company experienced fee revenue growth in all regions.

Adjusted EBITDA was $58.2 million in Q3 FY'26 compared to $51.2 million in the year-ago quarter, an increase of 14% year-over-year. Adjusted EBITDA margin was 25.1%, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was primarily due to an increase in fee revenue, partially offset by an increase in compensation and benefits expenses.

Selected Professional Search & Interim Data

(dollars in millions) (a)

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

137.0

130.0

412.0

372.8

Total revenue

138.2

130.9

415.8

375.6

Permanent Placement:

Fee revenue

51.7

47.9

162.6

152.9

Estimated remaining fees under existing contracts (b)

15.3

12.8

15.3

12.8

Engagements billed

1,715

1,675

3,847

3,780

New engagements (c)

901

883

2,868

2,802

Ending number of consultants

292

296

292

296

Interim:

Fee revenue

85.3

82.1

249.4

219.9

Estimated remaining fees under existing contracts (b)

106.6

111.5

106.6

111.5

Average bill rate (d)

149

129

143

134

Average weekly billable consultants (e)

1,257

1,324

1,238

1,124

Adjusted Results (f):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

29.1

27.3

87.3

80.2

Adjusted EBITDA margin

21.2

21.0

21.2

21.5

(a)

Numbers may not total due to rounding.

(b)

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

(c)

Represents new engagements opened in the respective period.

(d)

Fee revenue from interim divided by the number of hours worked by consultants.

(e)

The number of billable consultants based on a weekly average in the respective period.

(f)

Adjusted results exclude the following:

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Integration/acquisition costs

1.6

2.0

4.4

Gain on modification of office lease

—

(2.6

)

—

Fee revenue was $137.0 million in Q3 FY'26 compared to $130.0 million in Q3 FY'25, an increase of $7.0 million or 5% (up 3% at constant currency). Fee revenue increased due to higher fee revenues in both Permanent Placement and Interim. The year-over-year increase in permanent placement fee revenue was driven by an increase in both the number of engagements billed and the weighted-average fee billed per engagement. The year-over-year increase in interim fee revenue was primarily due to a 16% increase in average bill rate.

Adjusted EBITDA was $29.1 million in Q3 FY'26 compared to $27.3 million in the year-ago quarter. Adjusted EBITDA margin was 21.2%, essentially flat compared to the year-ago quarter. The increase in Adjusted EBITDA was due to an increase in fee revenue, partially offset by increases in compensation and benefits expenses and cost of services.

Selected Recruitment Process Outsourcing ("RPO") Data

(dollars in millions) (a)

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Fee revenue

87.5

84.7

269.6

260.8

Total revenue

88.6

86.9

273.1

267.1

Estimated remaining fees under existing contracts (b)

825.0

752.4

825.0

752.4

RPO new business (c)

54.4

209.9

406.7

414.6

Adjusted Results (d):

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Adjusted EBITDA

13.6

12.7

42.2

38.1

Adjusted EBITDA margin

15.6

15.0

15.7

14.6

(a)

Numbers may not total due to rounding.

(b)

Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized.

(c)

Estimated total value of a contract at the point of execution of the contract.

(d)

Adjusted results exclude the following:

Third Quarter

Year to Date

FY’26

FY’25

FY’26

FY’25

Gain on modification of office lease

—

(1.5

)

—

Fee revenue was $87.5 million in Q3 FY'26 compared to $84.7 million in Q3 FY'25, an increase of $2.8 million or 3% (up 1% at constant currency). RPO fee revenue increased primarily due to new logo clients in North America.

Adjusted EBITDA was $13.6 million in Q3 FY'26 compared to $12.7 million in the year-ago quarter. Adjusted EBITDA margin increased 60bps to 15.6% in Q3 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue, partially offset by an increase in compensation and benefits expense.

Outlook

Assuming no material negative impact from the recent Middle East conflict and that other worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

Earnings Conference Call Webcast

The earnings conference call will be held today at 12:00 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at ir.kornferry.com. We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website.

About Korn Ferry

Korn Ferry is a global consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That’s why the world’s most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than.

Forward-Looking Statements

Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, impact of global events on our business, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as “believes”, “expects”, “anticipates”, “goals”, “estimates”, “guidance”, “may”, “should”, “could”, “will” or “likely”, and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, trade wars, interest rates, labor market conditions, global slowdowns, or recessions, competition, geopolitical tensions, including the recent Middle East conflict, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to corporate responsibility matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property, our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the use of social media platforms, the ability to effect acquisitions and integrate acquired businesses, resulting organizational changes, our indebtedness, and those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry’s periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In particular, it includes:

This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry’s performance by excluding certain items that may not be indicative of Korn Ferry’s ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These items, which are described in the footnotes in the attached reconciliations, represent 1) costs associated with previous acquisitions, such as legal and professional fees, retention awards and on-going integration expenses, 2) gain on modification of an office lease where the Company received lease incentives to shorten the lease term, 3) restructuring charges, net to align workforce to eliminate excess capacity resulting from challenging macroeconomic business environment, 4) accelerated depreciation associated with the decision to sunset our Digital platform, 5) impairment of fixed assets primarily due to software impairment charge in our Digital segment and 6) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry’s historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry’s ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated and Executive Search Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company’s operating results. Management further believes that Consolidated and Executive Search Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company’s operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making.

KORN FERRY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

Three Months Ended

January 31,

Nine Months Ended

January 31,

2026

2025

2026

2025

(unaudited)

Fee revenue

717,385

668,729

2,147,697

2,018,040

Reimbursed out-of-pocket engagement expenses

7,657

7,809

22,688

23,219

Total revenue

725,042

676,538

2,170,385

2,041,259

Compensation and benefits

456,823

425,319

1,380,268

1,314,521

General and administrative expenses

65,944

65,325

180,068

189,865

Reimbursed expenses

7,657

7,809

22,688

23,219

Cost of services

80,607

78,047

236,888

210,248

Depreciation and amortization

22,994

20,490

77,253

59,756

Restructuring charges, net

—

1,316

—

1,892

Total operating expenses

634,025

598,306

1,897,165

1,799,501

Operating income

91,017

78,232

273,220

241,758

Other income, net

7,468

9,363

27,295

29,259

Interest expense, net

(5,663

)

(5,461

)

(14,942

)

(15,032

)

Income before provision for income taxes

92,822

82,134

285,573

255,985

Income tax provision

26,683

22,795

78,578

70,047

Net income

66,139

59,339

206,995

185,938

Net income attributable to noncontrolling interest

(874

)

(925

)

(2,695

)

(4,120

)

Net income attributable to Korn Ferry

65,265

58,414

204,300

181,818

Earnings per common share attributable to Korn Ferry:

Basic

1.25

1.12

3.91

3.46

Diluted

1.23

1.10

3.84

3.40

Weighted-average common shares outstanding:

Basic

51,570

51,606

51,594

51,838

Diluted

52,417

52,364

52,612

52,789

KORN FERRY AND SUBSIDIARIES

FINANCIAL SUMMARY BY REPORTING SEGMENT

(dollars in thousands)

(unaudited)

Three Months Ended

January 31,

Nine Months Ended

January 31,

2026

2025

% Change

2026

2025

% Change

Fee revenue:

Consulting

166,931

158,704

5.2

509,734

493,345

3.3

Digital

94,014

90,823

3.5

274,241

271,896

0.9

Executive Search:

North America

145,540

128,264

13.5

427,299

392,907

8.8

EMEA

55,318

47,840

15.6

160,999

140,609

14.5

Asia Pacific

24,073

21,664

11.1

72,905

63,707

14.4

Latin America

7,018

6,803

3.2

20,950

21,982

(4.7

Total Executive Search (a)

231,949

204,571

13.4

682,153

619,205

10.2

Professional Search & Interim

137,017

129,957

5.4

412,017

372,805

10.5

RPO

87,474

84,674

3.3

269,552

260,789

3.4

Total fee revenue

717,385

668,729

7.3

2,147,697

2,018,040

6.4

Reimbursed out-of-pocket engagement expenses

7,657

7,809

(1.9

22,688

23,219

(2.3

Total revenue

725,042

676,538

7.2

2,170,385

2,041,259

6.3

(a)

Total Executive Search is the sum of the individual Executive Search Reporting Segments and is presented on a consolidated basis as it is consistent with the Company’s discussion of its Solutions, and financial metrics used by the Company’s investor base.

KORN FERRY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

January 31,

2026

April 30,

2025 (1)

(unaudited)

ASSETS

Cash and cash equivalents

938,365

1,006,964

Marketable securities

38,367

36,388

Receivables due from clients, net of allowance for doubtful accounts of $45,990 and $40,461 at January 31, 2026 and April 30, 2025, respectively

626,813

565,255

Income taxes and other receivables

65,823

38,394

Unearned compensation

65,882

61,649

Prepaid expenses and other assets

53,225

41,488

Total current assets

1,788,475

1,750,138

Marketable securities, non-current

241,745

233,626

Property and equipment, net

182,572

173,610

Operating lease right-of-use assets, net

141,084

152,712

Cash surrender value of company-owned life insurance policies, net of loans

285,516

252,621

Deferred income taxes

134,199

144,560

Goodwill

951,962

948,832

Intangible assets, net

52,047

70,193

Unearned compensation, non-current

128,310

106,965

Investments and other assets

43,698

27,967

Total assets

3,949,608

3,861,224

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

60,034

58,884

Income taxes payable

23,313

23,079

Compensation and benefits payable

457,225

530,473

Operating lease liability, current

29,418

38,573

Other accrued liabilities

319,565

304,589

Total current liabilities

889,555

955,598

Deferred compensation and other retirement plans

491,616

477,770

Operating lease liability, non-current

132,633

131,762

Long-term debt

398,354

397,736

Deferred tax liabilities

6,436

5,981

Other liabilities

23,049

20,238

Total liabilities

1,941,643

1,989,085

Stockholders' equity

Common stock: $0.01 par value, 150,000 shares authorized, 79,180 and 78,264 shares issued and 51,463 and 51,458 shares outstanding at January 31, 2026 and April 30, 2025, respectively

351,578

364,425

Retained earnings

1,716,206

1,588,274

Accumulated other comprehensive loss, net

(65,337

)

(86,243

)

Total Korn Ferry stockholders' equity

2,002,447

1,866,456

Noncontrolling interest

5,518

5,683

Total stockholders' equity

2,007,965

1,872,139

Total liabilities and stockholders' equity

3,949,608

3,861,224

(1)

Information is derived from audited financial statements included in our most recently filed Form 10-K.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands)

(unaudited)

Three Months Ended

January 31,

Nine Months Ended

January 31,

2026

2025

2026

2025

Net income attributable to Korn Ferry

65,265

58,414

204,300

181,818

Net income attributable to non-controlling interest

874

925

2,695

4,120

Net income

66,139

59,339

206,995

185,938

Income tax provision

26,683

22,795

78,578

70,047

Income before provision for income taxes

92,822

82,134

285,573

255,985

Interest expense, net

5,663

5,461

14,942

15,032

Depreciation and amortization (1)

22,994

20,490

77,253

59,756

Integration/acquisition costs (2)

1,587

2,127

4,420

7,099

Restructuring charges, net (3)

—

1,316

—

1,892

Impairment of fixed assets (4)

—

509

—

509

Impairment of right-of-use assets (5)

—

2,452

—

2,452

Gain on modification of office lease (6)

—

(13,907

)

—

Adjusted EBITDA

123,066

114,489

368,281

342,725

Net income attributable to Korn Ferry margin

9.1

8.7

9.5

9.0

Net income attributable to non-controlling interest

0.1

0.2

Income tax provision

3.8

3.4

3.6

3.5

Interest expense, net

0.8

0.7

Depreciation and amortization (1)

3.2

3.1

3.6

3.0

Integration/acquisition costs (2)

0.2

0.3

0.2

0.4

Restructuring charges, net (3)

—

0.2

—

0.1

Impairment of fixed assets (4)

—

0.1

—

0.0

Impairment of right-of-use assets (5)

—

0.4

—

0.1

Gain on modification of office lease (6)

—

(0.6

—

Adjusted EBITDA margin

17.2

17.1

17.0

Net income attributable to Korn Ferry

65,265

58,414

204,300

181,818

Accelerated depreciation on Digital platform (1)

1,696

—

13,846

—

Integration/acquisition costs (2)

1,587

2,127

4,420

7,099

Restructuring charges, net (3)

—

1,316

—

1,892

Impairment of fixed assets (4)

—

509

—

509

Impairment of right-of-use assets (5)

—

2,452

—

2,452

Gain on modification of office lease (6)

—

(13,907

)

—

Tax effect on the adjusted items (7)

(865

)

(1,555

)

(1,243

)

(2,700

)

Adjusted net income attributable to Korn Ferry

67,683

63,263

207,416

191,070

(1)

Depreciation and amortization includes $1.7 million and $13.8 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and nine months ended January 31, 2026, respectively.

(2)

Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.

(3)

Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.

(4)

Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.

(5)

Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.

(6)

Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.

(7)

Tax effect on accelerated depreciation on Digital platform, integration/acquisition costs, restructuring charges, net, impairment of fixed assets and right-of-use assets and gain on modification of office lease.

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

(unaudited)

Three Months Ended

January 31,

Nine Months Ended

January 31,

2026

2025

2026

2025

Basic earnings per common share

1.25

1.12

3.91

3.46

Accelerated depreciation on Digital platform (1)

0.04

—

0.27

—

Integration/acquisition costs (2)

0.03

0.04

0.08

0.14

Restructuring charges, net (3)

—

0.02

—

0.03

Impairment of fixed assets (4)

—

0.01

—

0.01

Impairment of right-of-use assets (5)

—

0.05

—

0.05

Gain on modification of office lease (6)

—

(0.27

)

—

Tax effect on the adjusted items (7)

(0.02

)

(0.03

)

(0.02

)

(0.05

)

Adjusted basic earnings per share

1.30

1.21

3.97

3.64

Diluted earnings per common share

1.23

1.10

3.84

3.40

Accelerated depreciation on Digital platform (1)

0.04

—

0.26

—

Integration/acquisition costs (2)

0.03

0.04

0.07

0.13

Restructuring charges, net (3)

—

0.02

—

0.03

Impairment of fixed assets (4)

—

0.01

—

0.01

Impairment of right-of-use assets (5)

—

0.05

—

0.05

Gain on modification of office lease (6)

—

(0.26

)

—

Tax effect on the adjusted items (7)

(0.02

)

(0.03

)

(0.02

)

(0.05

)

Adjusted diluted earnings per share

1.28

1.19

3.89

3.57

(1)

(2)

Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.

(3)

Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.

(4)

Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment.

(5)

Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices.

(6)

Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.

(7)

KORN FERRY AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED

(dollars in thousands)

(unaudited)

Three Months Ended January 31,

2026

2025

Net income attributable to

Korn Ferry

Net income attributable to

Korn Ferry margin

Net income attributable to

Korn Ferry

Net income attributable to

Korn Ferry margin

Consolidated

65,265

9.1

58,414

8.7

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Consulting

166,931

170,202

28,417

17.0

158,704

161,382

28,026

17.7

Digital

94,014

94,199

29,099

31.0

90,823

90,836

28,408

31.3

Executive Search:

North America

145,540

146,784

42,138

29.0

128,264

129,889

37,175

29.0

EMEA

55,318

55,784

9,459

17.1

47,840

48,087

7,845

16.4

Asia Pacific

24,073

24,218

5,331

22.1

21,664

21,794

4,504

20.8

Latin America

7,018

7,026

1,223

17.4

6,803

6,807

1,696

24.9

Total Executive Search

231,949

233,812

58,151

25.1

204,571

206,577

51,220

25.0

Professional Search & Interim

137,017

138,188

29,065

21.2

129,957

130,854

27,265

21.0

RPO

87,474

88,641

13,641

15.6

84,674

86,889

12,743

15.0

Corporate

—

(35,307

)

—

(33,173

)

Consolidated

717,385

725,042

123,066

17.2

668,729

676,538

114,489

17.1

Nine Months Ended January 31,

2026

2025

Net income attributable to

Korn Ferry

Net income attributable to

Korn Ferry margin

Net income attributable to

Korn Ferry

Net income attributable to

Korn Ferry margin

Consolidated

204,300

9.5

181,818

9.0

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Fee revenue

Total revenue

Adjusted EBITDA

Adjusted EBITDA margin

Consulting

509,734

518,831

87,490

17.2

493,345

501,533

86,426

17.5

Digital

274,241

274,681

85,438

31.2

271,896

272,085

84,219

31.0

Executive Search:

North America

427,299

431,565

125,332

29.3

392,907

397,395

109,180

27.8

EMEA

160,999

162,077

27,373

17.0

140,609

141,495

22,597

16.1

Asia Pacific

72,905

73,321

16,185

22.2

63,707

64,038

13,154

20.6

Latin America

20,950

20,984

4,497

21.5

21,982

21,992

7,046

32.1

Total Executive Search

682,153

687,947

173,387

25.4

619,205

624,920

151,977

24.5

Professional Search & Interim

412,017

415,834

87,293

21.2

372,805

375,572

80,174

21.5

RPO

269,552

273,092

42,203

15.7

260,789

267,149

38,136

14.6

Corporate

—

(107,530

)

—

(98,207

)

Consolidated

2,147,697

2,170,385

368,281

17.1

2,018,040

2,041,259

342,725

17.0