Korn Ferry (NYSE: KFY) reported its fiscal Q1 2025 results, showcasing growth in revenue and profitability despite challenging economic conditions.
Revenue and Profit
For the first quarter of fiscal 2025, Korn Ferry reported fee revenue of $674.9 million, a 3% year-over-year decrease. However, the Executive Search division saw a fee revenue growth of 2% year-over-year. Net income attributable to Korn Ferry stood at $62.6 million, with diluted earnings per share (EPS) of $1.17. Operating income for the quarter was $76.1 million, resulting in an operating margin of 11.3%, a significant increase of 320 basis points from the previous year. Adjusted EBITDA also saw an improvement, reaching $111.2 million, which translates to a margin of 16.5%, up 280 basis points from the same quarter last year.
Strategic Moves and Operational Efficiency
Korn Ferry made several strategic moves during the quarter, including repurchasing 351,250 shares of stock for $23.5 million and declaring a quarterly dividend of $0.37 per share. This dividend is payable on October 15, 2024, to stockholders of record as of September 19, 2024. CEO Gary D. Burnison expressed satisfaction with the results, noting that the company’s diversified strategy and broad offerings have led to greater profitability and sustained success.
Future Outlook
For the next quarter, Korn Ferry forecasts fee revenues to be in the range of $655 million to $685 million. Diluted EPS is expected to be between $1.11 and $1.23. On an adjusted basis, the company anticipates an adjusted diluted EPS between $1.14 and $1.26. This guidance reflects the company’s confidence in its diversified strategy and continued focus on cost management and operational efficiency.
Korn Ferry demonstrated strong performance in the first quarter of fiscal 2025, exceeding expectations in revenue and profitability while continuing to follow a strategy of diversification and sustainable growth.
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