Korn Ferry (KFY) Q2 2025 Earnings Call Highlights: Strategic Growth Amid Revenue Challenges

GuruFocus.com12-06

Consolidated Fee Revenue: $674 million, down 4% year-over-year, flat sequentially. Adjusted EBITDA Margin: 17.4%, improved for the sixth consecutive quarter. Adjusted EBITDA Growth: $18 million or 19%...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2489073471?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/3cHPth33O.V1cp6gup.0GA--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/b70916962ce0108f81effc2423942360","is_english":true,"pubTime":"2024-12-06 15:03","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2489073471","market":"us","top_or_hot":-1,"title":"Korn Ferry (KFY) Q2 2025 Earnings Call Highlights: Strategic Growth Amid Revenue Challenges","media":"GuruFocus.com","content":"<div>\n<p>Consolidated Fee Revenue: $674 million, down 4% year-over-year, flat sequentially.\nAdjusted EBITDA Margin: 17.4%, improved for the sixth consecutive quarter.\nAdjusted EBITDA Growth: $18 million or 19%...</p>\n\n<a href=\"https://finance.yahoo.com/news/korn-ferry-kfy-q2-2025-070337383.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Korn Ferry (KFY) Q2 2025 Earnings Call Highlights: Strategic Growth Amid Revenue Challenges</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKorn Ferry (KFY) Q2 2025 Earnings Call Highlights: Strategic Growth Amid Revenue Challenges\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-06 15:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/korn-ferry-kfy-q2-2025-070337383.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Consolidated Fee Revenue: $674 million, down 4% year-over-year, flat sequentially.\nAdjusted EBITDA Margin: 17.4%, improved for the sixth consecutive quarter.\nAdjusted EBITDA Growth: $18 million or 19%...</p>\n\n<a href=\"https://finance.yahoo.com/news/korn-ferry-kfy-q2-2025-070337383.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KFY","symbol_name":"光辉国际咨询顾问","start_time":0,"source_url":"https://finance.yahoo.com/news/korn-ferry-kfy-q2-2025-070337383.html","article_id":"2489073471","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/3cHPth33O.V1cp6gup.0GA--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/b70916962ce0108f81effc2423942360"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489073471","pubTimestamp":1733468617,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Consolidated Fee Revenue: $674 million, down 4% year-over-year, flat sequentially.Adjusted EBITDA Margin: 17.4%, improved for the sixth consecutive quarter.Adjusted EBITDA Growth: $18 million or 19% year-over-year.Adjusted Diluted Earnings Per Share: $1.21, up 25% year-over-year.GAAP Diluted Earnings Per Share: $1.14 in the second quarter.Investable Cash Position: $537 million, up 16% year-over-year.Stock Repurchase: $33 million or about 456,000 shares in the second quarter.Executive Search Fee Revenue: $206 million, up 2% year-over-year.RPO Fee Revenue: $88 million, flat year-over-year and sequentially.New Business for Digital: $105 million, up 11% year-over-year.GuruFocus has detected 5 Warning Sign with KFY.Korn Ferry  has maintained strong bill rates and improved employee productivity, with fee revenue per employee now 35% higher than pre-pandemic levels.Interim fee revenue decreased by approximately 17% year-over-year, reflecting broader industry trends and market challenges.A: Ga","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"KFY":"光辉国际咨询顾问"},"translate_title":"光辉国际(KFY)2025年第二季度收益看涨期权亮点：收入挑战中的战略增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KFY":1},"content_text":"Consolidated Fee Revenue: $674 million, down 4% year-over-year, flat sequentially.\nAdjusted EBITDA Margin: 17.4%, improved for the sixth consecutive quarter.\nAdjusted EBITDA Growth: $18 million or 19% year-over-year.\nAdjusted Diluted Earnings Per Share: $1.21, up 25% year-over-year.\nGAAP Diluted Earnings Per Share: $1.14 in the second quarter.\nInvestable Cash Position: $537 million, up 16% year-over-year.\nStock Repurchase: $33 million or about 456,000 shares in the second quarter.\nQuarterly Dividend: $0.37 per share.\nConsulting Fee Revenue: $167 million, down 6% year-over-year, flat sequentially.\nDigital Fee Revenue: $93 million, down 4% year-over-year, up 5% sequentially.\nExecutive Search Fee Revenue: $206 million, up 2% year-over-year.\nProfessional Search and Interim Fee Revenue: $121 million, down 12% year-over-year, flat sequentially.\nRPO Fee Revenue: $88 million, flat year-over-year and sequentially.\nNew Business for Digital: $105 million, up 11% year-over-year.\nInterim Bill Rate: $140 per hour, up 11% year-over-year.\nConsulting Average Bill Rate: $419 per hour, up 1% year-over-year.\n\n\nWarning! GuruFocus has detected 5 Warning Sign with KFY.\n\nRelease Date: December 05, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nKorn Ferry (NYSE:KFY) reported a sixth consecutive quarter of increased EBITDA margin, reaching over 17%.\nThe company has made significant investments in productizing its intellectual property and proprietary data assets, enhancing client offerings.\nKorn Ferry (NYSE:KFY) launched a new HR integrated software platform, the Korn Ferry Talent Suite, reflecting its commitment to expanding differentiated IP and products.\nThe acquisition of Trilogy International expands Korn Ferry (NYSE:KFY)'s interim professional offerings in EMEA and North America, targeting a large addressable market.\nKorn Ferry (NYSE:KFY) has maintained strong bill rates and improved employee productivity, with fee revenue per employee now 35% higher than pre-pandemic levels.\n\n Negative Points \n\nConsolidated fee revenue in the second quarter was down 4% year-over-year, indicating challenges in maintaining growth.\nInterim fee revenue decreased by approximately 17% year-over-year, reflecting broader industry trends and market challenges.\nConsulting fee revenue was down 6% year-over-year, with slower delivery of backlog assignments impacting results.\nThe digital segment saw a 4% year-over-year decline in fee revenue, despite strong new business growth.\nThe company anticipates a seasonal decline in the third quarter due to fewer working days, impacting revenue expectations.\n\n Q & A Highlights \nQ: Can you provide more color on your expectations for revenue trends by segment in the third quarter, and how much revenue are you assuming from the Trilogy acquisition? A: Gary Burnison, CEO: We expect a seasonal decline in the third quarter due to fewer working days, impacting revenue by $30 million to $40 million. Trilogy is expected to contribute around $14 million to $15 million in the quarter.\nQ: What is the opportunity for the interim business in Europe with the Trilogy acquisition, given the current challenging revenue trend? A: Gary Burnison, CEO: Despite the current cycle, we believe there's no structural change in the interim market. Trilogy provides a foundation to tap into the large EMEA market, and we are confident in its long-term potential.\nQ: How do you see the demand environment for your digital business, given the recent year-over-year revenue decline? A: Gary Burnison, CEO: The decline is due to a shift towards subscription agreements. We expect positive growth as we complete our integrated technology platform, the Korn Ferry Talent Suite, which will enhance client access to our products.\nQ: Can you elaborate on the impact of larger consulting contracts on revenue and when you expect this to normalize? A: Gary Burnison, CEO: Larger contracts take longer to implement, impacting revenue. We expect normalization in a few quarters as we adjust to the new mix and improve our leverage model.\nQ: How has the Korn Ferry brand impacted your interim business, and what are the sources of margin improvement? A: Gary Burnison, CEO: The Korn Ferry brand has significantly enhanced client engagement and cross-referrals. Margin improvements are driven by strategic decisions made over a year ago, focusing on profitability and resource allocation.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489073471"}