Korn Ferry (KFY) reports earnings

The report was filed on March 11, 2025

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Korn Ferry (KFY+0.06%) has submitted its Form 10-Q filing for the quarterly period ended January 31, 2025.

The filing reports fee revenue of $668.7 million for the quarter, which remained flat compared to the same period last year. The company noted a slight increase in revenue from Executive Search North America and RPO, offset by a decline in Consulting.

Net income attributable to Korn Ferry was $58.4 million, with an Adjusted EBITDA of $114.5 million. The net income margin was 8.7%, and the Adjusted EBITDA margin was 17.1%.

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Compensation and benefits expenses decreased by 7% to $425.3 million, driven by a reduction in deferred compensation expenses and lower performance-related bonuses.

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General and administrative expenses increased by 4% to $65.3 million, primarily due to impairment charges related to the reduction of the company's real estate footprint.

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The company reported a decrease in cost of services to $78.0 million, mainly due to lower contractor costs following the acquisition of Trilogy.

Depreciation and amortization expenses increased by 5% to $20.5 million, reflecting ongoing technology investments.

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Interest expense, net was $5.5 million, up from the previous year, primarily due to increased interest expenses on deferred compensation plans.

The income tax provision for the quarter was $22.8 million, with an effective tax rate of 27.8%, compared to 13.1% in the prior year, reflecting a non-recurring tax benefit in the previous year.

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Korn Ferry completed the acquisition of Trilogy International for $44.4 million, expanding its Professional Search & Interim business.

The company declared a quarterly dividend of $0.48 per share, reflecting a 30% increase, with payment scheduled for April 15, 2025.

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This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Korn Ferry quarterly 10-Q report dated March 11, 2025. To report an error, please email earnings@qz.com.