Korn Ferry (KFY)

[US Market News]

Korn Ferry Announces Third Quarter Fiscal 2026 Results of Operations

March 9, 2026 6:45 AM
Business Wire

Highlights

• 
  Korn Ferry reports Q3 FY'26 fee revenue of $717.4 million, an increase of 7% year-over-year with growth in all solutions.
  
  


• 
  Net income attributable to Korn Ferry increased 12% year-over-year, with a margin of 9.1%.
  
  


• 
  Adjusted EBITDA increased 8% year-over-year, with a margin of 17.2%.
  
  


• 
  Diluted and adjusted diluted earnings per share were up 12% and 8% year-over-year, respectively.
  
  


• 
  Estimated remaining fees under existing contracts at the end of the third quarter was $1.9 billion, up 11% year-over-year, led by Digital +16%, Consulting +12% and RPO +10%.
  
  

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	%			17.1	%			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			$	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:

• 
  Q4 FY’26 fee revenue is expected to be in the range of $730 million and $750 million; and
  
  


• 
  Q4 FY’26 diluted earnings per share is expected to range between $1.34 to $1.40.
  
  

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:

• 
  Adjusted net income attributable to Korn Ferry, adjusted to exclude accelerated depreciation on our Digital platform, integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net of income tax effect;
  
  


• 
  Adjusted basic and diluted earnings per share, adjusted to exclude cost associated with accelerated depreciation on our Digital platform, integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net of income tax effect;
  
  


• 
  Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period; and
  
  


• 
  Consolidated and Executive Search Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, restructuring charges, impairment of fixed assets, impairment of right-of-use assets and gain on modification of an office lease, net when applicable, and Consolidated and Executive Search Adjusted EBITDA margin.
  
  

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	%			0.1	%			0.1	%			0.2	%
Income tax provision			3.8	%			3.4	%			3.6	%			3.5	%
Interest expense, net			0.8	%			0.8	%			0.7	%			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	%			17.1	%			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

Explanation of Non-GAAP Adjustments
(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

Explanation of Non-GAAP Adjustments
(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
(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	%

 

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Media: Dan Gugler, [phone]

Original: Korn Ferry Announces Third Quarter Fiscal 2026 Results of Operations