Korn Ferry's Q2 2025 Earnings: Growth Amidst Market Challenges

Korn Ferry (NYSE: KFY), a global organizational consulting firm, reported its second-quarter fiscal 2025 earnings on December 5, 2024, offering insights into the company's performance and strategic initiatives amidst market challenges. The earnings call highlighted Korn Ferry's commitment to growth and profitability, despite a seasonal decline in revenue expectations for the third quarter.

Fee revenue in the second quarter was $674.4 million, a year-over-year decrease of 4% but flat on a sequential quarter basis. Korn Ferry's sixth consecutive quarter of improved profitability included operating income of $87.5 million and Adjusted EBITDA of $117.0 million. Operating margin increased by 980 basis points (bps) year-over-year to 13.0%, while Adjusted EBITDA margin rose by 340 bps to 17.4%.

Korn Ferry's acquistion of Trilogy International, a leading provider of technology/digital interim talent across Europe and the United States, is expected to contribute around $14 million to $15 million in revenue in the third quarter. This expansion of interim professional offerings in EMEA and North America targets a substantial addressable market, demonstrating Korn Ferry's commitment to strategic growth.


The company's strong execution was evident in stable Talent Acquisition fee revenues, improving Digital new business trends, and steady Consulting performance. Korn Ferry's investments in productizing its intellectual property and proprietary data assets, along with the launch of the Korn Ferry Talent Suite, reflect the company's dedication to enhancing client offerings and driving long-term growth.

Korn Ferry's strategic initiatives, including the launch of the Korn Ferry Talent Suite and the acquisition of Trilogy International, position the company to capitalize on addressable market opportunities and tap into the large EMEA market. These moves are expected to drive long-term revenue growth and profitability.


In conclusion, Korn Ferry's Q2 2025 earnings call underscored the company's resilience and strategic focus amidst market challenges. Despite a seasonal decline in revenue expectations for the third quarter, Korn Ferry's commitment to productizing intellectual property, expanding interim professional offerings, and enhancing client offerings positions the company well for long-term growth and profitability.