Korn Ferry's Q4 2025: Contradictions in Executive Search Growth, Digital Performance, and Economic Impact

Executive search business growth and trends, digital and consulting new business performance, impact of economic uncertainty on business performance, demand stability and economic environment, and digital business performance are the key contradictions discussed in Korn Ferry's latest 2025Q4 earnings call.



Strong Fourth Quarter Performance:
- Korn Ferry reported consolidated fee revenue of $712 million for the fourth quarter, up 4% year-over-year at constant currency.
- Adjusted EBITDA grew 8% to $121 million, and adjusted EBITDA margin increased by 70 basis points to 17%.
- This performance was driven by strong execution across all financial and strategic objectives despite challenging economic conditions.

Executive Search Growth:
- Executive Search grew 15% year-over-year at constant currency for the fourth consecutive quarter.
- The growth was attributed to demographic factors, the demand for a different type of leader, and the company's track record in meeting client needs.

Digital Subscription and Licensed Business Increase:
- Digital subscription and licensed new business in the fourth quarter grew to 40% of the total digital new business, up from 37% in the prior year.
- This increase is a result of adding more stability and predictability to the fee revenue base and improved capacity through new client partner hires.

New Business Trends and Regional Performance:
- New business grew 3% year-over-year, including RPO, and 5% excluding RPO, despite external challenges.
- Fee revenue in APAC and EMEA regions grew 8% and 9% year-over-year at constant currency, respectively, driven by growth in Executive Search and RPO.
- The Americas region remained essentially flat, with growth in Executive Search and RPO offset by declines in other segments.