Highlights

Korn Ferry reports Q2 FY'26 fee revenue of $721.7 million, an increase of 7% year-over-year, 6% at constant currency.
- Fee revenue grew 10% and 17% year-over-year in Executive Search and Professional Search & Interim, respectively.
Net income attributable to Korn Ferry was $72.4 million, an increase of 19% year-over-year, with a margin of 10.0%, an increase of 100bps year-over-year.
Adjusted EBITDA was $124.8 million, an increase of 7% year-over-year, with a margin of 17.3%, essentially flat year-over-year.
Diluted and adjusted diluted earnings per share were $1.36 and $1.33 in Q2 FY'26, up 19% and 10% year-over-year, respectively.
Estimated remaining fees under existing contracts at the end of the second quarter was $1.842 billion, up 20% year-over-year.

Korn Ferry (NYSE:KFY), a global consulting firm, today announced second quarter fee revenue of $721.7 million. In addition, second quarter diluted earnings per share was $1.36 and adjusted diluted earnings per share was $1.33.

"Our performance during the quarter was outstanding, as we achieved our fourth consecutive quarter of accelerated growth, led by our Marquee and Diamond accounts," said Gary D. Burnison, CEO, Korn Ferry. "In a world defined by disruption, digitization and economic fluctuation, organizations require more than static strategies. They need the ability to adapt, align and act. Korn Ferry sits at the intersection of these opportunities, unlocking the potential in people and organizations—synchronizing strategy, operations and talent to accelerate performance, fuel growth and inspire a legacy of change."

Selected Financial Results (dollars in millions, except per share amounts) ^(a)

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	721.7		$	674.4		$	1,430.3		$	1,349.3
Total revenue	$	729.8		$	682.0		$	1,445.3		$	1,364.7
Estimated remaining fees under existing contracts (b)	$	1,842.4		$	1,530.4		$	1,842.4		$	1,530.4
Net income attributable to Korn Ferry	$	72.4		$	60.8		$	139.0		$	123.4
Net income attributable to Korn Ferry margin		10.0	%		9.0	%		9.7	%		9.1	%
Basic earnings per share	$	1.38		$	1.16		$	2.66		$	2.34
Diluted earnings per share	$	1.36		$	1.14		$	2.61		$	2.30

Adjusted Results (c):	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	124.8		$	117.0		$	245.2		$	228.2
Adjusted EBITDA margin		17.3	%		17.4	%		17.1	%		16.9	%
Adjusted net income attributable to Korn Ferry (d)	$	70.5		$	64.7		$	139.7		$	127.8
Adjusted basic earnings per share (d)	$	1.35		$	1.23		$	2.67		$	2.42
Adjusted diluted earnings per share (d)	$	1.33		$	1.21		$	2.63		$	2.38

____________________

(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 lease modification, 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):

	Second Quarter					Year to Date
	FY'26			FY'25		FY'26			FY'25
Gain on modification of office lease	$	(13.9	)	$	—	$	(13.9	)	$	—
Integration/acquisition costs	$	1.3		$	3.9	$	2.8		$	5.0
Restructuring charges, net	$	—		$	0.6	$	—		$	0.6

____________________

(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):

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Gain on modification of office lease	$	(13.9	)	$	—		$	(13.9	)	$	—
Accelerated depreciation on Digital platform	$	10.2		$	—		$	12.2		$	—
Integration/acquisition costs	$	1.3		$	3.9		$	2.8		$	5.0
Restructuring charges, net	$	—		$	0.6		$	—		$	0.6
Tax effect on the adjusted items	$	0.5		$	(0.6	)	$	(0.4	)	$	(1.1	)

The Company reported fee revenue in Q2 FY'26 of $721.7 million, an increase of 7% year-over-year (up 6.0% at constant currency).

Net income attributable to Korn Ferry was $72.4 million with a margin of 10.0% in Q2 FY'26, compared to Q2 FY'25 net income attributable to Korn Ferry of $60.8 million with a margin of 9.0%, an increase of 100bps. 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 increases in compensation and benefits expenses and cost of services.

Adjusted EBITDA was $124.8 million in Q2 FY'26 compared to $117.0 million in Q2 FY'25. Adjusted EBITDA margin was 17.3% in Q2 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 increases in compensation and benefits expenses and cost of services.

Results by Solution Selected Consulting Data (dollars in millions) ^(a)

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	172.8		$	166.8		$	342.8		$	334.6
Total revenue	$	175.9		$	169.4		$	348.6		$	340.2

Estimated remaining fees under existing contracts (b)	$	373.0		$	352.2		$	373.0		$	352.2
Ending number of consultants and execution staff (c)		1,537			1,646			1,537			1,646
Hours worked in thousands (d)		376			398			743			793
Average bill rate (e)	$	460		$	419		$	461		$	422

Adjusted Results (f):	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	30.3		$	29.1		$	59.1		$	58.4
Adjusted EBITDA margin		17.5	%		17.5	%		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:

	Second Quarter					Year to Date
	FY'26			FY'25		FY'26			FY'25
Gain on modification of office lease	$	(4.1	)	$	—	$	(4.1	)	$	—
Restructuring charges, net	$	—		$	0.4	$	—		$	0.4

Fee revenue was $172.8 million in Q2 FY'26 compared to $166.8 million in Q2 FY'25, an increase of $6.0 million or 4% (up 3% on a constant currency basis). The year-over-year increase in Consulting fee revenue was primarily driven by a 10% increase in average bill rates.

Adjusted EBITDA was $30.3 million in Q2 FY'26 compared to $29.1 million in the year-ago quarter. Adjusted EBITDA margin in the quarter was 17.5%, flat year-over-year.

Selected Digital Data (dollars in millions) ^(a)

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	91.0		$	92.9		$	180.2		$	181.1
Total revenue	$	91.2		$	93.0		$	180.5		$	181.2

Estimated remaining fees under existing contracts (b)	$	397.2		$	371.7		$	397.2		$	371.7
Ending number of consultants		231			260			231			260
Subscription & License fee revenue	$	36.2		$	34.6		$	73.4		$	68.7

Adjusted Results (c):	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	28.7		$	29.2		$	56.3		$	55.8
Adjusted EBITDA margin		31.6	%		31.4	%		31.3	%		30.8	%

____________________

(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:

	Second Quarter					Year to Date
	FY'26			FY'25		FY'26			FY'25
Gain on modification of office lease	$	(2.0	)	$	—	$	(2.0	)	$	—

Fee revenue was $91.0 million in Q2 FY'26 compared to $92.9 million in Q2 FY'25, a decrease of $1.9 million or 2% (down 3% on a constant currency basis).

Adjusted EBITDA was $28.7 million in Q2 FY'26, compared to $29.2 million in the year-ago quarter. Adjusted EBITDA margin was 31.6%, essentially flat compared to the year-ago quarter.

Selected Executive Search Data^(a)(dollars in millions) ^(b)

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	226.0		$	206.0		$	450.2		$	414.6
Total revenue	$	227.9		$	208.0		$	454.1		$	418.3

Estimated remaining fees under existing contracts (c)	$	72.8		$	62.2		$	72.8		$	62.2
Ending number of consultants		569			555			569			555
Average number of consultants		572			557			565			549
Engagements billed		3,762			3,566			5,826			5,474
New engagements (d)		1,633			1,567			3,229			3,123

Adjusted Results (e):	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	57.8		$	51.4		$	115.2		$	100.8
Adjusted EBITDA margin		25.6	%		24.9	%		25.6	%		24.3	%

____________________

(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:

	Second Quarter					Year to Date
	FY'26			FY'25		FY'26			FY'25
Gain on modification of office lease	$	(3.7	)	$	—	$	(3.7	)	$	—
Restructuring charges, net	$	—		$	0.2	$	—		$	0.2

Fee revenue was $226.0 million in Q2 FY'26 compared to $206.0 million in Q2 FY'25, an increase of $20.0 million or 10% (up 9% 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 North America, EMEA and APAC regions.

Adjusted EBITDA was $57.8 million in Q2 FY'26 compared to $51.4 million in the year-ago quarter, an increase of 12% year-over-year. Adjusted EBITDA margin increased by 70bps to 25.6% in Q2 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin was due to higher fee revenue, partially offset by an increase in compensation and benefits expense.

Selected Professional Search & Interim Data (dollars in millions) ^(a)

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	141.1		$	121.1		$	275.0		$	242.8
Total revenue	$	142.5		$	122.0		$	277.6		$	244.7

Permanent Placement:
Fee revenue	$	56.2		$	52.8		$	110.9		$	105.0
Estimated remaining fees under existing contracts (b)	$	15.9		$	14.2		$	15.9		$	14.2
Engagements billed		1,843			1,740			2,918			2,844
New engagements (c)		1,004			947			1,967			1,919
Ending number of consultants		301			292			301			292
Interim:
Fee revenue	$	84.9		$	68.3		$	164.1		$	137.8
Estimated remaining fees under existing contracts (b)	$	96.5		$	70.9		$	96.5		$	70.9
Average bill rate (d)	$	142		$	140		$	140		$	137
Average weekly billable consultants (e)		1,237			980			1,227			1,024

Adjusted Results (f):	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	30.2		$	27.2		$	58.2		$	52.9
Adjusted EBITDA margin		21.4	%		22.5	%		21.2	%		21.8	%

____________________

(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:

	Second Quarter					Year to Date
	FY'26			FY'25		FY'26			FY'25
Gain on modification of office lease	$	(2.6	)	$	—	$	(2.6	)	$	—
Integration/acquisition costs	$	1.3		$	1.4	$	2.8		$	2.5

Fee revenue was $141.1 million in Q2 FY'26 compared to $121.1 million in Q2 FY'25, an increase of $20.0 million or 17% (up 16% at constant currency). Fee revenue increased primarily due to higher fee revenue from Interim associated with the acquisition of Trilogy International effective November 1, 2024.

Adjusted EBITDA was $30.2 million in Q2 FY'26 compared to $27.2 million in the year-ago quarter. Adjusted EBITDA margin was 21.4% in Q2 FY'26, a decrease of 110bps compared to the year-ago quarter. Adjusted EBITDA increased due to an increase in fee revenue, partially offset by an increase in cost of services. Adjusted EBITDA margin decreased due to the growth in fee revenue from Interim services which have lower margins than permanent placement.

Selected Recruitment Process Outsourcing ("RPO") Data (dollars in millions) ^(a)

	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Fee revenue	$	90.8		$	87.6		$	182.1		$	176.1
Total revenue	$	92.3		$	89.6		$	184.5		$	180.3

Estimated remaining fees under existing contracts (b)	$	886.9		$	659.2		$	886.9		$	659.2
RPO new business (c)	$	253.0		$	101.1		$	352.3		$	204.7

Adjusted Results (d):	Second Quarter						Year to Date
	FY'26			FY'25			FY'26			FY'25
Adjusted EBITDA	$	14.2		$	12.9		$	28.6		$	25.4
Adjusted EBITDA margin		15.7	%		14.7	%		15.7	%		14.4	%

____________________

(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:

	Second Quarter					Year to Date
	FY'26			FY'25		FY'26			FY'25
Gain on modification of office lease	$	(1.5	)	$	—	$	(1.5	)	$	—

Fee revenue was $90.8 million in Q2 FY'26 compared to $87.6 million in Q2 FY'25, an increase of $3.2 million or 4% (up 3% at constant currency). RPO fee revenue increased primarily due to new logo clients in North America.

Adjusted EBITDA was $14.2 million in Q2 FY'26 compared to $12.9 million in the year-ago quarter. Adjusted EBITDA margin increased 100bps to 15.7% in Q2 FY'26. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue.

Outlook

Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

Q3 FY'26 fee revenue is expected to be in the range of $680 million and $694 million; and
Q3 FY'26 diluted earnings per share is expected to range between $1.15 to $1.21.

On a consolidated adjusted basis:

Q3 FY'26 adjusted diluted earnings per share is expected to be in the range from $1.19 to $1.25.

	Q3 FY'26 Earnings Per Share Outlook
	Low			High

Consolidated diluted earnings per share	1.15			1.21
Integration/acquisition costs and accelerated depreciation on Digital platform	0.05			0.05
Tax rate impact	(0.01		)	(0.01		)
Consolidated adjusted diluted earnings per share⁽¹⁾	$	1.19		$	1.25

____________________

(1)

Consolidated adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table.

Earnings Conference Call Webcast

The earnings conference call will be held today at 12:00 PM (EST) 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 impacts of sunsetting our Digital platform, 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, 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 expansion 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 integration/acquisition costs, restructuring charges, gain on modification of an office lease and cost associated with accelerated depreciation on our Digital platform, net of income tax effect;
Adjusted basic and diluted earnings per share, adjusted to exclude integration/acquisition costs, restructuring charges, gain on modification of an office lease and cost associated with accelerated depreciation on our Digital platform, 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, gain on modification of an office lease and restructuring charges, 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 charges 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 charges, 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 and 4) accelerated depreciation associated with the decision to sunset our Digital platform. 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 October 31,						Six Months Ended October 31,
	2025			2024			2025			2024

	(unaudited)
Fee revenue	$	721,699		$	674,365		$	1,430,312		$	1,349,311
Reimbursed out-of-pocket engagement expenses		8,101			7,595			15,031			15,410
Total revenue		729,800			681,960			1,445,343			1,364,721

Compensation and benefits		462,034			437,427			923,445			889,202
General and administrative expenses		50,250			64,541			114,124			124,540
Reimbursed expenses		8,101			7,595			15,031			15,410
Cost of services		79,087			64,657			156,281			132,201
Depreciation and amortization		31,573			19,688			54,259			39,266
Restructuring charges, net		—			576			—			576
Total operating expenses		631,045			594,484			1,263,140			1,201,195

Operating income		98,755			87,476			182,203			163,526
Other income, net		7,075			5,391			19,827			19,896
Interest expense, net		(5,763	)		(5,626	)		(9,279	)		(9,571	)
Income before provision for income taxes		100,067			87,241			192,751			173,851
Income tax provision		26,645			24,898			51,895			47,252
Net income		73,422			62,343			140,856			126,599
Net income attributable to noncontrolling interest		(1,023	)		(1,543	)		(1,821	)		(3,195	)
Net income attributable to Korn Ferry	$	72,399		$	60,800		$	139,035		$	123,404

Earnings per common share attributable to Korn Ferry:
Basic	$	1.38		$	1.16		$	2.66		$	2.34
Diluted	$	1.36		$	1.14		$	2.61		$	2.30

Weighted-average common shares outstanding:
Basic		51,745			51,957			51,606			51,953
Diluted		52,517			52,750			52,557			52,864

KORN FERRY AND SUBSIDIARIES FINANCIAL SUMMARY BY REPORTING SEGMENT (dollars in thousands) (unaudited)

	Three Months Ended October 31,						Six Months Ended October 31,
	2025		2024		% Change		2025		2024		% Change
Fee revenue:
Consulting	$	172,841	$	166,771	3.6	%	$	342,803	$	334,641	2.4	%
Digital		91,029		92,893	(2.0	%)		180,227		181,073	(0.5	%)
Executive Search:
North America		142,105		129,891	9.4	%		281,759		264,643	6.5	%
EMEA		51,900		46,788	10.9	%		105,681		92,769	13.9	%
Asia Pacific		24,131		21,464	12.4	%		48,832		42,043	16.1	%
Latin America		7,815		7,856	(0.5	%)		13,932		15,179	(8.2	%)
Total Executive Search ^(a)		225,951		205,999	9.7	%		450,204		414,634	8.6	%
Professional Search & Interim		141,099		121,107	16.5	%		275,000		242,848	13.2	%
RPO		90,779		87,595	3.6	%		182,078		176,115	3.4	%
Total fee revenue		721,699		674,365	7.0	%		1,430,312		1,349,311	6.0	%
Reimbursed out-of-pocket engagement expenses		8,101		7,595	6.7	%		15,031		15,410	(2.5	%)
Total revenue	$	729,800	$	681,960	7.0	%	$	1,445,343	$	1,364,721	5.9	%

(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)

	October 31, 2025			April 30, 2025 ⁽¹⁾
	(unaudited)
ASSETS
Cash and cash equivalents	$	761,579		$	1,006,964
Marketable securities		39,509			36,388
Receivables due from clients, net of allowance for doubtful accounts of $43,418 and $40,461 at October 31, 2025 and April 30, 2025, respectively		607,303			565,255
Income taxes and other receivables		75,254			38,394
Unearned compensation		67,603			61,649
Prepaid expenses and other assets		54,989			41,488
Total current assets		1,606,237			1,750,138

Marketable securities, non-current		237,227			233,626
Property and equipment, net		176,506			173,610
Operating lease right-of-use assets, net		131,861			152,712
Cash surrender value of company-owned life insurance policies, net of loans		270,984			252,621
Deferred income taxes		127,324			144,560
Goodwill		948,284			948,832
Intangible assets, net		57,901			70,193
Unearned compensation, non-current		137,290			106,965
Investments and other assets		29,319			27,967
Total assets	$	3,722,933		$	3,861,224

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	53,032		$	58,884
Income taxes payable		23,243			23,079
Compensation and benefits payable		355,256			530,473
Operating lease liability, current		32,996			38,573
Other accrued liabilities		284,722			304,589
Total current liabilities		749,249			955,598

Deferred compensation and other retirement plans		476,882			477,770
Operating lease liability, non-current		118,563			131,762
Long-term debt		398,145			397,736
Deferred tax liabilities		6,276			5,981
Other liabilities		24,033			20,238
Total liabilities		1,773,148			1,989,085

Stockholders' equity
Common stock: $0.01 par value, 150,000 shares authorized, 79,136 and 78,264 shares issued and 51,694 and 51,458 shares outstanding at October 31, 2025 and April 30, 2025, respectively		355,151			364,425
Retained earnings		1,675,964			1,588,274
Accumulated other comprehensive loss, net		(86,960	)		(86,243	)
Total Korn Ferry stockholders' equity		1,944,155			1,866,456
Noncontrolling interest		5,630			5,683
Total stockholders' equity		1,949,785			1,872,139
Total liabilities and stockholders' equity	$	3,722,933		$	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 October 31,						Six Months Ended October 31,
	2025			2024			2025			2024

Net income attributable to Korn Ferry	$	72,399		$	60,800		$	139,035		$	123,404
Net income attributable to non-controlling interest		1,023			1,543			1,821			3,195
Net income		73,422			62,343			140,856			126,599
Income tax provision		26,645			24,898			51,895			47,252
Income before provision for income taxes		100,067			87,241			192,751			173,851
Interest expense, net		5,763			5,626			9,279			9,571
Depreciation and amortization (1)		31,573			19,688			54,259			39,266
Integration/acquisition costs (2)		1,325			3,896			2,833			4,972
Gain on modification of office lease (3)		(13,907	)		—			(13,907	)		—
Restructuring charges, net (4)		—			576			—			576
Adjusted EBITDA	$	124,821		$	117,027		$	245,215		$	228,236

Net income attributable to Korn Ferry margin		10.0	%		9.0	%		9.7	%		9.1	%
Net income attributable to non-controlling interest		0.1	%		0.2	%		0.1	%		0.3	%
Income tax provision		3.7	%		3.7	%		3.6	%		3.5	%
Interest expense, net		0.8	%		0.9	%		0.7	%		0.7	%
Depreciation and amortization (1)		4.4	%		2.9	%		3.8	%		2.9	%
Integration/acquisition costs (2)		0.2	%		0.6	%		0.2	%		0.4	%
Gain on modification of office lease (3)		(1.9	%)		—	%		(1.0	%)		—	%
Restructuring charges, net (4)		—	%		0.1	%		—	%		0.0	%
Adjusted EBITDA margin		17.3	%		17.4	%		17.1	%		16.9	%

Net income attributable to Korn Ferry	$	72,399		$	60,800		$	139,035		$	123,404
Accelerated depreciation on Digital platform (1)		10,173			—			12,150			—
Integration/acquisition costs (2)		1,325			3,896			2,833			4,972
Gain on modification of office lease (3)		(13,907	)		—			(13,907	)		—
Restructuring charges, net (4)		—			576			—			576
Tax effect on the adjusted items (5)		505			(585	)		(378	)		(1,145	)
Adjusted net income attributable to Korn Ferry	$	70,495		$	64,687		$	139,733		$	127,807

Basic earnings per common share	$	1.38		$	1.16		$	2.66		$	2.34
Accelerated depreciation on Digital platform (1)		0.20			—			0.24			—
Integration/acquisition costs (2)		0.03			0.07			0.05			0.09
Gain on modification of office lease (3)		(0.27	)		—			(0.27	)		—
Restructuring charges, net (4)		—			0.01			—			0.01
Tax effect on the adjusted items (5)		0.01			(0.01	)		(0.01	)		(0.02	)
Adjusted basic earnings per share	$	1.35		$	1.23		$	2.67		$	2.42

Diluted earnings per common share	$	1.36		$	1.14		$	2.61		$	2.30
Accelerated depreciation on Digital platform (1)		0.19			—			0.24			—
Integration/acquisition costs (2)		0.03			0.07			0.05			0.09
Gain on modification of office lease (3)		(0.26	)		—			(0.26	)		—
Restructuring charges, net (4)		—			0.01			—			0.01
Tax effect on the adjusted items (5)		0.01			(0.01	)		(0.01	)		(0.02	)
Adjusted diluted earnings per share	$	1.33		$	1.21		$	2.63		$	2.38

Explanation of Non-GAAP Adjustments
(1)		Depreciation and amortization includes $10.2 million and $12.2 million of accelerated depreciation associated with the decision to sunset our Digital platform in the three and six months ended October 31, 2025, respectively.
(2)		Costs associated with previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses.
(3)		Gain on the modification of an office lease where the Company received lease incentives to shorten the lease term.
(4)		Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment.
(5)		Tax effect on integration/acquisition costs, gain on modification of office lease, restructuring charges, net and accelerated depreciation on Digital platform.

KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (dollars in thousands) (unaudited)

	Three Months Ended October 31,
	2025									2024

					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					$	72,399		10.0	%					$	60,800		9.0	%

	Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin		Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin

Consulting	$	172,841	$	175,930	$	30,264		17.5	%	$	166,771	$	169,384	$	29,106		17.5	%
Digital		91,029		91,237		28,732		31.6	%		92,893		93,038		29,188		31.4	%
Executive Search:
North America		142,105		143,566		41,954		29.5	%		129,891		131,419		36,907		28.4	%
EMEA		51,900		52,212		8,771		16.9	%		46,788		47,132		7,487		16.0	%
Asia Pacific		24,131		24,264		5,319		22.0	%		21,464		21,540		4,432		20.6	%
Latin America		7,815		7,819		1,734		22.2	%		7,856		7,859		2,552		32.5	%
Total Executive Search		225,951		227,861		57,778		25.6	%		205,999		207,950		51,378		24.9	%
Professional Search & Interim		141,099		142,505		30,201		21.4	%		121,107		121,988		27,203		22.5	%
RPO		90,779		92,267		14,220		15.7	%		87,595		89,600		12,899		14.7	%
Corporate		—		—		(36,374	)				—		—		(32,747	)
Consolidated	$	721,699	$	729,800	$	124,821		17.3	%	$	674,365	$	681,960	$	117,027		17.4	%

	Six Months Ended October 31,
								2025									2024

					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					$	139,035		9.7	%					$	123,404		9.1	%

	Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin		Fee revenue		Total revenue		Adjusted EBITDA			Adjusted EBITDA margin

Consulting	$	342,803	$	348,629	$	59,073		17.2	%	$	334,641	$	340,151	$	58,400		17.5	%
Digital		180,227		180,482		56,339		31.3	%		181,073		181,249		55,811		30.8	%
Executive Search:
North America		281,759		284,781		83,194		29.5	%		264,643		267,506		72,005		27.2	%
EMEA		105,681		106,293		17,914		17.0	%		92,769		93,408		14,752		15.9	%
Asia Pacific		48,832		49,103		10,854		22.2	%		42,043		42,244		8,650		20.6	%
Latin America		13,932		13,958		3,274		23.5	%		15,179		15,185		5,350		35.2	%
Total Executive Search		450,204		454,135		115,236		25.6	%		414,634		418,343		100,757		24.3	%
Professional Search & Interim		275,000		277,646		58,228		21.2	%		242,848		244,718		52,909		21.8	%
RPO		182,078		184,451		28,562		15.7	%		176,115		180,260		25,393		14.4	%
Corporate		—		—		(72,223	)				—		—		(65,034	)
Consolidated	$	1,430,312	$	1,445,343	$	245,215		17.1	%	$	1,349,311	$	1,364,721	$	228,236		16.9	%

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Investor Relations: Tiffany Louder, (214) 310-8407

Media: Dan Gugler, (310) 226-2645

Korn Ferry Announces Second Quarter Fiscal 2026 Results of Operations