Korn Ferry, a global organizational consulting firm, reported its third-quarter fiscal year 2025 results, revealing a flat year-over-year fee revenue of $668.7 million, which reflects a 2% increase at constant currency. For the quarter, net income attributable to Korn Ferry stood at $58.4 million, with a net income margin of 8.7%, reflecting a 10 basis point decrease compared to the prior year. Adjusted EBITDA rose 13% year-over-year to $114.5 million, while the adjusted EBITDA margin surged by 190 basis points to 17.1%.

The company’s diluted and adjusted diluted earnings per share reached $1.10 and $1.19, respectively. In the third quarter, Korn Ferry reported new business growth of 13% at constant currency, with total recruitment process outsourcing (RPO) new business generating $210 million, of which 65% came from new client acquisitions. Excluding RPO, new business was up 1% at constant currency, highlighted by strong performance in regions such as EMEA.

Consulting segment fee revenue declined to $158.7 million, down 5% year-over-year, driven mainly by reduced engagement in organizational strategy. Adjusted EBITDA for Consulting increased to $28.0 million, with a margin of 17.7%, reflecting productivity gains. Conversely, the Digital segment saw fee revenue of $90.8 million, which was flat year-over-year, but the adjusted EBITDA margin improved to 31.3%.

Executive Search revenues increased by 2.6% year-over-year to $204.6 million, aided by significant engagement growth numbers. The adjusted EBITDA margin for Executive Search improved to 25.0%. Professional Search and Interim business revenue remained stable at $130.0 million, while RPO fee revenue continued on an upward trajectory at $84.7 million, marking a 4% increase in year-over-year performance.

Korn Ferry’s balance sheet reflects prudent capital allocation, with the company repurchasing 237,000 shares for $17.9 million during the quarter. In addition, the firm declared a quarterly dividend increase of 30% to $0.48 per share, exemplifying a continued commitment to return capital to shareholders.

Looking ahead, Korn Ferry expects fourth-quarter fee revenue to range from $680 million to $700 million. The adjusted diluted earnings per share for that quarter are anticipated to be between $1.22 and $1.30. The fiscal year-to-date performance shows total revenue of $2.018 billion, down from $2.072 billion in the prior year.