Korn Ferry (NYSE: KFY), a global consulting firm specializing in talent management and organizational performance, reported its fourth quarter fiscal year 2025 results, indicating a stable performance despite broader economic challenges. The company’s fee revenue reached $712 million, which marks a year-over-year increase of 3% and a 4% increase when adjusted for constant currency.

In terms of net income, Korn Ferry posted $64.2 million for the quarter, representing a net income margin of 9.0%, slightly declining from 9.4% in the same quarter last year. For the full fiscal year, the net income was approximately $246.1 million, maintaining a net income margin of 9.0%, which reflects an increase of 290 basis points compared to the previous year.

Korn Ferry’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to $121.1 million in the fourth quarter, resulting in an adjusted EBITDA margin of 17.0%, which is an increase of 70 basis points year-over-year. For the full year, adjusted EBITDA amounted to $463.9 million, also achieving a margin of 17.0%, which represents a 220 basis point increase from fiscal year 2024.

The company’s diluted earnings per share in the fourth quarter were reported at $1.21, while the adjusted diluted earnings per share for the same period was $1.32. For the fiscal year, diluted and adjusted diluted earnings per share reached $4.60 and $4.88, respectively.

Korn Ferry’s Executive Search segment showed significant growth, with fourth-quarter fee revenue reaching $227 million, a 14% increase year-over-year, translating into a 15% increase at constant currency. This growth in Executive Search contributed positively to the overall fee revenue, which also included $93.3 million from Recruitment Process Outsourcing (RPO), an increase of 4% year-over-year.

In contrast, the Consulting segment saw a decline in fee revenue, which decreased to $169.4 million, a drop of 7% year-over-year. This decrease is attributed to the greater mix of larger engagements that convert into fee revenue over a longer duration.

Looking ahead, Korn Ferry provided guidance for the first quarter of fiscal year 2026, projecting fee revenue in the range of $675 million to $695 million. The company expects its adjusted EBITDA margin to fall between approximately 16.8% and 17.2%. Additionally, for diluted earnings per share, the forecast ranges between $1.16 and $1.24, while the adjusted diluted earnings per share is projected to be within $1.18 and $1.26.

Korn Ferry remains committed to its disciplined capital allocation strategy, having returned $173 million to shareholders in the fiscal year, through a combination of share repurchases and dividends, while also investing in acquisitions and advancements in its technology platforms and solutions.