Q4 2025 Korn Ferry Earnings Call Transcript

Jun 18, 2025 / 04:00PM GMT
Release Date Price: MXN1117.02

Key Points

Positve
  • Korn Ferry (KFY) reported a 4% increase in fee revenue and a 3% rise in new business, both in constant currency, demonstrating strong financial performance.
  • The company has achieved a 10% to 11% CAGR over the past 10 to 20 years, indicating consistent long-term growth.
  • Korn Ferry (KFY) has successfully diversified its revenue streams, with 77% of clients purchasing two or more solutions and over half buying three or more.
  • The company has raised its dividend six times in the past five years, reflecting a strong commitment to returning value to shareholders.
  • Korn Ferry (KFY) continues to innovate with a focus on technology and AI, enhancing its offerings to drive organizational performance for clients.
Negative
  • The economic environment remains challenging, with Korn Ferry (KFY) describing it as a recessionary period for the past seven quarters.
  • There is a cost of living crisis impacting consumer behavior, which could affect client spending and demand for services.
  • The company faces uncertainty due to geopolitical tensions and macroeconomic factors, which could impact business confidence and client spending.
  • Korn Ferry (KFY) acknowledges that growth is elusive, and companies are slashing costs, which may impact demand for certain solutions.
  • The monetization of Korn Ferry's intellectual property remains a significant wildcard, with potential for scalability but also uncertainty in execution.
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry fourth quarter fiscal year 2025 conference call. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes. We have also made available in the Investor Relations section of our website at kornferry.com, a copy of the financial presentation that we will be reviewing with you today.

Before I turn the call over to your host, Mr. Gary Burnison, let me first read a cautionary statement to investors. Certain statements made in today's call, such as those relating to future performance, plans and goals, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, which are beyond the

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