Q3 2026 Korn Ferry Earnings Call Transcript
Key Points
- Korn Ferry (KFY) reported its fifth consecutive quarter of accelerating year-over-year fee revenue growth, with a 7% increase to $717 million.
- The company's adjusted EBITDA grew by 7.5% to $123 million, with an adjusted EBITDA margin of 17.2%, reflecting strong profitability.
- Korn Ferry (KFY) has successfully increased its revenue per head count by almost one third over the last three years, contributing to a 300 basis point margin expansion.
- The company has a strong client base, with 4,500 clients representing 90% of its revenue, and significant opportunities to deepen relationships with these clients.
- Korn Ferry (KFY) has been involved in six out of seven major CEO transitions recently, highlighting its impact and client centricity at the top executive level.
- The labor market remains challenging, with Korn Ferry (KFY) operating in an environment where business conditions are tough.
- APAC region fee revenue declined by 2%, indicating some regional weaknesses in the company's performance.
- The digital segment was flat year-over-year on a constant currency basis, suggesting room for improvement in this area.
- The interim portion of the PS&I solution grew only 4%, reflecting modest growth in a challenging industry environment.
- There is uncertainty regarding the impact of recent geopolitical tensions and macroeconomic conditions on future performance.
Ladies and gentlemen, thank you for standing by and welcome to the Korn Ferry third quarter fiscal year 2026 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 the call today, 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 and that 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
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