The chart below shows how KFY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KFY sees a +1.65% change in stock price 10 days leading up to the earnings, and a -1.04% change 10 days following the report. On the earnings day itself, the stock moves by +0.56%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Consistent Profitability Improvement: Earnings and profitability increased year-over-year and sequentially, with the EBITDA margin over 17% for the sixth consecutive quarter of profitability improvement.
EBITDA Growth and Margin Improvement: Consolidated adjusted EBITDA in the second quarter grew by $18 million or 19% year-over-year, with an adjusted EBITDA margin improving to 17.4%.
Earnings Per Share Increase: Adjusted fully diluted earnings per share in the second quarter were $1.21, up $0.24 or 25% year-over-year.
Cash Position Increase: Our stable cash position at the end of the second quarter was $537 million, which was up $73 million or 16% year-over-year.
Stock Repurchase and Dividend: We repurchased $33 million of stock or about 456,000 shares in the second quarter, and we paid a quarterly dividend of $0.37 per share.
Negative
Fee Revenue Decline: Consolidated fee revenue in the second quarter of fiscal 2025 was down 4% year-over-year, but flat sequentially stabilizing at $674 million.
Consulting and Digital Revenue Trends: Consulting fee revenue was down 6% year-over-year and flat sequentially, while digital was down 4% year-over-year, but up 5% sequentially driven by strong new business in the second quarter.
EBITDA Growth and Margin Improvement: Consolidated adjusted EBITDA in the second quarter grew $18 million or 19% year-over-year, with adjusted EBITDA margin improving for the sixth consecutive quarter to 17.4%.
Fee Revenue Decline: Consolidated fee revenue for professional search and interim in the second quarter was $121 million, down $17 million or 12% year-over-year and flat quarter sequentially.
Interim Fee Revenue Decline: Interim fee revenue was down approximately 17% year-over-year, but flat sequentially.
Korn Ferry (KFY) Q2 2025 Earnings Call Transcript
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