Korn Ferry(NYSE) KFY

Korn Ferry helps companies find the right leaders for their teams. It also creates plans to pay and develop employees. These services help businesses improve their overall performance.

How the Company Makes Money

• Search: Identifying and placing board members, chief executives, and senior leaders; accounted for $209.3 million in fee revenue in the Americas during the quarter ended July 31, 2026.
• Talent & Organizational Solutions: Providing consulting and digital tools for organizational design, talent assessment, and leadership development; generated $106.9 million in fee revenue in the Americas in the quarter ended July 31, 2026.
• Workforce Solutions: Managing recruitment process outsourcing (RPO), interim talent needs, and professional recruiting; represented $126.0 million in fee revenue in the Americas for the quarter ended July 31, 2026.

Strategic Growth and Acquisitions

• Acquired Auxey Holdco Limited (AMS) on Sept. 1, 2026, for $1.2 billion to add global recruitment process outsourcing and contingent workforce capabilities.
• Realigned its organizational structure starting in fiscal 2027 to report business results by geographic region instead of by solution group.
• Redeemed all $400 million of its outstanding senior unsecured notes on Aug. 18, 2026, using funds from a new debt facility.
• Entered into a new credit agreement on Aug. 18, 2026, which provides a $600 million term loan and an $850 million revolving credit facility.

What Makes the Firm Unique

Korn Ferry uses proprietary data and science to help clients make hiring and leadership decisions. A specialized program for large clients accounts for nearly 40% of total fee revenue.

Key Financial Results

• Fee revenue reached $756.5 million in the quarter ended July 31, 2026, up 7% year over year.
• Net income reached $69.0 million in the three-month period ended July 31, 2026, an increase of 4% year over year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) hit $128.2 million in the first quarter of fiscal 2027, up 7% year over year.
• The company held $1.1 billion in cash and marketable securities as of July 31, 2026.
• The board of directors approved a 15% increase in the quarterly dividend to $0.55 per share on March 5, 2026.

The Bottom Line

Korn Ferry has transformed from a traditional executive recruiter into a diversified organizational consulting firm. This shift allows the company to support clients throughout the entire employee lifecycle while expanding its global reach.