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Yahoo
11 hours ago
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Informa TechTarget Reports Preliminary Q1 2025 Results
NEWTON, Mass., July 01, 2025--(BUSINESS WIRE)--TechTarget, Inc. (Nasdaq: TTGT), ("Informa TechTarget" or the "Company"), a leading growth accelerator for the B2B Technology sector, today published preliminary results for the first quarter of 2025, delivering Revenues of $104 million and reaffirming full year expectations for year-on-year growth in Adjusted EBITDA(2). Gary Nugent, Chief Executive, Informa TechTarget, said: "We have made good operational progress in the first quarter of 2025 and will continue these efforts throughout our Foundation Year, laying the groundwork to realize the benefits of breadth, scale and diversity created through combination, and positioning the Company for long-term growth." Highlights Q1 Preliminary Revenue Performance as Expected: Revenues increased 77% over the prior year period's reported revenues and declined approximately 6% year-on-year on a Combined Company Basis(3), with run-rate improving into Q2, in line with previous commentary; Mid-single digit revenue decline expected over first six months of the year on a Combined Company basis; Preliminary Q1 Net Income impacted by technical non-cash impairment reflecting difference in current market capitalization versus year-end book value; Accelerated Combination Plan: Early Q1 focus was on combining teams, establishing reporting lines and confirming senior leadership, providing clarity to colleagues as quickly as possible; additionally, we began the process of focusing on our ways of working, including the first steps to harmonize our systems and operational models to enhance collaboration and efficiencies; We expect this work to continue throughout 2025; The Foundation Year: Next phase of Combination Plan focused on consolidating product portfolio, simplifying go-to-market offer and increasing the commercial focus on core growth opportunities, including key client accounts and the CyberSecurity sector; Full Year Expectations Reaffirmed: Targeting broadly flat revenues across 2025, with improving momentum through second half as combined group proposition gains traction in the market; Accelerated approach to combination brings forward synergy targets, underpinning guidance for year-on-year growth in adjusted EBITDA; Long-term Growth Opportunity: We believe underlying demand for efficient, data-driven B2B marketing solutions remains strong, particularly within Enterprise Technology; The scale, breadth and reach of Informa TechTarget creates a unique opportunity to build a leading position in a long-term growth market. Financial Summary(1) 2025 2025 2024 2024 Growth Growth Growth Growth Three Months Ended March 31 High Preliminary Range Low Preliminary Range Reported Combined High Preliminary Range vs Reported Low Preliminary Range vs Reported High Preliminary Range vs Combined Low Preliminary Range vs Combined $m $m $m $m(3) % % %(3) %(3) Revenue $ 104 $ 104 $ 59 $ 110 77 % 77 % (6 )% (6 )% Net loss $ (545 ) $ (513 ) $ (20 ) $ (32 ) 2693 % 2529 % 1625 % 1524 % Net loss margin (524 )% (494 )% (33 )% (29 )% (491 )% (460 )% (496 )% (465 )% Adjusted EBITDA(2) $ 3 $ 3 $ 0 $ 13 902 % 902 % (79 )% (79 )% Adjusted EBITDA margin (%)(2) 3 % 3 % 0 % 12 % 2 % 2 % (9 )% (9 )% (1) The Company's results are preliminary as it continues to finalize its goodwill impairment assessment and the related income tax accounting for Q1 2025. (2) Denotes a non-GAAP financial measure. See Non-GAAP Financial Measures below for explanations of these measures and reconciliations to a comparable GAAP measure. (3) Combined Company measure which represents Informa TechTarget's performance for the quarter ended March 31, 2024 as if the acquisition of Former TechTarget had occurred on January 1, 2023. Note that it is not necessarily indicative of the performance of Informa TechTarget that may have actually occurred had this been completed on January 1, 2023. The Company performed broadly as expected with revenues of $104 million, up 77% over the prior year period's reported revenues, and approximately 6% lower on a Combined Company basis. Our like-for-like performance largely reflected what remains a subdued market backdrop. In addition, through the early months of the year the Company was focused on its Combination Plan, bringing together colleagues, teams, processes and technology. We approached this at pace to provide certainty as quickly as possible which inevitably created some short-term disruption. However, it enabled the Company to enter the second quarter with clarity on reporting lines and leadership, with a clear road map for further refining the product and go-to-market strategy. This accelerated approach also enabled us to bring forward the delivery of cost synergies in the first year post-combination and this underpins our guidance for growth in adjusted EBITDA in 2025, even with Combined Company revenues expected to be broadly flat. The Company is expecting to report a Q1 net loss of $513 million to $545 million, compared to $32 million for the Combined Company in the prior year period, reflecting higher acquisition and integration costs, as well as a $450 million to $475 million non-cash impairment to reflect the Company's current depressed market capitalization relative to book value at year-end and income tax expense of $25 million to $32 million. Adjusted EBITDA decreased by about $10 million versus the prior year period on a Combined Company basis. Filing Update and Regaining Compliance with Nasdaq Listing Rules The Company expects to file its Form 10-Q for the quarter ended March 31, 2025 with the Securities and Exchange Commission shortly post the July 4th holidays, once all procedures and reviews have been finalized. This should enable the Company to regain compliance with Nasdaq Listing Rule 5250(c)(1) regarding adherence to filing requirements, with our second quarter financial results targeted for release on or before August 14, 2025. The Foundation Year: Combine and Grow In 2025, we are focused on effectively combining our two legacy businesses and building a strong foundation for future growth, initially targeting three core areas: 1. Leadership: We moved quickly to appoint the Executive and Senior Leadership teams, securing a balance of experience and knowledge from the legacy Informa Tech and the legacy TechTarget businesses. These appointments enabled us to confirm responsibilities and reporting lines, providing Colleagues with clarity as quickly as possible; 2. Operating Model: The operating model is being updated post-combination, including: a. Brand consolidation: We combined the brands within our Intelligence & Advisory offerings (Canalys, ESG, Omdia and Wards) under the Omdia brand, simplifying the offer to customers and freeing up analysts to spend more time in the field; b. Product positioning: We made an early decision to reposition the NetLine syndicated audience offering to the volume-end of the demand generation market, playing to current market sensitivities and distinguishing it from our other brands; c. Go-to-Market Focus: We restructured our go-to-market teams to better target major customer accounts, reflecting that half our $20 billion addressable market is accounted for by just 200 companies. We have established dedicated sales and service teams to serve an initial cohort of top accounts, with more to come, facilitating stronger, more personalized relationships, helping us to better identify opportunities to grow and enhance the client experience; We have also doubled down on the CyberSecurity sector, a large and growing market where we have established audiences and data (including via Informa PLC's ownership of the BlackHat brand) but our revenue share remains low; d. Technology & Data: While broader process and systems integration will be implemented over a longer time frame, we prioritized operationalizing our first party data exchange with Informa PLC, opening up access to its 20 million+ permissioned B2B audience generated by its Live B2B Events portfolio. 3. Cost synergies: We immediately targeted addressing duplication in administration costs, technology licenses, property and roles. While this created some disruption in the early months of the year, we entered Q2 with greater certainty and now expect to more than double our original Year 1 cost savings goal, targeting a minimum of $10 million operating synergies in 2025. This gives us a high degree of confidence we can meet or beat the overall $45 million run rate synergy target by the end of Year 3 ($25 million cost synergies and $20 million revenue synergies). 2025 Outlook Reaffirmed Our guidance for the full year is unchanged, with a target for broadly flat year-on-year revenues on a Combined Company basis. Following a Q1 revenue decline of approximately 6%, we have seen improving momentum in Q2, leaving revenues down approximately 5% over the first five months of the year, with a similar figure expected at the half year. We are targeting further sequential improvement through Q3 and Q4 to deliver a broadly flat outcome for the year, with momentum improving as our product initiatives and revitalized go-to-market approach gains further traction with customers. The accelerated delivery of cost synergies underpins our ambition for positive growth in adjusted EBITDA in 2025, despite broadly flat revenues, with a target to deliver in excess of $85 million for the year. We anticipate recording a further non-cash goodwill impairment in Q2 2025, reflecting the market uncertainty cited in our previous commentary that persisted through the first half of the year and the technical accounting impact of our depressed market capitalization at the end of the quarter relative to book values. This adjustment will have no impact on our operational performance or cash position. Our guidance does not assume any marked change in the market environment, with activity expected to remain subdued, as enterprise technology customers continue to limit investments in marketing and sales to prioritize research and development in AI-related initiatives. Long term growth opportunity While this market environment is impacting the immediate market opportunity for Informa TechTarget, we remain confident that the breadth and depth of our product offerings can drive market share gains over time, with a range of long-term growth drivers: Enterprise IT market penetration addressing the needs of our clients across their product life cycle through the breadth, reach and scale of our combined products and talent and leveraging our expanded first-party data assets; International expansion to capture approximately 40% of the global market that is estimated to be made up of technology vendors outside the US; Growth in industry B2B tech markets by expanding into adjacent tech-driven markets such as AutoTech, HealthTech, Fintech and others; New product and platform development to deliver richer data-driven insights and deeper market access; Inorganic growth opportunities that further strengthen our market position, supported by our strong balance sheet and cash generation. We also see AI as a significant opportunity, representing a growing customer market (educating, influencing and targeting buyers of AI-enabled products), a tool to drive efficiency across our operating platform, and a technology to power our content generation strategy and value proposition of our products. AI is changing how audiences discover information, with a shift from traditional search to AI-enabled platforms. We are therefore strengthening our capabilities in Artificial Intelligence Engine Optimization (AIEO), alongside continuing investment in Search Engine Optimization (SEO), ensuring that our trusted, original, authoritative content is referenced and cited in relevant AI summaries as well as through organic search. We also continue to invest in our many other audience development and engagement strategies, including the Industry Dive outbound newsletter model, the BrightTALK and NetLine partnership models, and first party data from Informa PLC, underlining the strength and diversity in our approach to building and nurturing audiences. Conference Call and Webcast The Company will discuss these financial results in a conference call and webcast on Tuesday July 1, 2025 at 5:00 PM (Eastern Time) which will include brief remarks by management followed by questions and answers. Conference Call Dial-In Information: United States (Toll Free): 1-833-470-1428 United States: 1-404-975-4839 United Kingdom (Toll Free): +44 808 189 6484 United Kingdom: +44 20 8068 2558 Global Dial-in Numbers Access code: 557186 Please access the call at least 10 minutes prior to the time the conference is set to begin. Please ask to be joined into the Informa TechTarget call. Conference Call Webcast Information:This webcast can be accessed via Informa TechTarget's website at: Conference Call Replay Information:A replay of the conference call will be available via telephone beginning one (1) hour after the conference call through July 31, 2025 at 11:59 p.m. EDT. To hear the replay: United States (Toll Free): 1-866-813-9403 United States: 1-929-458-6194 Access Code: 670569 About Informa TechTarget TechTarget, Inc. (Nasdaq: TTGT), which also refers to itself as Informa TechTarget, informs, influences and connects the world's technology buyers and sellers, helping accelerate growth from R&D to ROI. With a vast reach of over 220 highly targeted technology-specific websites and over 50 million permissioned first-party audience members, Informa TechTarget has a unique understanding of and insight into the technology market. Underpinned by those audiences and their data, we offer expert-led, data-driven, and digitally enabled services that have the potential to deliver significant impact and measurable outcomes to our clients: Trusted information that shapes the industry and informs investment Intelligence and advice that guides and influences strategy Advertising that grows reputation and establishes thought leadership Custom content that engages and prompts action Intent and demand generation that more precisely targets and converts Informa TechTarget is headquartered in Boston, MA and has offices in 19 global locations. For more information, visit and follow us on LinkedIn. © 2025 TechTarget, Inc. All rights reserved. All trademarks are the property of their respective owners. Non-GAAP Financial Measures This release and the accompanying tables include a discussion of Adjusted EBITDA, Adjusted EBITDA Margin, Combined Company Revenue, Combined Company Net Loss, Combined Company Net Loss Margin, Combined Company Adjusted EBITDA and Combined Company Adjusted EBITDA Margin, all of which are non-GAAP financial measures which are provided as a complement to results provided in accordance with GAAP."Adjusted EBITDA" means earnings before net interest, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expenses such as asset impairment and impairment related to goodwill, and costs related to mergers, acquisitions or reduction in forces expenses, if any."Adjusted EBITDA Margin" means Adjusted EBITDA divided by Revenue."Combined Company Revenue" means revenue calculated as if the acquisition of Former TechTarget occurred on January 1, 2023. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information."Combined Company Net Loss" means net income/loss calculated as if the acquisition of Former TechTarget had occurred on January 1, 2023. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information."Combined Company Net Loss Margin" means Combined Company Net Loss divided by Combined Company Revenue."Combined Company Adjusted EBITDA" means earnings before net interest, income taxes, depreciation and amortization, as further adjusted to exclude stock-based compensation, other income and expenses such as asset impairment and impairment related to goodwill, and costs related to mergers, acquisitions or reduction in forces expenses, if any. See Footnote 5 of the Company's Form 10-K for December 31, 2024 for additional information related to our presentation of unaudited supplemental Combined Company financial information. The items included in the calculation assume the acquisition of Former TechTarget had occurred on January 1, 2023."Combined Company Adjusted EBITDA Margin" means Combined Company Adjusted EBITDA divided by Combined Company Revenue. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, our definitions of Adjusted EBITDA, Adjusted EBITDA margin, Combined Company Revenue, Combined Company Net Loss, Combined Company Net Loss Margin, Combined Company Adjusted EBITDA and Combined Company Adjusted EBITDA Margin, may not be comparable to the definitions as reported by other companies. We believe that these measures provide relevant and useful information to enable us and investors to compare our operating performance using an additional measurement. We use these measures in our internal management reporting and planning process as primary measures to evaluate the operating performance of our business, as well as potential acquisitions. Combined Company measures are provided to assist our investors in further comparing our performance as if the acquisition of Former TechTarget occurred on January 1, 2023. The components of Adjusted EBITDA and Combined Company Adjusted EBITDA include the key revenue and expense items for which our operating managers are responsible and upon which we evaluate their performance. Adjusted EBITDA is also used in presentations to our Board of Directors. Furthermore, we intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables, except that full reconciliations of certain forward-looking non-GAAP measures are not provided because the Company is unable to provide such reconciliations without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of certain significant items. These items include, but are not limited to, acquisition and integration costs, amortization of intangible assets, restructuring and other expenses, asset impairment, and the income tax effect of these items. These items are uncertain, depend on various factors, including, but not limited to, our recent acquisition of Former TechTarget and could have a material impact on GAAP reported results for the relevant period. Cautionary Note Regarding Forward-Looking Statements This press release contains "forward-looking statements". All statements, other than historical facts, are forward-looking statements, including: statements regarding the expected benefits of the transactions consummated on December 2, 2024 (the "Closing Date") pursuant to the Agreement and Plan of Merger, dated as of January 10, 2024, among TechTarget Holdings Inc. (formerly known as TechTarget, Inc. ("Former TechTarget")), Informa TechTarget, Toro Acquisition Sub, LLC, Informa PLC, Informa US Holdings Limited, and Informa Intrepid Holdings Inc. (the "Transactions"), such as improved operations, enhanced revenues and cash flow, synergies, growth potential, market profile, business plans, expanded portfolio and financial strength; the competitive ability and position of Informa TechTarget; legal, economic, and regulatory conditions; and any assumptions underlying any of the foregoing. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "plan," "could," "would," "project," "predict," "continue," "target," or the negatives of these words or other similar terms or expressions that concern Informa TechTarget's expectations, strategy, priorities, plans, or intentions. Forward-looking statements are based upon current plans, estimates, and expectations that are subject to risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. We can give no assurance that such plans, estimates, or expectations will be achieved, and therefore, actual results may differ materially from any plans, estimates, or expectations in such forward-looking statements. Important factors that could cause actual results to differ materially from such plans, estimates, or expectations include, among others: unexpected costs, charges, or expenses resulting from the Transactions; uncertainty regarding the expected financial performance of Informa TechTarget; failure to realize the anticipated benefits of the Transactions, including as a result of integrating the Informa Tech Digital Businesses with the business of Former TechTarget; the ability of Informa TechTarget to implement its business strategy; difficulties and delays in Informa TechTarget achieving revenue and cost synergies; evolving legal, regulatory, and tax regimes; changes in economic, financial, political, and regulatory conditions, in the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, pandemics, geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade, and policy changes associated with the current or subsequent U.S. administrations; Informa TechTarget's ability to meet expectations regarding the accounting and tax treatments of the Transactions; market acceptance of Informa TechTarget's products and services; the impact of pandemics and future health epidemics and any related economic downturns on Informa TechTarget and the markets in which it and its customers operate; changes in economic or regulatory conditions or other trends affecting the internet, internet advertising and IT industries; data privacy and artificial intelligence laws, rules, and regulations; the impact of foreign currency exchange rates; certain macroeconomic factors facing the global economy, including instability in the regional banking sector, disruptions in the capital markets, economic sanctions and economic slowdowns or recessions, rising inflation and interest rate fluctuations on the operating results of Informa TechTarget; and other matters included in Risk Factors of Informa TechTarget's Form 10-K for fiscal year 2024 (filed with the United States Securities and Exchange Commission (the "SEC") on May 28, 2025) and other documents filed by Informa TechTarget from time to time with the SEC. This summary of risks and uncertainties should not be considered to be a complete statement of all potential risks and uncertainties that may affect Informa TechTarget. Other factors may affect the accuracy and reliability of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes. Actual performance and outcomes, including, without limitation, Informa TechTarget's actual results of operations, financial condition and liquidity, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statements speak only as of the date of this press release. None of Informa TechTarget, its affiliates, advisors or representatives, undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events, or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements. TechTarget, Inc. Unaudited Selected Preliminary Condensed Consolidated Balance Sheets ($ in thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 78,656 $ 275,983 Short-term investments — 77,705 Accounts receivable, net of allowance for credit losses of $1,219 and $907 respectively 68,099 79,039 Related party receivables 5,103 2,900 Prepaid taxes 7,125 6,443 Prepaid expenses and other current assets 15,519 13,547 Total current assets $ 174,502 $ 455,617 Liabilities Current liabilities: Accounts payable $ 8,949 $ 10,639 Related party payables 15,229 4,795 Contract liabilities 54,441 44,825 Operating lease liabilities 5,202 5,186 Accrued expenses and other current liabilities 23,237 29,328 Accrued compensation expenses 16,019 18,093 Income taxes payable(1) 59,861 6,701 Convertible debt — 415,690 Total current liabilities(1) $ 182,938 $ 535,257 (1) Assumes income taxes payable calculated at the low preliminary range. If calculated at the high preliminary range, income taxes payable would be $66,861 and total current liabilities would be $189,938. TechTarget, Inc. Unaudited Selected Preliminary Earnings Information ($ in thousands) For the Three Months Ended March 31,2025 March 31,2025 March 31,2024 High Preliminary Range Low Preliminary Range As Restated Revenues1 $ 103,887 $ 103,887 $ 58,659 Cost of revenues1,2 (44,160 ) (44,160 ) (23,969 ) Gross profit 59,727 59,727 34,690 Operating expenses: Selling and marketing2 33,310 33,310 13,807 General and administrative1,2 24,284 24,284 18,178 Product development2 2,789 2,789 3,019 Depreciation 532 532 403 Amortization, excluding amortization of $2,473, and $102 included in cost of revenues 23,288 23,288 10,836 Impairment of goodwill 475,000 450,000 — Impairment of long-lived assets — — 1,864 Acquisition and integration costs1 9,328 9,328 6,977 Remeasurement of contingent consideration — — 2,064 Total operating expenses 568,531 543,531 57,148 Operating loss (508,804 ) (483,804 ) (22,458 ) Other income (expense), net (4,081 ) (4,081 ) (4,749 ) Loss before provision for income taxes (512,885 ) (487,885 ) (27,207 ) Income tax benefit (provision) (32,000 ) (25,000 ) 7,698 Net loss $ (544,885 ) $ (512,885 ) $ (19,509 ) (1) Amounts include related party transactions as follows: Revenues 224 224 84 Cost of revenues 277 277 — General and administrative 6,279 6,279 8,505 Interest income — — 1,029 Acquisition and integration costs 46 46 6,055 (2) Amounts include stock-based compensation expense as follows: Cost of revenues 308 308 — Selling and marketing 2,757 2,757 — General and administrative 711 711 266 Product development 183 183 — TechTarget, Inc. Reconciliation of Preliminary Net Loss to Preliminary Adjusted EBITDA and Preliminary Net Loss Margin to Preliminary Adjusted EBITDA Margin ($ in thousands) For Three Months EndedMarch 31, 2025 2025 2024 2024 High Preliminary Range Low Preliminary Range As Restated Combined Revenues $ 103,887 $ 103,887 $ 58,659 $ 110,295 Net loss $ (544,885 ) $ (512,885 ) $ (19,509 ) $ (31,588 ) Interest (income) expense, net 1,030 1,030 4,967 1,788 Provision (benefit) for income taxes 32,000 25,000 (7,698 ) (6,138 ) Depreciation 532 532 403 687 Amortization 25,761 25,761 10,938 24,603 EBITDA $ (485,562 ) $ (460,562 ) $ (10,899 ) $ (10,648 ) Stock-based compensation 3,959 3,959 266 11,725 Impairment of goodwill 475,000 450,000 — — Impairment of long-lived assets — — 1,864 1,864 Acquisition and integration costs 9,328 9,328 6,977 7,758 Remeasurement of contingent consideration — — 2,064 2,064 Adjusted EBITDA $ 2,725 $ 2,725 $ 272 $ 12,763 Net loss margin (524.5 )% (493.7 )% (33.3 )% (28.6 )% Adjusted EBITDA margin 2.6 % 2.6 % 0.5 % 11.6 % TechTarget Inc. Reconciliation of Combined Company Revenue and Net Loss For the three months ended March 31, 2024 ($ in thousands) Historical Combined Company Informa Tech Digital Business (Note a) Former TechTarget (Note b) Transaction Accounting Adjustments Note Combined Company Revenues $ 58,659 $ 51,636 $ — $ 110,295 Cost of revenues: Cost of revenues (23,867 ) (19,158 ) 1,172 (c) (41,853 ) Amortization of acquired technology (102 ) (702 ) (4,265 ) (d) (5,069 ) Gross profit 34,690 31,776 (3,093 ) 63,373 Operating expenses: Selling and marketing 13,807 22,962 18 (e) 36,787 General and administrative 18,178 6,695 82 (f) 24,955 Product development 3,019 2,753 — 5,772 Depreciation 403 284 — 687 Amortization 10,836 3,525 5,173 (g) 19,534 Impairment of long-lived assets 1,864 — — 1,864 Acquisition and integration costs 6,977 — (5,745 ) (h) 1,232 Transaction and related expenses — 6,526 — 6,526 Remeasurement of contingent consideration 2,064 — — 2,064 Total operating expenses 57,148 42,745 (472 ) 99,421 Operating loss (22,458 ) (10,969 ) (2,621 ) (36,048 ) Interest expense — (552 ) — (552 ) Interest income 1,234 3,731 — 4,965 Other income (expense), net 218 (108 ) — 110 Related party interest expense (6,201 ) — — (6,201 ) Loss before provision for income taxes (27,207 ) (7,898 ) (2,621 ) (37,726 ) Income tax benefit (provision) 7,698 (2,190 ) 630 (i) 6,138 Net loss $ (19,509 ) $ (10,088 ) $ (1,991 ) $ (31,588 ) (a) Represents the condensed statement of income of the Informa Tech Digital Business for the quarter ended March 31, 2024. (b) Represents the condensed consolidated statement of operations as reported in Former TechTarget's Form 10-Q for the quarter ended March 31, 2024. (c) Represents adjustments to cost of revenues associated with the elimination of TechTarget's historical lease expense, amortization related to existing computer software, internal-use software, and website development costs, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (d) Represents the elimination of Former TechTarget's historical amortization of acquired technology of $702 thousand and recognition of new amortization expense of $4,967 thousand resulting from intangible assets identified as part of the purchase price allocation. (e) Represents adjustments to selling and marketing expenses associated with the elimination of Former TechTarget's lease expense, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (f) Represents adjustments to general and administrative expenses associated with the elimination of Former TechTarget's historical lease expense, and the recognition of the estimated lease expense based on remeasured lease liabilities and ROU assets. (g) Represents the elimination of Former TechTarget's historical amortization of intangible assets of $3,525 thousand and recognition of new amortization expense of $8,698 thousand resulting from intangible assets identified as part of the purchase price allocation. (h) Represents the elimination of acquisition costs of $5,745 thousand incurred by the Informa Tech Digital Business for the three months ended March 31, 2024. (i) Represents the income tax effect of the pro forma adjustments presented. The pro forma income tax adjustments were estimated using a combined U.S. federal and statutory tax rate of 24.0% applied to all adjustments. View source version on Contacts Dan Noreck, Chief Financial Officer +1 617 431 9200Garrett Mann, Corporate Communications +1 617 431 9371 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Culp Inc (CULP) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales: $48.8 million for Q4, flat compared to $49.5 million in the prior-year period. Operating Loss: $2.2 million for Q4, including $1.5 million in restructuring-related expenses. Non-GAAP Operating Loss: $704,000 for Q4, compared to $4 million in the prior-year period. Net Loss: $2.1 million or $0.17 per diluted share for Q4. Adjusted EBITDA: $559,000 for Q4, compared to negative $2.2 million in the prior-year period. Mattress Fabrics Sales: $27.1 million for Q4, up 5.3% year-over-year. Upholstery Fabrics Sales: $21.7 million for Q4, down 8.9% year-over-year. Total Cash: $5.6 million as of the end of fiscal year. Outstanding Debt: $12.7 million as of the end of fiscal year. Free Cash Flow: Negative $17.1 million for the full fiscal year. Capital Expenditures: $2.9 million for the year. Annualized Savings from Restructuring: $10 million to $11 million. Annualized Savings from Integration Effort: Approximately $3 million. Price Increases Annualized Benefit: Expected $2.5 million, effective in fiscal Q2 2026. Warning! GuruFocus has detected 4 Warning Signs with CULP. Release Date: June 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Culp Inc (NYSE:CULP) successfully implemented a restructuring plan that resulted in $10 million to $11 million in consolidated annualized savings. The company achieved a year-over-year sales increase in its Mattress Fabrics business despite an industry-wide decline in overall mattress sales. Culp Inc (NYSE:CULP) has a diversified manufacturing and sourcing platform that provides competitive advantages in a fluid global trade environment. The integration of Mattress Fabric and Upholstery Fabric divisions into a single unified business is expected to generate approximately $3 million in annualized savings. The company extended its credit facility with Wells Fargo for an additional three years, providing liquidity and financing flexibility to support ongoing initiatives. Culp Inc (NYSE:CULP) reported a net loss of $2.1 million for the fourth quarter, although this was an improvement from the prior-year period. Sales in the Upholstery Fabrics segment declined by 8.9% in the fourth quarter due to continued demand deterioration in the home furnishings industry. The company faced significant pressure from recent tariff changes, particularly affecting its Upholstery Fabrics business. Culp Inc (NYSE:CULP) is not providing specific financial guidance for fiscal 2026 due to macroeconomic uncertainty and fluid global trade conditions. The Residential Upholstery business continues to face challenges with low demand and is expected to experience ongoing sales pressure. Q: Could you talk about the current business cadence across Mattress, Residential Upholstery, and Commercial Upholstery and Fabric segments? A: We are encouraged by the Mattress Fabrics business, having won market share in both fabric and covers. The hospitality side of our Upholstery business has a solid pipeline, although some projects were delayed due to tariffs. Residential Upholstery remains challenging due to low demand, despite good product placement. Q: How have tariffs impacted end customer demand across your segments? A: Tariffs have led to price increases being passed directly to consumers. However, consumer demand is more influenced by broader economic factors like inflation and interest rates. The furniture sector is also experiencing a seasonal slowdown, which we hope will improve in the fall. Q: Regarding the $2.5 million pricing action, what revenue assumptions are included in those gains? A: The $2.5 million gain is based on steady-state revenue assumptions, primarily from the Mattress Fabrics side. We are not forecasting additional revenue increases from these price adjustments. Q: How will the various cost-saving initiatives impact the bottom line quarterly throughout fiscal '26? A: The significant fixed cost reductions from the Mattress Fabrics restructuring will continue. New actions, including business integration and price adjustments, will phase in during Q2 and be fully effective by Q3 and Q4. Q: Can you explain the change in approach to inventory markdowns and its impact? A: We adjusted our markdown cadence to better align with actual pricing, resulting in a $1.7 million benefit for the quarter. This change allows us to manage inventory more effectively and maintain consistent performance. Q: How aggressive will you be in paying down debt given the current macro environment? A: We aim to pay down debt as quickly as possible while ensuring working capital needs are met. We have flexibility with our new three-year credit facility to manage debt strategically. Q: What growth investments and market opportunities are you prioritizing in fiscal '26? A: We are focusing on the Mattress Fabrics and hospitality segments, where we see potential for market share gains. Our Residential Upholstery business remains a priority, but we anticipate a lag in demand recovery. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
Korn Ferry (KFY) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amid Economic Challenges
Fee Revenue: $712 million, up 4% year-over-year at constant currency. Adjusted EBITDA: $121 million, an increase of 8% year-over-year. Adjusted EBITDA Margin: Grew 70 basis points to 17%. Adjusted Diluted Earnings Per Share: Increased 5% to $1.32. New Business Growth: 3% year-over-year at constant currency, 5% excluding RPO. Estimated Remaining Fees Under Existing Contracts: Approximately $1.7 billion, up 12% year-over-year. Capital Return to Shareholders: $173 million through share repurchases and dividends in fiscal '25. Investment in M&A: $44 million. Capital Expenditures: $62 million focused on talent suite and technology platforms. First Quarter Fiscal '26 Outlook: Fee revenue expected to range from $675 million to $695 million; adjusted EBITDA margin between 16.8% and 17.2%; adjusted diluted EPS between $1.18 and $1.26. Warning! GuruFocus has detected 2 Warning Sign with KFY. Release Date: June 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Korn Ferry (NYSE: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 (NYSE: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 (NYSE:KFY) continues to innovate with a focus on technology and AI, enhancing its offerings to drive organizational performance for clients. The economic environment remains challenging, with Korn Ferry (NYSE: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 (NYSE: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. Q: Can you provide insights on new business trends and revenue trends by month, especially considering recent tariff announcements and business confidence levels? A: Gary Burnison, CEO: There's always uncertainty, and conversations ebb and flow with global events. Despite this, May was stronger than April, and April was similar to March. Overall, the firm has performed impressively in what I consider a recessionary environment for the last seven quarters. Q: What drove the 15% growth in executive search this quarter, and what are your expectations for the coming quarters? A: Gary Burnison, CEO: Growth in executive search shouldn't be viewed quarter-to-quarter due to natural fluctuations. Over the long term, Korn Ferry has consistently delivered 10-11% growth annually. Current demographic factors and demand for different leadership types are influencing this growth. Q: How are sales cycles and client spending behaviors changing across segments? A: Gary Burnison, CEO: There's a cost of living crisis impacting companies' ability to raise prices, leading to cost-cutting measures. Leadership teams are also evolving due to the need for different skills in a rapidly changing environment. Q: Can you elaborate on the impact of the fourth release of the talent suite and its expected market impact? A: Gary Burnison, CEO: The new release aims to provide seamless user experiences across hiring, development, and reward processes. The integration of our vast data sets will offer unique market advantages, and I am confident in its potential impact. Q: How is Korn Ferry managing headcount productivity and what are the future expectations? A: Gary Burnison, CEO: The monetization of our intellectual property (IP) is a significant opportunity for scalability. We are focusing on longer, transformative engagements in consulting, which may impact short-term revenue but offer long-term growth potential. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Business
- Yahoo
Korn Ferry Announces Fourth Quarter and Full Year FY'25 Results of Operations
Fourth Quarter and Full Year Highlights Korn Ferry reports Q4 FY'25 fee revenue of $712.0 million, an increase of 3% year-over-year at actual, and 4% at constant currency. Full year FY'25 fee revenue of $2,730.1 million, a year-over-year decrease of 1% in both actual and constant currency. Net income attributable to Korn Ferry for the fourth quarter was $64.2 million, with a margin of 9.0%, a decrease of 40bps compared to the year-ago quarter, while net income attributable to Korn Ferry for the full year of FY'25 was $246.1 million, with a margin of 9.0%, an increase of 290bps compared to the year-ago period. Fourth quarter Adjusted EBITDA was $121.1 million with a margin of 17.0%, an increase of 70bps compared to the year-ago quarter, while Adjusted EBITDA for the full year of FY'25 was $463.9 million with a margin of 17.0%, an increase of 220bps compared to the year-ago period. Diluted and adjusted diluted earnings per share were $1.21 and $1.32 in Q4 FY'25, respectively, and $4.60 and $4.88 for the full year, respectively. Executive Search posted Q4 FY'25 fee revenue of $227.0 million, an increase of 14% year-over-year at actual, and 15% at constant currency. The Company repurchased 232,000 shares of stock during the quarter for $15.0 million and paid dividends of $25 million. For the full year the Company continued to maintain its balanced approach to capital allocation by investing $44 million in an acquisition, $62 million in technology platforms, tools and product enhancements, and returning $89 million and $84 million to shareholders through share repurchases and dividends, respectively. LOS ANGELES, June 18, 2025--(BUSINESS WIRE)--Korn Ferry (NYSE: KFY), a global consulting firm, today announced fourth quarter and annual fee revenue of $712.0 million and $2,730.1 million, respectively. In addition, fourth quarter diluted earnings per share was $1.21 and adjusted diluted earnings per share was $1.32, while full year diluted earnings per share was $4.60 and adjusted diluted earnings per share was $4.88. "Even amid the ever-changing global economic and political dynamics, we continue to deliver on our financial and strategic objectives, just as we have over the past several years. Our results reinforce the premise of Korn Ferry's diversification strategy and our continued momentum," said Gary D. Burnison, CEO, Korn Ferry. "Through ongoing investments to extend our offerings and solutions and expand our impact, we are powering performance for clients. This foundational focus for the future underpins our conviction to a strategy that will continue to propel us forward." Selected Financial Results (dollars in millions, except per share amounts) (a) Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Fee revenue $ 712.0 $ 690.8 $ 2,730.1 $ 2,762.7 Total revenue $ 719.8 $ 699.9 $ 2,761.1 $ 2,795.5 Net income attributable to Korn Ferry $ 64.2 $ 65.2 $ 246.1 $ 169.2 Net income attributable to Korn Ferry margin 9.0 % 9.4 % 9.0 % 6.1 % Basic earnings per share $ 1.23 $ 1.26 $ 4.69 $ 3.25 Diluted earnings per share $ 1.21 $ 1.24 $ 4.60 $ 3.23 Adjusted Results (b): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Adjusted EBITDA $ 121.1 $ 112.3 $ 463.9 $ 408.2 Adjusted EBITDA margin 17.0 % 16.3 % 17.0 % 14.8 % Adjusted net income attributable to Korn Ferry (c) $ 70.1 $ 65.7 $ 261.2 $ 224.0 Adjusted basic earnings per share (c) $ 1.34 $ 1.27 $ 4.98 $ 4.31 Adjusted diluted earnings per share (c) $ 1.32 $ 1.26 $ 4.88 $ 4.28 ______________________ (a) Numbers may not total due to rounding. (b) Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, restructuring charges, net and management separation charges when applicable. Adjusted results on a consolidated basis are non-GAAP financial measures that adjust for the following, as applicable (see attached reconciliations): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Management separation charges (d) $ 4.6 $ — $ 4.6 $ — Integration/acquisition costs $ 1.7 $ 1.8 $ 8.8 $ 14.9 Restructuring charges, net $ — $ — $ 1.9 $ 68.6 Impairment of fixed assets $ — $ — $ 0.5 $ 1.6 Impairment of right-of-use assets $ — $ — $ 2.5 $ 1.6 (c) Due to actions taken in connection with the worldwide minimum tax, the Company released a valuation allowance in FY'24 and recorded a $9.7 million non-recurring tax benefit, which is included in the Company's US GAAP results but excluded from the Adjusted results. (d) Contractual obligations due upon executive's death. Fiscal 2025 Fourth Quarter Results The Company reported fee revenue in Q4 FY'25 of $712.0 million, an increase of 3% year-over-year (up 4.0% at constant currency). During the quarter, the increase in fee revenue was due to higher fee revenue in Executive Search and Recruitment process outsourcing ("RPO"), partially offset by a decline in fee revenue in Consulting. Net income attributable to Korn Ferry was $64.2 million with a margin of 9.0% in Q4 FY'25, compared to net income attributable to Korn Ferry of $65.2 million with a margin of 9.4%, in Q4 FY'24, a decrease of 40bps compared to the year-ago quarter. Adjusted EBITDA was $121.1 million in Q4 FY'25 compared to $112.3 million in Q4 FY'24. Adjusted EBITDA margin was 17.0% in Q4 FY'25, an increase of 70bps compared to the year-ago quarter. Net income attributable to Korn Ferry and net income attributable to Korn Ferry margin decreased slightly from the prior year, primarily due to certain income tax benefits recorded in Q4 FY'24 which reduced the prior year quarterly effective tax rate by approximately 4 percentage points. Adjusted EBITDA and Adjusted EBITDA margin increased due to an increase in fee revenue and disciplined cost management. Fiscal 2025 Full Year Results The Company reported fee revenue in FY'25 of $2,730.1 million, a decrease of 1% in both actual and constant currency compared to FY'24. Net income attributable to Korn Ferry was $246.1 million with a margin of 9.0% in FY'25, compared to net income attributable to Korn Ferry of $169.2 million with a margin of 6.1%, in FY'24, an increase of 290bps. Adjusted EBITDA was $463.9 million in FY'25 compared to $408.2 million in FY'24. Adjusted EBITDA margin was 17.0% in FY'25, an increase of 220bps compared to the year-ago period. Net income attributable to Korn Ferry and net income attributable to Korn Ferry margin increased as a result of disciplined cost management, strong consultant productivity and a decrease in restructuring charges, net, partially offset by a higher effective tax rate in FY'25 as a result of the favorable impact of the valuation allowance release mentioned in footnote (c) above on FY'24's effective tax rate. Adjusted EBITDA and Adjusted EBITDA margin increased due to disciplined cost management and strong consultant productivity. Results by Solution Selected Consulting Data(dollars in millions) (a) Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Fee revenue $ 169.4 $ 182.2 $ 662.7 $ 695.0 Total revenue $ 172.5 $ 185.1 $ 674.1 $ 706.8 Remaining revenue under contract (b) $ 367.7 $ 340.6 $ 367.7 $ 340.6 Ending number of consultants and execution staff (c) 1,599 1,678 1,599 1,678 Hours worked in thousands (d) 373 417 1,510 1,656 Average bill rate (e) $ 454 $ 437 $ 439 $ 420 Adjusted Results (f): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Adjusted EBITDA $ 29.1 $ 32.3 $ 115.5 $ 114.3 Adjusted EBITDA margin 17.2 % 17.8 % 17.4 % 16.4 % ______________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Represents number of employees originating, delivering and executing consulting services. (d) The number of hours worked by consultant and execution staff during the period. (e) The amount of fee revenue divided by the number of hours worked by consultants and execution staff. (f) Adjusted results exclude the following: Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Management separation charges (g) $ 4.6 $ — $ 4.6 $ — Restructuring charges, net $ — $ — $ 1.7 $ 18.9 Impairment of right-of-use assets $ — $ — $ — $ 0.6 (g) Contractual obligations due upon executive's death. Fee revenue was $169.4 million in Q4 FY'25 compared to $182.2 million in Q4 FY'24, a decrease of $12.8 million or 7% in both actual and constant currency. The year-over-year decrease in Consulting fee revenue was primarily due to a greater mix of larger engagements which convert to fee revenue over a longer duration and ongoing slower delivery of backlog engagements driven by clients. Adjusted EBITDA was $29.1 million in Q4 FY'25 compared to $32.3 million in the year-ago quarter. Adjusted EBITDA margin in the quarter decreased year-over-year by 60bps to 17.2%. This decrease resulted primarily from lower fee revenue discussed above. Selected Digital Data (dollars in millions) (a) Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Fee revenue $ 91.6 $ 91.3 $ 363.5 $ 366.7 Total revenue $ 91.6 $ 91.4 $ 363.7 $ 366.9 Remaining revenue under contract (b) $ 392.6 $ 364.4 $ 392.6 $ 364.4 Ending number of consultants 244 267 244 267 Subscription & License fee revenue $ 34.5 $ 33.3 $ 137.7 $ 131.0 Adjusted Results (c): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Adjusted EBITDA $ 28.5 $ 28.0 $ 112.7 $ 108.7 Adjusted EBITDA margin 31.1 % 30.7 % 31.0 % 29.6 % ______________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Adjusted results exclude the following: Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Restructuring charges, net $ — $ — $ — $ 9.5 Impairment of fixed assets $ — $ — $ 0.4 $ 1.5 Fee revenue was $91.6 million in Q4 FY'25 compared to $91.3 million in Q4 FY'24, essentially flat year-over-year (up 1% at constant currency). Adjusted EBITDA was $28.5 million in Q4 FY'25, relatively flat compared to $28.0 million in the year-ago quarter. Adjusted EBITDA margin in the quarter increased slightly year-over-year by 40bps to 31.1%. Selected Executive Search Data(a) (dollars in millions) (b) Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Fee revenue $ 227.0 $ 198.7 $ 846.2 $ 806.2 Total revenue $ 229.1 $ 200.8 $ 854.1 $ 814.3 Remaining revenue under contract (c) $ 69.6 $ 64.8 $ 69.6 $ 64.8 Ending number of consultants 560 542 560 542 Average number of consultants 560 552 551 572 Engagements billed 3,827 3,456 9,151 8,978 New engagements (d) 1,738 1,586 6,325 6,091 Adjusted Results (e): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Adjusted EBITDA $ 54.2 $ 45.5 $ 206.2 $ 171.1 Adjusted EBITDA margin 23.9 % 22.9 % 24.4 % 21.2 % ______________________ (a) Executive Search is the sum of the individual Executive Search Reporting Segments described in our annual and quarterly reporting on Forms 10-K and 10-Q and is presented on a consolidated basis as it is consistent with the Company's discussion of its Solutions, and financial metrics used by the Company's investor base. (b) Numbers may not total due to rounding. (c) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (d) Represents new engagements opened in the respective period. (e) Executive Search Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that adjust for the following: Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Restructuring charges, net $ — $ — $ 0.2 $ 28.2 Impairment of right-of-use assets $ — $ — $ 2.5 $ 0.9 Impairment of fixed assets $ — $ — $ 0.2 $ 0.1 Fee revenue was $227.0 million in Q4 FY'25 compared to $198.7 million Q4 FY'24, an increase of $28.3 million or 14% (up 15% at constant currency). The year-over-year increase in fee revenue was primarily driven by an increase in the number of engagements billed and an increase in weighted-average fee billed per engagement. The Company experienced fee revenue growth in North America, EMEA and APAC regions. Adjusted EBITDA was $54.2 million in Q4 FY'25 compared to $45.5 million in the year-ago quarter. Adjusted EBITDA margin increased by 100bps to 23.9% in Q4 FY'25. The increase in Adjusted EBITDA and Adjusted EBITDA margin was due to higher fee revenue and increased consultant productivity. Selected Professional Search & Interim Data (dollars in millions) (a) Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Fee revenue $ 130.7 $ 129.2 $ 503.5 $ 540.6 Total revenue $ 131.7 $ 130.1 $ 507.2 $ 544.5 Permanent Placement: Fee revenue $ 50.9 $ 56.3 $ 203.8 $ 223.5 Remaining revenue under contract (b) $ 14.1 $ 14.0 $ 14.1 $ 14.0 Engagements billed 1,829 1,939 4,830 5,619 New engagements (c) 1,009 1,086 3,811 4,500 Ending number of consultants 309 331 309 331 Interim: Fee revenue $ 79.8 $ 72.9 $ 299.7 $ 317.1 Remaining revenue under contract (b) $ 107.6 $ 86.3 $ 107.6 $ 86.3 Average bill rate (d) $ 131 $ 129 $ 133 $ 126 Average weekly billable consultants (e) 1,301 1,157 1,168 1,303 Adjusted Results (f): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Adjusted EBITDA $ 27.4 $ 28.1 $ 107.6 $ 101.9 Adjusted EBITDA margin 21.0 % 21.8 % 21.4 % 18.8 % _____________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Represents new engagements opened in the respective period. (d) Fee revenue from interim divided by the number of hours worked by consultants. (e) The number of billable consultants based on a weekly average in the respective period. (f) Adjusted results exclude the following: Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Integration/acquisition costs $ 1.6 $ 1.8 $ 6.0 $ 14.5 Restructuring charges, net $ — $ — $ — $ 3.8 Fee revenue was $130.7 million in Q4 FY'25 compared to $129.2 million Q4 FY'24, an increase of $1.5 million or 1% (up 2% at a constant currency). Fee revenue increased due to higher fee revenue from Interim as a result of the acquisition of Trilogy, effective November 1, 2024, partially offset by a decrease in fee revenue in Permanent Placement due to an industry wide slowdown in demand. Adjusted EBITDA was $27.4 million in Q4 FY'25 compared to $28.1 million in the year-ago quarter. Adjusted EBITDA margin was 21.0%, down year-over-year by 80bps. Selected RPO Data (dollars in millions) (a) Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Fee revenue $ 93.3 $ 89.5 $ 354.1 $ 354.1 Total revenue $ 94.8 $ 92.5 $ 362.0 $ 363.0 Remaining revenue under contract (b) $ 758.0 $ 657.1 $ 758.0 $ 657.1 RPO new business (c) $ 118.8 $ 128.4 $ 533.4 $ 439.6 Adjusted Results (d): Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Adjusted EBITDA $ 14.5 $ 11.8 $ 52.6 $ 40.4 Adjusted EBITDA margin 15.5 % 13.2 % 14.9 % 11.4 % ______________________ (a) Numbers may not total due to rounding. (b) Estimated fee revenue associated with signed contracts for which revenue has not yet been recognized. (c) Estimated total value of a contract at the point of execution of the contract. (d) Adjusted results exclude the following: Fourth Quarter Year to Date FY'25 FY'24 FY'25 FY'24 Restructuring charges, net $ — $ — $ — $ 7.9 Impairment of right-of-use assets $ — $ — $ — $ 0.1 Fee revenue was $93.3 million in Q4 FY'25 compared to $89.5 million in Q4 FY'24, an increase of $3.8 million or 4% (up 5% at constant currency). RPO fee revenue increased due to recent new client wins being stood up and an increase in demand from our base clients in the North America and Asia Pacific regions. Adjusted EBITDA was $14.5 million in Q4 FY'25 compared to $11.8 million in the year-ago quarter. Adjusted EBITDA margin increased 230bps to 15.5% in Q4 FY'25. The increase in Adjusted EBITDA and Adjusted EBITDA margin both resulted from an increase in fee revenue and disciplined cost management. Outlook Assuming worldwide geopolitical conditions, economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis: Q1 FY'26 fee revenue is expected to be in the range of $675 million and $695 million; and Q1 FY'26 diluted earnings per share is expected to range between $1.16 to $1.24. On a consolidated adjusted basis: Q1 FY'26 adjusted diluted earnings per share is expected to be in the range from $1.18 to $1.26. Q1 FY'26 Earnings Per Share Outlook Low High Consolidated diluted earnings per share $ 1.16 $ 1.24 Integration/acquisition costs 0.03 0.03 Tax rate impact (0.01 ) (0.01 ) Consolidated adjusted diluted earnings per share(1) $ 1.18 $ 1.26 ______________________ (1) Consolidated adjusted diluted earnings per share is a non-GAAP financial measure that excludes the items listed in the table. Earnings Conference Call Webcast The earnings conference call will be held today at 12:00 PM (EDT) and hosted by CEO Gary Burnison, CFO Robert Rozek, SVP Business Development & Analytics Gregg Kvochak and VP Investor Relations Tiffany Louder. The conference call will be webcast and available online at We will also post to the investor relations section of our website earnings slides, which will accompany our webcast, and other important information, and encourage you to review the information that we make available on our website. About Korn Ferry Korn Ferry is a global consulting firm that powers performance. We unlock the potential in your people and unleash transformation across your business—synchronizing strategy, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. That's why the world's most forward-thinking companies across every major industry turn to us—for a shared commitment to lasting impact and the bold ambition to Be More Than. Forward-Looking Statements Statements in this press release and our conference call that relate to our outlook, projections, goals, strategies, future plans and expectations, including statements relating to expected labor market conditions, expected demand for and relevance of our products and services, expected results of our business diversification strategy, expected benefits of the acquisition of Trilogy, impact of global events on our business, and other statements of future events or conditions are forward-looking statements that involve a number of risks and uncertainties. Words such as "believes", "expects", "anticipates", "goals", "estimates", "guidance", "may", "should", "could", "will" or "likely", and variations of such words and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such statements are based on current expectations; actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties that are beyond the control of Korn Ferry. The potential risks and uncertainties include those relating to global and local political and or economic developments in or affecting countries where we have operations, such as inflation, trade wars, interest rates, labor market conditions, global slowdowns, or recessions, competition, geopolitical tensions, shifts in global trade patterns, changes in demand for our services as a result of automation, dependence on and costs of attracting and retaining qualified and experienced consultants, impact of inflationary pressures on our profitability, our ability to maintain relationships with customers and suppliers and retaining key employees, maintaining our brand name and professional reputation, potential legal liability and regulatory developments, portability of client relationships, consolidation of or within the industries we serve, changes and developments in government laws and regulations, evolving investor and customer expectations with regard to corporate responsibility matters, currency fluctuations in our international operations, risks related to growth, alignment of our cost structure, including as a result of recent workforce, real estate, and other restructuring initiatives, restrictions imposed by off-limits agreements, reliance on information processing systems, cyber security vulnerabilities or events, changes to data security, data privacy, and data protection laws, dependence on third parties for the execution of critical functions, limited protection of our intellectual property ("IP"), our ability to enhance, develop and respond to new technology, including artificial intelligence, our ability to successfully recover from a disaster or other business continuity problems, employment liability risk, an impairment in the carrying value of goodwill and other intangible assets, treaties, or regulations on our business and our Company, deferred tax assets that we may not be able to use, our ability to develop new products and services, changes in our accounting estimates and assumptions, the utilization and billing rates of our consultants, seasonality, the expansion of social media platforms, the ability to effect acquisitions and integrate acquired businesses, resulting organizational changes, our indebtedness, and those relating to the ultimate magnitude and duration of any pandemic or outbreaks. For a detailed description of risks and uncertainties that could cause differences from our expectations, please refer to Korn Ferry's periodic filings with the Securities and Exchange Commission. Korn Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). In particular, it includes: Adjusted net income attributable to Korn Ferry, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, management separation charges and restructuring charges, net of income tax effect, and to exclude a $9.7 million non-recurring tax benefit in fiscal 2024 from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance; Adjusted basic and diluted earnings per share, adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, management separation charges and restructuring charges, net of income tax effect, and to exclude a $9.7 million non-recurring tax benefit in fiscal 2024 from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance; Constant currency (calculated using a quarterly average) percentages that represent the percentage change that would have resulted had exchange rates in the prior period been the same as those in effect in the current period; and Consolidated and Executive Search Adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, further adjusted to exclude integration/acquisition costs, impairment of fixed assets, impairment of right-of-use assets, management separation charges and restructuring charges, net when applicable, and Consolidated and Executive Search Adjusted EBITDA margin. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes the presentation of non-GAAP financial measures in this press release provides meaningful supplemental information regarding Korn Ferry's performance by excluding certain charges that may not be indicative of Korn Ferry's ongoing operating results. These non-GAAP financial measures are performance measures and are not indicative of the liquidity of Korn Ferry. These charges, which are described in the footnotes in the attached reconciliations, represent 1) costs we incurred to acquire and integrate a portion of our Professional Search & Interim business, 2) impairment of fixed assets primarily due to software impairment charge in our Digital segment, 3) impairment of right-of-use assets due to the decision to terminate and sublease some of our offices, 4) restructuring charges, net to align workforce to challenging macroeconomic business environment, 5) separation charges due to contractual obligations due upon executive's death and 6) to exclude a $9.7 million non-recurring tax benefit in fiscal 2024 from actions taken in connection with the worldwide minimum tax that resulted in the release of a valuation allowance. The use of non-GAAP financial measures facilitates comparisons to Korn Ferry's historical performance. Korn Ferry includes non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making. Adjusted net income attributable to Korn Ferry, adjusted basic and diluted earnings per share and Consolidated and Executive Search Adjusted EBITDA, exclude certain charges that management does not consider on-going in nature and allows management and investors to make more meaningful period-to-period comparisons of the Company's operating results. Management further believes that Consolidated and Executive Search Adjusted EBITDA is useful to investors because it is frequently used by investors and other interested parties to measure operating performance among companies with different capital structures, effective tax rates and tax attributes and capitalized asset values, all of which can vary substantially from company to company. In the case of constant currency percentages, management believes the presentation of such information provides useful supplemental information regarding Korn Ferry's performance as excluding the impact of exchange rate changes on Korn Ferry's financial performance allows investors to make more meaningful period-to-period comparisons of the Company's operating results, to better identify operating trends that may otherwise be masked or distorted by exchange rate changes and to perform related trend analysis, and provides a higher degree of transparency of information used by management in its evaluation of Korn Ferry's ongoing operations and financial and operational decision-making. KORN FERRY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) Three Months Ended April 30, Year Ended April 30, 2025 2024 2025 2024 (unaudited) Fee revenue $ 712,048 $ 690,800 $ 2,730,088 $ 2,762,671 Reimbursed out-of-pocket engagement expenses 7,779 9,123 30,998 32,834 Total revenue 719,827 699,923 2,761,086 2,795,505 Compensation and benefits 443,503 454,208 1,758,024 1,844,164 General and administrative expenses 68,623 64,724 258,488 259,039 Reimbursed expenses 7,779 9,123 30,998 32,834 Cost of services 74,827 68,499 285,075 300,015 Depreciation and amortization 20,531 19,891 80,287 77,966 Restructuring charges, net — — 1,892 68,558 Total operating expenses 615,263 616,445 2,414,764 2,582,576 Operating income 104,564 83,478 346,322 212,929 Other (loss) income, net (10,306 ) 7,122 18,953 30,681 Interest expense, net (5,331 ) (4,686 ) (20,363 ) (20,968 ) Income before provision for income taxes 88,927 85,914 344,912 222,642 Income tax provision 23,789 20,302 93,836 50,081 Net income 65,138 65,612 251,076 172,561 Net income attributable to noncontrolling interest (894 ) (423 ) (5,014 ) (3,407 ) Net income attributable to Korn Ferry $ 64,244 $ 65,189 $ 246,062 $ 169,154 Earnings per common share attributable to Korn Ferry: Basic $ 1.23 $ 1.26 $ 4.69 $ 3.25 Diluted $ 1.21 $ 1.24 $ 4.60 $ 3.23 Weighted-average common shares outstanding: Basic 51,599 50,764 51,778 51,038 Diluted 52,504 51,487 52,806 51,432 KORN FERRY AND SUBSIDIARIES FINANCIAL SUMMARY BY REPORTING SEGMENT (dollars in thousands) (unaudited) Three Months EndedApril 30, Year EndedApril 30, 2025 2024 % Change 2025 2024 % Change Fee revenue: Consulting $ 169,363 $ 182,177 (7.0 %) $ 662,708 $ 695,007 (4.6 %) Digital 91,634 91,304 0.4 % 363,530 366,699 (0.9 %) Executive Search: North America 143,014 125,468 14.0 % 535,921 506,927 5.7 % EMEA 53,479 45,643 17.2 % 194,088 184,516 5.2 % Asia Pacific 23,630 20,696 14.2 % 87,337 85,863 1.7 % Latin America 6,880 6,896 (0.2 %) 28,862 28,937 (0.3 %) Total Executive Search (a) 227,003 198,703 14.2 % 846,208 806,243 5.0 % Professional Search & Interim 130,710 129,162 1.2 % 503,515 540,615 (6.9 %) RPO 93,338 89,454 4.3 % 354,127 354,107 0.0 % Total fee revenue 712,048 690,800 3.1 % 2,730,088 2,762,671 (1.2 %) Reimbursed out-of-pocket engagement expenses 7,779 9,123 (14.7 %) 30,998 32,834 (5.6 %) Total revenue $ 719,827 $ 699,923 2.8 % $ 2,761,086 $ 2,795,505 (1.2 %) (a) Total Executive Search is the sum of the individual Executive Search Reporting Segments and is presented on a consolidated basis as it is consistent with the Company's discussion of its Solutions, and financial metrics used by the Company's investor base. KORN FERRY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) April 30, 2025 April 30, 2024 ASSETS Cash and cash equivalents $ 1,006,964 $ 941,005 Marketable securities 36,388 42,742 Receivables due from clients, net of allowance for doubtful accounts of $40,461 and $44,192 at April 30, 2025 and 2024, respectively 565,255 541,014 Income taxes and other receivables 38,394 40,696 Unearned compensation 61,649 59,247 Prepaid expenses and other assets 41,488 49,456 Total current assets 1,750,138 1,674,160 Marketable securities, non-current 233,626 211,681 Property and equipment, net 173,610 161,849 Operating lease right-of-use assets, net 152,712 160,464 Cash surrender value of company-owned life insurance policies, net of loans 252,621 218,977 Deferred income taxes 144,560 133,564 Goodwill 948,832 908,376 Intangible assets, net 70,193 88,833 Unearned compensation, non-current 106,965 99,913 Investments and other assets 27,967 21,052 Total assets $ 3,861,224 $ 3,678,869 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 58,884 $ 50,112 Income taxes payable 23,079 24,076 Compensation and benefits payable 530,473 525,466 Operating lease liability, current 38,573 36,073 Other accrued liabilities 304,589 298,792 Total current liabilities 955,598 934,519 Deferred compensation and other retirement plans 477,770 440,396 Operating lease liability, non-current 131,762 143,507 Long-term debt 397,736 396,946 Deferred tax liabilities 5,981 4,540 Other liabilities 20,238 21,636 Total liabilities 1,989,085 1,941,544 Stockholders' equity Common stock: $0.01 par value, 150,000 shares authorized, 78,264 and 77,460 shares issued and 51,458 and 51,983 shares outstanding at April 30, 2025 and 2024, respectively 364,425 414,885 Retained earnings 1,588,274 1,425,844 Accumulated other comprehensive loss, net (86,243 ) (107,671 ) Total Korn Ferry stockholders' equity 1,866,456 1,733,058 Noncontrolling interest 5,683 4,267 Total stockholders' equity 1,872,139 1,737,325 Total liabilities and stockholders' equity $ 3,861,224 $ 3,678,869 KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (dollars in thousands) (unaudited) Three Months Ended April 30, Year Ended April 30, 2025 2024 2025 2024 Net income attributable to Korn Ferry $ 64,244 $ 65,189 $ 246,062 $ 169,154 Net income attributable to non-controlling interest 894 423 5,014 3,407 Net income 65,138 65,612 251,076 172,561 Income tax provision 23,789 20,302 93,836 50,081 Income before provision for income taxes 88,927 85,914 344,912 222,642 Interest expense, net 5,331 4,686 20,363 20,968 Depreciation and amortization 20,531 19,891 80,287 77,966 Integration/acquisition costs (1) 1,738 1,809 8,837 14,866 Impairment of fixed assets (2) — — 509 1,575 Impairment of right-of-use assets (3) — — 2,452 1,629 Restructuring charges, net (4) — — 1,892 68,558 Management separation charges (5) 4,614 — 4,614 — Adjusted EBITDA $ 121,141 $ 112,300 $ 463,866 $ 408,204 Net income attributable to Korn Ferry margin 9.0 % 9.4 % 9.0 % 6.1 % Net income attributable to non-controlling interest 0.1 % 0.1 % 0.2 % 0.1 % Income tax provision 3.3 % 2.9 % 3.4 % 1.8 % Interest expense, net 0.8 % 0.7 % 0.8 % 0.8 % Depreciation and amortization 2.9 % 2.9 % 2.9 % 2.8 % Integration/acquisition costs (1) 0.2 % 0.3 % 0.3 % 0.5 % Impairment of fixed assets (2) — % — % 0.0 % 0.1 % Impairment of right-of-use assets (3) — % — % 0.1 % 0.1 % Restructuring charges, net (4) — % — % 0.1 % 2.5 % Management separation charges (5) 0.7 % — % 0.2 % — % Adjusted EBITDA margin 17.0 % 16.3 % 17.0 % 14.8 % Net income attributable to Korn Ferry $ 64,244 $ 65,189 $ 246,062 $ 169,154 Integration/acquisition costs (1) 1,738 1,809 8,837 14,866 Impairment of fixed assets (2) — — 509 1,575 Impairment of right-of-use assets (3) — — 2,452 1,629 Restructuring charges, net (4) — — 1,892 68,558 Management separation charges (5) 4,614 — 4,614 — Tax effect on the adjusted items (6) (487 ) (1,267 ) (3,187 ) (22,030 ) Tax adjustment (7) — — — (9,714 ) Adjusted net income attributable to Korn Ferry $ 70,109 $ 65,731 $ 261,179 $ 224,038 Explanation of Non-GAAP Adjustments (1) Costs associated with current and previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses. (2) Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment. (3) Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices. (4) Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment. (5) Contractual obligations due upon executive's death. (6) Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, restructuring charges, net and separation charges. (7) Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in fiscal 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results. KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (unaudited) Three Months Ended April 30, Year Ended April 30, 2025 2024 2025 2024 Basic earnings per common share $ 1.23 $ 1.26 $ 4.69 $ 3.25 Integration/acquisition costs (1) 0.03 0.04 0.17 0.29 Impairment of fixed assets (2) — — 0.01 0.03 Impairment of right-of-use assets (3) — — 0.05 0.03 Restructuring charges, net (4) — — 0.03 1.33 Management separation charges (5) 0.09 — 0.09 — Tax effect on the adjusted items (6) (0.01 ) (0.03 ) (0.06 ) (0.43 ) Tax adjustment (7) — — — (0.19 ) Adjusted basic earnings per share $ 1.34 $ 1.27 $ 4.98 $ 4.31 Diluted earnings per common share $ 1.21 $ 1.24 $ 4.60 $ 3.23 Integration/acquisition costs (1) 0.03 0.04 0.16 0.29 Impairment of fixed assets (2) — — 0.01 0.03 Impairment of right-of-use assets (3) — — 0.05 0.03 Restructuring charges, net (4) — — 0.03 1.32 Management separation charges (5) 0.09 — 0.09 — Tax effect on the adjusted items (6) (0.01 ) (0.02 ) (0.06 ) (0.43 ) Tax adjustment (7) — — — (0.19 ) Adjusted diluted earnings per share $ 1.32 $ 1.26 $ 4.88 $ 4.28 Explanation of Non-GAAP Adjustments (1) Costs associated with current and previous acquisitions, such as legal and professional fees, retention awards and the on-going integration expenses. (2) Costs associated with impairment of fixed assets primarily due to software impairment charge in our Digital segment. (2) Costs associated with impairment of right-of-use assets due to terminating and deciding to sublease some of our offices. (4) Restructuring charges incurred to align our workforce to eliminate excess capacity resulting from challenging macroeconomic business environment. (5) Contractual obligations due upon executive's death. (6) Tax effect on integration/acquisition costs, impairment of fixed assets and right-of-use assets, restructuring charges, net and management separation charges. (7) Due to actions taken in connection with the worldwide minimum tax, the Company recorded a $9.7 million non-recurring tax benefit in fiscal 2024 that resulted in the release of a valuation allowance, which is included in the Company's US GAAP results but excluded from the Adjusted results. KORN FERRY AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - CONTINUED (dollars in thousands) (unaudited) Three Months Ended April 30, 2025 2024 Net income attributable to Korn Ferry Net income attributable to Korn Ferry margin Net income attributable to Korn Ferry Net income attributable to Korn Ferry margin Consolidated $ 64,244 9.0 % $ 65,189 9.4 % Fee revenue Total revenue Adjusted EBITDA Adjusted EBITDA margin Fee revenue Total revenue Adjusted EBITDA Adjusted EBITDA margin Consulting $ 169,363 $ 172,537 $ 29,055 17.2 % $ 182,177 $ 185,130 $ 32,340 17.8 % Digital 91,634 91,642 28,477 31.1 % 91,304 91,361 27,991 30.7 % Executive Search: North America 143,014 144,673 39,062 27.3 % 125,468 127,140 33,136 26.4 % EMEA 53,479 53,773 9,092 17.0 % 45,643 45,931 6,846 15.0 % Asia Pacific 23,630 23,802 4,965 21.0 % 20,696 20,819 4,233 20.5 % Latin America 6,880 6,884 1,103 16.0 % 6,896 6,906 1,275 18.5 % Total Executive Search 227,003 229,132 54,222 23.9 % 198,703 200,796 45,490 22.9 % Professional Search & Interim 130,710 131,674 27,426 21.0 % 129,162 130,105 28,122 21.8 % RPO 93,338 94,842 14,499 15.5 % 89,454 92,531 11,782 13.2 % Corporate — — (32,538 ) — — (33,425 ) Consolidated $ 712,048 $ 719,827 $ 121,141 17.0 % $ 690,800 $ 699,923 $ 112,300 16.3 % Year Ended April 30, 2025 2024 Net income attributable to Korn Ferry Net income attributable to Korn Ferry margin Net income attributable to Korn Ferry Net income attributable to Korn Ferry margin Consolidated $ 246,062 9.0 % $ 169,154 6.1 % Fee revenue Total revenue Adjusted EBITDA Adjusted EBITDA margin Fee revenue Total revenue Adjusted EBITDA Adjusted EBITDA margin Consulting $ 662,708 $ 674,070 $ 115,481 17.4 % $ 695,007 $ 706,805 $ 114,260 16.4 % Digital 363,530 363,727 112,696 31.0 % 366,699 366,924 108,669 29.6 % Executive Search: North America 535,921 542,068 148,242 27.7 % 506,927 513,545 120,710 23.8 % EMEA 194,088 195,268 31,689 16.3 % 184,516 185,552 25,902 14.0 % Asia Pacific 87,337 87,840 18,119 20.7 % 85,863 86,273 18,923 22.0 % Latin America 28,862 28,876 8,149 28.2 % 28,937 28,956 5,571 19.3 % Total Executive Search 846,208 854,052 206,199 24.4 % 806,243 814,326 171,106 21.2 % Professional Search & Interim 503,515 507,246 107,600 21.4 % 540,615 544,453 101,868 18.8 % RPO 354,127 361,991 52,635 14.9 % 354,107 362,997 40,399 11.4 % Corporate — — (130,745 ) — — (128,098 ) Consolidated $ 2,730,088 $ 2,761,086 $ 463,866 17.0 % $ 2,762,671 $ 2,795,505 $ 408,204 14.8 % View source version on Contacts Investor Relations: Tiffany Louder, (214) 310-8407Media: Dan Gugler, (310) 226-2645 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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12-06-2025
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Cognyte Software Ltd (CGNT) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: $95.5 million, a 16% year-over-year increase. Software Revenue: $37.4 million, a 19% year-over-year increase. Software Service Revenue: $44.7 million, roughly even with last year. Professional Services Revenue: $13.5 million, an increase of $6.6 million over last year. Recurring Revenue: $47.2 million, representing 49% of total revenue. Non-GAAP Gross Margin: 71.9%, expanding by 80 basis points year-over-year. Gross Profit: $68.7 million, a 17% year-over-year increase. Adjusted EBITDA: $10.3 million, more than double from last year's $5 million. Non-GAAP Operating Income: $7.6 million, over 4 times higher than last year's $1.8 million. Non-GAAP EPS: $0.07 for the quarter. Cash Flow from Operations: $1.7 million. Free Cash Flow: Negative $2.5 million. Deferred Revenue: Approximately $113 million. Cash Position: $102.9 million with no debt. Fiscal '26 Revenue Guidance: Approximately $395 million, representing about 13% year-over-year growth. Fiscal '26 Adjusted EBITDA Guidance: Approximately $44 million, representing 50% year-over-year growth. Fiscal '26 Cash Flow from Operations Guidance: $45 million. Warning! GuruFocus has detected 2 Warning Sign with CGNT. Release Date: June 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cognyte Software Ltd (NASDAQ:CGNT) reported a 16% year-over-year revenue growth in Q1, reaching $95.5 million. Non-GAAP gross profit increased by 17% year-over-year, demonstrating strong financial performance. The company signed a multi-year support agreement valued at over $20 million per year with a longstanding national security customer. Cognyte Software Ltd (NASDAQ:CGNT) closed five additional deals valued at approximately $5 million each, showcasing strong customer engagement. The acquisition of GroupSense is expected to enhance Cognyte's presence in the US market, adding approximately 50 new customers. Despite strong Q1 performance, the impact of recent large contract signings on fiscal '26 revenue is limited due to timing and renewal schedules. The GroupSense acquisition, while strategic, is a small transaction and currently breakeven, with limited immediate financial impact. Recurring revenue, while providing visibility, represents only 49% of total revenue, indicating potential volatility in non-recurring segments. Professional services revenue is expected to fluctuate between quarters, which may affect overall revenue stability. The company's cash flow from operations was relatively modest at $1.7 million, with a negative free cash flow of $2.5 million in Q1. Q: How did Cognyte's Q1 performance compare to expectations, and what is the outlook for demand and market environment? A: Elad Sharon, CEO, stated that Q1 revenue slightly exceeded expectations, but such variations can occur between quarters. The company anticipates sequential growth throughout the year. The demand and market environment remain strong, with good customer traction and healthy demand drivers, such as growing data volumes and sophisticated adversaries. Q: Why isn't the recent $40 million in total contract value impacting fiscal '26 revenue more significantly? A: Elad Sharon explained that one large contract renewal was already included in the guidance, and a significant $10 million annual subscription deal will begin deployment in fiscal '27, thus not affecting the current fiscal year's revenue. Q: Why is only the first year of a three-year, $10 million annual deal included in the RPO? A: David Abadi, CFO, clarified that due to the terms and conditions of the deal, only the first year qualifies for inclusion in the RPO, despite the deal's three-year duration. Q: What is the financial impact of the GroupSense acquisition on Cognyte's guidance? A: Dean Ridlon, VP of Investor Relations, noted that the acquisition adds $3 million in recurring revenue to the top line, with an associated $2 million increase in operating expenses. The acquisition is expected to be breakeven initially, with potential profitability through synergies. Q: Are all 50 customers from the GroupSense acquisition based in the US, and is there any overlap with Cognyte's existing customer base? A: Elad Sharon confirmed that all GroupSense customers are in the US. The acquisition aims to leverage Cognyte's technology to expand its presence in the US market, with no direct overlap mentioned. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
