Heidrick & Struggles Delivers 16% Revenue Growth in Q3, Driving Strong Profitability

Q3 Revenue Exceeds High End of Outlook

All Lines of Business Contribute to Consolidated Revenue Growth

Third Quarter 2025 Financial Highlights:

• Net revenue of $322.8 million increased 15.9% year over year
• Adjusted EBITDA of $34.2 million with Adjusted EBITDA margin of 10.6%
• Net income of $17.6 million with diluted earnings per share of $0.83
• The Board of Directors declared a $0.15 per share cash dividend

CHICAGO, Nov. 3, 2025 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII) ("Heidrick & Struggles", "Heidrick" or the "Company"), a premier provider of global leadership advisory and on-demand talent solutions, today announced financial results for its third quarter ended September 30, 2025.

"We continued our strong 2025 momentum highlighted by our third quarter results that exceeded the high end of our outlook," said Tom Monahan, CEO of Heidrick & Struggles. "Our teams remained laser focused on partnering with clients through the full suite of our global leadership advisory solutions to meet and solve their needs while developing differentiated, deep, and durable global client relationships. With a focus on being a trusted partner to senior leaders and ensuring Heidrick is a company where the best people do their best work, we aim to drive sustainable growth and profitability which in turn allows us to reinvest into growing top talent while developing client solutions for the future."

Take Private Transaction

As announced on October 6, 2025, Heidrick entered into a definitive agreement to become a private company with an investor consortium led by Advent International and Corvex Private Equity for $59.00 per share in cash. In light of this transaction, Heidrick will not be hosting an earnings conference call or webcast to discuss its third quarter 2025 financial results.

Dividend

The Board of Directors declared a 2025 third quarter cash dividend of $0.15 per share payable on November 26, 2025, to shareholders of record at the close of business on November 13, 2025.

Selected Consolidated Results
(Dollars in millions, except per share amounts, and average revenue per executive search in thousands)
	Three Months Ended September 30,
	2025	2024
Revenue before reimbursements (net revenue)	$ 322.8	$ 278.6
Adjusted results (a):
Adjusted EBITDA	$ 34.2	$ 30.4
Adjusted EBITDA margin	10.6 %	10.9 %
Net income	$ 17.6	$ 14.8
Diluted earnings per share	$ 0.83	$ 0.71
Selected Executive Search Data
Revenue before reimbursements (net revenue)	$ 239.1	$ 204.4
Ending number of consultants	421	414
Annualized consultant productivity	$ 2.3	$ 2.0
Average revenue per executive search	$ 162	$ 149
Confirmations (% increase/decrease)	7.1 %	5.4 %
Selected On-Demand Talent Data
Revenue before reimbursements (net revenue)	$ 50.9	$ 46.2
Selected Heidrick Consulting Data
Revenue before reimbursements (net revenue)	$ 32.8	$ 27.9
Ending number of consultants	93	84
(a) Non-GAAP financial measures. See Non-GAAP Financial Measures, Reconciliations of Net Income to Adjusted EBITDA at the end of this press release for more information.

2025 Third Quarter Results

Consolidated net revenue increased 15.9%, or $44.3 million, to $322.8 million in the 2025 third quarter compared to consolidated net revenue of $278.6 million in the 2024 third quarter (up 14.2%, or $39.7 million on a constant currency basis). The revenue increase was driven by year-over-year growth in each of the Company's lines of business - Executive Search, On-Demand Talent, and Heidrick Consulting.

2025 third quarter net income was $17.6 million and diluted earnings per share was $0.83 compared to net income of $14.8 million and diluted earnings per share of $0.71 in the 2024 third quarter.

Adjusted EBITDA increased $3.8 million, or 12.6%, to $34.2 million in the 2025 third quarter compared to $30.4 million in the 2024 third quarter, and 2025 third quarter adjusted EBITDA margin declined 30 basis points to 10.6% compared to 10.9% in the 2024 third quarter.

Executive Search net revenue was $239.1 million in the 2025 third quarter compared to net revenue of $204.4 million in the 2024 third quarter, an increase of $34.7 million, or 17.0% (up $32.3 million, or 15.8% on a constant currency basis). The higher revenue versus the year-ago period was driven by increases of 20.8% in the Americas (up 20.7% on a constant currency basis), 18.0% in Europe (up 12.1% on a constant currency basis), partially offset by a decrease in Asia Pacific of 3.9% (down 3.1% on a constant currency basis) when compared to the 2024 third quarter.

Adjusted EBITDA increased $6.5 million, or 12.8%, to $57.2 million in the 2025 third quarter compared to $50.7 million in the 2024 third quarter, and 2025 third quarter adjusted EBITDA margin was 23.9% compared to 24.8% in the 2024 third quarter.

On-Demand Talent net revenue increased $4.7 million, or 10.1%, to $50.9 million in the 2025 third quarter compared to net revenue of $46.2 million in the 2024 third quarter (up $3.0 million, or 6.6% on a constant currency basis).

Adjusted EBITDA was $2.8 million in the 2025 third quarter compared to $1.8 million in the 2024 third quarter, and Adjusted EBITDA margin was 5.6% compared to 3.8% in the 2024 third quarter.

Heidrick Consulting net revenue increased $4.9 million, or 17.6%, to $32.8 million in the 2025 third quarter compared to net revenue of $27.9 million in the 2024 second quarter (up $4.3 million, or 15.4% on a constant currency basis).

Adjusted EBITDA was a loss of $1.9 million in the 2025 third quarter compared to a loss of $1.0 million in the 2024 third quarter, and Adjusted EBITDA margin was (5.7)% compared to (3.7)% in the 2024 third quarter.

About Heidrick & Struggles International, Inc.

Heidrick & Struggles (Nasdaq: HSII) is the world's foremost advisor on executive leadership, driving superior client performance through premier human capital leadership advisory services. For more than 70 years, we've delivered value for our clients by leveraging unrivaled expertise to help organizations discover and enable outstanding leaders and teams. Learn more at www.heidrick.com.

Non-GAAP Financial Measures

To supplement the financial results presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Heidrick & Struggles presents certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of comprehensive income, balance sheets or statements of cash flow of the Company.

Non-GAAP financial measures used within this earnings release are adjusted EBITDA, adjusted EBITDA margin, and net revenue excluding the impact of exchange rate fluctuations (referred to as constant currency). These measures are presented because management uses this information to monitor and evaluate financial results and allocate resources. Management believes this information is also useful for investors to evaluate the comparability of financial information presented. Reconciliations of these non-GAAP financial measures to the most directly comparable measures calculated and presented in accordance with GAAP are provided as schedules attached to this release.

Adjusted EBITDA refers to net income before interest, taxes, depreciation and amortization, as adjusted, to the extent they occur, for earnout accretion, earnout fair value adjustments, contingent compensation, deferred compensation plan income or expense, certain reorganization costs, transaction fees, impairment charges and restructuring charges.

Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of net revenue in the same period.

The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculates constant currency percentages by converting its financial results in a local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly titled measures used by other companies.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding guidance for the third quarter of 2025. The forward-looking statements are based on current expectations, estimates, forecasts, and projections about the industry in which we operate and management's beliefs and assumptions. Forward-looking statements may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "outlook," "projects," "forecasts," "aim" and similar expressions. Forward-looking statements are not guarantees of future performance, rely on a number of assumptions, and involve certain known and unknown risks and uncertainties that are difficult to predict, many of which are beyond our control. Factors that may cause actual outcomes and results to differ materially from what is expressed, forecasted or implied in the forward-looking statements include, among other things, our ability to attract, integrate, develop, manage, retain and motivate qualified consultants and senior leaders; our ability to prevent our consultants from taking our clients with them to another firm; our ability to maintain our professional reputation and brand name; our clients' ability to restrict us from recruiting their employees; our heavy reliance on information management systems; risks arising from our implementation of new technology and intellectual property to deliver new products and services to our clients; our dependence on third parties for the execution of certain critical functions; the fact that we face the risk of liability in the services we perform; the fact that data security, data privacy and data protection laws and other evolving regulations and cross-border data transfer restrictions may limit the use of our services and adversely affect our business; any challenges to the classification of our on-demand talent as independent contractors; the fact that increased cybersecurity requirements, vulnerabilities, threats and more sophisticated and targeted cyber-related attacks could pose a risk to our systems, networks, solutions, services and data; the fact that our net revenue may be affected by adverse macroeconomic or labor market conditions, including impacts of inflation and effects of geopolitical instability; the aggressive competition we face; the impact of foreign currency exchange rate fluctuations; our ability to access additional credit; social, political, regulatory, legal and economic risks in markets where we operate, including the impact of the ongoing war in Ukraine, the conflict between Israel and Hamas and any broader regional conflict in the Middle East, the risks of an expansion or escalation of those conflicts and our ability to quickly and completely recover from any disruption to our business; the impact from actions by the U.S. presidential administration and Congress; unfavorable tax law changes and tax authority rulings; our ability to realize the benefit of our net deferred tax assets; the fact that we may not be able to align our cost structure with net revenue; any impairment of our goodwill, other intangible assets and other long-lived assets; our ability to maintain an effective system of disclosure controls and internal control over our financial reporting and produce accurate and timely financial statements; our ability to execute and integrate future acquisitions; the fact that we have anti-takeover provisions that make an acquisition of us difficult and expensive; risks and uncertainties relating to the transactions contemplated by the Merger Agreement (as defined below), including the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the Merger Agreement; the possibility that the Merger and the related transactions do not close when expected or at all because required regulatory, stockholder, or other approvals and other conditions to closing are not waived, received or satisfied on a timely basis or at all; the risk that the benefits from the Merger may not be fully realized; and the diversion of management's attention and time to the Merger from ongoing business operations and opportunities. We caution the reader that the list of factors may not be exhaustive. For more information on the factors that could affect the outcome of forward-looking statements, refer to our Annual Report on Form 10-K for the year ended December 31, 2024, under the heading "Risk Factors" in Item 1A, and any subsequent Company filings with the Securities and Exchange Commission ("SEC"). We caution the reader that the list of factors may not be exhaustive. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

We caution the reader that the list of factors may not be exhaustive. For more information on these risks, uncertainties and other factors, refer to our Annual Report on Form 10-K for the year ended December 31, 2024, under the heading "Risk Factors" in Item 1A, and our subsequent filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date of this press release. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:

Investors & Analysts:
Vance Edelson
[email protected]

Media:
Bianca Wilson, Global Director, Public Relations
[email protected]

Heidrick & Struggles International, Inc. Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) (Unaudited)
	Three Months Ended September 30,
	2025		2024		$ Change		% Change
Revenue
Revenue before reimbursements (net revenue)	$ 322,837		$ 278,559		$ 44,278		15.9 %
Reimbursements	5,059		4,256		803		18.9 %
Total revenue	327,896		282,815		45,081		15.9 %
Operating expenses
Salaries and benefits	217,836		183,025		34,811		19.0 %
General and administrative expenses	41,778		39,740		2,038		5.1 %
Cost of services	37,644		31,030		6,614		21.3 %
Research and development	6,418		5,682		736		13.0 %
Reimbursed expenses	5,059		4,256		803		18.9 %
Total operating expenses	308,735		263,733		45,002		17.1 %
Operating income	19,161		19,082		79		0.4 %
Non-operating income (loss)
Interest, net	3,436		2,570
Other, net	3,884		(555)
Net non-operating income	7,320		2,015
Income before income taxes	26,481		21,097
Provision for income taxes	8,835		6,268
Net income	17,646		14,829
Other comprehensive income (loss), net of tax	(261)		6,996
Comprehensive income	$ 17,385		$ 21,825
Weighted-average common shares outstanding
Basic	20,735		20,357
Diluted	21,316		21,024
Earnings per common share
Basic	$ 0.85		$ 0.73
Diluted	$ 0.83		$ 0.71
Salaries and benefits as a % of net revenue	67.5 %		65.7 %
General and administrative expenses as a % of net revenue	12.9 %		14.3 %
Cost of services as a % of net revenue	11.7 %		11.1 %
Research and development as a % of net revenue	2.0 %		2.0 %
Operating margin	5.9 %		6.9 %

Heidrick & Struggles International, Inc. Segment Information (In thousands) (Unaudited)
	Three Months Ended September 30,
	2025		2024		$ Change		% Change		2025 Margin 1		2024 Margin 1
Revenue
Executive Search
Americas	$ 162,508		$ 134,545		$ 27,963		20.8 %
Europe	50,927		43,143		7,784		18.0 %
Asia Pacific	25,648		26,701		(1,053)		(3.9) %
Total Executive Search	239,083		204,389		34,694		17.0 %
On-Demand Talent	50,910		46,231		4,679		10.1 %
Heidrick Consulting	32,844		27,939		4,905		17.6 %
Revenue before reimbursements (net revenue)	322,837		278,559		44,278		15.9 %
Reimbursements	5,059		4,256		803		18.9 %
Total revenue	$ 327,896		$ 282,815		$ 45,081		15.9 %
Adjusted EBITDA
Executive Search
Americas	$ 48,893		$ 40,465		$ 8,428		20.8 %		30.1 %		30.1 %
Europe	6,578		5,022		1,556		31.0 %		12.9 %		11.6 %
Asia Pacific	1,760		5,247		(3,487)		(66.5) %		6.9 %		19.7 %
Total Executive Search	57,231		50,734		6,497		12.8 %		23.9 %		24.8 %
On-Demand Talent	2,837		1,763		1,074		(60.9) %		5.6 %		3.8 %
Heidrick Consulting	(1,864)		(1,025)		(839)		(81.9) %		(5.7) %		(3.7) %
Total segments	58,204		51,472		6,732		13.1 %		18.0 %		18.5 %
Research and Development	(4,615)		(4,606)		(9)		(0.2) %		(1.4) %		(1.7) %
Global Operations Support	(19,345)		(16,451)		(2,894)		(17.6) %		(6.0) %		(5.9) %
Total Adjusted EBITDA	$ 34,244		$ 30,415		$ 3,829		12.6 %		10.6 %		10.9 %

¹Margin based on revenue before reimbursements (net revenue).

Heidrick & Struggles International, Inc. Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) (Unaudited)
	Nine Months Ended September 30,
	2025		2024		$ Change		% Change
Revenue
Revenue before reimbursements (net revenue)	$ 923,663		$ 822,382		$ 101,281		12.3 %
Reimbursements	13,583		12,408		1,175		9.5 %
Total revenue	937,246		834,790		102,456		12.3 %
Operating expenses
Salaries and benefits	616,514		535,330		81,184		15.2 %
General and administrative expenses	125,386		127,556		(2,170)		(1.7) %
Cost of services	102,297		88,158		14,139		16.0 %
Research and development	18,847		17,002		1,845		10.9 %
Impairment charges	-		16,224		(16,224)		(100.0) %
Restructuring charges	-		6,939		(6,939)		(100.0) %
Reimbursed expenses	13,583		12,408		1,175		9.5 %
Total operating expenses	876,627		803,617		73,010		9.1 %
Operating income	60,619		31,173		29,446		94.5 %
Non-operating income
Interest, net	10,030		9,268
Other, net	4,594		3,013
Net non-operating income	14,624		12,281
Income before income taxes	75,243		43,454
Provision for income taxes	23,218		19,750
Net income	52,025		23,704
Other comprehensive income, net of tax	8,760		811
Comprehensive income	$ 60,785		$ 24,515
Weighted-average common shares outstanding
Basic	20,617		20,254
Diluted	21,377		21,144
Earnings per common share
Basic	$ 2.52		$ 1.17
Diluted	$ 2.43		$ 1.12
Salaries and benefits as a % of net revenue	66.7 %		65.1 %
General and administrative expenses as a % of net revenue	13.6 %		15.5 %
Cost of services as a % of net revenue	11.1 %		10.7 %
Research and development as a % of net revenue	2.0 %		2.1 %
Operating margin	6.6 %		3.8 %

Heidrick & Struggles International, Inc. Segment Information (In thousands) (Unaudited)
	Nine Months Ended September 30,
	2025		2024		$ Change		% Change		2025 Margin 1		2024 Margin 1
Revenue
Executive Search
Americas	$ 467,082		$ 418,302		$ 48,780		11.7 %
Europe	148,769		124,706		24,063		19.3 %
Asia Pacific	74,796		72,829		1,967		2.7 %
Total Executive Search	690,647		615,837		74,810		12.1 %
On-Demand Talent	141,340		125,983		15,357		12.2 %
Heidrick Consulting	91,676		80,562		11,114		13.8 %
Revenue before reimbursements (net revenue)	923,663		822,382		101,281		12.3 %
Reimbursements	13,583		12,408		1,175		9.5 %
Total revenue	$ 937,246		$ 834,790		$ 102,456		12.3 %
Adjusted EBITDA
Executive Search
Americas	$ 139,770		$ 130,448		$ 9,322		7.1 %		29.9 %		31.2 %
Europe	17,008		11,215		5,793		51.7 %		11.4 %		9.0 %
Asia Pacific	7,302		10,182		(2,880)		(28.3) %		9.8 %		14.0 %
Total Executive Search	164,080		151,845		12,235		8.1 %		23.8 %		24.7 %
On-Demand Talent	4,265		(787)		5,052		641.9 %		3.0 %		(0.6) %
Heidrick Consulting	(3,405)		(4,447)		1,042		23.4 %		(3.7) %		(5.5) %
Total segments	164,940		146,611		18,329		12.5 %		17.9 %		17.8 %
Research and Development	(13,877)		(14,312)		435		3.0 %		(1.5) %		(1.7) %
Global Operations Support	(53,845)		(47,205)		(6,640)		(14.1) %		(5.8) %		(5.7) %
Total Adjusted EBITDA	$ 97,218		$ 85,094		$ 12,124		14.2 %		10.5 %		10.3 %

¹Margin based on revenue before reimbursements (net revenue).

Heidrick & Struggles International, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)
	September 30, 2025		December 31, 2024
Current assets
Cash and cash equivalents	$ 454,640		$ 515,627
Marketable securities	73,442		47,896
Accounts receivable, net	204,085		134,331
Prepaid expenses	31,553		28,718
Other current assets	49,716		39,935
Income taxes recoverable	10,200		6,470
Total current assets	823,636		772,977
Non-current assets
Property and equipment, net	55,513		51,685
Operating lease right-of-use assets	79,189		83,518
Assets designated for retirement and pension plans	11,310		9,976
Investments	72,537		58,290
Other non-current assets	26,262		25,500
Goodwill	142,464		137,861
Other intangible assets, net	8,949		12,483
Deferred income taxes	44,402		41,898
Total non-current assets	440,626		421,211
Total assets	$ 1,264,262		$ 1,194,188
Current liabilities
Accounts payable	$ 20,281		$ 25,088
Accrued salaries and benefits	366,127		353,531
Deferred revenue	56,110		51,085
Operating lease liabilities	18,182		17,653
Other current liabilities	67,450		21,369
Income taxes payable	10,825		14,287
Total current liabilities	538,975		483,013
Non-current liabilities
Accrued salaries and benefits	38,945		58,547
Retirement and pension plans	88,193		72,138
Operating lease liabilities	83,100		83,152
Other non-current liabilities	4,380		42,905
Deferred income taxes	1,449		1,616
Total non-current liabilities	216,067		258,358
Total liabilities	755,042		741,371
Stockholders' equity	509,220		452,817
Total liabilities and stockholders' equity	$ 1,264,262		$ 1,194,188

Heidrick & Struggles International, Inc. Reconciliation of Net Income to Adjusted EBITDA (Non-GAAP) (In thousands) (Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenue before reimbursements (net revenue)	$ 322,837		$ 278,559		$ 923,663		$ 822,382
Net income	17,646		14,829		52,025		23,704
Interest, net	(3,436)		(2,570)		(10,030)		(9,268)
Other, net	(3,884)		555		(4,594)		(3,013)
Provision for income taxes	8,835		6,268		23,218		19,750
Operating income	19,161		19,082		60,619		31,173
Adjustments
Depreciation	3,760		2,997		10,367		7,480
Intangible amortization	1,623		1,953		4,878		6,170
Earnout accretion	517		478		1,534		1,413
Earnout fair value adjustments	-		-		(2,315)		1,211
Acquisition contingent compensation	2,627		2,947		7,014		8,220
Deferred compensation plan	3,895		2,958		8,735		6,264
Reorganization costs	911		-		4,636		-
Transaction fees	1,750		-		1,750		-
Impairment charges	-		-		-		16,224
Restructuring charges	-		-		-		6,939
Total adjustments	15,083		11,333		36,599		53,921
Adjusted EBITDA	$ 34,244		$ 30,415		$ 97,218		$ 85,094
Adjusted EBITDA margin	10.6 %		10.9 %		10.5 %		10.3 %

SOURCE Heidrick & Struggles