Heidrick & Struggles Delivers 14% Revenue Growth in Q2, Driving Strong Profitability

Q2 Revenue Exceeds High End of Outlook All Business Segments Contribute to Consolidated Revenue Growth Second Quarter 2025 Financial Highlights: Net revenue of $317.2 million increased 13.9% year over year Adjusted EBITDA was $33.9 million with adjusted EBITDA margin of 10.7% Adjusted net income was $18.1 million with adjusted diluted earnings per share of $0.85 Q3 2025 revenue outlook between $295 million and $315 million versus $278.6 million in year-ago period The Board of Directors declared a $0.15 per share cash dividend , /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 second quarter ended June 30, 2025. "We had a strong first half in 2025 highlighted by second quarter results that exceeded the high end of our outlook," said Tom Monahan, CEO of Heidrick & Struggles. "While the macroeconomic environment remains uncertain, our teams are focused on staying close to clients, helping them navigate complexity, and maintaining our position as the most trusted advisor to the C-Suite. As we enter the second half of the year, we remain laser focused on growing differentiated, deep and durable client relationships by meeting evolving client needs. We have proven that by focusing on what we can control — investing in and growing our bench of world-class professionals to deliver exceptional impact for our clients — we can create value for our shareholders." Selected Consolidated Results (Dollars in millions, except per share amounts, and average revenue per executive search in thousands) Three Months Ended June 30, 2025 2024 Revenue before reimbursements (net revenue) $ 317.2 $ 278.6 Adjusted results (a): Adjusted EBITDA $ 33.9 $ 28.8 Adjusted EBITDA margin 10.7 % 10.3 % Adjusted net income $ 18.1 $ 14.1 Adjusted diluted earnings per share $ 0.85 $ 0.67 Selected Executive Search Data Revenue before reimbursements (net revenue) $ 238.2 $ 210.0 Ending number of consultants 420 415 Annualized consultant productivity $ 2.3 $ 2.0 Average revenue per executive search $ 162 $ 151 Confirmations (% increase/decrease) 5.2 % (1.6) % Selected On-Demand Talent Data Revenue before reimbursements (net revenue) $ 47.9 $ 41.9 Selected Heidrick Consulting Data Revenue before reimbursements (net revenue) $ 31.2 $ 26.8 Ending number of consultants 90 85 (a) Non-GAAP financial measures. See Non-GAAP Financial Measures, Reconciliations of Net Income (Loss) and Adjusted Net Income, and Reconciliations of Operating Income (Loss) to Adjusted EBITDA at the end of this press release for more information. 2025 Second Quarter Results Consolidated net revenue increased, 13.9%, or $38.6 million, to $317.2 million in the 2025 second quarter compared to consolidated net revenue of $278.6 million in the 2024 second quarter (up 12.4%, or $34.5 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 second quarter net income was $21.1 million and diluted earnings per share was $0.99 which included acquisition-related earnout and contingent compensation fair value adjustments of $4.4 million related to the On-Demand Talent and Heidrick Consulting segments. Excluding these adjustments, 2025 second quarter adjusted net income was $18.1 million compared to adjusted net income of $14.1 million in the 2024 second quarter, reflecting goodwill impairment, restructuring charges and earnout and contingent compensation fair value adjustments. 2025 second quarter adjusted diluted earnings per share was $0.85 compared to $0.67 in the 2024 second quarter. Adjusted EBITDA increased $5.0 million to $33.9 million in the 2025 second quarter compared to $28.8 million in the 2024 second quarter, and 2025 second quarter adjusted EBITDA margin expanded 40 basis points to 10.7% compared to 10.3% in the 2024 second quarter. Executive Search net revenue was $238.2 million in the 2025 second quarter compared to net revenue of $210.0 million in the 2024 second quarter, an increase of $28.2 million, or 13.4% (up $26.1 million, or 12.4% on a constant currency basis). The higher revenue versus the year-ago period was driven by increases in all regions including 8.9% in the Americas (up 9.3% on a constant currency basis), 30.9% in Europe (up 24.1% on a constant currency basis), and 12.0% in Asia Pacific (up 11.8% on a constant currency basis) when compared to the 2024 second quarter. Adjusted EBITDA increased $1.9 million to $54.6 million in the 2025 second quarter compared to $52.7 million in the 2024 second quarter, and 2025 second quarter adjusted EBITDA margin was 22.9% compared to 25.1% in the 2024 second quarter. On-Demand Talent net revenue increased $6.0 million, or 14.3%, to $47.9 million in the 2025 second quarter compared to net revenue of $41.9 million in the 2024 second quarter (up $4.7 million, or 11.3% on a constant currency basis). Adjusted EBITDA was $1.0 million in the 2025 second quarter compared to a loss of $1.6 million in the 2024 second quarter, and Adjusted EBITDA margin was 2.1% compared to (3.9)% in the 2024 second quarter. Heidrick Consulting net revenue increased $4.4 million, or 16.6%, to $31.2 million in the 2025 second quarter compared to net revenue of $26.8 million in the 2024 second quarter (up $3.7 million, or 13.8% on a constant currency basis). Adjusted EBITDA was $0.6 million in the 2025 second quarter compared to a loss of $1.4 million in the 2024 second quarter, and Adjusted EBITDA margin grew to 1.8% compared to (5.2)% in the 2024 second quarter. Dividend The Board of Directors declared a 2025 third quarter cash dividend of $0.15 per share payable on August 28, 2025, to shareholders of record at the close of business on August 14, 2025. 2025 Third Quarter Outlook The Company expects 2025 third quarter consolidated net revenue between $295 million and $315 million, which may be impacted by external factors, such as the foreign exchange and interest rate environments, foreign conflicts, inflation and macroeconomic constraints on pricing actions. In addition, this outlook is based on the average currency rates in June 2025 and reflects, among other factors, management's assumptions for the anticipated volume of new Executive Search confirmations, On-Demand Talent projects, and Heidrick Consulting assignments, consultant productivity, and consultant retention along with the current backlog. Quarterly Webcast and Conference Call Heidrick & Struggles will host a conference call to review its second quarter results today, August 4, 2025, at 5:00 pm Eastern Time. Participants may access the Company's call and supporting slides through its website at www.heidrick.com or by dialing (800) 715 9871 or 646 307-1963, conference ID #4805686. For those unable to participate on the live call, a webcast and copy of the slides will be archived at www.heidrick.com and available for up to 30 days following the investor call. 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 net income, adjusted diluted earnings per share, adjusted EBITDA, and adjusted EBITDA margin, 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 net income and adjusted diluted earnings per share are net income and diluted earnings per share excluding goodwill impairment, restructuring charges and earnout and acquisition contingent compensation fair value adjustments, net of tax. 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, 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; and the fact that we have anti-takeover provisions that make an acquisition of us difficult and expensive. 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. 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 (Loss) (In thousands, except per share amounts) (Unaudited) Three Months Ended June 30, 2025 2024 $ Change % Change Revenue Revenue before reimbursements (net revenue) $ 317,248 $ 278,626 $ 38,622 13.9 % Reimbursements 4,660 4,251 409 9.6 % Total revenue 321,908 282,877 39,031 13.8 % Operating expenses Salaries and benefits 209,203 177,892 31,311 17.6 % General and administrative expenses 42,184 46,453 (4,269) (9.2) % Cost of services 34,594 29,696 4,898 16.5 % Research and development 6,037 5,605 432 7.7 % Impairment charges — 16,224 (16,224) (100.0) % Restructuring charges — 6,939 (6,939) (100.0) % Reimbursed expenses 4,660 4,251 409 9.6 % Total operating expenses 296,678 287,060 9,618 3.4 % Operating income (loss) 25,230 (4,183) 29,413 NM Non-operating income Interest, net 2,639 2,612 Other, net 3,276 997 Net non-operating income 5,915 3,609 Income (loss) before income taxes 31,145 (574) Provision for income taxes 10,072 4,583 Net income (loss) 21,073 (5,157) Other comprehensive income (loss), net of tax 6,519 (2,094) Comprehensive income (loss) $ 27,592 $ (7,251) Weighted-average common shares outstanding Basic 20,649 20,259 Diluted 21,215 20,259 Earnings (loss) per common share Basic $ 1.02 $ (0.25) Diluted $ 0.99 $ (0.25) Salaries and benefits as a % of net revenue 65.9 % 63.8 % General and administrative expenses as a % of net revenue 13.3 % 16.7 % Cost of services as a % of net revenue 10.9 % 10.7 % Research and development as a % of net revenue 1.9 % 2.0 % Operating margin 8.0 % (1.5) % Heidrick & Struggles International, Inc. Segment Information (In thousands) (Unaudited) Three Months Ended June 30, 2025 2024 $ Change % Change 2025 Margin1 2024 Margin1 Revenue Executive Search Americas $ 160,170 $ 147,078 $ 13,092 8.9 % Europe 52,451 40,082 12,369 30.9 % Asia Pacific 25,553 22,807 2,746 12.0 % Total Executive Search 238,174 209,967 28,207 13.4 % On-Demand Talent 47,866 41,895 5,971 14.3 % Heidrick Consulting 31,208 26,764 4,444 16.6 % Revenue before reimbursements (net revenue) 317,248 278,626 38,622 13.9 % Reimbursements 4,660 4,251 409 9.6 % Total revenue $ 321,908 $ 282,877 $ 39,031 13.8 % Adjusted EBITDA Executive Search Americas $ 46,655 $ 48,112 $ (1,457) (3.0) % 29.1 % 32.7 % Europe 5,388 2,840 2,548 89.7 % 10.3 % 7.1 % Asia Pacific 2,507 1,740 767 44.1 % 9.8 % 7.6 % Total Executive Search 54,550 52,692 1,858 3.5 % 22.9 % 25.1 % On-Demand Talent 1,028 (1,629) 2,657 163.1 % 2.1 % (3.9) % Heidrick Consulting 555 (1,395) 1,950 139.8 % 1.8 % (5.2) % Total segments 56,133 49,668 6,465 13.0 % 17.7 % 17.8 % Research and Development (4,638) (4,781) 143 3.0 % (1.5) % (1.7) % Global Operations Support (17,643) (16,076) (1,567) (9.7) % (5.6) % (5.8) % Total Adjusted EBITDA $ 33,852 $ 28,811 $ 5,041 17.5 % 10.7 % 10.3 % 1 Margin based on revenue before reimbursements (net revenue). Heidrick & Struggles International, Inc. Consolidated Statements of Comprehensive Income (In thousands, except per share amounts) (Unaudited) Six Months Ended June 30, 2025 2024 $ Change % Change Revenue Revenue before reimbursements (net revenue) $ 600,826 $ 543,823 $ 57,003 10.5 % Reimbursements 8,524 8,152 372 4.6 % Total revenue 609,350 551,975 57,375 10.4 % Operating expenses Salaries and benefits 398,678 352,305 46,373 13.2 % General and administrative expenses 83,608 87,816 (4,208) (4.8) % Cost of services 64,653 57,128 7,525 13.2 % Research and development 12,429 11,320 1,109 9.8 % Impairment charges — 16,224 (16,224) (100.0) % Restructuring charges — 6,939 (6,939) (100.0) % Reimbursed expenses 8,524 8,152 372 4.6 % Total operating expenses 567,892 539,884 28,008 5.2 % Operating income 41,458 12,091 29,367 242.9 % Non-operating income Interest, net 6,594 6,698 Other, net 710 3,568 Net non-operating income 7,304 10,266 Income before income taxes 48,762 22,357 Provision for income taxes 14,383 13,482 Net income 34,379 8,875 Other comprehensive income (loss), net of tax 9,021 (6,185) Comprehensive income $ 43,400 $ 2,690 Weighted-average common shares outstanding Basic 20,557 20,202 Diluted 21,333 21,061 Earnings per common share Basic $ 1.67 $ 0.44 Diluted $ 1.61 $ 0.42 Salaries and benefits as a % of net revenue 66.4 % 64.8 % General and administrative expenses as a % of net revenue 13.9 % 16.1 % Cost of services as a % of net revenue 10.8 % 10.5 % Research and development as a % of net revenue 2.1 % 2.1 % Operating margin 6.9 % 2.2 % Heidrick & Struggles International, Inc. Segment Information (In thousands) (Unaudited) Six Months Ended June 30, 2025 2024 $ Change % Change 2025 Margin1 2024 Margin1 Revenue Executive Search Americas $ 304,574 $ 283,757 $ 20,817 7.3 % Europe 97,842 81,563 16,279 20.0 % Asia Pacific 49,148 46,128 3,020 6.5 % Total Executive Search 451,564 411,448 40,116 9.7 % On-Demand Talent 90,430 79,752 10,678 13.4 % Heidrick Consulting 58,832 52,623 6,209 11.8 % Revenue before reimbursements (net revenue) 600,826 543,823 57,003 10.5 % Reimbursements 8,524 8,152 372 4.6 % Total revenue $ 609,350 $ 551,975 $ 57,375 10.4 % Adjusted EBITDA Executive Search Americas $ 90,877 $ 89,983 $ 894 1.0 % 29.8 % 31.7 % Europe 10,430 6,193 4,237 68.4 % 10.7 % 7.6 % Asia Pacific 5,542 4,935 607 12.3 % 11.3 % 10.7 % Total Executive Search 106,849 101,111 5,738 5.7 % 23.7 % 24.6 % On-Demand Talent 1,428 (2,550) 3,978 156.0 % 1.6 % (3.2) % Heidrick Consulting (1,541) (3,422) 1,881 55.0 % (2.6) % (6.5) % Total Segments 106,736 95,139 11,597 12.2 % 17.8 % 17.5 % Research and Development (9,262) (9,706) 444 4.6 % (1.5) % (1.8) % Global Operations Support (34,500) (30,754) (3,746) (12.2) % (5.7) % (5.7) % Total Adjusted EBITDA $ 62,974 $ 54,679 $ 8,295 15.2 % 10.5 % 10.1 % 1 Margin based on revenue before reimbursements (net revenue). Heidrick & Struggles International, Inc. Reconciliation of Net Income (Loss) and Adjusted Net Income (Non-GAAP) (In thousands, except per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ 21,073 $ (5,157) $ 34,379 $ 8,875 Adjustments Acquisition related earnout and contingent compensation fair value adjustments, net of tax (2,980) 749 (2,095) 749 Impairment charges, net of tax — 14,190 — 14,190 Restructuring charges, net of tax — 4,291 4,291 Total adjustments (2,980) 19,230 (2,095) 19,230 Adjusted net income $ 18,093 $ 14,073 $ 32,284 $ 28,105 Weighted-average common shares outstanding Basic 20,649 20,259 20,557 20,202 Diluted 21,215 20,865 21,333 21,061 Earnings (loss) per common share Basic $ 1.02 $ (0.25) $ 1.67 $ 0.44 Diluted $ 0.99 $ (0.25) $ 1.61 $ 0.42 Adjusted earnings per common share Basic $ 0.88 $ 0.69 $ 1.57 $ 1.39 Diluted $ 0.85 $ 0.67 $ 1.51 $ 1.33 Heidrick & Struggles International, Inc. Consolidated Balance Sheets (In thousands) (Unaudited) June 30,2025 December 31,2024 Current assets Cash and cash equivalents $ 211,172 $ 515,627 Marketable securities 188,355 47,896 Accounts receivable, net 210,577 134,331 Prepaid expenses 30,436 28,718 Other current assets 48,200 39,935 Income taxes recoverable 10,868 6,470 Total current assets 699,608 772,977 Non-current assets Property and equipment, net 54,687 51,685 Operating lease right-of-use assets 82,282 83,518 Assets designated for retirement and pension plans 11,361 9,976 Investments 69,160 58,290 Other non-current assets 26,395 25,500 Goodwill 142,635 137,861 Other intangible assets, net 10,539 12,483 Deferred income taxes 44,378 41,898 Total non-current assets 441,437 421,211 Total assets $ 1,141,045 $ 1,194,188 Current liabilities Accounts payable $ 25,834 $ 25,088 Accrued salaries and benefits 251,668 353,531 Deferred revenue 58,859 51,085 Operating lease liabilities 18,225 17,653 Other current liabilities 65,898 21,369 Income taxes payable 9,402 14,287 Total current liabilities 429,886 483,013 Non-current liabilities Accrued salaries and benefits 40,789 58,547 Retirement and pension plans 84,999 72,138 Operating lease liabilities 86,914 83,152 Other non-current liabilities 4,527 42,905 Deferred income taxes 1,439 1,616 Total non-current liabilities 218,668 258,358 Total liabilities 648,554 741,371 Stockholders' equity 492,491 452,817 Total liabilities and stockholders' equity $ 1,141,045 $ 1,194,188 Heidrick & Struggles International, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended June 30, 2025 2024 Cash flows - operating activities Net income (loss) $ 21,073 $ (5,157) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 5,015 3,910 Deferred income taxes 509 (2,246) Stock-based compensation expense 3,987 3,465 Accretion expense related to earnout payments 536 469 Gain on marketable securities (1,702) (441) Loss on disposal of property and equipment 19 247 Impairment charges — 16,224 Changes in assets and liabilities, net of effects of acquisition: Accounts receivable (23,178) (14,717) Accounts payable 980 (255) Accrued expenses 72,256 57,843 Restructuring accrual (461) 4,386 Deferred revenue 1,628 (2,624) Income taxes recoverable and payable, net (11,471) 645 Retirement and pension plan assets and liabilities (702) 347 Prepaid expenses 4,097 3,339 Other assets and liabilities, net (3,976) (2,913) Net cash provided by in operating activities 68,610 62,522 Cash flows - investing activities Capital expenditures (3,906) (10,365) Purchases of marketable securities and investments (177,487) (109,862) Proceeds from sales of marketable securities and investments 104,106 289 Net cash used in investing activities (77,287) (119,938) Cash flows - financing activities Cash dividends paid (3,251) (3,182) Payment of employee tax withholdings on equity transactions (887) (885) Net cash used in financing activities (4,138) (4,067) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 12,119 (1,426) Net decrease in cash, cash equivalents and restricted cash (696) (62,909) Cash, cash equivalents and restricted cash at beginning of period 212,138 252,831 Cash, cash equivalents and restricted cash at end of period $ 211,442 $ 189,922 Heidrick & Struggles International, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2025 2024 Cash flows - operating activities Net income $ 34,379 $ 8,875 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 9,862 8,700 Deferred income taxes (1,374) (2,333) Stock-based compensation expense 6,497 6,109 Accretion expense related to earnout payments 1,017 935 Gain on marketable securities (2,650) (980) Loss on disposal of property and equipment 26 261 Impairment charges — 16,224 Changes in assets and liabilities: Accounts receivable (68,787) (55,842) Accounts payable (1,530) (2,324) Accrued expenses (127,064) (124,747) Restructuring accrual (1,425) 4,386 Deferred revenue 5,975 (673) Income taxes recoverable and payable, net (9,625) 5,368 Retirement and pension plan assets and liabilities 6,030 5,800 Prepaid expenses (576) (4,652) Other assets and liabilities, net (14,369) (6,009) Net cash used in operating activities (163,614) (140,902) Cash flows - investing activities Capital expenditures (6,640) (16,538) Purchases of marketable securities and investments (296,206) (115,262) Proceeds from sales of marketable securities and investments 152,431 66,574 Net cash used in investing activities (150,415) (65,226) Cash flows - financing activities Debt issuance costs (360) — Cash dividends paid (6,447) (6,398) Payment of employee tax withholdings on equity transactions (3,776) (3,747) Net cash used in financing activities (10,583) (10,145) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 20,241 (6,423) Net decrease in cash, cash equivalents and restricted cash (304,371) (222,696) Cash, cash equivalents and restricted cash at beginning of period 515,813 412,618 Cash, cash equivalents and restricted cash at end of period $ 211,442 $ 189,922 Heidrick & Struggles International, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (Non-GAAP) (In thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue before reimbursements (net revenue) $ 317,248 $ 278,626 $ 600,826 $ 543,823 Net income (loss) 21,073 (5,157) 34,379 8,875 Interest, net (2,639) (2,612) (6,594) (6,698) Other, net (3,276) (997) (710) (3,568) Provision for income taxes 10,072 4,583 14,383 13,482 Operating income (loss) 25,230 (4,183) 41,458 12,091 Adjustments Depreciation 3,428 1,990 6,607 4,483 Intangible amortization 1,587 1,920 3,255 4,217 Earnout accretion 536 469 1,017 935 Earnout fair value adjustments (3,257) 1,211 (2,315) 1,211 Acquisition contingent consideration 1,566 3,285 4,387 5,273 Deferred compensation plan 5,198 956 4,840 3,306 Reorganization costs (436) — 3,725 — Impairment charges — 16,224 — 16,224 Restructuring charges — 6,939 — 6,939 Total adjustments 8,622 32,994 21,516 42,588 Adjusted EBITDA $ 33,852 $ 28,811 $ 62,974 $ 54,679 Adjusted EBITDA margin 10.7 % 10.3 % 10.5 % 10.1 % Heidrick & Struggles International, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Line of Business (Non-GAAP) (In thousands) (Unaudited) Three Months Ended June 30, 2025 Executive Search On-Demand Talent Heidrick Consulting Research & Development Global Operations Support Total Revenue before reimbursements (net revenue) $ 238,174 $ 47,866 $ 31,208 $ — $ — $ 317,248 Operating income (loss)1 48,200 3,198 (1,557) (6,037) (18,574) 25,230 Adjustments Depreciation 1,329 196 233 1,501 169 3,428 Intangible amortization 11 1,279 297 — — 1,587 Earnout accretion — 479 57 — — 536 Earnout fair value adjustments — (3,419) 162 — — (3,257) Acquisition contingent compensation — 293 1,273 — — 1,566 Deferred compensation plan 5,010 2 90 84 12 5,198 Reorganization costs — (1,000) — (186) 750 (436) Total adjustments 6,350 (2,170) 2,112 1,399 931 8,622 Adjusted EBITDA $ 54,550 $ 1,028 $ 555 $ (4,638) $ (17,643) $ 33,852 Adjusted EBITDA margin 22.9 % 2.1 % 1.8 % (1.5) % (5.6) % 10.7 % Three Months Ended June 30, 2024 Executive Search On-Demand Talent Heidrick Consulting Research & Development Global Operations Support Total Revenue before reimbursements (net revenue) $ 209,967 $ 41,895 $ 26,764 $ — $ — $ 278,626 Operating income (loss)1 46,821 (21,695) (6,530) (5,605) (17,174) (4,183) Adjustments Depreciation 863 117 82 809 119 1,990 Intangible amortization 20 1,533 367 — — 1,920 Earnout accretion — 409 60 — — 469 Earnout fair value adjustments — 1,125 86 — — 1,211 Acquisition contingent compensation 295 1,835 1,155 — — 3,285 Deferred compensation plan 920 — 18 15 3 956 Impairment charges 1,463 14,761 — — — 16,224 Restructuring charges 2,310 286 3,367 — 976 6,939 Total adjustments 5,871 20,066 5,135 824 1,098 32,994 Adjusted EBITDA $ 52,692 $ (1,629) $ (1,395) $ (4,781) $ (16,076) $ 28,811 Adjusted EBITDA margin 25.1 % (3.9 %) (5.2 %) (1.7) % (5.8) % 10.3 % 1 The Company does not allocate interest income or expense, other income or expense, and the provision for income taxes to the Company's reportable operating segments. As such, the Company has concluded that operating income (loss) represents the most directly comparable measure of financial performance presented in accordance with U.S. GAAP for the reconciliation of Adjusted EBITDA in this presentation. Heidrick & Struggles International, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA (Non-GAAP) (In thousands) (Unaudited) Six Months Ended June 30, 2025 Executive Search On-Demand Talent Heidrick Consulting Research & Development Global Operations Support Total Revenue before reimbursements (net revenue) $ 451,564 $ 90,430 $ 58,832 $ — $ — $ 600,826 Operating income (loss)1 98,708 (2,436) (5,384) (12,429) (37,001) 41,458 Adjustments Depreciation 2,505 404 441 2,938 319 6,607 Intangible amortization 22 2,569 664 — — 3,255 Earnout accretion — 906 111 — — 1,017 Earnout fair value adjustments — (2,477) 162 — — (2,315) Acquisition contingent compensation — 2,210 2,177 — — 4,387 Deferred compensation plan 4,661 2 86 79 12 4,840 Reorganization costs 953 250 202 150 2,170 3,725 Total adjustments 8,141 3,864 3,843 3,167 2,501 21,516 Adjusted EBITDA $ 106,849 $ 1,428 $ (1,541) $ (9,262) $ (34,500) $ 62,974 Adjusted EBITDA margin 23.7 % 1.6 % (2.6 %) (1.5 %) (5.7) % 10.5 % Six Months Ended June 30, 2024 Executive Search On-Demand Talent Heidrick Consulting Research & Development Global Operations Support Total Revenue before reimbursements (net revenue) $ 411,448 $ 79,752 $ 52,623 $ — $ — $ 543,823 Operating income (loss)1 92,353 (26,544) (10,372) (11,320) (32,026) 12,091 Adjustments Depreciation 2,104 248 279 1,563 289 4,483 Intangible amortization 37 3,368 812 — — 4,217 Earnout accretion — 815 120 — — 935 Earnout fair value adjustments — 1,125 86 — — 1,211 Acquisition contingent compensation (335) 3,391 2,217 — — 5,273 Deferred compensation plan 3,179 — 69 51 7 3,306 Impairment charges 1,463 14,761 — — — 16,224 Restructuring charges 2,310 286 3,367 — 976 6,939 Total adjustments 8,758 23,994 6,950 1,614 1,272 42,588 Adjusted EBITDA $ 101,111 $ (2,550) $ (3,422) $ (9,706) $ (30,754) $ 54,679 Adjusted EBITDA margin 24.6 % (3.2 %) (6.5 %) (1.8 %) (5.7 %) 10.1 % 1 The Company does not allocate interest income or expense, other income or expense, and the provision for income taxes to the Company's reportable operating segments. As such, the Company has concluded that operating income (loss) represents the most directly comparable measure of financial performance presented in accordance with U.S. GAAP for the reconciliation of Adjusted EBITDA in this presentation. SOURCE Heidrick & Struggles WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Heidrick & Struggles Delivers 14% Revenue Growth in Q2, Driving Strong Profitability

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News