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 , /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 Margin1 2024Margin1 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 % 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) 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 2025Margin1 2024 Margin1 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 % 1 Margin 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

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

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