Heidrick & Struggles Delivers 7% Revenue Growth in Q1, Driving Strong Profitability

Q1 Revenue Exceeds High End of Outlook

All Business Segments Contribute to Consolidated Revenue Growth

First Quarter 2025 Financial Highlights:

    --  Net revenue of $283.6 million increased 6.9% year over year
    --  Adjusted EBITDA was $29.1 million with adjusted EBITDA margin of 10.3%
    --  Adjusted net income was $14.2 million with adjusted diluted earnings per
        share of $0.67
    --  Q2 2025 revenue outlook between $285 million and $305 million versus
        $278.6 million in year-ago period
    --  The Board of Directors declared a $0.15 per share cash dividend

CHICAGO, May 5, 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 first quarter ended March 31, 2025.

"Our first quarter results exceeded the high end of our outlook, a testament to our resilient business model, our team's intense focus, and the deep trust that clients place in Heidrick," said Tom Monahan, CEO of Heidrick & Struggles. "When navigating economic uncertainty, we remain committed to serving as a highly strategic advisor, helping organizations turn complexity into opportunity. In addition, our new leadership team is focused on sharpening execution and ensuring our professionals have the resources to deliver exceptional results.

While mindful of current macroeconomic conditions, we know that by staying close to our clients and enabling our exceptional professionals with new tools and solutions, we can continue to engineer differentiated, deep and durable client partnerships. We are confident in our ability to create lasting value for our clients, our people and our shareholders."



     
              Selected Consolidated Results



     (Dollars in millions, except per share amounts, and average revenue per executive search in thousands)




                                                                                                                      Three Months Ended

                                                                                                             
        
         March 31,


                                                                                                                 2025                 2024



     Revenue before reimbursements (net revenue)                                                              $283.6               $265.2





     
              Adjusted results (a):



     Adjusted EBITDA                                                                                           $29.1                $25.9



     Adjusted EBITDA margin                                                                                   10.3 %               9.8 %



     Adjusted net income                                                                                       $14.2                $14.0



     Adjusted diluted earnings per share                                                                       $0.67                $0.67





     
              Selected Executive Search Data



     Revenue before reimbursements (net revenue)                                                              $213.4               $201.5



     Ending number of consultants                                                                                427                  424



     Consultant productivity                                                                                    $2.0                 $1.9



     Average revenue per executive search                                                                       $137                 $136



     Confirmations (% increase/decrease)                                                                       5.3 %             (3.2) %





     
              Selected On-Demand Talent Data



     Revenue before reimbursements (net revenue)                                                               $42.6                $37.9





     
              Selected Heidrick Consulting Data



     Revenue before reimbursements (net revenue)                                                               $27.6                $25.9



     Ending number of consultants                                                                                 91                   95




     (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 First Quarter Results

Consolidated net revenue increased 6.9% to $283.6 million in the 2025 first quarter compared to consolidated net revenue of $265.2 million in the 2024 first quarter (up 8.1%, or $21.6M 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 first quarter net income was $13.3 million and diluted earnings per share was $0.62 which included an acquisition-related earnout and contingent compensation fair value adjustment of $1.3 million related to the On-Demand Talent segment. Excluding this charge, 2025 first quarter adjusted net income was $14.2 million compared to adjusted net income of $14.0 million in the 2024 first quarter. 2025 first quarter adjusted diluted earnings per share was $0.67, consistent with the prior year period.

Adjusted EBITDA increased $3.3 million to $29.1 million in the 2025 first quarter compared to $25.9 million in the 2024 first quarter, and 2025 first quarter adjusted EBITDA margin expanded 50 basis points to 10.3% compared to 9.8% in the 2024 first quarter.

Executive Search net revenue was $213.4 million in the 2025 first quarter compared to net revenue of $201.5 million in the 2024 first quarter, an increase of $11.9 million, or 5.9% (up 7.0% on a constant currency basis). The higher revenue versus the year-ago period was driven by increases in all regions including 5.7% in the Americas (up 6.3% on a constant currency basis), 9.4% in Europe (up 11.4% on a constant currency basis), and 1.2% in Asia Pacific (up 3.5% on a constant currency basis) when compared to the prior year first quarter.

Adjusted EBITDA increased $3.9 million to $52.3 million in the 2025 first quarter compared to $48.4 million in the 2024 first quarter, and 2025 first quarter adjusted EBITDA margin grew to 24.5% compared to 24.0% in the 2024 first quarter.

On-Demand Talent net revenue increased $4.7 million, or 12.4%, to $42.6 million in the 2025 first quarter compared to net revenue of $37.9 million in the 2024 first quarter (up $5.4 million, or 14.3% on a constant currency basis).

Adjusted EBITDA was $0.4 million in the 2025 first quarter compared to a loss of $0.9 million in the 2024 first quarter, and Adjusted EBITDA margin was 0.9% compared to (2.4)% in the 2024 first quarter.

Heidrick Consulting net revenue increased $1.8 million, or 6.8%, to $27.6 million in the 2025 first quarter compared to net revenue of $25.9 million in the 2024 first quarter (up $2.0 million, or 7.8% on a constant currency basis).

Adjusted EBITDA loss was $2.1 million in the 2025 first quarter compared to a loss of $2.0 million in the 2024 first quarter, and Adjusted EBITDA margin was (7.6)% compared to (7.8)% in the 2024 first quarter.

Dividend

The Board of Directors declared a 2025 first quarter cash dividend of $0.15 per share payable on May 29, 2025, to shareholders of record at the close of business on May 15, 2025.

2025 Second Quarter Outlook

The Company expects 2025 second quarter consolidated net revenue between $285 million and $305 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 March 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 first quarter results today, May 5, 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 effective tax rate, 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 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 effective tax rate is effective tax rate 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 second 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
Vance.Edelson@icrinc.com

Media:
Bianca Wilson, Global Director, Public Relations
bwilson@heidrick.com


                                                          
            
            Heidrick & Struggles International, Inc.


                                                      
              
          Consolidated Statements of Comprehensive Income


                                                                
        (In thousands, except per share amounts)


                                                                         
              (Unaudited)




                                                                                                                              Three Months Ended

                                                                                                                              March 31,


                                                                                                                         2025     2024         
     
     $ Change % Change



     
                Revenue



     Revenue before reimbursements (net revenue)                                                                    $283,578 $265,197              $18,381     6.9 %



     Reimbursements                                                                                                    3,864    3,901                 (37)  (0.9) %



     Total revenue                                                                                                   287,442  269,098               18,344     6.8 %





     
                Operating expenses



     Salaries and benefits                                                                                           189,475  174,413               15,062     8.6 %



     General and administrative expenses                                                                              41,424   41,363                   61     0.1 %



     Cost of services                                                                                                 30,059   27,432                2,627     9.6 %



     Research and development                                                                                          6,392    5,715                  677    11.8 %



     Reimbursed expenses                                                                                               3,864    3,901                 (37)  (0.9) %



     Total operating expenses                                                                                        271,214  252,824               18,390     7.3 %





     
                Operating income                                                                                    16,228   16,274                 (46)  (0.3) %





     
                Non-operating income (loss)



     Interest, net                                                                                                     3,955    4,086



     Other, net                                                                                                      (2,566)   2,571



     Net non-operating income                                                                                          1,389    6,657





     
                Income before income taxes                                                                          17,617   22,931





     Provision for income taxes                                                                                        4,311    8,899





     
                Net income                                                                                          13,306   14,032





     Other comprehensive income (loss), net of tax                                                                     2,502  (4,091)





     
                Comprehensive income                                                                               $15,808   $9,941





     
                Weighted-average common shares outstanding



     Basic                                                                                                            20,464   20,144



     Diluted                                                                                                          21,318   21,040





     
                Earnings (loss) per common share



     Basic                                                                                                             $0.65    $0.70



     Diluted                                                                                                           $0.62    $0.67





     Salaries and benefits as a % of net revenue                                                                      66.8 %  65.8 %



     General and administrative expenses as a % of net revenue                                                        14.6 %  15.6 %



     Cost of services as a % of net revenue                                                                           10.6 %  10.3 %



     Research and development as a % of net revenue                                                                    2.3 %   2.2 %



     Operating margin                                                                                                  5.7 %   6.1 %


                                                
     
         Heidrick & Struggles International, Inc.


                                                  
       
                Segment Information


                                                    
              (In thousands)


                                                     
              (Unaudited)




                                                                                                    
            
       Three Months Ended March 31,


                                                                                              2025      2024   
              
                $        % Change

                                                                                                                              Change



     
                Revenue



     Executive Search



     Americas                                                                            $144,404  $136,679                      $7,725            5.7 %



     Europe                                                                                45,391    41,481                       3,910            9.4 %



     Asia Pacific                                                                          23,595    23,321                         274            1.2 %



     Total Executive Search                                                               213,390   201,481                      11,909            5.9 %



     On-Demand Talent                                                                      42,564    37,857                       4,707           12.4 %



     Heidrick Consulting                                                                   27,624    25,859                       1,765            6.8 %



     Revenue before reimbursements (net revenue)                                          283,578   265,197                      18,381            6.9 %



     Reimbursements                                                                         3,864     3,901                        (37)         (0.9) %



     Total revenue                                                                       $287,442  $269,098                     $18,344            6.8 %







     
                Adjusted EBITDA



     Executive Search



     Americas                                                                             $44,222   $41,871                      $2,351            5.6 %



     Europe                                                                                 5,042     3,353                       1,689           50.4 %



     Asia Pacific                                                                           3,035     3,195                       (160)         (5.0) %



     Total Executive Search                                                                52,299    48,419                       3,880            8.0 %



     On-Demand Talent                                                                         400     (921)                      1,321          143.4 %



     Heidrick Consulting                                                                  (2,096)  (2,027)                       (69)         (3.4) %



     Total segments                                                                        50,603    45,471                       5,132           11.3 %



     Research and Development                                                             (4,624)  (4,925)                        301            6.1 %



     Global Operations Support                                                           (16,857) (14,678)                    (2,179)        (14.8) %



     Total Adjusted EBITDA                                                                $29,122   $25,868                      $3,254           12.6 %




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


                                                                   
              
                Heidrick & Struggles International, Inc.


                                                       
              
                Reconciliation of Net Income and Adjusted Net Income (Non-GAAP)


                                                                         
              (In thousands, except per share amounts)


                                                                                        
              (Unaudited)




                                                                                                                                                       Three Months Ended

                                                                                                                                                       March 31,


                                                                                                                                                  2025       2024



     
                Net income (loss)                                                                                                           $13,306    $14,032





     
                Adjustments



     Acquisition related earnout and contingent compensation fair value adjustments, net of tax(1)                                                885



     Total adjustments                                                                                                                            885





     
                Adjusted net income                                                                                                         $14,191    $14,032





     
                Weighted-average common shares outstanding



     Basic                                                                                                                                     20,464     20,144



     Diluted                                                                                                                                   21,318     21,040





     
                Earnings (loss) per common share



     Basic                                                                                                                                      $0.65      $0.70



     Diluted                                                                                                                                    $0.62      $0.67





     
                Adjusted earnings per common share



     Basic                                                                                                                                      $0.69      $0.70



     Diluted                                                                                                                                    $0.67      $0.67




     
     1 The Company recorded a fair value adjustment to increase the On-Demand Talent earnout and contingent compensation accrual by $1.3 million for the
           three months ended March 31, 2025.


                                  
              
                Heidrick & Struggles International, Inc.


                                         
              
                Consolidated Balance Sheets


                                                      
              (In thousands)


                                                       
              (Unaudited)




                                                                                                    March 31, December 31,
                                                                                                         2025          2024





     
                Current assets



     Cash and cash equivalents                                                                      $211,944      $515,627



     Marketable securities                                                                           112,715        47,896



     Accounts receivable, net                                                                        182,136       134,331



     Prepaid expenses                                                                                 33,970        28,718



     Other current assets                                                                             47,421        39,935



     Income taxes recoverable                                                                          6,964         6,470



     Total current assets                                                                            595,150       772,977





     
                Non-current assets



     Property and equipment, net                                                                      51,938        51,685



     Operating lease right-of-use assets                                                              80,863        83,518



     Assets designated for retirement and pension plans                                               10,424         9,976



     Investments                                                                                      64,434        58,290



     Other non-current assets                                                                         26,113        25,500



     Goodwill                                                                                        139,447       137,861



     Other intangible assets, net                                                                     11,304        12,483



     Deferred income taxes                                                                            44,018        41,898



     Total non-current assets                                                                        428,541       421,211





     
                Total assets                                                                    $1,023,691    $1,194,188





     
                Current liabilities



     Accounts payable                                                                                $23,103       $25,088



     Accrued salaries and benefits                                                                   171,155       353,531



     Deferred revenue                                                                                 55,957        51,085



     Operating lease liabilities                                                                      17,652        17,653



     Other current liabilities                                                                        64,869        21,369



     Income taxes payable                                                                             16,804        14,287



     Total current liabilities                                                                       349,540       483,013





     
                Non-current liabilities



     Accrued salaries and benefits                                                                    41,826        58,547



     Retirement and pension plans                                                                     79,118        72,138



     Operating lease liabilities                                                                      82,436        83,152



     Other non-current liabilities                                                                     4,318        42,905



     Deferred income taxes                                                                             1,403         1,616



     Total non-current liabilities                                                                   209,101       258,358





     
                Total liabilities                                                                  558,641       741,371





     
                Stockholders' equity                                                               465,050       452,817





     
                Total liabilities and stockholders' equity                                      $1,023,691    $1,194,188


                                                        
              
                Heidrick & Struggles International, Inc.


                                                          
              
                Consolidated Statements of Cash Flows


                                                                            
              (In thousands)


                                                                             
              (Unaudited)




                                                                                                                                    Three Months Ended

                                                                                                                                    March 31,


                                                                                                                              2025       2024



     
                Cash flows - operating activities



     Net income                                                                                                           $13,306    $14,032



     Adjustments to reconcile net income to net cash provided by operating activities:



     Depreciation and amortization                                                                                          4,847      4,790



     Deferred income taxes                                                                                                (1,883)      (87)



     Stock-based compensation expense                                                                                       2,510      2,644



     Accretion expense related to earnout payments                                                                            481        466



     Gain on marketable securities                                                                                          (948)     (539)



     Loss on disposal of property and equipment                                                                                 7         14



     Changes in assets and liabilities, net of effects of acquisition:



     Accounts receivable                                                                                                 (45,609)  (41,125)



     Accounts payable                                                                                                     (2,510)   (2,069)



     Accrued expenses                                                                                                   (199,320) (182,590)



     Restructuring accrual                                                                                                  (964)



     Deferred revenue                                                                                                       4,347      1,951



     Income taxes recoverable and payable, net                                                                              1,846      4,723



     Retirement and pension plan assets and liabilities                                                                     6,732      5,453



     Prepaid expenses                                                                                                     (4,673)   (7,991)



     Other assets and liabilities, net                                                                                   (10,393)   (3,096)



     Net cash used in operating activities                                                                              (232,224) (203,424)





     
                Cash flows - investing activities



     Capital expenditures                                                                                                 (2,734)   (6,173)



     Purchases of marketable securities and investments                                                                 (118,719)   (5,400)



     Proceeds from sales of marketable securities and investments                                                          48,325     66,285



     Net cash provided by (used in) investing activities                                                                 (73,128)    54,712





     
                Cash flows - financing activities



     Debt issuance costs                                                                                                    (360)



     Cash dividends paid                                                                                                  (3,196)   (3,216)



     Payment of employee tax withholdings on equity transactions                                                          (2,889)   (2,862)



     Net cash used in financing activities                                                                                (6,445)   (6,078)





     Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash                                     8,122    (4,997)





     Net decrease in cash, cash equivalents and restricted cash                                                         (303,675) (159,787)



     Cash, cash equivalents and restricted cash at beginning of period                                                    515,813    412,618



     Cash, cash equivalents and restricted cash at end of period                                                         $212,138   $252,831


                        
              
                Heidrick & Struggles International, Inc.


               
              
                Reconciliation of Net Income to Adjusted EBITDA (Non-GAAP)


                                            
              (In thousands)


                                             
              (Unaudited)




                                                                                                           Three Months Ended

                                                                                                           March 31,


                                                                                                      2025      2024



     
                Revenue before reimbursements (net revenue)                                    $283,578  $265,197





     
                Net income                                                                       13,306    14,032



     Interest, net                                                                                (3,955)  (4,086)



     Other, net                                                                                     2,566   (2,571)



     Provision for income taxes                                                                     4,311     8,899



     
                Operating income                                                                 16,228    16,274





     
                Adjustments



     Depreciation                                                                                   3,179     2,493



     Intangible amortization                                                                        1,668     2,297



     Earnout accretion                                                                                481       466



     Earnout fair value adjustments                                                                   942



     Acquisition contingent consideration                                                           2,821     1,988



     Deferred compensation plan                                                                     (358)    2,350



     Reorganization costs                                                                           4,161



     Total adjustments                                                                             12,894     9,594





     
                Adjusted EBITDA                                                                 $29,122   $25,868



     
                Adjusted EBITDA margin                                                           10.3 %    9.8 %


                                                                     
              
                Heidrick & Struggles International, Inc.


                                                               
     
     Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Line of Business (Non-GAAP)


                                                                                        
              (In thousands)


                                                                                          
              (Unaudited)




                                                                                                                                              
              
                Three Months Ended March 31, 2025


                                                                                        Executive                                On-Demand                                Heidrick                                Research &                   Global      Total
                                                                              Search                                   Talent                                Consulting                               Development                 Operations
                                                                                                                                                                                                                                  Support





     
                Revenue before reimbursements (net revenue)                           $213,390                                   $42,564                                  $27,624                      
             $         -    
             $         -   $283,578





     
                Operating income (loss)(1)                                              50,508                                   (5,634)                                 (3,827)                                   (6,392)                 (18,427)     16,228





     
                Adjustments



     Depreciation                                                                          1,176                                       208                                      208                                      1,437                       150       3,179



     Intangible amortization                                                                  11                                     1,290                                      367                                                                          1,668



     Earnout accretion                                                                         -                                      427                                       54                                                                            481



     Earnout fair value adjustments                                                            -                                      942                                                                                                                    942



     Acquisition contingent compensation                                                       -                                    1,917                                      904                                                                          2,821



     Deferred compensation plan                                                            (349)                                                                              (4)                                       (5)                               (358)



     Reorganization costs                                                                    953                                     1,250                                      202                                        336                     1,420       4,161



     Total adjustments                                                                     1,791                                     6,034                                    1,731                                      1,768                     1,570      12,894





     
                Adjusted EBITDA                                                        $52,299                                      $400                                 $(2,096)                                  $(4,624)                $(16,857)    $29,122



     
                Adjusted EBITDA margin                                                  24.5 %                                    0.9 %                                 (7.6) %                                   (1.6) %                  (5.9) %     10.3 %




                                                                                                                                              
              
                Three Months Ended March 31, 2024


                                                                                        Executive                                On-Demand                                Heidrick                                Research &                   Global      Total
                                                                              Search                                   Talent                                Consulting                               Development                 Operations
                                                                                                                                                                                                                                  Support





     
                Revenue before reimbursements (net revenue)                           $201,481                                   $37,857                                  $25,859                 
              $             - 
            $             -   $265,197





     
                Operating income (loss)(1)                                              45,532                                   (4,849)                                 (3,842)                                   (5,715)                 (14,852)     16,274





     
                Adjustments



     Depreciation                                                                          1,241                                       131                                      197                                        754                       170       2,493



     Intangible amortization                                                                  17                                     1,835                                      445                                                                          2,297



     Earnout accretion                                                                         -                                      406                                       60                                                                            466



     Earnout fair value adjustments                                                            -



     Acquisition contingent compensation                                                   (630)                                    1,556                                    1,062                                                                          1,988



     Deferred compensation plan                                                            2,259                                                                                51                                         36                         4       2,350



     Total adjustments                                                                     2,887                                     3,928                                    1,815                                        790                       174       9,594





     
                Adjusted EBITDA                                                        $48,419                                    $(921)                                $(2,027)                                  $(4,925)                $(14,678)    $25,868



     
                Adjusted EBITDA margin                                                  24.0 %                                  (2.4 %)                                 (7.8 %)                                   (1.9) %                  (5.5) %      9.8 %



     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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/heidrick--struggles-delivers-7-revenue-growth-in-q1-driving-strong-profitability-302446237.html

SOURCE Heidrick & Struggles