#United States #Chicago #revenue growth #Q3 2025 #Heidrick & Struggles

Heidrick & Struggles Reports Significant Revenue Increase in Q3 2025

Heidrick & Struggles International, Inc. (NASDAQ: HSII) has reported impressive financial results for the third quarter of 2025, with a remarkable 15.9% increase in net revenue year-over-year, reaching a total of $322.8 million. This achievement not only exceeds the high end of the company's earlier financial forecast but also underscores its robust profitability across all lines of business.

CEO Tom Monahan commented, "We continued our strong 2025 momentum, characterized by results that surpassed our expectations. Our teams have focused relentlessly on collaborating with clients through our comprehensive suite of leadership advisory solutions, which has led to the development of lasting global client relationships. By positioning ourselves as trusted partners and ensuring our work environment attracts top talent, we aim to drive sustainable growth that allows reinvestment into future client solutions."

Financial Highlights

In the third quarter of 2025, Heidrick's adjusted EBITDA soared to $34.2 million, resulting in an adjusted EBITDA margin of 10.6%. The net income for the quarter stood at $17.6 million, translating to diluted earnings per share of $0.83. In a show of confidence, the Board of Directors declared a cash dividend of $0.15 per share payable to shareholders on record as of November 13, 2025, demonstrating the company's commitment to returning value to its investors.

Business Segments Performance

The consolidated net revenue growth was supported by strong year-over-year performance across all major business segments:

• - Executive Search: This segment reported a 17.0% increase in net revenue, hitting $239.1 million, bolstered by significant gains in the Americas and Europe. However, revenue from the Asia Pacific region experienced a slight decline.

• - On-Demand Talent: The On-Demand Talent division saw a 10.1% increase, bringing in $50.9 million in net revenue. This segment's growing popularity reflects an evolving workforce that increasingly values flexible work arrangements.

• - Heidrick Consulting: This segment enjoyed robust growth as well, with net revenue rising by 17.6% to $32.8 million, showcasing the successful implementation of strategic initiatives to meet client demands.

A Shift to Private Ownership

On October 6, 2025, Heidrick announced its agreement to become a private entity through a transaction with an investor consortium led by Advent International and Corvex Private Equity, valued at $59.00 per share in cash. This strategic move is expected to foster a more focused approach, allowing Heidrick to better serve its client base without the pressures of public market scrutiny.

Future Outlook

Given the positive trajectory of growth and profitability, Heidrick & Struggles is well-positioned for future opportunities. The third quarter's results reflect a commitment to excellence and underline the effectiveness of its business strategies in a competitive marketplace. Management anticipates that the acquisition will enhance its operational capabilities, allowing for more agility in serving clients and attracting top-tier talent.

In summary, Heidrick & Struggles' Q3 2025 performance underscores its strong market position and commitment to sustainable growth, creating a solid foundation for its future in the leadership advisory landscape.