0001066605☐00010666052025-03-032025-03-03


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K

 CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 3, 2025 

HEIDRICK & STRUGGLES INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware0-2583736-2681268
(State or Other Jurisdiction of
Incorporation or Organization)		(Commission File Number)(I.R.S. Employer
Identification Number)
233 South Wacker Drive, Suite 4900, Chicago, Illinois
 60606-6303
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (312) 496-1200

N/A
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: 
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value HSII The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02 Results of Operations and Financial Condition.

On March 3, 2025, Heidrick & Struggles International, Inc. (“Heidrick & Struggles” or the “Company”) reported its earnings for the year ended December 31, 2024. A copy of the Company’s press release containing the information is being furnished as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Heidrick & Struggles under the Securities Act of 1933 or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are being furnished as part of this Report on Form 8-K:
Exhibit No.Description
99.1
104Inline XBRL for the cover page of this Current Report on Form 8-K (included as Exhibit 101)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Heidrick & Struggles International, Inc.
(Registrant)
Dated: March 3, 2025/s/ Tracey Heaton
Name: Tracey Heaton
Title: Chief Legal Officer & Corporate Secretary



 





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FOR IMMEDIATE RELEASE

Heidrick & Struggles Posts 9% Revenue Growth in Q4 with Strong Profitability

Quarterly Revenue Exceeds High End of Outlook

All Business Segments Contribute to Top Line Growth


Financial Highlights:

•Q4 2024 net revenue of $276.2 million increased 9% year over year and full year net revenue of $1,098.6 million increased 7% year over year
•Adjusted EBITDA in Q4 2024 was $26.1 million with adjusted EBITDA margin of 9.5% and full year adjusted EBITDA was $111.2 million with adjusted EBITDA margin of 10.1%
•Q4 2024 adjusted net income was $22.9 million with adjusted diluted earnings per share of $1.08 and full year adjusted net income was $66.1 million with adjusted diluted earnings per share of $3.12
•Q1 2025 revenue outlook between $263 million and $273 million
•The Board of Directors declared a $0.15 per share cash dividend

CHICAGO, March 3, 2025 – 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 fourth quarter and year ended December 31, 2024.

“We finished 2024 on a strong note, highlighted by a fourth quarter performance that exceeded our expectations," said CEO Tom Monahan. "As we move into 2025, our team is energized and focused on the significant opportunity for client impact in a complex, volatile world. This opportunity – combined with the focus and caliber of our team – gives us great confidence that we can attain our long-term financial targets.

As we discussed at our inaugural investor day in December, we serve a large and growing market defined by urgent client needs. We’ve assembled a world class team and unique capabilities to meet those needs. With our iconic brand, powerful technology and valuable intellectual property, we are focused on rapidly achieving the long-term goals we shared and creating value for our clients and shareholders.”








Selected Consolidated Results
(Dollars in millions, except per share amounts)
Three Months Ended
December 31,		Twelve Months Ended December 31,
2024202320242023
Revenue before reimbursements (net revenue)$276.2 $253.2 $1,098.6 $1,026.9 
Adjusted results (a):
Adjusted EBITDA$26.1 $35.8 $111.2 $125.6 
Adjusted EBITDA margin9.5 %14.1 %10.1 %12.2 %
Adjusted net income$22.9 $14.9 $66.1 $60.4 
Adjusted diluted earnings per share$1.08 $0.72 $3.12 $2.91 
(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.

2024 Fourth Quarter Results

Consolidated net revenue increased 9.1% to $276.2 million in the 2024 fourth quarter compared to consolidated net revenue of $253.2 million in the 2023 fourth quarter (up 9.3%, or $23.5 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.

2024 fourth quarter net loss was $15.0 million and diluted loss per share was $0.73 which included a non-cash goodwill impairment charge of $43.3 million related to the Company’s On-Demand Talent segment and an earnout fair value reduction of $0.8 million related to the Heidrick Consulting segment. Excluding these charges, 2024 fourth quarter adjusted net income increased 54.2% to $22.9 million compared to adjusted net income of $14.9 million in the 2023 fourth quarter. 2024 fourth quarter adjusted diluted earnings per share was $1.08, with an adjusted effective tax rate of 22.8% compared to adjusted diluted earnings per share of $0.72 with an effective tax rate of 40.5% in the 2023 fourth quarter. On a comparable basis, applying a 40.5% effective tax rate in the 2024 fourth quarter, adjusted diluted earnings per share increased 16.7% to $0.84 from the year-ago period.

Adjusted EBITDA was $26.1 million in the 2024 fourth quarter compared to $35.8 million in the 2023 fourth quarter, and 2024 fourth quarter adjusted EBITDA margin was 9.5% compared to 14.1% in the 2023 fourth quarter.

Fiscal 2024 Results

Consolidated net revenue increased 7.0%, or $71.7 million to $1,098.6 million compared to $1,026.9 million in 2023 (up 6.9%, or $71.4 million on a constant currency basis).

2024 net income was $8.7 million and diluted earnings per share was $0.41, which included a non-cash goodwill impairment charge of $59.5 million, a restructuring charge of $6.9 million and earnout fair value adjustments of $0.4 million. This compares to 2023 net income of $54.4 million and diluted earnings per share of $2.62, which included a non-cash goodwill impairment charge of $7.2 million. Excluding the charges in both periods, adjusted net income increased 9.4% to $66.1 million in 2024 compared to $60.4 million in 2023 and adjusted diluted earnings per share increased 7.2% to $3.12 in 2024 compared to $2.91 in 2023.

Adjusted EBITDA was $111.2 million compared to $125.6 million in the prior year. Adjusted EBITDA margin was 10.1%, compared to 12.2% in the prior year.


Selected Executive Search Data
(Dollars in millions, except Average revenue per executive search in thousands)
Three Months Ended
December 31,		Twelve Months Ended December 31,
2024202320242023
Revenue before reimbursements (net revenue)$202.5 $184.0 $818.4 $780.0 
Ending number of consultants418414418414
Consultant productivity$2.0 $1.8 $2.0 $1.9 
Average revenue per executive search$151 $138 $146 $140 
Confirmations (% increase/decrease)0.5 %4.0 %0.1 %(10.5)%
Adjusted results (a):
Adjusted EBITDA$50.5 $54.7 $202.4 $206.7 
Adjusted EBITDA margin25.0 %29.7 %24.7 %26.5 %
(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.

Executive Search net revenue was $202.5 million in the 2024 fourth quarter compared to net revenue of $184.0 million in the 2023 fourth quarter, an increase of $18.6 million, or 10.1%. The increase in revenue was driven by increases of 11.1% in the Americas (up 11.7% on a constant currency basis), 8.1% in Europe (up 7.3% on a constant currency basis), and 7.6% in Asia Pacific (up 8.0% on a constant currency basis) when compared to the prior year fourth quarter.

Adjusted EBITDA was $50.5 million in the 2024 fourth quarter compared to $54.7 million in the 2023 fourth quarter, and 2024 fourth quarter adjusted EBITDA margin was 25.0% compared to 29.7% in the 2023 fourth quarter.

Selected On-Demand Talent Data
(Dollars in millions)
Three Months Ended
December 31,		Twelve Months Ended December 31,
2024202320242023
Revenue before reimbursements (net revenue)$42.3 $41.1 $168.3 $152.5 
Adjusted results (a):
Adjusted EBITDA$(1.2)$0.8 $(2.0)$1.4 
Adjusted EBITDA margin(2.8)%1.9 %(1.2)%0.9 %
(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.

On-Demand Talent net revenue was $42.3 million in the 2024 fourth quarter compared to net revenue of $41.1 million in the 2023 fourth quarter, an increase of $1.2 million or 3.0% (up $1.3 million, or 3.3% on a constant currency basis).

Adjusted EBITDA loss was $1.2 million in the 2024 fourth quarter compared to a gain of $0.8 million in the 2023 fourth quarter, and Adjusted EBITDA margin was (2.8%) compared to 1.9% in the 2023 fourth quarter.



Selected Heidrick Consulting Data
(Dollars in millions)
Three Months Ended
December 31,		Twelve Months Ended December 31,
2024202320242023
Revenue before reimbursements (net revenue)$31.3 $28.1 $111.9 $94.3 
Ending number of consultants85898589
Adjusted results (a):
Adjusted EBITDA$(1.8)$1.0 $(6.2)$(5.8)
Adjusted EBITDA margin(5.7)%3.6 %(5.6)%(6.2)%
(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.

Heidrick Consulting net revenue was $31.3 million in the 2024 fourth quarter compared to net revenue of $28.1 million in the 2023 fourth quarter, an increase of $3.2 million or 11.5% (up $3.1 million, or 11.0% on a constant currency basis).

Adjusted EBITDA loss was $1.8 million in the 2024 fourth quarter compared to a gain of $1.0 million in the 2023 fourth quarter, and Adjusted EBITDA margin was (5.7%) compared to 3.6% in the 2023 fourth quarter.

Dividend

The Board of Directors declared a 2025 first quarter cash dividend of $0.15 per share payable on March 27, 2025, to shareholders of record at the close of business on March 13, 2025.

2025 First Quarter Outlook

The Company expects 2025 first quarter consolidated net revenue of between $263 million and $273 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 December 2024 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 fourth quarter results today, March 3, 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 fair value adjustments, net of tax.

Adjusted effective tax rate is effective tax rate excluding goodwill impairment, restructuring charges and earnout 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 first 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 and the conflict in Israel and the Gaza strip, 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 new 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:
Suzanne Rosenberg, Vice President, Investor Relations
srosenberg@heidrick.com

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

Heidrick & Struggles International, Inc.
Consolidated Statements of Comprehensive Income (Loss)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
December 31,
20242023$ Change% Change
Revenue
Revenue before reimbursements (net revenue)$276,191 $253,162 $23,029 9.1 %
Reimbursements4,695 4,228 467 11.0 %
Total revenue280,886 257,390 23,496 9.1 %
Operating expenses
Salaries and benefits180,298 151,036 29,262 19.4 %
General and administrative expenses39,439 44,089 (4,650)(10.5)%
Cost of services30,792 30,221 571 1.9 %
Research and development6,053 5,952 101 1.7 %
Impairment charges43,254 — 43,254 NM
Reimbursed expenses4,695 4,228 467 11.0 %
Total operating expenses304,531 235,526 69,005 29.3 %
Operating income (loss)(23,645)21,864 (45,509)NM
Non-operating income (loss)
Interest, net5,154 3,950 
Other, net5,689 (840)
Net non-operating income10,843 3,110 
Income (loss) before income taxes(12,802)24,974 
Provision for income taxes2,174 10,119 
Net income (loss)(14,976)14,855 
Other comprehensive income, net of tax(14,985)7,951 
Comprehensive income (loss)$(29,961)$22,806 
Weighted-average common shares outstanding
Basic20,409 20,122 
Diluted21,125 20,670 
Earnings (loss) per common share
Basic$(0.73)$0.74 
Diluted$(0.73)$0.72 
Salaries and benefits as a % of net revenue65.3 %59.7 %
General and administrative expenses as a % of net revenue14.3 %17.4 %
Cost of services as a % of net revenue11.1 %11.9 %
Research and development as a % of net revenue2.2 %2.4 %
Operating margin(8.6)%8.6 %

Heidrick & Struggles International, Inc.
Segment Information
(In thousands)
(Unaudited)
Three Months Ended December 31,
20242023$
Change		% Change
2024 Margin1
2023 Margin1
Revenue
Executive Search
Americas$138,642 $124,778 $13,864 11.1 %
Europe40,312 37,275 3,037 8.1 %
Asia Pacific23,567 21,912 1,655 7.6 %
Total Executive Search202,521 183,965 18,556 10.1 %
On-Demand Talent42,342 41,096 1,246 3.0 %
Heidrick Consulting31,328 28,101 3,227 11.5 %
Revenue before reimbursements (net revenue)276,191 253,162 23,029 9.1 %
Reimbursements4,695 4,228 467 11.0 %
Total revenue$280,886 $257,390 $23,496 9.1 %
Adjusted EBITDA
Executive Search
Americas$43,812 $45,801 $(1,989)(4.3)%31.6 %36.7 %
Europe3,578 5,759 (2,181)(37.9)%8.9 %15.5 %
Asia Pacific3,145 3,169 (24)(0.8)%13.3 %14.5 %
Total Executive Search50,535 54,729 (4,194)(7.7)%25.0 %29.7 %
On-Demand Talent
(1,197)774 (1,971)NM(2.8)%1.9 %
Heidrick Consulting(1,790)1,025 (2,815)NM(5.7)%3.6 %
Total segments47,548 56,528 (8,980)(15.9)%17.2 %22.3 %
Research and Development(4,704)(5,139)435 8.5 %(1.7)%(2.0)%
Global Operations Support(16,700)(15,632)(1,068)(6.8)%(6.0)%(6.2)%
Total Adjusted EBITDA$26,144 $35,757 $(9,613)(26.9)%9.5 %14.1 %

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







Heidrick & Struggles International, Inc.
Consolidated Statements of Comprehensive Income (Loss)
(In thousands, except per share amounts)
(Unaudited)
Twelve Months Ended
December 31,
20242023$ Change% Change
Revenue
Revenue before reimbursements (net revenue)$1,098,573 $1,026,864 $71,709 7.0 %
Reimbursements17,103 14,318 2,785 19.5 %
Total revenue1,115,676 1,041,182 74,494 7.2 %
Operating expenses
Salaries and benefits715,628 656,030 59,598 9.1 %
General and administrative expenses166,995 156,494 10,501 6.7 %
Cost of services118,950 109,039 9,911 9.1 %
Research and development23,055 22,698 357 1.6 %
Impairment charges59,478 7,246 52,232 NM
Restructuring charges6,939 — 6,939 100.0 %
Reimbursed expenses17,103 14,318 2,785 19.5 %
Total operating expenses1,108,148 965,825 142,323 14.7 %
Operating income7,528 75,357 (67,829)(90.0)%
Non-operating income
Interest, net14,422 11,617 
Other, net8,702 1,697 
Net non-operating income23,124 13,314 
Income before income taxes30,652 88,671 
Provision for income taxes21,924 34,261 
Net income8,728 54,410 
Other comprehensive income (loss), net of tax(14,174)4,318 
Comprehensive income (loss)$(5,446)$58,728 
Weighted-average common shares outstanding
Basic20,293 20,029 
Diluted21,188 20,766 
Earnings per common share
Basic$0.43 $2.72 
Diluted$0.41 $2.62 
Salaries and benefits as a % of net revenue65.1 %63.9 %
General and administrative expenses as a % of net revenue15.2 %15.2 %
Cost of services as a % of net revenue10.8 %10.6 %
Research and development as a % of net revenue2.1 %2.2 %
Operating margin0.7 %7.3 %

Heidrick & Struggles International, Inc.
Segment Information
(In thousands)
(Unaudited)
Twelve Months Ended December 31,
20242023$
Change		%
Change
2024 Margin1
2023 Margin1
Revenue
Executive Search
Americas$556,944 $522,988 $33,956 6.5 %
Europe165,018 166,379 (1,361)(0.8)%
Asia Pacific96,396 90,678 5,718 6.3 %
Total Executive Search818,358 780,045 38,313 4.9 %
On-Demand Talent168,325 152,506 15,819 10.4 %
Heidrick Consulting111,890 94,313 17,577 18.6 %
Revenue before reimbursements (net revenue)1,098,573 1,026,864 71,709 7.0 %
Reimbursements17,103 14,318 2,785 19.5 %
Total revenue$1,115,676 $1,041,182 $74,494 7.2 %
Adjusted EBITDA
Executive Search
Americas$174,260 $173,358 $902 0.5 %31.3 %33.1 %
Europe14,793 22,246 (7,453)(33.5)%9.0 %13.4 %
Asia Pacific13,327 11,070 2,257 20.4 %13.8 %12.2 %
Total Executive Search202,380 206,674 (4,294)(2.1)%24.7 %26.5 %
On-Demand Talent(1,984)1,434 (3,418)NM(1.2)%0.9 %
Heidrick Consulting(6,237)(5,823)(414)(7.1)%(5.6)%(6.2)%
Total segments194,159 202,285 (8,126)(4.0)%17.7 %19.7 %
Research and Development(19,016)(20,535)1,519 7.4 %(1.7)%(2.0)%
Global Operations Support(63,905)(56,133)(7,772)(13.8)%(5.8)%(5.5)%
Total Adjusted EBITDA$111,238 $125,617 $(14,379)(11.4)%10.1 %12.2 %
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
December 31,		Twelve Months Ended
December 31,
2024202320242023
Net income (loss)$(14,976)$14,855 $8,728 $54,410 
Adjustments
Impairment charges, net of tax(1)
37,621 — 51,811 6,038 
Earnout fair value adjustment, net of tax(2)
(349)— 439 — 
Restructuring charges, net of tax(3)
615 — 5,131 — 
Total adjustments37,887 — 57,381 6,038 
Adjusted net income$22,911 $14,855 $66,109 $60,448 
Weighted-average common shares outstanding
Basic20,409 20,122 20,293 20,029 
Diluted21,125 20,670 21,188 20,766 
Earnings (loss) per common share
Basic$(0.73)$0.74 $0.43 $2.72 
Diluted$(0.73)$0.72 $0.41 $2.62 
Adjusted earnings per common share
Basic$1.12 $0.74 $3.26 $3.02 
Diluted$1.08 $0.72 $3.12 $2.91 

1 The Company recorded goodwill impairment charges of $43.3 million in the On-Demand Talent segment for the three months ended December 31, 2024. The Company recorded goodwill impairment charges of $58.0 million in the On-Demand Talent segment and $1.5 million in the Europe segment for the twelve months ended December 31, 2024. The Company recorded a goodwill impairment charge of $7.2 million in the Heidrick Consulting segment for the twelve months ended December 31, 2023.
2 The Company recorded a fair value adjustment to decrease the Heidrick Consulting earnout by $0.8 million for the three months ended December 31, 2024. The Company recorded a fair value adjustment to increase the On-Demand Talent earnout by $1.1 million and decrease the Heidrick Consulting earnout by $0.7 million for the twelve months ended December 31, 2024.
3 The Company recorded restructuring charges of $6.9 million for the twelve months ended December 31, 2024.


Heidrick & Struggles International, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31,
2024		December 31,
2023
Current assets
Cash and cash equivalents$515,627 $412,618 
Marketable securities47,896 65,538 
Accounts receivable, net134,331 133,128 
Prepaid expenses28,718 23,597 
Other current assets39,935 47,923 
Income taxes recoverable6,470 10,410 
Total current assets772,977 693,214 
Non-current assets
Property and equipment, net51,685 35,752 
Operating lease right-of-use assets83,518 86,063 
Assets designated for retirement and pension plans9,976 11,105 
Investments58,290 47,287 
Other non-current assets25,500 17,071 
Goodwill137,861 202,252 
Other intangible assets, net12,483 20,842 
Deferred income taxes41,898 28,005 
Total non-current assets421,211 448,377 
Total assets$1,194,188 $1,141,591 
Current liabilities
Accounts payable$25,088 $20,837 
Accrued salaries and benefits353,531 322,744 
Deferred revenue51,085 45,732 
Operating lease liabilities17,653 21,498 
Other current liabilities21,369 21,823 
Income taxes payable14,287 6,057 
Total current liabilities483,013 438,691 
Non-current liabilities
Accrued salaries and benefits58,547 52,108 
Retirement and pension plans72,138 62,100 
Operating lease liabilities83,152 78,204 
Other non-current liabilities42,905 41,808 
Deferred income taxes1,616 6,402 
Total non-current liabilities258,358 240,622 
Total liabilities741,371 679,313 
Stockholders’ equity452,817 462,278 
Total liabilities and stockholders’ equity$1,194,188 $1,141,591 

Heidrick & Struggles International, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
December 31,
20242023
Cash flows - operating activities
Net income (loss)$(14,976)$14,855 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization5,207 5,076 
Deferred income taxes(17,361)12,448 
Stock-based compensation expense2,824 3,499 
Accretion expense related to earnout payments513 457 
Gain on marketable securities(340)(878)
Loss on disposal of property and equipment190 17 
Impairment charges43,254 — 
Changes in assets and liabilities, net of effects of acquisition:
Accounts receivable47,187 59,118 
Accounts payable17,917 1,526 
Accrued expenses88,403 54,668 
Restructuring accrual(484)— 
Deferred revenue5,109 3,657 
Income taxes recoverable and payable, net11,979 (13,309)
Retirement and pension plan assets and liabilities(364)796 
Prepaid expenses(1,479)5,004 
Other assets and liabilities, net2,609 8,979 
Net cash provided by operating activities190,188 155,913 
Cash flows - investing activities
Acquisition of businesses, net of cash acquired— (11,905)
Capital expenditures(16,668)(3,814)
Purchases of marketable securities and investments(48,003)(65,518)
Proceeds from sales of marketable securities and investments46,237 48,183 
Net cash used in investing activities(18,434)(33,054)
Cash flows - financing activities
Cash dividends paid(3,314)(3,154)
Payment of employee tax withholdings on equity transactions(17)— 
Net cash used in financing activities(3,331)(3,154)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash(16,032)6,442 
Net increase in cash, cash equivalents and restricted cash152,391 126,147 
Cash, cash equivalents and restricted cash at beginning of period363,422 286,471 
Cash, cash equivalents and restricted cash at end of period$515,813 $412,618 

Heidrick & Struggles International, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Twelve Months Ended
December 31,
20242023
Cash flows - operating activities
Net income$8,728 $54,410 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization18,857 18,508 
Deferred income taxes(19,421)11,900 
Stock-based compensation expense12,725 10,830 
Accretion expense related to earnout payments1,926 1,554 
Gain on marketable securities(2,663)(2,918)
Loss on disposal of property and equipment454 209 
Impairment charges59,478 7,246 
Changes in assets and liabilities:
Accounts receivable(4,520)6,913 
Accounts payable4,625 (131)
Accrued expenses47,031 (145,118)
Restructuring accrual2,506 — 
Deferred revenue6,272 2,035 
Income taxes recoverable and payable, net12,326 (6,692)
Retirement and pension plan assets and liabilities6,021 7,493 
Prepaid expenses(5,536)1,233 
Other assets and liabilities, net1,622 5,736 
Net cash provided by (used in) operating activities150,431 (26,792)
Cash flows - investing activities
Acquisition of business, net of cash acquired— (49,858)
Capital expenditures(26,315)(13,433)
Purchases of marketable securities and investments(163,611)(140,982)
Proceeds from sales of marketable securities and investments175,307 337,872 
Net cash provided by (used in) investing activities(14,619)133,599 
Cash flows - financing activities
Repurchases of common stock— (904)
Cash dividends paid(12,923)(12,537)
Payment of employee tax withholdings on equity transactions(3,817)(4,141)
Acquisition earnout payments— (35,946)
Net cash used in financing activities(16,740)(53,528)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash(15,877)3,850 
Net increase in cash, cash equivalents and restricted cash103,195 57,129 
Cash, cash equivalents and restricted cash at beginning of period412,618 355,489 
Cash, cash equivalents and restricted cash at end of period$515,813 $412,618 

Heidrick & Struggles International, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA (Non-GAAP)
(In thousands)
(Unaudited)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2024202320242023
Revenue before reimbursements (net revenue)$276,191 $253,162 $1,098,573 $1,026,864 
Net income (loss)(14,976)14,855 8,728 54,410 
Interest, net(5,154)(3,950)(14,422)(11,617)
Other, net(5,689)840 (8,702)(1,697)
Provision for income taxes2,174 10,119 21,924 34,261 
Operating income (loss)(23,645)21,864 7,528 75,357 
Adjustments
Depreciation3,302 2,550 10,782 9,113 
Intangible amortization1,905 2,526 8,075 9,395 
Earnout accretion513 457 1,926 1,554 
Earnout fair value adjustments(773)— 438 — 
Acquisition contingent consideration2,595 3,223 10,815 11,934 
Deferred compensation plan(1,007)3,823 5,257 6,132 
Reorganization costs— 1,314 — 4,886 
Impairment charges43,254 — 59,478 7,246 
Restructuring charges— — 6,939 — 
Total adjustments49,789 13,893 103,710 50,260 
Adjusted EBITDA$26,144 $35,757 $111,238 $125,617 
Adjusted EBITDA margin9.5 %14.1 %10.1 %12.2 %

Heidrick & Struggles International, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Line of Business (Non-GAAP)
(In thousands)
(Unaudited)
Three Months Ended December 31, 2024
Executive SearchOn-Demand TalentHeidrick ConsultingResearch & DevelopmentGlobal Operations SupportTotal
Revenue before reimbursements (net revenue)$202,521 $42,342 $31,328 $— $— $276,191 
Operating income (loss)1
49,015 (48,153)(1,578)(6,053)(16,876)(23,645)
Adjustments
Depreciation1,352 177 229 1,365 179 3,302 
Intangible amortization15 1,519 371 — — 1,905 
Earnout accretion— 428 85 — — 513 
Earnout fair value adjustments— — (773)— — (773)
Acquisition contingent compensation1,122 1,578 (105)— — 2,595 
Deferred compensation plan(969)— (19)(16)(3)(1,007)
Impairment charges— 43,254 — — — 43,254 
Total adjustments1,520 46,956 (212)1,349 176 49,789 
Adjusted EBITDA$50,535 $(1,197)$(1,790)$(4,704)$(16,700)$26,144 
Adjusted EBITDA margin25.0 %(2.8)%(5.7)%(1.7)%(6.0)%9.5 %
Three Months Ended December 31, 2023
Executive SearchOn-Demand TalentHeidrick ConsultingResearch & DevelopmentGlobal Operations SupportTotal
Revenue before reimbursements (net revenue)$183,965 $41,096 $28,101 $— $— $253,162 
Operating income (loss)1
49,086 (4,616)(852)(5,952)(15,802)21,864 
Adjustments
Depreciation1,310 74 247 754 165 2,550 
Intangible amortization28 2,060 438 — — 2,526 
Earnout accretion— 399 58 — — 457 
Acquisition contingent compensation640 1,543 1,040 — — 3,223 
Deferred compensation plan3,665 — 94 59 5 3,823 
Reorganization costs— 1,314 — — — 1,314 
Total adjustments5,643 5,390 1,877 813 170 13,893 
Adjusted EBITDA$54,729 $774 $1,025 $(5,139)$(15,632)$35,757 
Adjusted EBITDA margin29.7 %1.9 %3.6 %(2.0)%(6.2)%14.1 %

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.

Heidrick & Struggles International, Inc.
Reconciliation of Operating Income (Loss) to Adjusted EBITDA (Non-GAAP)
(In thousands)
(Unaudited)
Twelve Months Ended December 31, 2024
Executive SearchOn-Demand TalentHeidrick ConsultingResearch & DevelopmentGlobal Operations SupportTotal
Revenue before reimbursements (net revenue)$818,358 $168,325 $111,890 $— $— $1,098,573 
Operating income (loss)1
187,638 (76,733)(14,785)(23,055)(65,537)7,528 
Adjustments
Depreciation4,845 600 735 3,957 645 10,782 
Intangible amortization69 6,447 1,559 — — 8,075 
Earnout accretion— 1,679 247 — — 1,926 
Earnout fair value adjustments— 1,125 (687)— — 438 
Acquisition contingent compensation996 6,597 3,222 — — 10,815 
Deferred compensation plan5,059 — 105 82 11 5,257 
Impairment charges1,463 58,015 — — — 59,478 
Restructuring charges2,310 286 3,367 — 976 6,939 
Total adjustments14,742 74,749 8,548 4,039 1,632 103,710 
Adjusted EBITDA$202,380 $(1,984)$(6,237)$(19,016)$(63,905)$111,238 
Adjusted EBITDA margin24.7 %(1.2 %)(5.6 %)(1.7 %)(5.8)%10.1 %
Twelve Months Ended December 31, 2023
Executive SearchOn-Demand TalentHeidrick ConsultingResearch & DevelopmentGlobal Operations SupportTotal
Revenue before reimbursements (net revenue)$780,045 $152,506 $94,313 $— $— $1,026,864 
Operating income (loss)1
190,009 (16,437)(18,729)(22,698)(56,788)75,357 
Adjustments
Depreciation5,238 400 754 2,073 648 9,113 
Intangible amortization173 7,797 1,425 — — 9,395 
Earnout accretion— 1,381 173 — — 1,554 
Acquisition contingent compensation3,089 5,687 3,158 — — 11,934 
Deferred compensation plan5,885 — 150 90 7 6,132 
Reorganization costs2,280 2,606 — — — 4,886 
Impairment charges— — 7,246 — — 7,246 
Total adjustments16,665 17,871 12,906 2,163 655 50,260 
Adjusted EBITDA$206,674 $1,434 $(5,823)$(20,535)$(56,133)$125,617 
Adjusted EBITDA margin26.5 %0.9 %(6.2 %)(2.0 %)(5.5 %)12.2 %

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.

v3.25.0.1
Cover
Mar. 03, 2025
Cover [Abstract]  
City Area Code 312
Local Phone Number 496-1200
Document Type 8-K
Entity File Number 0-25837
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 36-2681268
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol HSII
Security Exchange Name NASDAQ
Entity Registrant Name HEIDRICK & STRUGGLES INTERNATIONAL, INC.
Written Communications false
Soliciting Material false
Entity Address, Postal Zip Code 60606-6303
Entity Central Index Key 0001066605
Document Period End Date Mar. 03, 2025
Amendment Flag false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Address, Address Line One 233 South Wacker Drive
Entity Address, Address Line Two Suite 4900
Entity Address, City or Town Chicago
Entity Address, State or Province IL
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