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Segment Information (Tables) | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | The following table presents a reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA margin:
| December 31,
| 2024 |  | 2023 |  | 2022
Revenue before reimbursements (net revenue) | $ | 1,098,573 |  |  | $ | 1,026,864 |  |  | $ | 1,073,464 |
Net income | 8,728 |  |  | 54,410 |  |  | 79,486 |
Interest, net | (14,422) |  |  | (11,617) |  |  | (5,337) |
Other, net | (8,702) |  |  | (1,697) |  |  | 2,367 |
Provision for income taxes | 21,924 |  |  | 34,261 |  |  | 35,750 |
Operating income | 7,528 |  |  | 75,357 |  |  | 112,266 |
Adjustments |  |  |  |  |
Depreciation | 10,782 |  |  | 9,113 |  |  | 7,394 |
Intangible amortization | 8,075 |  |  | 9,395 |  |  | 3,209 |
Earnout accretion | 1,926 |  |  | 1,554 |  |  | 820 |
Earnout fair value adjustments | 438 |  |  | — |  |  | (464) |
Acquisition contingent consideration | 10,815 |  |  | 11,934 |  |  | 3,885 |
Deferred compensation plan | 5,257 |  |  | 6,132 |  |  | (6,232) |
Reorganization costs | — |  |  | 4,886 |  |  | — |
Impairment charges | 59,478 |  |  | 7,246 |  |  | — |
Restructuring charges | 6,939 |  |  | — |  |  | — |
Total adjustments | 103,710 |  |  | 50,260 |  |  | 8,612 |
Adjusted EBITDA | $ | 111,238 |  |  | $ | 125,617 |  |  | $ | 120,878 |
Adjusted EBITDA margin | 10.1 | % |  | 12.2 | % |  | 11.3 | %
Depreciation and amortization, and capital expenditures, by segment, are as follows:
|  | December 31,
|  | 2024 |  | 2023 |  | 2022
Depreciation and amortization |  |  |  |  |  |
Executive Search |  |  |  |  |  |
Americas |  | $ | 2,918 |  |  | $ | 3,092 |  |  | $ | 3,498 |
Europe |  | 1,165 |  |  | 1,343 |  |  | 1,451 |
Asia Pacific |  | 831 |  |  | 976 |  |  | 1,126 |
Total Executive Search |  | 4,914 |  |  | 5,411 |  |  | 6,075 |
On-Demand Talent |  | 7,047 |  |  | 8,197 |  |  | 2,669 |
Heidrick Consulting |  | 2,294 |  |  | 2,179 |  |  | 878 |
Total segments |  | 14,255 |  |  | 15,787 |  |  | 9,622 |
Research and development |  | 3,957 |  |  | 2,073 |  |  | 524 |
Global Operations Support |  | 645 |  |  | 648 |  |  | 457 |
Total depreciation and amortization |  | $ | 18,857 |  |  | $ | 18,508 |  |  | $ | 10,603 |
Capital expenditures |  |  |  |  |  |
Executive Search |  |  |  |  |  |
Americas |  | $ | 3,846 |  |  | $ | 2,351 |  |  | $ | 1,890 |
Europe |  | 12,326 |  |  | 1,827 |  |  | 683 |
Asia Pacific |  | 1,785 |  |  | 618 |  |  | 1,497 |
Total Executive Search |  | 17,957 |  |  | 4,796 |  |  | 4,070 |
On-Demand Talent |  | 586 |  |  | 398 |  |  | 732 |
Heidrick Consulting |  | 123 |  |  | 559 |  |  | 128 |
Total segments |  | 18,666 |  |  | 5,753 |  |  | 4,930 |
Research and development |  | 7,083 |  |  | 7,170 |  |  | 4,878 |
Global Operations Support |  | 566 |  |  | 510 |  |  | 1,326 |
Total capital expenditures |  | $ | 26,315 |  |  | $ | 13,433 |  |  | $ | 11,134 |
Reconciliation of Adjusted EBITDA from Segments to Consolidated | The following tables present our segment information, including significant segment expenses, for the years ended December 31, 2024, 2023 and 2022:
| Year Ended December 31, 2024
| Executive Search |  |  |  |  |  |
| Americas |  | Europe |  | Asia Pacific |  | On-Demand Talent |  | Heidrick Consulting |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |
Revenue before reimbursements | $ | 556,944 |  |  | $ | 165,018 |  |  | $ | 96,396 |  |  | $ | 168,325 |  |  | $ | 111,890 |  |  | $ | 1,098,573 |
Reimbursements |  |  |  |  |  |  |  |  |  |  | 17,103 |
Total revenue |  |  |  |  |  |  |  |  |  |  | 1,115,676 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits (1) | 339,294 |  |  | 120,416 |  |  | 66,816 |  |  | 46,739 |  |  | 85,742 |  |  | 659,007 |
General and administrative (2) | 43,390 |  |  | 29,809 |  |  | 16,253 |  |  | 15,083 |  |  | 21,922 |  |  | 126,457 |
Cost of services | — |  |  | — |  |  | — |  |  | 108,487 |  |  | 10,463 |  |  | 118,950 |
Total segment operating expenses | 382,684 |  |  | 150,225 |  |  | 83,069 |  |  | 170,309 |  |  | 118,127 |  |  | 904,414 |
Segment Adjusted EBITDA | 174,260 |  |  | 14,793 |  |  | 13,327 |  |  | (1,984) |  |  | (6,237) |  |  | 194,159 |
Reconciling Items |  |  |  |  |  |  |  |  |  |  |
Research and development expenses (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,016 |
Global Operations Support expenses (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 63,905 |
Total reconciling expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 82,921 |
Adjusted EBITDA | $ | 174,260 |  |  | $ | 14,793 |  |  | $ | 13,327 |  |  | $ | (1,984) |  |  | $ | (6,237) |  |  | $ | 111,238 |
| Year Ended December 31, 2023
| Executive Search |  |  |  |  |  |
| Americas |  | Europe |  | Asia Pacific |  | On-Demand Talent |  | Heidrick Consulting |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |
Revenue before reimbursements | $ | 522,988 |  |  | $ | 166,379 |  |  | $ | 90,678 |  |  | $ | 152,506 |  |  | $ | 94,313 |  |  | $ | 1,026,864 |
Reimbursements |  |  |  |  |  |  |  |  |  |  | 14,318 |
Total revenue |  |  |  |  |  |  |  |  |  |  | 1,041,182 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits (1) | 304,486 |  |  | 116,748 |  |  | 64,176 |  |  | 39,395 |  |  | 72,862 |  |  | 597,667 |
General and administrative (2) | 45,144 |  |  | 27,385 |  |  | 15,432 |  |  | 11,965 |  |  | 17,947 |  |  | 117,873 |
Cost of services | — |  |  | — |  |  | — |  |  | 99,712 |  |  | 9,327 |  |  | 109,039 |
Total segment operating expenses | 349,630 |  |  | 144,133 |  |  | 79,608 |  |  | 151,072 |  |  | 100,136 |  |  | 824,579 |
Segment Adjusted EBITDA | 173,358 |  |  | 22,246 |  |  | 11,070 |  |  | 1,434 |  |  | (5,823) |  |  | 202,285 |
Reconciling Items |  |  |  |  |  |  |  |  |  |  |
Research and development expenses (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,535 |
Global Operations Support expenses (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 56,133 |
Total reconciling expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 76,668 |
Adjusted EBITDA | $ | 173,358 |  |  | $ | 22,246 |  |  | $ | 11,070 |  |  | $ | 1,434 |  |  | $ | (5,823) |  |  | $ | 125,617 |
| Year Ended December 31, 2022
| Executive Search |  |  |  |  |  |
| Americas |  | Europe |  | Asia Pacific |  | On-Demand Talent |  | Heidrick Consulting |  | Total
Revenue |  |  |  |  |  |  |  |  |  |  |
Revenue before reimbursements | $ | 612,881 |  |  | $ | 176,275 |  |  | $ | 112,766 |  |  | $ | 91,349 |  |  | $ | 80,193 |  |  | $ | 1,073,464 |
Reimbursements |  |  |  |  |  |  |  |  |  |  | 10,122 |
Total revenue |  |  |  |  |  |  |  |  |  |  | 1,083,586 |
Operating Expenses |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits (1) | 405,816 |  |  | 128,240 |  |  | 76,888 |  |  | 22,568 |  |  | 66,284 |  |  | 699,796 |
General and administrative (2) | 42,872 |  |  | 25,885 |  |  | 16,065 |  |  | 5,638 |  |  | 13,156 |  |  | 103,616 |
Cost of services | — |  |  | — |  |  | — |  |  | 63,479 |  |  | 7,197 |  |  | 70,676 |
Total segment operating expenses | 448,688 |  |  | 154,125 |  |  | 92,953 |  |  | 91,685 |  |  | 86,637 |  |  | 874,088 |
Segment Adjusted EBITDA | 164,193 |  |  | 22,150 |  |  | 19,813 |  |  | (336) |  |  | (6,444) |  |  | 199,376 |
Reconciling Items |  |  |  |  |  |  |  |  |  |  |
Research and development expenses (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,965 |
Global Operations Support expenses (3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 58,533 |
Total reconciling expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 78,498 |
Adjusted EBITDA | $ | 164,193 |  |  | $ | 22,150 |  |  | $ | 19,813 |  |  | $ | (336) |  |  | $ | (6,444) |  |  | $ | 120,878 |
(1) Includes base salaries, payroll taxes, retirement benefits, separation and stock-based compensation. Excludes contingent compensation, deferred compensation plan income or expense and reorganization costs as these income/expense items are not included within the Company's measure of segment profitability. (2) Includes professional fees, business development travel, information technology, communication services, marketing, taxes and licenses, temporary labor, bad debt, and other operating expenses. Excludes depreciation, intangible amortization, earnout accretion and earnout fair value adjustments as these income/expense items are not included within the Company's measure of segment profitability. (3) Excludes depreciation expense and deferred compensation plan income expense as these income/expense items are not included within the Company's measure of segment profitability.
Reconciliation of Assets from Segment to Consolidated | Identifiable assets, and goodwill and other intangible assets, net, by segment, are as follows:
|  | December 31,
|  | 2024 |  | 2023
Current assets |  |  |  |
Executive Search |  |  |  |
Americas |  | $ | 413,380 |  |  | $ | 360,111 |
Europe |  | 147,156 |  |  | 139,803 |
Asia Pacific |  | 95,571 |  |  | 92,071 |
Total Executive Search |  | 656,107 |  |  | 591,985 |
On-Demand Talent |  | 45,814 |  |  | 37,224 |
Heidrick Consulting |  | 66,628 |  |  | 53,334 |
Total segments |  | 768,549 |  |  | 682,543 |
Global Operations Support |  | 4,428 |  |  | 10,671 |
Total allocated current assets |  | 772,977 |  |  | 693,214 |
Unallocated non-current assets |  | 270,867 |  |  | 225,283 |
Goodwill and other intangible assets, net |  |  |  |
Executive Search |  |  |  |
Americas |  | 90,745 |  |  | 91,762 |
Europe |  | 37 |  |  | 1,589 |
Asia Pacific |  | — |  |  | — |
Total Executive Search |  | 90,782 |  |  | 93,351 |
On-Demand Talent |  | 57,713 |  |  | 126,707 |
Heidrick Consulting |  | 1,849 |  |  | 3,036 |
Total goodwill and other intangible assets, net |  | 150,344 |  |  | 223,094 |
Total assets |  | $ | 1,194,188 |  |  | $ | 1,141,591 |
Net Revenue Classified by Country | Net revenue classified by country is as follows:
| December 31,
| 2024 |  | 2023 |  | 2022
Unites States | $ | 647,565 |  |  | $ | 602,574 |  |  | $ | 703,657 |
Germany | 115,439 |  |  | 103,183 |  |  | 32,756 |
All other countries | 335,569 |  |  | 321,107 |  |  | 337,051 |
Total net revenue | $ | 1,098,573 |  |  | $ | 1,026,864 |  |  | $ | 1,073,464 |
Long-Lived Assets Classified by Country | Long-lived assets, excluding financial instruments and tax assets, classified by country, are as follows:
| December 31,
| 2024 |  | 2023
Unites States | $ | 62,096 |  |  | $ | 57,258 |
United Kingdom | 33,200 |  |  | 27,759 |
All other countries | 39,907 |  |  | 36,797 |
Total long-lived assets | $ | 135,203 |  |  | $ | 121,814 |

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