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Segment Information | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company has five operating segments. The executive search business operates in the Americas, Europe (which includes Africa) and Asia Pacific (which includes the Middle East), and the Heidrick Consulting and On-Demand Talent businesses operate globally. The Company's operating segments are based on the organizational structure for which financial results are regularly reviewed by our chief operating decision-maker to evaluate performance and allocate resources. Executive Search partners with our clients - respected organizations across the globe - to help them build and sustain the best leadership teams in the world, with a specialized focus on the placement of top-level senior executives. On-Demand Talent provides clients seamless on-demand access to top independent talent, including professionals with deep industry and functional expertise for interim leadership roles and critical, project-based initiatives. Heidrick Consulting partners with organizations to unlock the power of their people. The Company's tools and experts use data and technology designed to bring science to the art of human capital development and organizational design. Our services allow our clients to accelerate their strategies and the effectiveness of individual leaders, teams and organizations as a whole. The Company's chief operating decision-maker is its Chief Executive Officer. The Company evaluates performance and allocates resources based on the CODM's review of (1) net revenue and (2) 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"). Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of net revenue in the same period. The CODM considers actual to historical, actual to budgeted, and actual to forecasted results and variances on a monthly basis using net revenue and Adjusted EBITDA when making decisions about allocating resources to the segments and assessing performance. 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 | %
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. 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 |
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 attributed to an individual country, other than the U.S. and Germany in the years ended 2024, 2023, and other than the U.S. in 2022, did not account for more than 10% of the total net revenue. 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 |
Other than the U.S. and United Kingdom in the years ended 2024 and 2023, no single country had over 10% of the total long-lived assets, excluding financial instruments, intangible assets and tax assets. 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 |
No single client accounted for more than 10% of our net revenue in 2024, 2023, and 2022.

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