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Segment Information
 3 Months Ended
Mar. 31, 2025
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 review of the chief operating decision make ("CODM") 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 CODM is not provided asset information by reportable segment.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP (as defined below) financial measures. The following table presents a reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA margin:

Three Months Ended
March 31,
20252024
Revenue before reimbursements (net revenue)$283,578 $265,197 
Net income13,306 14,032 
Interest, net(3,955)(4,086)
Other, net2,566 (2,571)
Provision for income taxes4,311 8,899 
Operating income16,228 16,274 
Adjustments
Depreciation3,179 2,493 
Intangible amortization1,668 2,297 
Earnout accretion481 466 
Earnout fair value adjustments942 — 
Acquisition contingent consideration2,821 1,988 
Deferred compensation plan(358)2,350 
Reorganization costs4,161 — 
Total adjustments12,894 9,594 
Adjusted EBITDA$29,122 $25,868 
Adjusted EBITDA margin10.3 %9.8 %
The following tables present our segment information, including significant segment expenses, for the three months ended March 31, 2025, and 2024:
Three Months ended March 31, 2025
Executive Search
AmericasEuropeAsia PacificOn-Demand TalentHeidrick ConsultingTotal
Revenue
Revenue before reimbursements$144,404 $45,391 $23,595 $42,564 $27,624 $283,578 
Reimbursements3,864 
Total revenue287,442 
Operating Expenses
Salaries and benefits (1)90,093 32,489 16,817 11,598 21,635 172,632 
General and administrative (2)10,089 7,860 3,743 3,741 4,851 30,284 
Cost of services— — — 26,825 3,234 30,059 
Total segment operating expenses100,182 40,349 20,560 42,164 29,720 232,975 
Segment Adjusted EBITDA44,222 5,042 3,035 400 (2,096)50,603 
Reconciling Items
Research and development expenses (3)— — — — — 4,624 
Global Operations Support expenses (3)— — — — — 16,857 
Total reconciling expenses— — — — — 21,481 
Adjusted EBITDA$44,222 $5,042 $3,035 $400 $(2,096)$29,122 
Three Months ended March 31, 2024
Executive Search
AmericasEuropeAsia PacificOn-Demand TalentHeidrick ConsultingTotal
Revenue
Revenue before reimbursements$136,679 41,481 23,321 37,857 25,859 $265,197 
Reimbursements3,901 
Total revenue269,098 
Operating Expenses
Salaries and benefits (1)84,026 30,254 16,192 11,593 18,884 160,949 
General and administrative (2)10,782 7,874 3,934 3,095 5,660 31,345 
Cost of services— — — 24,090 3,342 27,432 
Total segment operating expenses94,808 38,128 20,126 38,778 27,886 219,726 
Segment Adjusted EBITDA41,871 3,353 3,195 (921)(2,027)45,471 
Reconciling Items
Research and development expenses (3)— — — — — 4,925 
Global Operations Support expenses (3)— — — — — 14,678 
Total reconciling expenses— — — — — 19,603 
Adjusted EBITDA$41,871 $3,353 $3,195 $(921)$(2,027)$25,868 

(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:
 Three Months Ended
March 31,
 20252024
Depreciation and amortization
Executive Search
Americas$523 $761 
Europe421 295 
Asia Pacific243 202 
Total Executive Search1,187 1,258 
On-Demand Talent1,498 1,966 
Heidrick Consulting575 642 
Total segments3,260 3,866 
Research and development1,437 754 
Global Operations Support150 170 
Total depreciation and amortization$4,847 $4,790 
Capital expenditures
Executive Search
Americas$386 $513 
Europe395 1,969 
Asia Pacific72 425 
Total Executive Search853 2,907 
On-Demand Talent71 217 
Heidrick Consulting109 828 
Total segments1,033 3,952 
Research and development1,625 1,839 
Global Operations Support76 382 
Total capital expenditures$2,734 $6,173