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Segment Information (Tables)

3 Months Ended

Mar. 31, 2025

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:

						Three Months Ended March 31,
						2025						2024
Revenue before reimbursements (net revenue)						$	283,578					$	265,197
Net income						13,306						14,032
Interest, net						(3,955)						(4,086)
Other, net						2,566						(2,571)
Provision for income taxes						4,311						8,899
Operating income						16,228						16,274
Adjustments
Depreciation						3,179						2,493
Intangible amortization						1,668						2,297
Earnout accretion						481						466
Earnout fair value adjustments						942						—
Acquisition contingent consideration						2,821						1,988
Deferred compensation plan						(358)						2,350
Reorganization costs						4,161						—
Total adjustments						12,894						9,594
Adjusted EBITDA						$	29,122					$	25,868
Adjusted EBITDA margin						10.3		%				9.8		%

Depreciation and amortization, and capital expenditures, by segment, are as follows:

						Three Months Ended March 31,
						2025						2024
Depreciation and amortization
Executive Search
Americas						$	523					$	761
Europe						421						295
Asia Pacific						243						202
Total Executive Search						1,187						1,258
On-Demand Talent						1,498						1,966
Heidrick Consulting						575						642
Total segments						3,260						3,866
Research and development						1,437						754
Global Operations Support						150						170
Total depreciation and amortization						$	4,847					$	4,790
Capital expenditures
Executive Search
Americas						$	386					$	513
Europe						395						1,969
Asia Pacific						72						425
Total Executive Search						853						2,907
On-Demand Talent						71						217
Heidrick Consulting						109						828
Total segments						1,033						3,952
Research and development						1,625						1,839
Global Operations Support						76						382
Total capital expenditures						$	2,734					$	6,173

Segment, Reconciliation of Other Items from Segments to Consolidated

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
			Americas						Europe						Asia Pacific						On-Demand Talent						Heidrick Consulting						Total
Revenue
Revenue before reimbursements			$	144,404					$	45,391					$	23,595					$	42,564					$	27,624					$	283,578
Reimbursements																																	3,864
Total revenue																																	287,442
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 expenses			100,182						40,349						20,560						42,164						29,720						232,975
Segment Adjusted EBITDA			44,222						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
			Americas						Europe						Asia Pacific						On-Demand Talent						Heidrick Consulting						Total
Revenue
Revenue before reimbursements			$	136,679					41,481						23,321						37,857						25,859						$	265,197
Reimbursements																																	3,901
Total revenue																																	269,098
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 expenses			94,808						38,128						20,126						38,778						27,886						219,726
Segment Adjusted EBITDA			41,871						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.

X

- Definition

Tabular disclosure of reconciliation of other items from reportable segments to their consolidated amount. Excludes reconciliation of revenue, profit (loss), and assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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