Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company's goodwill by segment (for the segments that had recorded goodwill) is as follows:


	June 30, 2025		December 31, 2024
Executive Search
Americas	$	91,346	$	90,740
Europe	1,463		1,463

Total Executive Search	92,809		92,203
On-Demand Talent	109,304		105,136
Heidrick Consulting	7,246		7,246
Goodwill, gross	209,359		204,585
Accumulated impairment	(66,724)		(66,724)
Total goodwill	$	142,635	$	137,861

Changes in the carrying amount of goodwill by segment (for the segments that had recorded goodwill) for the six months ended June 30, 2025, are as follows:


	Executive Search				On-Demand Talent	Heidrick Consulting
	Americas		Europe							Total
Goodwill	$	90,740	$	1,463		$	105,136	$	7,246	$	204,585
Accumulated impairment losses	—		(1,463)			(58,015)		(7,246)		(66,724)
Balance at December 31, 2024	90,740		—			47,121		—		137,861




Foreign currency translation	606		—			4,168		—		4,774

Goodwill	91,346		1,463			109,304		7,246		209,359
Accumulated impairment losses	—		(1,463)			(58,015)		(7,246)		(66,724)
Balance at June 30, 2025	$	91,346	$	—		$	51,289	$	—	$	142,635

During the three months ended June 30, 2024, as a result of the Company's mid-year forecasting process, it was determined that a reduction in the On-Demand Talent reporting unit forecast was required. Due to the reduction in the forecasted results for the reporting unit, in addition to the 6% passing margin in the most recent impairment analysis conducted as of October 31, 2023, the Company determined that it was more likely than not that the fair value of the reporting unit was less than its carrying value. As a result, the Company identified a triggering event and performed an interim goodwill impairment evaluation during the three months ended June 30, 2024.

Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions to evaluate the impact of operating and macroeconomic changes on each reporting unit. During the impairment evaluation process, the Company used a discounted cash flow methodology to estimate the fair value of each of its reporting units. The discounted cash flow approach is dependent on a number of factors, including estimates of future market growth and trends, forecasted revenue and costs, capital investments, appropriate discount rates, certain assumptions to allocate shared costs, assets and liabilities, historical and projected performance of the reporting unit, and the macroeconomic conditions affecting each of the Company’s reporting units. The assumptions used in the determination of fair value were (1) a forecast of growth in the near and long term; (2) the discount rate; (3) a forecast of operating expense growth in the near and long term. As part of the goodwill impairment evaluation, the Company performed a reconciliation of its market capitalization to the aggregated estimated fair value of all reporting units, including consideration of a control premium.

Based on the results of the 2024 interim impairment evaluation, the Company determined that the goodwill within the On-Demand Talent and Europe reporting units were impaired, which resulted in impairment charges of $14.8 million and $1.5 million, respectively. The impairment charges are recorded within Impairment charges in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024. The impairments were non-cash in nature and they did not affect the Company's current liquidity, cash flows, borrowing capability or operations; nor did it impact the debt covenants under the Company's credit agreement.

Other Intangible Assets, net

The Company’s other intangible assets, net by segment, are as follows:


	June 30, 2025		December 31, 2024
Executive Search
Americas	$	2	$	5
Europe	21		37

Total Executive Search	23		42
On-Demand Talent	8,980		10,592
Heidrick Consulting	1,536		1,849
Total other intangible assets, net	$	10,539	$	12,483

The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:


	Weighted Average Life (Years)	June 30, 2025						December 31, 2024
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Client relationships	10.8	$	27,583	$	(18,656)	$	8,927	$	25,188	$	(15,371)	$	9,817
Trade name	3.0	5,248		(4,782)		466		4,836		(4,039)		797
Software	3.0	9,004		(7,858)		1,146		8,285		(6,416)		1,869
Total intangible assets	9.6	$	41,835	$	(31,296)	$	10,539	$	38,309	$	(25,826)	$	12,483

Intangible asset amortization expense for the three months ended June 30, 2025, and 2024, was $1.6 million and $1.9 million, respectively. Intangible asset amortization expense for the six months ended June 30, 2025, and 2024, was $3.3 million and $4.2 million, respectively.

The Company's estimated future amortization expense related to intangible assets as of June 30, 2025, for the following years ended December 31, is as follows:


2025	$	3,071
2026	2,665
2027	1,615
2028	940
2029	678
Thereafter	1,570
Total	$	10,539