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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The Company's goodwill by segment (for the segments that had recorded goodwill) is as follows:
|  | September 30, 2025 |  | December 31, 2024
Executive Search |  |  |  |
Americas |  | $ | 91,329 |  |  | $ | 90,740 |
Europe |  | 1,463 |  |  | 1,463 |
Total Executive Search |  | 92,792 |  |  | 92,203 |
On-Demand Talent |  | 109,150 |  |  | 105,136 |
Heidrick Consulting |  | 7,246 |  |  | 7,246 |
Goodwill, gross |  | 209,188 |  |  | 204,585 |
Accumulated impairment |  | (66,724) |  |  | (66,724) |
Total goodwill |  | $ | 142,464 |  |  | $ | 137,861 |
Changes in the carrying amount of goodwill by segment (for the segments that had recorded goodwill) for the nine months ended September 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 | 589 |  |  | — |  |  |  |  | 4,014 |  |  | — |  |  | 4,603 |
Goodwill | 91,329 |  |  | 1,463 |  |  |  |  | 109,150 |  |  | 7,246 |  |  | 209,188 |
Accumulated impairment losses | — |  |  | (1,463) |  |  |  |  | (58,015) |  |  | (7,246) |  |  | (66,724) |
Balance at September 30, 2025 | $ | 91,329 |  |  | $ | — |  |  |  |  | $ | 51,135 |  |  | $ | — |  |  | $ | 142,464 |
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. During the three months ended December 31, 2024, the Company conducted its annual goodwill impairment evaluation as of October 31, 2024, in accordance with ASU No. 2017-04, Intangibles - Goodwill and Other. The goodwill impairment test is completed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value of the reporting unit exceeds its fair value; however, the loss recognized is not to exceed the total amount of goodwill allocated to that reporting unit. 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 for the nine months ended September 30, 2024, and the Condensed Consolidated Statements of Cash Flows for the nine months ended September 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. Based on the results of the 2024 annual impairment evaluation, the Company determined that goodwill within the On-Demand Talent reporting unit was impaired, which resulted in an impairment charge of $43.3 million to write-off the goodwill related to the excess book value compared to fair value. Other Intangible Assets, net The Company’s other intangible assets, net by segment, are as follows:
|  | September 30, 2025 |  | December 31, 2024
Executive Search |  |  |  |
Americas |  | $ | — |  |  | $ | 5 |
Europe |  | 11 |  |  | 37 |
Total Executive Search |  | 11 |  |  | 42 |
On-Demand Talent |  | 7,633 |  |  | 10,592 |
Heidrick Consulting |  | 1,305 |  |  | 1,849 |
Total other intangible assets, net |  | $ | 8,949 |  |  | $ | 12,483 |
The carrying amount of amortizable intangible assets and the related accumulated amortization are as follows:
| Weighted Average Life (Years) |  | September 30, 2025 |  | December 31, 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Client relationships | 11.0 |  | $ | 27,370 |  |  | $ | (19,347) |  |  | $ | 8,023 |  |  | $ | 25,188 |  |  | $ | (15,371) |  |  | $ | 9,817 |
Trade name | 3.0 |  | 5,229 |  |  | (4,955) |  |  | 274 |  |  | 4,836 |  |  | (4,039) |  |  | 797 |
Software | 3.0 |  | 8,977 |  |  | (8,325) |  |  | 652 |  |  | 8,285 |  |  | (6,416) |  |  | 1,869 |
Total intangible assets | 10.1 |  | $ | 41,576 |  |  | $ | (32,627) |  |  | $ | 8,949 |  |  | $ | 38,309 |  |  | $ | (25,826) |  |  | $ | 12,483 |
Intangible asset amortization expense for the three months ended September 30, 2025, and 2024, was $1.6 million and $2.0 million, respectively. Intangible asset amortization expense for the nine months ended September 30, 2025, and 2024, was $4.9 million and $6.2 million, respectively. The Company's estimated future amortization expense related to intangible assets as of September 30, 2025, for the following years ended December 31, is as follows:
2025 | $ | 1,525 |
2026 | 2,647 |
2027 | 1,605 |
2028 | 934 |
2029 | 674 |
Thereafter | 1,564 |
Total | $ | 8,949 |

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