Strategic Talent Acquisition to Address White Space Opportunities
Heidrick & Struggles plans to grow its talent base significantly in the second half of 2025, focusing on hiring early-career professionals from industry and professional services sectors.
The company aims to leverage its distinctive culture and internal development strategies to add talent more effectively, with a focus on creating marketing paths for growth.
Hiring is expected to be a smooth process throughout the second half, with investments primarily aimed at setting up for 2026 and beyond, and some hires from the first half coming online in the second half.
Adjusted EBITDA improved by $5 million to $34 million, with an adjusted EBITDA margin expansion of 40 basis points to 10.7%.
Adjusted net income was $18.1 million and adjusted diluted EPS was $0.85, a 27% increase over last year.
Cash position strengthened to $400 million, up $103 million from June 2024.
Executive Search adjusted EBITDA was $54.6 million with a margin of 22.9%.
Executive Search revenue grew 13% to $238 million, with regional growth of 9% in the Americas, 31% in Europe, and 12% in APAC.
General and administrative expenses improved by $4.3 million to $42.2 million, or 13.3% of net revenue, a 340 basis point improvement from the prior year quarter.
Heidrick Consulting revenue increased 17% to $31 million, with adjusted EBITDA positive at $0.6 million.
On-Demand Talent revenue increased 14% to $48 million, turning adjusted EBITDA positive at $1 million versus a loss of $1.6 million last year.
Q2 2025 revenue reached approximately $317 million, a 14% increase compared to Q2 2024.
R&D spend was $6 million or 1.9% of net revenue, focused on technology investments powering all business lines.
Salary and benefits increased 17.6% year-over-year, driven by higher base salaries, payroll taxes, deferred compensation, talent acquisition, retention costs, retirement benefits, and stock compensation.
The acquisitions are aligned with DXP’s strategy to diversify product offerings, expand into new industries like water and industrial markets, and increase geographical presence.
Management emphasizes that acquisitions are well-run and growing, with no hesitation from customers or macroeconomic factors impacting deal flow.
The company’s focus on acquisitions is also driven by the desire to leverage operational efficiencies and expand its technical expertise, especially in high-margin segments.
Dafinchi