KFY earnings analysis
What we found in KFY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
The supplied 10-Q excerpt does not include the income statement, segment disclosures, balance-sheet totals, or cash-flow statement, so revenue, margins, EPS, free cash flow, and segment trends cannot be determined from the filing text provided. The disclosed market-risk profile was broadly stable: foreign-currency losses were $0.9 million in both comparable quarters, COLI borrowings declined slightly to $72.1 million, and Facility borrowings were zero. Management reported effective disclosure controls, while the filing stated that there were no material changes to the Form 10-K risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Currency losses unchanged
- Foreign-currency losses were $0.9 million in both the three months ended July 31, 2026 and July 31, 2025, indicating no year-over-year change in the reported transaction-loss impact.
- No Facility borrowings
- The company had no amounts outstanding under its Facility as of July 31, 2026, limiting direct exposure to variable-rate Facility borrowings.
- COLI borrowings broadly stable
- Borrowings against the CSV of COLI contracts were $72.1 million at July 31, 2026 versus $72.2 million at April 30, 2026, a $0.1 million decrease.
- Currency sensitivity quantified
- A 10% increase or decrease in the ten largest currency exposure balances could result in a foreign-exchange gain or loss of $15.8 million, and the company uses foreign-currency forward contracts to offset certain exposures.
- Repurchase authorization unused
- The company withheld 330,514 shares for taxes on vested restricted shares during the quarter, while reporting no share repurchases under its program during the first quarter of fiscal 2027; $227.7 million remained available under the program.
- Controls assessed effective
- Management concluded that disclosure controls and procedures were effective as of July 31, 2026, and reported no changes in internal control that materially affected or were reasonably likely to materially affect reporting.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material foreign-exchange exposure
- The filing quantifies foreign-exchange exposure at a potential $15.8 million gain or loss for a 10% move in the relevant currencies. Foreign-currency losses were already $0.9 million in each of the three months ended July 31, 2026 and 2025.
- Variable-rate COLI debt
- Borrowings against COLI contract cash surrender value totaled $72.1 million as of July 31, 2026 and bear interest primarily at variable rates, exposing results to changes in interest costs despite the offsetting crediting-rate adjustment.
- Covenant limits capital returns
- The 10-Q states there were no material changes to the Form 10-K risk factors, but the A&R Credit Agreement limits dividends and repurchases if the consolidated net leverage ratio exceeds 5.00 to 1.00 or the company is not in pro forma covenant compliance.
What they said about what is next.
The supplied 10-Q excerpt does not contain quantitative revenue or EPS guidance. The filing states that there were no material changes to the risk factors described in the Form 10-K.
The filing reads about the same as the one before it.
What came before.
- 10-K · June 26, 2026
- Korn Ferry's fiscal year 2026 results highlight substantial revenue growth of 7% year-over-year to $2.91 billion, boosted by diverse sectors such as Professional Search & Interim and Executive Search. The company also…
- 10-Q · March 11, 2026
- Korn Ferry reported Q3 revenue of $725,042,000 and diluted EPS of $1.23 for the three months ended January 31, 2026. Revenue and operating income improved year-over-year, while revenue, gross and operating margins…
- 10-Q · December 9, 2025
- Korn Ferry reported quarterly revenue of $729.8M (three months ended October 31, 2025) vs $681.96M a year ago, driving higher operating income of $98.755M and diluted EPS of $1.36. Operating margin expanded to ~13.54%…
- 10-Q · September 9, 2025
- Korn Ferry reported a quarterly revenue beat with total revenue of $715,543,000 (vs $682,761,000 a year ago), driving higher operating income and diluted EPS. Operating income increased to $83,448,000 and diluted EPS to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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