Revenue growth reached 14.2% in 2025Q3, though gross margins contracted to 20.9% as rising consultant compensation costs pressured overall profitability.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 1.21B | 1.12B | 1.04B | 1.08B | 1.01B | 629.37M | 725.61M | 735.65M | 640.06M | 600.91M | 548.31M | 513.24M | 480.99M | 465.08M | 553.98M | 513.24M | 414.72M | 644.86M | 648.27M | 501.99M | 432.85M | 398.18M | 317.93M | 350.71M | 455.53M | 594.39M | 415.8M | 125M |
| Revenue Growth % | 11.07% | 7.15% | -3.91% | 7.45% | 60.24% | -13.26% | -1.36% | 14.94% | 6.52% | 9.59% | 6.83% | 6.7% | 3.42% | -16.05% | 7.94% | 23.76% | -35.69% | -0.53% | 29.14% | 15.97% | 8.71% | 25.24% | -9.35% | -23.01% | -23.36% | 42.95% | 232.64% | - |
| Cost of Goods Sold | 929.9M | 834.58M | 765.07M | 808.11M | 770.2M | 454.82M | 506.17M | 506.35M | 434.22M | 400.07M | 369.38M | 337.45M | 319.5M | 309.5M | 26.19M | 20.14M | 19.07M | 28.96M | 447.56M | 352.19M | 20.55M | 251.19M | 223.54M | 242.33M | 0 | -19.06M | -10.6M | -4.6M |
| COGS % of Revenue | - | 74.8% | 73.48% | 74.58% | 76.37% | 72.27% | 69.76% | 68.83% | 67.84% | 66.58% | 67.37% | 65.75% | 66.42% | 66.55% | 4.73% | 3.93% | 4.6% | 4.49% | 69.04% | 70.16% | 4.75% | 63.08% | 70.31% | 69.1% | - | -3.21% | -2.55% | -3.68% |
| Gross Profit | 283.17M | 281.1M | 276.11M | 275.48M | 238.28M | 174.55M | 219.45M | 229.31M | 205.84M | 200.84M | 178.93M | 175.79M | 161.49M | 155.58M | 527.79M | 493.09M | 395.65M | 615.9M | 200.7M | 149.81M | 412.3M | 146.99M | 94.4M | 108.38M | 455.53M | 613.46M | 426.4M | 129.6M |
| Gross Margin % | 23.34% | 25.2% | 26.52% | 25.42% | 23.63% | 27.73% | 30.24% | 31.17% | 32.16% | 33.42% | 32.63% | 34.25% | 33.58% | 33.45% | 95.27% | 96.07% | 95.4% | 95.51% | 30.96% | 29.84% | 95.25% | 36.92% | 29.69% | 30.9% | 100% | 103.21% | 102.55% | 103.68% |
| Gross Profit Growth % | - | 1.81% | 0.23% | 15.61% | 36.51% | -20.46% | -4.3% | 11.4% | 2.49% | 12.25% | 1.78% | 8.85% | 3.8% | -70.52% | 7.04% | 24.63% | -35.76% | 206.87% | 33.97% | -63.66% | 180.49% | 55.71% | -12.9% | -76.21% | -25.74% | 43.87% | 229.01% | - |
| Operating Expenses | 246.2M | 273.57M | 200.76M | 163.21M | 140.01M | 210.08M | 155.94M | 160.45M | 165.97M | 165.6M | 144.86M | 149.14M | 145.93M | 135.13M | 496M | 473.95M | 395.64M | 560.37M | 121.2M | 99.35M | 368.32M | 368.97M | 310.79M | 349.24M | 513.43M | 584.39M | 392.3M | 145.2M |
| OpEx % of Revenue | - | 24.52% | 19.28% | 15.06% | 13.88% | 33.38% | 21.49% | 21.81% | 25.93% | 27.56% | 26.42% | 29.06% | 30.34% | 29.06% | 89.53% | 92.34% | 95.4% | 86.9% | 18.7% | 19.79% | 85.09% | 92.66% | 97.75% | 99.58% | 112.71% | 98.32% | 94.35% | 116.16% |
| Selling, General & Admin | 164.82M | 167M | 156.49M | 142.8M | 130.75M | 124.74M | 151.81M | 160.45M | 165.97M | 165.6M | 144.86M | 149.14M | 145.93M | 135.13M | 496M | 475.02M | 397.3M | 125.06M | 121.2M | 99.35M | 368.32M | 368.97M | 310.79M | 349.24M | 460.2M | 565.32M | 381.7M | 140.6M |
| SG&A % of Revenue | - | 14.97% | 15.03% | 13.18% | 12.96% | 19.82% | 20.92% | 21.81% | 25.93% | 27.56% | 26.42% | 29.06% | 30.34% | 29.06% | 89.53% | 92.55% | 95.8% | 19.39% | 18.7% | 19.79% | 85.09% | 92.66% | 97.75% | 99.58% | 101.02% | 95.11% | 91.8% | 112.48% |
| Research & Development | 24.9M | 23.05M | 22.7M | 20.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.07% | 2.18% | 1.88% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 83.52M | 21.56M | 0 | 9.27M | 85.34M | 4.13M | 494K | 0 | 0 | 0 | 0 | 0 | -495K | 0 | 0 | 0 | 28.96M | 0 | 0 | 0 | 21.8M | 52.13M | 74.67M | 53.23M | 19.06M | 10.6M | 4.6M |
| Operating Income | 36.97M | 7.53M | 75.36M | 112.27M | 98.26M | -35.53M | 63.51M | 68.86M | -26.52M | 35.23M | 34.06M | 26.65M | 15.56M | 19.64M | -10.91M | 19.14M | -26.71M | 55.54M | 79.5M | 50.46M | 43.98M | -368.97M | -310.79M | -349.24M | -513.43M | 29.07M | 34.1M | -15.6M |
| Operating Margin % | 3.05% | 0.67% | 7.24% | 10.36% | 9.74% | -5.65% | 8.75% | 9.36% | -4.14% | 5.86% | 6.21% | 5.19% | 3.24% | 4.22% | -1.97% | 3.73% | -6.44% | 8.61% | 12.26% | 10.05% | 10.16% | -92.66% | -97.75% | -99.58% | -112.71% | 4.89% | 8.2% | -12.48% |
| Operating Income Growth % | - | -90.01% | -32.88% | 14.25% | 376.57% | -155.94% | -7.76% | 359.61% | -175.28% | 3.44% | 27.8% | 71.24% | -20.74% | 279.93% | -157.01% | 171.67% | -148.1% | -30.15% | 57.57% | 14.73% | 111.92% | -18.72% | 11.01% | 31.98% | -1866.05% | -14.74% | 318.59% | - |
| EBITDA | 57.43M | 26.39M | 93.86M | 122.87M | 117.82M | -8.87M | 73.88M | 81.38M | -11.75M | 51.67M | 47.76M | 41.97M | 31.84M | 30.44M | -652K | 30.73M | -15.45M | 66.08M | 90.78M | 60.84M | 55.22M | -355.78M | -296.71M | -333.98M | -491.27M | 48.14M | 44.7M | -11M |
| EBITDA Margin % | 4.73% | 2.36% | 9.02% | 11.34% | 11.68% | -1.41% | 10.18% | 11.06% | -1.84% | 8.6% | 8.71% | 8.18% | 6.62% | 6.55% | -0.12% | 5.99% | -3.72% | 10.25% | 14% | 12.12% | 12.76% | -89.35% | -93.33% | -95.23% | -107.84% | 8.1% | 10.75% | -8.8% |
| EBITDA Growth % | -19.98% | -71.89% | -23.61% | 4.28% | 1427.89% | -112.01% | -9.21% | 792.65% | -122.74% | 8.18% | 13.8% | 31.8% | 4.6% | 4768.71% | -102.12% | 298.94% | -123.37% | -27.21% | 49.22% | 10.17% | 115.52% | -19.91% | 11.16% | 32.02% | -1120.59% | 7.69% | 506.36% | - |
| D&A (Non-Cash Add-back) | 20.45M | 18.86M | 18.51M | 10.6M | 19.56M | 26.66M | 10.37M | 12.52M | 14.77M | 16.43M | 13.7M | 15.31M | 16.27M | 10.8M | 10.26M | 11.58M | 11.27M | 10.54M | 11.28M | 10.38M | 11.24M | 13.19M | 14.07M | 15.26M | 22.16M | 19.06M | 10.6M | 4.6M |
| EBIT | 88.97M | 73.94M | 82.6M | 112.27M | 102.06M | 49.81M | 67.64M | 68.86M | 39.87M | 35.23M | 34.06M | 26.65M | 15.56M | 20.45M | 31.8M | 19.14M | 9K | 55.54M | 79.5M | 50.46M | 43.98M | 29.21M | 7.15M | 1.47M | -57.89M | 29.07M | 34.1M | -11.4M |
| Net Interest Income | 15.18M | 0 | 0 | 5.34M | 302K | 204K | 2.88M | 1.14M | 385K | 244K | -122K | -358K | -175K | 1.12M | 1.4M | 813K | 1.2M | 5.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 15.18M | 0 | 0 | 5.34M | 302K | 204K | 2.88M | 1.14M | 385K | 244K | 0 | 0 | 0 | 1.12M | 1.4M | 813K | 1.2M | 5.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 122K | 358K | 175K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 25.47M | 23.12M | 13.31M | 2.97M | 7.76M | 4.13M | 5.78M | 1.64M | -2.9M | 2.53M | -2.51M | -2.47M | -2.18M | 623K | -3.86M | -2.2M | -29.71M | 6.72M | 7.63M | 4.81M | -15.5M | 58.44M | -28.97M | -53.12M | -69.85M | 16.09M | -13.2M | -4.5M |
| Pretax Income | 62.44M | 30.65M | 88.67M | 115.24M | 106.03M | -31.4M | 69.29M | 70.49M | -29.42M | 37.77M | 31.55M | 24.19M | 13.39M | 20.26M | -14.78M | 16.95M | -29.7M | 62.25M | 87.14M | 55.27M | 28.48M | 87.1M | -21.82M | -51.65M | -71.52M | 45.16M | 20.9M | -21.9M |
| Pretax Margin % | 5.15% | 2.75% | 8.52% | 10.63% | 10.51% | -4.99% | 9.55% | 9.58% | -4.6% | 6.28% | 5.75% | 4.71% | 2.78% | 4.36% | -2.67% | 3.3% | -7.16% | 9.65% | 13.44% | 11.01% | 6.58% | 21.87% | -6.86% | -14.73% | -15.7% | 7.6% | 5.03% | -17.52% |
| Income Tax | 25.39M | 21.92M | 34.26M | 35.75M | 33.46M | 6.31M | 22.42M | 21.2M | 19.22M | 22.35M | 14.42M | 17.39M | 7.04M | 14.02M | 18.95M | 9.46M | -8.79M | 23.18M | 30.67M | 21.02M | -10.74M | 4.79M | 58.84M | -11.49M | -24.09M | 25.75M | 15.1M | -4.5M |
| Effective Tax Rate % | 40.67% | 71.53% | 38.64% | 31.02% | 31.55% | -20.09% | 32.36% | 30.07% | -65.32% | 59.19% | 45.71% | 71.9% | 52.59% | 69.2% | -128.24% | 55.79% | 29.6% | 37.23% | 35.2% | 38.04% | -37.69% | 5.5% | -269.63% | 22.25% | 33.69% | 57.01% | 72.25% | 20.55% |
| Net Income | 37.05M | 8.73M | 54.41M | 79.49M | 72.57M | -37.71M | 46.87M | 49.3M | -48.63M | 15.41M | 17.13M | 6.8M | 6.35M | 6.24M | -33.72M | 7.49M | -20.91M | 39.07M | 56.46M | 34.24M | 39.22M | 82.31M | -80.67M | -40.16M | -42.93M | 19.42M | 5.8M | -17.4M |
| Net Margin % | 3.05% | 0.78% | 5.23% | 7.34% | 7.2% | -5.99% | 6.46% | 6.7% | -7.6% | 2.56% | 3.12% | 1.32% | 1.32% | 1.34% | -6.09% | 1.46% | -5.04% | 6.06% | 8.71% | 6.82% | 9.06% | 20.67% | -25.37% | -11.45% | -9.42% | 3.27% | 1.39% | -13.92% |
| Net Income Growth % | -3.92% | -83.96% | -31.55% | 9.53% | 292.46% | -180.45% | -4.92% | 201.36% | -415.55% | -10.03% | 152.05% | 7.09% | 1.71% | 118.5% | -550.05% | 135.84% | -153.51% | -30.8% | 64.89% | -12.69% | -52.35% | 202.03% | -100.86% | 6.44% | -321.08% | 234.78% | 133.33% | - |
| Net Income (Continuing) | 37.05M | 8.73M | 54.41M | 79.49M | 72.57M | -37.71M | 46.87M | 49.3M | -48.63M | 15.41M | 17.13M | 6.8M | 6.35M | 6.24M | -33.72M | 7.49M | -20.91M | 39.07M | 56.46M | 34.24M | 39.22M | 82.31M | -80.67M | -40.16M | -47.42M | 19.42M | 5.8M | -17.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.74 | 0.41 | 2.62 | 3.86 | 3.58 | -1.95 | 2.40 | 2.52 | -2.60 | 0.81 | 0.92 | 0.37 | 0.35 | 0.34 | -1.90 | 0.42 | -1.24 | 2.20 | 2.97 | 1.81 | 1.98 | 4.11 | -4.43 | -2.22 | -2.28 | 0.95 | 0.42 | -1.11 |
| EPS Growth % | -6.49% | -84.35% | -32.12% | 7.82% | 283.59% | -181.25% | -4.76% | 196.92% | -420.99% | -11.96% | 148.65% | 5.71% | 2.94% | 117.89% | -552.38% | 133.87% | -156.36% | -25.93% | 64.09% | -8.59% | -51.82% | 192.78% | -99.55% | 2.63% | -340% | 126.19% | 137.84% | - |
| EPS (Basic) | - | 0.43 | 2.72 | 4.02 | 3.72 | -1.95 | 2.45 | 2.61 | -2.60 | 0.83 | 0.93 | 0.37 | 0.35 | 0.35 | -1.90 | 0.43 | -1.24 | 2.33 | 3.16 | 1.91 | 2.08 | 4.35 | -4.43 | -2.22 | -2.28 | 1.02 | 0.42 | -1.11 |
| Diluted Shares Outstanding | 21.32M | 21.19M | 20.77M | 20.62M | 20.3M | 19.3M | 19.55M | 19.53M | 18.73M | 19.04M | 18.71M | 18.43M | 18.23M | 18.12M | 17.78M | 17.87M | 16.9M | 17.73M | 18.98M | 18.92M | 19.76M | 20.01M | 18.22M | 18.11M | 18.84M | 20.39M | 13.89M | 15.7M |
| Basic Shares Outstanding | 21.26M | 20.29M | 20.03M | 19.76M | 19.52M | 19.3M | 19.1M | 18.92M | 18.71M | 18.54M | 18.33M | 18.21M | 18.08M | 17.97M | 17.78M | 17.44M | 16.9M | 16.75M | 17.85M | 17.93M | 18.9M | 18.94M | 18.22M | 18.11M | 18.84M | 18.98M | 13.64M | 15.7M |
| Dividend Payout Ratio | - | 148.06% | 23.04% | 15.68% | 16.13% | - | 24.45% | 20.65% | - | 64.59% | 58.32% | 145.12% | 114.38% | 192.16% | - | 129.4% | - | 22.39% | 4.06% | - | - | - | - | - | - | - | - | - |
Operating margin volatility
According to recent quarterly filings, HSII achieved a 14.2% year-over-year revenue increase in 2025Q3, signaling that the firm's diversification into on-demand talent and consulting services is successfully capturing market share despite a cooling broader economic environment that typically pressures executive search volumes and corporate hiring cycles.
The acceleration in top-line growth suggests that the firm's strategic pivot toward non-search segments is providing a necessary buffer against cyclical volatility. Investors should monitor whether this growth is sustainable or if it reflects a temporary surge in project-based demand that may normalize in subsequent quarters.
As reported in financial statements, HSII's gross margin contracted to 20.9% in 2025Q3, reflecting a notable decline from the 24.3% observed in the prior quarter and highlighting the firm's ongoing struggle to maintain pricing power amidst rising consultant compensation costs and competitive pressures in the professional services sector.
The erosion of gross margins indicates that the firm is facing significant cost-push inflation, likely driven by the need to retain high-value talent in a competitive labor market. This trend warrants further investigation into whether the firm can pass these costs to clients or if structural margin degradation is becoming a permanent feature of the current business mix.
Based on the provided income statement data, HSII's operating margin of 5.9% in 2025Q3 demonstrates a failure to achieve meaningful operating leverage, as the firm's fixed SG&A expenses continue to absorb a disproportionate share of gross profit gains during periods of revenue expansion.
The inability to scale operating income in lockstep with revenue suggests that the firm's cost structure remains overly rigid. This lack of efficiency may indicate that recent investments in consulting and on-demand talent have yet to reach the critical mass required to drive meaningful bottom-line expansion.
Analysis of the firm's historical income statements reveals significant earnings volatility, with net income swinging from a $15.0 million loss in 2024Q4 to a $17.6 million profit in 2025Q3, largely driven by non-operating items and periodic charges that obscure the underlying quality of the firm's core profitability.
The frequent fluctuations in net income suggest that investors should focus on normalized earnings rather than headline figures, as the current reporting is heavily impacted by non-recurring charges. The persistent use of stock-based compensation, which averaged roughly $3.5 million per quarter, further dilutes the quality of reported earnings and warrants careful scrutiny.
While the firm maintains a robust cash position, the market's current valuation appears to ignore the risks of sustained margin compression, as evidenced by the 2024Q4 operating loss which highlights the firm's vulnerability to sudden shifts in corporate hiring demand and the high fixed cost of its consultant base.
Short-term growth in revenue may be masking a deeper structural issue where the firm is essentially buying growth through higher compensation costs. If the current revenue momentum stalls, the firm's high fixed-cost base could lead to rapid earnings deterioration, challenging the narrative that the business has successfully transitioned to a more resilient model.
Quick answers to the most common questions about buying HSII stock.
For fiscal year 2024, Heidrick & Struggles International, Inc. (HSII) reported total revenue of $1.12B. This represents a 792.5% increase compared to $125.0M in 1998.
Heidrick & Struggles International, Inc. (HSII) is profitable, generating $8.7M in net income for the fiscal year ending 2024 with a net profit margin of 0.8%.
Heidrick & Struggles International, Inc. (HSII) reported an operating income of $7.5M, resulting in an operating profit margin of 0.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Heidrick & Struggles International, Inc. (HSII) generated $281.1M in gross profit for the year, representing a gross profit margin of 25.2%. This demonstrates the company's core pricing power and production efficiency.