HSII Stock Forecast & Price Target

Heidrick & Struggles International Inc. demonstrates a strong financial performance, with significant year-over-year revenue growth across its operating segments; the Executive Search segment, accounting for 75% of total revenue, saw an increase of 12.4% in constant currency, while Heidrick Consulting grew by 13.8%. For the second quarter of 2025, the company reported revenue of $317.2 million, representing a year-over-year increase of 13.9%, which surpassed both internal estimates and consensus forecasts. Furthermore, Heidrick anticipates that adjusted EBITDA will grow at an accelerated rate of 5-8% annually, supported by effective management of general and administrative, as well as research and development expenses.

Heidrick & Struggles International Inc's outlook is negatively impacted by anticipated declining quarterly margins in the second half of 2025, primarily due to rising expenses associated with hiring initiatives. Additionally, there is increasing customer hesitancy driven by macroeconomic uncertainties, which may lead to clients postponing projects and consequently pushing revenue toward the lower end of guidance expectations. Despite strong demand for services, these potential setbacks indicate a challenging financial landscape for the company.