HSII Stock Forecast & Price Target

Heidrick & Struggles International Inc has demonstrated robust year-over-year revenue growth across its primary business segments, with the Executive Search segment increasing by 12.4%, the On-Demand Talent segment by 11.3%, and Heidrick Consulting by 13.8%, all on a constant-currency basis. In Q2/25, the company reported a revenue increase of 13.9% year-over-year, reaching $317.2 million, which surpassed both company guidance and analyst expectations. Additionally, Heidrick projects a strong growth trajectory for adjusted EBITDA at a rate of 5-8% annually, driven by effective management of general and administrative and research and development expenses.

Heidrick & Struggles International Inc is expected to face declining quarterly margins in the second half of 2025 due to increased expenses associated with hiring initiatives, which could negatively impact overall profitability. Additionally, there is growing customer hesitancy influenced by the uncertain macroeconomic environment, leading to potential delays in project commencement that may push revenue toward the lower end of guidance projections. Although demand for the company's services remains strong, this hesitancy poses a significant risk to future revenue growth and financial performance.