Prepared remarks
Ladies and gentlemen, thank you for standing by, and welcome to the Korn Ferry Third Quarter Fiscal Year 2026 Conference Call. As a reminder, this conference call is being recorded for replay purposes. We have also made available in the Investor Relations section of our website at kornferry.com, a copy of the financial presentation that we will be reviewing with you today. Before I turn the call over to your host, Mr. Gary Burnison, let me first read a cautionary statement to investors. Certain statements made in the call today, such as those relating to future performance, plans and goals constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, investors are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, which are beyond the company's control. Additional information concerning such risks and uncertainties can be found in the release relating to this presentation and in the periodic and other reports filed by the company with the SEC, including the company's annual report for fiscal year 2025 and in the company's soon to be filed quarterly report for the quarter ended January 31, 2026. Also, some of the comments today may reference non-GAAP financial measures such as constant currency amounts, EBITDA and adjusted EBITDA. Additional information concerning these measures, including reconciliations to the most directly comparable GAAP financial measures, is contained in the financial presentation and earnings release relating to this call, both of which are posted in the Investor Relations section of the company's website at www.kornferry.com. With that, I'll turn the call over to Mr. Burnison. Please go ahead, Mr. Burnison.
Okay. Thank you, Regina, and thank you, everybody, for joining us. Our outstanding performance during the quarter reflects the ongoing evolution of our firm from One Korn Ferry to We Are Korn Ferry. Fundamentally, our purpose is to enable people and organizations to be more effective. As I reflect on all the recent conversations surrounding AI and disintermediation, it strikes me that the question isn't simply will AI take away jobs? The fact is there won't be enough workers. The prism we need to look through is of a stark imbalance in labor supply. So while there may be fewer jobs compared to the last couple of decades, there will also be a lot less people in the labor force and let's be clear on what this means. It's not simply that AI will take away your job; it's that those not embracing technology in AI will be left out. Today, the world is enveloped by unprecedented levels of change, ripple effects from the pandemic, aging demographics, and technological advancement from something out of Star Wars, all of which is converging to exert greater impact on the way people live, work, and consume. For example, birth rates in the U.S. have been falling since the late 1960s. They've essentially been cut by more than half in each year. 10,000 baby boomers are retiring every day. That's 4 million a year for the next several years. Over the next 10 years, labor force participation is forecasted to decline further. And today, it's already lower than pre-COVID levels. As the labor force gets smaller, technology or immigration will need to fill the gap between supply and demand to maintain economic growth and AI will absolutely play a critical role. And at Korn Ferry, we're at the forefront of working directly with global decision-makers who are grappling with these issues as they seek answers to creating and sustaining a high-performing workforce. The outliers of achievement and performance are going to be more in demand, not less in demand. The need for highly skilled, agile talent will only increase. It will be more critical than ever to identify the 20% doing the 80%. Companies must identify, hire, develop, and retain the scarce, experienced professionals needed to lead this transformation, which invariably means doing more with less. And when we look at our own business and our clients, it supports this macroeconomic thesis. Internally, we have become far more efficient and productive. Over the last 3 years, revenue is up and costs are down. Our revenue per headcount has increased by almost 1/3. As a result, we are more profitable and we've grown our margins by more than 300 basis points. And we're continuing to drive a major transformation from One Korn Ferry to We Are Korn Ferry. What does it mean? Well, it means that we're not 5 businesses. We're one business with 5 solutions and 9,000 colleagues all with a unified mindset and it begins with client centricity, deepening our solutions with our existing clients to unlock growth. We've got more than 10,000 clients around the world but 4,500 of those represent 90% of our revenue. And when I look at that set of clients, our penetration is only 1.5 or 2 solutions per client for 2/3 of the 4,500 clients. That means there's a lot of runway to deepen the relationship. So with We Are Korn Ferry, we are taking a top-down and bottom-up systematic process to tap this growth opportunity. Our margin growth again outperformed the portfolio, up 9%, contributing 40% of our overall total revenue. Our cross-business referrals are now at a near high of 27% of our business. And at the top of the house, our work has never been more impactful. Recently, a well-known TV broadcast highlighted 7 major CEO transitions over the last few months, and we were involved in 6 of them. Further reflecting our client centricity, we've won several significant transformation engagements across the globe. A major aerospace and defense company is one of our first end-to-end Talent Suite customers, utilizing our proprietary data to make better talent decisions across 40,000-plus employees. This is a multiyear Talent Suite engagement. For me, Talent Suite isn't a product; it's a game-changing tool for business based on data beyond compare. It gives clients decades of insight into what separates great from good. And it powers the entire firm. As one of the top financial institutions in the world with nearly 100,000 employees, we're supporting a new enterprise-wide talent excellence program, incorporating our world-class assessment capability and leadership accelerator programs. And finally, we're proud to be a founding partner of the LA '28 Olympic and Paralympic games, powering the people who power the games. We're not only building their C-suite but also helping them design the organization and hire the nearly 5,000 people who will perform on the world's most inspiring stage. With that, I will turn it over to Bob Rozek. Bob, go ahead.
Great. Thanks, Gary, and good afternoon or good morning. We're very pleased with our third quarter results. This is our fifth consecutive quarter of accelerating year-over-year fee revenue growth, and we continue to deliver earnings growth, driving strong profitability and free cash flow. Our go-to-market approach continues to be intentional and focused on opportunities where we can build broader relationships with clients by selling larger integrated solutions that support their evolving talent issues. Now what's really impressive is we are doing this in an environment where business conditions and labor markets remain challenged. It is very clear that our strategy is working, and our results demonstrate that we have built a company that is different from others in the industry. We performed differently because we are different. Now turning to overall company results comparing Q3 of FY '26 to Q3 of FY '25. Our consolidated fee revenue grew 7% to $717 million, again, our fifth consecutive quarter of accelerating year-over-year growth. Earnings continued to grow in line with fee revenue and profitability remains strong. Adjusted EBITDA grew $9 million or 7.5% to $123 million. Our adjusted EBITDA margin was 17.2%, up 10 basis points, and adjusted diluted earnings per share grew $0.09 or 8% to $1.28. Total company new business, excluding RPO, grew 11%, with both consulting and digital reaching all-time quarterly highs. RPO delivered $54 million of new business in the quarter with 78% coming from new logos and 22% from renewals. Estimated remaining fees under existing contracts at the end of the quarter were $1.85 billion. It's up 11% year-over-year and we estimate that approximately 60% or about $1.1 billion will be recognized within the next year, with the remaining 40% or about $734 million estimated to be recognized beyond the next 4 quarters. And finally, our capital allocation during the quarter remained balanced. Through the end of the third quarter, we have returned about $113 million to shareholders through combined share repurchases and dividends, and we've invested $64 million back into capital expenditures, focused on Talent Suite, productivity tools, and other solution and product enhancements. In a separate announcement last week, our Board has approved a 15% increase in our quarterly cash dividend to $0.55 per share, and that's our seventh dividend increase in the last 6 years. Our cash flow remains strong, and we are confident in the outlook for our business. In addition to the detailed results found in our posted earnings presentation, here are a few company-wide and solution-specific highlights for the third quarter. You saw fee revenue growth that was very broad-based across all solutions. The interim portion of our PS&I solution grew 4%, continuing to benefit from new business referrals, which were a key factor driving our outperformance in an industry that has been challenged for more than 36 months. Our new business referrals and Marquee & Diamond Accounts program continue to be contributors of growth enabled by our We Are Korn Ferry go-to-market initiative. As Gary mentioned, new business referrals accounted for 27.2% of our consolidated fee revenue, that's up 200 basis points year-over-year, and the Marquee & Diamond Accounts continued to be strong at 40% of our total fee revenue. Also, in the third quarter, subscription and licensed new business grew 30% year-over-year and accounted for 43% of Digital's total new business. Additionally, in the third quarter, subscription and license fee revenue grew 8%. And finally, our average hourly bill rates for consulting and interim grew by 2% and 15%, respectively, again, demonstrating the high value our clients place on these solutions. Now turning to our regions. Fee revenue in the Americas was up 6%, led by growth in Executive Search and RPO. EMEA fee revenue continued to be strong, growing 13% with double-digit growth in Executive Search, Consulting, Digital, and PS&I, while APAC fee revenue declined slightly at 2% with growth in Executive Search being offset by modest weakness in other solutions. Now turning to our outlook for the fourth quarter of fiscal '26. Assuming no material negative impact from the recent Middle East conflict and no further changes in worldwide geopolitical conditions, economic conditions, financial markets, and foreign exchange rates, we expect fee revenue in the fourth quarter to range from $730 million to $750 million. Our adjusted EBITDA margin is expected to range from 17.1% to 17.3% and our consolidated adjusted diluted earnings per share as well as our GAAP diluted earnings per share to range from $1.34 to $1.40. Now in closing, our financial results over the last 5 quarters demonstrate that our unique combination of foundational assets, expertise, and capabilities truly matter to our clients. Looking to the future, I'm very excited about our opportunities to drive continued top-line growth. You heard Gary talk about our top 4,500 clients. With the rollout of Talent Suite and our We Are Korn Ferry initiative, we continue to see significant opportunity to expand those relationships in what we call the green space that is horizontal expansion where we bring additional solutions to our clients, vertical expansion where we leverage our strong C-suite relationships and provide solutions at scale to what we call the emerging talent pool down into an organization's professional ranks. We have a great playbook to run from our Marquee & Diamond Accounts where we have a strong track record of successfully expanding those relationships. I also see further opportunities in our joint go-to-market activities particularly between consulting and digital. And as I've said many times before on these calls, I am more convinced than ever that our best is yet to come. With that, we would be glad to answer any questions you may have.
Questions and answers
Our first question will come from Tobey Sommer with Truist Securities.
So markets are certainly reacting to a number of potential outcomes as a result of AI. How do you see AI impacting Korn Ferry?
I believe this will ultimately allow us to drive greater efficiency, similar to what we've achieved over the past three years. Additionally, we are targeting the high end of the labor market. In the U.S., there are only 25,000 companies with 1,000 or more employees. Analyzing the current U.S. labor force of 171 million, Korn Ferry and its clients are very much positioned at that high end, and I don't foresee a significant disintermediation of high-end talent. I believe this will create more opportunities for us, not just in improving how we provide services, but also in enhancing our client solutions and delivery. We have several engagements leveraging our proprietary AI-ready leadership assessment tool through the Talent Suite to help companies transform their workforces. The labor market data is clear; over the past 20 years, the U.S. has generated around 20 to 25 million jobs, but only about 5 million jobs are projected over the next decade, and last year saw very few new jobs created. There's a significant imbalance between the demand and supply of labor that must be addressed either through immigration or technology, and I anticipate technology will play a major role. Therefore, it's not just about AI eliminating jobs; those who do not adopt AI will likely be left behind. While the situation is still evolving, many clients we speak with have yet to fully understand how to utilize AI for efficiency gains. Looking at demographic trends, it's evident that companies will need to achieve more with fewer resources. This is a fundamental reality tied to demographics.
In that context, I want to emphasize that if we experience an increase in unemployment, do you believe the company can thrive in such an environment that is typically associated with an economic recession, especially if AI develops to the extent that some anticipate?
We're currently on our 95th quarterly earnings call. In the past, the company relied heavily on Executive Search, which was closely linked to the stock market and unemployment trends. Nowadays, we have a more diversified business with five different solutions. Over the last three years, which I view as a labor recession, we've seen fluctuations where one solution can perform well while another may not. Interestingly, looking at the Executive Search solution in the context of the labor market during this period, one might have expected it to decline based on historical trends, yet it has improved. This reflects a shift influenced by demographics, strategy, post-COVID dynamics, and a reevaluation of leadership by boards. Many individuals who were in C-suite roles during COVID are now opting out of the labor market, likely due to a focus on work-life balance. I see our clients as outliers in terms of achievement, and I don't perceive a major risk for the management roles among the 171 million individuals in the labor force. We have not replaced the human element in our work.
If I could ask one more, and I'll get back in the queue. With respect to Talent Suite, do you think that is more likely to have the biggest impact deepening existing relationships, making them stickier somehow? Or is it more about expanding into new customer relationships? And I'm sure there's an element of both. But if you had to choose which way would you go?
I believe it's the former. There's incredible potential, and we've been working on Korn Ferry for about 12 months. The key point is that 4,500 clients account for 90% of our revenue. When analyzing that client base, you'll see that about two-thirds are only using 1.5 to 2 solutions. I view Talent Suite not just as a digital solution, but as a way to empower the entire organization. Our ultimate aim is to integrate Korn Ferry's language of talent into how companies hire, design their organizations, retain staff, determine compensation, and develop talent. I see it in a broader context, with the objective being akin to a Trojan horse to incorporate the client's language. As for the digital solutions and Talent Suite, we have approximately 6,000 clients using Talent Suite, and about 70% of them are using only one product. This presents a significant opportunity. Therefore, it all comes down to a systematic approach in our go-to-market strategy and ensuring that our client service teams are focused on supporting the world's largest companies.
Our next question will come from the line of Trevor Romeo with William Blair.
Maybe I'll just follow up on the Talent Suite discussion. Because it looks like your fees under contract were up double digits for both consulting and digital, I think your subscription and license fee revenue and the new business also accelerated. So would you attribute any of that to, I guess, very early returns from Talent Suite? Is it already having an impact? Or if not, maybe you could speak to what drove that? Because it seems like a pretty meaningful acceleration for both of those solutions.
We had an excellent couple of months in terms of new business during the quarter. Our strategy is focused on strengthening relationships and enhancing client centricity. The Talent Suite had some impact, but it was minimal since we did a soft launch in November, with the full launch happening in January, and we transitioned all clients smoothly without any issues. We are now beginning a process to equip our 2,000 front-facing colleagues to engage with clients about our exceptional data, which I believe is unparalleled. I consider it a potential game-changer for our business. With over 50 years of experience in distinguishing great from good, I think this will be significant as companies need to achieve more with fewer resources in the future. However, I view it not merely as a digital solution but as integral to all our offerings: RPO, Executive Search, and Professional Search solutions. It serves as a foundational element for the firm. Historically, we have never consolidated all our intellectual property in a seamless manner where clients can benchmark their workforce easily. It’s still early in the rollout, and now we are focused on getting our front-facing colleagues to adopt this technology and introduce it to our client base effectively.
That's encouraging. And then maybe one other Talent Suite question. Now that you have it in place up and running in addition to your other sort of tech and AI investments, how do you view Korn Ferry's technology spending, I guess, in total in the next few years, whether that's CapEx or OpEx? Is the ongoing run rate here, do you think going to be higher or lower than you may have seen in the past or the same, I guess?
Well, I think Bob can probably address that more. I would just say that when you look back, we've had a fairly balanced approach to capital deployment. And call it, the last trailing 15 months or so, I think the bet has been more towards Talent Suite and CapEx. And obviously, dividend, look, we just raised the dividend again. I think it's our seventh raise in 6 years. I think you may see us lean a little bit more heavily on stock buybacks over the next few months. So there could be a slight change versus the first 9 months of this fiscal year because it was heavily tilted towards technology spend.
Yes, that's correct, Gary. Trevor, if you examine our capital expenditure, we are currently running at about $80 million to $85 million. We had expected that to decrease to a more historical level of around $60 million to $65 million, and we anticipate that drop will continue into our fiscal '27. We are currently planning for next year. As Gary mentioned, we frequently consider how to allocate our capital. I expect to see a decline in capital expenditures, but we may focus more on stock buybacks, especially given the current market conditions.
Yes. Okay. If I could maybe just ask one more on your interim business. I think you talked about the cross referrals driving outperformance there. Obviously, the labor market has been very tough the last several years, as you pointed out. So maybe just what kind of demand trends are you seeing there independent of your cross referrals? Are you seeing maybe a little pickup in conversations in the last few months? And then on the bill rate jumping up to almost 150, anything you'd call out from a mix perspective there?
Yes. It's the Korn Ferry approach. We're aiming to compete at the high end of talent due to the discussions surrounding AI and similar topics. Our focus is on the top achievers. From what I have observed in the industry, there was a slight increase noted in late November, which continued into December, and somewhat stabilized in January, with February being a bit flat due to fewer days. However, we have definitely seen growth, with a 4% increase in the quarter. This pertains specifically to the interim part of the business, where bill rates have risen. The temporary penetration rate remains at historically low levels. Over the past 25 years, the U.S. workforce has typically had about 2.5 million temp workers, and the current penetration rate is noticeably lower than usual, which I believe will not change. In fact, companies may increasingly require flexible arrangements to manage one-off projects. We’re very satisfied with how our solution has performed, and the potential for growth exists not only in the United States but also in Europe. We invested in an interim and executive interim solution in Europe about 15 or 16 months ago, and that has significantly exceeded expectations. This success is due not only to having skilled personnel but also because we have intentionally focused on our We Are Korn Ferry go-to-market strategy.
Our next question will come from the line of George Tong with Goldman Sachs.
This is Alex on for George. I wanted to see if you could provide an update on what you're seeing with sales cycles and how client spending behavior may be differing across segments and whether there's been any impact from macro sensitivity?
I haven't seen any. The reality is more of the same. I mean the BLS numbers in the United States were obviously not great. They weren't great because of healthcare. But if you just look back over many months, the jobs that have been created were in the healthcare sector and government. So I mean, to me, it's more of the same. Now what I can't comment on is the last 10 days or so. And I don't think anybody can. We have not factored that into our guidance. 10 days in, you just don't know. But I can just tell you the direction of travel for this firm is unbelievable. And I've been here through the dot-com crisis, long-term credit crisis, Great Recession, COVID, all of that, Russia, Ukraine; I can go on and on and on, the changes in China and the extended lockdowns there. I can go on and on and on, but the reality is when you look at the direction of travel, this firm is outstanding.
The other thing I would add to that too is if you look at the new business in the third quarter, Gary mentioned we had a couple of really good months. The thing I found very interesting is that usually October and March are high watermarks for new business. And then December is usually one of the slowest months because of the year-end holidays and so on. And we hit an all-time high in new business in October, and we eclipsed that in December this past year. And we saw some very large engagements being signed. In fact, 44% of the consulting new business in the quarter were engagements over $0.5 million. So as Gary mentioned before, we're playing top of the house, people really value what we bring, and they're struggling to work their way through the somewhat chaotic world that we live in today, and they're only going to do that through their talent, and that's exactly where we come in.
Yes. Got it. That's very helpful. And then I want to ask on the digital side, which saw some improvement sequentially, but was flat year-over-year on a constant currency basis. So can you touch on what drove this and how the pivot toward enterprise-oriented sales is progressing?
Yes, that’s something we need to focus on. We must continually assess our talent and ensure that all 2,000 of our consultants can engage in broader, enterprise-level discussions. When examining the digital solutions, it’s clear that there's an increasing trend towards longer-term software as a service agreements. So, I'm not just looking at revenue; I'm considering the overall performance of the firm and analyzing our win-loss rates, which we monitor and study closely. I also evaluate the status of our backlog. In this environment, am I completely satisfied? No, I'm not satisfied. However, we’ve only been working with this intellectual property in a shared framework for a few months, so it hasn’t been very long at all.
Our next question will come from the line of Josh Chan with UBS.
I guess on your consulting side of business, this is usually a business that is stronger when the economy is more stable, I guess. And so could you just talk to the recent strengths in this consulting new business and what are some of the common threats that you're getting from sort of the half million-plus engagements that kind of Bob alluded to earlier?
It's around transformation. It's around org strategy and transformation. That would be the big ticket theme for those larger engagements. And I read something last night, there was a report that consulting firms in calendar 2025 grew something like 5% or 5.5%. You have to kind of question that a little bit. But I look at our overall firm over the past, call it, 12 months, and I'm saying, hey, we're in line or better recognizing that part of our business deals with the labor markets, which haven't been exactly fantastic.
Josh, the other thing I would say, too, is if you look at the consulting business right now, Gary talked about transformation. A lot of companies are looking at their talent. Now are they ready to be productive in an AI world, and we have solutions that look at AI-ready leaders, AI-ready talent, and that's where you see the assessment and succession having strong year-over-year growth in that quarter as well.
Okay. Okay. That's great color. And then maybe a quick question on margin. So if Korn Ferry continues to grow at the similar revenue growth rate that you're kind of guiding to, what's the right way to think about kind of margin expansion for the company as a whole going forward?
In the current investment period, we anticipate a growth rate of 16% to 18%. This is influenced by our success in mergers and acquisitions, as well as the opportunities available within the interim market and solutions. The mix of these opportunities significantly affects our projections. Additionally, we must ensure we are making appropriate investments in our talent. Given these factors, I believe our projections are reasonable for the current investment horizon. Over the past three to four years, particularly following the pandemic which likely ended around late 2022 to early 2023, our headcount per employee has increased by nearly 35%. This indicates our ability to generate client impact and enhance profitability.
I wanted to follow up on the previous questions. Gary, regarding the investment horizon, how long are you considering that 16% to 18%? I'm noticing that your revenue is increasing. However, if we look at the charts, the number of consultants on staff has largely remained the same or decreased. I'm trying to understand how you perceive long-term efficiency, especially with around 2,000 front-facing consultants and 9,000 colleagues in total, while we are likely still in the early stages of AI implementation. How are you planning for the long term in this regard, especially considering the necessary investments in people?
Clients have asked me that question as they evaluate their organizations. This is not specifically related to Korn Ferry, and it's important to note that this is an estimate. If we look ahead over the next 5 to 7 years, considering the demographic trends we've discussed, including a shrinking labor force and fewer people entering the workforce—not just in the United States but in other countries too—one has to consider how to fill that gap. The options are either immigration or technology. Based on the trends in labor force participation and the potential of AI, I advise clients that if we consider a timeframe of around 5 years, the average expectation would be that their labor force could be reduced by about 15%. This is not applicable to every company, industry, or sector, but generally, the overarching theme aligns with the situation in the United States: achieving more output with fewer resources. This is the guidance I have been providing to clients.
Great. Where do you think you stand in terms of leveraging AI to improve efficiency? Are we just getting started, or have we made significant progress?
We've taken the field. Look, the reality with all this talk, I think that many, many, many companies are in the first inning here. But there's enough there where you say, okay, I get it. Technology can definitely make you more efficient. And then the question is behavioral change. So the real question is people don't change unless there's a reason to change. And the question for leadership of companies is how do you create that change? How do you get people to truly embrace the ever-evolving technology that's out there? That's really the question. And I think, look, the reality is, I think most people are in the first inning, Mark.
Okay. Great. And then with regards to Talent Suite, can you talk a little bit about like when you're doing these big deals, and you mentioned the aerospace company with 40,000 employees, when you're pricing this and you're pricing it for complete access to Talent Suite, how do you price it? How should we think about that sort of lift in terms of revenue?
The size of the company and the number of seats generally guide our approach. Whether it's a current client of Korn Ferry or not, we've noticed that CEOs often inquire if their workforce is prepared for AI. A lot of that depends on the organization's ability to handle uncertainty. Typically, we would assess around 5,000 to 10,000 employees to create a comprehensive report that outlines their thinking and leadership styles. Our research indicates what a workforce ready for the future should look like, identifies any gaps, and offers a plan for improvement. Additionally, the level of consulting involved can influence this process.
Yes, it is Mark. One of the things is our fee revenues were well above our guidance range; they attract more bonus dollars. So we had an opportunity to get caught up there on the bonus that we provide for folks that put a little bit of downward pressure on the margin in the quarter.
Got it. Okay. That's great. And then, Gary, one last one for you, if you'll take it. And I know you were only 10 days in, but generally speaking, like after all of the various things that you've gone through, what's your expectation in terms of like how long this would have to continue before plans would change or that you'd actually see a meaningful difference just in terms of client behavior?
Well, this is just one person's viewpoint. I don't think anyone really knows the answer to that. In the United States, transportation and transportation costs, including gas, account for 17% to 20% of consumer spending. Elevated oil prices negatively impact consumer spending, especially as we are already facing a K-shaped economy and a cost of living crisis. Clearly, that’s a negative factor. Regarding how much we’ve opened up, I am the least qualified to answer that, but it’s certainly a consideration. Our colleagues in the Middle East, where we have a remarkable business, are continuing to operate under very challenging circumstances, similar to our colleagues in Ukraine. They are working from home and taking safety precautions. As of last week, this situation hasn't significantly affected our service delivery. However, I believe it will take about another 90 days before we truly understand what all of this means beyond just oil prices.
And it appears there are no further questions at this time. Mr. Burnison?
Okay. Thank you all for the questions. I'm incredibly proud of this organization and to be a founding partner, which may seem a ways away of LA 28, but it's not. And I think that will highlight just the power of our organization for sure. We're excited about that. So with that, thank you for your questions, and we'll talk to you next time. Bye-bye.
Ladies and gentlemen, this conference call will be available for replay for one week starting today running through the end of the day, March 16, 2026 and again midnight. You may access the Echo replay service by dialing (800) 770-2030 and entering the access code 3268315, followed by the pound key. Additionally, the replay will be available for playback at the company's website, www.kornferry.com in the Investor Relations section. This concludes today's call. Thank you all for joining. You may now disconnect.