Robert Half Inc. RHI reported worse-than-expected first-quarter financial results on Wednesday.Robert Half posted quarterly earnings of 17 cents per share, missing market estimates of 36 cents per share. The company's quarterly sales came in at $1.35 billion missing estimates of $1.41 billion.“For the first quarter of 2025, global enterprise revenues were $1.352 billion, down 8 percent from last year’s first quarter on a reported basis, and down 6 percent on an adjusted basis. Business confidence levels mod ...

Core Insights - Robert Half International Inc. (RHI) reported first-quarter 2025 results that were narrower than expected, with earnings of 17 cents per share missing consensus by 52.8% and declining 72.1% year over year. Revenues of $1.35 billion also lagged consensus by 3.4% and decreased 8.4% year over year [1] Group 1: Financial Performance - Talent Solutions revenues were $875.3 million, down 11% year over year and below the estimate of $914.2 million. U.S. Talent Solutions revenues were $676 million, down 10% year over year, while non-U.S. revenues decreased 15% to $199 million [2] - Protiviti revenues were $477 million, up 5% year over year but below the expectation of $503.1 million. U.S. Protiviti revenues increased 4% to $387 million, and non-U.S. revenues rose 8% to $90 million. Currency exchange rate movements negatively impacted revenues by $12 million [3] - Adjusted gross profit was $495 million, down 13.3% year over year, with an adjusted gross profit margin of 36.6%, declining 210 basis points year over year [4] Group 2: Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $342.5 million, down from $541 million in the first quarter of 2024. Operating cash was $59 million, and capital expenditures were $12.4 million. RHI paid out $61 million in dividends [5] Group 3: Future Guidance - For the second quarter of 2025, RHI expects revenues between $1.31 billion and $1.41 billion, with the midpoint of $1.36 billion below the current Zacks Consensus Estimate of $1.44 billion. EPS is expected to be between 36 cents and 46 cents, while the consensus estimate is 62 cents [6] - The company anticipates 63.2 billing days in the second quarter of 2025, with capital expenditures projected between $15 million and $25 million. For the full year, capital expenditures are expected to be $75 million to $95 million, with an estimated tax rate between 31% and 33% [7]

Core Insights - Robert Half (RHI) reported a revenue of $1.35 billion for the quarter ended March 2025, reflecting a year-over-year decline of 8.4% and an EPS of $0.17 compared to $0.61 a year ago, indicating significant underperformance [1] - The reported revenue was 3.38% lower than the Zacks Consensus Estimate of $1.4 billion, and the EPS fell short by 52.78% compared to the consensus estimate of $0.36 [1] Revenue Performance - Total contract talent solutions revenue was $763.21 million, missing the average estimate of $802.83 million by three analysts, representing a year-over-year decline of 14% [4] - Contract talent solutions in Finance & Accounting generated $562.93 million, below the estimated $575.43 million, marking a year-over-year decrease of 12.3% [4] - Administrative and customer support contract talent solutions revenue was $165.63 million, falling short of the $179.17 million estimate, with a year-over-year decline of 17.2% [4] - Protiviti service revenues were $476.61 million, slightly below the estimate of $494.69 million, but showed a year-over-year increase of 2.7% [4] - Permanent placement talent solutions revenue was $112.09 million, below the estimate of $115.47 million, reflecting a year-over-year decline of 10.2% [4] - Technology contract talent solutions revenue was $152.54 million, missing the estimate of $157.85 million, with a year-over-year decline of 3.4% [4] Gross Margin Analysis - Gross margin for contract talent solutions was $296.93 million, below the average estimate of $316.09 million from two analysts [4] - Gross margin for Protiviti was $90.25 million, compared to the average estimate of $105.29 million from two analysts [4] - Gross margin for permanent placement talent solutions was $111.86 million, below the estimate of $117.42 million from two analysts [4] Stock Performance - Robert Half's shares have returned -13.5% over the past month, underperforming the Zacks S&P 500 composite's -6.6% change, and the stock currently holds a Zacks Rank 5 (Strong Sell) [3]

Core Insights - Robert Half Inc. reported a decline in revenues and net income for the first quarter of 2025 compared to the same period in 2024, with revenues of $1.352 billion, down 8% year-over-year, and net income of $17 million, down 73% year-over-year [1][2]. Financial Performance - For Q1 2025, net income was $17 million, or $0.17 per share, compared to $64 million, or $0.61 per share, in Q1 2024 [1][2]. - Total revenues for Q1 2025 were $1.352 billion, down from $1.476 billion in Q1 2024, representing an 8% decrease on a reported basis and a 6% decrease on an adjusted basis [2][13]. Operational Insights - The decline in business was attributed to moderated client confidence due to economic uncertainties, which elongated decision cycles and subdued hiring activity [2]. - The company remains optimistic about capitalizing on emerging opportunities through its strong brand, technology, and unique business model that includes both professional staffing and consulting services [2]. Employee Engagement and Recognition - Robert Half has received significant recognition in 2025, including being named one of America's Most Innovative Companies by Fortune and one of America's Best Large Employers by Forbes [3]. - High levels of employee engagement have led to both Robert Half and Protiviti being recognized as two of Fortune's 100 Best Companies to Work For [3]. Service Revenue Breakdown - Service revenues for contract talent solutions were $763.2 million in Q1 2025, down from $887.1 million in Q1 2024 [13]. - Permanent placement talent solutions generated $112.1 million in Q1 2025, compared to $124.8 million in Q1 2024 [13]. - Protiviti's revenues were $476.6 million in Q1 2025, slightly up from $464.1 million in Q1 2024 [13]. Selected Balance Sheet Information - As of March 31, 2025, cash and cash equivalents were $342.5 million, down from $540.9 million a year earlier [13]. - Accounts receivable decreased to $786.6 million from $861.5 million year-over-year [13]. - Total assets were $2.697 billion, down from $2.890 billion in the previous year [13]. Cash Flow Information - Depreciation for Q1 2025 was $13 million, consistent with $13 million in Q1 2024 [13]. - Capital expenditures were $12.4 million in Q1 2025, compared to $11.8 million in Q1 2024 [13].

Financial Performance - For Q1 2025, Robert Half reported net income of $17 million, or $0.17 per share, on revenues of $1.352 billion, a decrease of 8% from $1.476 billion in Q1 2024[2][3]. - Global enterprise revenues decreased by 8% on a reported basis and 6% on an adjusted basis compared to the previous year, attributed to moderated business confidence amid economic uncertainty[3]. - Service revenues for contract talent solutions totaled $763.2 million, down from $887.1 million in Q1 2024, with finance and accounting services declining from $641.9 million to $562.9 million[17]. - Gross margin for Q1 2025 was $499.0 million, compared to $562.8 million in Q1 2024, reflecting a decrease in profitability[15]. - Total stockholders' equity decreased to $1.313 billion from $1.519 billion year-over-year, indicating a decline in the company's net worth[18]. - Cash and cash equivalents fell to $342.5 million from $540.9 million in the previous year, highlighting liquidity challenges[18]. - For the three months ended March 31, 2025, total revenue reported was $499,045,000, a decrease of 11.3% from $562,797,000 in the same period of 2024[25]. - The gross margin for total talent solutions was 46.7% in 2025, down from 47.0% in 2024, while Protiviti's gross margin decreased from 20.7% to 18.1%[25]. - Selling, General and Administrative Expenses (SG&A) totaled $460,163,000 in 2025, a decrease of 11.8% from $521,899,000 in 2024[28]. - Adjusted operating income for total talent solutions was $10,315,000 in 2025, significantly lower than $61,973,000 in 2024, reflecting a decrease of 83.4%[30]. - The company reported an adjusted gross margin of 36.6% for total revenue in 2025, compared to 38.7% in 2024[25]. - Contract talent solutions generated $20,721,000 in operating income for 2025, an increase from $18,982,000 in 2024, indicating a growth of 9.2%[30]. - The adjusted SG&A expenses for total talent solutions were $398,479,000 in 2025, down from $413,145,000 in 2024, reflecting a decrease of 3.5%[28]. - Protiviti's operating income decreased to $12,435,000 in 2025 from $13,944,000 in 2024, a decline of 10.8%[30]. - The company’s total talent solutions revenue was $408,794,000 in 2025, down from $475,118,000 in 2024, representing a decrease of 14.0%[25]. - The adjusted operating income margin for total revenue was 1.4% in 2025, compared to 5.7% in 2024, indicating a significant decline in profitability[30]. Market Trends and Challenges - Forward-looking statements indicate potential risks including economic conditions, competition, and regulatory changes that may impact future performance[9][10]. - Total revenue growth for Q4 2023 reported at -14.7%, with an adjusted growth rate of -15.2%[39]. - Finance and accounting segment reported a year-over-year decline of -17.2% in Q4 2023, adjusted to -17.8%[39]. - Technology segment experienced a significant decline of -21.7% in Q4 2023, adjusted to -21.8%[39]. - Permanent placement talent solutions saw a decline of -22.0% in Q4 2023, adjusted to -22.6%[39]. - Protiviti segment reported a year-over-year decline of -7.1% in Q4 2023, adjusted to -7.5%[39]. - Total contract talent solutions reported a decline of -17.2% in Q4 2023, adjusted to -17.7%[39]. - Administrative and customer support segment reported a decline of -18.7% in Q4 2023, adjusted to -19.4%[39]. - The billing days impact on revenue growth rates was minimal, with adjustments ranging from 0.1% to 1.4% across segments[39]. - Currency impact on revenue growth rates varied, with adjustments from -0.9% to 1.0% across segments[39]. - Future outlook indicates continued challenges, with expected declines in various segments for Q1 2024[39]. - In Q4 2023, the year-over-year revenue growth for total talent solutions in the United States was reported at -16.8% as reported and -16.7% as adjusted[41]. - The company anticipates continued challenges in revenue growth, with projections indicating a decline of -10.3% for total talent solutions in the United States by Q1 2025[41]. Company Strategy and Recognition - The company emphasized its strong positioning to capitalize on emerging opportunities despite the uncertain outlook, leveraging its brand, technology, and business model[3]. - Robert Half was recognized as one of America's Most Innovative Companies by Fortune and one of America's Best Large Employers by Forbes in 2025[4]. - The company plans to continue focusing on its dual model of professional staffing and business consulting services to meet client needs[3]. - The overall trend indicates a gradual improvement in the Protiviti segment, contrasting with the declining performance in other talent solutions[41]. - The Protiviti segment in the United States showed a significant recovery with a reported growth of 9.3% in Q3 2024 and 6.6% in Q4 2024[41]. - For international contract talent solutions, the year-over-year revenue growth was -4.4% in Q4 2023, worsening to -20.7% by Q1 2025 as reported[43]. - The permanent placement talent solutions in the international segment reported a decline of -20.6% in Q4 2023, with an adjusted figure of -22.8% in Q1 2024[43]. - The total talent solutions in the international market reported a year-over-year decline of -6.9% in Q4 2023, adjusting to -9.8% in Q1 2025[43]. - The billing days impact on total talent solutions in the United States was minimal, with a maximum positive impact of 1.1 days in Q1 2025[41]. - Currency impacts were noted in the international segment, with a negative impact of -3.2% in Q4 2023 for contract talent solutions[43]. - The adjusted revenue growth for Protiviti in the international segment showed a recovery with a growth of 4.4% in Q1 2025[43].

Core Viewpoint - Analysts project that Robert Half (RHI) will report quarterly earnings of $0.36 per share, reflecting a 41% decline year over year, with revenues expected to reach $1.4 billion, down 5.2% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 3.7% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Service Revenues- Contract talent solutions- Administrative and customer support' to be $179.17 million, a decrease of 10.4% year over year [5]. - 'Service Revenues- Total contract talent solutions' is expected to be $802.83 million, indicating a decline of 9.5% from the prior-year quarter [5]. - 'Service Revenues- Contract talent solutions- Technology' is projected at $157.85 million, showing a slight decrease of 0.1% year over year [6]. - 'Service Revenues- Protiviti' is estimated to reach $494.69 million, reflecting a growth of 6.6% year over year [6]. - 'Service Revenues- Contract talent solutions- Finance & Accounting' is expected to be $575.43 million, down 10.4% from the prior-year quarter [7]. - 'Service Revenues- Permanent placement talent solutions' is projected at $115.47 million, indicating a decline of 7.5% year over year [7]. Gross Margin Estimates - 'Gross Margin- Contract talent solutions' is forecasted to be $316.09 million, compared to $350.57 million reported in the same quarter last year [8]. - The consensus for 'Gross Margin- Protiviti' stands at $105.29 million, up from $87.68 million year over year [8]. - 'Gross Margin- Permanent placement talent solutions' is expected to reach $117.42 million, down from $124.55 million reported in the same quarter last year [9]. Stock Performance - Robert Half shares have decreased by 17.8% in the past month, contrasting with an 8.9% decline in the Zacks S&P 500 composite [9]. - With a Zacks Rank 5 (Strong Sell), RHI is anticipated to underperform the overall market in the near future [9].

Core Insights - The class of 2025 is entering a job market characterized by rapid change and uncertainty, presenting unique challenges for early-career professionals [2] Group 1: Challenges Faced by Early-Career Professionals - 45% of respondents reported a lack of mentorship opportunities [6] - 39% struggled with prioritizing tasks and managing workloads [6] - 36% felt unprepared due to inadequate onboarding and training [6] - 35% entered the workforce without internship or relevant work experience [6] - 34% believed they could not make an immediate impact with their existing skills [6] Group 2: Recommendations for Career Success - Pursuing internships, apprenticeship programs, or contract work can provide valuable hands-on experience and enhance skill sets [7] - Building relationships with experienced professionals through networking can offer guidance and boost confidence [7] - Engaging in continuous learning and seeking professional development opportunities can increase marketability [7] - Effective communication and understanding workplace expectations can improve productivity and foster strong working relationships [7]

Group 1 - Robert Half has been recognized as one of Fortune's 100 Best Companies to Work For, highlighting its commitment to a positive workplace experience [1][2] - The ranking is based on an analysis of over 1.3 million anonymous survey responses from employees at Great Place To Work Certified companies, focusing on supportive work experiences [2] - Key indicators measured in the survey include trust in management, connection with colleagues, and loyalty to the company [2] Group 2 - The company emphasizes a people-first approach, with core values of integrity, inclusion, innovation, and commitment to success embedded in its culture [2][3] - Robert Half's Employee Commitment Proposition supports employees in four key areas: career development, connections, community impact, and well-being [4] - The company invests in comprehensive well-being programs, including mental health counseling, financial planning, and resources for new parents [4]

Core Insights - Protiviti has been recognized on the Fortune 100 Best Companies to Work For® list for the 11th consecutive year, reflecting its strong performance in the Great Place To Work® survey [1][8] - The company's culture emphasizes talent, dedication, and a nurturing environment, which contributes to its overall success and client satisfaction [2][3] - Protiviti offers a range of employee benefits, including gender-neutral paid parental leave, backup childcare, and a robust mentoring program, enhancing workplace experience [3][6] Company Performance - Companies on the Fortune list typically outperform the market and excel in key business metrics such as retention and innovation [2] - Protiviti serves over 80% of Fortune 100 and nearly 80% of Fortune 500 companies, indicating its significant market presence [8] Employee Engagement - The Great Place To Work analysis involved over 1.3 million U.S.-based employees, focusing on corporate culture aspects like trust, respect, and camaraderie [4][5] - Protiviti has implemented global recognition tools and an employee experience app to facilitate real-time feedback and support employee well-being [3] Recognition and Awards - In addition to the Fortune recognition, Protiviti has been named a Glassdoor Best Place to Work and featured in Forbes America's Best Management Consulting Firms list [6]

Core Insights - Protiviti has acquired Adamantia to enhance its capabilities in serving clients in France and globally, leveraging Adamantia's expertise in financial services and Protiviti's extensive global network [1][3][4] Group 1: Acquisition Details - The acquisition follows two years of collaboration between Protiviti and Adamantia, focusing on financial services, risk, compliance, and internal audit [2] - Adamantia's deep client connections and experience in the financial services sector position Protiviti for further expansion in the French market [3][4] Group 2: Strategic Importance - The integration of Adamantia into Protiviti is seen as a significant milestone that will accelerate the expansion of expertise and enhance service delivery to clients [3][5] - Protiviti's model, which utilizes Robert Half's capabilities, will allow for rapid scaling of teams to meet client demands, enhancing adaptability and value [5] Group 3: Company Profiles - Adamantia is a consulting boutique specializing in high value-added advisory services for financial institutions and corporations, focusing on sustainable growth and long-term success [6] - Protiviti is a global consulting firm with over 90 offices in more than 25 countries, serving a wide range of clients including over 80% of Fortune 100 and nearly 80% of Fortune 500 companies [7][8]