Robert Half Inc. (NYSE:RHI) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds. BMO Capital Adjusts Robert Half (RHI) Forecast as Profit Recovery Slows Photo by Vitaly Taranov on Unsplash On February 17, BMO Capital lowered its price recommendation on Robert Half Inc. (NYSE:RHI) to $32 from $35. The firm reiterated a Market Perform rating on the shares following the company’s 10K disclosures. In a research note, the analyst said a $17 million cost-action charge is e ...

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Core Insights - Robert Half has appointed Linda Christensen as the senior vice president of global marketing, effective immediately, to enhance brand positioning and support long-term growth objectives [1] Company Overview - Robert Half is recognized as the world's first and largest specialized talent solutions and business consulting firm, connecting skilled job seekers with opportunities in various fields including finance, accounting, technology, marketing, legal, and administrative support [1] Leadership and Strategy - Linda Christensen brings over 30 years of marketing and leadership experience, with more than two decades at Robert Half, focusing on aligning marketing strategy with enterprise priorities and enhancing brand differentiation [1] - The company aims to modernize its digital platforms and elevate data-driven marketing capabilities under Christensen's leadership, ensuring alignment with the company's operating model and growth plans [1] Recognition - In the past year, Robert Half has been named one of the Fortune Most Admired Companies and one of the 100 Best Companies to Work For, highlighting its strong reputation in the industry [1]

Core Insights - Robert Half has been recognized by Forbes as one of America's Best Large Employers for 2026, based on an independent survey of approximately 217,000 U.S. workers at companies with 1,000 or more employees [1] Company Recognition - The ranking reflects employees' willingness to recommend their employer, considering factors such as compensation, employee development, advancement opportunities, and workplace culture [1] - Robert Half has been named a Fortune Most Admired Company for 29 consecutive years and has also received accolades as a World's Best Employer and a Best Employer for Women [1] Employee Experience - The company provides a world-class employee experience through competitive benefits, wellness offerings, employee network groups, and resources aimed at helping individuals connect, thrive, and grow [1] Business Overview - Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting skilled job seekers with opportunities in various fields including finance, accounting, technology, marketing, legal, and administrative support [1] - The company also offers executive search services and is the parent company of Protiviti, a global consulting firm providing internal audit, risk, and business technology consulting solutions [1]

Financial Performance - The Company's service revenues were $5.38 billion in 2025, a decrease of 7.2% from $5.80 billion in 2024[125] - Full-year 2025 net income decreased 47.1% to $133 million, with diluted net income per share decreasing 45.5% to $1.33[125] - Revenues from U.S. operations decreased 7.7% to $4.17 billion, while international revenues decreased 5.4% to $1.21 billion[144] - Contract talent solutions revenues were $2.99 billion, a decrease of 11.0% from $3.36 billion in 2024, driven by a 14.1% decrease in hours worked[145] - Permanent placement talent solutions revenues were $440 million, down 9.8% from $487 million in 2024, due to a 13.6% decrease in placements[146] - Protiviti revenues for 2025 were $1.95 billion, a decrease of 0.1% compared to 2024, driven by a 7.3% decrease in average hourly bill rate, partially offset by a 7.2% increase in billable hours[147] - The company's reported operating income for the year ended December 31, 2025, was $76 million, a decrease of 68.3% compared to $241 million in 2024, representing 1.4% of revenues[161] - Adjusted operating income for 2025 was $183 million, down 45.6% from $336 million in 2024, with a margin of 3.4% of revenues[161] Expenses and Margins - Gross margin dollars for the company were $2.00 billion in 2025, down 10.9% from $2.25 billion in 2024, with a gross margin percentage of 37.2% in 2025 compared to 38.8% in 2024[149][154] - Gross margin for contract talent solutions was $1.17 billion in 2025, down 11.4% from $1.32 billion in 2024, representing 39.0% of revenues[151][154] - Gross margin for Protiviti was $397 million in 2025, down 10.7% from $444 million in 2024, with a reported gross margin percentage of 20.4%[153][154] - Selling, general and administrative expenses were $1.93 billion in 2025, down 4.0% from $2.01 billion in 2024, representing 35.8% of revenues[156][159] - Selling, general and administrative expenses for contract talent solutions were $1.19 billion in 2025, decreasing 4.9% from $1.25 billion in 2024, with a percentage of revenues at 39.9%[157][159] - Selling, general and administrative expenses for permanent placement talent solutions were $426 million in 2025, down 5.2% from $449 million in 2024, with a percentage of revenues at 96.9%[158][159] - Adjusted selling, general and administrative expenses were $1.84 billion in 2025, down 4.5% from $1.93 billion in 2024, with a percentage of revenues at 34.3%[156][159] Cash Flow and Investments - Cash and cash equivalents decreased to $464 million in 2025 from $538 million in 2024, with operating activities providing $320 million in 2025[169] - Net cash used in investing activities for 2025 was $86 million, including capital expenditures of $53 million and investments in employee deferred compensation trusts of $80 million[171] - Cash used in financing activities for 2025 was $330 million, which included $92 million for stock repurchases and $238 million in dividends paid[173] - The company's income from investments held in employee deferred compensation trusts was $106 million in 2025, up from $94 million in 2024, due to positive market returns[164] - The provision for income taxes increased to 31.6% in 2025 from 29.7% in 2024, attributed to nondeductible expenses and fewer tax credits[165] - The company expects capital expenditures for 2026 to range from $70 million to $90 million, with $45 million to $60 million related to software initiatives and technology infrastructure[172] Operational Insights - The U.S. unemployment rate was 4.4% in December 2025, up from 4.1% in December 2024, with college-educated professionals at 2.8%[127] - The U.S. real GDP increased at an annual rate of 4.4% in Q3 2025, compared to 2.3% in 2024, indicating a more conducive macro environment[126] - The Company anticipates ongoing demand for its services, although visibility into future revenues is limited due to macroeconomic conditions[129] - The Company's headcount remained relatively flat in 2025 compared to prior year-end levels, with a decrease in administrative headcount[129] Balance Sheet and Obligations - The company's working capital included $464 million in cash and cash equivalents and $748 million in net accounts receivable as of December 31, 2025[175] - Employee deferred compensation plan obligations totaled $772 million as of December 31, 2025[183] - The Company reported current and long-term operating lease liabilities of $70 million and $176 million, respectively, as of December 31, 2025[180] - Contractual purchase obligations amounted to $221 million, with $127 million expected to be paid within the next 12 months[182] - The company has authorized the repurchase of up to 5.6 million additional shares of common stock, having repurchased 1.7 million shares at a cost of $80 million in 2025[174] - The company entered into a $100 million credit agreement in May 2025, with no borrowings outstanding as of December 31, 2025[177]

Group 1 - Robert Half has appointed Ryan Skubis as senior district president for business operations modernization to enhance operational infrastructure and technology adoption [1] - Skubis has been with Robert Half since 1999 and has held various leadership roles, most recently overseeing operations in the Southeastern U.S. [1] - The company emphasizes the importance of modernizing operations to improve experiences for clients, candidates, and employees, as stated by CEO Paul F. Gentzkow [1] Group 2 - Robert Half is recognized as the world's first and largest specialized talent solutions and business consulting firm, providing services in finance, accounting, technology, marketing, legal, and administrative support [1] - The company has been acknowledged as one of the Fortune Most Admired Companies and one of the 100 Best Companies to Work For in the past year [1]

Core Insights - The article emphasizes a fundamental, valuation-driven investment approach focused on identifying businesses with potential for long-term growth and significant terminal value [1] Investment Philosophy - The investment strategy is centered around understanding core business economics, including competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The goal is to translate these factors into long-term free cash flow generation and shareholder value creation [1] Sector Focus - The analysis highlights a preference for sectors that exhibit strong secular tailwinds, indicating a focus on industries likely to experience sustained growth [1] Professional Background - The individual has 10 years of self-educated investment experience and currently manages personal funds sourced from friends and family [1] - The motivation for sharing insights on platforms like Seeking Alpha is to provide valuable investment analysis and receive feedback from other investors [1] Analytical Approach - The article advocates for analysis that is both analytical and accessible, aiming to assist readers in identifying high-quality, long-term investment opportunities [1]

Core Insights - James Nicholas achieved his first career win at the Astara Golf Championship, completing rounds of 68-65-66-66 for a total of -19 [1] - Protiviti commemorated Nicholas' victory by donating 25,000 meals through its 'Birdies for Meals' campaign, which has provided over 800,000 meals since its inception in 2021 [2] - Nicholas became a Protiviti brand ambassador in 2025, aligning his professional growth story with Protiviti's commitment to career and people development [3] Company Initiatives - Protiviti's president and CEO, Joseph Tarantino, expressed pride in supporting Nicholas and highlighted the company's commitment to helping food-insecure communities through the meal donation initiative [4] - The Birdies for Meals program reflects Protiviti's dedication to social responsibility and community support [4] Company Background - Protiviti has been recognized on the Fortune 100 Best Companies to Work For® list for 11 consecutive years, serving a significant portion of Fortune 100 and Fortune 500 companies [7] - The firm operates globally with over 90 offices in more than 25 countries, providing consulting and managed solutions across various sectors [6]

Core Insights - Businesses are facing widening skills gaps and increasing hiring complexity as they enter 2026, with 62% of hiring managers reporting more pronounced skills gaps compared to the previous year [1][2] - Despite these challenges, 83% of managers are optimistic about their business outlook for 2026, with 60% planning to add permanent staff and 55% expecting to increase contract hiring [2][3] Skills Gaps and Hiring Plans - A significant percentage of hiring managers across key disciplines reported a lack of talent to complete priority projects, indicating widespread talent shortages [2][7] - More than half of managers plan to hire both permanent and contract professionals to address these skills gaps in 2026 [7] Impact of Generative AI - The rise of AI-generated applications is complicating the hiring process, with 65% of managers stating that hiring has become harder, and 58% finding it more difficult to identify qualified candidates [3][4] - Generative AI tools are leading to polished applications that may not accurately reflect candidates' real capabilities, making it challenging for employers to assess skills effectively [5][4] Employer Strategies - Organizations are adapting by utilizing a mix of permanent and contract hiring to close critical skills gaps and maintain agility in their operations [3][5] - Employers are increasingly relying on partners to rigorously evaluate talent, enhancing their ability to make confident hiring decisions [5]

Core Viewpoint - Robert Half International Inc. is a significant player in the staffing industry, providing talent solutions and consulting services, despite facing challenges in recent years [1] Group 1: Company Performance - Robert Half's stock surged 26% following the release of its fourth-quarter earnings, which exceeded analysts' expectations [3] - The company reported a year-over-year revenue decline of 5.8%, with quarterly revenue at $1.3 billion, slightly above expectations [3] - The earnings per share (EPS) was 32 cents, surpassing the consensus by 6.7% [3] Group 2: Market Outlook - BMO Capital maintained a "Market Perform" rating for Robert Half, raising its price target from $31 to $35, indicating a more optimistic outlook [2][6] - CEO Keith Waddell noted that talent solutions and enterprise revenues have returned to positive sequential growth for the first time in over three years, with positive momentum continuing into January [4] Group 3: Stock Performance - Despite recent gains, Robert Half's stock has depreciated by 58.2% over the past year, which is a sharper decline compared to the 41.3% drop in the Staffing Firms industry [5] - The current stock price of $34.61 reflects a significant increase of 27.76% from its low of $25.22 over the past year [5] - The company's market capitalization is approximately $3.5 billion, indicating its ongoing navigation through challenges while showing signs of potential stabilization [5]