Core Insights - Robert Half International Inc. (RHI) reported second-quarter fiscal 2026 results with earnings and revenues exceeding the Zacks Consensus Estimate, yet the market reaction was negative, leading to a 6.1% decline in stock price since the earnings release on July 23 [1] - Quarterly earnings were 41 cents per share, surpassing estimates by 2.5% but reflecting a year-over-year decline of 37.9% [1][7] - Revenues totaled $1.37 billion, exceeding the consensus by 1.4% but down 7% year over year [1][7] Financial Performance - Talent Solutions revenues were $874.521 million, down 11.3% year over year and below the estimate of $914.2 million; U.S. Talent Solutions revenues were $668 million, a decrease of 11% year over year [4] - Protiviti revenues reached $495.2 million, up 2% year over year but below expectations; U.S. Protiviti revenues decreased by 1% to $396 million, while non-U.S. revenues increased by 11% to $99 million [5] - The adjusted gross profit was $522.3 million, down 9.9% year over year, with a gross profit margin of 39.1%, a decline of 210 basis points [8] Market Comparison - RHI's shares have depreciated 37.2% over the past year, contrasting with a 28.4% decline in the Staffing Firms industry and a 17.4% rise in the Zacks S&P 500 composite [2] Guidance and Projections - For Q3 2025, RHI expects revenues between $1.31 billion and $1.41 billion, with an EPS forecast of 37 to 47 cents, below the current consensus estimate of 52 cents [10] - The company anticipates 64.2 billing days in Q3 2025, slightly up from 64.1 billing days in Q3 2024 [11] - Capital expenditures for Q3 are projected between $15 million and $25 million, with full-year estimates for 2025 ranging from $75 million to $90 million [11]

I had a sell rating for Robert Half Inc. (NYSE: RHI ) as the stock was trading at an elevated multiple despite the challenges it was facing. The good news is there are very early signs thatI’m a fundamental, valuation-driven investor with a strong focus on identifying businesses that have the potential to scale over time and unlock massive terminal value. My investment approach centers around understanding the core economics of a business—its competitive moat, unit economics, reinvestment runway, and manage ...

Robert Half, which belongs to the Zacks Staffing Firms industry, posted revenues of $1.37 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.35%. This compares to year-ago revenues of $1.47 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earn ...

Financial Data and Key Metrics Changes - Global enterprise revenues for the second quarter of 2025 were $1,370 million, down 7% from the same period last year on both a reported and adjusted basis [6] - Net income per share decreased to $0.41 from $0.66 year-over-year [6] - Cash flow from operations was $119 million during the quarter [7] - Return on invested capital was 12% in the second quarter [9] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 11% year-over-year, with U.S. revenues at $668 million and non-U.S. revenues at $207 million [10][11] - Protiviti's global revenues were $495 million, with U.S. revenues down 1% and non-U.S. revenues up 11% year-over-year [12][13] - Contract Talent Solutions bill rates increased by 3.8% year-over-year, adjusted for revenue mix [12] Market Data and Key Metrics Changes - The unemployment rate for college-educated professionals remained low at 2.5%, indicating labor supply constraints [22] - Job openings are above historical levels, suggesting strong pent-up hiring demand despite subdued hiring activity [22] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities through its strong brand, technology, and unique business model that includes both professional staffing and business consulting services [7] - The strategic integration of contract professionals sourced through Talent Solutions is seen as a key driver for performance [24] - The company is committed to connecting people to meaningful work and providing clients with the necessary talent and consulting expertise [24] Management's Comments on Operating Environment and Future Outlook - Management noted that fears of economic recession have eased, and small business confidence has rebounded modestly [22] - The tone of client conversations has improved recently, indicating a potential uptick in demand [48] - Protiviti's pipeline remains strong, with new opportunities increasing significantly in the last thirty days [36] Other Important Information - The company distributed a cash dividend of $0.59 per share, totaling $59 million, with an average annual growth of 11.5% since 2004 [8] - The adjusted operating income for the second quarter was $59 million, or 4.3% of revenue [16] Q&A Session Summary Question: Inquiry about bill rate increases - Management indicated that unadjusted bill rates would be higher due to mix impacts, with historical increases of 100 to 200 basis points [28][30] Question: Clarification on Protiviti's project timelines - Management explained that the slight year-on-year revenue decline is due to extended conversion timelines and reduced average project sizes, but the pipeline remains strong [34][36] Question: Dynamics of the entry-level labor market - Management noted that AI has had little impact on revenues so far, and small business clients typically seek experienced staff rather than entry-level graduates [60][62] Question: Performance of financial services clients - Management stated that trends in Protiviti's financial services client base are consistent with overall business trends, with cost consciousness and extended decision cycles [70] Question: Competitive dynamics in Protiviti - Management clarified that competition from the Big Four has stabilized, and competitive dynamics are not a significant factor in the current revenue trends [92] Question: Non-U.S. productivity growth - Management highlighted that non-U.S. productivity growth was driven by favorable comparisons and successful joint projects in Germany and Canada [99]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q2 2025 were $1.37 billion, down 7% year-over-year on both reported and adjusted bases [4] - Net income per share decreased to $0.41 from $0.66 in the same quarter last year [4] - Cash flow from operations was $119 million, with a cash dividend of $0.59 per share distributed, totaling $59 million [5] - Return on invested capital was 12% in Q2 [6] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 11% year-over-year, with U.S. revenues at $668 million and non-U.S. revenues at $207 million, down 11% and 13% respectively [6][7] - Protiviti's global revenues were $495 million, with U.S. revenues down 1% and non-U.S. revenues up 11% year-over-year [9][10] - Contract Talent Solutions gross margin was 39.1%, slightly down from 39.3% year-over-year [11] - Overall gross margin for Talent Solutions was 47.1%, down from 47.4% [12] Market Data and Key Metrics Changes - The U.S. job market remains resilient with an unemployment rate of 4.1%, and the unemployment rate for college-educated professionals is at 2.5% [20] - Job openings are above historical levels, indicating strong pent-up hiring demand [20] - Protiviti achieved year-on-year revenue growth for the fourth consecutive quarter, although growth rates have moderated due to economic uncertainty [21] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities through its strong brand, technology, and unique business model that includes both professional staffing and consulting services [5] - The strategic integration of contract professionals through Talent Solutions is seen as a key driver for performance [22] - The company remains committed to connecting people to meaningful work and providing clients with the necessary talent and consulting expertise [22] Management's Comments on Operating Environment and Future Outlook - Management noted that elevated global economic uncertainty has extended client caution and subdued hiring activity [4] - There is a cautious optimism as small business confidence has rebounded modestly, and hiring urgency is expected to increase [20][21] - The company anticipates a slight year-on-year revenue decline in Q3 but expects potential growth by Q4 if new opportunities materialize [31] Other Important Information - The company has 6.2 million shares available for repurchase under its stock repurchase plan [5] - The tax rate for Q2 was 33%, up from 29% year-over-year due to increased nondeductible expenses [15] Q&A Session Summary Question: Inquiry about bill rate increases - Management acknowledged that bill rates have increased due to a mix shift, but specific unadjusted figures were not provided [24][25] Question: Clarification on Protiviti's project timelines - Management indicated that conversion timelines have extended, impacting revenue, but the pipeline remains strong with new opportunities increasing [28][30] Question: Dynamics of the entry-level labor market - Management noted that AI has had little impact on revenues so far, and small business clients typically seek experienced staff rather than entry-level graduates [50][51] Question: Performance of financial services clients - Management stated that trends in Protiviti's financial services client base mirror overall business trends, with cost consciousness and extended decision cycles [59] Question: Resilience of enterprise clients - Management observed that enterprise clients have been more resilient than SMB clients, particularly reflected in Protiviti's results [81]

FOR IMMEDIATE RELEASE Exhibit 99.1 Contact: M. Keith Waddell President and Chief Executive Officer (650) 234-6000 ROBERT HALF REPORTS SECOND-QUARTER FINANCIAL RESULTS MENLO PARK, Calif., July 23, 2025 — Robert Half Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2025. For the three months ended June 30, 2025, net income was $41 million, or $0.41 per share, on revenues of $1.370 billion. For the three months ended June 30, 2024, net income was $68 million, o ...

I have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking Alpha community.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ne ...

Core Insights - More than half of global executives (57%) are confident that AI will enhance customer experience (CX), yet only 17% believe their organization is currently optimizing CX effectively, indicating a significant opportunity gap [1][2] - The gap in CX optimization is a global challenge, with rising customer expectations presenting opportunities for companies that can close this gap [2] - Nearly three-quarters of respondents are optimistic about AI's benefits, with 33% believing it will be extremely impactful and 40% believing it will be impactful [3] CX Optimization and Spending Trends - Two-thirds of business leaders express confidence in their organization's resources for effective CX management, with 69% increasing investments in marketing resources and 73% boosting investments in tools and technologies for CX enhancement over the past two to three years [4] - Looking ahead, 76% of respondents expect increases in CX spending, with 53% anticipating increases of less than 10% and 23% expecting increases exceeding 11% [5] Strengths and Weaknesses in CX Strategy - The top strengths identified in CX strategy include brand promise, while the top weaknesses include omni-channel experience [6] - In the Asia-Pacific region, 57% of executives consider CX extremely important, but only 14% believe their company is very effective at optimizing performance [6] - 71% of respondents feel their organization is effective at maintaining customer trust in data practices, while 65% believe their company is transparent about data collection and usage [7] Execution Challenges - There is a contradiction where 64% of executives believe in their company's ability to gain actionable insights from CX data, yet they often fall short in execution, particularly in leveraging technology effectively [8] - The disconnect between confidence in CX strategy and the actual customer experience highlights the need for organizations to shift from intention to execution and commit to sustained investment in CX capabilities [9] Methodology - The insights are based on a global survey conducted by Protiviti and the University of Oxford, involving over 250 board members, C-suite executives, and other business leaders across 20 countries, representing more than 25 industries [9]

Company Overview - Robert Half's 2024 service revenues reached $5.80 billion[6] - The company boasts a 20-year average return on invested capital of 26%[6] - Robert Half has a global presence in 32 countries[5] - The company's full-time internal staff totals 14,700 as of December 31, 2024[6] Revenue Mix & Performance - In Q1 2025, contract talent solutions accounted for 57% of global revenues[20] - Permanent placement talent solutions represented 8% of Q1 2025 global revenues[20] - Protiviti contributed 35% to the company's Q1 2025 global revenues[20] - The United States accounts for 77% of talent solutions revenue mix[17] Financial Strength - The company maintains a strong balance sheet with zero debt[76] - As of March 31, 2025, Robert Half's cash reserves stood at $342 million[76]

Core Insights - Robert Half Inc. (RHI) is projected to experience declines in both sales and earnings in 2025 due to a weak job market, marking a five-year low for the company [1][7] - The company specializes in talent solutions and business consulting, providing services in various fields including finance, technology, and legal [2] Financial Performance - In Q1 2025, Robert Half reported earnings of $0.17, missing the consensus estimate of $0.36 by $0.19, marking the second consecutive earnings miss and the third in the last four quarters [3] - Global enterprise revenues decreased by 8% on a reported basis and 6% on an adjusted basis, falling from $1.476 billion to $1.352 billion year-over-year [3] Market Sentiment - Business confidence has declined due to economic uncertainties, leading to prolonged decision cycles and reduced hiring activity [4] - Analysts remain bearish on Robert Half for 2025, with earnings expected to fall for the third consecutive year, and the Zacks Consensus estimate for 2025 has been revised down to $1.78 from $2.02 [5] Stock Performance - Shares of Robert Half have dropped to five-year lows, down 18.3% over the last five years, while the S&P 500 has gained 101% during the same period [7] - The company has a forward price-to-earnings (P/E) ratio of 22.7, which is considered high compared to the typical value stock threshold of under 15 [8] Dividend Considerations - Robert Half offers a dividend yield of 5.9%, with a recent payout of $0.59 per share, annualized to $2.36 [8] - Concerns arise regarding the sustainability of the dividend amidst declining earnings, with the 2025 Zacks Consensus projecting earnings of only $1.78 [8]