Financial Data and Key Metrics Changes - Global enterprise revenues for Q3 2025 were $1,354 million, down 8% from the same quarter last year on both reported and adjusted bases [4] - Net income per share in Q3 was $0.43 compared to $0.64 in Q3 2024 [4] - Cash flow from operations during the quarter was $77 million, with a cash dividend of $0.59 per share distributed to shareholders, totaling $59 million [6] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 11% year over year, with U.S. revenues at $649 million and non-U.S. revenues at $207 million [7] - Protiviti's global revenues in Q3 were $498 million, with U.S. revenues at $398 million and non-U.S. revenues at $100 million, reflecting a 3% decline year over year [9][10] - Gross margin for Contract Talent Solutions was 38.9%, unchanged from the previous year, while Protiviti's gross margin was 20.9%, down from 24.6% [11][12] Market Data and Key Metrics Changes - There were 64.2 billing days in Q3 2025 compared to 64.1 billing days in Q3 2024 [8] - Currency exchange rate movements increased reported total revenues by $9 million year over year [8] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities in talent and consulting services, leveraging its industry-leading brand and technology [5] - The strategic use of contract professionals sourced through Talent Solutions is seen as a vital contributor to Protiviti's success [24] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of improvement in the macroeconomic environment, with increased client discussions about staffing and hiring [22] - The company remains committed to returning free cash flow to investors, emphasizing the importance of maintaining the dividend [31][34] Other Important Information - The fourth quarter revenue guidance is set between $1,245 million and $1,345 million, reflecting a return to positive adjusted sequential growth for the first time in thirteen quarters [17] - The company has $360 million in cash on the balance sheet, providing a cushion for dividend commitments [33] Q&A Session Summary Question: Regarding Protiviti's pipeline and project materialization - Management confirmed that the pipeline is growing and projects are materializing as expected, though they are replacing larger projects with smaller ones, impacting efficiency [28][30] Question: Commitment to the dividend amidst revenue trends - Management reiterated the importance of the dividend, stating that free cash flow covers it and they remain committed to returning cash to investors [31][34] Question: Fourth quarter revenue guidance description - Management described the fourth quarter guidance as conservative, noting that it reflects a cushion based on recent revenue trends [37][38] Question: Dynamics affecting Protiviti's margins - Management explained that gross margin compression is due to a mix shift towards shorter projects and the reallocation of full-time employees to contractor roles [30][56] Question: Long-term operating margin opportunities - Management expressed confidence in achieving higher operating margins through investments in technology and improving skill levels within Talent Solutions [61][63] Question: Impact of government shutdown on public sector revenue - Management indicated that federal government revenue is less than half of 1% of total revenue, with no expected impact from the shutdown [65] Question: Weekly growth trends in contract talent revenues - Management reported a sequential growth rate of approximately 1.5% in early October, which supports their fourth quarter guidance [68] Question: AI's impact on labor costs and the company - Management noted that while AI is being discussed, its impact on the labor market has been minimal, particularly for experienced roles [70][81] Question: Capital allocation policy regarding dividends and share repurchases - Management clarified that free cash flow is primarily allocated to dividends, with any residual available for share repurchases [84][96]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q3 2025 were $1.354 billion, down 8% year-over-year on both reported and adjusted bases [3][4] - Net income per share decreased to $0.43 from $0.64 in the same quarter last year [4] - Cash flow from operations was $77 million, with a cash dividend of $0.59 per share distributed, totaling $59 million [5] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 11% year-over-year, with U.S. revenues at $649 million and non-U.S. revenues at $207 million [6][8] - Protiviti's global revenues were $498 million, with U.S. revenues at $398 million (down 6%) and non-U.S. revenues at $100 million (up 8%) [8] - Contract Talent Solutions bill rates increased by 3.7% compared to the previous year [8] Market Data and Key Metrics Changes - The third quarter had 64.2 billing days compared to 64.1 in the same quarter last year, while the fourth quarter is expected to have 61.4 billing days [6] - Currency exchange rate movements positively impacted reported revenues by $9 million [7] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities in staffing and consulting services, leveraging its brand and technology [5][17] - Protiviti is expected to improve its growth rates in Q4, with a focus on returning to double-digit operating margins in the future [41][42] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of improvement in the macroeconomic environment, with increased client discussions about staffing and hiring [17][18] - The company remains committed to its dividend, with free cash flow covering it despite recent downturns in the staffing industry [26][66] Other Important Information - The company has $360 million in cash on its balance sheet, providing a cushion for dividend commitments [26] - The fourth quarter revenue guidance is set between $1.245 billion and $1.345 billion, reflecting a return to positive adjusted sequential growth [13][14] Q&A Session Summary Question: Regarding Protiviti's pipeline and project materialization - Management confirmed that the pipeline is growing and projects are materializing as expected, though there is a shift to smaller, less efficient projects [22][24] Question: Sustainability of the dividend - The company emphasized its commitment to the dividend, stating that free cash flow currently covers it and there is a significant cash reserve [25][26] Question: Fourth quarter revenue guidance description - Management described the fourth quarter guidance as conservative, with expectations for slight sequential growth [30] Question: Dynamics affecting Protiviti's margins - Management explained that gross margin compression is due to project mix and competitive pricing pressures, but they expect improvements in 2026 [41][42] Question: Long-term operating margin opportunities - The company is focused on improving skill levels and leveraging technology to enhance margins in the coming years [46][47] Question: Impact of government shutdown on revenue - The company reported minimal impact from the government shutdown, with government revenue comprising less than 5% of total revenue [48] Question: Trends between enterprise and SMB customers - Enterprise clients have shown better results compared to SMB clients, which is a consistent trend [78]

Financial Performance - For Q3 2025, Robert Half reported net income of $43 million, or $0.43 per share, on revenues of $1.354 billion, a decrease from $65 million, or $0.64 per share, on revenues of $1.465 billion in Q3 2024, representing a revenue decline of 7.6% year-over-year[2]. - For the nine months ended September 30, 2025, net income was $101 million, or $1.01 per share, on revenues of $4.076 billion, compared to $197 million, or $1.91 per share, on revenues of $4.413 billion for the same period in 2024, indicating a revenue decline of 7.6%[2]. - Total service revenues for Q3 2025 were $1.354 billion, down from $1.465 billion in Q3 2024, with contract talent solutions contributing $746.2 million, a decrease of 10.1% year-over-year[18]. - The gross margin for Q3 2025 was $504.2 million, down from $571.7 million in Q3 2024, reflecting a decline of 11.8%[16]. - Cash and cash equivalents decreased to $365.3 million as of September 30, 2025, from $570.5 million a year earlier, indicating a decline of 36%[19]. - Total assets decreased to $2.846 billion from $2.982 billion year-over-year, a decline of 4.6%[19]. - The company reported a year-over-year revenue decline of 10.2% in Q2 2024, with a further decline projected to 7.5% in Q3 2025[39]. - The company anticipates continued challenges in revenue growth, particularly in the contract talent solutions area, with declines expected to persist into 2025[39]. Segment Performance - Robert Half's Protiviti segment generated $498.1 million in revenues for Q3 2025, slightly down from $511.3 million in Q3 2024[18]. - Protiviti's revenue for the same period was $104.2 million, representing a gross margin of 20.9%[25]. - The company experienced a decrease in contract talent solutions revenue from $317,727,000 in Q3 2024 to $306,844,000 in Q3 2025, reflecting a 4.4% decline[28]. - The company reported a decrease in permanent placement talent solutions revenue from $113,421,000 in Q3 2024 to $106,404,000 in Q3 2025, reflecting a 3.7% decline[28]. - The total talent solutions revenue for the nine months ended September 30, 2025, was $1,225,684,000, down from $1,304,483,000 in the same period of 2024, indicating a trend of revenue contraction[28]. - The Finance and Accounting segment experienced a revenue drop of 13.6% in Q2 2024, with an adjusted rate of -13.5% after accounting for billing days and currency impacts[40]. - The Technology segment showed a slight recovery with a reported decline of only 3.5% in Q4 2024, compared to a decline of 6.1% in Q3 2024[40]. - The Administrative and Customer Support segment saw a significant decline of 17.2% in Q1 2025, with an adjusted decline of 15.2%[40]. Margins and Expenses - For the three months ended September 30, 2025, total talent solutions revenue was $504.2 million, with a gross margin of 37.2%[25]. - The gross margin for contract talent solutions was 38.9% for the three months ended September 30, 2025, compared to 39.0% for the same period in 2024[25]. - Adjusted gross margin for Protiviti increased to 25.8% for the three months ended September 30, 2025, up from 24.6% in 2024[25]. - The company reported selling, general and administrative expenses of $490,643,000 for the three months ended September 30, 2025, which is 36.2% of revenue, compared to $511,091,000 and 34.9% in 2024[28]. - Adjusted selling, general and administrative expenses for the three months ended September 30, 2025, were $453,442,000, or 33.5% of revenue, down from $487,951,000 and 33.3% in 2024[28]. Operating Income - The adjusted operating income for the nine months ended September 30, 2025, was $842,941,000, representing a 37.1% margin, compared to $1,159,762,000 and 44.5% margin in the same period of 2024[30]. - The company reported a total operating income of $54,010 thousand for the nine months, which is a 1.3% increase from the previous year[31]. - The total operating income as reported was $(17,506) thousand, a decrease of 0.8% year-over-year[31]. - The total talent solutions reported an operating loss of $(13,224) thousand, with a slight decrease of 1.5% from the same period in 2024[31]. - Protiviti's operating income was $26,812 thousand, reflecting a 5.4% increase compared to the prior year[31]. Revenue Growth Challenges - The company noted a billing days impact of -0.3% in Q2 2024, affecting the overall revenue growth rates[39]. - Currency fluctuations had a positive impact of 0.4% on revenue growth in Q2 2024, but this varied across segments[40]. - The total contract talent solutions segment reported a decline of 14.5% in Q2 2024, with an adjusted decline of 14.4%[40]. - In Q2 2024, the year-over-year revenue growth for total talent solutions in the United States was reported at -9.6%[42]. - The adjusted revenue growth for contract talent solutions in the United States showed a decline of -15.3% in Q2 2024[42]. - For international operations, the year-over-year revenue growth for total talent solutions was -12.2% in Q2 2024[44]. - The year-over-year revenue growth for Protiviti in the United States was 3.3% in Q2 2024, but it turned negative to -0.7% by Q2 2025[42].

Core Insights - Robert Half International Inc. (RHI) is a leading firm in the talent solutions and business consulting industry, recognized as the world's first and largest specialized company in this sector [1] - The company is scheduled to release its third-quarter 2025 earnings on October 22, with analysts predicting an earnings per share (EPS) of $0.43 and revenue of $1.36 billion [1] Financial Metrics - RHI has a price-to-earnings (P/E) ratio of 17.49, indicating the market's valuation of its earnings [3] - The price-to-sales ratio is 0.57, reflecting investor willingness to pay per dollar of sales [3] - The enterprise value to sales ratio is 0.54, which takes into account the company's debt and cash [3] - The enterprise value to operating cash flow ratio is 8.75, showcasing RHI's cash flow generation relative to its valuation [4] - The earnings yield stands at 5.72%, providing shareholders with insight into their return on investment [4] - RHI maintains a low debt-to-equity ratio of 0.19, indicating conservative use of debt [4] - The current ratio is 1.57, suggesting good liquidity to cover short-term liabilities [4]

Core Insights - AuditBoard and Protiviti have launched two AI-driven solutions to enhance risk management and audit processes within enterprises [2][5] - The solutions aim to improve data quality, streamline workflows, and provide strategic value to Governance, Risk, and Compliance (GRC) teams [2][3] Company Overview - AuditBoard is recognized as a leading AI-powered GRC platform, trusted by over 50% of Fortune 500 companies for managing risk [6] - Protiviti is a global consulting firm that collaborates with AuditBoard to deliver tailored solutions across various sectors, including finance and technology [7][9] Product Features - Generative AI Integrations allow organizations to create agents that communicate directly with the AuditBoard platform [3] - Deep ERP Integration facilitates continuous monitoring of financial controls by driving essential financial information into AuditBoard [4] - Integrated Reasoning enables AI agents to connect risk, control, and issue data for improved search capabilities [7] - Intelligent Pre-population uses historical data to generate context-aware language for risk justification and mitigation [7] - Automated Data Retrieval enhances efficiency by eliminating manual stakeholder involvement in data collection [7] Strategic Implications - The collaboration between AuditBoard and Protiviti signifies a shift from reactive compliance to proactive risk intelligence, enhancing organizational maturity and strategic value [5] - The integration of AI into daily business operations is expected to elevate assurance and improve decision-making processes [5]

Core Insights - Robert Half Inc. (NYSE:RHI) has experienced a 53% decline in its share price in 2025, making it one of the 10 Best Beaten Down Dividend Stocks to Buy Right Now [1] - The company reported global enterprise revenue of $1.37 billion in Q2 2025, reflecting a 7% decline compared to the same period last year [2] - Truist Securities has lowered its price target for Robert Half to $50 from $55 while maintaining a Buy rating, indicating steady demand in the Human Capital sector despite no clear signs of recovery [3] Financial Performance - In Q2 2025, Robert Half's global enterprise revenue was $1.37 billion, which is a 7% decline year-over-year on both reported and adjusted bases [2] - The company has consistently raised its dividend for 21 consecutive years, currently paying a quarterly dividend of $0.59 per share, resulting in a dividend yield of 7.37% as of October 16 [4] Market Outlook - Global economic uncertainty has led to cautious behavior from clients and job seekers, resulting in longer decision-making processes and fewer hiring activities [2] - Discussions with private IT staffing companies indicate steady demand, although there is no clear sign of significant recovery in the market [3]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Group 1: High-Yielding Stocks in the Industrials Sector - United Parcel Service Inc (NYSE:UPS) has a dividend yield of 7.80%. Citigroup analyst Ariel Rosa maintained a Buy rating but reduced the price target from $114 to $112, with an accuracy rate of 68%. UBS analyst Thomas Wadewitz also maintained a Buy rating, cutting the price target from $118 to $110, with an accuracy rate of 72%. UPS is set to release its third-quarter 2025 results on October 28 [7] - Karat Packaging Inc (NASDAQ:KRT) has a dividend yield of 7.35%. Truist Securities analyst Jake Bartlett maintained a Hold rating and increased the price target from $28 to $31, with an accuracy rate of 66%. William Blair analyst Ryan Merkel downgraded the stock from Outperform to Market Perform, with an accuracy rate of 65%. KRT posted better-than-expected quarterly earnings on August 7 [7] - Robert Half Inc (NYSE:RHI) has a dividend yield of 7.26%. Truist Securities analyst Tobey Sommer maintained a Buy rating but cut the price target from $55 to $50, with an accuracy rate of 71%. JP Morgan analyst Andrew Steinerman maintained a Neutral rating and reduced the price target from $47 to $45, with an accuracy rate of 73%. RHI will release its third-quarter 2025 earnings results on October 22 [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in the Industrials Sector - United Parcel Service Inc (NYSE:UPS) has a dividend yield of 7.80%. Citigroup analyst Ariel Rosa maintained a Buy rating but reduced the price target from $114 to $112, with an accuracy rate of 68%. UBS analyst Thomas Wadewitz also maintained a Buy rating, cutting the price target from $118 to $110, with an accuracy rate of 72%. UPS is set to release its third-quarter 2025 results on October 28 [7] - Karat Packaging Inc (NASDAQ:KRT) has a dividend yield of 7.35%. Truist Securities analyst Jake Bartlett maintained a Hold rating and increased the price target from $28 to $31, with an accuracy rate of 66%. William Blair analyst Ryan Merkel downgraded the stock from Outperform to Market Perform, with an accuracy rate of 65%. The company reported better-than-expected quarterly earnings on August 7 [7] - Robert Half Inc (NYSE:RHI) has a dividend yield of 7.26%. Truist Securities analyst Tobey Sommer maintained a Buy rating but cut the price target from $55 to $50, with an accuracy rate of 71%. JP Morgan analyst Andrew Steinerman maintained a Neutral rating and reduced the price target from $47 to $45, with an accuracy rate of 73%. Robert Half will release its third-quarter 2025 earnings results on October 22 [7]

Core Insights - Robert Half has been recognized by Forbes as one of the World's Best Employers for 2025, highlighting its commitment to providing an outstanding workplace environment and exceptional opportunities for employees globally [1][2]. Company Recognition - The Forbes' World's Best Employers list is based on an independent survey of over 300,000 employees across 50 countries, focusing on satisfaction, culture, and reputation, with emphasis on well-being, inclusivity, career growth, and work-life balance [2]. - Robert Half's CEO, M. Keith Waddell, emphasized the company's dedication to creating an environment where employees can thrive both professionally and personally [3]. Employee Experience - Robert Half invests in programs and initiatives that promote connection, career development, and well-being, contributing to its recognition as a top employer [3]. - The company has also been acknowledged as one of Fortune's Most Admired Companies and one of Forbes' Best Employers for Company Culture [3][4]. Company Overview - Robert Half is the world's first and largest specialized talent solutions and business consulting firm, providing contract talent and permanent placement solutions across various fields including finance, technology, marketing, legal, and customer support [4]. - The company is the parent of Protiviti, a global consulting firm that offers internal audit, risk, and business consulting solutions [4].

Core Insights - Palm Valley Capital Fund reported a 2.35% appreciation in Q3 2025, underperforming the S&P SmallCap 600's 9.11% gain and the Morningstar Small Cap Total Return Index's 7.99% rise [1] - The Fund's cash equivalents increased from 73.5% to 74.1% during the quarter, indicating a cautious investment strategy [1] - Small-cap stocks outperformed large caps due to expectations of Federal Reserve easing and reduced tariff concerns [1] Company Analysis: Robert Half Inc. (NYSE:RHI) - Robert Half Inc. experienced a one-month return of -5.28% and a 52-week loss of 50.64%, closing at $33.16 with a market capitalization of $3.374 billion on October 7, 2025 [2] - The company specializes in staffing and consulting services, particularly in finance and accounting, but has faced challenges due to a weak staffing industry disconnected from the broader labor market post-COVID [3] - Concerns exist regarding the ongoing demand for finance staffing amid potential job displacement by AI technologies [3] Hedge Fund Interest - Robert Half Inc. was held by 34 hedge fund portfolios at the end of Q2 2025, an increase from 27 in the previous quarter [4] - The company reported enterprise revenue of $1.37 billion in Q2 2025, a 7% decline from Q2 2024 [4] - While Robert Half Inc. has investment potential, certain AI stocks are viewed as offering greater upside with less downside risk [4]