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 ...

Core Insights - Robert Half (RHI) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, but down from $0.66 per share a year ago, indicating an earnings surprise of +2.50% [1] - The company posted revenues of $1.37 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.35%, but down from $1.47 billion year-over-year [2] - Robert Half shares have declined approximately 39.4% year-to-date, contrasting with the S&P 500's gain of 7.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $1.37 billion, and for the current fiscal year, it is $1.63 on revenues of $5.42 billion [7] - The estimate revisions trend for Robert Half was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The Staffing Firms industry, to which Robert Half belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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]

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Robert Half reported a decline in Q2 2025 financial results due to global economic uncertainty, while highlighting its position as a leading talent solutions firm and outlining key business risks [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Robert Half reported a decline in net income and revenues for both the second quarter and the first six months of 2025 compared to the same periods in 2024, reflecting challenging economic conditions | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $41 million | $68 million | $58 million | $132 million | | Diluted EPS | $0.41 | $0.66 | $0.58 | $1.27 | | Revenues | $1.370 billion | $1.473 billion | $2.722 billion | $2.948 billion | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO noted a **7%** decline in global enterprise revenues for Q2 2025, attributed to persistent global economic uncertainty, which led to client and job seeker caution, elongated decision cycles, and subdued hiring. Revenues stabilized in June and continued post-quarter - Global enterprise revenues for Q2 2025 were **$1.370 billion**, down **7%** from last year's second quarter on both reported and adjusted bases[3](index=3&type=chunk) - The decline was due to **elevated global economic uncertainty**, extending client and job seeker caution, elongating decision cycles, and subduing hiring activity and new project starts[3](index=3&type=chunk) - Revenue levels fell modestly during the first two months of the quarter, then **stabilized at lower levels in June**, continuing into July[3](index=3&type=chunk) - Robert Half was recognized as **number one on Forbes' list of America's Best Professional Recruiting Firms**, and also as one of America's Best Temporary Staffing Firms and Best Executive Recruiting Firms[4](index=4&type=chunk) [Company Description & Recognition](index=1&type=section&id=Company%20Description%20%26%20Recognition) Robert Half is a leading specialized talent solutions and business consulting firm, offering contract talent and permanent placement in various professional fields, and is the parent company of Protiviti, a global consulting firm. The company has received recognition as one of Fortune's World's Most Admired Companies and 100 Best Companies to Work For - Robert Half is the world's first and largest specialized talent solutions and business consulting firm[7](index=7&type=chunk) - Services include contract talent and permanent placement in finance and accounting, technology, marketing and creative, legal, and administrative and customer support, as well as executive search[7](index=7&type=chunk) - Robert Half is the parent company of **Protiviti**, a global consulting firm specializing in internal audit, risk, business, and technology consulting[7](index=7&type=chunk) - In the past 12 months, Robert Half, including **Protiviti**, was named one of the **Fortune World's Most Admired Companies™** and **100 Best Companies to Work For®**[7](index=7&type=chunk) [Forward-Looking Statements & Risk Factors](index=1&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) The report contains forward-looking statements that are estimates based on management's current expectations and involve known and unknown risks and uncertainties. Key risks include changes in tax regulations, global economic conditions, unemployment levels, competition, ability to attract and retain talent and clients, impact of AI, regulatory compliance, and cybersecurity breaches - Forward-looking statements are estimates based on management's current expectations and involve known and unknown risks, uncertainties, and assumptions[7](index=7&type=chunk)[8](index=8&type=chunk) - Key risks include changes in U.S. or international tax regulations, global financial and economic situations, changes in unemployment levels, reduction in candidate supply, development and adoption of AI, new competitors, ability to maintain client relationships, competitive pressures, and potential liabilities[9](index=9&type=chunk) - Specific risks for **Protiviti** include retaining employees, attracting clients, ongoing demand for consulting services, and potential litigation[10](index=10&type=chunk) [GAAP Financial Results](index=3&type=section&id=GAAP%20Financial%20Results) This section details Robert Half's GAAP financial performance, including income statement, balance sheet, and cash flow, highlighting significant year-over-year declines in revenues and net income [Summary of Operations (Income Statement)](index=3&type=section&id=Summary%20of%20Operations%20%28Income%20Statement%29) Robert Half's income statement shows a significant decrease in service revenues, gross margin, operating income, and net income for both the three and six months ended June 30, 2025, compared to the prior year | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service revenues | $1,369,743 | $1,472,524 | $2,721,650 | $2,948,461 | | Gross margin | $509,474 | $576,679 | $1,008,519 | $1,139,476 | | Operating income | $1,540 | $75,543 | $40,422 | $116,441 | | Net income | $40,968 | $68,156 | $58,318 | $131,857 | | Diluted net income per share | $0.41 | $0.66 | $0.58 | $1.27 | [Supplemental Financial Information](index=4&type=section&id=Supplemental%20Financial%20Information) This section provides a detailed breakdown of service revenues by segment, along with key balance sheet and cash flow items, highlighting changes year-over-year [Service Revenues by Segment](index=4&type=section&id=Service%20Revenues%20by%20Segment) Contract talent solutions, particularly Finance and Accounting and Administrative and Customer Support, experienced revenue declines. Technology contract talent solutions showed slight growth in Q2 2025, while Protiviti maintained modest growth | Service Revenues (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Contract talent solutions: | | | | | | Finance and accounting | $555,626 | $623,120 | $1,118,559 | $1,265,090 | | Administrative and customer support | $165,591 | $190,344 | $331,218 | $390,276 | | Technology | $158,403 | $157,899 | $310,945 | $315,869 | | Total contract talent solutions | $759,808 | $854,897 | $1,523,013 | $1,741,955 | | Permanent placement talent solutions | $114,713 | $131,063 | $226,804 | $255,830 | | Protiviti | $495,222 | $486,564 | $971,833 | $950,676 | | Total service revenues | $1,369,743 | $1,472,524 | $2,721,650 | $2,948,461 | [Selected Balance Sheet Information](index=4&type=section&id=Selected%20Balance%20Sheet%20Information) As of June 30, 2025, Robert Half reported decreases in cash and cash equivalents, accounts receivable, total assets, and total stockholders' equity compared to June 30, 2024, while total current liabilities increased | Balance Sheet Item (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Cash and cash equivalents | $380,547 | $547,370 | | Accounts receivable, net | $826,872 | $893,467 | | Total assets | $2,832,196 | $2,937,749 | | Total current liabilities | $1,322,626 | $1,263,264 | | Total stockholders' equity | $1,311,918 | $1,480,155 | [Selected Cash Flow Information](index=4&type=section&id=Selected%20Cash%20Flow%20Information) For the six months ended June 30, 2025, capital expenditures increased, while capitalized cloud computing implementation costs and open market repurchases of common stock decreased compared to the prior year | Cash Flow Item (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | | Depreciation | $25,608 | $25,520 | | Capitalized cloud computing implementation costs | $13,217 | $15,557 | | Capital expenditures | $27,573 | $24,174 | | Open market repurchases of common stock (shares) | 1,128 | 1,660 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section explains Robert Half's non-GAAP financial measures, including adjustments for deferred compensation investment income, billing days, and foreign currency, to provide a clearer view of underlying operational performance and revenue trends [Overview of Non-GAAP Measures](index=5&type=section&id=Overview%20of%20Non-GAAP%20Measures) Robert Half supplements its GAAP financial results with non-GAAP measures, including **adjusted gross margin**, **adjusted selling, general and administrative expenses**, **adjusted operating income**, and **adjusted revenue growth rates**. These adjustments primarily reclassify investment income from employee deferred compensation trusts and account for impacts of billing days and foreign currency exchange rates to provide a clearer view of operational performance and revenue trends - Non-GAAP measures include **adjusted gross margin**, **adjusted selling, general and administrative expenses**, **adjusted operating income**, and **adjusted revenue growth rates**[20](index=20&type=chunk) - Adjusted gross margin, SG&A, and operating income include gains and losses on investments held to fund employee deferred compensation plans, used by management to review operational results[21](index=21&type=chunk) - Adjusted revenue growth rates remove the impacts of changes in billing days and foreign currency exchange rates to focus on growth attributable to operating activities[22](index=22&type=chunk) - Billing days impact is calculated by normalizing revenues to a per billing day amount. Foreign currency impact is calculated by retranslating current period international revenues using prior year's exchange rates[22](index=22&type=chunk) [Adjusted Gross Margin](index=6&type=section&id=Adjusted%20Gross%20Margin) The adjusted gross margin for **Protiviti** shows an increase compared to the reported figures, reflecting the reclassification of investment income from employee deferred compensation trusts. Total adjusted gross margin for the company was **38.1%** for Q2 2025, up from **37.2%** reported | Gross Margin (in thousands) | Q2 2025 As Reported | Q2 2025 As Adjusted | Q2 2024 As Reported | Q2 2024 As Adjusted | | :-------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Contract talent solutions | $297,367 (39.1%) | $297,367 (39.1%) | $336,161 (39.3%) | $336,161 (39.3%) | | Permanent placement talent solutions | $114,551 (99.9%) | $114,551 (99.9%) | $130,801 (99.8%) | $130,801 (99.8%) | | Protiviti | $97,556 (19.7%) | $110,357 (22.3%) | $109,717 (22.5%) | $112,947 (23.2%) | | Total | $509,474 (37.2%) | $522,275 (38.1%) | $576,679 (39.2%) | $579,909 (39.4%) | | Gross Margin (in thousands) | YTD 2025 As Reported | YTD 2025 As Adjusted | YTD 2024 As Reported | YTD 2024 As Adjusted | | :-------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Contract talent solutions | $594,300 (39.0%) | $594,300 (39.0%) | $686,731 (39.4%) | $686,731 (39.4%) | | Permanent placement talent solutions | $226,412 (99.8%) | $226,412 (99.8%) | $255,349 (99.8%) | $255,349 (99.8%) | | Protiviti | $187,807 (19.3%) | $196,569 (20.2%) | $197,396 (20.8%) | $208,983 (22.0%) | | Total | $1,008,519 (37.1%) | $1,017,281 (37.4%) | $1,139,476 (38.6%) | $1,151,063 (39.0%) | [Adjusted Selling, General and Administrative Expenses](index=7&type=section&id=Adjusted%20Selling%2C%20General%20and%20Administrative%20Expenses) Adjusted selling, general and administrative (SG&A) expenses for talent solutions segments are lower than reported figures due to the reclassification of investment income from employee deferred compensation trusts. Total adjusted SG&A was **$463.081 million (33.8% of revenue)** for Q2 2025, compared to **$507.934 million (37.1%)** reported | SG&A Expenses (in thousands) | Q2 2025 As Reported | Q2 2025 As Adjusted | Q2 2024 As Reported | Q2 2024 As Adjusted | | :--------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Contract talent solutions | $318,871 (42.0%) | $278,944 (36.7%) | $308,886 (36.1%) | $298,015 (34.9%) | | Permanent placement talent solutions | $111,218 (97.0%) | $106,292 (92.7%) | $116,285 (88.7%) | $114,653 (87.5%) | | Protiviti | $77,845 (15.7%) | $77,845 (15.7%) | $75,965 (15.6%) | $75,965 (15.6%) | | Total | $507,934 (37.1%) | $463,081 (33.8%) | $501,136 (34.0%) | $488,633 (33.2%) | | SG&A Expenses (in thousands) | YTD 2025 As Reported | YTD 2025 As Adjusted | YTD 2024 As Reported | YTD 2024 As Adjusted | | :--------------------------- | :------------------- | :------------------- | :------------------- | :------------------- | | Contract talent solutions | $595,083 (39.1%) | $569,186 (37.4%) | $640,474 (36.8%) | $598,467 (34.4%) | | Permanent placement talent solutions | $217,353 (95.8%) | $214,529 (94.6%) | $232,861 (91.0%) | $227,346 (88.9%) | | Protiviti | $155,661 (16.0%) | $155,661 (16.0%) | $149,700 (15.7%) | $149,700 (15.7%) | | Total | $968,097 (35.6%) | $939,376 (34.5%) | $1,023,035 (34.7%) | $975,513 (33.1%) | [Adjusted Operating Income](index=8&type=section&id=Adjusted%20Operating%20Income) Adjusted operating income for Q2 2025 significantly improved for talent solutions segments compared to reported figures, primarily due to the reclassification of deferred compensation investment income. Total adjusted operating income for Q2 2025 was **$59.194 million (4.3% of revenue)**, substantially higher than the reported **$1.540 million (0.1%)** | Operating Income (in thousands) | Q2 2025 As Reported | Q2 2025 As Adjusted | Q2 2024 As Reported | Q2 2024 As Adjusted | | :------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Contract talent solutions | $(21,504) (-2.8%) | $18,423 (2.4%) | $27,275 (3.2%) | $38,146 (4.5%) | | Permanent placement talent solutions | $3,333 (2.9%) | $8,259 (7.2%) | $14,516 (11.1%) | $16,148 (12.3%) | | Protiviti | $19,711 (4.0%) | $32,512 (6.6%) | $33,752 (6.9%) | $36,982 (7.6%) | | Total | $1,540 (0.1%) | $59,194 (4.3%) | $75,543 (5.1%) | $91,276 (6.2%) | | Operating Income (in thousands) | YTD 2025 As Reported | YTD 2025 As Adjusted | YTD 2024 As Reported | YTD 2024 As Adjusted | | :------------------------------ | :------------------- | :------------------- | :------------------- | :------------------- | | Contract talent solutions | $(783) (-0.1%) | $25,114 (1.6%) | $46,257 (2.7%) | $88,264 (5.1%) | | Permanent placement talent solutions | $9,059 (4.0%) | $11,883 (5.2%) | $22,488 (8.8%) | $28,003 (10.9%) | | Protiviti | $32,146 (3.3%) | $40,908 (4.2%) | $47,696 (5.0%) | $59,283 (6.2%) | | Total | $40,422 (1.5%) | $77,905 (2.9%) | $116,441 (3.9%) | $175,550 (6.0%) | [Revenue Growth Rates (As Reported vs. As Adjusted)](index=9&type=section&id=Revenue%20Growth%20Rates%20%28As%20Reported%20vs.%20As%20Adjusted%29) This section presents year-over-year revenue growth rates, both as reported and adjusted for billing days and foreign currency impacts, across global, United States, and International operations for various talent solutions and Protiviti - The 'As Adjusted' growth rates remove the impact of different billing days and constant currency fluctuations from the revenue growth rate calculation[35](index=35&type=chunk) | Global Revenue Growth Rates (%) | Q2 2025 As Reported | Q2 2025 As Adjusted | Q2 2024 As Reported | Q2 2024 As Adjusted | | :------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Finance and accounting | -10.8 | -10.8 | -13.6 | -13.5 | | Administrative and customer support | -13.0 | -13.3 | -9.8 | -9.8 | | Technology | 0.3 | 0.4 | -13.1 | -13.1 | | Total contract talent solutions | -11.1 | -11.1 | -14.5 | -14.4 | | Permanent placement talent solutions | -12.5 | -12.6 | -12.2 | -12.0 | | Protiviti | 1.8 | 1.5 | -0.9 | -0.9 | | Total | -7.0 | -7.1 | -10.2 | -10.1 | | United States Revenue Growth Rates (%) | Q2 2025 As Reported | Q2 2025 As Adjusted | Q2 2024 As Reported | Q2 2024 As Adjusted | | :------------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total talent solutions | -11.0 | -11.0 | -15.2 | -15.3 | | Protiviti | -0.7 | -0.7 | 3.3 | 3.1 | | Total | -7.4 | -7.4 | -9.6 | -9.7 | | International Revenue Growth Rates (%) | Q2 2025 As Reported | Q2 2025 As Adjusted | Q2 2024 As Reported | Q2 2024 As Adjusted | | :------------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Total talent solutions | -12.2 | -12.6 | -10.7 | -10.0 | | Protiviti | 13.1 | 10.7 | -16.2 | -15.9 | | Total | -5.3 | -6.3 | -12.2 | -11.6 | [Global Revenue Growth Rate Reconciliation](index=10&type=section&id=Global%20Revenue%20Growth%20Rate%20Reconciliation) The reconciliation for global revenue growth rates shows that for Q2 2025, billing days had a positive impact (**0.4%** for total), while currency had a negative impact (**-0.5%** for total), resulting in a slightly higher adjusted decline compared to reported | Global Revenue Growth – Q2 2025 (%) | As Reported | Billing Days Impact | Currency Impact | As Adjusted | | :---------------------------------- | :---------- | :------------------ | :-------------- | :---------- | | Finance and accounting | -10.8 | 0.4 | -0.4 | -10.8 | | Administrative and customer support | -13.0 | 0.4 | -0.7 | -13.3 | | Technology | 0.3 | 0.5 | -0.4 | 0.4 | | Total contract talent solutions | -11.1 | 0.4 | -0.4 | -11.1 | | Permanent placement talent solutions | -12.5 | 0.5 | -0.6 | -12.6 | | Total talent solutions | -11.3 | 0.4 | -0.4 | -11.3 | | Protiviti | 1.8 | 0.4 | -0.7 | 1.5 | | Total | -7.0 | 0.4 | -0.5 | -7.1 | [United States Revenue Growth Rate Reconciliation](index=11&type=section&id=United%20States%20Revenue%20Growth%20Rate%20Reconciliation) For the United States, the billing days impact was negligible (**0.0%** for total) in Q2 2025, and there was no currency impact, meaning reported and adjusted growth rates were identical for the quarter | US Revenue Growth – Q2 2025 (%) | As Reported | Billing Days Impact | Currency Impact | As Adjusted | | :------------------------------ | :---------- | :------------------ | :-------------- | :---------- | | Contract talent solutions | -10.7 | 0.0 | ― | -10.7 | | Permanent placement talent solutions | -13.2 | 0.0 | ― | -13.2 | | Total talent solutions | -11.0 | 0.0 | ― | -11.0 | | Protiviti | -0.7 | 0.0 | ― | -0.7 | | Total | -7.4 | 0.0 | ― | -7.4 | [International Revenue Growth Rate Reconciliation](index=12&type=section&id=International%20Revenue%20Growth%20Rate%20Reconciliation) International revenue growth rates for Q2 2025 show a positive impact from billing days (**1.5%** for total) but a more significant negative impact from currency (**-2.5%** for total), leading to a larger adjusted decline compared to the reported figures | International Revenue Growth – Q2 2025 (%) | As Reported | Billing Days Impact | Currency Impact | As Adjusted | | :----------------------------------------- | :---------- | :------------------ | :-------------- | :---------- | | Contract talent solutions | -12.5 | 1.4 | -1.8 | -12.9 | | Permanent placement talent solutions | -10.6 | 1.4 | -2.0 | -11.2 | | Total talent solutions | -12.2 | 1.4 | -1.8 | -12.6 | | Protiviti | 13.1 | 1.7 | -4.1 | 10.7 | | Total | -5.3 | 1.5 | -2.5 | -6.3 |

Core Insights - The author has a strong academic background with a master's degree in Analytics and a bachelor's degree in Accounting, indicating a solid foundation for investment analysis [1] - With over 10 years of experience in the investment sector, the author has progressed from an analyst to a management role, showcasing career advancement and expertise in the field [1] - The author expresses a personal interest in dividend investing, suggesting a focus on income-generating investments [1] Summary by Categories - **Education and Qualifications** - Master's degree in Analytics from Northwestern University [1] - Bachelor's degree in Accounting [1] - **Professional Experience** - Over 10 years in the investment arena, starting as an analyst [1] - Progressed to a management role, indicating significant career development [1] - **Investment Focus** - Personal hobby in dividend investing, highlighting a specific area of interest within the investment community [1]

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]