Group 1 - Robert Half has been recognized as one of America's Best-In-State Employers 2025 by Forbes, achieving the No. 1 position in its industry in California [1] - The rankings are based on an independent survey of over 160,000 employees from companies with at least 500 employees in the U.S., evaluating factors such as career development, compensation, workplace culture, and overall employer image [2] - JoLynn Conway-James, senior executive director and chief administrative officer at Robert Half, emphasized the company's people-first workplace culture and commitment to employee success through various support programs [3] Group 2 - 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, and legal [4] - The company has also been recognized as a top workplace in the Bay Area by the San Francisco Times/Silicon Valley Business Journal and Fortune [3][4]

Core Insights - The report emphasizes that strong data capabilities are essential for AI success, with 69% of organizations with high AI maturity expressing confidence in their data capabilities [1][3] - Effective governance, data engineering, analytics, and training are crucial for advancing AI maturity and improving ROI [1][3] AI Maturity Stages - Organizations progress through five stages of AI maturity, with Stage 5 representing the highest level where 97% of organizations report confidence in their data management capabilities [2][6] - At Stage 1, organizations recognize AI's potential but lack strategic initiatives, while by Stage 5, AI drives significant business transformation [6][7] Data Confidence and ROI - High data confidence correlates with exceeding AI investment expectations, as organizations with robust data governance are more likely to achieve meaningful outcomes [4][5] - 74% of organizations conduct regular data audits, a significant increase from 36% at Stage 1, indicating improved data practices [5] Barriers and Challenges - Despite advancements, 57% of AI-mature organizations still face challenges related to inadequate data governance [12] - Security and compliance concerns increase with maturity, with 59% of Stage 5 organizations citing these as top issues, up from 41% at Stage 1 [12] Sector and Role Insights - The technology and financial services sectors lead in data trust, while manufacturing and distribution lag behind [12] - Confidence in data increases with seniority, peaking at the C-suite level, indicating a correlation between leadership and data governance effectiveness [12]

Group 1: Industry Performance - The performance of human resource service providers in Europe and the US showed signs of stabilization in Q2 after a poor start to the year, with companies like ManpowerGroup, Robert Half, and Adecco reporting slight sequential profit growth as employers adapt to geopolitical and economic instability [1] - Adecco's Q2 earnings exceeded expectations due to a faster-than-expected increase in flexible positions, with the company anticipating better earnings in the second half of the year [4] - Robert Half's Q3 guidance fell below expectations, and the company reported a 16% decline in gross profit for the first half of the year due to weak recruitment activity in Europe [5] Group 2: Market Sentiment and Challenges - Despite some positive signs, the overall tone in the industry remains cautious, with companies warning of ongoing challenges ahead [4] - Analysts indicate that the job market is still sluggish, with manufacturing and professional services sectors experiencing slowed employment growth, which are key areas for ManpowerGroup and Robert Half [6] - In Europe, the job market is particularly dire, with the UK's unemployment rate reaching a four-year high and job vacancies falling below pre-pandemic levels, influenced by rising labor costs and government policies [6]

[Cover Page and Filing Information](index=1&type=section&id=Cover%20Page%20and%20Filing%20Information) [FORM 10-Q Filing Details](index=1&type=section&id=FORM%2010-Q%20Filing%20Details) This quarterly report for Robert Half Inc covers the period ending June 30, 2025, with 101,738,660 common shares outstanding - Robert Half Inc filed its quarterly report (FORM 10-Q) for the period ended June 30, 2025[2](index=2&type=chunk) Company Filing Information | Metric | Detail | | :--- | :--- | | Filing Type | Quarterly Report (FORM 10-Q) | | Quarter End Date | June 30, 2025 | | Registrant Name | ROBERT HALF INC | | State of Incorporation | Delaware | | Ticker Symbol | RHI | | Exchange | New York Stock Exchange | | Filer Status | Large Accelerated Filer | | Common Stock Outstanding (as of July 31, 2025) | 101,738,660 shares | | Common Stock Par Value | $0.001/share | [PART I—FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Robert Half Inc as of June 30, 2025 [CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION%20(UNAUDITED)) Condensed Consolidated Statements of Financial Position (Unaudited) | Metric (in thousands of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 380,547 | 537,583 | | Accounts receivable, net | 826,872 | 772,285 | | Assets held in trust for employee deferred compensation | 716,782 | 673,240 | | Other current assets | 153,720 | 146,314 | | **Total current assets** | **2,077,921** | **2,129,422** | | Property and equipment, net | 129,870 | 119,564 | | Right-of-use assets | 202,869 | 198,384 | | Goodwill | 251,151 | 237,180 | | Noncurrent deferred income taxes | 156,542 | 158,120 | | Other noncurrent assets | 13,843 | 11,735 | | **Total assets** | **2,832,196** | **2,854,405** | | **Liabilities** | | | | Accounts payable and accrued expenses | 149,758 | 166,955 | | Accrued payroll and benefit costs | 396,564 | 372,785 | | Obligations under employee deferred compensation plans | 699,951 | 678,403 | | Income taxes payable | 7,078 | 2,977 | | Current operating lease liabilities | 69,275 | 64,619 | | **Total current liabilities** | **1,322,626** | **1,285,739** | | Noncurrent operating lease liabilities | 174,374 | 168,900 | | Other noncurrent liabilities | 23,278 | 21,763 | | **Total liabilities** | **1,520,278** | **1,476,402** | | **Stockholders' Equity** | | | | Common stock | 102 | 102 | | Additional paid-in capital | 1,341,843 | 1,418,150 | | Accumulated other comprehensive loss | (30,027) | (65,138) | | Retained earnings | — | 24,889 | | **Total stockholders' equity** | **1,311,918** | **1,378,003** | | **Total liabilities and stockholders' equity** | **2,832,196** | **2,854,405** | - As of June 30, 2025, total assets were **$2.832 billion**, a slight decrease from $2.854 billion on December 31, 2024; cash and cash equivalents decreased by **$157.04 million**, while net accounts receivable increased by **$54.59 million**[8](index=8&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) Condensed Consolidated Statements of Operations (Unaudited) | Metric (in thousands of USD) | 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 | | Cost of services | 860,269 | 895,845 | 1,713,131 | 1,808,985 | | Gross profit | 509,474 | 576,679 | 1,008,519 | 1,139,476 | | Selling, general and administrative expenses | 507,934 | 501,136 | 968,097 | 1,023,035 | | Operating income | 1,540 | 75,543 | 40,422 | 116,441 | | Income from investments held in employee deferred compensation trusts | (57,654) | (15,733) | (37,483) | (59,109) | | Interest income, net | (2,239) | (5,186) | (5,811) | (11,599) | | Income before income taxes | 61,433 | 96,462 | 83,716 | 187,149 | | Provision for income taxes | 20,465 | 28,306 | 25,398 | 55,292 | | Net income | 40,968 | 68,156 | 58,318 | 131,857 | | **Net income per share** | | | | | | Basic | 0.41 | 0.66 | 0.58 | 1.27 | | Diluted | 0.41 | 0.66 | 0.58 | 1.27 | | Dividends per share | 0.59 | 0.53 | 1.18 | 1.06 | - Q2 2025 service revenues **decreased by 7.0%** year-over-year, with net income **down 39.9%**; H1 service revenues **decreased by 7.7%**, with net income **down 55.8%**[9](index=9&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | Metric (in thousands of USD) | 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 | 40,968 | 68,156 | 58,318 | 131,857 | | Other comprehensive income (loss): | | | | | | Foreign currency translation adjustments, net of tax | 23,597 | (6,628) | 35,030 | (18,050) | | Foreign defined benefit plan adjustments, net of tax | 42 | 42 | 81 | 85 | | **Total other comprehensive income (loss)** | **23,639** | **(6,586)** | **35,111** | **(17,965)** | | **Total comprehensive income (loss)** | **64,607** | **61,570** | **93,429** | **113,892** | - Total comprehensive income for Q2 2025 was **$64.61 million**, a 4.9% year-over-year increase, while H1 total comprehensive income was **$93.43 million**, a 17.9% decrease[11](index=11&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY%20(UNAUDITED)) Condensed Consolidated Statements of Stockholders' Equity (Unaudited) | Metric (in thousands of USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Stockholders' Equity | 1,311,918 | 1,378,003 | | Net Income | 40,968 | 24,889 (Q1 2025) | | Other Comprehensive Income (Loss) | 23,639 | 11,472 (Q1 2025) | | Dividends Declared | (60,284) | (60,163) (Q1 2025) | | Stock Repurchases | (20,157) | (50,145) (Q1 2025) | | Stock Option Compensation | 14,530 | 16,705 (Q1 2025) | | Shares Issued (at end of period) | 101,739 | 102,199 | | Additional Paid-in Capital | 1,341,843 | 1,418,150 | | Accumulated Other Comprehensive Loss | (30,027) | (65,138) | - Total stockholders' equity decreased to **$1.312 billion** as of June 30, 2025, from $1.378 billion at year-end 2024, primarily due to dividends and stock repurchases[12](index=12&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric (in thousands of USD) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Cash flows from operating activities:** | | | | Net income | 58,318 | 131,857 | | Net cash provided by operating activities | 60,030 | 126,035 | | **Cash flows from investing activities:** | | | | Capital expenditures | (27,573) | (24,174) | | Investments in employee deferred compensation trusts | (51,135) | (42,718) | | Proceeds from redemptions of investments in employee deferred compensation trusts | 40,081 | 29,695 | | Net cash paid for acquisitions | (10,114) | (264) | | Net cash used in investing activities | (48,741) | (37,461) | | **Cash flows from financing activities:** | | | | Repurchases of common stock | (70,999) | (146,191) | | Dividends paid | (120,659) | (112,248) | | Net cash used in financing activities | (191,658) | (258,439) | | Effect of exchange rate changes on cash | 23,333 | (14,505) | | Change in cash and cash equivalents | (157,036) | (184,370) | | Cash and cash equivalents at beginning of period | 537,583 | 731,740 | | Cash and cash equivalents at end of period | 380,547 | 547,370 | - In H1 2025, net cash from operating activities was **$60.03 million**, a 52.3% year-over-year decrease, leading to a reduction in ending cash and cash equivalents to **$380.55 million**[13](index=13&type=chunk) [NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=7&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) [Note A—Summary of Significant Accounting Policies](index=7&type=section&id=Note%20A%E2%80%94Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's business nature, basis of preparation, accounting estimates, and policies for revenue recognition and fair value measurements - The company provides professional talent solutions and business consulting services globally, including contract and permanent placement talent and Protiviti consulting[15](index=15&type=chunk) - Income from investments in employee deferred compensation trusts is fully offset by related costs and has no impact on net income[23](index=23&type=chunk) - The company's financial instruments, including cash equivalents and deferred compensation trust assets, are measured at fair value using Level 1 inputs (quoted market prices)[25](index=25&type=chunk)[28](index=28&type=chunk) Income from Investments Held in Employee Deferred Compensation Trusts (in thousands of USD) | 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 | | :--- | :--- | :--- | :--- | :--- | | Dividend income | (3,055) | (2,627) | (4,995) | (4,698) | | Realized and unrealized gains | (54,599) | (13,106) | (32,488) | (54,411) | | **Total investment income** | **(57,654)** | **(15,733)** | **(37,483)** | **(59,109)** | [Note B—New Accounting Pronouncements](index=10&type=section&id=Note%20B%E2%80%94New%20Accounting%20Pronouncements) This note discusses recently adopted and issued accounting standards, including FASB updates on income tax and income statement disclosures - FASB ASU No 2023-09, effective for annual periods after December 15, 2024, requires enhanced disclosure of income tax rate reconciliation items[33](index=33&type=chunk) - FASB ASU 2024-03, effective for annual periods after December 15, 2026, will require disaggregation of certain income statement expense captions[33](index=33&type=chunk) - The company anticipates these new standards will alter disclosures but not materially impact its financial results or condition[33](index=33&type=chunk) [Note C—Revenue Recognition](index=10&type=section&id=Note%20C%E2%80%94Revenue%20Recognition) This note details revenue recognition policies for the company's three business segments and provides a breakdown of revenues by functional specialization - Contract talent solutions revenue is recognized over time as services are rendered, with the company acting as the principal[35](index=35&type=chunk)[36](index=36&type=chunk) - Permanent placement talent solutions revenue is recognized at the point in time a candidate accepts an offer of permanent employment[40](index=40&type=chunk) - Protiviti consulting services revenue is recognized over time using a cost-to-cost measure of progress for performance obligations[41](index=41&type=chunk) Service Revenues by Functional Specialization and Segment (in thousands of USD) | Segment/Specialization | 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 | | Intersegment revenue eliminations | (119,812) | (116,466) | (237,709) | (229,280) | | **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** | [Note D—Other Current Assets](index=12&type=section&id=Note%20D%E2%80%94Other%20Current%20Assets) This note details the components of other current assets, primarily consisting of prepaid expenses and unamortized cloud computing implementation costs - Other current assets totaled **$153.72 million** as of June 30, 2025, a 5.06% increase from December 31, 2024[48](index=48&type=chunk) Other Current Assets (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid expenses | 71,180 | 64,185 | | Unamortized cloud computing implementation costs, current | 24,957 | 28,417 | | Other | 57,583 | 53,712 | | **Total other current assets** | **153,720** | **146,314** | [Note E—Property and Equipment, Net](index=12&type=section&id=Note%20E%E2%80%94Property%20and%20Equipment,%20Net) This note provides a detailed breakdown of the company's property and equipment, including computer hardware, software, and leasehold improvements - Net property and equipment increased by **8.62%** to **$129.87 million** as of June 30, 2025, driven by additions to computer software and leasehold improvements[49](index=49&type=chunk) Property and Equipment, Net (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Computer hardware | 118,375 | 131,059 | | Computer software | 233,650 | 224,609 | | Furniture and equipment | 97,792 | 96,288 | | Leasehold improvements | 207,454 | 200,565 | | **Cost of property and equipment** | **657,271** | **652,521** | | Accumulated depreciation | (527,401) | (532,957) | | **Property and equipment, net** | **129,870** | **119,564** | [Note F—Other Noncurrent Assets](index=13&type=section&id=Note%20F%E2%80%94Other%20Noncurrent%20Assets) This note lists the components of other noncurrent assets, primarily unamortized cloud computing implementation costs and other intangible assets - Total other noncurrent assets grew by **17.96%** to **$13.84 million** as of June 30, 2025, mainly due to an increase in other net intangible assets[52](index=52&type=chunk) Other Noncurrent Assets (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unamortized cloud computing implementation costs, noncurrent | 10,969 | 10,517 | | Other intangible assets, net | 2,874 | 1,218 | | **Total other noncurrent assets** | **13,843** | **11,735** | [Note G—Leases](index=13&type=section&id=Note%20G%E2%80%94Leases) This note provides detailed information on the company's operating leases, including lease terms, costs, and future minimum lease payments - The company leases corporate and field offices and certain equipment with lease terms ranging from less than one year to 11 years[53](index=53&type=chunk) Lease-Related Financial Data (in thousands of USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Operating lease cost (three months) | 19,800 | 21,200 | | Operating lease cost (six months) | 39,800 | 42,400 | | Cash paid for amounts included in operating lease liabilities | 39,082 | 45,284 | | Right-of-use assets obtained in exchange for new operating lease liabilities | 37,696 | 40,668 | | Weighted-average remaining lease term | 4.6 years (2025) | 4.6 years (2024) | | Weighted-average discount rate | 4.0% (2025) | 3.9% (2024) | Future Minimum Lease Payments (in thousands of USD) | Year | Amount | | :--- | :--- | | 2025 (excluding six months ended) | 40,845 | | 2026 | 70,794 | | 2027 | 51,330 | | 2028 | 37,419 | | 2029 | 26,943 | | Thereafter | 43,801 | | Less: Imputed interest | (27,483) | | **Present value of operating lease liabilities** | **243,649** | [Note H—Goodwill](index=14&type=section&id=Note%20H%E2%80%94Goodwill) This note discloses changes in the company's goodwill, including balances by business segment, additions from acquisitions, and foreign currency adjustments - Goodwill increased by **5.97%** to **$251.15 million** as of June 30, 2025, primarily due to **$12.1 million** in goodwill recognized from two acquisitions in April 2025[58](index=58&type=chunk) Changes in Goodwill (in thousands of USD) | Segment | Balance at Dec 31, 2024 | Acquisitions | Foreign Currency Translation | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | 133,938 | 1,205 | 607 | 135,750 | | Permanent Placement Talent Solutions | 26,063 | 235 | 118 | 26,416 | | Protiviti | 77,179 | 10,667 | 1,139 | 88,985 | | **Total** | **237,180** | **12,107** | **1,864** | **251,151** | [Note I—Accrued Payroll and Benefit Costs](index=14&type=section&id=Note%20I%E2%80%94Accrued%20Payroll%20and%20Benefit%20Costs) This note details the components of accrued payroll and benefit costs, including salaries, benefits, payroll taxes, and workers' compensation - Total accrued payroll and benefit costs increased by **6.38%** to **$396.56 million** as of June 30, 2025, driven by higher accrued salaries and benefits[59](index=59&type=chunk) Accrued Payroll and Benefit Costs (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Salaries and benefits | 354,949 | 330,803 | | Payroll taxes | 29,270 | 29,513 | | Workers' compensation | 12,345 | 12,469 | | **Total accrued payroll and benefit costs** | **396,564** | **372,785** | [Note J—Employee Deferred Compensation Plan Obligations](index=14&type=section&id=Note%20J%E2%80%94Employee%20Deferred%20Compensation%20Plan%20Obligations) This note describes the company's qualified and non-qualified deferred compensation plans and discloses related asset and liability values - The company offers qualified 401(k) and non-qualified deferred compensation plans; the non-qualified plan had assets of **$716.8 million** and liabilities of **$700.0 million** as of June 30, 2025[60](index=60&type=chunk)[61](index=61&type=chunk) Deferred Compensation Plan Contribution Expense (in thousands of USD) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Contribution Expense | 11,600 | 11,400 | 25,300 | 24,800 | [Note K—Commitments and Contingencies](index=15&type=section&id=Note%20K%E2%80%94Commitments%20and%20Contingencies) This note discloses legal proceedings and contingencies, including two class action lawsuits, and details a new $100 million credit agreement - The company is facing two class action lawsuits: the Jessica Gentry case (unpaid interview time) and the Shari Dorff case (recruiter misclassification)[64](index=64&type=chunk)[65](index=65&type=chunk) - Management believes it has meritorious defenses to these claims and has not recorded a provision for potential losses[64](index=64&type=chunk)[65](index=65&type=chunk) - On May 28, 2025, the company entered into a **$100 million credit agreement** maturing in May 2030, with no cash borrowings drawn as of June 30, 2025[67](index=67&type=chunk) [Note L—Stockholders' Equity](index=16&type=section&id=Note%20L%E2%80%94Stockholders'%20Equity) This note details the company's stock repurchase program, including the number of shares repurchased and associated costs - As of June 30, 2025, the company was authorized to repurchase up to **6.2 million** additional shares of its common stock[70](index=70&type=chunk) Common Stock Repurchases (in thousands of shares/USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Common stock repurchases (shares) | 1,128 | 1,660 | | Common stock repurchases (cost) | 59,378 | 121,272 | | Repurchases related to employee stock plans (shares) | 191 | 271 | | Repurchases related to employee stock plans (cost) | 10,924 | 21,435 | [Note M—Net Income Per Share](index=16&type=section&id=Note%20M%E2%80%94Net%20Income%20Per%20Share) This note provides the calculation details for basic and diluted net income per share, including weighted-average shares outstanding - Q2 2025 basic and diluted EPS were both **$0.41**, down from $0.66 in the prior-year period; H1 basic and diluted EPS were both **$0.58**, down significantly from $1.27[72](index=72&type=chunk) Net Income Per Share Calculation (in thousands of shares/USD) | 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 | 40,968 | 68,156 | 58,318 | 131,857 | | Basic weighted-average shares | 100,410 | 103,151 | 100,537 | 103,469 | | Diluted weighted-average shares | 100,539 | 103,328 | 100,776 | 103,864 | | **Basic net income per share** | **0.41** | **0.66** | **0.58** | **1.27** | | **Diluted net income per share** | **0.41** | **0.66** | **0.58** | **1.27** | [Note N—Business Segments](index=17&type=section&id=Note%20N%E2%80%94Business%20Segments) This note provides financial information for the company's three reportable segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti - The company operates three reportable segments, and the chief operating decision maker uses segment income to evaluate performance and allocate resources[75](index=75&type=chunk)[76](index=76&type=chunk) Service Revenues and Segment Income by Segment (in thousands of USD) | Segment | Q2 2025 Service Revenues | Q2 2024 Service Revenues | Q2 2025 Segment Income | Q2 2024 Segment Income | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | 759,808 | 854,897 | 18,423 | 38,146 | | Permanent Placement Talent Solutions | 114,713 | 131,063 | 8,259 | 16,148 | | Protiviti | 495,222 | 486,564 | 32,512 | 36,982 | | **Total** | **1,369,743** | **1,472,524** | **59,194** | **91,276** | Depreciation Expense by Segment (in thousands of USD) | Segment | 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 | 6,219 | 6,364 | 12,717 | 12,957 | | Permanent Placement Talent Solutions | 2,043 | 2,047 | 4,141 | 4,271 | | Protiviti | 4,340 | 4,105 | 8,750 | 8,292 | | **Total Depreciation Expense** | **12,602** | **12,516** | **25,608** | **25,520** | [Note O—Subsequent Events](index=19&type=section&id=Note%20O%E2%80%94Subsequent%20Events) This note discloses the declaration of a quarterly cash dividend on August 4, 2025 Quarterly Dividend Declaration Details | Metric | Detail | | :--- | :--- | | Quarterly Dividend Per Share | $0.59 | | Declaration Date | August 4, 2025 | | Record Date | August 25, 2025 | | Payment Date | September 15, 2025 | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, liquidity, and capital resources [Forward-Looking Statements](index=20&type=section&id=Forward-Looking%20Statements) This section clarifies that forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are subject to risks including global economic conditions, competition, government regulation, and cybersecurity threats, among others[86](index=86&type=chunk) [Executive Overview](index=20&type=section&id=Executive%20Overview) This overview summarizes financial performance for Q2 and H1 2025, noting that economic uncertainty has led to a slowdown in hiring activity - Q2 2025 results met management's expectations, but global economic uncertainty has led to client and candidate caution and slower decision-making[87](index=87&type=chunk) - The US labor market remains resilient, with a **3.0%** GDP growth rate in Q2 2025 and a low unemployment rate of **2.5%** for professionals with a college degree[88](index=88&type=chunk)[89](index=89&type=chunk) - The company continues to invest in technology and AI to enhance digital experiences and improve talent acquisition tools[91](index=91&type=chunk) Key Financial Metrics for H1 2025 | Metric | Amount | | :--- | :--- | | Service Revenues | $2.72 billion | | Year-over-Year Change | -7.7% | | Net Income | $58 million | | Diluted Net Income Per Share | $0.58 | [Critical Accounting Policies and Estimates](index=21&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms there have been no material changes to the company's critical accounting policies and estimates during the first half of 2025 - There have been no material changes to the company's critical accounting policies and estimates during the six months ended June 30, 2025[93](index=93&type=chunk) [Recent Accounting Pronouncements](index=21&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note B of the financial statements for a detailed discussion of new accounting standards - For information on recent accounting pronouncements, refer to Note B to the Financial Statements in Part I, Item 1 of this report[94](index=94&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) This section analyzes the operating results of the company's three reportable segments for the three and six months ended June 30, 2025 - The company's operating results are analyzed across its three reportable segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti[95](index=95&type=chunk) - Demand for the company's services is highly dependent on global economic and labor market trends, making future demand difficult to predict[96](index=96&type=chunk) [Non-GAAP Financial Measures](index=22&type=section&id=Non-GAAP%20Financial%20Measures) This section defines the non-GAAP financial measures used by the company to supplement its GAAP results and aid in performance analysis - The company uses non-GAAP measures such as adjusted gross profit and adjusted revenue growth to provide additional insight into operational performance[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - Adjusted revenue growth is calculated by removing the impacts of billing day variations and foreign currency exchange rates[99](index=99&type=chunk) [Three Months Ended June 30, 2025 and 2024](index=22&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20and%202024) This section provides a detailed comparative analysis of the company's operating results for the second quarter of 2025 versus 2024 [Service Revenues_Q2](index=22&type=section&id=Service%20Revenues_Q2) Q2 2025 service revenues decreased 7.0% year-over-year, with declines in both contract and permanent placement solutions, partially offset by growth in Protiviti - The decline in Contract Talent Solutions revenue was driven by a **15.4% decrease** in hours worked, while Permanent Placement revenue fell due to an **18.0% drop** in placements[103](index=103&type=chunk)[105](index=105&type=chunk) Q2 2025 Service Revenues (in thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Service Revenues | 1,369,743 | 1,472,524 | -7.0% | | U.S. Revenues | 1,060,000 | 1,150,000 | -7.4% | | International Revenues | 306,000 | 323,000 | -5.3% | | Contract Talent Solutions Revenues | 760,000 | 855,000 | -11.1% | | Permanent Placement Talent Solutions Revenues | 115,000 | 131,000 | -12.5% | | Protiviti Revenues | 495,000 | 487,000 | +1.8% | [Gross Margin_Q2](index=23&type=section&id=Gross%20Margin_Q2) Q2 2025 gross profit decreased 11.7% year-over-year, with gross margin rates declining across the Contract Talent Solutions and Protiviti segments Q2 2025 Gross Profit (in thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Gross Profit | 509,474 | 576,679 | -11.7% | | Contract Talent Solutions Gross Profit | 297,367 | 336,161 | -11.5% | | Permanent Placement Talent Solutions Gross Profit | 114,551 | 130,801 | -12.4% | | Protiviti Gross Profit | 97,556 | 109,717 | -11.1% | Q2 2025 Gross Margin (%) | Segment | June 30, 2025 (Reported) | June 30, 2024 (Reported) | June 30, 2025 (Adjusted) | June 30, 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | 39.1% | 39.3% | 39.1% | 39.3% | | Permanent Placement Talent Solutions | 99.9% | 99.8% | 99.9% | 99.8% | | Protiviti | 19.7% | 22.5% | 22.3% | 23.2% | | **Total** | **37.2%** | **39.2%** | **38.1%** | **39.4%** | [Selling, General and Administrative Expenses_Q2](index=25&type=section&id=Selling,%20General%20and%20Administrative%20Expenses_Q2) Q2 2025 SG&A expenses increased 1.4% year-over-year, and as a percentage of revenue, adjusted SG&A rose from 33.2% to 33.8% due to negative leverage Q2 2025 Selling, General and Administrative Expenses (in thousands of USD) | Metric | June 30, 2025 (Reported) | June 30, 2024 (Reported) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total SG&A Expenses | 507,934 | 501,136 | +1.4% | | Contract Talent Solutions | 318,871 | 308,886 | +3.2% | | Permanent Placement Talent Solutions | 111,218 | 116,285 | -4.4% | | Protiviti | 77,845 | 75,965 | +2.5% | Q2 2025 SG&A Expenses as a Percentage of Revenue (%) | Segment | June 30, 2025 (Reported) | June 30, 2024 (Reported) | June 30, 2025 (Adjusted) | June 30, 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | 42.0% | 36.1% | 36.7% | 34.9% | | Permanent Placement Talent Solutions | 97.0% | 88.7% | 92.7% | 87.5% | | Protiviti | 15.7% | 15.6% | 15.7% | 15.6% | | **Total** | **37.1%** | **34.0%** | **33.8%** | **33.2%** | [Operating Income_Q2](index=26&type=section&id=Operating%20Income_Q2) Q2 2025 operating income declined sharply by 98.0% year-over-year to $2 million, with the adjusted operating margin falling from 6.2% to 4.3% Q2 2025 Operating Income (in thousands of USD) | Metric | June 30, 2025 (Reported) | June 30, 2024 (Reported) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Income | 1,540 | 75,543 | -98.0% | | Contract Talent Solutions | (21,504) | 27,275 | -178.8% | | Permanent Placement Talent Solutions | 3,333 | 14,516 | -77.1% | | Protiviti | 19,711 | 33,752 | -41.6% | Q2 2025 Operating Income as a Percentage of Revenue (%) | Segment | June 30, 2025 (Reported) | June 30, 2024 (Reported) | June 30, 2025 (Adjusted) | June 30, 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | (2.8%) | 3.2% | 2.4% | 4.5% | | Permanent Placement Talent Solutions | 2.9% | 11.1% | 7.2% | 12.3% | | Protiviti | 4.0% | 6.9% | 6.6% | 7.6% | | **Total** | **0.1%** | **5.1%** | **4.3%** | **6.2%** | [Income from Investments Held in Employee Deferred Compensation Trusts_Q2](index=27&type=section&id=Income%20from%20Investments%20Held%20in%20Employee%20Deferred%20Compensation%20Trusts_Q2) Q2 2025 investment income from employee deferred compensation trusts was $58 million, a significant increase from $16 million in the prior-year period - The increase in investment income was primarily attributable to positive market returns during the second quarter of 2025[123](index=123&type=chunk) Q2 2025 Income from Investments Held in Employee Deferred Compensation Trusts (in thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Investment Income | 58,000 | 16,000 | +262.5% | [Provision for income taxes_Q2](index=27&type=section&id=Provision%20for%20income%20taxes_Q2) The effective tax rate for Q2 2025 was 33.3%, up from 29.3% in the prior-year period, due to the impact of non-deductible expenses on lower pre-tax income - The higher tax rate in 2025 is attributed to the increased impact of non-deductible expenses on lower pre-tax income[124](index=124&type=chunk) - The company is currently evaluating the potential impact of the "One Big Beautiful Bill Act," a new U.S. tax law enacted on July 4, 2025[125](index=125&type=chunk) Q2 2025 Provision for Income Taxes (%) | Period | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Effective Tax Rate | 33.3% | 29.3% | [Six Months Ended June 30, 2025 and 2024](index=27&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section provides a detailed comparative analysis of the company's operating results for the first half of 2025 versus 2024 [Service Revenues_H1](index=27&type=section&id=Service%20Revenues_H1) H1 2025 service revenues decreased 7.7% year-over-year, with declines in both contract and permanent placement solutions, partially offset by growth in Protiviti - The decline in Contract Talent Solutions revenue was driven by a **15.8% decrease** in hours worked, while Permanent Placement revenue fell due to a **14.8% drop** in placements[127](index=127&type=chunk)[128](index=128&type=chunk) H1 2025 Service Revenues (in thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Service Revenues | 2,721,650 | 2,948,461 | -7.7% | | U.S. Revenues | 2,130,000 | 2,290,000 | -7.2% | | International Revenues | 594,000 | 657,000 | -9.5% | | Contract Talent Solutions Revenues | 1,520,000 | 1,740,000 | -12.6% | | Permanent Placement Talent Solutions Revenues | 227,000 | 256,000 | -11.3% | | Protiviti Revenues | 972,000 | 951,000 | +2.2% | [Gross Margin_H1](index=28&type=section&id=Gross%20Margin_H1) H1 2025 gross profit decreased 11.5% year-over-year, with gross margin rates declining across the Contract Talent Solutions and Protiviti segments H1 2025 Gross Profit (in thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Gross Profit | 1,008,519 | 1,139,476 | -11.5% | | Contract Talent Solutions Gross Profit | 594,300 | 686,731 | -13.5% | | Permanent Placement Talent Solutions Gross Profit | 226,412 | 255,349 | -11.3% | | Protiviti Gross Profit | 187,807 | 197,396 | -4.9% | H1 2025 Gross Margin (%) | Segment | June 30, 2025 (Reported) | June 30, 2024 (Reported) | June 30, 2025 (Adjusted) | June 30, 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | 39.0% | 39.4% | 39.0% | 39.4% | | Permanent Placement Talent Solutions | 99.8% | 99.8% | 99.8% | 99.8% | | Protiviti | 19.3% | 20.8% | 20.2% | 22.0% | | **Total** | **37.1%** | **38.6%** | **37.4%** | **39.0%** | [Selling, General and Administrative Expenses_H1](index=30&type=section&id=Selling,%20General%20and%20Administrative%20Expenses_H1) H1 2025 SG&A expenses decreased 5.4% year-over-year, but as a percentage of revenue, adjusted SG&A rose from 33.1% to 34.5% due to negative leverage H1 2025 Selling, General and Administrative Expenses (in thousands of USD) | Metric | June 30, 2025 (Reported) | June 30, 2024 (Reported) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total SG&A Expenses | 968,097 | 1,023,035 | -5.4% | | Contract Talent Solutions | 595,083 | 640,474 | -7.1% | | Permanent Placement Talent Solutions | 217,353 | 232,861 | -6.7% | | Protiviti | 155,661 | 149,700 | +4.0% | H1 2025 SG&A Expenses as a Percentage of Revenue (%) | Segment | June 30, 2025 (Reported) | June 30, 2024 (Reported) | June 30, 2025 (Adjusted) | June 30, 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | 39.1% | 36.8% | 37.4% | 34.4% | | Permanent Placement Talent Solutions | 95.8% | 91.0% | 94.6% | 88.9% | | Protiviti | 16.0% | 15.7% | 16.0% | 15.7% | | **Total** | **35.6%** | **34.7%** | **34.5%** | **33.1%** | [Operating Income_H1](index=31&type=section&id=Operating%20Income_H1) H1 2025 operating income declined sharply by 65.3% year-over-year to $40 million, with the adjusted operating margin falling from 6.0% to 2.9% H1 2025 Operating Income (in thousands of USD) | Metric | June 30, 2025 (Reported) | June 30, 2024 (Reported) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Income | 40,422 | 116,441 | -65.3% | | Contract Talent Solutions | (783) | 46,257 | -101.7% | | Permanent Placement Talent Solutions | 9,059 | 22,488 | -59.7% | | Protiviti | 32,146 | 47,696 | -32.6% | H1 2025 Operating Income as a Percentage of Revenue (%) | Segment | June 30, 2025 (Reported) | June 30, 2024 (Reported) | June 30, 2025 (Adjusted) | June 30, 2024 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Contract Talent Solutions | (0.1%) | 2.7% | 1.6% | 5.1% | | Permanent Placement Talent Solutions | 4.0% | 8.8% | 5.2% | 10.9% | | Protiviti | 3.3% | 5.0% | 4.2% | 6.2% | | **Total** | **1.5%** | **3.9%** | **2.9%** | **6.0%** | [Income from Investments Held in Employee Deferred Compensation Trusts_H1](index=32&type=section&id=Income%20from%20Investments%20Held%20in%20Employee%20Deferred%20Compensation%20Trusts_H1) H1 2025 investment income from employee deferred compensation trusts was $37 million, a decrease from $59 million in the prior-year period - The investment income was generated from positive market returns during the first half of 2025[146](index=146&type=chunk) H1 2025 Income from Investments Held in Employee Deferred Compensation Trusts (in thousands of USD) | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Investment Income | 37,000 | 59,000 | -37.2% | [Provision for income taxes_H1](index=32&type=section&id=Provision%20for%20income%20taxes_H1) The effective tax rate for H1 2025 was 30.3%, slightly higher than the 29.5% rate in the prior-year period H1 2025 Provision for Income Taxes (%) | Period | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Effective Tax Rate | 30.3% | 29.5% | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity position and capital resources, analyzing cash flows from operating, investing, and financing activities - The company's liquidity is primarily influenced by cash from operations and its use for capital expenditures, stock repurchases, and dividends[148](index=148&type=chunk) - In H1 2025, operating activities provided **$60 million** in net cash, while investing and financing activities used **$49 million** and **$192 million**, respectively[149](index=149&type=chunk) - The company anticipates capital expenditures for 2025 to be between **$75 million** and **$90 million**[152](index=152&type=chunk) - During H1 2025, the company repurchased **1.1 million** shares for **$59 million** and paid **$121 million** in dividends[153](index=153&type=chunk)[154](index=154&type=chunk) - The company entered into a **$100 million credit agreement** on May 28, 2025, with no borrowings outstanding as of June 30, 2025[157](index=157&type=chunk) Cash and Cash Equivalents (in thousands of USD) | Period | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 381,000 | 547,000 | [Material Cash Requirements from Contractual Obligations](index=33&type=section&id=Material%20Cash%20Requirements%20from%20Contractual%20Obligations) This section outlines the company's primary contractual cash requirements, including lease liabilities and employee deferred compensation plan obligations - As of June 30, 2025, the company had current and long-term operating lease liabilities of **$69 million** and **$175 million**, respectively[159](index=159&type=chunk) - Purchase obligations did not change materially during the first half of 2025[161](index=161&type=chunk) - Employee deferred compensation plan obligations totaled **$700 million** as of June 30, 2025, and are funded by investment trust assets that exceed the obligation[162](index=162&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discloses the company's exposure to market risks, primarily related to foreign currency exchange rate fluctuations - Approximately **21.8%** of the company's revenues are generated outside the U.S., exposing it to foreign currency exchange rate risk[163](index=163&type=chunk)[164](index=164&type=chunk) - In H1 2025, currency fluctuations decreased reported service revenues by **$4.2 million** (0.1%) and net income by **$0.1 million** (0.4%)[165](index=165&type=chunk) - Exchange rate movements impact reported results but generally do not result in realized economic gains or losses or affect cash flows[167](index=167&type=chunk) [ITEM 4. Controls and Procedures](index=35&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section confirms management's evaluation of disclosure controls and procedures, concluding they were effective as of the end of the reporting period - Management has evaluated and concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[168](index=168&type=chunk) - There were no material changes to the company's internal controls during the three months ended June 30, 2025[168](index=168&type=chunk) [PART II—OTHER INFORMATION](index=36&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [ITEM 1. Legal Proceedings](index=36&type=section&id=ITEM%201.%20Legal%20Proceedings) This section states there have been no material developments in any legal proceedings previously disclosed in the company's 2024 Annual Report - There have been no material developments in previously disclosed legal proceedings during the reporting period[171](index=171&type=chunk) [ITEM 1A. Risk Factors](index=36&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers to the risk factor discussions in the company's Annual Report and previous quarterly reports - For a discussion of potential risks and uncertainties, refer to the "Risk Factors" section of the company's 2024 Annual Report and Q1 2025 Quarterly Report[172](index=172&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section discloses the company's stock repurchase activities during the second quarter of 2025 - As of June 30, 2025, the company has repurchased **131.8 million** of the **138 million** shares authorized for repurchase[177](index=177&type=chunk) Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet Be Purchased Under the Plans | | :--- | :--- | :--- | :--- | :--- | | April 1 - April 30, 2025 | 202 (a) | $43.68 | — | 6,611,589 | | May 1 - May 31, 2025 | 100,000 | $46.08 | 100,000 | 6,511,589 | | June 1 - June 30, 2025 | 361,674 (b) | $42.97 | 360,504 | 6,151,085 | | **Total April 1 - June 30, 2025** | **461,876** | | **460,504** | | [ITEM 3. Defaults Upon Senior Securities](index=36&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - No defaults upon senior securities[174](index=174&type=chunk) [ITEM 4. Mine Safety Disclosure](index=36&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosure) This section states that mine safety disclosures are not applicable to the company's business - Mine safety disclosures are not applicable[175](index=175&type=chunk) [ITEM 5. Other Information](index=36&type=section&id=ITEM%205.%20Other%20Information) This section states that there is no other information to disclose - No other information[176](index=176&type=chunk) [ITEM 6. Exhibits](index=36&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the report, including certifications and XBRL data - Exhibits include the company's articles of incorporation, CEO and CFO certifications, and financial data in Inline XBRL format[179](index=179&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) This section contains the signatures of the company's authorized officers as required by the Securities Exchange Act - The report was signed on August 5, 2025, by Michael C Buckley, Executive Vice President and Chief Financial Officer[181](index=181&type=chunk)

Core Insights - The majority of workers (73%) plan to remain in their current roles through the end of 2025, indicating a trend towards job stability [2][3] - Only 27% of workers intend to actively seek new employment in the latter half of the year, a decrease from 29% in January and 35% a year prior [1][3] Worker Sentiment - Among those planning to stay, 37% value their current flexibility and do not wish to risk losing it [3] - The top reasons for staying include a positive company culture (33%), professional fulfillment (31%), and competitive compensation (29%) [6] Job Search Trends - Gen Z (32%) and Millennials (31%) are the most likely demographics to seek new jobs, with marketing and creative (34%) and technology professionals (30%) also showing significant interest [3] - The primary motivators for job seekers are better benefits and perks (45%), career advancement opportunities (43%), and higher pay (42%) [3] Contract Work Insights - A significant portion (91%) of those considering a career change are interested in switching industries, while 71% would contemplate contract work instead of full-time positions [4] - Contract work is increasingly viewed as a viable long-term career path, offering flexibility and diverse experiences [8][9] Company Strategy - Employers are encouraged to adopt strategic approaches to attract talent, focusing on flexibility, career development, and fostering a positive workplace culture [4]

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]

Core Viewpoint - The analyst had a sell rating for Robert Half Inc. (NYSE: RHI) due to its elevated stock multiple amidst ongoing challenges, but there are early signs of improvement in the company's fundamentals [1]. Group 1: Investment Philosophy - The investment approach is fundamentally driven, focusing on identifying businesses with potential for long-term scaling and significant terminal value [1]. - Key factors considered include competitive moat, unit economics, reinvestment opportunities, and management quality, which are essential for long-term free cash flow generation and shareholder value creation [1]. - The analyst emphasizes the importance of fundamental research and targets sectors with strong secular tailwinds [1]. Group 2: Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds sourced from friends and family [1]. - The motivation for writing is to share investment insights and receive feedback from the investment community [1]. - The goal is to help readers focus on the drivers of long-term equity value, advocating for analysis that is both analytical and accessible [1].

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]