Core Insights - Robert Half (RHI) reported $1.35 billion in revenue for the quarter ended September 2025, reflecting a year-over-year decline of 7.5% and an EPS of $0.43 compared to $0.64 a year ago, aligning with Zacks Consensus Estimate [1] - The company has not delivered an EPS surprise, with the consensus EPS estimate being $0.43 [1] Revenue Performance - Service Revenues from Permanent placement talent solutions were $110.13 million, below the average estimate of $116.24 million, marking a year-over-year decline of 10.7% [4] - Service Revenues from Protiviti reached $498.13 million, slightly below the average estimate of $504.88 million, representing a year-over-year change of -2.6% [4] - Total contract talent solutions generated $746.22 million, exceeding the average estimate of $735.84 million, but still reflecting a year-over-year decline of 10.1% [4] - Contract talent solutions in Technology reported $157.85 million, below the average estimate of $162.26 million, with a year-over-year change of -1.5% [4] - Contract talent solutions in Finance & Accounting totaled $553.36 million, surpassing the average estimate of $532.19 million, but showing a year-over-year decline of 9.9% [4] - Administrative and customer support contract talent solutions generated $158.69 million, slightly above the average estimate of $155.7 million, with a year-over-year decline of 11.1% [4] - The elimination of intersegment contract talent solutions reported $-123.68 million, compared to the average estimate of $-119.88 million, reflecting a year-over-year change of +1.1% [4] Stock Performance - Shares of Robert Half have returned -8.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Robert Half reported quarterly earnings of $0.43 per share, matching the Zacks Consensus Estimate, but down from $0.64 per share a year ago [1] - The company generated revenues of $1.35 billion for the quarter, also in line with the Zacks Consensus Estimate, compared to $1.47 billion in the same quarter last year [2] Financial Performance - Earnings per share (EPS) for the last quarter was $0.43, consistent with expectations, and a slight increase from the previous quarter's expected EPS of $0.40, where the actual was $0.41, resulting in a surprise of +2.5% [1][3] - Revenue for the quarter was $1.35 billion, which is a decrease of approximately 8.16% from $1.47 billion year-over-year [2] Market Performance - Robert Half shares have declined about 56% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $1.29 billion, and for the current fiscal year, it is $1.39 on revenues of $5.37 billion [7] - The staffing industry, to which Robert Half belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q3 2025 were $1.354 billion, down 8% year-over-year on both reported and adjusted bases [3][4] - Net income per share decreased to $0.43 from $0.64 in the same quarter last year [4] - Cash flow from operations was $77 million, with a cash dividend of $0.59 per share distributed, totaling $59 million [5] Business Line Data and Key Metrics Changes - Talent Solutions revenues were $649 million in the U.S., down 11% year-over-year, while non-U.S. revenues were $207 million, down 12% [6] - Protiviti's global revenues were $498 million, with U.S. revenues at $398 million (down 6%) and non-U.S. revenues at $100 million (up 8%) [7] - Contract Talent Solutions bill rates increased by 3.7% compared to the previous year [7] Market Data and Key Metrics Changes - The third quarter had 64.2 billing days compared to 64.1 in the same quarter last year, while the fourth quarter is expected to have 61.4 billing days [6] - Currency exchange rate movements positively impacted reported revenues by $9 million year-over-year [6] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities in staffing and consulting services, leveraging its brand, technology, and talent [5][16] - Protiviti's growth rates are expected to improve, with a focus on returning to double-digit operating margins in the future [44] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of improvement in the macroeconomic environment, with increased client discussions about staffing and hiring [16] - The company remains committed to its dividend policy, with free cash flow covering the dividend despite recent downturns in the staffing industry [25][27] Other Important Information - The company has $360 million in cash on the balance sheet, providing a cushion for dividend commitments [25] - The tax rate for Q3 was 33%, up from 31% the previous year, due to non-deductible expenses [10] Q&A Session Summary Question: Update on Protiviti's pipeline and pricing - Management confirmed that the pipeline is growing, but projects are shifting from large to smaller, less efficient ones, impacting margins [22][23] Question: Sustainability of the dividend - The company remains committed to the dividend, with free cash flow covering it and a strong cash position [25][27] Question: Fourth quarter revenue guidance - The guidance is described as conservative, with expectations for slight sequential growth [30] Question: Trends in permanent versus contract placements - Permanent placements are currently performing better than contract placements, which is counterintuitive given historical trends [36] Question: Protiviti's gross margin compression - Gross margin compression is attributed to inflation, project mix, and competitive pressures in the consulting market [41][42] Question: Long-term operating margin opportunities - The company is focused on improving margins through skill enhancement and technology investments [48][49] Question: Impact of government shutdown on revenue - The federal government contributes less than 0.5% to total revenue, with no significant impact expected from the shutdown [51] Question: AI's impact on the labor market - Management believes AI has not significantly impacted the staffing industry, with trends indicating stability in experienced roles [56][66]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q3 2025 were $1.354 billion, down 8% year-over-year on both reported and adjusted bases [3][4] - Net income per share decreased to $0.43 from $0.64 in the same quarter last year [4] - Cash flow from operations was $77 million, with a cash dividend of $0.59 per share distributed, totaling $59 million [5] Business Line Data and Key Metrics Changes - Talent Solutions revenues were $649 million in the U.S., down 11% year-over-year, while non-U.S. revenues were $207 million, down 12% [6] - Protiviti's global revenues were $498 million, with U.S. revenues at $398 million (down 6%) and non-U.S. revenues at $100 million (up 8%) [7] - Contract Talent Solutions bill rates increased by 3.7% compared to the previous year [7] Market Data and Key Metrics Changes - The third quarter had 64.2 billing days compared to 64.1 in the same quarter last year, while the fourth quarter is expected to have 61.4 billing days [6] - Currency exchange rate movements positively impacted reported revenues by $9 million [6] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities in staffing and consulting services, leveraging its brand, technology, and talent [5][15] - Protiviti's pipeline is growing, and the company expects improvements in growth rates in Q4 [17][42] Management's Comments on Operating Environment and Future Outlook - Management noted early signs of improvement in the macroeconomic environment, with increased client discussions about staffing and hiring [15][16] - The company remains committed to its dividend policy, with free cash flow covering the dividend despite recent downturns in the staffing industry [25][26] Other Important Information - The adjusted operating income for Q3 was $61 million, or 4.5% of revenue, with a tax rate of 33% [10][12] - The company has $360 million in cash on the balance sheet, providing a cushion for future operations [25] Q&A Session Summary Question: Regarding Protiviti's pipeline and project materialization - Management confirmed that the pipeline is growing and projects are materializing as expected, though they are replacing larger projects with smaller ones, impacting efficiency [21][22] Question: Sustainability of the dividend - Management emphasized the importance of the dividend and confirmed that free cash flow currently covers it, with a commitment to return cash to shareholders [25][26] Question: Fourth quarter revenue guidance - Management described the fourth quarter guidance as conservative, with expectations for slight sequential growth [29] Question: Trends in permanent placement versus contract - Management noted that permanent placements are currently performing better than contract placements, which is counterintuitive but reflects current market dynamics [36] Question: Protiviti's gross margin compression - Management attributed gross margin compression to inflation, competitive pressures, and a shift to smaller, lower-margin projects [42][43] Question: Long-term operating margin opportunities - Management highlighted the importance of moving up the skill curve and leveraging technology to improve margins over the next cycle [48][49] Question: Impact of government shutdown on revenue - Management indicated that the federal government contributes less than half of 1% to revenue, and no significant impact from the shutdown is expected [51] Question: AI's impact on the labor market - Management expressed confidence that AI has not significantly impacted the staffing industry, attributing recent downturns to client caution and reduced contractor usage [56][65]

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

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

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

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

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

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