Robert Half(US:RHI)2025-10-22 20:03Financial 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].