Robert Half(US:RHI)2026-01-29 21:02Financial Performance - For Q4 2025, net income was $32 million, or $0.32 per share, on revenues of $1.302 billion, a decrease of 6% from Q4 2024 revenues of $1.382 billion [2]. - For the full year 2025, net income was $133 million, or $1.33 per share, on revenues of $5.379 billion, compared to $252 million, or $2.44 per share, on revenues of $5.796 billion in 2024 [2]. - Total service revenues for the year 2025 were $5.379 billion, with contract talent solutions contributing $2.990 billion, down from $3.358 billion in 2024 [16]. - Protiviti segment revenues for Q4 2025 were $478.961 million, slightly down from $488.759 million in Q4 2024 [16]. - Cash and cash equivalents as of December 31, 2025, were $464.435 million, down from $537.583 million in 2024 [17]. - Total stockholders' equity decreased to $1.276 billion in 2025 from $1.378 billion in 2024 [17]. Revenue Trends - Global enterprise revenues for Q4 2025 showed a 7% decline on an adjusted basis, but talent solutions and enterprise revenues returned to positive sequential growth for the first time in over three years [3]. - Weekly revenue trends during Q4 2025 indicated positive momentum, which continued into the first three weeks of January 2026 [3]. - For the three months ended December 31, 2025, total talent solutions revenue was $384,730,000, representing a gross margin of 46.7% [23]. - The total revenue for the year ended December 31, 2025, was $2,002,313,000, with a gross margin of 37.2% [23]. - Total talent solutions revenue for Q4 2025 was $391.9 million, representing a 47.6% margin, compared to $375.5 million and a 44.4% margin in Q4 2024 [26]. - For the year ended December 31, 2025, total revenue was $1.93 billion, with a 35.8% margin, compared to $2.01 billion and a 34.6% margin in 2024 [26]. Gross Margin Analysis - Adjusted gross margin for total talent solutions in 2025 was 46.8%, compared to 46.9% in 2024 [23]. - The company reported a gross margin of 39.2% for contract talent solutions in Q4 2025, slightly up from 39.1% in Q4 2024 [23]. - Permanent placement talent solutions maintained a gross margin of 99.8% for both Q4 2025 and Q4 2024 [23]. - For the year ended December 31, 2025, Protiviti's adjusted gross margin was 21.6%, compared to 22.8% in 2024 [23]. - The company’s total talent solutions revenue for the year ended December 31, 2024, was $1,802,743,000, with a gross margin of 46.9% [23]. Operating Income and Expenses - Adjusted selling, general and administrative expenses for Q4 2025 were $275.2 million, or 38.2% of revenue, down from $290.3 million, or 37.0% of revenue in Q4 2024 [26]. - The company reported a total of $1.12 billion in adjusted selling, general and administrative expenses for the year ended December 31, 2025, which is 37.4% of revenue, compared to $1.19 billion and 39.9% in 2024 [26]. - For the three months ended December 31, 2025, the total operating income was $22,451,000, reflecting a 1.7% increase compared to the same period in 2024 [29]. - Protiviti's operating income for the year ended December 31, 2025, was $112,368,000, which is a 5.8% increase from $106,092,000 in 2024 [29]. - The total talent solutions segment reported an operating loss of $12,145,000 for the year ended December 31, 2025, compared to a loss of $25,076,000 in 2024, indicating a significant improvement [29]. Market Position and Strategy - The company was recognized by Fortune as one of the World's Most Admired Companies™ for nearly three decades, highlighting its strong market position [4]. - The company plans to continue focusing on attracting and retaining qualified management personnel and enhancing its service offerings amid competitive pressures [8]. - The company continues to focus on improving operational efficiency and reducing costs, as indicated by the decrease in adjusted expenses [26]. - Future outlook includes continued investment in talent solutions and potential market expansion strategies [26]. Year-over-Year Growth Rates - The company reported a year-over-year revenue growth rate of -10.2% for total talent solutions in Q3 2025 compared to Q3 2024 [32]. - The Protiviti segment experienced a year-over-year growth rate of 11.1% in Q3 2025, indicating resilience in this area despite overall declines in other segments [32]. - The year-over-year growth rate for contract talent solutions in the U.S. was -10.4% in Q3 2025, reflecting ongoing challenges in this market [32]. - The company adjusted its financial measures to reflect a total of $82,330,000 in adjustments for the year ended December 31, 2025, which included reclassifications related to employee deferred compensation [29]. - Q3 2024 global revenue growth for Finance and Accounting reported at -9.2%, adjusted to -10.5% after accounting for billing days and currency impact [38].