Robert Half International Q4 Earnings & Revenues Beat Estimates

Core Insights - Robert Half International Inc. (RHI) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][11] - Quarterly earnings were 32 cents per share, surpassing the consensus by 6.7%, but showed a decline of 39.6% year over year [1] - Revenues reached $1.30 billion, beating the consensus by 0.9%, yet decreased by 5.8% year over year [1] Financial Performance - RHI's shares have decreased by 58.2% year over year, contrasting with a 41.3% decline in the Staffing Firms industry and a 17.6% increase in the Zacks S&P 500 composite [2] - Talent Solutions revenues were $720.85 million, down 9% year over year, missing the estimate of $801.3 million [3] - U.S. Talent Solutions revenues were $623 million, also down 9% year over year, while non-U.S. revenues fell 8% to $200 million [3] - Protiviti revenues totaled $479 million, down 3% year over year, falling short of the expectation of $487.8 million [4] - U.S. Protiviti revenues decreased by 6% to $373 million, while non-U.S. revenues increased by 9% to $106 million [4] Currency Impact and Margins - Currency exchange rate movements contributed an increase of $10 million to total revenues year over year, with $5 million attributed to both Talent Solutions and Protiviti [5] - Adjusted gross profit for the quarter was $494.14 million, down 8% year over year, with a gross profit margin of 37.9%, a decrease of 100 basis points year over year [6] Balance Sheet and Cash Flow - RHI ended the quarter with cash and cash equivalents of $464.44 million, down from $537.58 million in the fourth quarter of 2024 [7] - Cash flow from operations was $183 million, with capital expenditures of $53.16 million and $59 million paid out in dividends [7] Guidance - RHI anticipates 61.9 billing days for Q1 2026, consistent with Q1 2024, and expects a total of 250.7 billing days for the year, the same as in 2025 [8] - The projected tax rate for Q1 2026 is between 56-58%, with capital expenditures expected to range from $10 million to $20 million [9] - For the full year 2026, capital expenditures are estimated to be between $70 million and $90 million, with a tax rate projected between 33% and 35% [9]