Core Insights - Robert Half (NYSE: RHI) has experienced a significant decline in share value, losing over 50% in the past year due to a weakening labor market impacting demand for its placement and contract services [1] Company Performance - The company's stock performance has been notably poor, with a loss of more than half of its value over the last year [1] Market Conditions - A weakening labor market has led to a substantial reduction in demand for the services offered by Robert Half, affecting its overall business performance [1]

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]

Q3 2025 Financial Performance - Revenues decreased to $1,011.4 million, a 1.9% decrease compared to $1,031.0 million in Q3 2024[6] - Net Income decreased to $38.1 million, compared to $47.5 million in Q3 2024[6] - Adjusted EBITDA decreased to $112.6 million, compared to $116.9 million in Q3 2024[6] - Adjusted EBITDA margin was 11.1%, a decrease from 11.3% in Q3 2024[6] - Free Cash Flow decreased to $72.0 million, a 43.7% decrease compared to $127.9 million in Q3 2024[8] Revenue Mix - Consumer & Industrial sector accounted for 22% of revenue in Q3 2025, compared to 19% in Q3 2024[7] - TMT (Technology, Media & Telecom) sector remained stable at 14% in both Q3 2025 and Q3 2024[7] - Financial Services sector accounted for 13% of revenue in Q3 2025, compared to 15% in Q3 2024[7] - Defense & Intel sector accounted for 13% of revenue in Q3 2025, compared to 14% in Q3 2024[7] Federal Segment - Federal segment revenues decreased by 3.9% year-over-year, from $312.2 million in Q3 2024 to $300.1 million in Q3 2025[18] - Adjusted EBITDA for the Federal segment was $33.5 million, representing 11.2% of revenues[18,21] - New contract awards in the Federal segment were $461.4 million in Q3 2025, compared to $666.4 million in Q3 2024[23] Q4 2025 Financial Estimates - Revenues are estimated to be between $960.0 million and $980.0 million, representing a year-over-year decrease of 0.5% to 2.5%[26] - Adjusted EBITDA is estimated to be between $102.0 million and $107.0 million, with an Adjusted EBITDA Margin between 10.6% and 10.9%[26]

Core Insights - Staffing and recruiting firm Kelly Services is reducing its corporate workforce by approximately 2%, affecting around 100 employees [1][2] - The layoffs are part of a "targeted reduction" aimed at streamlining the organizational structure to better meet client needs [1][2] - The reductions occur under the new CEO Chris Layden, who started in September, amidst a slowing US labor market [2][3] Company Performance - Kelly Services reported a revenue of $4.3 billion in 2024 and places over 400,000 workers annually across various sectors including science, tech, education, manufacturing, retail, and finance [3] - The company's shares experienced a decline of less than 1% during afternoon trading on the day of the announcement [3] Industry Context - As of September, US employers' hiring plans were at their lowest year-to-date level since 2009, indicating a potential slowdown in the labor market [3] - Despite overall layoffs remaining low, many job seekers are facing challenges in securing corporate roles [2]

Core Insights - The company has experienced a modest improvement in win rates and secured new enterprise programs in sectors like financial services and life sciences, contributing to margin improvement and future growth as client demand recovers [1] - After eleven consecutive quarters of organic constant currency revenue declines, the company returned to growth in the third quarter, driven by stabilization of demand in North America and Europe [2][4] - The ManpowerGroup Employment Outlook Survey indicates a steady hiring outlook, with 45% of employers planning to maintain current workforce levels, the highest since early 2022 [3] Financial Performance - Reported revenue for the quarter was $4.6 billion, down 2% year-over-year in constant currency, while system-wide revenue was $4.9 billion [5][10] - Reported EBITDA was $74 million, with an adjusted EBITDA of $96 million, representing a 22% decrease in constant currency year-over-year [5][11] - Earnings per diluted share were $0.38 on a reported basis and $0.83 on an adjusted basis, with adjusted earnings per share decreasing by 39% year-over-year in constant currency [5][12] Market Trends - Gradual signs of stabilization in hiring are observed, with employers adapting to economic uncertainty and geopolitical complexities [4][6] - The company is seeing strong momentum in Latin America and APME, while Europe and North America show softer trends [4][7] - The demand in Europe and North America is holding steady, with an expanding enterprise pipeline concentrated among global enterprise clients [7] Business Segment Performance - The Manpower brand reported a 3% growth in organic constant currency, while Experis and Talent Solutions brands declined by 7% and 8% respectively [13] - The Americas segment revenue increased by 6% year-over-year on a constant currency basis, while Southern Europe revenue decreased by 1% [18][21] - The Asia Pacific Middle East segment saw an 8% increase in organic constant currency revenue, with Japan's revenue growing by 6% [25] Cost Management and Efficiency - The company is focused on cost containment and driving efficiencies, with adjusted SG&A expenses down 2% on a constant currency basis [16][17] - Capital expenditures for the quarter were $15 million, and free cash flow was $45 million, reflecting a positive trend despite previous declines [26][27] - The company is advancing digitization and standardization initiatives to streamline operations and improve efficiency [31][32] Future Outlook - The company forecasts ongoing stability in most markets, with earnings per share for the fourth quarter expected to be in the range of $0.78 to $0.88 [29] - The guidance includes a favorable foreign currency impact and anticipates a flat revenue trend at the midpoint [30] - Employers are becoming more resilient to policy fluctuations, with improved visibility for planning into 2026 [41]

Financial Data and Key Metrics Changes - Reported revenue for the quarter was $4.6 billion, down 2% year-over-year in constant currency, while system-wide revenue was $4.9 billion [7][11] - Reported EBITDA for the quarter was $74 million, with adjusted EBITDA at $96 million, representing a decrease of 22% in constant currency year-over-year [7][8] - Adjusted earnings per share decreased by 39% year-over-year in constant currency, with reported EPS at $0.38 and adjusted EPS at $0.83 [8][12] Business Line Data and Key Metrics Changes - The Manpower brand experienced a 3% growth year-over-year on an organic constant currency basis, while Experis declined by 7% and Talent Solutions declined by 8% [14] - Gross profit margin for the quarter was 16.6%, with staffing margin contributing a 40 basis point reduction due to a shift towards enterprise accounts [14][16] - The consolidated gross profit decreased by 4% on an organic constant currency basis year-over-year, with Manpower brand reporting flat gross profit [15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 6% year-over-year increase on a constant currency basis [17] - Southern Europe revenue was $2.2 billion, reflecting a 1% decrease in organic constant currency [20] - The Asia-Pacific Middle East segment saw revenues of $521 million, representing an 8% increase in organic constant currency [23] Company Strategy and Development Direction - The company is focused on digitization and standardization across operations, with significant progress in global business services initiatives [28][29] - The implementation of AI, particularly the Sophie AI platform, is expected to enhance operational efficiency and client outcomes [30][56] - The company aims to balance cost containment with strategic investments to strengthen capabilities and expand margins [9][29] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious hiring environment with stabilization signs, particularly in North America and Europe, despite geopolitical tensions [4][9] - The outlook for the fourth quarter anticipates ongoing stability in most markets, with EPS guidance in the range of $0.78 - $0.88 [26] - There is cautious optimism for improved economic conditions in 2026, particularly in Europe and North America [46] Other Important Information - Free cash flow for the quarter was $45 million, down from $67 million in the prior year, with capital expenditures at $15 million [24][25] - The company ended the quarter with cash of $275 million and total debt of $1.2 billion, reflecting an improvement in net debt [25] Q&A Session Summary Question: When business confidence improves, would there be an early cycle pickup in flexible staffing volumes? - Management indicated that the current labor market is "frozen," with little hiring or workforce reductions, but there are signs of stabilization and potential growth if employer confidence returns [33][34] Question: Can you discuss the trends seen in the quarter and any volatility due to economic conditions? - Management noted improvements in France and Italy, with stable performance in the U.S., although some volatility was observed due to previous large RPO volumes [38][40] Question: Are there any price pressures or mix issues impacting gross profit? - Management confirmed that the primary driver of staffing margin pressure is the mix shift towards enterprise clients, with no significant pricing changes observed [42][43] Question: How is political turmoil in France impacting business sentiment? - Management acknowledged that while political uncertainty is not helpful, clients are navigating the environment pragmatically and focusing on talent investments [71][73] Question: What are the drivers of blue-collar staffing outperforming white-collar staffing? - Management attributed the outperformance of the Manpower brand to improving PMI and employer resilience, while noting that the Experis brand is impacted by slower traditional IT project investments [79][81]

Financial Performance - Revenue was $4.6 billion, with system-wide revenue reaching $4.9 billion[5] - Gross margin stood at 16.6%[5] - EBITA was $74 million ($96 million as adjusted), resulting in an EBITA margin of 1.6% (2.1% as adjusted)[5] - EPS was $0.38 ($0.83 as adjusted)[5] Business Line Performance - Manpower organic constant currency revenue increased slightly from the Q2 trend of 1% year over year[10] - Talent Solutions organic constant currency revenues declined from the Q2 trend of 1% year over year[10] - Experis organic constant currency revenue trend improved from the Q2 trend of -9% year over year[10] Segment Performance - Americas revenue was $1.1 billion, with an operating unit profit (OUP) of $38 million (3.5% OUP margin)[19] - Southern Europe revenue was $2.2 billion, with an OUP of $66 million (3.0% OUP margin)[23] - Northern Europe revenue was $817 million, with an OUP of -$15 million (-1.8% OUP margin)[26] - APME (Asia Pacific Middle East) revenue was $521 million, with an OUP of $27 million (5.1% OUP margin)[30] Cash Flow - Free cash flow was $45 million for the quarter[33] - Net earnings were $18 million[33] Outlook - Fourth quarter 2025 total revenue is expected to be up 3-7% (down 2% / up 2% CC)[37] - EPS is projected to be $0.78 – $0.88 (favorable $0.08 currency)[37]