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]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q4 2025 were $1.302 billion, down 6% year-over-year on a reported basis and down 7% on an adjusted basis [4] - Net income per share for the quarter was $0.32, compared to $0.53 in Q4 2024 [5] - Cash flow from operations was $183 million, an 18% increase over Q4 2024 [5] - Return on invested capital was 10% in Q4 2025 [6] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 9% year-over-year on an adjusted basis, with U.S. revenues at $623 million and non-U.S. revenues at $200 million [7] - Protiviti's global revenues in Q4 were $479 million, with U.S. revenues down 6% and non-U.S. revenues up 9% year-over-year [8] - Gross margin for Talent Solutions was 46.7%, compared to 46.4% in Q4 2024, while Protiviti's gross margin was 21.9%, down from 24.9% year-over-year [9][10] Market Data and Key Metrics Changes - Contract Talent Solutions bill rates increased by 3.2% year-over-year, adjusted for revenue mix [8] - The number of billing days in Q4 was 61.4, slightly down from 61.6 in the same quarter last year [7] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities and support clients' talent and consulting needs through its unique business model [5] - Protiviti's pipeline remains strong across major solution areas, with a focus on technology consulting and platform modernization [22][102] - The company is exploring innovative pricing strategies in response to AI developments, considering outcome-based pricing models [66][92] Management's Comments on Operating Environment and Future Outlook - Management noted a return to sequential growth for the first time since early 2022, with a more conducive macro environment [18] - Concerns about a near-term economic downturn have moderated, with increased client engagement and hiring plans holding steady [19] - The company expects to return to positive year-over-year growth by Q3 2026, driven by improved revenue trends [30] Other Important Information - The company distributed a cash dividend of $0.59 per share, totaling $59 million [6] - The tax rate for Q4 was 32%, up from 28% in the previous year, due to non-deductible expenses [11] Q&A Session Summary Question: Insights on the top line and efficiency measures - Management indicated that they expect to return to positive year-over-year growth in Q3 and are focusing on efficiency by retaining top producers [30][31] Question: Outlook for the permanent placement market - Management believes the permanent placement market is stronger than it appears, with SMB clients needing to fill roles due to lean internal resources [32] Question: Labor uncertainty due to AI - Management acknowledged that while AI creates uncertainty, it has not significantly impacted current hiring demand from clients [37] Question: Headcount growth plans for Protiviti - Management stated that Protiviti has hidden capacity due to underutilized full-time staff and contractors, allowing for growth without significant headcount increases [42] Question: Pricing environment for Protiviti - Management noted that the pricing environment remains competitive, with some increases expected to offset compensation expenses [91]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q4 2025 were $1.302 billion, down 6% year-over-year on a reported basis and down 7% on an adjusted basis [4] - Net income per share for the quarter was $0.32, compared to $0.53 in Q4 2024 [5] - Cash flow from operations was $183 million, an 18% increase over Q4 2024 [6] - Return on invested capital was 10% in Q4 2025 [6] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 9% year-over-year on an adjusted basis, with U.S. revenues at $623 million and non-U.S. revenues at $200 million [7] - Protiviti's global revenues in Q4 were $479 million, with U.S. revenues down 6% and non-U.S. revenues up 9% year-over-year [8] - Gross margin for Talent Solutions was 46.7% in Q4 2025, compared to 46.4% in Q4 2024 [9] - Protiviti's adjusted gross margin was 22.8% for the quarter, down from 25.1% last year [10] Market Data and Key Metrics Changes - Contract Talent Solutions bill rates increased by 3.2% year-over-year, adjusted for revenue mix [8] - The number of billing days in Q4 2025 was 61.4, slightly down from 61.6 in Q4 2024 [7] - The unemployment rate remains low, with significant pent-up demand for skilled professionals [19] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities and support clients' talent and consulting needs through its industry-leading brand and unique business model [5] - Protiviti's pipeline remains strong across all major solution areas, with a focus on technology modernization and data optimization [23] - The company is exploring innovative pricing strategies in response to AI developments, considering outcome-based pricing models [66] Management's Comments on Operating Environment and Future Outlook - Management noted a return to sequential growth for the first time since early 2022, with a more conducive macro environment [18] - Concerns about a near-term economic downturn have moderated, with hiring plans holding steady among small businesses [19] - The company expects to return to positive year-over-year growth by Q3 2026, driven by improved client engagement and decision timelines [31] Other Important Information - The company distributed a cash dividend of $0.59 per share, totaling $59 million [6] - The tax rate for Q4 was 32%, up from 28% the previous year, due to non-deductible expenses [11] Q&A Session Summary Question: Insights on the top line and margin improvement - Management indicated that if current trends continue, positive year-over-year growth could be expected by Q3 2026 [31] - Steps for efficiency include retaining top producers and leveraging AI for better matching and prospect ranking [32] Question: Comments on the permanent placement market - Management believes the permanent placement market is stronger than it appears, with SMB clients facing challenges in hiring due to a lean workforce [33] Question: Labor uncertainty due to AI - Management acknowledged that uncertainty around AI may lead clients to prefer flexible workers, but current demand for full-time hires remains stable [37] Question: Protiviti's headcount and revenue growth - Management noted that Protiviti has hidden capacity due to underutilized full-time staff and contractors, allowing for potential revenue growth without significant headcount increases [42] Question: Pricing environment for Protiviti - The pricing environment remains competitive, with no significant changes expected, but there is potential for cost-of-living increases to be passed on to clients [91]

Financial Data and Key Metrics Changes - Global enterprise revenues for Q4 2025 were $1.302 billion, down 6% year-over-year on a reported basis and down 7% on an adjusted basis [3][4] - Net income per share for the quarter was $0.32, compared to $0.53 in Q4 2024 [4] - Cash flow from operations was $183 million, an 18% increase over Q4 2024 [4] - Return on invested capital was 10% in Q4 [5] Business Line Data and Key Metrics Changes - Talent Solutions revenues were down 9% year-over-year on an adjusted basis, with U.S. revenues at $623 million and non-U.S. revenues at $200 million [6][8] - Protiviti's global revenues in Q4 were $479 million, with U.S. revenues down 6% and non-U.S. revenues up 9% year-over-year [8][10] - Gross margin for Talent Solutions was 46.7%, up from 46.4% in Q4 2024, while Protiviti's gross margin was 21.9%, down from 24.9% [9][10] Market Data and Key Metrics Changes - Currency exchange rate movements increased reported total revenues by $15 million, with $10 million attributed to Talent Solutions and $5 million to Protiviti [7] - Contract Talent Solutions bill rates increased by 3.2% compared to the previous year [8] Company Strategy and Development Direction - The company aims to capitalize on emerging opportunities and support clients' talent and consulting needs through its industry-leading brand and unique business model [4][23] - The strategic engagement of contract professionals is essential for Protiviti's success and enhances the company's competitive advantage [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted a return to sequential growth for the first time since early 2022, with a more conducive macro environment and improved client engagement [17][18] - Concerns about a near-term economic downturn have moderated, with significant pent-up demand for skilled professionals [18][19] - The company expects to see positive year-over-year growth in the third quarter of 2026 based on current trends [26][35] Other Important Information - The company distributed a cash dividend of $0.59 per share, totaling $59 million [5] - The tax rate for Q4 was 32%, up from 28% in the previous year, due to increased non-deductible expenses [11][12] Q&A Session Summary Question: Insights on the top line and efficiency improvements - Management expects to return to positive year-over-year growth in the third quarter, with efficiency improvements from retaining top producers during the downturn [26][27] Question: Labor uncertainty due to AI - Management noted that while AI may drive interest in flexible workers, current demand for full-time hires remains stable, particularly among small and medium-sized businesses [29] Question: Protiviti's headcount growth plans - Management indicated that Protiviti has hidden capacity due to underutilized full-time staff and contractors, allowing for growth without significant headcount increases [30][31] Question: Pricing environment and AI impact - The pricing environment remains competitive, with ongoing discussions about transitioning to more outcome-based pricing models [39][47] Question: Confidence in the ACS business line - Management expressed confidence in the ACS segment, noting that customer service areas performed better than expected despite overall weakness [40] Question: Seasonal trends for Q2 - Management indicated that Q2 typically sees modest revenue declines on the contract side but expects better margins as Protiviti recovers from seasonal lows [32][44]

Core Insights - ManpowerGroup reported a net earnings increase to $0.64 per diluted share for Q4 2025, up from $0.47 in the same period last year, with total net earnings of $30.2 million compared to $22.5 million a year earlier [1] - The company's revenues for Q4 reached $4.7 billion, reflecting a 7% increase year-over-year [1] - Excluding restructuring costs and other charges, adjusted earnings per share was $0.92, representing a 17% decrease in constant currency [2] Financial Performance - The financial results were affected by the U.S. dollar's performance against foreign currencies, with a 1% revenue increase on a constant currency basis and a 2% increase on an organic constant currency basis [3] - For the full year 2025, revenues totaled $18.0 billion, a 1% increase compared to the previous year, but a 2% decrease in constant currency [4] - The company experienced net losses of $13.3 million for the year, translating to a loss of $0.29 per basic share, compared to net earnings of $145.1 million or $3.01 per diluted share in the prior year [4] Market Trends and Outlook - CEO Jonas Prising expressed optimism about the fourth quarter results, indicating stabilization in market trends and successful execution of cost optimization strategies [4] - The company anticipates diluted earnings per share for Q1 2026 to be between $0.45 and $0.55, factoring in a favorable currency impact of 6 cents [4] - ManpowerGroup noted ongoing stabilization across North America and Europe, with improvements in France and strong performance in Italy, while facing challenges in RPO and permanent recruitment [6] Operational Highlights - The gross profit margin for the quarter was 16.3%, impacted by lower-than-expected permanent recruitment activity in Europe [6] - The company reported strong cash flow from operating activities of $179 million, with free cash flow of $168 million for the quarter [9] - ManpowerGroup refinanced a €500 million Euro Note and reset its revolving credit facility for a new five-year period [6]

Core Insights - ManpowerGroup has declared a semi-annual dividend of $0.72 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025 [1] - The company is recognized as a leading global workforce solutions provider, operating for over 75 years and serving hundreds of thousands of organizations across more than 70 countries [2] - ManpowerGroup has been consistently acknowledged for its workplace culture, being named one of the World's Most Ethical Companies for the 16th time in 2025 [2] Financial Information - The declared dividend reflects the company's ongoing commitment to returning value to shareholders [1] - Additional financial details, including stock history and annual reports, are available on the company's investor relations website [1] Industry Context - The workforce solutions industry is facing challenges with 40% of today's skills expected to become obsolete within five years, emphasizing the critical need for career development [3] - The rise of AI and workforce transformation is reshaping the business landscape, making employee growth essential for business resilience [3]

Core Insights - Robert Half International Inc. (RHI) reported third-quarter fiscal 2026 results, with earnings and revenues meeting the Zacks Consensus Estimate, but the stock has not shown significant movement since the earnings release on October 22 [1] Financial Performance - Quarterly earnings were 43 cents per share, matching the consensus but declining 32.8% year over year [1][10] - Revenues totaled $1.35 billion, in line with the consensus but down 7.5% year over year [1][10] Segment Performance - Talent Solutions revenues were $856.35 million, a decrease of 11% year over year, falling short of the estimate of $914.2 million [3] - U.S. Talent Solutions revenues were $649 million, down 11% year over year, while non-U.S. revenues declined 12% to $207 million [3] - Protiviti revenues were $498 million, down 3% year over year and below the expectation of $503.1 million [4] - U.S. Protiviti revenues decreased 6% to $398 million, while non-U.S. revenues increased 8% to $100 million [4] Currency Impact - Currency exchange rate movements contributed an increase of $9 million to total revenues year over year, with $6 million attributed to both Talent Solutions and Protiviti [5] Profitability Metrics - Adjusted gross profit was $514.65 million, down 10.9% year over year, with a gross profit margin of 38.9%, remaining flat year over year [6] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $365.3 million, down from $570.47 million in the third quarter of 2024 [7] - Cash flow from operations was $77 million, with capital expenditures of $41.4 million and $59 million paid out in dividends [7] Future Guidance - For Q4 2025, RHI expects revenues between $1.245 billion and $1.345 billion, with an EPS forecast of 25 to 35 cents [8] - The midpoint of the revenue guidance is slightly above the current Zacks Consensus Estimate of $1.29 billion [8] - Capital expenditures for Q4 are projected to be between $15 million and $25 million [9] - For 2025, total capital expenditures are expected to range from $75 million to $90 million [11]

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]