Robert Half : Earnings Report as 03/31/2025 PDF

Published: 2025-04-23 16:21:37 ET RHI

FOR IMMEDIATE RELEASE

Contact: M. Keith Waddell President and

Chief Executive Officer (650) 234-6000

ROBERT HALF REPORTS FIRST-QUARTER FINANCIAL RESULTS

MENLO PARK, Calif., April 23, 2025 - Robert Half Inc. (NYSE symbol: RHI) today reported revenues and earnings for the first quarter ended March 31, 2025.

For the three months ended March 31, 2025, net income was $17 million, or $0.17 per share, on revenues of $1.352 billion. For the three months ended March 31, 2024, net income was $64 million, or $0.61 per share, on revenues of $1.476 billion.

"For the first quarter of 2025, global enterprise revenues were $1.352 billion, down 8 percent from last year's first quarter on a reported basis, and down 6 percent on an adjusted basis. Business confidence levels moderated during the quarter in response to heightened economic uncertainty over U.S. trade and other policy developments. Client and job seeker caution continues to elongate decision cycles and subdue hiring activity and new project starts," said M. Keith Waddell, president and chief executive officer at Robert Half. "Despite the uncertain outlook, we are very well-positioned to capitalize on emerging opportunities and support our clients' talent and consulting needs through the strength of our industry-leading brand, our people, our technology and our unique business model that includes both professional staffing and business consulting services.

"We'd like to thank our employees across the globe for their resilience and unwavering commitment to success. Their efforts have earned us significant recognition already in 2025, including being honored as one of America's Most Innovative Companies by Fortune and one of America's Best Large Employers by Forbes. We are particularly proud that high levels of employee engagement again earned both Robert Half and Protiviti recognition as two of Fortune's 100 Best Companies to Work For," Waddell concluded.

Robert Half management will conduct a conference call today at 5 p.m. EDT. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number is 888-394-8218 (+1-323-994-2093 outside the United States and Canada). The confirmation code to access the call is 5634922.

A recording of this call will be available for audio replay beginning at approximately 8 p.m. EDT on April 23 and ending after 12 months. To access the replay, visit https://webcasts.com/RobertHalfQ12025. The conference call also will be archived in audio format on the Company's website at roberthalf.com.

Robert Half is the world's first and largest specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. We offer contract talent and permanent placement solutions in the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and we also provide executive search services. Robert Half is the parent company of Protiviti®, a global consulting firm that delivers internal audit, risk, business and technology consulting solutions. In the past 12 months, Robert Half, including Protiviti, has been named one of the Fortune® World's Most Admired Companies™ and 100 Best Companies to Work For.

Certain information contained in this press release and its attachments may be deemed forward-looking statements regarding events and financial trends that may affect the future operating results or financial positions of Robert Half Inc. (the "Company"). Forward-looking statements are not guarantees or promises that goals or targets will be met. These statements may be identified by words such as "anticipate," "potential," "estimate," "forecast," "target," "project," "plan," "intend," "believe," "expect," "should," "could," "would," "may," "might," "will," or variations or negatives thereof or by similar or comparable words or phrases. In addition, historical, current and forward-looking information about the Company's corporate responsibility and compliance programs, including targets or goals, may not be considered material for the Securities and Exchange Commission ("SEC") or other mandatory reporting purposes and may be based on standards for measuring progress that are still developing, on internal controls, diligence or processes that are evolving, on representations reviewed or provided by third parties, and on assumptions that are subject to change in the future. Forward-looking statements are estimates only and are based on management's current expectations, currently available information and current strategy, plans or forecasts, and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict, often beyond our control

and are inherently uncertain. Forward-looking statements are subject to risks and uncertainties that could cause actual results and outcomes, or the timing of these results or outcomes, to differ materially from those expressed or implied in the statements.

These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of United States of America ("U.S.") or international tax regulations; the global financial and economic situation; changes in levels of unemployment and other economic conditions in the U.S. or foreign countries where the Company does business, or in particular regions or industries; reduction in the supply of candidates for contract employment or the Company's ability to attract candidates; the development, proliferation and adoption of artificial intelligence ("AI") by the Company and the third parties it serves; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the Company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the Company's services, or the Company's ability to maintain its margins; the possibility of the Company incurring liability for its activities, including the activities of its engagement professionals, or for events impacting its engagement professionals on clients' premises; the possibility that adverse publicity could impact the Company's ability to attract and retain clients and candidates; the success of the Company in attracting, training and retaining qualified management personnel and other staff employees; the Company's ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the Company's reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the Company's SEC filings; the impact of extreme weather conditions on the Company and its candidates and clients; the ability of the Company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the Company will incur as a result of health care or other reform legislation may adversely affect the Company's profit margins or the demand for the Company's services; the possibility that the Company's computer and communications hardware and software systems could be damaged or their service interrupted or that the Company could experience a cybersecurity breach; and the possibility that the Company may fail to maintain adequate financial and management controls, and as a result suffer errors in its financial reporting.

Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for broad-based consulting, regulatory compliance, technology services, public sector or other high-demand advisory services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.

A summary of additional risks and uncertainties can be found in the Annual Report on Form 10-K for the year ended December 31, 2024, and in the Company's other filings with the U.S. Securities and Exchange Commission.

Because long-term contracts are not a significant part of the Company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results. Except as required by law, the Company undertakes no obligation to update information in this report, whether as a result of new information, future events, or otherwise, and notwithstanding any historical practice of doing so.

A copy of this release is available at www.roberthalf.com/investor-center.

ATTACHED: Summary of Operations

Supplemental Financial Information

Non-GAAP Financial Measures

- 2 -

ROBERT HALF INC.

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended

March 31,

2025

2024

(Unaudited)

Service revenues

1,351,907

1,475,937

Costs of services

852,862

913,140

Gross margin

499,045

562,797

Selling, general and administrative expenses

460,163

521,899

Operating income

38,882

40,898

(Income) loss from investments held in employee deferred compensation trusts (which is

completely offset by related costs and expenses)

20,171

(43,376)

Interest income, net

(3,572)

(6,413)

Income before income taxes

22,283

90,687

Provision for income taxes

4,933

26,986

Net income

17,350

63,701

Diluted net income per share

0.17

0.61

Weighted average shares:

Basic

100,666

103,787

Diluted

101,015

104,399

- 3 -

ROBERT HALF INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

Three Months Ended

March 31,

2025

2024

(Unaudited)

SERVICE REVENUES INFORMATION

Contract talent solutions

Finance and accounting

562,933

641,970

Administrative and customer support

165,627

199,932

Technology

152,542

157,970

Elimination of intersegment revenues (1)

(117,897)

(112,814)

Total contract talent solutions

763,205

887,058

Permanent placement talent solutions

112,091

124,767

Protiviti

476,611

464,112

Total service revenues

1,351,907

1,475,937

March 31,

2025

2024

(Unaudited)

SELECTED BALANCE SHEET INFORMATION:

Cash and cash equivalents

342,473

540,939

Accounts receivable, net

786,560

861,450

Total assets

2,696,953

2,889,702

Total current liabilities

1,190,356

1,179,540

Total stockholders' equity

1,313,222

1,519,245

Three Months Ended March 31,

2025

2024

(Unaudited)

SELECTED CASH FLOW INFORMATION:

Depreciation

13,006

13,004

Capitalized cloud computing implementation costs

6,160

8,391

Capital expenditures

12,394

11,780

Open market repurchases of common stock (shares)

668

761

- 4 -

ROBERT HALF INC.

NON-GAAP FINANCIAL MEASURES

The financial results of Robert Half Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expenses; adjusted operating income; and adjusted revenue growth rates.

The following measures: adjusted gross margin, adjusted selling, general and administrative expenses and adjusted operating income, include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results.

Adjusted revenue growth rates represent year-over-year revenue growth rates after removing the impacts on reported revenues from the changes in the number of billing days and foreign currency exchange rates. The Company provides this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The impacts from the changes in billing days and foreign currency exchange rates are calculated as follows:

The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.

- 5 -

ROBERT HALF INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED GROSS MARGIN (UNAUDITED):

(in thousands)

Three Months Ended March 31,

Relationships

As Reported

As Adjusted

As Reported

As Adjusted

2025

2024

2025

2024

2025

2024

2025

2024

Gross Margin

Contract talent solutions

296,933

350,570

296,933

350,570

38.9%

39.5%

38.9%

39.5%

Permanent placement talent solutions

111,861

124,548

111,861

124,548

99.8%

Total talent solutions

408,794

475,118

408,794

475,118

46.7%

47.0%

46.7%

47.0%

Protiviti

90,251

87,679

86,212

96,036

18.9%

18.1%

20.7%

Total

499,045

562,797

495,006

571,154

36.9%

38.1%

36.6%

38.7%

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

Contract talent

Permanent

Total talent

Contract talent

Permanent

Total talent

placement talent

Protiviti

Total

placement talent

Protiviti

Total

solutions

% of

Revenue

Gross Margin

As Reported

$ 296,933

38.9%

$ 111,861

99.8%

$ 408,794

46.7%

90,251

18.9%

499,045

36.9%

$ 350,570

39.5%

$ 124,548

99.8%

$ 475,118

47.0%

87,679

18.9%

562,797

38.1%

Adjustments (1) ....

(4,039)

(0.8%)

(4,039)

(0.3%)

8,357

1.8%

8,357

0.6%

As Adjusted

$ 296,933

38.9%

$ 111,861

99.8%

$ 408,794

46.7%

86,212

18.1%

495,006

36.6%

$ 350,570

39.5%

$ 124,548

99.8%

$ 475,118

47.0%

96,036

20.7%

571,154

38.7%

- 6 -

ROBERT HALF INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED):

(in thousands)

Three Months Ended March 31,

Relationships

As Reported

As Adjusted

As Reported

As Adjusted

2025

2024

2025

2024

2025

2024

2025

2024

Selling, General and

Administrative Expenses

Contract talent solutions

276,212

331,588

290,242

300,452

36.2%

37.4%

38.0%

33.9%

Permanent placement talent solutions

106,135

116,576

108,237

112,693

94.7%

93.4%

96.6%

90.3%

Total talent solutions

382,347

448,164

398,479

413,145

43.7%

44.3%

45.5%

40.8%

Protiviti

77,816

73,735

77,816

73,735

16.3%

15.9%

16.3%

15.9%

Total

460,163

521,899

476,295

486,880

34.0%

35.4%

35.2%

33.0%

The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

Contract talent

Permanent

Total talent

Protiviti

Total

Contract talent

Permanent

Total talent

Protiviti

Total

placement talent

solutions

% of

Revenue

Selling, General and

Administrative Expenses

As Reported

$ 276,212

36.2%

$ 106,135

94.7%

$ 382,347

43.7%

77,816

16.3%

460,163

34.0%

$ 331,588

37.4%

$ 116,576

93.4%

$ 448,164

44.3%

73,735

15.9%

521,899

35.4%

Adjustments (1)

14,030

1.8%

2,102

1.9%

16,132

1.8%

16,132

1.2%

(31,136)

(3.5%)

(3,883)

(3.1%)

(35,019)

(3.5%)

(35,019)

(2.4%)

As Adjusted

$ 290,242

38.0%

$ 108,237

96.6%

$ 398,479

45.5%

77,816

16.3%

476,295

35.2%

$ 300,452

33.9%

$ 112,693

90.3%

$ 413,145

40.8%

73,735

15.9%

486,880

33.0%

- 7 -

ROBERT HALF INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED OPERATING INCOME (UNAUDITED):

(in thousands)

Three Months Ended March 31,

Relationships

As Reported

As Adjusted

As Reported

As Adjusted

2025

2024

2025

2024

2025

2024

2025

2024

Operating income

Contract talent solutions

20,721

18,982

6,691

50,118

2.7%

2.1%

0.9%

5.6%

Permanent placement talent solutions

5,726

7,972

3,624

11,855

5.1%

6.4%

3.2%

9.5%

Total talent solutions

26,447

26,954

10,315

61,973

3.0%

2.7%

1.2%

6.1%

Protiviti

12,435

13,944

8,396

22,301

2.6%

3.0%

1.8%

4.8%

Total

38,882

40,898

18,711

84,274

2.9%

2.8%

1.4%

5.7%

The following tables provide reconciliations of the non-GAAP adjusted operating income to reported operating income for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

Contract talent

Permanent

Total talent

Protiviti

Total

Contract talent

Permanent

Total talent

Protiviti

Total

placement talent

solutions

% of

Revenue

Operating income

As Reported

$ 20,721

2.7%

5,726

5.1%

26,447

3.0%

12,435

2.6%

38,882

2.9%

18,982

2.1%

7,972

6.4%

26,954

2.7%

13,944

3.0%

40,898

2.8%

Adjustments (1)

(14,030)

(1.8%)

(2,102)

(1.9%)

(16,132)

(1.8%)

(4,039)

(0.8%)

(20,171)

(1.5%)

31,136

3.5%

3,883

3.1%

35,019

3.4%

8,357

1.8%

43,376

2.9%

As Adjusted

$ 6,691

0.9%

3,624

3.2%

10,315

1.2%

8,396

1.8%

18,711

1.4%

50,118

5.6%

11,855

9.5%

61,973

6.1%

22,301

4.8%

84,274

5.7%

- 8 -

ROBERT HALF INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATES (%) (UNAUDITED):

Year-Over-Year Growth Rates

Non-GAAP Year-Over-Year Growth Rates

(As Reported)

(As Adjusted)

2023

2024

2025

2023

2024

2025

Global

Finance and accounting

-17.2

-17.5

-13.6

-9.2

-9.5

-12.3

-17.8

-17.0

-13.5

-10.5

-9.8

-10.0

Administrative and customer

-18.7

-8.9

-9.8

-9.2

-8.8

-17.2

-19.4

-8.3

-9.8

-10.8

-9.4

-15.2

support

Technology

-21.7

-18.6

-13.1

-6.1

-3.5

-3.4

-21.8

-17.8

-13.1

-7.6

-4.1

-1.3

Elimination of intersegment

-26.6

-10.3

1.4

21.6

18.9

4.5

-27.2

-9.9

1.3

19.4

17.8

6.8

revenues (1)

. . . .Total contract talent solutions

-17.2

-16.7

-14.5

-11.9

-11.5

-14.0

-17.7

-16.2

-14.4

-13.2

-11.8

Permanent placement talent

-22.0

-20.4

-12.2

-11.9

-11.1

-10.2

-22.6

-19.8

-12.0

-13.2

-11.4

-7.8

solutions

. . . . . . . .Total talent solutions

-17.8

-17.2

-14.2

-11.9

-11.4

-13.5

-18.3

-16.7

-14.0

-13.2

-11.7

-11.3

Protiviti

-7.1

-6.1

-0.9

6.4

5.3

2.7

-7.5

-5.4

-0.9

4.5

4.7

. . . . . . . . . . . . . . . . . . . . . . . .Total

-14.7

-14.0

-10.2

-6.3

-6.1

-8.4

-15.2

-13.4

-10.1

-7.7

-6.6

-6.2

United States

Contract talent solutions

-20.5

-19.1

-15.7

-12.4

-10.3

-11.8

-20.3

-18.6

-15.8

-13.7

-11.2

-10.7

Permanent placement talent

-22.6

-19.3

-11.5

-9.0

-9.6

-8.5

-22.5

-18.7

-11.7

-10.4

-7.3

solutions

. . . . . . . .Total talent solutions

-20.7

-19.1

-15.2

-12.0

-10.2

-11.4

-20.6

-18.6

-15.3

-13.3

-11.1

-10.3

Protiviti

-7.3

-4.8

3.3

9.3

6.6

2.3

-7.2

-4.2

3.1

7.6

5.6

3.6

. . . . . . . . . . . . . . . . . . . . . . . .Total

-16.8

-14.9

-9.6

-5.2

-4.7

-6.9

-16.7

-14.3

-9.7

-6.7

-5.7

International

Contract talent solutions

-4.4

-8.4

-10.0

-10.6

-15.2

-20.7

-7.5

-9.4

-11.7

-13.9

-16.2

Permanent placement talent

-20.6

-23.2

-13.8

-18.6

-14.7

-14.5

-22.8

-22.1

-13.0

-19.8

-13.7

-10.1

solutions

. . . . . . . .Total talent solutions

-7.2

-10.8

-10.7

-11.9

-15.1

-19.8

-10.1

-9.9

-10.0

-13.0

-13.9

-15.3

Protiviti

-6.1

-11.3

-16.2

-5.6

0.2

4.4

-8.9

-10.1

-15.9

-8.1

-0.4

7.9

. . . . . . . . . . . . . . . . . . . . . . . .Total

-6.9

-10.9

-12.2

-10.2

-10.9

-13.6

-9.8

-10.0

-11.6

-11.7

-10.2

-9.4

The non-GAAP financial measures included in the table above adjust for the following items:

Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates the billing day impact by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all functional specializations and segments.

Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. The foreign currency impact is calculated by retranslating current period international revenues, using foreign currency exchange rates from the prior year's comparable period.

The term "As Adjusted" means that the impact of different billing days and constant currency fluctuations are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein, on Pages 10-12.

- 9 -

ROBERT HALF INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):

Year-Over-Year Revenue Growth - GLOBAL

Finance and accounting