Robert Half : Quarter Ended 03/31/2026

Published: 2026-04-23 17:29:23 ET RHI

Published on 04/23/2026 at 05:29 pm EDT

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:

Billing days impact is calculated 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 inputs from all countries and all functional specializations and segments.

Foreign currency impact is calculated by retranslating current-period international revenues, using foreign currency exchange rates from the prior year's comparable period.

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.

- 1 -

ADJUSTED GROSS MARGIN (UNAUDITED):

(in thousands)

2026

2025

2026

2025

2026

2025

2026

2025

Gross Margin

Contract talent solutions . . . . . . . . . . . . .

$ 281,753

$ 296,933

$ 281,753

$ 296,933

38.9%

Permanent placement talent solutions . .

108,726

111,861

108,726

111,861

99.7%

99.8%

99.7%

99.8%

Total talent solutions . . . . . . . . . . . . . .

390,479

408,794

390,479

408,794

46.8%

46.7%

46.8%

46.7%

Protiviti . . . . . . . . . . . . . . . . . . . . . . . . . .

89,430

90,251

87,426

86,212

19.2%

18.9%

18.8%

18.1%

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

$ 479,909

$ 499,045

$ 477,905

$ 495,006

36.9%

36.8%

36.6%

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended March 31, 2026 and 2025:

Total talent Protiviti Total

% of Revenue

% of

$ Revenue

% of

$ Revenue

% of Revenue

% of

$ Revenue

% of

$ Revenue

Gross Margin

As Reported.............

$ 281,753

38.9%

$ 108,726

99.7%

$ 390,479

46.8%

$ 89,430

19.2%

$ 479,909

36.9%

$ 296,933

38.9%

$ 111,861

99.8%

$ 408,794

46.7%

$ 90,251

18.9%

$ 499,045

36.9%

Adjustments (1)....

(2,004)

(0.4%)

(2,004)

(0.1%)

(4,039)

(0.8%)

(4,039)

(0.3%)

As Adjusted.............

$ 281,753

38.9%

$ 108,726

99.7%

$ 390,479

46.8%

$ 87,426

18.8%

$ 477,905

36.8%

$ 296,933

38.9%

$ 111,861

99.8%

$ 408,794

46.7%

$ 86,212

18.1%

$ 495,006

36.6%

(1) Changes in the Company's employee deferred compensation plan obligations related to Protiviti operations are included in costs of services, while the related investment losses are presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment losses from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED):

(in thousands)

Selling, General and Administrative Expenses

Contract talent solutions . . . . . . . . . . . . .

$ 267,081

$ 276,212

$ 272,440

$ 290,242

36.8%

36.2%

37.6%

38.0%

Permanent placement talent solutions . .

101,806

106,135

102,670

108,237

93.4%

94.7%

94.2%

96.6%

Total talent solutions . . . . . . . . . . . . . .

368,887

382,347

375,110

398,479

44.2%

43.7%

45.0%

45.5%

Protiviti . . . . . . . . . . . . . . . . . . . . . . . . . .

74,111

77,816

74,111

77,816

15.9%

16.3%

15.9%

16.3%

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

$ 442,998

$ 460,163

$ 449,221

$ 476,295

34.1%

34.0%

34.6%

35.2%

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, 2026 and 2025:

Protiviti Total Contract talent

solutions solutions

% of Revenue

Selling, General and Administrative Expens

As Reported ................

$ 267,081

36.8%

$ 101,806

93.4%

$ 368,887

44.2%

$ 74,111

15.9%

$ 442,998

34.1%

$ 276,212

36.2%

$ 106,135

94.7%

$ 382,347

43.7%

$ 77,816

16.3%

$ 460,163

34.0%

Adjustments (1) .......

5,359

0.8%

864

0.8%

6,223

0.8%

6,223

0.5%

14,030

1.8%

2,102

1.9%

16,132

1.8%

16,132

1.2%

As Adjusted ................

$ 272,440

37.6%

$ 102,670

94.2%

$ 375,110

45.0%

$ 74,111

15.9%

$ 449,221

34.6%

$ 290,242

38.0%

$ 108,237

96.6%

$ 398,479

45.5%

$ 77,816

16.3%

$ 476,295

35.2%

(1) Changes in the Company's employee deferred compensation plan obligations related to talent solutions operations are included in selling, general and administrative expenses, while the related investment losses are presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment losses from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

ADJUSTED OPERATING INCOME (UNAUDITED):

(in thousands)

2026

2025

2026

2025

2026

2025

2026

2025

Operating Income

Contract talent solutions . . . . . . . . . . . . .

$ 14,672

$ 20,721

$ 9,313

$ 6,691

2.0%

2.7%

1.3%

0.9%

Permanent placement talent solutions . .

6,920

5,726

6,056

3,624

6.3%

5.1%

5.6%

3.2%

Total talent solutions . . . . . . . . . . . . . .

21,592

26,447

15,369

10,315

2.6%

3.0%

1.8%

1.2%

Protiviti . . . . . . . . . . . . . . . . . . . . . . . . . .

15,319

12,435

13,315

8,396

3.3%

2.6%

2.9%

1.8%

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

$ 36,911

$ 38,882

$ 28,684

$ 18,711

2.8%

2.9%

2.2%

1.4%

The following tables provide reconciliations of the non-GAAP adjusted operating income to reported operating income for the three months ended March 31, 2026 and 2025:

Protiviti Total Contract talent

solutions solutions

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

% of

$ Revenue

Operating Income

As Reported.....................

$ 14,672

2.0% $

6,920

6.3%

$ 21,592

2.6%

$ 15,319

3.3%

$ 36,911

2.8%

$ 20,721

2.7%

$ 5,726

5.1%

$ 26,447

3.0%

$ 12,435

2.6%

$ 38,882

2.9%

Adjustments (1) ............

(5,359)

(0.7%)

(864)

(0.7%)

(6,223)

(0.8%)

(2,004)

(0.4%)

(8,227)

(0.6%)

(14,030)

(1.8%)

(2,102)

(1.9%)

(16,132)

(1.8%)

(4,039)

(0.8%)

(20,171)

(1.5%)

As Adjusted .....................

$ 9,313

1.3% $

6,056

5.6%

$ 15,369

1.8%

$ 13,315

2.9%

$ 28,684

2.2%

$ 6,691

0.9%

$ 3,624

3.2%

$ 10,315

1.2%

$ 8,396

1.8%

$ 18,711

1.4%

(1) Changes in the Company's employee deferred compensation plan obligations are included in operating income. The non-GAAP financial adjustments shown in the table above are to reclassify investment losses from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes.

NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATES (%) (UNAUDITED):

2024

2025

2026

2024

2025

2026

Global

Finance and accounting . . . . . . . . .

-9.5

-12.3

-10.8

-9.9

-6.9

-4.3

-9.8

-10.0

-10.8

-10.7

-7.8

-6.3

Administrative and customer support . . . . . . . . . . . . . . . . . . . .

-8.8

-17.2

-13.0

-11.1

-11.4

-9.8

-9.4

-15.2

-13.3

-12.1

-12.5

-11.8

Technology . . . . . . . . . . . . . . . . . .

-3.5

-3.4

0.3

-1.5

-1.0

0.8

-4.1

-1.3

0.4

-1.9

-1.2

-0.3

Elimination of intersegment revenues (1) . . . . . . . . . . . . . . . .

18.9

4.5

2.9

1.1

3.0

-0.9

17.8

6.8

2.5

0.2

2.2

-2.8

Total contract talent solutions . . . .

-11.5

-14.0

-11.1

-10.1

-8.2

-5.0

-11.8

-11.1

-10.9

-9.0

-6.8

Permanent placement talent solutions . . . . . . . . . . . . . . . . . . .

-11.1

-10.2

-12.5

-10.7

-5.1

-2.8

-11.4

-7.8

-12.6

-11.4

-5.9

-4.7

Total talent solutions . . . . . . . .

-11.4

-13.5

-11.3

-10.2

-7.9

-4.7

-11.7

-11.3

-11.0

-8.6

-6.6

Protiviti . . . . . . . . . . . . . . . . . . . . .

5.3

2.7

1.8

-2.6

-2.0

-2.2

4.5

4.7

1.5

-3.4

-2.8

-3.8

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

-6.1

-8.4

-7.0

-7.5 -5.8 -3.8

-6.6

-6.2

-7.1

-8.3

-6.6

-5.6

United States

Contract talent solutions . . . . . . . .

-10.3

-11.8

-10.7

-10.3

-9.5

-7.6

-11.2

-10.7

-10.4

-9.2

-7.5

Permanent placement talent solutions . . . . . . . . . . . . . . . . . . .

-9.6

-8.5

-13.2

-11.3

-5.8

-5.9

-10.4

-7.3

-13.2

-11.4

-5.5

-5.7

Total talent solutions . . . . . . . .

-10.2

-11.4

-11.0

-10.4

-9.0

-7.4

-11.1

-10.3

-11.0

-10.5

-8.8

-7.3

Protiviti . . . . . . . . . . . . . . . . . . . . .

6.6

2.3

-0.7

-5.5

-5.9

-6.4

5.6

3.6

-0.7

-5.6

-6.3

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

-4.7

-6.9

-7.4

-8.6 -7.9 -7.1

-5.7

-7.4

-8.7

-7.6

-6.9

International

Contract talent solutions . . . . . . . .

-15.2

-20.7

-12.5

-9.7

-4.0

4.3

-13.9

-16.2

-12.9

-12.4

-8.7

-3.4

Permanent placement talent solutions . . . . . . . . . . . . . . . . . . .

-14.7

-14.5

-10.6

-9.0

-3.5

5.7

-13.7

-10.1

-11.2

-7.0

-0.9

Total talent solutions . . . . . . . .

-15.1

-19.8

-12.2

-9.6

-3.9

4.5

-13.9

-15.3

-12.6

-12.2

-8.4

-3.0

Protiviti . . . . . . . . . . . . . . . . . . . . .

0.2

4.4

13.1

11.1

14.7

16.0

-0.4

7.9

10.7

7.5

9.1

8.1

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

-10.9

-13.6

-5.3

-3.8 1.8 8.1

-10.2

-9.4

-6.3

-6.7

-3.0

0.4

(1) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line item.

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 6-8.

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Disclaimer

Robert Half Inc. published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 21:21 UTC.