Robert Half's Third-Quarter Profit Rises To $50 Million On Flat Revenue As Overhead Falls

Robert Half, the staffing and consulting firm, earned $50 million, or $0.49 per share, in the third quarter, up from $43 million, or $0.43 per share, a year earlier, the company said Thursday in an 8-K filing. Revenue was nearly unchanged at $1.359 billion against $1.354 billion.

Lower overhead drives the profit

Operating income jumped to $74.8 million from $13.6 million. The bigger lever was selling, general and administrative costs, which fell to $457.2 million from $490.6 million, while gross margin rose to $532.1 million from $504.2 million.

The company's reported results also swing with gains and losses on investments held for employee deferred compensation, which are offset by related costs. On an adjusted basis that strips out the swing, operating income was $72.6 million against $61.2 million.

For the first nine months, net income was $90 million, or $0.90 per share, against $101 million, or $1.01 per share. Revenue for the period was $3.996 billion versus $4.076 billion.

Talent business turns up, Protiviti slips

Robert Half places contract and permanent professionals in finance and accounting, technology, marketing and creative, legal, and administrative roles. It also owns Protiviti, a consulting firm focused on areas such as compliance, risk and internal audit.

Total talent solutions revenue rose 2.3% as reported and 1.6% on an adjusted basis, which strips out billing-day and currency effects. CEO M. Keith Waddell said talent solutions "returned to adjusted year-over-year revenue growth for the first time since 2022, with revenues increasing 2 percent." Permanent placement revenue rose to $116.9 million from $110.1 million, and contract talent to $758.8 million from $746.2 million.

Protiviti revenue fell to $483.5 million from $498.1 million, down 2.9% as reported. Waddell said demand for risk and compliance consulting "showed encouraging signs of improvement during the quarter."

Dividends dwarf buybacks

Dividends paid totaled $179.8 million in the first nine months, about level with $179.5 million a year earlier. Share repurchases shrank to $6.8 million from $92.1 million. Cash stood at $321.3 million on September 30, against $365.3 million a year before.

Robert Half shares closed at $37.68 on Thursday, up about 9% from the prior session. Management scheduled a 5 p.m. ET conference call Thursday, with prepared remarks already posted.

Waddell said earnings exceeded the midpoint of the company's third-quarter guidance.

Sources

• 8-K Filing — ROBERT HALF INC. (RHI) — SEC EDGAR
• Exhibit rhiq32026ex991.htm — ROBERT HALF INC. 8-K exhibit — SEC EDGAR
• ROBERT HALF REPORTS THIRD-QUARTER FINANCIAL RESULTS — prnewswire.com