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1. Company Snapshot

1.a. Company Description

Robert Half International Inc.provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia.The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services.


It places temporary services for accounting, finance, and bookkeeping; temporary and full-time office and administrative personnel consisting of executive and administrative assistants, receptionists, and customer service representatives; full-time accounting, financial, tax, and accounting operations personnel; and information technology contract professionals and full-time employees in the areas of platform systems integration to end-user technical and desktop support, including specialists in application development, networking and cloud, systems integration and deployment, database design and administration, and security and business continuity.The company also offers temporary and full-time employees in attorney, paralegal, legal administrative, and legal secretarial positions; and senior-level project professionals in the accounting and finance fields for financial systems conversions, expansion into new markets, business process re-engineering, business systems performance improvement, and post-merger financial consolidation.It is involved in serving professionals in the areas of creative, design, marketing, advertising, and public relations; and placing various positions, such as creative directors, graphics designers, web designers, media buyers, front end developers, copywriters, digital marketing managers, marketing analytics specialists, brand managers, and public relations specialists.


The company provides internal audit, technology consulting, risk and compliance consulting, and business performance services.It serves clients and employment candidates.Robert Half International Inc.


was founded in 1948 and is headquartered in Menlo Park, California.

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1.b. Last Insights on RHI

Robert Half International Inc.'s recent performance was negatively impacted by macroeconomic pressures, competitive threats, and declining earnings. The company's Q3 earnings met estimates but showed a year-over-year decline, signaling continued growth pressure. Weak labor market and slow cost reductions led to a 60% share drop. A "Reduce" consensus recommendation from analysts and a Zacks Rank #5 (Strong Sell) rating further emphasize concerns. Additionally, Envestnet Asset Management Inc. decreased its position in RHI by 26.9%, while AXQ Capital LP initiated a new position.

1.c. Company Highlights

2. Robert Half's Q3 2025 Earnings: A Glimpse of Improvement Amidst Caution

Robert Half reported global enterprise revenues of $1.354 billion for Q3 2025, down 8% year-over-year on both a reported and adjusted basis. Net income per share was $0.43, matching estimates, compared to $0.64 in the same quarter last year. The company's gross margin for Talent Solutions remained stable at 38.9% of applicable revenues. The earnings report highlighted client and job seeker caution, which subdued hiring activity and new project starts, but the company is encouraged by the weekly trends and contract talent revenues, which began to grow sequentially in September and into October.

Publication Date: Oct -25

📋 Highlights
  • Revenue Decline:: Global enterprise revenues fell 8% YoY to $1.354B in Q3 2025, with Talent Solutions revenues down 11% across both U.S. ($649M) and non-U.S. markets ($207M).
  • EPS Drop:: Net income per share declined from $0.64 to $0.43 YoY, driven by subdued hiring and margin pressures, despite $77M in operating cash flow.
  • Guidance Optimism:: Q4 revenue guidance ($1.245B–$1.345B) reflects a return to sequential growth for the first time in 13 quarters, with midpoint revenue down 7% YoY but up 1.5–2% sequentially.
  • Dividend Security:: Free cash flow ($77M in Q3) covered the $59M dividend, and $360M in cash reserves provide a buffer, reinforcing commitment to dividend continuity despite lower Q1 cash flow.
  • Margin Compression:: Gross margin for Protiviti fell to 23% (vs. 25.8% YoY), impacted by inflation and smaller project mix, but management expects 100–200 bps improvement by 2026 through project mix and cost control.

Revenue Performance and Guidance

The company's Talent Solutions revenues were down 11% year-over-year on an adjusted basis, with U.S. Talent Solutions revenues at $649 million and non-U.S. Talent Solutions revenues at $207 million, down 11% and 12% year-over-year, respectively. For the fourth quarter, Robert Half guided revenues to be between $1.245 billion and $1.345 billion, reflecting a return to sequential growth on a same-day constant currency basis. The midpoint of the guidance represents a 7% decline year-over-year on an as-adjusted basis.

Protiviti's Performance and Outlook

Protiviti's gross margin was 20.9% in Q3 2025, down from 24.6% in the same quarter last year. The company attributes the compression to inflation, challenges in passing through costs, and a lower mix of large, high-margin projects. However, Protiviti is committed to double-digit operating margins and expects improvements in 2026 and beyond through better project mix and staff resource management. As M. Waddell noted, "Protiviti's pipeline continues to grow across all of its major solutions areas," which is expected to drive growth rate improvements.

Valuation and Dividend Sustainability

With a P/E Ratio of 18.75 and a Dividend Yield of 7.91%, Robert Half's valuation suggests a relatively stable outlook. The company's commitment to its dividend is evident, with free cash flow covering the dividend in the near term. M. Waddell emphasized that "the dividend is very important, and we remain very committed to it." The company's capital allocation policy prioritizes growing the dividend first, followed by share repurchases using the residual free cash flow.

Outlook and Analyst Estimates

Analysts estimate next year's revenue growth at 0.5%, indicating a slow recovery. The company's guidance for Q4 2025 suggests a modest return to sequential growth, which is a positive sign. However, the overall macroeconomic backdrop remains cautious, and the company's performance is closely tied to the labor market and client hiring plans.

3. NewsRoom

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Market Today: Stocks Rise on Fed Cut Bets; Alphabet, Apple Hit Records

Nov -25

Source: gurufocus.com

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First Look: Alphabet nears $4T as Google chip talks jolt Nvidia

Nov -25

Source: gurufocus.com

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Dividends Up To 20% Wall Street Says You Should Sell

Nov -22

Source: forbes.com

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40,431 Shares in Robert Half Inc. $RHI Bought by AXQ Capital LP

Nov -22

Source: defenseworld.net

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Protiviti Receives 2025-2026 Microsoft AI Business Solutions Inner Circle Award

Nov -18

Source: prnewswire.com

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Robert Half: Macro Pressures, Competitive Questions

Nov -18

Source: seekingalpha.com

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Protiviti Congratulates Brand Ambassador Matt Fitzpatrick on Victory at the DP World Tour Championship

Nov -17

Source: prnewswire.com

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Robert Half Inc. $RHI Shares Sold by Envestnet Asset Management Inc.

Nov -16

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.83%)

6. Segments

Contract Talent Solutions

Expected Growth: 3.5%

Contract Talent Solutions' 3.5% growth is driven by increasing demand for flexible staffing, rising need for specialized skills, and growing adoption of remote work arrangements. Additionally, Robert Half's expertise in matching clients with skilled professionals and its strong brand reputation contribute to the segment's growth.

Protiviti

Expected Growth: 4.5%

Protiviti's 4.5% growth is driven by increasing demand for risk consulting and internal audit services, expansion into new markets, and strategic acquisitions. Additionally, the company's expertise in areas such as cybersecurity, data analytics, and financial advisory services contributes to its growth. Furthermore, its parent company Robert Half International Inc.'s strong brand reputation and global presence also support Protiviti's growth.

Permanent Placement Talent Solutions

Expected Growth: 3.8%

Robert Half's Permanent Placement Talent Solutions growth is driven by increasing demand for specialized talent, particularly in finance and accounting, as companies focus on strategic hiring to drive business growth. Additionally, the rise of remote work and shifting workforce dynamics have created a need for expert recruitment services, further fueling growth in this segment.

7. Detailed Products

Accountemps

Temporary and temporary-to-full-time accounting and finance staffing services

OfficeTeam

Temporary and temporary-to-full-time administrative staffing services

Robert Half Finance & Accounting

Permanent and temporary finance and accounting staffing services

Robert Half Management Resources

Project-based consulting services for finance and accounting professionals

Robert Half Technology

Permanent and temporary IT staffing services

The Creative Group

Temporary and temporary-to-full-time creative, digital and marketing staffing services

Protiviti

Risk consulting and internal audit services

8. Robert Half International Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Robert Half International Inc. is medium due to the presence of alternative staffing firms and online job boards. However, the company's strong brand reputation and specialized services mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Robert Half International Inc. due to the company's specialized services and strong relationships with clients. Clients rely on the company's expertise and are less likely to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Robert Half International Inc. due to the company's large scale and diversified supplier base. The company has the ability to negotiate prices and terms with its suppliers.

Threat Of New Entrants

The threat of new entrants is low for Robert Half International Inc. due to the company's established brand reputation, specialized services, and high barriers to entry in the staffing industry.

Intensity Of Rivalry

The intensity of rivalry is high for Robert Half International Inc. due to the competitive nature of the staffing industry. The company faces competition from established players and new entrants, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 13.22%
Debt Cost 3.95%
Equity Weight 86.78%
Equity Cost 10.40%
WACC 9.55%
Leverage 15.23%

11. Quality Control: Robert Half International Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mueller Industries

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Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

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Korn Ferry

A-Score: 5.8/10

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Growth: 5.8

Quality: 6.3

Yield: 4.0

Momentum: 4.0

Volatility: 8.3

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ManpowerGroup

A-Score: 5.0/10

Value: 8.3

Growth: 2.9

Quality: 3.6

Yield: 9.0

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Growth: 3.1

Quality: 5.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.0

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Robert Half

A-Score: 5.0/10

Value: 6.4

Growth: 3.2

Quality: 5.5

Yield: 8.0

Momentum: 0.0

Volatility: 6.7

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A-Score: 4.8/10

Value: 5.3

Growth: 6.9

Quality: 5.1

Yield: 7.0

Momentum: 0.0

Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.8$

Current Price

26.8$

Potential

-0.00%

Expected Cash-Flows