Robert Half (RHI) investor relations material

Executive summary

• Q3 revenue was $1.359B, up 0.4% reported and flat adjusted YoY; Talent Solutions returned to adjusted growth for the first time since 2022, and earnings exceeded the guidance midpoint.

• Hiring activity improved gradually, with encouraging demand in risk and compliance; diluted EPS rose 14% YoY to $0.49.

Financial highlights

• Q3 net income was $49.9M versus $42.9M YoY; diluted EPS was $0.49 versus $0.43.

• Adjusted operating income was $72.6M, or 5.3% of revenue, versus $61.2M and 4.5%; reported operating income was $74.8M.

• Q3 gross margin was $532.1M, or 39.1% of revenue, versus $504.2M and 37.2%; adjusted gross margin was $531.4M, or 39.1%, versus $514.7M and 38.0%.

• 9M revenue was $3.996B versus $4.076B; net income was $90.0M versus $101.2M, and diluted EPS was $0.90 versus $1.01.

Outlook and guidance

• Q4 revenue guidance is $1.285B–$1.385B and EPS guidance is $0.36–$0.46; midpoint revenue of $1.335B implies 3% adjusted YoY growth, and midpoint EPS of $0.41 is up 30%.

• At the Q4 midpoint, adjusted revenue growth is expected at 3% for Talent Solutions and 2% for Protiviti; adjusted operating margin guidance is 2%–4% for Talent Solutions, 6%–8% for Protiviti and 3%–5% overall.

• Q4 assumptions include adjusted gross margin of 37%–40%, a 31%–33% tax rate and 100.5M–101.5M shares; 2026 capital expenditures and capitalized cloud costs are projected at $60M–$70M.

• Q1 2027 consolidated operating margin has historically declined 1–2 percentage points sequentially; the expected Q1 tax rate is 36%–40%.

• Long-term growth expectations are mid-single digits for Talent Solutions and mid-single to low-double digits for Protiviti.