Robert Half (RHI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.352 billion, down 8% year-over-year and 6% on an adjusted basis, reflecting economic uncertainty and subdued hiring activity.

• Net income for Q1 2025 was $17 million ($0.17 per share), compared to $64 million ($0.61 per share) in Q1 2024, with EPS reduced by $0.13 per share due to one-time cost reduction charges.

• Administrative cost structure was reduced and staffing levels lowered in talent solutions and Protiviti.

• Business confidence and hiring activity were subdued due to economic and U.S. trade policy uncertainty, elongating decision cycles and subduing project starts.

• The company remains optimistic about future growth, citing strong brand, technology, and business model.

Financial highlights

• Gross margin for Q1 2025 was $499 million (36.9% of revenue), down from $563 million (38.1%) in Q1 2024.

• Operating income was $39 million (2.9% of revenue), down from $40.9 million year-over-year; adjusted operating income was $19 million (1.4% of revenue), down 77.8%.

• Cash and cash equivalents at quarter-end were $342 million, with $59 million net cash used in operating activities.

• $0.59 per share dividend distributed in March, totaling $61 million, up 11.3% from prior year.

• 650,000–700,000 shares repurchased for $39 million; 6.6 million shares remain available for repurchase.

Outlook and guidance

• Q2 2025 revenue guidance: $1.31–$1.41 billion; EPS: $0.36–$0.46.

• Midpoint Q2 revenues expected to be 7% lower year-over-year and down 4% sequentially.

• Adjusted revenue growth: talent solutions down 10–14%, Protiviti up 1–4%, overall down 5–9%.

• Adjusted gross margin guidance: contract talent 38–40%, Protiviti 21–24%, overall 37–39%.

• 2025 capital expenditures expected at $75–$95 million, with $45–$55 million for software and technology.