Robert Half (RHI) Q1 2025 earnings summary

Executive summary

• Q1 2025 global revenues were $1.352 billion, down 8% year-over-year, with net income at $17 million ($0.17 per share), impacted by $0.13 per share in one-time cost reduction charges.

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

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

• Cost actions in March and April are expected to yield $80 million in annual savings.

Financial highlights

• Adjusted operating income was $19 million (1.4% of revenue), with $17 million in one-time charges for cost actions.

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

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

• $0.59 per share dividend paid in March, totaling $61 million; dividend increased 11.3% year-over-year.

• 650,000 shares repurchased for $39 million; 6.6 million shares remain authorized for repurchase.

Outlook and guidance

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

• 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%.

• Full-year tax rate expected at 31–33%.

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