Robert Half Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with total service revenues of $5.38 billion, down 7.2% from $5.80 billion in 2024. The company's gross margin also decreased to $2.00 billion, a drop of 10.9% compared to the previous year. This decline was attributed to reduced revenues across its segments, particularly in contract talent solutions, which generated $1.17 billion in gross margin, down 11.4% from $1.32 billion in 2024. The overall operating income fell sharply by 68.3% to $76 million, representing just 1.4% of revenues, compared to 4.2% in the prior year.
The company experienced notable changes in its operational metrics, with gross margin percentages for contract talent solutions slightly decreasing to 39.0% from 39.2% in 2024. The Protiviti segment also saw a decline in gross margin dollars, falling to $397 million from $444 million, with a gross margin percentage of 20.4%, down from 22.8%. The decrease in profitability was primarily driven by economic conditions that negatively impacted demand for staffing services, leading to lower pay-bill spreads and reduced staff utilization rates.
In terms of strategic developments, Robert Half made two acquisitions in April 2025, which contributed to an increase in goodwill to $251.5 million from $237.2 million in 2024. The company also continued to invest in technology and cloud computing, with capital expenditures totaling $82 million, of which approximately 65% was allocated to software initiatives and technology infrastructure. The company anticipates capital expenditures in 2026 to range between $70 million and $90 million, focusing on similar growth areas.
The company’s liquidity position showed a decrease in cash and cash equivalents, which fell to $464 million from $538 million in 2024. Operating activities generated $320 million in cash, down from $410 million the previous year. The company maintained a strong working capital position, with $748 million in net accounts receivable. Additionally, Robert Half has authorized the repurchase of up to 5.6 million shares of its common stock, reflecting its commitment to returning value to shareholders despite the challenging market conditions.
Looking ahead, Robert Half's management expressed cautious optimism, noting that while macroeconomic conditions remain uncertain, the company expects to leverage its strong balance sheet and operational capabilities to navigate the challenges. The company is focused on enhancing its service offerings and expanding its geographic reach, particularly in international markets, where it generated approximately 22.4% of its revenues in 2025. The outlook remains contingent on improving market conditions and the successful integration of recent acquisitions.
About ROBERT HALF INC.
Robert Half Inc. provides specialized talent solutions and consulting services across finance, accounting, technology, legal, marketing, and creative fields. It offers contract staffing, permanent placement, and business consulting through its brands, serving global clients and candidates. Leveraging a broad office network, advanced AI tools, and a focus on quality, the company aims to connect skilled professionals with organizations to optimize workforce flexibility and business performance.
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