Robert Half Inc. Reports 7% Revenue Decline in Q2 2025 Amid Economic Uncertainty

Robert Half Inc. reported a decline in financial performance for the second quarter of 2025, with service revenues totaling $1.37 billion, a decrease of 7.0% compared to $1.47 billion in the same period last year. For the first half of 2025, revenues were $2.72 billion, down 7.7% from $2.95 billion in the first half of 2024. The company's net income for the second quarter was $40.97 million, or $0.41 per diluted share, compared to $68.16 million, or $0.66 per diluted share, in the prior year. The decline in revenues and profitability was attributed to a decrease in client hiring activity amid ongoing economic uncertainty.

In terms of segment performance, the contract talent solutions segment saw revenues drop by 11.1% to $759.81 million for the second quarter, primarily due to a 15.4% decrease in the number of hours worked by engagement professionals, despite a 4.7% increase in average bill rates. Permanent placement talent solutions revenues also fell by 12.5% to $114.71 million, driven by an 18.0% decrease in placements. Conversely, the Protiviti segment experienced a slight revenue increase of 1.8% to $495.22 million, supported by a 7.7% rise in billable hours.

The company made strategic investments in technology and innovation, particularly in artificial intelligence, to enhance its digital offerings and improve recruitment processes. Additionally, Robert Half expanded its operations through two acquisitions in April 2025, which contributed to an increase in goodwill from $237.18 million at the end of 2024 to $251.15 million by June 30, 2025. The company’s headcount remained stable across its segments, with a slight decrease in administrative roles.

Operationally, Robert Half reported cash and cash equivalents of $380.55 million as of June 30, 2025, down from $537.58 million at the end of 2024. The company generated $60 million in net cash from operating activities during the first half of 2025, compared to $126 million in the same period last year. Cash used in financing activities totaled $192 million, which included $121 million in dividends paid and $71 million in stock repurchases. The company is authorized to repurchase up to 6.2 million additional shares of its common stock.

Looking ahead, Robert Half anticipates that demand for its services will be influenced by macroeconomic conditions and labor market trends. The company noted that while hiring activity has slowed, job openings remain above historical levels, indicating potential future growth. The management remains cautious but optimistic about the recovery of client confidence and hiring urgency as economic conditions improve.