Business
Robert Half : Quarter Ended 06/30/2026
Robert Half : Quarter Ended
About this update from Robert Half Inc.
ROBERT HALF INC. NON-GAAP FINANCIAL MEASURES The financial results of Robert Half Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the SEC. To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expenses; adjusted operating income; and adjusted revenue growth rates. The following measures: adjusted gross margin, adjusted selling, general and administrative expenses and adjusted operating income, include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results. Adjusted revenue growth rates represent year-over-year revenue growth rates after removing the impacts on reported revenues from the changes in the number of billing days and foreign currency exchange rates. The Company provides this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The impacts from the changes in billing days and foreign currency exchange rates are calculated as follows: Billing days impact is calculated by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all functional specializations and segments. Foreign currency impact is calculated by retranslating current-period international revenues, using foreign currency exchange rates from the prior year's comparable period. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages. - 1 - ADJUSTED GROSS MARGIN (UNAUDITED): (in thousands) Three Months Ended June 30, Relationships Six Months Ended June 30, Relationships As Reported As Adjusted As Reported As Adjusted As Reported As Adjusted As Reported As Adjusted 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Gross Margin Contract talent solutions . . . $ 292,422 $ 297,367 $ 292,422 $ 297,367 39.1% 39.1% 39.1% 39.1% $ 574,175 $ 594,300 $ 574,175 $ 594,300 39.0% 39.0% 39.0% 39.0% Permanent placement talent solutions . . . . . . . . . . . . . 117,823 114,551 117,823 114,551 99.9% 99.9% 99.9% 99.9% 226,549 226,412 226,549 226,412 99.8% 99.8% 99.8% 99.8% Total talent solutions . . . . 410,245 411,918 410,245 411,918 47.4% 47.1% 47.4% 47.1% 800,724 820,712 800,724 820,712 47.1% 46.9% 47.1% 46.9% Protiviti . . . . . . . . . . . . . . . . 63,782 97,556 87,170 110,357 13.5% 19.7% 18.5% 22.3% 153,212 187,807 174,596 196,569 16.3% 19.3% 18.6% 20.2% Total . . . . . . . . . . . . . . . . . $ 474,027 $ 509,474 $ 497,415 $ 522,275 35.5% 37.2% 37.2% 38.1% $ 953,936 $ 1,008,519 $ 975,320 $ 1,017,281 36.2% 37.1% 37.0% 37.4% The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the three months ended June 30, 2026 and 2025: solutions solutions Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Contract talent solutions Permanent placement talent solutions Total talent Protiviti Total Contract talent solutions Permanent placement talent solutions Total talent Protiviti Total $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Gross Margin As Reported ............. $ 292,422 39.1% $ 117,823 99.9% $ 410,245 47.4% $ 63,782 13.5% $ 474,027 35.5% $ 297,367 39.1% $ 114,551 99.9% $ 411,918 47.1% $ 97,556 19.7% $ 509,474 37.2% Adjustments (1) .... - - - - - - 23,388 5.0% 23,388 1.7% - - - - - - 12,801 2.6% 12,801 0.9% As Adjusted ............. $ 292,422 39.1% $ 117,823 99.9% $ 410,245 47.4% $ 87,170 18.5% $ 497,415 37.2% $ 297,367 39.1% $ 114,551 99.9% $ 411,918 47.1% $ 110,357 22.3% $ 522,275 38.1% The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the six months ended June 30, 2026 and 2025: solutions solutions Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Contract talent solutions Permanent placement talent solutions Total talent Protiviti Total Contract talent solutions Permanent placement talent solutions Total talent Protiviti Total $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Gross Margin As Reported ........... $ 574,175 39.0% $ 226,549 99.8% $ 800,724 47.1% $ 153,212 16.3% $ 953,936 36.2% $ 594,300 39.0% $ 226,412 99.8% $ 820,712 46.9% $ 187,807 19.3% $1,008,519 37.1% Adjustments (1) ... - - - - - - 21,384 2.3% 21,384 0.8% - - - - - - 8,762 0.9% 8,762 0.3% As Adjusted ........... $ 574,175 39.0% $ 226,549 99.8% $ 800,724 47.1% $ 174,596 18.6% $ 975,320 37.0% $ 594,300 39.0% $ 226,412 99.8% $ 820,712 46.9% $ 196,569 20.2% $1,017,281 37.4% (1) Changes in the Company's employee deferred compensation plan obligations related to Protiviti operations are included in costs of services, while the related investment (income) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes. ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (UNAUDITED): (in thousands) Three Months Ended June 30, Relationships Six Months Ended June 30, Relationships As Reported As Adjusted As Reported As Adjusted As Reported As Adjusted As Reported As Adjusted 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Selling, General and Administrative Expenses Contract talent solutions . . . $ 343,038 $ 318,871 $ 274,618 $ 278,944 45.9% 42.0% 36.7% 36.7% $ 610,119 $ 595,083 $ 547,058 $ 569,186 41.4% 39.1% 37.2% 37.4% Permanent placement talent solutions . . . . . . . . . . . . . 115,999 111,218 106,929 106,292 98.3% 97.0% 90.6% 92.7% 217,805 217,353 209,599 214,529 96.0% 95.8% 92.3% 94.6% Total talent solutions . . . . 459,037 430,089 381,547 385,236 53.0% 49.2% 44.1% 44.1% 827,924 812,436 756,657 783,715 48.7% 46.4% 44.5% 44.8% Protiviti . . . . . . . . . . . . . . . . 77,289 77,845 77,289 77,845 16.4% 15.7% 16.4% 15.7% 151,400 155,661 151,400 155,661 16.2% 16.0% 16.2% 16.0% Total . . . . . . . . . . . . . . . . . $ 536,326 $ 507,934 $ 458,836 $ 463,081 40.1% 37.1% 34.3% 33.8% $ 979,324 $ 968,097 $ 908,057 $ 939,376 37.1% 35.6% 34.4% 34.5% The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Contract talent solutions Permanent placement talent Total talent solutions Protiviti Total Contract talent Permanent placement talent Total talent solutions Protiviti Total solutions solutions solutions % of $ Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Selling, General and Administrative Expenses As Reported ................ $ 343,038 45.9% $ 115,999 98.3% $ 459,037 53.0% $ 77,289 16.4% $ 536,326 40.1% $ 318,871 42.0% $ 111,218 97.0% $ 430,089 49.2% $ 77,845 15.7% $ 507,934 37.1% Adjustments (1) ....... (68,420) (9.2%) (9,070) (7.7%) (77,490) (8.9%) - - (77,490) (5.8%) (39,927) (5.3%) (4,926) (4.3%) (44,853) (5.1%) - - (44,853) (3.3%) As Adjusted ................ $ 274,618 36.7% $ 106,929 90.6% $ 381,547 44.1% $ 77,289 16.4% $ 458,836 34.3% $ 278,944 36.7% $ 106,292 92.7% $ 385,236 44.1% $ 77,845 15.7% $ 463,081 33.8% The following tables provide reconciliations of the non-GAAP adjusted selling, general and administrative expenses to reported selling, general and administrative expenses for the six months ended June 30, 2026 and 2025: solutions Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Contract talent solutions Permanent placement talent Total talent solutions Protiviti Total Contract talent Permanent placement talent Total talent solutions Protiviti Total solutions solutions $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue $ % of Revenue Selling, General and Administrative Expens es As Reported ................. $ 610,119 41.4% $ 217,805 96.0% $ 827,924 48.7% $ 151,400 16.2% $ 979,324 37.1% $ 595,083 39.1% $ 217,353 95.8% $ 812,436 46.4% $ 155,661 16.0% $ 968,097 35.6% Adjustments (1) ........ (63,061) (4.2%) (8,206) (3.7%) (71,267) (4.2%) - - (71,267) (2.7%) (25,897) (1.7%) (2,824) (1.2%) (28,721) (1.6%) - - (28,721) (1.1%) As Adjusted ................. $ 547,058 37.2% $ 209,599 92.3% $ 756,657 44.5% $ 151,400 16.2% $ 908,057 34.4% $ 569,186 37.4% $ 214,529 94.6% $ 783,715 44.8% $ 155,661 16.0% $ 939,376 34.5% (1) Changes in the Company's employee deferred compensation plan obligations related to talent solutions operations are included in selling, general and administrative expenses, while the related investment (income) loss is presented separately. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes. ADJUSTED OPERATING INCOME (UNAUDITED): (in thousands) As Reported As Adjusted As Reported As Adjusted As Reported As Adjusted As Reported As Adjusted 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 Operating (Loss) Income Three Months Ended June 30, Relationships Six Months Ended June 30, Relationships Contract talent solutions . . . $ (50,616) $ (21,504) $ 17,804 $ 18,423 (6.8%) (2.8%) 2.4% 2.4% $ (35,944) $ (783) $ 27,117 $ 25,114 (2.4%) (0.1%) 1.8% 1.6% Permanent placement talent solutions . . . . . . . . . . . . . 1,824 3,333 10,894 8,259 1.5% 2.9% 9.2% 7.2% 8,744 9,059 16,950 11,883 3.9% 4.0% 7.5% 5.2% Total talent solutions . . . . (48,792) (18,171) 28,698 26,682 (5.6%) (2.1%) 3.3% 3.1% (27,200) 8,276 44,067 36,997 (1.6%) 0.5% 2.6% 2.1% Protiviti . . . . . . . . . . . . . . . . (13,507) 19,711 9,881 32,512 (2.9%) 4.0% 2.1% 6.6% 1,812 32,146 23,196 40,908 0.2% 3.3% 2.5% 4.2% Total . . . . . . . . . . . . . . . . . $ (62,299) $ 1,540 $ 38,579 $ 59,194 (4.7%) 0.1% 2.9% 4.3% $ (25,388) $ 40,422 $ 67,263 $ 77,905 (1.0%) 1.5% 2.6% 2.9% The following tables provide reconciliations of the non-GAAP adjusted operating income to reported operating (loss) income for the three months ended June 30, 2026 and 2025: solutions Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Contract talent solutions Permanent placement talent solutions Total talent solutions Protiviti Total Contract talent Permanent placement talent solutions Total talent solutions Protiviti Total % of % of % of % of % of % of % of % of % of % of $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue Operating (Loss) Income As Reported ..................... $ (50,616) (6.8%) $ 1,824 1.5% $ (48,792) (5.6%) $ (13,507) (2.9%) $ (62,299) (4.7%) $ (21,504) (2.8%) $ 3,333 2.9% $ (18,171) (2.1%) $ 19,711 4.0% $ 1,540 0.1% Adjustments (1) ............ 68,420 9.2% 9,070 7.7% 77,490 8.9% 23,388 5.0% 100,878 7.6% 39,927 5.2% 4,926 4.3% 44,853 5.2% 12,801 2.6% 57,654 4.2% As Adjusted ..................... $ 17,804 2.4% $ 10,894 9.2% $ 28,698 3.3% $ 9,881 2.1% $ 38,579 2.9% $ 18,423 2.4% $ 8,259 7.2% $ 26,682 3.1% $ 32,512 6.6% $ 59,194 4.3% The following tables provide reconciliations of the non-GAAP adjusted operating income to reported operating (loss) income for the six months ended June 30, 2026 and 2025: solutions Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Contract talent solutions Permanent placement talent solutions Total talent solutions Protiviti Total Contract talent Permanent placement talent solutions Total talent solutions Protiviti Total % of % of % of % of % of % of % of % of % of % of $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue $ Revenue Operating (Loss) Income As Reported ..................... $ (35,944) (2.4%) $ 8,744 3.9% $ (27,200) (1.6%) $ 1,812 0.2% $ (25,388) (1.0%) $ (783) (0.1%) $ 9,059 4.0% $ 8,276 0.5% $ 32,146 3.3% $ 40,422 1.5% Adjustments (1) ............ 63,061 4.2% 8,206 3.6% 71,267 4.2% 21,384 2.3% 92,651 3.6% 25,897 1.7% 2,824 1.2% 28,721 1.6% 8,762 0.9% 37,483 1.4% As Adjusted ..................... $ 27,117 1.8% $ 16,950 7.5% $ 44,067 2.6% $ 23,196 2.5% $ 67,263 2.6% $ 25,114 1.6% $ 11,883 5.2% $ 36,997 2.1% $ 40,908 4.2% $ 77,905 2.9% (1) Changes in the Company's employee deferred compensation plan obligations are included in operating (loss) income. The non-GAAP financial adjustments shown in the table above are to reclassify investment (income) loss from investments held in employee deferred compensation trusts to the same line item that includes the corresponding change in obligation. These adjustments have no impact on income before income taxes. ROBERT HALF INC. NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATES (%) (UNAUDITED): Year-Over-Year Growth Rates (As Reported) Non-GAAP Year-Over-Year Growth Rates (As Adjusted) 2025 2026 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Global Finance and accounting . . . . . . . . . -12.3 -10.8 -9.9 -6.9 -4.3 -0.7 -10.0 -10.8 -10.7 -7.8 -6.3 -1.3 Administrative and customer support . . . . . . . . . . . . . . . . . . . . -17.2 -13.0 -11.1 -11.4 -9.8 -6.5 -15.2 -13.3 -12.1 -12.5 -11.8 -6.9 Technology . . . . . . . . . . . . . . . . . . -3.4 0.3 -1.5 -1.0 0.8 2.4 -1.3 0.4 -1.9 -1.2 -0.3 2.3 Elimination of intersegment revenues (1) . . . . . . . . . . . . . . . . 4.5 2.9 1.1 3.0 -0.9 1.3 6.8 2.5 0.2 2.2 -2.8 1.2 Total contract talent solutions . . . . -14.0 -11.1 -10.1 -8.2 -5.0 -1.6 -11.8 -11.1 -10.9 -9.0 -6.8 -2.1 Permanent placement talent solutions . . . . . . . . . . . . . . . . . . . -10.2 -12.5 -10.7 -5.1 -2.8 2.9 -7.8 -12.6 -11.4 -5.9 -4.7 2.5 Total talent solutions . . . . . . . . -13.5 -11.3 -10.2 -7.9 -4.7 -1.0 -11.3 -11.3 -11.0 -8.6 -6.6 -1.5 Protiviti . . . . . . . . . . . . . . . . . . . . . 2.7 1.8 -2.6 -2.0 -2.2 -4.9 4.7 1.5 -3.4 -2.8 -3.8 -5.0 Total . . . . . . . . . . . . . . . . . . . . . . . . -8.4 -7.0 -7.5 -5.8 -3.8 -2.4 -6.2 -7.1 -8.3 -6.6 -5.6 -2.8 United States Contract talent solutions . . . . . . . . -11.8 -10.7 -10.3 -9.5 -7.6 -2.1 -10.7 -10.7 -10.4 -9.2 -7.5 -1.8 Permanent placement talent solutions . . . . . . . . . . . . . . . . . . . -8.5 -13.2 -11.3 -5.8 -5.9 6.0 -7.3 -13.2 -11.4 -5.5 -5.7 6.3 Total talent solutions . . . . . . . . -11.4 -11.0 -10.4 -9.0 -7.4 -1.1 -10.3 -11.0 -10.5 -8.8 -7.3 -0.8 Protiviti . . . . . . . . . . . . . . . . . . . . . 2.3 -0.7 -5.5 -5.9 -6.4 -5.8 3.6 -0.7 -5.6 -5.6 -6.3 -5.5 Total . . . . . . . . . . . . . . . . . . . . . . . . -6.9 -7.4 -8.6 -7.9 -7.1 -2.9 -5.7 -7.4 -8.7 -7.6 -6.9 -2.5 International Contract talent solutions . . . . . . . . -20.7 -12.5 -9.7 -4.0 4.3 -0.1 -16.2 -12.9 -12.4 -8.7 -3.4 -3.5 Permanent placement talent solutions . . . . . . . . . . . . . . . . . . . -14.5 -10.6 -9.0 -3.5 5.7 -4.8 -10.1 -11.2 -11.2 -7.0 -0.9 -7.1 Total talent solutions . . . . . . . . -19.8 -12.2 -9.6 -3.9 4.5 -0.9 -15.3 -12.6 -12.2 -8.4 -3.0 -4.1 Protiviti . . . . . . . . . . . . . . . . . . . . . 4.4 13.1 11.1 14.7 16.0 -1.2 7.9 10.7 7.5 9.1 8.1 -3.1 Total . . . . . . . . . . . . . . . . . . . . . . . . -13.6 -5.3 -3.8 1.8 8.1 -1.0 -9.4 -6.3 -6.7 -3.0 0.4 -3.8 (1) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line item. The non-GAAP financial measures included in the table above adjust for the following items: Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates the billing day impact by dividing each comparative period's reported revenues by the number of billing days for that period to arrive at a per billing day amount. Same billing day growth rates are then calculated based on the per billing day amounts. Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all functional specializations and segments. Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. The foreign currency impact is calculated by retranslating current-period international revenues, using foreign currency exchange rates from the prior year's comparable period. The term "As Adjusted" means that the impact of different billing days and constant currency fluctuations are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein, on Pages 6-8. - 5 - -