10-Q · May 1, 2026
Robert Half's Q1 2026 results showed a 3.8% year-over-year decrease in revenue to $1.30 billion and a diluted EPS of $0.14, beating consensus estimates of $0.13. Despite challenges from macroeconomic uncertainty,…
Earnings analysis · 10-Q
RHI earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Robert Half's Q2 revenue declined 2.4% year over year to $1.34 billion, while diluted EPS of $0.26 fell from $0.41, though both revenue and EPS improved sequentially from Q1. Reported gross margin compressed 170 basis…
Read full summary
Robert Half's Q2 revenue declined 2.4% year over year to $1.34 billion, while diluted EPS of $0.26 fell from $0.41, though both revenue and EPS improved sequentially from Q1. Reported gross margin compressed 170 basis points to 35.5% and the operating margin fell to -4.7%, principally reflecting Protiviti's lower utilization/margin and deferred-compensation-related accounting volatility. Permanent placement was the sole growing segment, but declines in contract staffing and Protiviti, along with negative first-half operating cash flow, leave the near-term setup pressured despite management's improving-demand commentary and solid liquidity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.26
What stood out
-
Sequential EPS recovery despite lower sales
Q2 service revenue was $1.34 billion, down 2.4% from $1.37 billion a year ago but up from $1.30 billion in Q1 2026. Diluted EPS of $0.26 declined from $0.41 in Q2 2025 but improved from $0.14 in Q1 2026.
-
Permanent placement returned to growth
Permanent placement revenue increased 2.9% year over year to $118 million, driven by a 5.5% increase in average fee per placement, partly offset by a 2.6% decline in placements. U.S. permanent-placement revenue rose 6.0%.
-
Contract staffing pricing preserved margin
Contract talent gross margin held at 39.1% on $747 million of revenue, unchanged from Q2 2025, despite a 1.6% revenue decline. Average bill rates rose 1.2%, partly offsetting a 2.8% reduction in hours worked.
-
Labor backdrop supports eventual demand recovery
Management cited an unemployment rate of 4.2% at June 30, 2026 and a 2.7% rate for college-educated professionals, while noting continued labor-supply constraints in specialized roles. It sees client interactions and activity making steady progress as confidence improves.
-
Cash resources and unused revolver support liquidity
Liquidity remained substantial, with $325 million of cash and cash equivalents, $821 million of net receivables and no borrowings under the $100 million credit facility at June 30, 2026.
What to watch
-
Operating leverage turned sharply negative
Reported operating performance deteriorated sharply: the company recorded a $62 million operating loss, or a -4.7% margin, versus $2 million of operating income and a 0.1% margin in Q2 2025. Even adjusted operating income fell 34.8% to $39 million and the adjusted margin contracted to 2.9% from 4.3%.
-
Protiviti utilization and margin pressure
Protiviti revenue fell 4.9% to $471 million as billable hours declined 19.9%; its reported gross margin fell to 13.5% from 19.7%. Management attributed the shift to fewer large-scale regulatory-remediation engagements and a mix shift toward smaller, less leveraged work.
-
First-half operating cash flow reversed
Cash conversion weakened: operating activities used $4 million in the first half of 2026 versus providing $60 million a year earlier, and $32 million of capital expenditures produced approximately negative $36 million of first-half free cash flow. Cash at June 30 was $325 million, down from $381 million a year earlier.
-
No risk-factor update; demand visibility remains limited
The filing reports no changes to risk factors from the 2025 Form 10-K, but management stresses limited revenue visibility because engagements are relatively short. First-half service revenue declined 3.1% to $2.64 billion amid macroeconomic and geopolitical uncertainty and inflation concerns.
-
FX support may reverse in the second half
International operations represented 23.3% of first-half revenue, and currency added $31.1 million, or 1.2%, to first-half reported revenue. Management says that if July 2026 exchange rates persist, the full-year revenue currency impact would be unfavorable, although net-income impact is expected to be immaterial.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q. Management expects 2026 capitalized expenditures of $50 million to $70 million, including $45 million to $55 million for software initiatives and technology infrastructure; it also expects internally generated cash to fund working-capital needs, fixed payments, dividends and other obligations.
Earlier filings 4
10-K · February 13, 2026
Robert Half reported full-year 2025 service revenues of $5.38 billion (down 7.2% y/y) with net income of $133 million and diluted EPS of $1.33 (down 45.5% y/y). Margins compressed (reported gross margin 37.2%, operating…
10-Q · October 31, 2025
Robert Half reported Q3 2025 service revenues of $1.35 billion, down 7.5% year‑over‑year, with reported operating income of $14 million (1.0% of revenue) versus $61 million (4.1%) a year ago. EPS was $0.43, in line with…
10-Q · May 2, 2025
Robert Half reported Q1 service revenues of $1.35 billion (down 8.4% YoY) and diluted EPS of $0.17, which was reduced by $0.13 per share of one-time cost action charges. Protiviti was the sole growth engine—revenues of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.