Robert Half 2025 Q2 Earnings Net Income Dives 39.9% Amid Revenue Decline

Robert Half reported weaker-than-expected earnings for Q2 2025, with both revenue and profit figures declining year over year. The company’s net income dropped 39.9%, and it issued cautious guidance for the third quarter, reflecting ongoing economic uncertainty and client budget pressures.

Revenue
Robert Half’s Q2 revenue declined 7.0% year over year to $1.37 billion. The Contract talent solutions division led with $759.81 million in revenue, followed closely by the Finance and accounting segment, which contributed $555.63 million. Administrative and customer support services generated $165.59 million, while the Technology segment reported $158.40 million. Protiviti added $495.22 million, and Permanent placement talent solutions brought in $114.71 million. The company also noted an Elimination of intersegment revenues at $-119.81 million.

Earnings/Net Income
Earnings per share (EPS) fell 37.9% year over year to $0.41, and net income dropped to $40.97 million, down from $68.16 million in the prior-year period. These declines reflect broader macroeconomic challenges and reduced demand in key business areas.

Price Action
Robert Half’s stock has declined across multiple time frames, falling 0.90% in a single trading day, 8.26% in the most recent full trading week, and 17.81% month-to-date.

Post Earnings Price Action Review
The post-earnings strategy of buying RHI following a beat and holding for 30 days underperformed the benchmark, returning -22.75% compared to an 85.39% gain. Despite a lack of significant drawdowns, the strategy showed a Sharpe ratio of -0.16 and 32.17% volatility, highlighting its high-risk profile with limited upside.

CEO Commentary
CEO Timothy R. Farkas emphasized the company’s resilience amid economic uncertainty, noting sustained demand for professional staffing services—particularly in accounting and finance. He acknowledged macroeconomic volatility and client budget constraints but highlighted strategic investments in digital transformation and talent development as key growth enablers. Farkas expressed cautious optimism about navigating short-term challenges while maintaining long-term value creation.

Guidance
For Q3 2025, Robert Half expects revenue between $1.31 billion and $1.41 billion, with EPS projected at $0.37 to $0.47. The guidance reflects management’s current expectations for demand trends and macroeconomic conditions, with a focus on sustaining profitability and disciplined growth.

Additional News
On August 4, 2025, the day before the earnings report, Robert Half’s stock declined as investors sought clarity on the cause of the drop. While no official details were provided in the news, the article titled *“RHI News Today | Why did Robert Half stock go down today?”* indicated that speculation and broader market sentiment may have contributed to the decline. No major M&A activity, C-level changes, or dividend/buyback announcements were reported within the three weeks surrounding the earnings release.