Robert Half Stock Plunges 16.68% on Weak Q1 Results

On April 24, 2025, Robert Half's stock experienced a significant drop of 16.68% in pre-market trading, reflecting a challenging quarter for the company.

Robert Half's stock has been under pressure due to a weak labor market and disappointing first-quarter results. The company reported a 33% drop in its share price amid declining margins and poor performance. The earnings call transcript revealed that the company's stock plummeted 15.39% in after-hours trading, closing at $39.30.

The company's second-quarter revenue projections fell short of market expectations, with estimates ranging between $1.31 billion and $1.41 billion, compared to the anticipated $1.46 billion. The talent solutions segment, particularly contract talent solutions, saw a 13% year-over-year decline in March, continuing a downward trend observed throughout the first quarter. Permanent placement revenues also declined, although there were signs of improvement in early April.

Despite these challenges, there were some positive developments. Protiviti, a subsidiary of Robert Half, reported year-on-year revenue growth for the second consecutive quarter, with a 5% increase globally. The company also maintained a strong cash flow from operations at $155 million and distributed a cash dividend of $0.53 per share, marking a 10.4% increase from the previous year. Additionally, Robert Half repurchased approximately 1 million shares, indicating confidence in its valuation.