Robert Half Talent Solutions Return to Adjusted Growth
Talent solutions revenue rose 2% on an adjusted year-over-year basis, the first such gain since 2022, as global results were $1.359 billion.
Robert Half Inc. (RHI), the specialized talent solutions and business consulting firm, reported third-quarter global enterprise revenues of $1.359 billion, roughly flat with last year on an adjusted basis after a 3% adjusted year-over-year decline in the second quarter.
Talent solutions returned to adjusted year-over-year revenue growth for the first time since 2022, with revenues increasing 2 percent, according to President and Chief Executive Officer M. Keith Waddell. Reported global revenue growth improved to 0.4% year over year from a 2.4% decline in the prior quarter. Adjusted global revenue growth improved to a 0.2% decline from a 2.8% decline.
Total talent solutions adjusted year-over-year growth turned positive at 1.6% after a 1.5% decline in the second quarter. Contract talent solutions adjusted growth turned positive at 1.0% after a 2.1% decline. Permanent placement talent solutions adjusted growth accelerated to 5.6% from 2.5%.
Finance and accounting adjusted year-over-year growth turned positive at 1.5% after a 1.3% decline. Technology adjusted growth accelerated to 3.9% from 2.3%. The administrative and customer support adjusted decline narrowed to 3.1% from 6.9%. Protiviti’s adjusted year-over-year decline narrowed to 3.3% from 5.0%.
U.S. total talent solutions adjusted year-over-year growth turned positive at 2.6% after a 0.8% decline. International total talent solutions adjusted decline narrowed to 0.7% from 4.1%.
Net income was $50 million, or $0.49 a share, versus $43 million, or $0.43 a share, a year earlier. Operating income was $74.8 million, or 5.5% of revenue, versus $13.6 million, or 1.0% of revenue. Adjusted operating income was $72.6 million, or 5.3% of revenue, versus $61.2 million, or 4.5%. Global enterprise earnings exceeded the midpoint of third-quarter guidance, Waddell said.
Reported gross margin expanded to 39.1% of revenue from 37.2% a year earlier. Adjusted gross margin expanded to 39.1% from 38.0%. Total talent solutions operating income swung to a $36.8 million profit, or 4.2% of revenue, from a $13.2 million loss, or 1.5% of revenue. Protiviti operating income was $38.0 million, or 7.9% of revenue, versus $26.8 million, or 5.4%.
Contract talent solutions revenue was $758.8 million. Permanent placement talent solutions revenue was $116.9 million. Protiviti revenue was $483.5 million.
Waddell said hiring activity continues to improve, supported by gradually improving market conditions, and that demand for risk and compliance consulting services showed encouraging signs of improvement during the quarter.