Robert Half (RHI) rises premarket as talent solutions revenue grows for the first time since 2022
Robert Half Inc. (RHI) rose in premarket trading after its third quarter showed the first adjusted talent solutions growth since 2022 and a 190 basis point gross margin gain, while Protiviti consulting revenue fell 2.9%.
Robert Half Inc. (RHI) shares rose in premarket trading on Friday, October 23, according to an Investing.com premarket movers report. The move follows a third quarter report in which the staffing firm's talent solutions business grew on an adjusted basis for the first time since 2022.
Revenue for the quarter ended September 30 was $1.359 billion, up 0.4% from $1.354 billion a year earlier, the company said in its October 22 release filed with the SEC. After removing the effect of billing days and currency, revenue was down 0.2%. Diluted earnings per share rose to $0.49 from $0.43, and net income climbed to $49.9 million from $42.9 million.
The decline has narrowed for four straight quarters
The adjusted revenue trend is the core of the move. Robert Half's adjusted growth rate was minus 8.3% in the third quarter of 2025. It then went to minus 6.6%, minus 5.6%, minus 2.8% and now minus 0.2%. That makes four straight quarters of a smaller decline, as calculated by Trend & Ticker from the company's growth table.
Inside the mix, contract talent solutions revenue rose 1.7% to $758.8 million. Permanent placement revenue gained 6.2% to $116.9 million, and technology staffing grew 4.6%. Chief executive M. Keith Waddell said, "Hiring activity continues to improve, supported by gradually improving market conditions."
Protiviti, the consulting arm, is still shrinking. Its revenue fell 2.9% to $483.5 million. Waddell said demand for risk and compliance consulting "showed encouraging signs of improvement during the quarter."
Margins did more of the work than sales
Gross margin reached 39.1% of revenue, up from 37.2% a year earlier. That is a gain of 190 basis points, where one basis point is one hundredth of a percentage point. Protiviti's gross margin rose to 24.2% from 20.9%.
Adjusted operating income rose 18.5% to $72.6 million, as calculated by Trend & Ticker, while revenue barely moved. The adjusted operating margin widened to 5.3% from 4.5%.
Cash still trails the dividend
The cash flow statement tells a tighter story. Over nine months, net cash flows before financing activities were $47.1 million. Dividends paid in the same period came to $179.8 million, about 3.8 times that figure, as calculated by Trend & Ticker.
Share repurchases dropped to $6.8 million in the nine months from $92.1 million a year earlier. Cash and cash equivalents stood at $321.3 million on September 30, down from $365.3 million a year before.
No fourth quarter ranges in the release
The release itself carries no fourth quarter ranges. Management discussed the results on a call at 5 p.m. Eastern Time on Thursday, and the company keeps a replay online for 12 months. The open question for the next report is whether permanent placement gains keep outrunning the slide at Protiviti.
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