Robert Half (RHI) investor relations material

Executive summary

• Q2 2026 revenues were $1.336 billion, down 2% year-over-year on a reported basis and down 3% on an adjusted basis; six-month revenues were $2.64 billion, down 3.1% year-over-year.

• Net income for Q2 2026 was $26 million ($0.26 per share), down from $41 million ($0.41 per share) in Q2 2025; six-month net income was $40 million ($0.40 per share).

• Talent Solutions achieved its third consecutive quarter of sequential revenue growth on an adjusted basis, with Permanent Placement operations posting 2.5% adjusted year-over-year growth.

• Protiviti revenues declined due to shifts in the U.S. financial services regulatory environment, but technology consulting within Protiviti delivered record revenues.

• The company continues to invest in technology and AI to enhance client and candidate experiences and operational efficiency.

Financial highlights

• Q2 2026 gross margin was $474 million (35.5% of revenue), down from $509 million (37.2%) in Q2 2025; adjusted gross margin was 37.2%.

• Adjusted operating income for Q2 2026 was $39 million (2.9% of revenues); reported operating income was negative $62 million due to non-cash investment gains.

• Cash and cash equivalents at June 30, 2026, were $325 million; cash flow from operations was $109 million for Q2.

• Q2 2026 diluted EPS: $0.26 (down from $0.41 in Q2 2025); effective tax rate increased to 35% from 33% due to lower tax credits and higher nondeductible expenses.

Outlook and guidance

• Q3 2026 revenue guidance: $1.31–$1.41 billion; income per share: $0.43–$0.53.

• Midpoint guidance implies flat adjusted revenues year-over-year; Talent Solutions expected to grow 1–5%, Protiviti to decline 4–8%.

• Adjusted operating income margin guidance: 4–6% overall, 3–5% for Talent Solutions, 6–8% for Protiviti.

• Management expects market conditions to gradually improve, with even modest increases in hiring activity expected to drive incremental demand.