Robert Half Stays Agile Amidst Economic Uncertainty
The first quarter of 2025 has been marked by heightened economic uncertainty over U.S. trade and other policy developments, leading to a moderation in business confidence levels.
As a result, client and job seeker caution continues to elongate decision cycles and subdue hiring activity and new project starts for Robert Half.
Despite this uncertain outlook, the company remains well-positioned to capitalize on emerging opportunities and support its clients' talent and consulting needs through the strength of its industry-leading brand, people, technology, and unique business model that includes both professional staffing and business consulting services.
The company's President and Chief Executive Officer, Keith Waddell, acknowledged the challenges during the Q1 2025 conference call, stating "Client and job seeker caution continues to elongate decision cycles and subdue hiring activity and new project starts." He also highlighted the company's resilience saying, "Despite the uncertain outlook, we're very well positioned to capitalize on emerging opportunities."
Robert Half reported a decrease in Global Enterprise revenues for the first quarter of 2025. On a reported basis, revenue was down 8% from last year's first quarter, while on an as-adjusted basis, it was down 6%. Net income per share in the first quarter was $0.17 compared to $0.61 in the first quarter of 2024.
However, the company demonstrated its financial discipline by maintaining a strong cash position, with cash flow used in operations during the quarter being $59 million. This is relatively typical for the first quarter due to annual payment cycles, including bonuses and SaaS subscription renewals.
In March, Robert Half distributed a $0.59 per share cash dividend to its shareholders, representing an 11.3% increase from the prior year's dividend. The company has also been actively repurchasing shares, acquiring approximately 650,000 Robert Half shares during the quarter for $39 million.
Return on invested capital for the company was reported as 5% in the first quarter of 2025.
The company's CFO, Michael Buckley, provided further insights into its Talent Solutions operations. He noted that U.S. Talent Solutions revenues were down 10% from the prior year's first quarter and non-U.S. Talent Solutions revenues were down 15%. Despite this decline, contract talent bill rates for the first quarter increased by 4.2%, adjusted for changes in revenue mix.
In conclusion, Robert Half has navigated the challenges of the first quarter with financial resilience and agility, maintaining a strong position to capitalize on emerging opportunities despite economic uncertainty.
