Robert Half Faces Declining Earnings Amid Economic Uncertainty

Menlo Park, California — Robert Half International Inc. reported a 7.0% drop in revenue to $1.37 billion for the second quarter of 2025, alongside a 39.9% decline in net income. The firm’s performance reflects ongoing economic turmoil and shifting client budgets, leading to cautious third-quarter guidance from Chief Executive Officer Timothy R. Farkas.

Despite the challenges, Farkas emphasized that there is still strong demand for professional staffing services, particularly within the accounting and finance sectors. He acknowledged, however, that the company expects third-quarter revenue to fall between $1.31 billion and $1.41 billion, citing macroeconomic volatility.

The company’s Contract talent solutions division was the largest contributor to revenue, with $759.81 million, followed by the Finance and accounting segment at $555.63 million. Meanwhile, the Technology segment generated $158.40 million, and Administrative services brought in $165.59 million. Robert Half also reported the elimination of intersegment revenues at $119.81 million.

In regard to earnings, the company’s earnings per share (EPS) dropped to $0.41, which is a 37.9% decrease year over year. Net income fell to $40.97 million, down from $68.16 million in the same quarter last year. This decrease is attributed to broader economic challenges impacting client demand.

The company’s stock took a significant hit, losing 17.81% month-to-date and underperforming its benchmark by 22.75% in a post-earnings strategy. The lack of significant drawdowns indicates a high-risk profile for investors, with a Sharpe ratio of -0.16 and 32.17% volatility.

On August 4, 2025, the day before the earnings report, Robert Half’s stock declined as investors sought clarity on the causes of the drop. This decline was reflective of overall market sentiment rather than any specific company news. Investors had expected significant shifts following the earnings report, but speculation about broader market conditions likely influenced stock performance.

As Robert Half navigates these economic headwinds, its focus remains on strategic investments in digital transformation and talent development. These efforts aim to sustain profitability despite client budget constraints while fostering long-term value creation.