Robert Half’s Q1 Earnings Call: Our Top 5 Analyst Questions

Robert Half’s first quarter results for 2025 disappointed investors, as both revenue and non-GAAP profit came in below Wall Street expectations, leading to a negative market reaction. Management attributed the shortfall primarily to subdued hiring activity and elongated decision cycles among clients, which they linked to heightened economic uncertainty and evolving U.S. trade policies. CEO Keith Waddell described the business environment as one where “client and job seeker caution continues to elongate decision cycles and subdue hiring activity and new project starts.” The company also absorbed one-time charges from administrative cost reductions, which further weighed on reported earnings.

Is now the time to buy RHI? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Robert Half’s Q1 Earnings Call

• Mark Marcon (Baird) asked about the mix of discretionary versus recurring business in Protiviti and the potential for margin improvement; CEO Keith Waddell detailed the varied mix and projected better margins as cost actions take effect.
• Andrew Steinerman (JPMorgan) inquired about the specifics of the administrative cost cuts and their impact on revenue-generating teams; Waddell clarified that reductions focused on corporate services, preserving support for client-facing roles.
• Manav Patnaik (Barclays) probed whether client behavior changes prompted the timing of cost actions; Waddell explained that renewed economic uncertainty and persistent negative leverage made further cuts necessary.
• Stephanie Moore (Jefferies) sought insight on the Protiviti project pipeline and whether recent trends signaled improving demand; Waddell noted that the weighted pipeline is up year-over-year, despite some delays and pauses among financial services clients.
• George Tong (Goldman Sachs) questioned the impact of client caution on weekly revenue trends and the potential displacement from AI; Waddell attributed revenue declines to cyclical factors rather than AI, emphasizing the stability of demand for specialized talent.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will monitor (1) the pace at which cost savings from administrative reductions translate into improved margins, (2) signs of a rebound in client hiring and project initiation as business confidence stabilizes, and (3) continued traction of technology-driven productivity gains, especially in higher-skilled staffing and consulting segments. Progress in these areas will be crucial for gauging the company’s recovery and ability to capitalize when market conditions improve.

Robert Half currently trades at $41.03, down from $46.47 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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