The 5 Most Interesting Analyst Questions From Robert Half's Q2 Earnings Call

Robert Half’s second quarter results reflected ongoing softness in staffing demand, as revenue declined year over year and operating margins compressed sharply. Management attributed these trends to persistent global economic uncertainty, which extended client and job seeker caution, elongated decision cycles, and subdued hiring activity. CEO M. Keith Waddell noted that revenue levels stabilized at lower levels by the end of the quarter and that “the tone of client conversations has definitely gotten better in the last few weeks.” Despite the challenging environment, the company maintained stable gross margin rates and continued to generate positive operating cash flow.

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 Q2 Earnings Call

• Andrew Steinerman (JPMorgan) asked about the impact of mix adjustments on bill rate increases. CEO M. Keith Waddell explained that unadjusted bill rates would be higher due to a long-term trend toward higher-skill placements.
• Mark Marcon (Baird) pressed for details on Protiviti’s project size and conversion timelines. Waddell said the slower start in Q3 was partly due to the completion of a few large projects but noted a substantial increase in new opportunities recently.
• John Ronan Kennedy (Barclays) sought clarification on sequential revenue trends and margin drivers. Waddell described stabilization after early-quarter declines and outlined cost discipline as supporting margin outlooks despite persistent revenue pressure.
• Trevor Romeo (William Blair) questioned whether client sentiment had fully recovered. Waddell replied that confidence had not yet returned to post-election highs, but recent improvements were evident, especially in technology staffing.
• Stephanie Moore (Jefferies) asked about Robert Half’s competitive positioning versus smaller rivals in an eventual recovery. Waddell emphasized the company’s technology investments and full-time engagement professionals as advantages that could facilitate market share gains.

Catalysts in Upcoming Quarters

Looking ahead, our analyst team will monitor (1) whether stabilization in client sentiment translates into sustained improvements in staffing demand and new project starts, (2) the pace of margin recovery as cost discipline is maintained amid revenue headwinds, and (3) ongoing growth and conversion rates in Protiviti’s opportunity pipeline. Developments in technology adoption and AI-driven service delivery will also be important markers of competitive differentiation.

Robert Half currently trades at $38.34, down from $42.43 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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