ROBERT HALF INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS ROBERT HALF INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (in thousands, except share amounts) September 30, 2025 December 31, 2024 ASSETS Cash and cash equivalents $ 365,289 $ 537,583 Accounts receivable, net 838,002 772,285 Employee deferred compensation trust assets 761,161 673,240 Other current assets 151,354 146,314 Total current assets 2,115,806 2,129,422 Property and equipment, net 129,317 119,564 Right-of-use assets 199,297 198,384 Goodwill 251,266 237,180 Noncurrent deferred income taxes 131,524 158,120 Other noncurrent assets 19,168 11,735 Total assets $ 2,846,378 $ 2,854,405 LIABILITIES Accounts payable and accrued expenses $ 151,447 $ 166,955 Accrued payroll and benefit costs 390,253 372,785 Employee deferred compensation plan obligations 751,304 678,403 Income taxes payable 2,178 2,977 Current operating lease liabilities 69,743 64,619 Total current liabilities 1,364,925 1,285,739 Noncurrent operating lease liabilities 171,037 168,900 Other noncurrent liabilities 24,324 21,763 Total liabilities 1,560,286 1,476,402 Commitments and Contingencies (Note K) STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value; authorized 5,000,000 shares; none issued — — Common stock, $ 0.001 par value; authorized 260,000,000 shares; issued and outstanding 101,161,069 shares and 102,199,470 shares 101 102 Additional paid-in capital 1,318,564 1,418,150 Accumulated other comprehensive loss ( 32,573 ) ( 65,138 ) Retained earnings — 24,889 Total stockholders’ equity 1,286,092 1,378,003 Total liabilities and stockholders’ equity $ 2,846,378 $ 2,854,405 The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these financial statements. 2 ROBERT HALF INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Service revenues $ 1,354,477 $ 1,465,004 $ 4,076,127 $ 4,413,465 Costs of services 850,246 893,348 2,563,377 2,702,333 Gross margin 504,231 571,656 1,512,750 1,711,132 Selling, general and administrative expenses 490,643 511,091 1,458,740 1,534,126 Operating income 13,588 60,565 54,010 177,006 Income from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses - Note A) ( 47,621 ) ( 29,230 ) ( 85,104 ) ( 88,339 ) Interest income, net ( 2,510 ) ( 5,391 ) ( 8,321 ) ( 16,990 ) Income before income taxes 63,719 95,186 147,435 282,335 Provision for income taxes 20,803 29,735 46,201 85,027 Net income $ 42,916 $ 65,451 $ 101,234 $ 197,308 Net income per share: Basic $ 0.43 $ 0.64 $ 1.01 $ 1.91 Diluted $ 0.43 $ 0.64 $ 1.01 $ 1.91 Weighted average shares: Basic 99,897 102,175 100,321 103,034 Diluted 100,041 102,393 100,529 103,371 Dividends declared per share $ 0.59 $ 0.53 $ 1.77 $ 1.59 The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these financial statements. 3 ROBERT HALF INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 COMPREHENSIVE INCOME (LOSS): Net income $ 42,916 $ 65,451 $ 101,234 $ 197,308 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax ( 2,589 ) 17,087 32,441 ( 963 ) Foreign defined benefit plan adjustments, net of tax 43 43 124 128 Total other comprehensive income (loss) ( 2,546 ) 17,130 32,565 ( 835 ) Total comprehensive income (loss) $ 40,370 $ 82,581 $ 133,799 $ 196,473 The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these financial statements. 4 ROBERT HALF INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except per share amounts) Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Retained Earnings Total Shares Par Value Balance at December 31, 2024 102,199 $ 102 $ 1,418,150 $ ( 65,138 ) $ 24,889 $ 1,378,003 Net income — — — — 17,350 17,350 Other comprehensive income (loss) — — — 11,472 — 11,472 Dividends declared ($ 0.59 per share) — — ( 60,163 ) — — ( 60,163 ) Net issuances of restricted stock 823 1 ( 1 ) — — — Stock-based compensation — — 16,705 — — 16,705 Repurchases of common stock ( 858 ) ( 1 ) ( 7,905 ) — ( 42,239 ) ( 50,145 ) Balance at March 31, 2025 102,164 $ 102 $ 1,366,786 $ ( 53,666 ) $ — $ 1,313,222 Net income — — — — 40,968 40,968 Other comprehensive income (loss) — — — 23,639 — 23,639 Dividends declared ($ 0.59 per share) — — ( 39,473 ) — ( 20,811 ) ( 60,284 ) Net issuances of restricted stock 36 — — — — — Stock-based compensation — — 14,530 — — 14,530 Repurchases of common stock ( 461 ) — — — ( 20,157 ) ( 20,157 ) Balance at June 30, 2025 101,739 $ 102 $ 1,341,843 $ ( 30,027 ) $ — $ 1,311,918 Net income — — — — 42,916 42,916 Other comprehensive income (loss) — — — ( 2,546 ) — ( 2,546 ) Dividends declared ($ 0.59 per share) — — ( 37,197 ) — ( 22,676 ) ( 59,873 ) Net issuances of restricted stock ( 3 ) — — — — — Stock-based compensation — — 13,918 — — 13,918 Repurchases of common stock ( 575 ) ( 1 ) — — ( 20,240 ) ( 20,241 ) Balance at September 30, 2025 101,161 $ 101 $ 1,318,564 $ ( 32,573 ) $ — $ 1,286,092 The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these financial statements. 5 ROBERT HALF INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except per share amounts) Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Retained Earnings Total Shares Par Value Balance at December 31, 2023 105,209 $ 105 $ 1,354,703 $ ( 32,626 ) $ 266,169 $ 1,588,351 Net income — — — — 63,701 63,701 Other comprehensive income (loss) — — — ( 11,379 ) — ( 11,379 ) Dividends declared ($ 0.53 per share) — — — — ( 56,382 ) ( 56,382 ) Net issuances of restricted stock 751 1 ( 1 ) — — — Stock-based compensation — — 16,777 — — 16,777 Repurchases of common stock ( 1,028 ) ( 1 ) — — ( 81,822 ) ( 81,823 ) Balance at March 31, 2024 104,932 $ 105 $ 1,371,479 $ ( 44,005 ) $ 191,666 $ 1,519,245 Net income — — — — 68,156 68,156 Other comprehensive income (loss) — — — ( 6,586 ) — ( 6,586 ) Dividends declared ($ 0.53 per share) — — — — ( 55,407 ) ( 55,407 ) Net issuances of restricted stock 27 — — — — — Stock-based compensation — — 15,631 — — 15,631 Repurchases of common stock ( 903 ) ( 1 ) — — ( 60,883 ) ( 60,884 ) Balance at June 30, 2024 104,056 $ 104 $ 1,387,110 $ ( 50,591 ) $ 143,532 $ 1,480,155 Net income — — — — 65,451 65,451 Other comprehensive income (loss) — — — 17,130 — 17,130 Dividends declared ($ 0.53 per share) — — — — ( 54,760 ) ( 54,760 ) Net issuances of restricted stock ( 8 ) — — — — — Stock-based compensation — — 15,707 — — 15,707 Repurchases of common stock ( 801 ) ( 1 ) — — ( 49,847 ) ( 49,848 ) Balance at September 30, 2024 103,247 $ 103 $ 1,402,817 $ ( 33,461 ) $ 104,376 $ 1,473,835 The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these financial statements. 6 ROBERT HALF INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 101,234 $ 197,308 Adjustments to reconcile net income to net cash provided by operating activities: Allowance for credit losses 3,800 2,481 Depreciation 37,893 38,713 Amortization of cloud computing implementation costs 23,234 27,537 Amortization of intangible assets 1,350 913 Realized and unrealized gains from investments held in employee deferred compensation trusts ( 77,430 ) ( 80,634 ) Stock-based compensation 45,153 48,115 Deferred income taxes 26,604 ( 9,782 ) Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable ( 43,910 ) ( 25,946 ) Capitalized cloud computing implementation costs ( 20,835 ) ( 22,879 ) Accounts payable and accrued expenses ( 23,014 ) 5,266 Accrued payroll and benefit costs 5,753 ( 9,869 ) Employee deferred compensation plan obligations 72,901 91,177 Income taxes payable ( 7,744 ) ( 4,688 ) Other assets and liabilities, net ( 7,557 ) ( 2,076 ) Net cash flows provided by operating activities 137,432 255,636 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ( 41,408 ) ( 42,012 ) Investments in employee deferred compensation trusts ( 57,806 ) ( 50,220 ) Proceeds from employee deferred compensation trust redemptions 47,315 34,391 Payments for acquisitions, net of cash acquired ( 10,722 ) ( 264 ) Net cash flows used in investing activities ( 62,621 ) ( 58,105 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchases of common stock ( 92,069 ) ( 195,548 ) Dividends paid ( 179,549 ) ( 166,269 ) Net cash flows used in financing activities ( 271,618 ) ( 361,817 ) Effect of exchange rate fluctuations 24,513 3,012 Change in cash and cash equivalents ( 172,294 ) ( 161,274 ) Cash and cash equivalents at beginning of period 537,583 731,740 Cash and cash equivalents at end of period $ 365,289 $ 570,466 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Non-cash items: Fund exchanges within employee deferred compensation trusts $ 137,458 $ 72,190 Contingent consideration related to acquisitions $ 2,684 $ — The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these financial statements. 7 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 Note A— Summary of Significant Accounting Policies Nature of Operations . Robert Half Inc. (the “Company”) is a specialized talent solutions and business consulting firm, connecting highly skilled job seekers with rewarding opportunities at great companies. Robert Half ® offers contract talent solutions and permanent placement talent solutions for finance and accounting, technology, marketing and creative, legal, and administrative and customer support, and provides executive search services. Robert Half is also the parent company of Protiviti ® , a global consulting firm that delivers internal audit, risk, business, and technology consulting solutions. The Company operates in North America, South America, Europe, Asia and Australia. The Company is a Delaware corporation. Basis of Presentation. The unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The comparative year-end Condensed Consolidated Statement of Financial Position data presented was derived from audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial position and results of operations for the periods presented have been included. These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company for the year ended December 31, 2024, included in its Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for a full year. Certain reclassifications have been made to prior year’s Financial Statements to conform to the 2025 presentation. Principles of Consolidation. The Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. As of September 30, 2025, such estimates include allowances for credit losses, variable consideration, workers’ compensation losses, accrued medical expenses, income and other taxes, and assumptions used in the Company’s goodwill impairment assessment and in the valuation of stock grants subject to market conditions. Actual results and outcomes may differ from management’s estimates and assumptions. Service Revenues. The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. See Note C for further discussion of the revenue recognition accounting policy. Costs of Services. Direct costs of contract talent solutions consist of payroll, payroll taxes, and benefit costs for the Company’s engagement professionals, as well as reimbursable expenses. Direct costs of permanent placement talent solutions consist of reimbursable expenses. Protiviti direct costs of services include professional staff payroll, payroll taxes and benefit costs, as well as reimbursable expenses. Advertising Costs. The Company expenses all advertising costs as incurred. Advertising costs were $ 11.3 million and $ 35.1 million for the three and nine months ended September 30, 2025, respectively, and $ 13.0 million and $ 40.8 million for the three and nine months ended September 30, 2024, respectively. 8 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Income from Investments Held in Employee Deferred Compensation Trusts . Under the Company’s employee deferred compensation plans, employees direct the investment of their account balances, and the Company invests amounts held in the associated investment trusts consistent with these directions. As realized and unrealized investment gains and losses occur, the Company’s employee deferred compensation plan obligations change and adjustments are recorded in selling, general and administrative expenses or, in the case of Protiviti, costs of services. The value of the related investment trust assets also changes by an equal and offsetting amount, leaving no net cost to the Company, and therefore no effect on reported net income. The Company’s income from investments held in employee deferred compensation trusts consists of unrealized and realized gains and losses, and dividend income from trust investments and is presented separately on the Condensed Consolidated Statements of Operations. The following table presents the Company’s income from investments held in employee deferred compensation trusts (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Dividend income $ ( 2,679 ) $ ( 3,007 ) $ ( 7,674 ) $ ( 7,705 ) Realized and unrealized gains ( 44,942 ) ( 26,223 ) ( 77,430 ) ( 80,634 ) Income from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses) $ ( 47,621 ) $ ( 29,230 ) $ ( 85,104 ) $ ( 88,339 ) The following table presents the Company’s increase in employee deferred compensation costs and expense related to changes in the fair value of trust assets for its nonqualified employee deferred compensation plans (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Increase in employee deferred compensation costs and expense related to changes in the fair value of trust assets $ 47,621 $ 29,230 $ 85,104 $ 88,339 Comprehensive Income (Loss). Comprehensive income (loss) includes net income and certain other items that are recorded directly to stockholders’ equity. The Company’s only sources of other comprehensive income (loss) are foreign currency translation and foreign defined benefit plan adjustments. Fair Value of Financial Instruments. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market to measure fair value, summarized as follows: Level 1: Observable inputs for identical assets or liabilities, such as quoted prices in active markets Level 2: Inputs other than the quoted prices in active markets that are observable either directly or indirectly Level 3: Unobservable inputs in which there is little or no market data, which requires management’s best estimates and assumptions that market participants would use in pricing the asset or liability The carrying value of cash and cash equivalents, net accounts receivable, and accounts payable and accrued expenses approximates fair value because of their short-term nature. The Company holds mutual funds and money market funds to satisfy its obligations under its employee deferred compensation plans which are carried at fair value based on quoted market prices in active markets for identical assets (Level 1). 9 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 The following tables summarize the Company’s financial instruments by significant category and fair value measurement on a recurring basis (in thousands): Fair Value Measurements Using Balance at September 30, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 154,612 $ 154,612 — — Employee deferred compensation trust assets Money market funds $ 144,549 $ 144,549 — — Mutual funds - bonds 41,974 41,974 — — Mutual funds - stocks 443,823 443,823 — — Mutual funds - blend 130,815 130,815 — — Total employee deferred compensation trust assets $ 761,161 $ 761,161 — — Fair Value Measurements Using Balance at December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents Money market funds $ 293,990 $ 293,990 — — Employee deferred compensation trust assets Money market funds $ 125,112 $ 125,112 — — Mutual funds - bonds 38,705 38,705 — — Mutual funds - stocks 401,751 401,751 — — Mutual funds - blend 107,672 107,672 — — Total employee deferred compensation trust assets $ 673,240 $ 673,240 — — Certain items, such as goodwill and other intangible assets, are recognized or disclosed at fair value on a nonrecurring basis. The Company determines the fair value of these items using Level 3 inputs. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions. Allowance for Credit Losses. The Company is exposed to credit losses resulting from the inability of its customers to make required payments. The Company establishes an allowance for these potential credit losses based on its review of customers’ credit profiles, historical loss statistics, prepayments, recoveries, age of customer receivable balances, current business conditions and macroeconomic trends. The Company considers risk characteristics of trade receivables based on asset type and geographical locations to evaluate trade receivables on a collective basis. The Company applies credit loss estimates to these pooled receivables to determine expected credit losses. 10 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 The following table sets forth the activity in the allowance for credit losses from December 31, 2024, through September 30, 2025 (in thousands): Allowance for Credit Losses Balance as of December 31, 2024 $ 21,961 Charges to expense 3,800 Deductions ( 4,645 ) Other, including foreign currency translation adjustments 1,246 Balance as of September 30, 2025 $ 22,362 Note B— New Accounting Pronouncements Recently Adopted Accounting Pronouncements None Recently Issued Accounting Pronouncements Not Yet Adopted Income Tax Disclosures . In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Under this ASU, public filers must disclose annually (1) specific categories in the rate reconciliation, and (2) provide additional information for reconciling items that meet a quantitative threshold, if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate. The new guidance is effective for public filers for annual periods beginning after December 15, 2024. The Company has concluded its evaluation of the newly issued guidance and anticipates changes to its income tax disclosures in its 2025 Form 10-K annual filing. However, it does not expect any effect on its operating results, cash flows, or financial position. Income Statement Disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement, Reporting Comprehensive Income, Expense Disaggregation Disclosures (Subtopic 220-40). This ASU requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the notes to the financial statements. This guidance is effective for public filers for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. Financial Instruments Credit Losses Disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments, Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. All entities with this practical expedient are to assume that current conditions as of the balance sheet date do not change for the remaining life of the assets. This guidance is effective for annual periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements and related disclosures. Internal-Use Software Disclosures. In September 2025, the FASB issued ASU No. 2025-06, Intangibles, Goodwill and Other, Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this ASU will remove all references to software development project stages so that the guidance is neutral to different software development methods. Under the new standard, entities will start capitalizing eligible costs when (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated financial statements and related disclosures. 11 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Note C— Revenue Recognition The Company derives its revenues from three segments: contract talent solutions, permanent placement talent solutions, and Protiviti. Revenues are recognized when promised goods or services are delivered to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Service revenues, as presented on the Condensed Consolidated Statements of Operations, represent services rendered to customers less variable consideration, such as sales adjustments and allowances. Reimbursements, including those related to travel and out-of-pocket expenses, are also included in service revenues, and equivalent amounts of reimbursable expenses are included in costs of services. Contract talent solutions revenues. Contract talent solutions revenues from contracts with customers are recognized in the amount to which the Company has a right to invoice when the services are rendered by the Company’s engagement professionals. The substantial majority of engagement professionals placed on assignment by the Company are the Company’s legal employees while they are working on assignments. The Company pays all related costs of employment, including workers’ compensation insurance, state and federal unemployment taxes, social security, and certain fringe benefits. The Company assumes the risk of acceptability of its employees to its customers. The Company records contract talent solutions revenue on a gross basis as a principal versus on a net basis as an agent in the presentation of revenues and expenses. The Company has concluded that gross reporting is appropriate because the Company (i) has the risk of identifying and hiring qualified employees, (ii) has the discretion to select the employees and establish their price and duties, and (iii) bears the risk for services that are not fully paid for by customers. Fees paid to time management or vendor management service providers selected by clients are recorded as a reduction of revenues, as the Company is not the primary obligor with respect to those services. Permanent placement talent solutions revenues. Permanent placement talent solutions revenues from contracts with customers are primarily recognized when employment candidates accept offers of permanent employment. The Company has a substantial history of estimating the financial impact of permanent placement talent solutions candidates who do not remain with its clients through the 90 -day guarantee period. These amounts are established based primarily on historical data and are recorded as liabilities. Fees to clients are generally calculated as a percentage of the new employee’s annual compensation. No fees for permanent placement talent solutions services are charged to employment candidates. Protiviti revenues. Protiviti’s consulting services are generally provided on a time-and-material basis, fixed-fee basis, or unit basis. Revenues earned under time-and-material arrangements and fixed-fee arrangements are recognized using a proportional performance method. Revenue is measured using cost incurred relative to total estimated cost for the engagement to measure progress towards satisfying the Company’s performance obligations. Cost incurred represents work performed and thereby best depicts the transfer of control to the customer. Protiviti’s consulting services generally contain one or more performance obligation(s) which are satisfied over a period of time. Revenues are recognized over time as the performance obligations are satisfied, because the services provided do not have any alternative use to the Company, and contracts generally include language giving the Company an enforceable right to payment for services provided to date. Unit-based revenues are recognized when the service has transferred to the customer. Revenue is recognized based on unit price multiplied by the number of units delivered and based on specific terms outlined in contracts. The Company periodically evaluates the need to provide for any losses on these projects, and losses are recognized when it is probable that a loss will be incurred. 12 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 The following table presents the Company’s revenues disaggregated by functional specialization and segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Contract talent solutions Finance and accounting $ 553,364 $ 614,131 $ 1,671,923 $ 1,879,221 Administrative and customer support 158,689 178,409 489,907 568,685 Technology 157,851 160,184 468,796 476,053 Elimination of intersegment revenues (a) ( 123,681 ) ( 122,321 ) ( 361,390 ) ( 351,601 ) Total contract talent solutions 746,223 830,403 2,269,236 2,572,358 Permanent placement talent solutions 110,125 123,275 336,929 379,105 Protiviti 498,129 511,326 1,469,962 1,462,002 Total service revenues $ 1,354,477 $ 1,465,004 $ 4,076,127 $ 4,413,465 (a) Service revenues for finance and accounting, administrative and customer support, and technology include intersegment revenues, which represent revenues from services provided to the Company’s Protiviti segment in connection with the Company’s blended business solutions. Intersegment revenues for each functional specialization are aggregated and then eliminated as a single line. Payment terms in the Company’s contracts vary by the type and location of the Company’s customer and the services offered. The term between invoicing and when payment is due is not significant. Contracts with multiple performance obligations are recognized as performance obligations are delivered, and contract value is allocated based on relative stand-alone selling values of the services and products in the arrangement. As of September 30, 2025, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $ 194.7 million. Of this amount, $ 180.6 million is expected to be recognized within the next 12 months. As of September 30, 2024, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $ 187.0 million. Contract liabilities are recorded when cash payments are received or due in advance of performance and are reflected in accounts payable and accrued expenses on the unaudited Condensed Consolidated Statements of Financial Position. The following table sets forth the activity in contract liabilities from December 31, 2024, through September 30, 2025 (in thousands): Contract Liabilities Balance as of December 31, 2024 $ 24,005 Payments in advance of satisfaction of performance obligations 25,319 Revenue recognized ( 33,315 ) Other, including translation adjustments 1,101 Balance as of September 30, 2025 $ 17,110 13 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Note D— Other Current Assets Other current assets consisted of the following (in thousands): September 30, 2025 December 31, 2024 Prepaid expenses $ 67,637 $ 64,185 Unamortized cloud computing implementation costs, current 19,817 28,417 Other 63,900 53,712 Other current assets $ 151,354 $ 146,314 Note E— Property and Equipment, Net Property and equipment consisted of the following (in thousands): September 30, 2025 December 31, 2024 Computer hardware $ 110,555 $ 131,059 Computer software 226,908 224,609 Furniture and equipment 96,782 96,288 Leasehold improvements 203,143 200,565 Property and equipment, cost 637,388 652,521 Accumulated depreciation ( 508,071 ) ( 532,957 ) Property and equipment, net $ 129,317 $ 119,564 Note F— Other Noncurrent Assets Other noncurrent assets consisted of the following (in thousands): September 30, 2025 December 31, 2024 Unamortized cloud computing implementation costs, noncurrent $ 16,812 $ 10,517 Other intangible assets, net 2,356 1,218 Other noncurrent assets $ 19,168 $ 11,735 Note G— Leases The Company has operating leases for corporate and field offices, and certain equipment. The Company’s leases have remaining lease terms of less than one year to 11 years, some of which include options to extend the leases for up to seven years , and some of which include options to terminate the leases within one year . Operating lease expense was $ 19.9 million and $ 59.7 million for the three and nine months ended September 30, 2025, respectively, and $ 20.6 million and $ 62.9 million for the three and nine months ended September 30, 2024, respectively. Supplemental cash flow information related to leases consisted of the following (in thousands): Nine Months Ended September 30, 2025 2024 Cash paid for operating lease liabilities $ 59,229 $ 71,637 Right-of-use assets obtained in exchange for new operating lease liabilities $ 53,048 $ 62,043 14 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Supplemental balance sheet information related to leases consisted of the following: September 30, 2025 December 31, 2024 Weighted average remaining lease term for operating leases 4.6 years 4.6 years Weighted average discount rate for operating leases 4.1 % 3.9 % Future minimum lease payments under noncancelable leases as of September 30, 2025, were as follows (in thousands): 2025 (excluding the nine months ended September 30, 2025) $ 21,209 2026 74,881 2027 54,188 2028 39,869 2029 29,048 Thereafter 48,702 Less: Imputed interest ( 27,117 ) Present value of operating lease liabilities (a) $ 240,780 (a) Includes the current portion of $ 69.7 million for operating leases. As of September 30, 2025, the Company had additional future minimum lease obligations totaling $ 26.3 million under executed operating lease contracts that had not yet commenced. These operating leases include agreements for corporate and field office facilities with lease terms of one year to 10 years. Note H— Goodwill The following table sets forth the activity in goodwill from December 31, 2024 through September 30, 2025 (in thousands): Goodwill Contract talent solutions Permanent placement talent solutions Protiviti Total Balance as of December 31, 2024 $ 133,938 $ 26,063 $ 77,179 $ 237,180 Acquisitions (a) 1,205 235 10,978 12,418 Foreign currency translation adjustments 514 100 1,054 1,668 Balance as of September 30, 2025 $ 135,657 $ 26,398 $ 89,211 $ 251,266 (a) In April 2025, the Company expanded its operations through two acquisitions. These transactions, executed via the Company’s wholly owned subsidiaries, resulted in the recognition of $ 12.4 million in goodwill. 15 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Note I— Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): September 30, 2025 December 31, 2024 Payroll and benefits $ 362,329 $ 330,803 Payroll taxes 15,556 29,513 Workers’ compensation 12,368 12,469 Accrued payroll and benefit costs $ 390,253 $ 372,785 Note J— Employee Deferred Compensation Plan Obligations The Company provides various qualified defined contribution 401(k) plans covering eligible employees. The plans offer a savings feature with the Company matching employee contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. Nonqualified plans are provided for employees on a discretionary basis, including those not eligible for the qualified plans. These plans include provisions for salary deferrals and discretionary contributions. The asset value of the nonqualified plans was $ 761.2 million and $ 673.2 million as of September 30, 2025 and December 31, 2024, respectively. The Company holds these assets to satisfy the Company’s liabilities under its deferred compensation plans. The liability value for the nonqualified plans was $ 751.3 million and $ 678.4 million as of September 30, 2025 and December 31, 2024, respectively. Contribution expenses for the Company’s qualified and nonqualified defined contribution plans were $ 11.1 million and $ 36.4 million for the three and nine months ended September 30, 2025, respectively, and $ 11.8 million and $ 36.6 million for the three and nine months ended September 30, 2024, respectively. The Company has statutory defined contribution plans and defined benefit plans outside the United States of America, which are not material. Note K— Commitments and Contingencies On March 23, 2015, Plaintiff Jessica Gentry, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, San Francisco County, which was subsequently amended on October 23, 2015. The complaint alleges that a putative class of current and former employees of the Company working in California since March 13, 2010, were denied compensation for the time they spent interviewing “for temporary and permanent employment opportunities” as well as performing activities related to the interview process. Gentry seeks recovery on her own behalf and on behalf of the putative class in an unspecified amount for this allegedly unpaid compensation. Gentry also seeks recovery of an unspecified amount for the alleged failure of the Company to provide her and the putative class with accurate wage statements. Gentry also seeks an unspecified amount of other damages, attorneys’ fees and statutory penalties, including penalties for allegedly not paying all wages due upon separation to former employees and statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorneys General Act (“PAGA”). On January 4, 2016, the Court denied a motion by the Company to compel all of Gentry’s claims, except the PAGA claim, to individual arbitration. On March 8, 2024, the Court issued an order certifying: (1) a class of California-based temporary employees who attended at least one uncompensated interview with a third-party client at any time since March 13, 2010; (2) a subclass of class members who held a prior temporary job assignment before interviewing for a subsequent assignment; and (3) a subclass of class members who are no longer employed by the Company (i.e., a “waiting time penalties” subclass). The case is expected to commence trial on November 3, 2025. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. 16 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 On April 6, 2018, Plaintiff Shari Dorff, on her own behalf and on behalf of a putative class of allegedly similarly situated individuals, filed a complaint against the Company in the Superior Court of California, County of Los Angeles. In addition to certain claims individual to Plaintiff Dorff, the complaint alleges that salaried recruiters based in California have been misclassified as exempt employees and seeks an unspecified amount for: unpaid wages resulting from such alleged misclassification; alleged failure to provide a reasonable opportunity to take meal periods and rest breaks; alleged failure to pay wages on a timely basis both during employment and upon separation; alleged failure to comply with California requirements regarding wage statements and record-keeping; and alleged improper denial of expense reimbursement. Plaintiff Dorff also seeks an unspecified amount of other damages, attorneys’ fees and penalties, including but not limited to statutory penalties on behalf of herself and other allegedly “aggrieved employees” as defined by PAGA. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding and, accordingly, no amounts have been provided in the Company’s Financial Statements. The Company believes it has meritorious defenses to the allegations and the Company intends to continue to vigorously defend against the litigation. The Company is involved in a number of other lawsuits arising in the ordinary course of business. While management does not expect any of these other matters to have a material adverse effect on the Company’s results of operations, financial position or cash flows, litigation is subject to certain inherent uncertainties. Legal costs associated with the resolution of claims, lawsuits and other contingencies are expensed as incurred. On May 28, 2025, the Company entered into a $ 100.0 million credit agreement (the “2025 Credit Agreement”) which matures in May 2030. Borrowings under the 2025 Credit Agreement will bear interest in accordance with the terms of the borrowing, which typically will be calculated according to the adjusted term Secured Overnight Financing Rate (“SOFR”), plus an applicable margin. The 2025 Credit Agreement is subject to certain financial covenants, and the Company was in compliance with these covenants as of September 30, 2025. As of September 30, 2025, the Company had no cash borrowings under the 2025 Credit Agreement, and maintained $ 10.1 million in standby letters of credit to satisfy workers’ compensation insurer’s collateral requirements. Note L— Stockholders’ Equity Stock Repurchase Program. As of September 30, 2025, the Company is authorized to repurchase, from time to time, up to 5.6 million additional shares of the Company’s common stock on the open market or in privately negotiated transactions, depending on market conditions. The number and the cost of common stock shares repurchased during the nine months ended September 30, 2025 and 2024, are reflected in the following table (in thousands): Nine Months Ended September 30, 2025 2024 Common stock repurchased (in shares) 1,702 2,460 Common stock repurchased $ 79,590 $ 171,047 17 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of applicable statutory withholding taxes. The number and the cost of employee stock plan repurchases made during the nine months ended September 30, 2025 and 2024, are reflected in the following table (in thousands): Nine Months Ended September 30, 2025 2024 Repurchases related to employee stock plans (in shares) 192 272 Repurchases related to employee stock plans $ 10,953 $ 21,508 The repurchased shares are held in treasury and are presented as if constructively retired. Treasury stock is accounted for using the cost method. Treasury stock activity for the nine months ended September 30, 2025 and 2024, (consisting of purchases of shares for the treasury) is presented in the unaudited Condensed Consolidated Statements of Stockholders’ Equity. Repurchases of shares and issuances of dividends are applied first to the extent of retained earnings and any remaining amounts are applied to additional paid-in capital. Note M— Net Income Per Share The calculation of net income per share for the three and nine months ended September 30, 2025 and 2024, is reflected in the following table (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 42,916 $ 65,451 $ 101,234 $ 197,308 Basic: Weighted average shares 99,897 102,175 100,321 103,034 Diluted: Weighted average shares 99,897 102,175 100,321 103,034 Dilutive effect of potential common shares 144 218 208 337 Diluted weighted average shares 100,041 102,393 100,529 103,371 Net income per share: Basic $ 0.43 $ 0.64 $ 1.01 $ 1.91 Diluted $ 0.43 $ 0.64 $ 1.01 $ 1.91 18 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Note N— Business Segments The Company has three reportable segments: contract talent solutions, permanent placement talent solutions and Protiviti. Operating segments are defined as components of the Company for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), a position currently held by the Company’s Chief Executive Officer, in deciding how to allocate resources and assess performance. The contract talent solutions reportable segment results from the aggregation of three operating segments with similar economic and qualitative characteristics: finance and accounting, administrative and customer support, and technology. The contract talent solutions and permanent placement talent solutions segments provide specialized engagement professionals and full-time personnel, respectively, for finance and accounting, technology, marketing and creative, legal, and administrative and customer support roles. The Protiviti segment provides business and technology risk consulting and internal audit services. The CODM uses segment income to evaluate performance and allocate resources to each segment. Segment income excludes interest income, income taxes and the impacts of the income from investments held in employee deferred compensation trusts, along with the related compensation costs and expenses. The CODM considers variances between actual results and expectations as well as historical trends for segment income when making decisions about allocating capital and personnel resources to each segment. The accounting policies of the segments are set forth in Note A— “ Summary of Significant Accounting Policies. ” The following tables provide a reconciliation of service revenues and segment income by reportable segment to consolidated results (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Contract Talent Solutions 2025 2024 2025 2024 Service revenues (1) $ 746,223 $ 830,403 $ 2,269,236 $ 2,572,358 Segment costs of services (2) 456,102 507,368 1,384,815 1,562,592 Compensation expenses (3) 205,902 218,931 636,778 668,947 Other (4) 67,853 78,260 206,163 226,711 Segment selling, general and administrative expenses 273,755 297,191 842,941 895,658 Segment income $ 16,366 $ 25,844 $ 41,480 $ 114,108 Three Months Ended September 30, Nine Months Ended September 30, Permanent Placement Talent Solutions 2025 2024 2025 2024 Service revenues (1) $ 110,125 $ 123,275 $ 336,929 $ 379,105 Segment costs of services (2) 222 271 614 752 Compensation expenses (3) 83,885 90,450 260,529 277,120 Other (4) 18,407 20,367 56,292 61,043 Segment selling, general and administrative expenses 102,292 110,817 316,821 338,163 Segment income $ 7,611 $ 12,187 $ 19,494 $ 40,190 19 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 Three Months Ended September 30, Nine Months Ended September 30, Protiviti 2025 2024 2025 2024 Service revenues (1) $ 498,129 $ 511,326 $ 1,469,962 $ 1,462,002 Segment costs of services (2) 383,502 379,619 1,158,766 1,121,312 Compensation expenses (3) 24,534 22,895 74,313 70,277 Other (4) 52,861 57,048 158,743 159,366 Segment selling, general and administrative expenses 77,395 79,943 233,056 229,643 Segment income $ 37,232 $ 51,764 $ 78,140 $ 111,047 Three Months Ended September 30, Nine Months Ended September 30, Combined Segment 2025 2024 2025 2024 Service revenues (1) $ 1,354,477 $ 1,465,004 $ 4,076,127 $ 4,413,465 Costs of services (2) 839,826 887,258 2,544,195 2,684,656 Compensation expenses (3) 314,321 332,276 971,620 1,016,344 Other (4) 139,121 155,675 421,198 447,120 Selling, general and administrative expenses 453,442 487,951 1,392,818 1,463,464 Combined segment income 61,209 89,795 139,114 265,345 Interest income, net ( 2,510 ) ( 5,391 ) ( 8,321 ) ( 16,990 ) Income before income taxes $ 63,719 $ 95,186 $ 147,435 $ 282,335 (1) Service revenues presented above are shown net of eliminations of intersegment revenues. Intersegment revenues between the contract talent solutions segment and the Protiviti segment were $ 123.7 million and $ 361.4 million for the three and nine months ended September 30, 2025, respectively, and $ 122.3 million and $ 351.6 million for the three and nine months ended September 30, 2024, respectively. Service revenues related to the intersegment activity are reflected in the Protiviti segment. (2) Segment costs of services consist of direct payroll, payroll taxes and benefit costs, as well as reimbursable expenses. Direct costs related to the intersegment activity are reflected in the Protiviti segment, including the costs of candidate payroll, fringe benefits and incremental recruiter compensation. For further information on costs of services, see Note A—“Summary of Significant Accounting Policies.” (3) Includes payroll and applicable taxes, employee incentive compensation and other employee costs not included in direct costs as noted above. (4) Other selling, general and administrative expenses is comprised of advertising, as well as other allocated expenses including lease expense, depreciation, cloud computing service costs and overhead costs. These costs are allocated to the individual segments based on an internal allocation method. 20 ROBERT HALF INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)—(Continued) September 30, 2025 The following table represents depreciation expense by segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Depreciation expense Contract talent solutions $ 5,921 $ 6,559 $ 18,638 $ 19,516 Permanent placement talent solutions 1,987 2,146 6,128 6,417 Protiviti 4,377 4,488 13,127 12,780 $ 12,285 $ 13,193 $ 37,893 $ 38,713 Note O— Subsequent Events On October 30, 2025, the Company announced the following: Quarterly dividend per share $ 0.59 Declaration date October 30, 2025 Record date November 25, 2025 Payment date December 15, 2025 21