ROBERT HALF INC. 10-K

Item 8. Financial Statements and Supplementary Data ROBERT HALF INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands, except share amounts) December 31, 2025 2024 ASSETS Cash and cash equivalents $ 464,435 $ 537,583 Accounts receivable, net 748,457 772,285 Employee deferred compensation trust assets 773,938 673,240 Other current assets 132,192 146,314 Total current assets 2,119,022 2,129,422 Property and equipment, net 128,814 119,564 Right-of-use assets 203,050 198,384 Goodwill 251,469 237,180 Noncurrent deferred income taxes 134,317 158,120 Other noncurrent assets 19,604 11,735 Total assets $ 2,856,276 $ 2,854,405 LIABILITIES Accounts payable and accrued expenses $ 159,418 $ 166,955 Accrued payroll and benefit costs 382,020 372,785 Employee deferred compensation plan obligations 771,630 678,403 Income taxes payable 1,644 2,977 Current operating lease liabilities 69,794 64,619 Total current liabilities 1,384,506 1,285,739 Noncurrent operating lease liabilities 175,744 168,900 Other noncurrent liabilities 20,169 21,763 Total liabilities 1,580,419 1,476,402 Commitments and Contingencies (Note L) 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 101,140,684 and 102,199,470 shares 101 102 Additional paid-in capital 1,304,939 1,418,150 Accumulated other comprehensive loss ( 29,183 ) ( 65,138 ) Retained earnings — 24,889 Total stockholders’ equity 1,275,857 1,378,003 Total liabilities and stockholders’ equity $ 2,856,276 $ 2,854,405 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 31 ROBERT HALF INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 Service revenues $ 5,378,506 $ 5,795,837 $ 6,392,517 Costs of services 3,376,193 3,548,607 3,817,513 Gross margin 2,002,313 2,247,230 2,575,004 Selling, general and administrative expenses 1,925,852 2,005,756 2,110,414 Operating income 76,461 241,474 464,590 Income from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses - Note A) ( 106,092 ) ( 94,079 ) ( 88,020 ) Interest income, net ( 11,799 ) ( 22,118 ) ( 23,973 ) Income before income taxes 194,352 357,671 576,583 Provision for income taxes 61,362 106,073 165,437 Net income $ 132,990 $ 251,598 $ 411,146 Net income per share: Basic $ 1.33 $ 2.45 $ 3.90 Diluted $ 1.33 $ 2.44 $ 3.88 Weighted average shares: Basic 100,116 102,661 105,530 Diluted 100,312 103,028 106,074 Dividends declared per share $ 2.36 $ 2.12 $ 1.92 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 32 ROBERT HALF INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Year Ended December 31, 2025 2024 2023 COMPREHENSIVE INCOME (LOSS): Net income $ 132,990 $ 251,598 $ 411,146 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax 32,958 ( 32,910 ) 11,184 Foreign defined benefit plan adjustments, net of tax 2,997 398 ( 187 ) Total other comprehensive income (loss) 35,955 ( 32,512 ) 10,997 Total comprehensive income (loss) $ 168,945 $ 219,086 $ 422,143 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 33 ROBERT HALF INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (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, 2022 107,698 $ 108 $ 1,293,565 $ ( 43,623 ) $ 318,508 $ 1,568,558 Net income — — — — 411,146 411,146 Other comprehensive income (loss) — — — 10,997 — 10,997 Dividends declared ($ 1.92 per share) — — — — ( 206,043 ) ( 206,043 ) Net issuances of restricted stock 889 1 ( 1 ) — — — Stock-based compensation — — 61,139 — — 61,139 Repurchases of common stock ( 3,378 ) ( 4 ) — — ( 257,442 ) ( 257,446 ) Balance at December 31, 2023 105,209 $ 105 $ 1,354,703 $ ( 32,626 ) $ 266,169 $ 1,588,351 Net income — — — — 251,598 251,598 Other comprehensive income (loss) — — — ( 32,512 ) — ( 32,512 ) Dividends declared ($ 2.12 per share) — — — — ( 221,051 ) ( 221,051 ) Net issuances of restricted stock 794 1 ( 1 ) — — — Stock-based compensation — — 63,448 — — 63,448 Repurchases of common stock ( 3,804 ) ( 4 ) — — ( 271,827 ) ( 271,831 ) Balance at December 31, 2024 102,199 $ 102 $ 1,418,150 $ ( 65,138 ) $ 24,889 $ 1,378,003 Net income — — — — 132,990 132,990 Other comprehensive income (loss) — — — 35,955 — 35,955 Dividends declared ($ 2.36 per share) — — ( 164,721 ) — ( 75,220 ) ( 239,941 ) Net issuances of restricted stock 837 1 ( 1 ) — — — Stock-based compensation — — 59,416 — — 59,416 Repurchases of common stock ( 1,895 ) ( 2 ) ( 7,905 ) — ( 82,659 ) ( 90,566 ) Balance at December 31, 2025 101,141 $ 101 $ 1,304,939 $ ( 29,183 ) $ — $ 1,275,857 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 34 ROBERT HALF INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 132,990 $ 251,598 $ 411,146 Adjustments to reconcile net income to net cash provided by operating activities: Allowance for credit losses 3,151 5,286 8,752 Depreciation 50,031 52,053 51,364 Amortization of cloud computing implementation costs 29,722 36,045 44,720 Amortization of intangible assets 1,873 1,217 2,883 Realized and unrealized gains from investments held in employee deferred compensation trusts ( 78,871 ) ( 71,656 ) ( 72,971 ) Stock-based compensation 59,416 63,448 61,139 Deferred income taxes 22,847 ( 17,936 ) ( 16,568 ) Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable 45,797 66,954 156,269 Capitalized cloud computing implementation costs ( 28,522 ) ( 29,210 ) ( 34,895 ) Accounts payable and accrued expenses ( 15,220 ) 16,047 ( 14,698 ) Accrued payroll and benefit cost ( 1,829 ) ( 32,963 ) ( 61,725 ) Employee deferred compensation plan obligations 93,227 105,490 98,802 Income taxes payable ( 1,394 ) ( 20,960 ) 10,721 Other assets and liabilities, net 6,747 ( 14,944 ) ( 8,058 ) Net cash flows provided by operating activities 319,965 410,469 636,881 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ( 53,155 ) ( 56,318 ) ( 45,874 ) Investments in employee deferred compensation trusts ( 80,078 ) ( 69,237 ) ( 102,969 ) Proceeds from employee deferred compensation trust redemptions 58,251 38,700 37,628 Payments for acquisitions, net of cash acquired ( 10,722 ) ( 264 ) ( 1,035 ) Net cash flows used in investing activities ( 85,704 ) ( 87,119 ) ( 112,250 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchases of common stock ( 92,093 ) ( 276,032 ) ( 254,625 ) Dividends paid ( 238,220 ) ( 220,409 ) ( 205,910 ) Net cash flows used in financing activities ( 330,313 ) ( 496,441 ) ( 460,535 ) Effect of exchange rate fluctuations 22,904 ( 21,066 ) 9,018 Change in cash and cash equivalents ( 73,148 ) ( 194,157 ) 73,114 Cash and cash equivalents at beginning of period 537,583 731,740 658,626 Cash and cash equivalents at end of period $ 464,435 $ 537,583 $ 731,740 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the year for: Interest $ 225 $ 272 $ 315 Income taxes, net of refunds $ 41,633 $ 143,615 $ 168,488 Non-cash items: Repurchases of common stock awaiting settlement $ — $ — $ 4,394 Fund exchanges within employee deferred compensation trusts $ 173,845 $ 130,997 $ 114,821 Contingent consideration related to acquisition $ 2,685 $ — $ 350 The accompanying Notes to Consolidated Financial Statements are an integral part of these financial statements. 35 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 Consolidated Financial Statements (“Financial Statements”) of the Company are prepared in conformity with accounting principles generally accepted (“GAAP”) in the United States of America (“U.S.”) and the rules of the Securities and Exchange Commission (“SEC”). Certain reclassifications have been made to prior years’ consolidated financial statements to conform to the 2024 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 December 31, 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—“Revenue Recognition” 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 $ 46.1 million, $ 53.9 million and $ 54.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. 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 Consolidated Statements of Operations. 36 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table presents the Company’s income from investments held in employee deferred compensation trusts (in thousands): Year Ended December 31, 2025 2024 2023 Dividend income $ ( 27,221 ) $ ( 22,423 ) $ ( 15,049 ) Realized and unrealized gains ( 78,871 ) ( 71,656 ) ( 72,971 ) Income from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses) $ ( 106,092 ) $ ( 94,079 ) $ ( 88,020 ) 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): Year Ended December 31, 2025 2024 2023 Increase in employee deferred compensation costs and expense related to changes in the fair value of trust assets $ 106,092 $ 94,079 $ 88,020 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. Cash and Cash Equivalents. The Company considers all highly liquid investments with a maturity at the date of purchase of three months or less as cash equivalents. This includes money market funds that meet the requirements to be treated as cash equivalents. However, money market funds held in investment trusts that are being used as investments to satisfy the Company’s obligations under its employee deferred compensation plans are treated as investments and are included in employee deferred compensation trust assets on the Consolidated Statements of Financial Position. 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). 37 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table summarizes the Company’s financial instruments by significant category and fair value measurement on a recurring basis (in thousands): Fair Value Measurements Using Balance at December 31, 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 $ 276,809 $ 276,809 — — Employee deferred compensation trust assets Money market funds $ 141,760 $ 141,760 — — Mutual funds - bonds 44,496 44,496 — — Mutual funds - stocks 453,065 453,065 — — Mutual funds - blend 134,617 134,617 — — Total employee deferred compensation trust assets $ 773,938 $ 773,938 — — 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 non-recurring 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. 38 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table sets forth the activity in the allowance for credit losses from December 31, 2023, through December 31, 2025 (in thousands): Allowance for Credit Losses Balance as of December 31, 2023 $ 25,189 Charges to expense 5,286 Deductions ( 8,009 ) Other, including translation adjustments ( 505 ) Balance as of December 31, 2024 $ 21,961 Charges to expense 3,151 Deductions ( 6,972 ) Other, including translation adjustments 1,275 Balance as of December 31, 2025 $ 19,415 Property and Equipment . Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following useful lives: Computer hardware 2 to 3 years Computer software 2 to 5 years Furniture and equipment 3 to 5 years Leasehold improvements Term of lease Internal-use Software. The Company develops and implements software for internal use to enhance the performance and capabilities of the operating technology infrastructure. Direct costs incurred for the development of internal-use software are capitalized from the time when the completion of the internal-use software is considered probable until the software is ready for use. All other preliminary and planning stage costs are expensed as incurred. Cloud computing implementation costs incurred in hosting arrangements are capitalized and reported as a component of other current assets and other noncurrent assets, while all other capitalized internal-use software development costs are reported as a component of computer software within property and equipment on the Consolidated Statements of Financial Position. Capitalized software costs are amortized using the straight-line method over the estimated useful life of the software, ranging from two to five years . Leases. The Company determines if a contractual arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and noncurrent operating lease liabilities on the Consolidated Statements of Financial Position. The Company does not currently have finance leases. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the possession date (generally, this is the commencement date) of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed lease payments and fixed management fees. The operating lease ROU assets include any payments made before the commencement date and exclude lease incentives. As most of the Company’s leases do not provide an implicit rate, the Company estimates its collateralized incremental borrowing rate, based on information available at the commencement date, in determining the present value of lease payments. The Company applies the portfolio approach in applying discount rates to its classes of leases. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not have any subleases. The Company does not currently have residual value guarantees or restrictive covenants in its leases. The Company has contracts with lease and non-lease components, which are accounted for on a combined basis. 39 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Goodwill and Intangible Assets . Goodwill and intangible assets primarily consist of the cost of acquired companies in excess of the fair market value of their net tangible assets at the date of acquisition. Identifiable intangible assets are amortized over their lives, typically ranging from two to five years . Goodwill is not amortized, but is tested at least annually for impairment. The Company completed its annual goodwill impairment assessment during the second quarter in each of the years ended December 31, 2025, 2024 and 2023, and determined that no adjustment to the carrying value of goodwill was required. There were no events or changes in circumstances during the six months ended December 31, 2025, that caused the Company to perform an interim impairment assessment. Income Taxes . The Company’s operations are subject to U.S. federal, state, local and foreign income taxes. In establishing its deferred income tax assets and liabilities and its provision for income taxes, the Company makes judgments and interpretations based on the enacted tax laws that are applicable to its operations in various jurisdictions. Deferred tax assets and liabilities are measured and recorded using current enacted tax rates, which the Company expects will apply to taxable income in the years in which those temporary differences are recovered or settled. The likelihood of a material change in the Company’s expected realization of its deferred tax assets is dependent on future taxable income and the effectiveness of its tax planning strategies in the various relevant jurisdictions. The Company also evaluates the need for valuation allowances to reduce the deferred tax assets to realizable amounts. Management evaluates all positive and negative evidence and uses judgment regarding past and future events, including operating results, to help determine when it is more likely than not that all or some portion of the deferred tax assets may not be realized. When appropriate, a valuation allowance is recorded against deferred tax assets to offset future tax benefits that may not be realized. Valuation allowances of $ 33.2 million and $ 26.4 million were recorded as of December 31, 2025, and 2024, respectively. The valuation allowances recorded related primarily to net operating losses in certain international operations. If such losses are ultimately utilized to offset future segment income, the Company will recognize a tax benefit up to the full amount of the valuation reserve. Previously, the Organization of Economic Cooperation and Development (“OECD”), an international association of many countries including the U.S., introduced a framework to impose a 15% global minimum corporate tax, referred to as Pillar Two, effective for tax years beginning in 2024. On January 5, 2026, the OECD released new guidance establishing the Side-by-Side (“SbS”) program under the Pillar Two global minimum tax framework. The SbS program includes a Simplified Effective Tax Rate Safe Harbor, an extended Transitional Country-by-Country Reporting Safe Harbor, and a Substance-based Tax Incentive Safe Harbor. The Company does not expect the SbS guidance to materially affect its tax obligations and will continue to monitor global implementation. Workers ’ Compensation . Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $ 0.5 million per occurrence in workers’ compensation claims. Workers’ compensation includes the ongoing medical and indemnity costs for claims filed, which may be paid over numerous years following the date of injury. Claims in excess of $ 0.5 million are insured. Workers’ compensation expense includes the insurance premiums for claims in excess of $ 0.5 million, claims administration fees charged by the Company’s workers’ compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Company’s liability for incurred but not reported (“IBNR”) claims and for the ongoing development of existing claims. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period include estimates. The Company has established reserves for workers’ compensation claims using loss development rates which are estimated using periodic third-party actuarial valuations based upon historical loss statistics, which include the Company’s historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. Accrued Medical Expenses. The Company offers several medical plans to its employees and retains the economic burden for the first $ 1.0 million per claimant per year in medical claims. Claims in excess of $ 1.0 million per year per claimant are insured. Medical expense includes the insurance premiums for claims in excess of $ 1.0 million, claims administration fees, prescription fees and reimbursements, and an estimate for the Company’s liability for IBNR claims and for the ongoing development of existing claims. Medical expenses are presented as a component of selling, general and administrative expenses, or in the case of Protiviti, costs of services in the Consolidated Statements of Operations. The reserves for IBNR claims and for the ongoing development of existing claims in each reporting period include estimates. The Company has established reserves for medical claims using rates which are estimated using periodic third-party actuarial valuations based upon historical loss statistics which include the Company’s historical claims data, and an estimate of 40 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) future claim trends. While management believes that its assumptions and estimates are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the Company’s future results. Foreign Currency Translation. The reporting currency of the Company and its subsidiaries is the U.S. dollar. The functional currency of the Company’s international subsidiaries is their local currency. The results of operations of the Company’s international subsidiaries are translated at the monthly average exchange rates prevailing during the period. The financial position of the Company’s international subsidiaries is translated at the current exchange rates at the end of the period, and the related translation adjustments are recorded as a component of accumulated other comprehensive loss within Stockholders’ Equity. Gains and losses resulting from foreign currency transactions are included as a component of selling, general and administrative expenses in the Consolidated Statements of Operations and have not been material for all periods presented. Stock-based Compensation . Under various stock plans, officers, employees, and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. The Company recognizes compensation expense equal to the grant-date fair value for all stock-based payment awards that are expected to vest. This expense is recorded on a straight-line basis over the requisite service period of the entire award. The Company determines the grant-date fair value of its restricted stock and stock unit awards using the fair market value of its stock on the grant date, unless the awards are subject to market conditions, in which case the Company utilizes an option-pricing model (i.e., Monte Carlo simulation model). The Monte Carlo simulation model utilizes multiple input variables to determine the stock-based compensation fair value. No stock appreciation rights have been granted under the Company’s existing stock plans. The Company has not granted any options to purchase common stock since 2006. Note B—New Accounting Pronouncements Recently Adopted Accounting Pronouncements Income Tax Disclosures . In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 adopted the new guidance for the 2025 Form 10-K annual filing retrospectively, resulting in additional disclosures to the Company’s income tax footnote. The impact of the adoption did not effect the Company’s operating results, cash flows, or financial position. Recently Issued Accounting Pronouncements Not Yet Adopted 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 Accounting Standards Codification 606, Revenue from Contracts with Customers. 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. The Company has evaluated the impact of the new guidance and determined that the adoption of this standard will not have a material impact on the Company’s consolidated financial statements and related disclosures. 41 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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. 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 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 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. 42 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table presents the Company’s revenues disaggregated by functional specialization and segments (in thousands): Year Ended December 31, 2025 2024 2023 Contract talent solutions Finance and accounting $ 2,207,152 $ 2,454,119 $ 2,811,093 Administration and customer support 642,939 741,468 816,409 Technology 625,179 634,062 710,156 Elimination of intersegment revenues (a) ( 485,187 ) ( 471,777 ) ( 442,326 ) Total contract talent solutions 2,990,083 3,357,872 3,895,332 Permanent placement talent solutions 439,500 487,204 567,486 Protiviti 1,948,923 1,950,761 1,929,699 Total service revenues $ 5,378,506 $ 5,795,837 $ 6,392,517 (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 December 31, 2025, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $ 172.0 million. Of this amount, $ 160.2 million is expected to be recognized within the next 12 months. As of December 31, 2024, aggregate transaction price allocated to the performance obligations that were unsatisfied for contracts with an expected duration of greater than one year was $ 180.1 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 Consolidated Statements of Financial Position. The following table sets forth the activity in contract liabilities from December 31, 2023, through December 31, 2025 (in thousands): Contract Liabilities Balance as of December 31, 2023 $ 24,574 Payments in advance of satisfaction of performance obligations 44,138 Revenue recognized ( 44,086 ) Other, including translation adjustments ( 621 ) Balance as of December 31, 2024 $ 24,005 Payments in advance of satisfaction of performance obligations 40,677 Revenue recognized ( 43,838 ) Other, including translation adjustments 1,093 Balance as of December 31, 2025 $ 21,937 43 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note D—Other Current Assets Other current assets consisted of the following (in thousands): December 31, 2025 2024 Prepaid expenses $ 55,899 $ 64,185 Unamortized cloud computing implementation costs 19,826 28,417 Other 56,467 53,712 Other current assets $ 132,192 $ 146,314 Note E—Property and Equipment, Net Property and equipment consisted of the following (in thousands): December 31, 2025 2024 Computer hardware $ 107,138 $ 131,059 Computer software 229,595 224,609 Furniture and equipment 95,028 96,288 Leasehold improvements 205,603 200,565 Property and equipment, cost 637,364 652,521 Accumulated depreciation ( 508,550 ) ( 532,957 ) Property and equipment, net $ 128,814 $ 119,564 Note F—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 $ 79.1 million, $ 82.5 million and $ 89.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. Supplemental cash flow information related to leases consisted of the following (in thousands): Year Ended December 31, 2025 2024 2023 Cash paid for operating lease liabilities $ 79,915 $ 91,143 $ 94,633 Right-of-use assets obtained in exchange for new operating lease liabilities $ 75,613 $ 78,613 $ 91,762 Supplemental balance sheet information related to leases consisted of the following: Year Ended December 31, 2025 2024 2023 Weighted average remaining lease term for operating leases 4.6 years 4.6 years 4.3 years Weighted average discount rate for operating leases 4.2 % 3.9 % 3.2 % 44 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Future minimum lease payments under noncancelable leases as of December 31, 2025, were as follows (in thousands): 2026 $ 79,286 2027 59,736 2028 44,995 2029 32,942 2030 22,317 Thereafter 34,217 Less: Imputed interest ( 27,955 ) Present value of operating lease liabilities (a) $ 245,538 (a) Includes current portion of $ 69.8 million for operating leases. As of December 31, 2025, the Company had additional future minimum lease obligations totaling $ 73.0 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 three years to 11 years. Note G—Goodwill The following table sets forth the activity in goodwill from December 31, 2023, through December 31, 2025 (in thousands): Goodwill Contract talent solutions Permanent placement talent solutions Protiviti Total Balance as of December 31, 2023 $ 134,287 $ 26,131 $ 77,552 $ 237,970 Foreign currency translation adjustments ( 349 ) ( 68 ) ( 373 ) ( 790 ) 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 555 108 1,208 1,871 Balance as of December 31, 2025 $ 135,698 $ 26,406 $ 89,365 $ 251,469 (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. Note H—Other Noncurrent Assets Other noncurrent assets consisted of the following (in thousands): December 31, 2025 2024 Unamortized cloud computing implementation costs, noncurrent $ 17,764 $ 10,517 Other intangible assets, net 1,840 1,218 Other noncurrent assets $ 19,604 $ 11,735 45 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note I—Accrued Payroll and Benefit Costs Accrued payroll and benefit costs consisted of the following (in thousands): December 31, 2025 2024 Payroll and benefits $ 333,270 $ 330,803 Payroll taxes 36,366 29,513 Workers’ compensation 12,384 12,469 Accrued payroll and benefit costs $ 382,020 $ 372,785 Note J—Employee Deferred Compensation Plans 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 $ 773.9 million and $ 673.2 million as of December 31, 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 $ 771.6 million and $ 678.4 million as of December 31, 2025, and December 31, 2024, respectively. Contribution expenses for the Company’s qualified and nonqualified defined contribution plans were $ 47.0 million, $ 46.6 million and $ 42.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company has statutory defined contribution plans and defined benefit plans outside the United States of America, which are not material. Note K—Income Taxes The provision for income taxes for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): Year Ended December 31, 2025 2024 2023 Current: Federal $ 15,402 $ 76,083 $ 108,825 State 7,884 28,090 38,365 Foreign 14,080 20,400 34,885 Deferred: Federal 21,264 ( 10,674 ) ( 12,276 ) State 7,087 ( 3,838 ) ( 3,990 ) Foreign ( 4,355 ) ( 3,988 ) ( 372 ) $ 61,362 $ 106,073 $ 165,437 Income before the provision for income taxes for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): Year Ended December 31, 2025 2024 2023 U.S. $ 200,201 $ 332,547 $ 485,291 Foreign ( 5,849 ) 25,124 91,292 $ 194,352 $ 357,671 $ 576,583 46 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The income taxes shown above varied from the statutory federal income tax rates for these periods as follows (in thousands, except for percentages): Year Ended December 31, 2025 2024 2023 $ % $ % $ % U.S. federal statutory tax rate $ 40,814 21.0 % $ 75,111 21.0 % $ 121,082 21.0 % State and local income taxes, net of federal tax effect (a) 11,190 5.8 18,137 5.1 27,354 4.7 Foreign tax effects 9,418 4.9 8,695 2.4 14,039 2.4 Effect of cross-border tax laws Foreign-derived intangible income ( 2,058 ) ( 1.1 ) ( 2,219 ) ( 0.6 ) ( 1,628 ) ( 0.3 ) Other ( 1,498 ) ( 0.8 ) ( 1,669 ) ( 0.5 ) ( 254 ) 0.0 Tax credits Work opportunity tax credits ( 4,850 ) ( 2.5 ) ( 4,110 ) ( 1.1 ) ( 5,121 ) ( 0.9 ) Other tax credits ( 500 ) ( 0.2 ) ( 500 ) ( 0.1 ) ( 500 ) ( 0.1 ) Nontaxable or nondeductible items Compensation book/tax differences 4,899 2.5 6,303 1.8 7,734 1.3 Meals & entertainment 3,907 2.0 3,488 1.0 2,791 0.5 Shared based compensation 3,202 1.7 873 0.2 72 0.0 Other 1,250 0.6 1,204 0.3 1,353 0.2 Unrecognized tax benefits ( 3,648 ) ( 1.9 ) ( 2,536 ) ( 0.7 ) ( 826 ) ( 0.1 ) Other adjustments ( 764 ) ( 0.4 ) 3,296 0.9 ( 659 ) 0.0 Effective tax rate $ 61,362 31.6 % $ 106,073 29.7 % $ 165,437 28.7 % (a) In 2025, state taxes in California, New Jersey, Illinois, Minnesota and New York made up the majority (majority is defined as greater than 50 percent) of the tax effect in this category. In 2024, state taxes in California, Illinois, New Jersey, Minnesota, Texas and New York made up the majority of the tax effect in this category. In 2023, state taxes in California, Illinois, New Jersey, New York and Minnesota made up the majority of the tax effect in this category. Income taxes paid, net of refunds, for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): Year Ended December 31, 2025 2024 2023 Federal $ 18,000 $ 83,000 $ 100,000 State 13,227 29,546 29,760 Foreign 10,406 31,069 38,728 Income taxes paid, net of refunds $ 41,633 $ 143,615 $ 168,488 47 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Income taxes paid (net of refunds) exceeded 5 percent of total income tax paid (net of refunds) in the following jurisdictions for the years ended December 31, 2025, 2024 and 2023 (in thousands): Year Ended December 31, 2025 2024 2023 Foreign Germany $ ( 2,140 ) $ 13,579 $ 11,671 Belgium $ 5,145 * * U.S. California $ 2,483 * * * Jurisdiction below the threshold for the period presented. The deferred portion of the tax provision (benefit) for the years ended December 31, 2025, 2024 and 2023, consisted of the following (in thousands): Year Ended December 31, 2025 2024 2023 Accrued expenses, deducted for tax when paid $ ( 22,367 ) $ ( 23,871 ) $ ( 23,456 ) Internal-use software and capitalized costs 24,614 ( 6,677 ) ( 11,054 ) Depreciation 1,005 ( 1,343 ) ( 330 ) Unrealized gains from investments held in employee deferred compensation trusts 24,550 16,578 19,139 Other, net ( 3,806 ) ( 3,187 ) ( 937 ) $ 23,996 $ ( 18,500 ) $ ( 16,638 ) The components of the deferred income tax amounts at December 31, 2025, and 2024, were as follows (in thousands): December 31, 2025 2024 Deferred income tax assets Employee deferred compensation and other benefit obligations $ 212,739 $ 189,407 Credits and net operating loss carryforwards 44,568 31,337 Stock-based compensation 8,327 7,440 Allowance for credit losses 4,328 5,909 Workers’ compensation 2,259 2,467 Operating lease liabilities 43,204 43,230 Other 15,397 17,082 Total deferred income tax assets 330,822 296,872 Deferred income tax liabilities Amortization of intangible assets ( 21,470 ) ( 20,816 ) Property and equipment basis differences ( 26,315 ) ( 757 ) Unrealized gains from investments held in employee deferred compensation trusts ( 68,260 ) ( 43,709 ) Right-of-use assets ( 33,648 ) ( 35,213 ) Other ( 13,616 ) ( 12,230 ) Total deferred income tax liabilities ( 163,309 ) ( 112,725 ) Valuation allowance ( 33,216 ) ( 26,417 ) Total deferred income tax assets, net $ 134,297 $ 157,730 48 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Credits and net operating loss carryforwards include tax-effected net operating losses in foreign countries of $ 42.6 million that expire in 2026 and later, and foreign tax credits of $ 2.0 million that expire in 2030 and later. Valuation allowances of $ 31.2 million have been maintained against net operating loss carryforwards and other deferred items in foreign countries. In addition, a valuation allowance of $ 2.0 million has been maintained against the foreign tax credits. As of December 31, 2025, the Company’s consolidated financial statements provide for any related U.S. tax liability on earnings of international subsidiaries that may be repatriated. The following table reconciles the total amounts of gross unrecognized tax benefits from January 1, 2023, through December 31, 2025 (in thousands): 2025 2024 2023 Balance at beginning of period $ 8,619 $ 11,133 $ 12,260 Gross increases—tax positions in prior years 183 1,085 27 Gross decreases—tax positions in prior years ( 4,299 ) 0 0 Gross increases—tax positions in current year 1,019 902 769 Lapse of statute of limitations ( 3 ) ( 4,501 ) ( 1,923 ) Balance at end of period $ 5,519 $ 8,619 $ 11,133 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $ 5.3 million, $ 8.4 million and $ 11.1 million for 2025, 2024 and 2023, respectively. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The total amount of interest and penalties accrued as of December 31, 2025, is $ 0.9 million, including a $ 0.5 million decrease recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2024, was $ 1.4 million, including a $ 0.3 million increase recorded in income tax expense during the year. The total amount of interest and penalties accrued as of December 31, 2023, was $ 1.0 million, including a $ 0.4 million increase recorded in income tax expense during the year. The Company’s major income tax jurisdictions are the U.S., Australia, Belgium, Brazil, Canada, Germany and the United Kingdom. For U.S. federal income tax, the Company remains subject to examination for 2022 and subsequent years. For major U.S. states, with few exceptions, the Company remains subject to examination for 2020 and subsequent years. Generally, for foreign countries, the Company remains subject to examination for 2018 and subsequent years. The Company concluded its Internal Revenue Service audit for the fiscal year ended December 31, 2021, and no material changes were identified. Note L—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 who resided in California, 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. The class period runs from March 13, 2010, to present. 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 and civil penalties on behalf of herself and other allegedly “aggrieved employees” as defined by California’s Labor Code Private Attorney 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 first phase of the trial in the case on the issue of liability as to the Plaintiff and the class commenced on November 3, 2025. Closing arguments were delivered on January 23, 2026, at which hearing the court requested further legal briefs to be delivered February 13, 2026. The Court is permitting Robert Half to file a motion for decertification. . The timing of a liability ruling is not expected until after a case management conference on March 19, 2026. If the Court’s order on the liability phase finds in favor of Plaintiff on any of her claims, the case will move on to a second phase 49 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) of the trial on the calculation of damages later this year. This phase will have its own discovery and its own separate trial. 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. 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 December 31, 2025. As of December 31, 2025, the Company had no borrowings under the Credit Agreement, and maintained $ 10.1 million in standby letters of credit to satisfy workers’ compensation insurer’s collateral requirements. In connection with entering into the 2025 Credit Agreement, the Company terminated its prior Credit Agreement dated May 11, 2020 (as amended from time to time, the “2020 Credit Agreement”). At the time of termination, the 2020 Credit Agreement provided for up to $ 100 million of borrowings and the Company had no outstanding borrowings. There were no early termination fees associated with the Company’s termination of the 2020 Credit Agreement. There were no borrowings outstanding under the 2020 Credit Agreement as of December 31, 2025. Note M—Stockholders’ Equity Stock Repurchase Program. As of December 31, 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 years ended December 31, 2025, 2024 and 2023, are reflected in the following table (in thousands): Year Ended December 31, 2025 2024 2023 Common stock repurchased (in shares) 1,702 3,507 3,047 Common stock repurchased $ 79,589 $ 248,437 $ 231,578 50 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 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 years ended December 31, 2025, 2024 and 2023, are reflected in the following table (in thousands): Year Ended December 31, 2025 2024 2023 Repurchases related to employee stock plans (in shares) 193 297 331 Repurchases related to employee stock plans $ 10,977 $ 23,394 $ 25,868 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 each of the three years ended December 31, 2025, 2024 and 2023 (consisting of purchase of shares for the treasury) is presented in the Consolidated Statements of Stockholders’ Equity. Dividends. The Company’s Board of Directors may, at their discretion, declare and pay cash dividends upon the shares of the Company’s stock, either out of the Company’s retained earnings or additional paid-in capital. The dividends declared per share were $ 2.36 , $ 2.12 and $ 1.92 during the years ended December 31, 2025, 2024 and 2023, respectively. 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 N—Stock Plans Under various stock plans, officers, employees and outside directors have received or may receive grants of restricted stock, stock units, stock appreciation rights or options to purchase common stock. Grants have been made at the discretion of the Committees of the Board of Directors. Grants generally vest either on a straight-line basis over four years or on a cliff basis over three years . Shares offered under the plan are authorized but unissued shares. Recipients of restricted stock do not pay any cash consideration to the Company for the shares and have the right to vote all shares subject to such grant. Restricted stock grants contain forfeitable rights to dividends. Dividends for these grants are accrued on the dividend payment dates but are not paid until the shares vest, and dividends accrued for shares that ultimately do not vest are forfeited. Recipients of stock units do not pay any cash consideration for the units, do not have the right to vote and do not receive dividends with respect to such units. During the year ended December 31, 2025, the Company granted performance shares to its executives in the form of restricted stock. The shares granted contain (1) a performance condition based on Return on Invested Capital (“ROIC”), and (2) a market condition based on Total Shareholder Return (“TSR”). The ROIC performance condition and the TSR market condition measure the Company’s performance against a peer group. Shares will be delivered at the end of a three-year vesting, TSR and ROIC performance period based on the Company’s actual performance compared to the peer group. The ROIC performance condition is calculated first and has a range of possible outcomes of zero percent ( 0 %) to one-hundred fifty percent ( 150 %). The TSR condition is considered a modifier of the ROIC performance condition. The range for the TSR condition is seventy-five percent ( 75 %) to one-hundred twenty-five percent ( 125 %). The result calculated by multiplying the ROIC percentage by the TSR percentage is used to calculate the actual number of shares earned. The fair value of this award was determined using a Monte Carlo simulation with the following weighted average assumptions: a historical volatility of 28.3 %, a 0 % dividend yield, and a risk-free interest rate of 3.9 %. The historical volatility was based on the most recent 2.8 -year period for the Company and the components of the peer group. The stock price movements have been modeled such that the dividends are incorporated in the returns of each company’s stock, therefore the Monte Carlo simulation reflects a 0 % dividend yield for each stock. The use of a 0 % dividend yield is mathematically equivalent to including the dividends in the calculation of TSR. The risk-free interest rate is equal to the yield, as of the valuation date, of the zero-coupon U.S. Treasury bill that is commensurate with the remaining performance period. Unrecognized compensation cost is expected to be recognized over the next four years . Total unrecognized compensation cost, net of estimated forfeitures, for restricted stock and stock units was $ 79.8 million, $ 90.3 million and $ 93.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. 51 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table reflects activity under all stock plans from December 31, 2022, through December 31, 2025, and the weighted average exercise prices (in thousands, except per share amounts): Non-Executive Officer Time-Based Awards Performance-Based Awards With Market Conditions Number of Shares/ Units Weighted Average Grant Date Fair Value Number of Shares/ Units Weighted Average Grant Date Fair Value Outstanding, December 31, 2022 908 $ 88.74 504 $ 89.84 Granted 612 $ 79.98 357 $ 76.42 Restrictions lapsed ( 389 ) $ 77.98 ( 401 ) $ 66.86 Forfeited ( 32 ) $ 86.85 — — Outstanding, December 31, 2023 1,099 $ 87.72 460 $ 99.47 Granted 533 $ 79.48 320 $ 86.03 Restrictions lapsed ( 424 ) $ 83.72 ( 305 ) $ 88.77 Forfeited ( 32 ) $ 85.09 — — Outstanding, December 31, 2024 1,176 $ 85.50 475 $ 97.29 Granted 661 $ 57.92 280 $ 59.48 Restrictions lapsed ( 404 ) $ 88.16 ( 128 ) $ 136.28 Forfeited ( 66 ) $ 72.46 — — Outstanding, December 31, 2025 1,367 $ 72.02 627 $ 72.38 The total fair value of shares vested was $ 30.2 million, $ 57.3 million and $ 62.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, the total number of available shares to grant under the plans (consisting of either restricted stock, stock units, stock appreciation rights or options to purchase common stock) was approximately 1.8 million. Note O—Net Income Per Share The calculation of net income per share for the years ended December 31, 2025, 2024 and 2023, is reflected in the following table (in thousands, except per share amounts): Year Ended December 31, 2025 2024 2023 Net income $ 132,990 $ 251,598 $ 411,146 Basic: Weighted average shares 100,116 102,661 105,530 Diluted: Weighted average shares 100,116 102,661 105,530 Dilutive effect of potential common shares 196 367 544 Diluted weighted average shares 100,312 103,028 106,074 Net income per share: Basic $ 1.33 $ 2.45 $ 3.90 Diluted $ 1.33 $ 2.44 $ 3.88 Potential common shares include the dilutive effect of unvested performance-based restricted stock, restricted stock which contains forfeitable rights to dividends and stock units. 52 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note P—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): Year Ended December 31, Contract Talent Solutions 2025 2024 2023 Service revenues (1) $ 2,990,083 $ 3,357,872 $ 3,895,332 Segment costs of services (2) 1,823,322 2,041,348 2,346,020 Compensation expenses (3) 842,438 884,121 934,024 Other (4) 275,702 301,885 322,473 Segment selling, general and administrative expenses 1,118,140 1,186,006 1,256,497 Segment income $ 48,621 $ 130,518 $ 292,815 Year Ended December 31, Permanent Placement Talent Solutions 2025 2024 2023 Service revenues (1) $ 439,500 $ 487,204 $ 567,486 Segment costs of services (2) 795 985 1,105 Compensation expenses (3) 342,245 359,205 405,747 Other (4) 74,896 80,962 85,630 Segment selling, general and administrative expenses 417,141 440,167 491,377 Segment income $ 21,564 $ 46,052 $ 75,004 53 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Year Ended December 31, Protiviti 2025 2024 2023 Service revenues (1) $ 1,948,923 $ 1,950,761 $ 1,929,699 Segment costs of services (2) 1,528,314 1,487,511 1,454,127 Compensation expenses (3) 97,943 93,296 88,337 Other (4) 210,298 210,971 202,444 Segment selling, general and administrative expenses 308,241 304,267 290,781 Segment income $ 112,368 $ 158,983 $ 184,791 Year Ended December 31, Combined Segment 2025 2024 2023 Service revenues (1) $ 5,378,506 $ 5,795,837 $ 6,392,517 Costs of services (2) 3,352,431 3,529,844 3,801,252 Compensation expenses (3) 1,282,626 1,336,622 1,428,108 Other (4) 560,896 593,818 610,547 Selling, general and administrative expenses 1,843,522 1,930,440 2,038,655 Combined segment income 182,553 335,553 552,610 Interest income, net ( 11,799 ) ( 22,118 ) ( 23,973 ) Income before income taxes $ 194,352 $ 357,671 $ 576,583 (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 $ 485.2 million, $ 471.8 million and $ 442.3 million for the years ended December 31, 2025, 2024 and 2023, 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. The Company operates internationally, with operations in North America, South America, Europe, Asia and Australia. Revenues have been attributed to geographic location based on the location of the legal entity generating revenues. The following table represents service revenues by geographic location (in thousands): Year Ended December 31, 2025 2024 2023 Service revenues (a) U.S. $ 4,171,327 $ 4,519,506 $ 4,957,163 International (b) 1,207,179 1,276,331 1,435,354 $ 5,378,506 $ 5,795,837 $ 6,392,517 (a) No customer accounted for more than 10% of the Company’s total service revenues in any year presented. (b) No country represented more than 10% of revenues in any year presented. 54 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Assets by reportable segment are not presented, as the Company does not allocate assets to its reportable segments, nor is such information used by the CODM for purposes of assessing performance or allocating resources. The following table represents long-lived assets, net, which includes property, plant and equipment, net, right-of-use assets and noncurrent deferred income taxes, by geographic location (in thousands): December 31, 2025 2024 Long-lived assets, net U.S. $ 343,056 $ 375,936 International 123,125 100,132 $ 466,181 $ 476,068 The following table represents depreciation expense by segment (in thousands): Year Ended December 31, 2025 2024 2023 Depreciation expense Contract talent solutions $ 24,488 $ 26,230 $ 25,803 Permanent placement talent solutions 7,958 8,533 8,786 Protiviti 17,585 17,290 16,775 $ 50,031 $ 52,053 $ 51,364 Note Q—Subsequent Events On February 12, 2026, the Company announced the following: Quarterly dividend per share $ 0.59 Declaration date February 12, 2026 Record date February 25, 2026 Payment date March 13, 2026 55 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Robert Half Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(1), and the financial statement schedule listed in the index appearing under Item 15(a)(2), of Robert Half Inc. and its subsidiaries (the “Company”) (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 56 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition – Protiviti revenue relating to time-and-material and fixed-fee arrangements As described in Note C to the consolidated financial statements, the Company recorded service revenue related to Protiviti of $1.95 billion for the year ended December 31, 2025. Protiviti consulting services are generally provided on a time-and-material basis, fixed-fee basis, or unit basis. Revenues earned under time-and-material and fixed-fee arrangements are recognized using a proportional performance method. Revenue is measured using cost incurred relative to the total estimated cost for the engagement to measure progress towards satisfying the Company’s performance obligations. Protiviti’s consulting services generally contain one or more performance obligation(s) which are satisfied over a period of time. The principal consideration for our determination that performing procedures relating to Protiviti revenue relating to time-and-material and fixed fee arrangements is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process. These procedures also included, among others (i) testing the Protiviti revenue relating to time-and-material and fixed-fee arrangements recognized for a sample of revenue transactions by obtaining and inspecting the contracts, reporting related to actual costs incurred, and support related to expected costs incurred and (ii) on a sample basis, recomputing the revenue recognized based on the proportional performance method. /s/ PricewaterhouseCoopers LLP San Francisco, California February 13, 2026 We have served as the Company’s auditor since 2002. 57 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.