A global talent-solutions and consulting firm, Robert Half places professionals in finance, technology, marketing, legal, and administrative roles, and its Protiviti subsidiary provides risk, compliance, and internal-audit consulting to businesses of all sizes. Founder Bob Half and his wife Maxine started the company in 1948 in New York City as an employment agency for accountants, pioneering specialized staffing. A fun quirk: the name sounds like an accountant joke—and the firm's playful "Half" brand has long been a favorite of accounting humor.
Robert Half swings to a $62.3M operating loss in Q2 2026 as Protiviti margin compression deepens.
Robert Half posted an for the first time in at least five years. fell 2.4% to $1.34 billion and contracted 1.7 points to 35.5%, as a 19.9% drop in Protiviti and cost-reduction charges pushed the 's down to 18.5%. The company is now running at a loss from operations while awaiting a ruling in the Gentry wage-and-hour .
Key takeaways
Reported swung to a $62.3 million loss from a $1.5 million profit a year ago, driven by a 4.8-point drop in to -4.7%.
Protiviti fell 4.9% as a 19.9% decline in was only partly offset by a 15.0% higher average bill rate, reflecting a shift to smaller engagements.
Protiviti's contracted to 18.5% from 22.3% a year earlier, which management attributed to cost-reduction charges and unfavorable staff composition.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue fell 2.4% to $1.34B; adjusted operating income dropped 34.8% to $39M, driven by Protiviti margin compression.
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Total service revenues decreased 2.4% to $1.34B, with Protiviti down 4.9% due to a 19.9% drop in , partially offset by a 15.0% higher average bill rate from a shift to smaller engagements.
Contract talent solutions fell 1.6% on a 2.8% decline in hours worked, while permanent placement revenue rose 2.9% on a 5.5% increase in average fees per placement.
Contract talent solutions declined 1.6% on a 2.8% drop in hours worked, while permanent placement revenue rose 2.9% on a 5.5% increase in average fees per placement.
was a $4 million use of cash in the quarter, compared with a $60 million source a year ago, while the company paid $121 million in dividends and repurchased $6 million in stock.
The Dorff wage-and-hour was denied certification in April 2026; the Gentry liability trial ruling remains pending after arguments closed in January 2026, with no loss accrual recorded.
What changed
The Q1 2026 watch item for Protiviti was to see if pay-rate pressure eased from the 21.6% 2025 level; instead, it fell further to 18.5% in Q2, driven by cost-reduction charges and unfavorable staff composition.
Contract talent solutions decline narrowed to 1.6% from 5.0% in Q1 2026, and hours worked fell only 2.8% versus 7.2% in Q1, suggesting the pace of deterioration is slowing.
The Dorff was denied certification on April 20, 2026, removing one legal overhang that had been flagged across multiple prior filings.
swung to a $4 million use of cash in Q2 after a $112.3 million outflow in Q1, leaving the company with $324.7 million in cash and no borrowings.
What to watch
The Gentry liability trial ruling, expected after March 2026, and whether any loss accrual is recorded in Q3 2026.
Protiviti in Q3 2026 to see if the 18.5% level stabilizes or if cost-reduction charges and staff composition pressure persist.
Q3 2026 against the $108.7 million Q2 figure and the $70–$90 million 2026 plan, to gauge full-year cash generation.
Contract talent solutions hours worked in Q3 2026 to confirm whether the narrowing decline to 2.8% continues toward stabilization.
Protiviti adjusted contracted sharply to 18.5% from 22.3%, driven by cost reduction charges and unfavorable staff composition, pushing total adjusted down to 2.9% from 4.3%.
Adjusted SG&A fell 0.9% to $459M, but deleverage from the decline lifted the adjusted expense ratio to 34.3% from 33.8%.
swung to a $4M use of cash from a $60M source a year ago, while the company paid $121M in dividends and repurchased $6M in stock.
Management sees improving market conditions and steady client activity, but notes limited visibility and expects macroeconomic and geopolitical uncertainty to persist.
Quantitative and Qualitative Disclosures About Market Risk
Foreign-currency exposure from ~23% non-U.S. revenue is largely naturally hedged, with immaterial net-income impact.
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About 23.3% of was generated outside the U.S. in the first six months of 2026, primarily in Australian dollar, Brazilian real, British pound, Canadian dollar, and Euro.
Foreign-currency fluctuations increased reported service revenues by $31.1 million (1.2%) in the first half of 2026 versus the prior-year period.
Because international revenues and expenses are mostly in the same local currency, the impact is largely offset by higher reported operating expenses, making the net-income effect nominal.
If exchange rates stay at June 30, 2026 levels, the full-year and expense impact would be similar to the first half, with an immaterial net-income effect.
Subsequent strengthening of the U.S. dollar against some currencies through July 2026 would create an unfavorable impact offset by a favorable expense impact, still immaterial to .
The company does not use financial hedging instruments; currency fluctuations generally do not affect cash flow or cause actual economic gains or losses.
Except for those developments above referenced in Note K – Commitment and Contingencies regarding the Gentry v Robert Half and the Dorff v. Robert Half class actions, there have been no material developments with regard to any of the legal proceedings previously disclosed in the…
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Except for those developments above referenced in Note K – Commitment and Contingencies regarding the Gentry v Robert Half and the Dorff v. Robert Half class actions, there have been no material developments with regard to any of the legal proceedings previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
For a discussion of the Company’s potential risks and uncertainties, see the information under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”).
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For a discussion of the Company’s potential risks and uncertainties, see the information under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”).