ROBERT HALF INC.

Previous wording

Demand for the Company’s contract talent solutions, permanent placement talent solutions and Protiviti is largely dependent upon general economic and labor trends, both domestically and abroad. The U.S. real gross domestic product increased at an annual rate of 1.5% during the second quarter 2026, compared to an increase of 2.0% during the first quarter of 2026.

Current wording

Demand for the Company’s contract talent solutions, permanent placement talent solutions and Protiviti is largely dependent upon general economic and labor trends, both domestically and abroad. The U.S. real gross domestic product increased at an annual rate of 3.4% during the third quarter of 2026, compared to an increase of 2.2% during the second quarter of 2026.

Previous wording

The U.S. job market remains resilient with overall unemployment at 4.2%, as of June 30, 2026. Labor supply constraints remain. Particularly noteworthy is that the unemployment rate for college-educated professionals is holding steady at just 2.7%, with even lower rates prevailing among specialized accounting, finance and technology roles. Broader labor market indicators continue to point to underlying demand for skilled talent, and job openings continue to run above historical averages. While clients continue to approach hiring thoughtfully, the Company sees steady progress in client interactions and activity. These interactions suggest that clients remain resilient, although geopolitical and macroeconomic uncertainty persists, and inflation remains a concern including the potential effects of escalating tensions in the Middle East. Organizations continue to focus on initiatives that drive productivity, growth and long-term competitiveness which contributes to ongoing demand for the Company’s services.

Current wording

The U.S. job market remains resilient with overall unemployment at 4.2%, as of September 30, 2026. Labor supply constraints remain. Particularly noteworthy is that the unemployment rate for college-educated professionals is holding steady at just 2.5%, with even lower rates prevailing among specialized accounting, finance and technology roles. Broader labor market indicators continue to point to underlying demand for skilled talent, and job openings continue to run above historical averages. While clients continue to approach hiring thoughtfully, the Company sees steady progress in client interactions and activity. These interactions suggest that clients remain resilient, although geopolitical and macroeconomic uncertainty persists, and inflation remains a concern, including the potential effects of escalating tensions in the Middle East. Organizations continue to focus on initiatives that drive productivity, growth and long-term competitiveness, which contributes to ongoing demand for the Company’s services.

Previous wording

The Company monitors various economic indicators and business trends in all of the countries in which it operates to anticipate demand for the Company’s services. These trends are evaluated to determine the appropriate level of investment, including personnel, which will best position the Company for success in the current and future global macroeconomic environment. The Company’s investments in headcount are typically structured to proactively support and align with expected revenue growth trends and productivity metrics. Visibility into future revenues is limited not only due to the dependence on macroeconomic and labor market conditions noted above, but also because of the relatively short duration of the Company’s client engagements. Accordingly, the Company’s headcount and other investments are typically assessed on at least a quarterly basis. During the first half of 2026, the Company’s headcount remained relatively flat for its contract talent solutions segment, as well as administrative headcount, when compared to prior year-end levels, while its permanent placement talent solutions segment and Protiviti headcount decreased.

Current wording

The Company monitors various economic indicators and business trends in all of the countries in which it operates to anticipate demand for the Company’s services. These trends are evaluated to determine the appropriate level of investment, including personnel, which will best position the Company for success in the current and future global macroeconomic environment. The Company’s investments in headcount are typically structured to proactively support and align with expected revenue growth trends and productivity metrics. Visibility into future revenues is limited not only due to the dependence on macroeconomic and labor market conditions noted above, but also because of the relatively short duration of the Company’s client engagements. Accordingly, the Company’s headcount and other investments are typically assessed on at least a quarterly basis. During the first three quarters of 2026, the Company’s headcount decreased across all three of its segments compared to prior year-end levels.

Previous wording

The Company’s most critical accounting policies and estimates are those that involve subjective decisions or assessments and are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There were no material changes to the Company’s critical accounting policies or estimates for the six months ended June 30, 2026.

Current wording

The Company’s most critical accounting policies and estimates are those that involve subjective decisions or assessments and are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There were no material changes to the Company’s critical accounting policies or estimates for the nine months ended September 30, 2026.

Previous wording

Service Revenues. The Company’s revenues were $1.34 billion for the three months ended June 30, 2026, a decrease of 2.4% compared to $1.37 billion for the three months ended June 30, 2025. Revenues from U.S. operations decreased 2.9% to $1.03 billion (77.3% of total revenue) for the three months ended June 30, 2026, compared to $1.06 billion (77.7% of total revenue) for the three months ended June 30, 2025. Revenues from international operations decreased 1.0% to $303 million (22.7% of total revenue) for the three months ended June 30, 2026, compared to $306 million (22.3% of total revenue) for the three months ended June 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Current wording

Service Revenues. The Company’s revenues were $1.36 billion for the three months ended September 30, 2026, an increase of 0.4% compared to $1.35 billion for the three months ended September 30, 2025. Revenues from U.S. operations remained flat at $1.05 billion (77.5% of total revenue) for the three months ended September 30, 2026, compared to $1.05 billion (77.3% of total revenue) for the three months ended September 30, 2025. Revenues from international operations decreased 0.2% to $306 million (22.5% of total revenue) for the three months ended September 30, 2026, compared to $307 million (22.7% of total revenue) for the three months ended September 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Previous wording

Contract talent solutions revenues were $747 million for the three months ended June 30, 2026, decreasing by 1.6% compared to revenues of $760 million for the three months ended June 30, 2025. Key drivers of contract talent solutions revenues include average hourly bill rates and the number of hours worked by the Company’s engagement professionals on client engagements. The decrease in contract talent solutions revenues for the three months ended June 30, 2026, was primarily due to a 2.8% decrease in the number of hours worked by the Company’s engagement professionals, offset by a 1.2% increase in average bill rates. On an adjusted basis, contract talent solutions revenues decreased 2.1% for the second quarter of 2026 compared to the second quarter of 2025. In the U.S., revenues in the second quarter of 2026 decreased 2.1% on a reported basis, and decreased 1.8% on an adjusted basis, compared to the second quarter of 2025. International revenues for the second quarter of 2026 decreased 0.1% on a reported basis, and decreased 3.5% on an adjusted basis, compared to the second quarter of 2025.

Current wording

Contract talent solutions revenues were $759 million for the three months ended September 30, 2026, increasing by 1.7% compared to revenues of $746 million for the three months ended September 30, 2025. Key drivers of contract talent solutions revenues include average hourly bill rates and the number of hours worked by the Company’s engagement professionals on client engagements. The increase in contract talent solutions revenues for the three months ended September 30, 2026, was primarily due to a 2.5% increase in average bill rates, offset by a 1.0% decrease in the number of hours worked by the Company’s engagement professionals. On an adjusted basis, contract talent solutions revenues increased 1.0% for the third quarter of 2026 compared to the third quarter of 2025. In the U.S., revenues in the third quarter of 2026 increased 2.5% on a reported basis, and increased 1.9% on an adjusted basis, compared to the third quarter of 2025. International revenues for the third quarter of 2026 decreased 1.1% on both a reported basis and on an adjusted basis, compared to the third quarter of 2025.

Previous wording

Permanent placement talent solutions revenues were $118 million for the three months ended June 30, 2026, increasing by 2.9% compared to revenues of $115 million for the three months ended June 30, 2025. Key drivers of permanent placement talent solutions revenues consist of the number of candidate placements and average fees earned per placement. The increase in permanent placement talent solutions revenues for the three months ended June 30, 2026, was due to a 5.5% increase in average fees earned per placement, partially offset by a 2.6% decrease in the number of placements. On an adjusted basis, permanent placement talent solutions revenues increased 2.5% for the second quarter of 2026 compared to the second quarter of 2025. In the U.S., revenues for the second quarter of 2026 increased 6.0% on a reported basis, and increased 6.3% on an adjusted basis, compared to the second quarter of 2025. International revenues for the second quarter of 2026 decreased 4.8% on a reported basis, and decreased 7.1% on an adjusted basis, compared to the second quarter of 2025. Historically, demand for permanent placement talent solutions is even more sensitive to economic and labor market conditions than demand for contract talent solutions, and this is expected to continue.

Current wording

Permanent placement talent solutions revenues were $117 million for the three months ended September 30, 2026, increasing by 6.2% compared to revenues of $110 million for the three months ended September 30, 2025. Key drivers of permanent placement talent solutions revenues consist of the number of candidate placements and average fees earned per placement. The increase in permanent placement talent solutions revenues for the three months ended September 30, 2026, was due to a 5.3% increase in average fees earned per placement, combined with a 0.9% increase in the number of placements. On an adjusted basis, permanent placement talent solutions revenues increased 5.6% for the third quarter of 2026 compared to the third quarter of 2025. In the U.S., revenues for the third quarter of 2026 increased 8.1% on a reported basis, and increased 7.5% on an adjusted basis, compared to the third quarter of 2025. International revenues for the third quarter of 2026 increased 1.3% on a reported basis, and increased 1.6% on an adjusted basis, compared to the third quarter of 2025. Historically, demand for permanent placement talent solutions is even more sensitive to economic and labor market conditions than demand for contract talent solutions, and this is expected to continue.

Previous wording

Protiviti revenues were $471 million for the three months ended June 30, 2026, decreasing by 4.9% compared to revenues of $495 million for the three months ended June 30, 2025. Key drivers of Protiviti revenues are the billable hours worked on client engagements and average hourly bill rates. The decrease in Protiviti revenues for the three months ended June 30, 2026, was due to a 19.9% decrease in billable hours, partially offset by a 15.0% increase in average hourly bill rates. The increase in average bill rate largely reflects changes in the composition and number of professional staff, as well as differences in their respective billing rates. As engagements shift from large, highly leveraged projects to smaller engagements with less leverage, average bill rates increase. On an adjusted basis, Protiviti revenues decreased 5.0% for the second quarter of 2026 compared to the second quarter of 2025. In the U.S., revenues in the second quarter of 2026 decreased 5.8% on a reported basis, and decreased 5.5% on an adjusted basis, compared to the second quarter of 2025. International revenues for the second quarter of 2026 decreased 1.2% on a reported basis, and decreased 3.1% on an adjusted basis, compared to the second quarter of 2025.

Current wording

Protiviti revenues were $483 million for the three months ended September 30, 2026, decreasing by 2.9% compared to revenues of $498 million for the three months ended September 30, 2025. Key drivers of Protiviti revenues are the billable hours worked on client engagements and average hourly bill rates. The decrease in Protiviti revenues for the three months ended September 30, 2026, was due to a 10.4% decrease in billable hours, partially offset by a 7.5% increase in average hourly bill rates. The increase in average bill rate largely reflects changes in the composition and number of professional staff, as well as differences in their respective billing rates. On an adjusted basis, Protiviti revenues decreased 3.3% for the third quarter of 2026 compared to the third quarter of 2025. In the U.S., revenues in the third quarter of 2026 decreased 3.9% on a reported basis, and decreased 4.5% on an adjusted basis, compared to the third quarter of 2025. International revenues for the third quarter of 2026 increased 0.8% on a reported basis, and increased 1.9% on an adjusted basis, compared to the third quarter of 2025.

Previous wording

Gross Margin. The Company’s gross margin dollars were $474 million for the three months ended June 30, 2026, decreasing 7.0% from $509 million for the three months ended June 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Current wording

Gross Margin. The Company’s gross margin dollars were $532 million for the three months ended September 30, 2026, up 5.5% from $504 million for the three months ended September 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Previous wording

Gross margin dollars for permanent placement talent solutions represent revenues less reimbursable expenses. Gross margin dollars for permanent placement talent solutions were $118 million for the three months ended June 30, 2026, increasing 2.9% from $115 million for the three months ended June 30, 2025. Because reimbursable expenses for permanent placement talent solutions are de minimis, the increase in gross margin dollars is substantially explained by the increase in revenues previously discussed.

Current wording

Gross margin dollars for permanent placement talent solutions represent revenues less reimbursable expenses. Gross margin dollars for permanent placement talent solutions were $117 million for the three months ended September 30, 2026, increasing 6.2% from $110 million for the three months ended September 30, 2025. Because reimbursable expenses for permanent placement talent solutions are de minimis, the increase in gross margin dollars is substantially explained by the increase in revenues previously discussed.

Previous wording

Gross margin dollars for Protiviti represent revenues less costs of services, which consist primarily of professional staff payroll, payroll taxes, benefit costs and reimbursable expenses. The primary drivers of Protiviti’s gross margin are: i) the relative composition of and number of professional staff and their respective pay and bill rates; and ii) staff utilization, which is the relationship of time spent on client engagements in proportion to the total time available for the Company’s Protiviti staff. Gross margin dollars for Protiviti were $64 million for the three months ended June 30, 2026, decreasing 34.6% from $97 million for the three months ended June 30, 2025. As a percentage of revenues, reported gross margin dollars for Protiviti were 13.5% in the second quarter of 2026, down from 19.7% in the second quarter of 2025. As a percentage of revenues, adjusted gross margin dollars for Protiviti were 18.5% in the second quarter of 2026, down from 22.3% in the second quarter of 2025. The year-over-year decrease in adjusted gross margin percentage was primarily due to cost reduction charges incurred in the quarter, as well as the relative composition of and number of professional staff and their respective pay and bill rates.

Current wording

Gross margin dollars for Protiviti represent revenues less costs of services, which consist primarily of professional staff payroll, payroll taxes, benefit costs and reimbursable expenses. The primary drivers of Protiviti’s gross margin are: i) the relative composition of and number of professional staff and their respective pay and bill rates; and ii) staff utilization, which is the relationship of time spent on client engagements in proportion to the total time available for the Company’s Protiviti staff. Gross margin dollars for Protiviti were $117 million for the three months ended September 30, 2026, up 12.5% from $104 million for the three months ended September 30, 2025. As a percentage of revenues, reported gross margin dollars for Protiviti were 24.2% in the third quarter of 2026, up from 20.9% in the third quarter of 2025. As a percentage of revenues, adjusted gross margin dollars for Protiviti were 24.1% in the third quarter of 2026, up from 23.0% in the third quarter of 2025. The year-over-year increase in adjusted gross margin percentage was primarily due to the relative composition of and number of professional staff and their respective pay and bill rates.

Previous wording

Selling, General and Administrative Expenses. The Company’s selling, general and administrative expenses consist primarily of staff compensation, advertising, lease expense, depreciation, cloud computing service costs and overhead costs. The Company’s reported selling, general and administrative expenses were $536 million for the three months ended June 30, 2026, increasing by 5.6% from $508 million for the three months ended June 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses were 40.1% in the second quarter of 2026, up from 37.1% in the second quarter of 2025. The Company’s adjusted selling, general and administrative expenses were $459 million for the three months ended June 30, 2026, down 0.9% from $463 million for the three months ended June 30, 2025. As a percentage of revenues, adjusted selling, general and administrative expenses were 34.3% in the second quarter of 2026, up from 33.8% in the second quarter of 2025. Contributing factors for each reportable segment are discussed below in further detail.

Current wording

Selling, General and Administrative Expenses. The Company’s selling, general and administrative expenses consist primarily of staff compensation, advertising, lease expense, depreciation, cloud computing service costs and overhead costs. The Company’s reported selling, general and administrative expenses were $457 million for the three months ended September 30, 2026, decreasing by 6.8% from $491 million for the three months ended September 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses were 33.6% in the third quarter of 2026, down from 36.2% in the third quarter of 2025. The Company’s adjusted selling, general and administrative expenses were $459 million for the three months ended September 30, 2026, up 1.2% from $453 million for the three months ended September 30, 2025. As a percentage of revenues, adjusted selling, general and administrative expenses were 33.8% in the third quarter of 2026, up from 33.5% in the third quarter of 2025. Contributing factors for each reportable segment are discussed below in further detail.

Previous wording

Selling, general and administrative expenses for contract talent solutions, on a reported basis, were $343 million for the three months ended June 30, 2026, increasing by 7.6% from $319 million for the three months ended June 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for contract talent solutions were 45.9% in the second quarter of 2026, up from 42.0% in the second quarter of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for contract talent solutions were 36.7% in both the second quarter of 2026 and 2025.

Current wording

Selling, general and administrative expenses for contract talent solutions, on a reported basis, were $274 million for the three months ended September 30, 2026, decreasing by 10.6% from $307 million for the three months ended September 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for contract talent solutions were 36.2% in the third quarter of 2026, down from 41.1% in the third quarter of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for contract talent solutions was 36.3% in the third quarter of 2026, down from 36.7% in the third quarter of 2025.

Previous wording

Selling, general and administrative expenses for permanent placement talent solutions were $116 million for the three months ended June 30, 2026, increasing by 4.3% from $111 million for the three months ended June 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for permanent placement talent solutions services were 98.3% in the second quarter of 2026, up from 97.0% in the second quarter of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for permanent placement talent solutions were 90.6% in the second quarter of 2026, down from 92.7% in the second quarter of 2025, due primarily to positive leverage as revenues increased.

Current wording

Selling, general and administrative expenses for permanent placement talent solutions were $104 million for the three months ended September 30, 2026, decreasing by 2.5% from $107 million for the three months ended September 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for permanent placement talent solutions services were 88.7% in the third quarter of 2026, down from 96.6% in the third quarter of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for permanent placement talent solutions were 88.9% in the third quarter of 2026, down from 92.9% in the third quarter of 2025, due primarily to positive leverage as revenues increased.

Previous wording

Selling, general and administrative expenses for Protiviti were $77 million for the three months ended June 30, 2026, decreasing by 0.7% from $78 million for the three months ended June 30, 2025. As a percentage of revenues, selling, general and administrative expenses for Protiviti services were 16.4% in the second quarter of 2026, up from 15.7% in the second quarter of 2025, due primarily to negative leverage as revenues decreased.

Current wording

Selling, general and administrative expenses for Protiviti were $79 million for the three months ended September 30, 2026, increasing by 2.3% from $77 million for the three months ended September 30, 2025. As a percentage of revenues, selling, general and administrative expenses for Protiviti services were 16.4% in the third quarter of 2026, up from 15.5% in the third quarter of 2025, due primarily to negative leverage as revenues decreased.

Previous wording

Operating (Loss) Income. The Company’s operating (loss) income consists of gross margin less selling, general and administrative expenses. The Company’s reported operating loss was $62 million for the three months ended June 30, 2026, compared to operating income of $2 million for the three months ended June 30, 2025. As a percentage of revenues, reported operating (loss) income was (4.7)% in the second quarter of 2026, down from 0.1% in the second quarter of 2025. The Company’s adjusted operating income was $39 million for the three months ended June 30, 2026, down 34.8% from $59 million for the three months ended June 30, 2025. As a percentage of revenues, adjusted operating income was 2.9% in the second quarter of 2026, down from 4.3% in the second quarter of 2025. Since operating (loss) income is defined as gross margin less selling, general and administrative expenses, the year over year change is explained by factors previously discussed.

Current wording

Operating Income. The Company’s operating income consists of gross margin less selling, general and administrative expenses. The Company’s reported operating income was $75 million for the three months ended September 30, 2026, compared to $14 million for the three months ended September 30, 2025. As a percentage of revenues, reported operating income was 5.5% in the third quarter of 2026, up from 1.0% in the third quarter of 2025. The Company’s adjusted operating income was $73 million for the three months ended September 30, 2026, up 18.5% from $61 million for the three months ended September 30, 2025. As a percentage of revenues, adjusted operating income was 5.3% in the third quarter of 2026, up from 4.5% in the third quarter of 2025. Since operating income is defined as gross margin less selling, general and administrative expenses, the year over year change is explained by factors previously discussed.

Previous wording

(Income) Loss 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 the equal and offsetting amount, leaving no net costs to the Company, and therefore no effect on reported net income. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses and dividend income from trust investments and is presented separately on the unaudited Condensed Consolidated Statements of Operations. The Company’s income from investments held in employee deferred compensation trusts was $101 million and $58 million for the three months ended June 30, 2026 and 2025, respectively. The income from trust investments during the second quarter of 2026 was due to positive market returns.

Current wording

(Income) Loss 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 the equal and offsetting amount, leaving no net costs to the Company, and therefore no effect on reported net income. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses and dividend income from trust investments and is presented separately on the unaudited Condensed Consolidated Statements of Operations. The Company’s loss from investments held in employee deferred compensation trusts was $2 million for the three months ended September 30, 2026. The Company’s income from investments held in employee deferred compensation trusts was $48 million for the three months ended September 30, 2025. The loss from trust investments during the third quarter of 2026 was due to negative market returns.

Previous wording

Provision for income taxes. The provision for income taxes was 35.2% and 33.3% for the three months ended June 30, 2026 and 2025, respectively. The higher tax rate for 2026 can be primarily attributed to lower tax credits and the increased impact of nondeductible expenses relative to lower pre-tax income.

Current wording

Provision for income taxes. The provision for income taxes was 33.2% and 32.6% for the three months ended September 30, 2026 and 2025, respectively. The higher tax rate for 2026 can be primarily attributed to lower tax credits.

Previous wording

Service Revenues. The Company’s revenues were $2.64 billion for the six months ended June 30, 2026, a decrease of 3.1% compared to $2.72 billion for the six months ended June 30, 2025. Revenues from U.S. operations decreased 5.0% to $2.02 billion (76.7% of total revenue) for the six months ended June 30, 2026, compared to $2.13 billion (78.2% of total revenue) for the six months ended June 30, 2025. Revenues from international operations increased 3.4% to $615 million (23.3% of total revenue) for the six months ended June 30, 2026, compared to $594 million (21.8% of total revenue) for the six months ended June 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Current wording

Service Revenues. The Company’s revenues were $4.00 billion for the nine months ended September 30, 2026, a decrease of 2.0% compared to $4.08 billion for the nine months ended September 30, 2025. Revenues from U.S. operations decreased 3.1% to $3.07 billion (76.9% of total revenue) for the nine months ended September 30, 2026, compared to $3.17 billion (77.9% of total revenue) for the nine months ended September 30, 2025. Revenues from international operations increased 2.2% to $921 million (23.1% of total revenue) for the nine months ended September 30, 2026, compared to $901 million (22.1% of total revenue) for the nine months ended September 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Previous wording

Contract talent solutions revenues were $1.47 billion for the six months ended June 30, 2026, decreasing by 3.3% compared to revenues of $1.52 billion for the six months ended June 30, 2025. Key drivers of contract talent solutions revenues include average hourly bill rates and the number of hours worked by the Company’s engagement professionals on client engagements. The decrease in contract talent solutions revenues for the six months ended June 30, 2026, was primarily due to a 5.0% decrease in the number of hours worked by the Company’s engagement professionals, partially offset by a 1.8% increase in average bill rates. On an adjusted basis, contract talent solutions revenues in the first half of 2026 decreased 4.5% compared to the first half of 2025. In the U.S., revenues in the first half of 2026 decreased 4.9% on a reported basis, and decreased 4.7% on an adjusted basis, compared to the first half of 2025. International revenues for the first half of 2026 increased 2.1% on a reported basis, and decreased 3.5% on an adjusted basis, compared to the first half of 2025.

Current wording

Contract talent solutions revenues were $2.23 billion for the nine months ended September 30, 2026, decreasing by 1.7% compared to revenues of $2.27 billion for the nine months ended September 30, 2025. Key drivers of contract talent solutions revenues include average hourly bill rates and the number of hours worked by the Company’s engagement professionals on client engagements. The decrease in contract talent solutions revenues for the nine months ended September 30, 2026, was primarily due to 3.7% decrease in the number of hours worked by the Company’s engagement professionals, partially offset by a 2.0% increase in average bill rates. On an adjusted basis, contract talent solutions revenues in the first three quarters of 2026 decreased 2.7% compared to the first three quarters of 2025. In the U.S., revenues in the first three quarters of 2026 decreased 2.5% on both a reported basis and an adjusted basis, compared to the first three quarters of 2025. International revenues for the first three quarters of 2026 increased 1.0% on a reported basis, and decreased 2.7% on an adjusted basis, compared to the first three quarters of 2025.

Previous wording

Permanent placement talent solutions revenues were $227 million for the six months ended June 30, 2026, flat compared to revenues of $227 million for the six months ended June 30, 2025. Key drivers of permanent placement talent solutions revenues consist of the number of candidate placements and average fees earned per placement. Permanent placement talent solutions revenues for the six months ended June 30, 2026, were impacted by a 5.1% increase in average fees earned per placement, partially offset by a 5.0% decrease in the number of placements. On an adjusted basis, permanent placement talent solutions revenues decreased 1.1% for the first half of 2026 compared to the first half of 2025. In the U.S., revenues for the first half of 2026 were flat on a reported basis, and increased 0.3% on an adjusted basis, compared to the first half of 2025. International revenues for the first half of 2026 increased 0.2% on a reported basis, and decreased 4.1% on an adjusted basis, compared to the first half of 2025. Historically, demand for permanent placement talent solutions is even more sensitive to economic and labor market conditions than demand for contract talent solutions and this is expected to continue.

Current wording

Permanent placement talent solutions revenues were $344 million for the nine months ended September 30, 2026, increasing by 2.1% compared to revenues of $337 million for the nine months ended September 30, 2025. Key drivers of permanent placement talent solutions revenues consist of the number of candidate placements and average fees earned per placement. Permanent placement talent solutions revenues for the nine months ended September 30, 2026, were impacted by a 5.2% increase in average fees earned per placement, partially offset by a 3.1% decrease in the number of placements. On an adjusted basis, permanent placement talent solutions revenues increased 1.1% for the first three quarters of 2026 compared to the first three quarters of 2025. In the U.S., revenues for the first three quarters of 2026 increased by 2.7% on a reported basis, and increased 2.6% on an adjusted basis, compared to the first three quarters of 2025. International revenues for the first three quarters of 2026 increased 0.6% on a reported basis, and decreased 2.3% on an adjusted basis, compared to the first three quarters of 2025. Historically, demand for permanent placement talent solutions is even more sensitive to economic and labor market conditions than demand for contract talent solutions and this is expected to continue.

Previous wording

Protiviti revenues were $937 million for the six months ended June 30, 2026, decreasing by 3.6% compared to revenues of $972 million for the six months ended June 30, 2025. Key drivers of Protiviti revenues are the billable hours worked on client engagements and average hourly bill rates. The decrease in Protiviti revenues for the six months ended June 30, 2026, was due to a 12.9% decrease in billable hours, partially offset by a 9.3% increase in average hourly bill rates. The increase in average bill rate largely reflects changes in the composition and number of professional staff, as well as differences in their respective billing rates. As engagements shift from large, highly leveraged projects to smaller engagements with less leverage, average bill rates increase. On an adjusted basis, Protiviti revenues decreased 4.4% for the first half of 2026 compared to the first half of 2025. In the U.S., revenues in the first half of 2026 decreased 6.1% on a reported basis, and decreased 5.9% on an adjusted basis, compared to the first half of 2025. International revenues in the first half of 2026 increased 7.0% on a reported basis, and increased 2.2% on an adjusted basis, compared to the first half of 2025.

Current wording

Protiviti revenues were $1.42 billion for the nine months ended September 30, 2026, decreasing by 3.4% compared to revenues of $1.47 billion for the nine months ended September 30, 2025. Key drivers of Protiviti revenues are the billable hours worked on client engagements and average hourly bill rates. The decrease in Protiviti revenues for the nine months ended September 30, 2026, was due to an 8.6% decrease in billable hours, partially offset by a 5.2% increase in average hourly bill rates. The increase in average bill rate largely reflects changes in the composition and number of professional staff, as well as differences in their respective billing rates. On an adjusted basis, Protiviti revenues decreased 4.1% for the first three quarters of 2026 compared to the first three quarters of 2025. In the U.S., revenues in the first three quarters of 2026 decreased 5.4% on both a reported basis and an adjusted basis, compared to the first three quarters of 2025. International revenues in the first three quarters of 2026 increased 4.8% on a reported basis, and increased 2.1% on an adjusted basis, compared to the first three quarters of 2025.

Previous wording

A reconciliation of the non-GAAP year-over-year revenue growth rates to the as reported year-over-year revenue growth rates for the six months ended June 30, 2026, is presented in the following table:

Current wording

A reconciliation of the non-GAAP year-over-year revenue growth rates to the as reported year-over-year revenue growth rates for the nine months ended September 30, 2026, is presented in the following table:

Previous wording

Gross Margin. The Company’s gross margin dollars were $954 million for the six months ended June 30, 2026, down 5.4% from $1.01 billion for the six months ended June 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Current wording

Gross Margin. The Company’s gross margin dollars were $1.49 billion for the nine months ended September 30, 2026, down 1.8% from $1.51 billion for the nine months ended September 30, 2025. Contributing factors for each reportable segment are discussed below in further detail.

Previous wording

Gross margin dollars for contract talent solutions were $292 million for the three months ended June 30, 2026, decreasing by 1.7% from $297 million for the three months ended June 30, 2025. As a percentage of revenues, gross margin dollars for contract talent solutions were 39.1% in both the second quarter of 2026 and 2025.

Current wording

Gross margin dollars for contract talent solutions were $872 million for the nine months ended September 30, 2026, down 1.4% from $884 million for the nine months ended September 30, 2025. As a percentage of revenues, gross margin dollars for contract talent solutions were 39.1% for the nine months ended September 30, 2026, up from 39.0% for the nine months ended September 30, 2025.

Previous wording

Gross margin dollars for permanent placement talent solutions represent revenues less reimbursable expenses. Gross margin dollars for permanent placement talent solutions were $227 million for the six months ended June 30, 2026, flat compared to $227 million for the six months ended June 30, 2025.

Current wording

Gross margin dollars for permanent placement talent solutions represent revenues less reimbursable expenses. Gross margin dollars for permanent placement talent solutions were $343 million for the nine months ended September 30, 2026, up 2.1% compared to $337 million for the nine months ended September 30, 2025. Because reimbursable expenses for permanent placement talent solutions are de minimis, the increase in gross margin dollars is substantially explained by the increase in revenues previously discussed.

Previous wording

Gross margin dollars for Protiviti represent revenues less costs of services, which consist primarily of professional staff payroll, payroll taxes, benefit costs and reimbursable expenses. The primary drivers of Protiviti’s gross margin are: i) the relative composition of and number of professional staff and their respective pay and bill rates; and ii) staff utilization, which is the relationship of time spent on client engagements in proportion to the total time available for the Company’s Protiviti staff. Gross margin dollars for Protiviti were $153 million for the six months ended June 30, 2026, down 18.4% from $188 million for the six months ended June 30, 2025. As a percentage of revenues, reported gross margin dollars for Protiviti were 16.3% in the first half of 2026, down from 19.3% in the first half of 2025. As a percentage of revenues, adjusted gross margin dollars for Protiviti were 18.6% in the first half of 2026, down from 20.2% in the first half of 2025. The year-over-year decrease in adjusted gross margin percentage was primarily due to the relative composition of and number of professional staff and their respective pay and bill rates as well as cost reduction charges incurred in the period.

Current wording

Gross margin dollars for Protiviti represent revenues less costs of services, which consist primarily of professional staff payroll, payroll taxes, benefit costs and reimbursable expenses. The primary drivers of Protiviti’s gross margin are: i) the relative composition of and number of professional staff and their respective pay and bill rates; and ii) staff utilization, which is the relationship of time spent on client engagements in proportion to the total time available for the Company’s Protiviti staff. Gross margin dollars for Protiviti were $270 million for the nine months ended September 30, 2026, down 7.4% from $292 million for the nine months ended September 30, 2025. As a percentage of revenues, reported gross margin dollars for Protiviti were 19.0% in the first three quarters of 2026, down from 19.9% in the first three quarters of 2025. As a percentage of revenues, adjusted gross margin dollars for Protiviti were 20.5% in the first three quarters of 2026, down from 21.2% in the first three quarters of 2025. The year-over-year decrease in adjusted gross margin percentage was primarily due to the relative composition of and number of professional staff and their respective pay and bill rates.

Previous wording

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following tables provide reconciliations of the non-GAAP adjusted gross margin to reported gross margin for the nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

Selling, General and Administrative Expenses. The Company’s selling, general and administrative expenses consist primarily of staff compensation, advertising, lease expense, depreciation, cloud computing service costs and overhead costs. The Company’s reported selling, general and administrative expenses were $979 million for the six months ended June 30, 2026, up 1.2% from $968 million for the six months ended June 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses were 37.1% in the first half of 2026, up from 35.6% in the first half of 2025. The Company’s adjusted selling, general and administrative expenses were $908 million for the six months ended June 30, 2026, down 3.3% from $939 million for the six months ended June 30, 2025. As a percentage of revenues, adjusted selling, general and administrative expenses were 34.4% in the first half of 2026, down from 34.5% in the first half of 2025. Contributing factors for each reportable segment are discussed below in further detail.

Current wording

Selling, General and Administrative Expenses. The Company’s selling, general and administrative expenses consist primarily of staff compensation, advertising, lease expense, depreciation, cloud computing service costs and overhead costs. The Company’s reported selling, general and administrative expenses were $1.44 billion for the nine months ended September 30, 2026, down 1.5% from $1.46 billion for the nine months ended September 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses were 36.0% in the first three quarters of 2026, up from 35.8% in the first three quarters of 2025. The Company’s adjusted selling, general and administrative expenses were $1.37 billion for the nine months ended September 30, 2026, down 1.9% from $1.39 billion for the nine months ended September 30, 2025. As a percentage of revenues, adjusted selling, general and administrative expenses were 34.2% in the first three quarters of both 2026 and 2025. Contributing factors for each reportable segment are discussed below in further detail.

Previous wording

Selling, general and administrative expenses for contract talent solutions, on an as-reported basis, were $610 million for the six months ended June 30, 2026, increasing by 2.5% from $595 million for the six months ended June 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for contract talent solutions were 41.4% in the first half of 2026, up from 39.1% in the first half of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for contract talent solutions were 37.2% in the first half of 2026, down from 37.4% in the first half of 2025.

Current wording

Selling, general and administrative expenses for contract talent solutions, on an as-reported basis, were $884 million for the nine months ended September 30, 2026, decreasing by 1.9% from $902 million for the nine months ended September 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for contract talent solutions were 39.6% in the first three quarters of 2026, down from 39.7% in the first three quarters of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for contract talent solutions were 36.9% in the first three quarters of 2026, down from 37.1% in the first three quarters of 2025.

Previous wording

Selling, general and administrative expenses for permanent placement talent solutions were $218 million for the six months ended June 30, 2026, increasing by 0.2% from $217 million for the six months ended June 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for permanent placement talent solutions were 96.0% in the first half of 2026, up from 95.8% in the first half of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for permanent placement talent solutions were 92.3% in the first half of 2026, down from 94.6% in the first half of 2025, due primarily to positive leverage as revenues increased.

Current wording

Selling, general and administrative expenses for permanent placement talent solutions were $322 million for the nine months ended September 30, 2026, decreasing by 0.7% from $324 million for the nine months ended September 30, 2025. As a percentage of revenues, reported selling, general and administrative expenses for permanent placement talent solutions were 93.5% in the first three quarters of 2026, down from 96.1% in the first three quarters of 2025. As a percentage of revenues, adjusted selling, general and administrative expenses for permanent placement talent solutions were 91.2% in the first three quarters of 2026, down from 94.0% in the first three quarters of 2025, due primarily to positive leverage as revenues increased.

Previous wording

Selling, general and administrative expenses for Protiviti were $151 million for the six months ended June 30, 2026, decreasing by 2.7% from $156 million for the six months ended June 30, 2025. As a percentage of revenues, selling, general and administrative expenses for Protiviti were 16.2% in the first half of 2026, up from 16.0% in the first half of 2025.

Current wording

Selling, general and administrative expenses for Protiviti were $231 million for the nine months ended September 30, 2026, decreasing by 1.1% from $233 million for the nine months ended September 30, 2025. As a percentage of revenues, selling, general and administrative expenses for Protiviti were 16.2% in the first three quarters of 2026, up from 15.9% in the first three quarters of 2025.

Previous wording

The following tables provide reconciliations of the non-GAAP selling, general and administrative expenses to reported selling, general and administrative expenses for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following tables provide reconciliations of the non-GAAP selling, general and administrative expenses to reported selling, general and administrative expenses for the nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

Operating (Loss) Income. The Company’s operating (loss) income consists of gross margin less selling, general and administrative expenses. The Company’s reported operating loss was $25 million for the six months ended June 30, 2026, compared to operating income of $40 million for the six months ended June 30, 2025. As a percentage of revenues, reported operating (loss) income was (1.0)% in the first half of 2026, down from 1.5% in the first half of 2025. The Company’s adjusted operating income was $67 million for the six months ended June 30, 2026, down 13.7% from $78 million for the six months ended June 30, 2025. As a percentage of revenues, adjusted operating income was 2.6% in the first half of 2026, down from 2.9% in the first half of 2025. Since operating (loss) income is defined as gross margin less selling, general and administrative expenses, the year over year change is explained by factors previously discussed.

Current wording

Operating Income. The Company’s operating income consists of gross margin less selling, general and administrative expenses. The Company’s reported operating income was $49 million for the nine months ended September 30, 2026, down 8.4% compared to $54 million for the nine months ended September 30, 2025. As a percentage of revenues, reported operating (loss) income was 1.2% in the first three quarters of 2026, down from 1.3% in the first three quarters of 2025. The Company’s adjusted operating income was $140 million for the nine months ended September 30, 2026, up 0.5% from $139 million for the nine months ended September 30, 2025. As a percentage of revenues, adjusted operating income was 3.5% in the first three quarters of 2026, up from 3.4% in the first three quarters of 2025. Since operating income is defined as gross margin less selling, general and administrative expenses, the year over year change is explained by factors previously discussed.

Previous wording

The following tables provide reconciliations of the non-GAAP adjusted operating income to reported operating (loss) income for the six months ended June 30, 2026 and 2025:

Current wording

The following tables provide reconciliations of the non-GAAP adjusted operating income to reported operating (loss) income for the nine months ended September 30, 2026 and 2025:

Previous wording

(Income) Loss 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 the equal and offsetting amount, leaving no net costs to the Company. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses, and dividend income from trust investments, and is presented separately on the unaudited Condensed Consolidated Statements of Operations. The Company’s income from investments held in employee deferred compensation trusts was $93 million and $37 million for the six months ended June 30, 2026 and 2025, respectively. The income from trust investments was due to positive market returns during the first half of 2026.

Current wording

(Income) Loss 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 the equal and offsetting amount, leaving no net costs to the Company. The Company’s (income) loss from investments held in employee deferred compensation trusts consists primarily of unrealized and realized gains and losses, and dividend income from trust investments, and is presented separately on the unaudited Condensed Consolidated Statements of Operations. The Company’s income from investments held in employee deferred compensation trusts was $90 million and $85 million for the nine months ended September 30, 2026 and 2025, respectively. The income from trust investments was due to positive market returns during the first three quarters of 2026.

Previous wording

Provision for income taxes. The provision for income taxes was 44.3% and 30.3% for the six months ended June 30, 2026 and 2025, respectively. The higher tax rate for 2026 can be primarily attributed to a tax charge in the first quarter related to employee stock-based compensation grants, the majority of which vest in the first quarter, and the magnified impact of non-deductible tax items relative to lower pre-tax income.

Current wording

Provision for income taxes. The provision for income taxes was 38.7% and 31.3% for the nine months ended September 30, 2026 and 2025, respectively. The higher tax rate for 2026 can be primarily attributed to a tax charge in the first quarter related to employee stock-based compensation grants, the majority of which vest in the first quarter.

Previous wording

The change in the Company’s liquidity during the six months ended June 30, 2026 and 2025, is primarily the effect of funds used in operations, as well as funds used for capital expenditures, investment in employee deferred compensation trusts, net of redemptions from employee deferred compensation trusts, repurchases of common stock, and payment of dividends.

Current wording

The change in the Company’s liquidity during the nine months ended September 30, 2026 and 2025, is primarily the effect of funds provided by operations, as well as funds used for capital expenditures, investment in employee deferred compensation trusts, net of redemptions from employee deferred compensation trusts, repurchases of common stock and payment of dividends.

Previous wording

Cash and cash equivalents were $325 million and $381 million at June 30, 2026 and 2025, respectively. Operating activities used net cash flows of $4 million during the six months ended June 30, 2026, combined with $5 million and $127 million of net cash used in investing activities and financing activities, respectively. Operating activities provided net cash flows of $60 million during the six months ended June 30, 2025, offset by $49 million and $192 million of net cash used in investing activities and financing activities, respectively. Fluctuations in foreign currency exchange rates had the effect of decreasing reported cash and cash equivalents by $3 million during the six months ended June 30, 2026, compared to an increase of $24 million during the six months ended June 30, 2025.

Current wording

Cash and cash equivalents were $321 million and $365 million at September 30, 2026 and 2025, respectively. Operating activities provided net cash flows of $63 million during the nine months ended September 30, 2026, offset by $15 million and $187 million of net cash used in investing activities and financing activities, respectively. Operating activities provided net cash flows of $137 million during the nine months ended September 30, 2025, offset by $63 million and $272 million of net cash used in investing activities and financing activities, respectively. Fluctuations in foreign currency exchange rates had the effect of decreasing reported cash and cash equivalents by $4 million during the nine months ended September 30, 2026, compared to an increase of $25 million during the nine months ended September 30, 2025.

Previous wording

Operating activities—Net cash used in operating activities for the six months ended June 30, 2026, was $4 million. This was composed of net income of $40 million, offset by non-cash items of $10 million, and net cash used in changes in working capital of $34 million. Net cash provided by operating activities for the six months ended June 30, 2025, was $60 million. This was composed of net income of $58 million adjusted upward for non-cash items of $46 million, offset by net cash used in changes in working capital of $44 million.

Current wording

Operating activities—Net cash provided by operating activities for the nine months ended September 30, 2026, was $63 million. This was composed of net income of $90 million adjusted upward for non-cash items of $29 million, offset by net cash used in changes in working capital of $56 million. Net cash provided by operating activities for the nine months ended September 30, 2025, was $137 million. This was composed of net income of $101 million adjusted upward for non-cash items of $60 million, offset by net cash used in changes in working capital of $24 million.