Professional Staffing & HR Solutions Stocks Q1 Recap: Benchmarking Robert Half (NYSE:RHI)

July 15, 2025 at 23:31 PM EDT

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As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the professional staffing & hr solutions industry, including Robert Half (NYSE: RHI) and its peers.

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 8 professional staffing & hr solutions stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 0.7% below.

While some professional staffing & hr solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

Weakest Q1: Robert Half (NYSE: RHI)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.35 billion, down 8.4% year on year. This print fell short of analysts’ expectations by 4.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.

Robert Half delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 13.9% since reporting and currently trades at $40.02.

Read our full report on Robert Half here, it’s free.

Best Q1: First Advantage (NASDAQ: FA)

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $354.6 million, up 109% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

First Advantage delivered the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9.9% since reporting. It currently trades at $16.46.

Is now the time to buy First Advantage? Access our full analysis of the earnings results here, it’s free.

Insperity (NYSE: NSP)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.86 billion, up 3.4% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ EPS guidance for next quarter estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 26.6% since the results and currently trades at $57.60.

Read our full analysis of Insperity’s results here.

Barrett (NASDAQ: BBSI)

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Barrett reported revenues of $292.6 million, up 10.1% year on year. This number topped analysts’ expectations by 2.3%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EPS estimates.

The stock is up 5.1% since reporting and currently trades at $42.83.

Read our full, actionable report on Barrett here, it’s free.

Alight (NYSE: ALIT)

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE: ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Alight reported revenues of $548 million, down 2% year on year. This result surpassed analysts’ expectations by 1.2%. It was a strong quarter as it also put up a solid beat of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance meeting analysts’ expectations.

Alight had the weakest full-year guidance update among its peers. The stock is up 6% since reporting and currently trades at $5.55.

Read our full, actionable report on Alight here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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