Robert Walters (RWA) H2 2025 earnings summary

Executive summary

• Market volatility and macro turbulence in 2025 led to a 14–15% year-on-year decline in net fee income, with cautious client and candidate sentiment.

• Significant cost reductions and a focus on balance sheet strength resulted in a 15% reduction in average group headcount and over GBP 27 million in operating cost savings.

• The group reported an operating loss of GBP 14.9 million and a loss before tax of GBP 19.6 million; no interim or final dividend was declared to preserve balance sheet strength.

• Early signs of recovery were observed in the UK, Spain, and New Zealand in H2 2025, with positive net fee growth continuing into early 2026, though volatility persists globally.

• Strategic focus on geographic penetration, service line diversification, and reorganization to capture growth in a significant addressable market estimated at over GBP 60 billion.

Financial highlights

• Net fee income declined 14–15% year-on-year in constant currency, falling to GBP 274.2 million from GBP 321.4 million.

• Operating loss for the year was GBP 14.9 million; loss before tax was GBP 19.6 million.

• Net cash at year-end was GBP 26.2 million, down from GBP 52.5 million, with negative free cash flow of GBP 14.6 million.

• Operating costs reduced by over GBP 27 million, mainly through staff cost reductions and structural actions.

• Basic loss per share widened to (40.7)p from (9.1)p year-over-year.

Outlook and guidance

• Group net fees for 2026 expected to be slightly below 2025, reflecting ongoing market volatility.

• Recovery is more entrenched in the UK, Spain, and New Zealand, while Northern Europe remains muted.

• No significant restructuring charges expected in 2026; headcount to remain broadly stable.

• Capex and effective tax rate for 2026 expected to be broadly similar to 2025.