Kforce (KFRC) closed the last trading session at $35.28, gaining 8.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $45.13 indicates a 27.9% upside potential.The average comprises four short-term price targets ranging from a low of $34.50 to a high of $71.00, with a standard deviation of $17.31. While the lowest estimate indicates a decline of 2.2% from the current price level, t ...

Kforce (KFRC) came out with quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.51%. A quarter ago, it was expected that this staffing company would post earnings of $0.57 per share when it actually produced earnings of $0.63, delivering a surprise of +10.53%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $332 million, representing a 3% sequential improvement per billing day [10] - Fiscal 2025 revenues were approximately $1.33 billion, a decrease of roughly 5% year-over-year [21] - GAAP earnings per share for Q4 2025 was $0.30, while adjusted earnings per share was $0.43, falling below guidance due to higher healthcare costs [22] - Overall gross margins were 27.2%, down 50 basis points sequentially but up 20 basis points year-over-year [22][23] Business Line Data and Key Metrics Changes - Flex revenues in the technology business grew sequentially by 3% and in the finance and accounting (F&A) business by 5.7% in Q4 [10] - Flex revenues in the F&A business declined 2.4% year-over-year but saw 5.7% sequential growth in Q4 [16] - The average bill rate in the technology business remained steady at approximately $90 per hour over the past three years [14] Market Data and Key Metrics Changes - Sequential growth was observed in eight of the top ten industries served by the company [11] - The company noted a significant increase in demand for consulting-oriented engagements, which typically command higher bill rates [15] Company Strategy and Development Direction - The company is focusing on strategic initiatives such as the implementation of Workday for HCM and Financials, and enhancing offshore delivery capabilities in India [4] - The integrated approach to service delivery across various technologies and skill sets is a key driver of success [12] - The company aims to achieve approximately 8% operating margin when annual revenues return to $1.7 billion, which is more than 100 basis points higher than in 2022 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recent operating trends, suggesting a return to more typical cyclicality in demand for flexible talent solutions [5][6] - The company anticipates that clients may increasingly pursue flexible talent models due to economic uncertainty and the evolving landscape of AI [7] - Management highlighted the importance of change management in successfully implementing AI initiatives, noting that many organizations are still in the early stages of adapting to these technologies [34] Other Important Information - The company announced further refinements in headcount and organizational structure to align with current revenue levels [18] - Operating cash flows were $19.7 million, and the return on equity remains at approximately 30% [26] Q&A Session Summary Question: Can you elaborate on the sequential improvement in revenue per billing day and the impact of AI? - Management noted that the positive trend in temporary and contract employment began in August 2025, coinciding with the company's sequential improvements [31] Question: What were the end-of-year dynamics observed from clients? - Clients maintained more consultants on staff towards the end of the year, leading to a stronger start in Q1 2026 compared to previous years [38] Question: How do you expect margins to hold up in 2026? - Management expects operating margins to improve in 2026 even without significant revenue growth, driven by cost efficiencies and a favorable mix of business [66]

Kforce (NYSE:KFRC) Q4 2025 Earnings call February 02, 2026 05:00 PM ET Company ParticipantsDave Kelly - COOJeff Hackman - CFOJoe Liberatore - President and CEOKartik Mehta - Executive Managing Director and Director of ResearchTyler Barishaw - Equity Research AssociateConference Call ParticipantsJosh Chan - Executive Director and Equity Research AnalystMark Marcon - Senior Research AnalystTrevor Romeo - Global Services Research AnalystOperatorWell, good day everyone and welcome to the Kforce Q4 2025 earnings ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $332 million, representing a 3% sequential improvement per billing day [9] - Fiscal 2025 revenues were approximately $1.33 billion, a decrease of roughly 5% year-over-year [18] - GAAP earnings per share for Q4 2025 was $0.30, while adjusted earnings per share was $0.43, falling below guidance due to higher healthcare costs [19][20] - Overall gross margins were 27.2%, down 50 basis points sequentially but up 20 basis points year-over-year [20][21] Business Line Data and Key Metrics Changes - Flex revenues in the technology business grew sequentially by 3% and in the finance and accounting (F&A) business by 5.7% in Q4 [9] - Flex revenues in the F&A business declined 2.4% year-over-year but saw a 5.7% sequential growth in Q4 [14] - The average bill rate in the technology business remained steady at approximately $90 per hour over the past three years [12] Market Data and Key Metrics Changes - Sequential growth was observed in eight of the top ten industries served by the company [10] - The company noted a significant increase in demand for consulting solutions, particularly in data and digital practices, which are growing at double-digit rates [50] Company Strategy and Development Direction - The company is focusing on a domestic organic growth strategy, minimizing distractions and enhancing client partnerships [7] - Strategic initiatives include the implementation of Workday for HCM and financials, and the evolution of offshore delivery capabilities in India [4] - The company aims to achieve approximately 8% operating margin when annual revenues return to $1.7 billion, which is over 100 basis points higher than in 2022 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recent operating trends, suggesting a potential return to typical cyclicality in client demand [5] - The company anticipates that clients are increasingly prioritizing flexible talent solutions amid economic uncertainty [6] - There is a belief that the returns from AI investments may take longer to realize and will be more specific to unique business problems [3] Other Important Information - The company announced further refinements in headcount and organizational structure to align with current revenue levels [16] - Operating cash flows were $19.7 million, and the return on equity remains at approximately 30% [24] Q&A Session Summary Question: Can you elaborate on the sequential improvement in revenue per billing day and the impact of AI? - Management noted that the positive trend began in August 2025, coinciding with a positive turn in the American Staffing Association Index, and emphasized the complexity of executing corporate AI initiatives [30][31] Question: What are the dynamics of client demand and project execution? - Management indicated that clients are increasingly unable to wait to execute technology projects due to the foundational work required for AI and modernization efforts [47][48] Question: How do you see the direct hire business evolving in 2026? - Management expressed optimism for small to mid-sized businesses in direct hire, while large enterprises have slowed their hiring [80]

Revenue Performance - Fourth quarter 2025 revenue was $332.0 million, a decrease of 0.2% sequentially and a decrease of 3.4% year over year[5]. - Full year 2025 revenue was $1.33 billion, a decrease of 5.4% year over year[5]. - Total revenue for Q4 2025 was $332,018,000, a decrease of 0.2% from Q3 2025 and a decrease of 3.4% from Q4 2024[20]. - Flex revenue in Q4 2025 was $326,093,000, down from $326,263,000 in Q3 2025 and $337,104,000 in Q4 2024, with a Flex GP margin of 25.8%[20]. - Year-over-year total Flex revenue decreased by 5.3% in Q4 2025 compared to Q4 2024[24]. Profitability Metrics - Gross profit margin for the fourth quarter was 27.2%, down 50 basis points sequentially but up 20 basis points year over year[5]. - Diluted earnings per share for the fourth quarter were $0.30, with adjusted diluted earnings per share at $0.43, a decrease of 31.7% sequentially and 28.3% year over year[5]. - Adjusted EBITDA for Q4 2025 was $16,748,000, a decrease of 14.3% from $19,407,000 in Q3 2025 and a decrease of 18.5% from $20,565,000 in Q4 2024[31]. - Adjusted EBITDA for the year 2025 totaled $72,790,000, a decrease of 18.8% from $89,687,000 in 2024[32]. - Net income for the year ended December 31, 2025, was $34,825,000, down 30.9% from $50,414,000 in 2024[32]. Expenses and Costs - SG&A expenses as a percentage of revenue for the fourth quarter were 24.2%, an increase of 140 basis points sequentially and 220 basis points year over year[5]. - Selling, general and administrative expenses for Q4 2025 were $80,329,000, resulting in an operating margin of 2.6%[28]. - Free cash flow for the year ended December 31, 2025, was $46,805,000, a decrease from $79,301,000 in 2024[26]. - Total depreciation and amortization for 2025 was $5,548,000, compared to $5,922,000 in 2024, reflecting a decrease of 6.3%[32]. - Stock-based compensation expense for the year 2025 was $13,742,000, a slight decrease of 2.2% from $14,044,000 in 2024[32]. - Interest expense, net, increased to $3,122,000 in 2025, up 49% from $2,097,000 in 2024[32]. - Income tax expense for 2025 was $12,120,000, down 29.7% from $17,210,000 in 2024[32]. - Organizational realignment activities incurred an expense of $1,200,000 in 2025, with no such expense reported in 2024[32]. - Other non-recurring expenses amounted to $2,233,000 in 2025, with no comparable expenses in 2024[32]. Shareholder Returns - The Board of Directors approved a quarterly dividend increase to $1.60 per share, marking the seventh consecutive annual increase[6]. - The company returned $76.0 million in capital to shareholders through share repurchases and dividends during 2025, representing over 100% of operating cash flows[10]. Future Outlook - First quarter 2026 guidance estimates revenue between $324 million and $332 million, with earnings per share projected between $0.37 and $0.45[10]. - The implementation of Workday as a future state enterprise cloud application is expected to be transformational for the company[2]. - The company is focused on streamlining operating costs through various initiatives, including the write-off of previously capitalized software[31].

TAMPA, Fla.--(BUSINESS WIRE)-- #kforce--Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the fourth quarter and full year of 2025. References to "as adjusted†figures within this press release relate to results for the fourth quarter and year ended December 31, 2025, as adjusted for certain expenses. These references pertain to non- GAAP measures that are more fully described in the Adjusted Financial Performanc. ...

Truist raised the firm’s price target on Kforce (KFRC) to $38 from $35 and keeps a Hold rating on the shares as part of a broader research note on IT Staffing names. Firms have indicated improving business conditions and expect 4%-6% y/y revenue growth in 2026, while private companies cited that business conditions improved throughout the fourth quarter and January is off to a solid start in 2026, the analyst tells investors in a research note. Published first on TheFly – the ultimate source for real-time, ...

Industry Overview - The Staffing Firms industry is expected to gradually recover to pre-pandemic levels, enabling companies to pay regular dividends [1] - The industry encompasses a wide range of human resources and workforce solutions, including recruitment, payroll administration, and organizational planning [2] Market Trends - There is stable demand in the mature business services industry, with revenues and cash flows anticipated to recover to pre-pandemic levels [3] - The adoption of remote work and hybrid models has significantly increased, prompting staffing agencies to focus on flexible staffing solutions [4] - Technological advancements are being implemented to enhance operational efficiency, with AI-driven tools and platforms becoming more prevalent [5] Industry Performance - The Zacks Staffing Firms industry currently holds a Zacks Industry Rank of 227, placing it in the bottom 7% of 244 Zacks industries, indicating sluggish near-term prospects [6] - Over the past year, the industry has underperformed the S&P 500, declining 39.2% compared to the S&P 500's growth of 18.9% [8] Valuation Metrics - The industry is currently trading at an EV-to-EBITDA ratio of 5.76X, significantly lower than the S&P 500's 18.98X and the sector's 10.7X [9] Company Highlights Resources Connection (RGP) - RGP has seen favorable international growth, particularly in Europe, India, Japan, and the Philippines, with steady revenues and improved gross margins [14] - The company holds $90 million in cash with zero current debt, indicating a strong balance sheet [16] - RGP's current ratio is 2.64, suggesting strong short-term debt coverage capability [16] - The Zacks Consensus Estimate for RGP's 2025 earnings per share has been revised up by 14.3% [17] Kforce (KFRC) - Kforce reported a top line of $332.6 million and 63 cents in EPS, exceeding expectations [18] - The company maintains a strong balance sheet with zero current debt and a current ratio of 1.88 [20] - KFRC's shares have gained 21.1% over the past three months [21] HireQuest (HQI) - HQI's system-wide sales grew 6.1% year-over-year, with a net income of $2.3 million in the third quarter of 2025 [21][22] - The company's current ratio is 2.4, indicating a strong liquidity position [23] - HQI's shares have gained 29.6% over the past three months [23]

Core Insights - Kforce Inc. will participate in the Barclays 43rd Annual Industrial Select Conference on February 18, 2026, with an investor presentation available online [1] Company Overview - Kforce Inc. specializes in technology, finance and accounting, and other professional staffing services, aiming to assist companies in achieving digital transformation goals through tailored solutions [2] - The firm has a history of 60 years in deploying skilled professionals on both temporary and direct-hire bases, with approximately 18,000 experts collaborating with Fortune 500 and other leading companies annually [3] Business Model - Kforce's integrated approach focuses on delivering scalable and flexible outcomes shaped by deep market knowledge and multi-industry expertise, emphasizing strategic partnerships and knowledge sharing [3]