Our integrated approach is rooted in 60 years of proven success deploying highly skilled professionals on a temporary and direct-hire basis. Each year, approximately 18,000 talented experts work with Fortune 500 and other leading companies. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing®. TAMPA, Fla.--(BUSINESS WIRE)--Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced that management will ...

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.Below are the ratings of the most accurate analysts for three high-yield ...

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.Below are the ratings of the most accurate analysts for three high-yield ...

Core Insights - Kforce Inc. has experienced declining earnings for three consecutive years due to a slowing job market, but there are signs that the worst may be over for the company, which specializes in technology, finance, and accounting staffing services [1] Financial Performance - In Q3 2025, Kforce reported earnings of $0.63, beating the Zacks Consensus by $0.06, marking the first earnings surprise after two consecutive misses [2] - Revenue for the quarter decreased by 5.9% year-over-year to $332.6 million and also saw a slight decline of 0.5% quarter-over-quarter [2] - The Technology and Finance and Accounting segments showed better-than-expected results, with the Finance and Accounting business growing 6.9% sequentially [3] Analyst Outlook - Analysts are optimistic about Kforce's prospects heading into 2026, with two earnings estimates revised higher for both 2025 and 2026 in the last 60 days [4] - The 2025 Zacks Consensus estimate is now $2.13, reflecting a decline of 20.5% from the previous year, while the 2026 estimate is projected at $2.28, indicating a potential earnings growth of 7% [4][5] Valuation Metrics - Kforce is currently trading at a forward P/E ratio of 14.7, which is considered attractive for value investors [6][9] - The company has a price-to-sales (P/S) ratio of 0.4, suggesting that investors are getting $1 of sales for just $0.40 [11] - Kforce is also shareholder-friendly, with a dividend yield of 5% and a stock repurchase plan expanded to $100 million [11] Market Position - The staffing industry has faced challenges in recent years, placing Kforce in the bottom 5% of all Zacks Rank industries [11] - Despite the downturn, Kforce is viewed as a potential turnaround story within the staffing sector [12]

Financial Performance - Revenue for Q3 2025 was $332,645, a decrease of 5.8% compared to $353,319 in Q3 2024[14] - Gross profit for Q3 2025 was $92,257, down 6.5% from $98,567 in Q3 2024[14] - Net income for the nine months ended September 30, 2025, was $29,662, a decline of 24.7% from $39,353 in the same period of 2024[20] - Earnings per share (EPS) for Q3 2025 was $0.63, compared to $0.76 in Q3 2024, reflecting a decrease of 17.1%[14] - Revenue for the nine months ended September 30, 2025, decreased 6.1% to nearly $1.00 billion from $1.06 billion in the comparable period in 2024[55] - Flex revenue for the nine months ended September 30, 2025, decreased 6.0% to $0.98 billion from $1.04 billion in the comparable period in 2024[55] - Direct Hire revenue for the nine months ended September 30, 2025, decreased 11.0% to $19.7 million from $22.2 million in the comparable period in 2024[55] - Net income for the nine months ended September 30, 2025, decreased 24.6% to $29.7 million, or $1.66 diluted earnings per share, from $39.4 million, or $2.08 diluted earnings per share, for the nine months ended September 30, 2024[55] - Free Cash Flow for the nine months ended September 30, 2025, was $30.1 million, down from $56.6 million in 2024[79] - Adjusted EBITDA for the nine months ended September 30, 2025, was $56.0 million, compared to $69.1 million in 2024[81] Assets and Liabilities - Total assets increased to $374,152 as of September 30, 2025, up from $357,834 at the end of 2024[16] - Cash and cash equivalents rose to $1,252 as of September 30, 2025, compared to $349 at the end of 2024[16] - Long-term debt increased significantly to $65,000 from $32,700 at the end of 2024, indicating a rise in leverage[16] - The company had $65.0 million outstanding under the Amended and Restated Credit Facility as of September 30, 2025, up from $32.7 million at December 31, 2024[43] - As of September 30, 2025, the company had $65.0 million outstanding under its Amended and Restated Credit Facility, with $134.0 million available for borrowing[82] Cash Flow and Dividends - Cash provided by operating activities for the nine months ended September 30, 2025, was $41,937, down from $65,084 in 2024[20] - The company declared and paid quarterly dividends totaling $20.8 million for the nine months ended September 30, 2025, representing a 3% increase per share[87] - Dividends paid in Q3 2025 amounted to $20,778, slightly lower than $21,282 in Q3 2024[20] - The Firm returned $61.9 million of capital to shareholders in the form of open market repurchases totaling $41.1 million and quarterly dividends totaling $20.8 million during the nine months ended September 30, 2025[55] Stock Repurchase and Authorization - The company repurchased $41,450 worth of common stock during the nine months ended September 30, 2025[20] - The total authorization for the stock repurchase program was increased to $100.0 million in October 2025[32] - The company repurchased approximately 950 thousand shares of common stock at a total cost of approximately $41.1 million during the nine months ended September 30, 2025[32] - The company repurchased a total of 295,374 shares of common stock during the three months ended September 30, 2025, at an average price of $32.02 per share[105] - The total dollar value of shares that may yet be purchased under the repurchase plan is $22,347,693[105] Operational Performance - Selling, general and administrative expenses for the three months ended September 30, 2025, were $75.884 million, compared to $78.308 million for the same period in 2024[36] - The company reported income before income taxes of $14.244 million for the three months ended September 30, 2025, down from $18.287 million in the same period of 2024[36] - Total gross profit percentage decreased by 20 basis points for the three months and 40 basis points for the nine months ended September 30, 2025, compared to the same periods in 2024[67] - Technology Flex revenue decreased by 5.2% year-over-year for the nine months ended September 30, 2025[77] - FA Flex revenue saw a significant decline of 16.0% year-over-year for the nine months ended September 30, 2025[77] - Total Flex revenue experienced a year-over-year decrease of 6.0% for the nine months ended September 30, 2025[77] Credit Facilities and Financial Controls - The Firm entered into a senior secured credit facility with a maximum borrowing capacity of $200.0 million on November 5, 2025[50] - The company has a maximum borrowing capacity of $200 million under a new senior secured credit facility, with a maturity date of November 5, 2030[108] - The new credit facility includes a $10 million sublimit for standby and commercial letters and a $10 million sublimit for swingline loans[108] - The company maintains a fixed charge coverage ratio of not less than 1.25 to 1.00 and a total leverage ratio of no greater than 3.50 to 1.00 under the new credit facility[111] - The applicable margin for Term SOFR loans ranges from 1.250% to 1.625% based on the firm's total leverage ratio[110] Internal Controls and Risk Factors - As of September 30, 2025, the CEO and CFO concluded that the design and operation of the company's Disclosure Controls were effective[97] - No changes in internal control over financial reporting have materially affected the company's internal control during the last fiscal quarter[98] - The company has made accruals for certain legal proceedings, but does not expect these to have a material effect on its financial statements[102] - There have been no material changes in the risk factors previously disclosed in the 2024 Annual Report[103] Strategic Initiatives - The company continues to prioritize investments in strategic initiatives, including the implementation of Workday and leveraging AI capabilities[73]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $332.6 million, exceeding expectations, with earnings per share of $0.63, surpassing the high end of guidance [2][19] - Overall gross margins improved to 27.7%, up 60 basis points sequentially, while flex margins in the technology business increased by 50 basis points [19][20] - SG&A expenses as a percentage of revenue increased to 22.8%, primarily due to lower revenue and gross profit levels [20] Business Line Data and Key Metrics Changes - Technology business revenues declined 1.1% sequentially and 5.6% year-over-year, while finance and accounting business grew approximately 7% sequentially but declined slightly more than 8% year-over-year [11][19] - Consultants on assignment grew roughly 4% from early third quarter lows, indicating a positive trend in staffing [11][12] - Flex revenues in the finance and accounting business, which currently represent about 7% of total revenues, declined 7.3% year-over-year but saw 6.9% sequential growth [16] Market Data and Key Metrics Changes - The labor market remains weak, with prolonged stagnation in job gains, but internal KPIs improved throughout Q3, leading to an increase in consultants on assignment [4][11] - Demand for services is broad-based across various industries, with no specific industry driving growth, indicating a stable market environment [56][58] Company Strategy and Development Direction - The company is focused on organic growth strategies, emphasizing partnerships with clients to address critical business challenges [9][24] - There is a strong commitment to investing in AI readiness and evolving skill sets to meet growing client demands [9][15] - The company aims to achieve double-digit operating margins and approximately 8% profitability when annual revenues return to $1.7 billion [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and ability to deliver above-market results despite macroeconomic uncertainties [26] - The ongoing federal government shutdown and global trade negotiations create a challenging near-term outlook, but there is optimism for sequential growth in Q4 [3][4] - The company anticipates a sequential billing day increase in the technology business during Q4, supported by momentum from new engagements [15][19] Other Important Information - The company returned $16.2 million to shareholders through dividends and share repurchases, maintaining a strong balance sheet with conservative leverage [22][24] - The board approved an increase in share authorization to $100 million, reaffirming the company's commitment to returning capital to shareholders [23] Q&A Session Summary Question: Can you provide a sense of typical July through September performance compared to this year? - Management noted a 4% increase in consultants on assignment, indicating a healthy growth rate compared to pre-pandemic levels, though slightly lower than historical highs [28][29] Question: What contributed to the improvement in gross margins? - The increase in flex gross margins was attributed to lower healthcare costs and a favorable mix shift towards consulting engagements, which typically carry higher margins [30][32] Question: What is the company's exposure to H1B visa changes? - The company has minimal exposure as it does not sponsor new H1B visas, focusing instead on transitioning existing employees, thus expecting no immediate impact on talent access [34][36] Question: What types of AI-related projects are driving demand? - The majority of work involves foundational readiness, data modernization, and operational AI use cases, with a focus on measurable returns [42][44] Question: How close is the company to a staffing revenue bottom? - Management indicated promising signs of stabilization in staffing revenue, with growth observed in both staff augmentation and consulting services [49][50]

Revenue Performance - Revenue for Q3 2025 was $332.6 million, a decrease of 0.5% sequentially and 5.9% year over year[3]. - Technology Flex revenue decreased 1.2% sequentially and 5.5% year over year, while FA Flex revenue increased 6.9% sequentially but decreased 7.3% year over year[3]. - Total Flex revenue showed a year-over-year decline of 5.7% in Q3 2025[17]. - FA Flex revenue experienced a significant decline of 23.2% year-over-year in Q1 2025[17]. Profitability Metrics - Gross profit margin for the quarter was 27.7%, an increase of 60 basis points sequentially but a decrease of 20 basis points year over year[3]. - Diluted earnings per share for Q3 2025 was $0.63, an increase of 6.8% sequentially but a decrease of 16.0% year over year[3]. - The operating margin for Q3 2025 was 4.5%, remaining flat sequentially but decreasing by 80 basis points year over year[3]. - Adjusted EBITDA for Q3 2025 was $19,407,000, compared to $23,808,000 in Q3 2024, reflecting a decline in core profitability[22]. Shareholder Returns - The Board approved a fourth quarter cash dividend of $0.39 per share, payable on December 19, 2025[3]. - The company returned $16.2 million to shareholders through share repurchases and dividends in Q3 2025[3]. Guidance and Expectations - Guidance for Q4 2025 includes revenue estimates of $326 million to $334 million and earnings per share of $0.43 to $0.51[6]. - The company expects sequential billing day growth in both Technology and FA businesses in Q4 2025[2]. Cash Flow and Assets - Free Cash Flow for the nine months ended September 30, 2025, was $30,139,000, down from $56,583,000 in the same period of 2024[19]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $41,937,000, down from $65,084,000 in 2024[19]. - Total assets as of September 30, 2025, were $374.2 million, an increase from $357.8 million at the end of 2024[11]. - The change in cash and cash equivalents for the nine months ended September 30, 2025, was $903,000, compared to $8,000 in 2024[19]. Expenses - Capital expenditures for the nine months ended September 30, 2025, were $11,798,000, compared to $8,501,000 in 2024[19]. - The company incurred stock-based compensation expense of $3,034,000 in Q3 2025, which may affect future shareholder ownership[21]. - Interest expense, net for Q3 2025 was $758,000, an increase from $429,000 in Q3 2024[22].

Core Viewpoint - Kforce Inc. is set to release its third quarter results on November 3, 2025, after market hours, followed by a conference call to discuss the results [1] Company Information - Kforce Inc. is a provider of professional staffing services and solutions [1] - The conference call will take place at 5:00 pm ET, with a dial-in number provided for participants [1] - A replay of the conference call will be available on the company's investor relations website for one year following the call [1]

Core Insights - The commentary on Kforce Inc. (NYSE: KFRC) reaffirms a bullish outlook on the professional staffing services company, indicating confidence in its performance and market position [1]. Company Overview - Kforce Inc. specializes in professional tech staffing solutions, positioning itself as a key player in the staffing industry [1]. Investment Strategy - The investment approach focuses on acquiring undervalued, profitable stocks with strong balance sheets and minimal debt, suggesting a disciplined investment philosophy [1]. - The strategy includes writing calls against positions to generate additional income, highlighting a proactive income generation method [1]. Risk Management - Risk management is emphasized through position sizing and the use of trailing stop losses, indicating a structured approach to mitigating potential losses [1].