Exhibit 99.1 KFORCE REPORTS FIRST QUARTER 2025 REVENUE OF $330.0 MILLION AND EPS OF $0.45 TAMPA, FL, April 28, 2025 — Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the first quarter of 2025. Joseph J. Liberatore, President and Chief Executive Officer, said, "Our first quarter performance was generally consistent with our expectations. Like many others, we entered 2025 with a general sense of optimism for U.S. e ...

Financial Performance - Revenue for 2024 was $1,405,308, a decrease of 8.2% from $1,531,756 in 2023[196] - Gross profit for 2024 was $385,445, down 9.7% from $427,066 in 2023[196] - Net income for 2024 was $50,414, representing a decline of 17.4% compared to $61,075 in 2023[196] - Earnings per share (diluted) for 2024 was $2.68, down from $3.13 in 2023, a decrease of 14.4%[196] - Future revenue growth is expected to be influenced by changes in client demand and economic conditions[19] - Net income for 2024 was $50,414 thousand, a decrease of 17.5% from $61,075 thousand in 2023 and a decrease of 33.2% from $75,431 thousand in 2022[204] - Cash provided by operating activities in 2024 was $86,874 thousand, slightly down from $91,465 thousand in 2023[204] - Total stockholders' equity as of December 31, 2024, was $154,618 thousand, a decrease from $159,080 thousand in 2023[201] Assets and Liabilities - Total current assets decreased to $225,406 in 2024 from $244,459 in 2023, a decline of 7.8%[199] - Long-term debt under the credit facility was $32.7 million as of December 31, 2024, down from $41.6 million in 2023[199] - Total fixed assets, net decreased to $7,723 thousand in 2024 from $9,418 thousand in 2023, primarily due to increased depreciation[263] - Total accounts payable and other accrued liabilities decreased from $64.8 million in 2023 to $61.8 million in 2024, a reduction of approximately 4.6%[271] - Deferred compensation payable increased from $5.9 million in 2023 to $8.6 million in 2024, representing a growth of approximately 45.8%[277] - Total other long-term liabilities increased from $54.3 million in 2023 to $58.1 million in 2024, an increase of approximately 7.9%[284] Investments and Expenditures - The firm expects to continue strategic investments in technology and operational efficiency to improve margins[15] - Capital expenditures in 2024 were $7,573 thousand, compared to $7,763 thousand in 2023[204] - Capitalized software increased to $29,090 thousand in 2024, reflecting investments in technology capabilities[264] Stock and Compensation - Dividends paid in 2024 were $28,236 thousand, an increase from $27,562 thousand in 2023 and $24,027 thousand in 2022[204] - The company repurchased common stock worth $41,938 thousand in 2024, down from $75,024 thousand in 2023[204] - The company recognized stock-based compensation expense of $14,044 thousand in 2024, down from $17,747 thousand in 2023[204] - Stock-based compensation expense for 2024 was $14.0 million, down from $17.7 million in 2023, reflecting a decrease of approximately 20.9%[287] - The total intrinsic value of restricted stock vested in 2024 was $15.1 million, down from $22.5 million in 2023, a decrease of approximately 33.3%[291] Tax and Compliance - The effective tax rate for 2024 was 25.4%, down from 28.4% in 2023, influenced by a reduction in non-deductible expenses[265] - The company is adopting new guidance for income tax disclosures effective January 1, 2025, which is not expected to have a material effect on consolidated financial statements[256] Operational Insights - The company maintained effective internal control over financial reporting as of December 31, 2024[189] - The company anticipates challenges in attracting talent due to a constrained supply of consultants in a high-demand environment[19] - The allowance for credit losses decreased to $916 thousand in 2024 from $1,106 thousand in 2023, indicating improved credit quality[262] - Trade receivables, net increased by $17,638 thousand in 2024, compared to an increase of $35,301 thousand in 2023[204] - The company had a deferred income tax provision of $(1,871) thousand in 2024, compared to $1,647 thousand in 2023[204] - As of December 31, 2024 and 2023, the company reported no material contract liabilities[221] - Trade accounts receivable reserves were less than 1% of gross trade receivables at both December 31, 2024 and 2023[231] Legal and Risk Management - Kforce is involved in legal proceedings that are not expected to have a material adverse effect on its consolidated financial statements[295] - The company maintains liability insurance covering various risks, but there is no assurance that it will cover all events or that coverage limits will be sufficient[295]

Revenue Performance - Fourth quarter 2024 revenue was $343.8 million, down from $363.4 million in the same quarter of 2023, representing a year-over-year decrease of 5.5%[4] - Full year 2024 revenue totaled $1.41 billion, a decline of 8.2% compared to $1.53 billion in 2023[10] - Technology Flex revenue decreased 3.7% year-over-year, while FA Flex revenue saw a significant drop of 22.1% year-over-year[4] - Total revenue for Q4 2024 decreased to $343,782,000 from $353,319,000 in Q3 2024, and $363,447,000 in Q4 2023, reflecting a year-over-year decline of 5.4%[20] - Flex revenue in Q4 2024 was $337,104,000, down from $345,832,000 in Q3 2024 and $355,611,000 in Q4 2023, indicating a year-over-year decrease of 5.2%[20] - Direct hire revenue for Q4 2024 was $6,678,000, a decline from $7,487,000 in Q3 2024 and $7,836,000 in Q4 2023, representing a year-over-year drop of 15.0%[20] Earnings and Margins - Diluted earnings per share for Q4 2024 were $0.60, a decrease of 26.8% compared to $0.82 in Q4 2023[4] - Operating margins for the full year 2024 were 5.0%, down 70 basis points from the previous year[10] - Gross profit margins for Q4 2024 were 27.0%, a decrease of 30 basis points year-over-year[4] - Adjusted EBITDA for Q4 2024 was $20,565,000, down from $23,808,000 in Q3 2024 and $26,134,000 in Q4 2023, indicating a year-over-year decline of 21.5%[32] - The company reported a net income of $11,061,000 for Q4 2024, compared to $14,209,000 in Q3 2024 and $15,716,000 in Q4 2023, reflecting a year-over-year decrease of 29.5%[32] Shareholder Returns - The company returned $64.7 million to shareholders in 2024 through share repurchases and dividends, representing approximately 75% of operating cash flows[10] - The Board of Directors approved a quarterly dividend increase to $0.39 per share, marking the sixth consecutive annual increase[6] Future Guidance - The company expects first quarter 2025 revenue guidance between $330 million and $338 million, with earnings per share projected between $0.44 and $0.52[11] - The company maintains a strong balance sheet and aims to capture additional market share in 2025[3] Cash Flow and Tax - Free cash flow for the year ended December 31, 2024, was $79,301,000, compared to $83,702,000 in 2023, showing a decrease of 5.4%[27] - The effective tax rate for the year ended December 31, 2023, was 28.4%, with a net income of $61,075,000, compared to an adjusted net income of $68,008,000 after accounting for adjustments[29] Placement and Fees - The average fee for direct hire placements in Q4 2024 was $20,756, down from $21,907 in Q3 2024 and slightly up from $20,727 in Q4 2023[20] - The company experienced a decrease in placements, with 322 in Q4 2024 compared to 342 in Q3 2024 and 378 in Q4 2023, marking a year-over-year decline of 14.8%[20] - Total Flex revenue for Q4 2024 showed a sequential decline of 2.5% compared to Q3 2024, and a year-over-year decline of 8.6%[24]

Group 1 - Kforce (NYSE: KFRC) is considered a strong buy with an expected share price exceeding $85 in the next 12 months, indicating a potential return of approximately 40% [1] - The stock price has decreased from its 2021 highs of over $80 to the current level of $60 [1] Group 2 - The analysis is based on identifying temporary market mispricing in stocks with strong fundamentals [1]

Company Overview - Kforce Inc. is a provider of professional staffing services and solutions, specializing in technology, finance and accounting [2] - The company has a 60-year history of deploying highly skilled professionals on a temporary and direct-hire basis, with over 20,000 experts working with a significant majority of the Fortune 500 each year [2] - Kforce's approach is characterized by deep market knowledge and multi-industry expertise, aiming to deliver tailored solutions for clients [2] Upcoming Events - Kforce management will participate in the UBS Global Technology and AI Conference on December 3, 2024, presenting from 10:55 to 11:25 am MST [1] - The investor presentation and live webcast will be accessible on Kforce's investor relations website [1]

Revenue Performance - Revenue for the nine months ended September 30, 2024 decreased 9.1% to $1.06 billion from $1.17 billion in the comparable period in 2023[38] - Flex revenue for the nine months ended September 30, 2024 decreased 8.7% to $1.04 billion from $1.14 billion in the comparable period in 2023[38] - Direct Hire revenue for the nine months ended September 30, 2024 decreased 26.4% to $22.2 million from $30.1 million in the comparable period in 2023[38] - Year-to-date revenue growth rates for Technology Flex and FA Flex were (7.2)% and (23.9)%, respectively, indicating a decline in performance compared to the previous year[52] Profitability Metrics - Net income for the nine months ended September 30, 2024 decreased 13.2% to $39.4 million, or $2.08 per share, from $45.4 million, or $2.31 per share, for the nine months ended September 30, 2023[38] - Flex gross profit margin for the nine months ended September 30, 2024 decreased 10 basis points to 26.0% from 26.1% in the comparable period in 2023[38] - For the three months ended September 30, 2024, the total gross profit percentage increased by 20 basis points to 27.9% compared to the same period in 2023, driven by improved Technology Flex gross profit margins[46] - The Flex gross profit percentage for the three months ended September 30, 2024, increased by 40 basis points to 26.3% compared to the same period in 2023, while it decreased by 10 basis points for the nine months ended September 30, 2024[47] - Technology Flex gross profit margins increased by 60 basis points for the three months ended September 30, 2024, primarily due to improvements in the spread between bill and pay rates and lower healthcare costs[47] - FA Flex gross profit margins decreased by 110 basis points for the three months ended September 30, 2024, primarily due to a tighter pricing environment and a greater mix of lower margin projects[47] - Adjusted EBITDA for the nine months ended September 30, 2024, was $69.1 million, a decrease of 22.9% from $89.6 million in the same period of 2023[62] Cash Flow and Financing - Cash provided by operating activities was $65.1 million during the nine months ended September 30, 2024, compared to $69.1 million for the same period in 2023[38] - Operating cash flows for the nine months ended September 30, 2024, were $65.1 million, down from $69.1 million in the same period of 2023, reflecting lower profitability levels and collections on trade receivables[64] - Total cash used in financing activities was $57.2 million for the nine months ended September 30, 2024, compared to $66.5 million in the same period of 2023, primarily due to a decrease in stock repurchases[64] - The company repurchased approximately 324 thousand shares of common stock at a total cost of approximately $20.3 million during the nine months ended September 30, 2024[67] - The company declared and paid quarterly dividends totaling $21.3 million ($1.14 per share) for the nine months ended September 30, 2024, representing a 6% increase per share compared to $20.9 million ($1.08 per share) in 2023[65] Employment and Market Conditions - The national U.S. unemployment rate increased to 4.1% in September 2024 from 3.7% in December 2023[40] - The technology temporary staffing industry is estimated to decline 7% in 2024, while the finance and accounting temporary staffing industry is estimated to decline 9%[40] Investment and Capital Expenditures - Capitalized software amortization increased by 93.0% for the three months ended September 30, 2024, reflecting significant investment in technology[51] - Cash used in investing activities was $7.9 million for the nine months ended September 30, 2024, compared to $2.5 million in the same period of 2023[64] Tax and Compliance - The effective tax rate for the nine months ended September 30, 2024, was 25.1%, down from 28.9% in the same period in 2023, primarily due to a reduction in nondeductible executive compensation[53] - The company expects to maintain compliance with financial covenants under its credit facility[66] Shareholder Returns - The Firm returned $41.6 million of capital to shareholders in the form of open market repurchases totaling $20.3 million and quarterly dividends totaling $21.3 million during the nine months ended September 30, 2024[38] Working Capital - As of September 30, 2024, the company had $123.4 million in working capital, down from $141.5 million at December 31, 2023[63] - The outstanding balance under the Amended and Restated Credit Facility was $26.9 million as of September 30, 2024, with $172.1 million available for borrowing[66]

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $353.3 million, exceeding the midpoint of expectations, but declined 0.8% sequentially and 6.8% year-over-year on a billing day basis [11][23] - Earnings per share were $0.75, surpassing the high end of guidance [23] - Overall gross margins increased 10 basis points sequentially and 20 basis points year-over-year to 27.9% [23] - Flex margins in the technology business increased 20 basis points sequentially and 60 basis points year-over-year [15][24] Business Line Data and Key Metrics Changes - Flex revenues in the technology business declined 0.6% sequentially and 5.1% year-over-year on a billing day basis [11] - Average bill rates in the technology business remained stable at $90 [13] - Flex margins in the technology business improved due to a more constructive pricing environment and growth in solutions business [24] Market Data and Key Metrics Changes - The financial services vertical showed improvement for the second consecutive quarter, with notable growth in manufacturing and professional services industries [17] - The FA business, representing 8% of revenues, declined 2.2% sequentially and 21.4% year-over-year on a billing day basis [19] Company Strategy and Development Direction - The company is establishing a development center in Pune, India, expected to be operational in January 2025, to enhance service offerings and meet client demands [7][16] - The focus remains on high-end technology resources and solutions engagements, which are expected to drive future growth [9][15] - The company aims to achieve double-digit operating margins at revenues slightly greater than $2 billion in the long term [30] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty due to geopolitical tensions and the upcoming U.S. election, but expressed optimism about a potential soft landing in the U.S. economy [5][6] - Clients are expected to remain cautious with discretionary spending until there is more clarity in the economic outlook [5] - The backlog of critical technology investments is anticipated to be prioritized once macro uncertainties clear [5][6] Other Important Information - The company plans to continue investing in strategic priorities to enhance top-line growth and profitability [6] - A charitable contribution of $500,000 was made to aid recovery efforts from recent hurricanes [3] Q&A Session Summary Question: Inquiry about gross margin improvements - Management indicated that the improvement in flex margins was primarily driven by bill pay spreads, with health insurance costs contributing on a year-over-year basis [32][33] Question: Discussion on revenue trends and client profitability - Management emphasized that client confidence is crucial for unlocking pent-up demand, with expectations for technology budgets to increase in 2025 [35][36] Question: Clarification on the India development center - The India facility is expected to enhance managed services and support U.S.-based clients, with gradual revenue contribution anticipated [38][39] Question: Impact of holiday shutdowns on guidance - Management acknowledged the potential for holiday disruptions but stated that guidance was based on a balanced assessment of current trends [62]

Kforce (KFRC) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 8.70%. A quarter ago, it was expected that this staffing company would post earnings of $0.73 per share when it actually produced earnings of $0.75, delivering a surprise of 2.74%. Over the last four quarters, the company h ...

Revenue Performance - Revenue for Q3 2024 was $353.3 million, a decrease of 0.8% sequentially and 5.3% year over year[2] - Total revenue for Q3 2024 was $353.3 million, a decrease of 5.3% from Q3 2023's $373.1 million[9] - Flex revenue decreased to $345.8 million in Q3 2024, down 5.0% year-over-year from $364.2 million[9] - Technology Flex revenue decreased 0.6% sequentially and 3.6% year over year[2] - Direct hire revenue fell to $7.5 million in Q3 2024, a decline of 16.5% compared to $9.0 million in Q3 2023[9] - Total placements decreased to 342 in Q3 2024, down from 431 in Q3 2023, representing a decline of 20.7%[9] Profitability Metrics - Diluted earnings per share for Q3 2024 were $0.75, an increase of 38.9% year over year[2] - Gross profit margins for Q3 2024 were 27.9%, an increase of 10 basis points sequentially and 20 basis points year over year[2] - Gross profit margin (GP %) improved to 27.9% in Q3 2024 from 27.7% in Q3 2023[9] - Adjusted EBITDA decreased to $23,808,000 from $24,753,000 in the previous quarter and down from $29,039,000 year-over-year[18] - Net income for the three months ended September 30, 2024, was $14,209,000, a slight increase from $14,157,000 in the previous quarter and a significant rise from $10,575,000 year-over-year[18] Expenses and Cash Flow - SG&A expenses as a percentage of revenue for Q3 2024 were 22.2%, increasing 40 basis points sequentially[2] - Free cash flow for the nine months ended September 30, 2024, was $56.6 million, down from $63.0 million in the same period of 2023[14] - Interest expense, net, was $429,000, down from $504,000 in the previous quarter and up from $181,000 year-over-year[18] - Income tax expense for the quarter was $4,078,000, a decrease from $5,039,000 in the previous quarter and $5,277,000 year-over-year[18] Future Guidance - Guidance for Q4 2024 estimates revenue between $337 million and $345 million[3] - Expected earnings per share for Q4 2024 is projected to be between $0.56 and $0.64[3] Shareholder Returns - The company returned $17.1 million to shareholders through open market repurchases and dividends in Q3 2024[2] - The company plans to pay a cash dividend of $0.38 per share on December 20, 2024[2] Community Support - Kforce will donate $500,000 to aid recovery efforts in areas affected by recent hurricanes[1] Taxation - The effective tax rate for Q3 2024 was 33.3%, compared to 27.8% as adjusted[16] Organizational Changes - The company did not incur any organizational realignment activities or legal settlement expenses in the current quarter, contrasting with $3,662,000 and $2,175,000 respectively in the same quarter last year[18]

TAMPA, Fla., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NYSE: KFRC), a provider of professional staffing services and solutions, will release third quarter results post-market on Monday, October 28, 2024, followed by a conference call at 5:00 pm ET to discuss the results. The dial-in number is (800) 715-9871 and the conference passcode is "Kforce". A replay of the call will be available on our website at https://investor.kforce.com for one year after the call. About Kforce Inc. Kforce is a solutions fir ...