Kforce(US:KFRC)2025-11-03 21:05Revenue 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].