Kforce (KFRC) AI Stock Analysis

• Market Cap: $478.34M
• Dividend Yield: 5.12%
• Average Volume (3M): 236.35K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.65
• Revenue Growth: -5.91%
• EPS Growth: -23.01%
• Country: US
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.43
• Shares Outstanding: 18,278,000
• 10 Day Avg. Volume: 245,536
• 30 Day Avg. Volume: 236,349
• PEG Ratio: -0.63
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 11.74
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 10.09
• 1Y Price Target: $39.50
• Price Target Upside: 50.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $1.34B

• Rating: 55 Neutral
• Price Target: $27.00 ▲(3.17% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

KFRC’s score is driven primarily by weakening financial trends (multi-year revenue decline and margin compression) and bearish technicals (below key moving averages with negative MACD). These are partially offset by supportive valuation (high dividend yield with a mid-teens P/E) and a cautiously improving narrative from the latest earnings call (sequential momentum and cost-savings actions), with buyback activity providing a smaller additional tailwind.

Positive Factors

Consistent positive cash generation

Kforce has produced positive operating and free cash flow every year shown, and FCF covered ~76% of net income in 2025. Persistent cash generation supports dividends, buybacks and reinvestment, giving the company durable financial flexibility despite cyclical revenue pressure.

Targeted $7M annualized cost savings

Management's $7M run‑rate cost program is structural (headcount and organizational changes) and should permanently lower SG&A if sustained. That reduces the revenue level needed to restore target margins, improving durability of earnings and cash flow even in a flat-revenue scenario.

Strategic initiatives to improve delivery mix

Workday deployment, offshore scale-up and 'One Kforce' integration are multi-quarter structural initiatives that can lower operating costs, support nearshore/offshore margin expansion, and improve delivery consistency—raising long-term operating leverage once fully executed.

Negative Factors

Multi-year revenue decline

Three consecutive years of declining revenue indicate persistent demand weakness or market-share pressures. Prolonged top-line erosion reduces operating leverage, limits margin recovery, and makes reliance on cost cuts and buybacks insufficient to restore growth without a sustainable rebound in client demand.

Margin compression and low operating margins

Margins have contracted materially, leaving limited buffer to absorb payroll-tax, healthcare or pricing pressure. Low operating profitability constrains reinvestment and increases sensitivity of dividends and buybacks to small revenue swings, making sustainable cash returns contingent on margin recovery.

Rising leverage and reduced equity cushion

Debt-to-equity rising to ~0.56 alongside declining equity reduces financial flexibility if the revenue downturn continues. While absolute debt is modest, the trend limits capacity for large M&A, sustained buybacks or absorbing longer downturns without pressuring liquidity or credit metrics.

Kforce Business Overview & Revenue Model

Company Description

Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. Kforce Inc. was founded in 1962 and is headquartered in Tampa, Florida.

How the Company Makes Money

Kforce makes money primarily by providing staffing and talent placement services to client companies. Its largest revenue stream is contract staffing: Kforce recruits and employs (or subcontract-manages) professionals who work on assignment at client sites or remotely; the client pays Kforce an hourly (or project) bill rate, and Kforce pays the worker’s wages and related employment costs, keeping the spread (gross profit) as revenue after covering compensation, payroll taxes, and benefits. The company also earns revenue from direct-hire and contract-to-hire placements, typically by charging a placement fee when a candidate is hired into a permanent role (often structured as a percentage of the candidate’s first-year compensation or a fixed fee; exact terms vary by client and are not publicly standardized). Additional factors that influence earnings include utilization (how consistently placed professionals are billed), bill-pay spreads, the mix of higher-skill roles (e.g., technology) versus other categories, client demand for project work, and the company’s ability to recruit and retain qualified talent. Specific partnership arrangements are not consistently disclosed in detail; if present, they are not available at a level that can be stated factually here.

Kforce Financial Statement Overview

Summary

Financial results reflect a cyclical downturn: revenue has declined for multiple years and margins have compressed (net margin down to ~2.6% in 2025). Offsetting this, KFRC remains profitable with positive operating cash flow and free cash flow, and leverage is still manageable despite rising debt-to-equity and declining equity.

Income Statement

KFRC shows a clear downcycle: revenue has fallen each year from 2022–2025 (2025 down ~6% vs. 2024), and profitability has compressed alongside it (net margin down from ~4.4% in 2022 to ~2.6% in 2025; operating profitability similarly lower). Gross margin has been relatively steady but drifting down from 2022 levels, suggesting limited cushion while demand softens. The key strength is that the company remains profitable through the slowdown, but the trajectory of sales and margins is negative.

Balance Sheet

Leverage looks manageable overall, with debt-to-equity around ~0.56 in 2025 (higher than 2022–2024 but still not extreme), and total debt remains modest relative to the business size. Equity has declined from 2022–2025, which reduces balance-sheet flexibility, and the uptick in leverage bears watching if the earnings downturn persists. Returns on equity remain high (still ~28% in 2025), though that has eased from peak levels as profitability weakened.

Cash Flow

Cash generation remains solid, with positive operating cash flow and free cash flow in every year shown; however, both operating cash flow and free cash flow declined in 2025 (free cash flow down ~11% year over year). Cash conversion weakened: operating cash flow is meaningfully below net income in 2025 (coverage ~0.54), indicating less earnings-to-cash support versus prior years. A positive is that free cash flow still covers a large portion of net income (~0.76 in 2025), even though that ratio has slipped from stronger levels in 2022–2024.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.33B	1.41B	1.53B	1.71B	1.58B
Gross Profit	355.82M	385.44M	427.07M	501.11M	456.86M
EBITDA	52.49M	75.64M	92.13M	126.97M	109.47M
Net Income	34.83M	50.41M	61.08M	75.43M	75.18M
Balance Sheet
Total Assets	365.64M	357.83M	357.98M	392.00M	503.40M
Cash, Cash Equivalents and Short-Term Investments	2.14M	349.00K	119.00K	121.00K	96.99M
Total Debt	69.74M	47.60M	57.46M	46.56M	118.26M
Total Liabilities	241.03M	203.22M	198.90M	209.81M	315.00M
Stockholders Equity	124.60M	154.62M	159.08M	182.20M	188.41M
Cash Flow
Free Cash Flow	46.80M	79.30M	83.70M	82.70M	66.46M
Operating Cash Flow	61.65M	86.87M	91.47M	90.81M	72.90M
Investing Cash Flow	-14.14M	-7.56M	-4.86M	-14.28M	8.30M
Financing Cash Flow	-45.71M	-79.08M	-86.61M	-173.39M	-87.70M

Kforce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFRC, the sentiment is Negative. The current price of 26.17 is below the 20-day moving average (MA) of 26.59, below the 50-day MA of 30.51, and below the 200-day MA of 31.99, indicating a bearish trend. The MACD of -1.22 indicates Negative momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFRC.

Kforce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KELYA	56 Neutral	$307.78M	-1.20	-22.10%	3.53%	0.46%	-477.90%
KFRC	55 Neutral	$478.34M	15.78	26.32%	5.12%	-5.91%	-23.01%
MAN	51 Neutral	$1.23B	11.44	-0.65%	4.96%	-2.44%	-156.01%
ZIP	48 Neutral	$216.10M	-10.62	―	―	-10.14%	-1381.34%
TBI	44 Neutral	$109.13M	-2.93	-16.17%	―	-5.37%	75.32%

Kforce Corporate Events

Kforce Launches Rule 10b5-1 Share Repurchase Program

On March 13, 2026, Kforce Inc. adopted a corporate stock trading plan to repurchase its outstanding common shares under a previously authorized board share repurchase program, structured in accordance with Rule 10b5-1 of the Securities Exchange Act. The plan, administered by an independent broker and subject to price, market, volume and timing constraints, enables repurchases between March 16 and April 29, 2026, signaling continued capital return to shareholders and potentially influencing the firm’s share liquidity and capital structure.

The program’s defined trading window and reliance on an automated 10b5-1 framework reduce discretion over day-to-day execution while providing Kforce with a mechanism to systematically buy back stock in the open market. For investors, the move underscores management’s willingness to deploy balance-sheet capacity toward buybacks, which may support earnings per share metrics and reflect confidence in the company’s valuation.

The most recent analyst rating on (KFRC) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Kforce stock, see the KFRC Stock Forecast page.