Kforce Inc (KFRC)
NYSE:KFRC
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Earnings Data
Report Date
Aug 03, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.7Last Year’s EPS
0.59Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed meaningful progress: revenue growth returned, gross margins expanded, demand and pipeline metrics improved materially (client visits +10% YoY, job orders +20% YoY, Data/AI pipeline +50% YoY), and management issued above‑consensus guidance with a strong EPS uplift at the midpoint. These positives were balanced against short‑term cash flow timing and opportunistic buybacks that increased net debt, a modest rise in SG&A as a percent of revenue, and ongoing macro/geopolitical uncertainties. Management presented a clear strategy to scale higher‑margin consulting work and multi‑shore delivery (60% of top clients), and provided a credible path to improved operating margins as revenue scales.Company Guidance
Revenue Recovery and Q1 Results
Total revenue of $330.4 million in Q1 2026 marked a return to year‑over‑year revenue growth (first time since Q4 2022) and exceeded company expectations.
Earnings and Guidance Beats
Q1 diluted EPS of $0.46 was above the high end of guidance. Q2 revenue guidance of $344M–$352M (midpoint $348M) implies ~4% year‑over‑year growth, and midpoint EPS guidance ($0.67) reflects ~20% year‑over‑year EPS growth.
Gross Margin Expansion
Overall gross margin improved to 27.3%, up 60 basis points year‑over‑year; Flex gross margins increased ~90 basis points year‑over‑year. Sequential gross margins were up 10 basis points despite normal seasonal headwinds.
Strength in Demand Metrics and Pipeline
Several operating indicators improved materially: client visits up nearly 10% YoY, job orders up nearly 20% YoY, new assignment starts in the low double digits, and the Data & AI pipeline is up nearly 50% year‑over‑year.
Integrated Delivery and Multi‑shore Adoption
The firm reports multi‑shore/blended delivery being utilized within 60% of its 25 largest clients and a stable average bill rate of approximately $90/hour over the last three years, supporting higher‑quality, higher‑margin revenue mix.
Consulting Solutions Momentum
Consulting‑led engagements, which carry materially higher margins (management cites a ~400–600 bps delta), are contributing to revenue and gross profit expansion and are a key driver of improved mix and margin profile.
Capital Return and Share Repurchases
Returned $18.6 million of capital in Q1 via $6.8 million in dividends and ~$11.8 million in share repurchases; management signaled continued opportunistic repurchases when appropriate.
Cash Flow Outlook and Profitability Targets
Operating cash flow was negative in Q1 but management expects approximately $20 million of positive operating cash flow in Q2. They also reiterated a target of at least an 8% operating margin when annual revenue reaches $1.7 billion.
Strategic Investments in AI and Operations
Announced establishment of an AI innovation studio and AI pods in India, expansion of India development center, Workday implementation progress, and continued investments in Consulting Solutions to capture AI and platform engineering demand.
KFRC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KFRC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 27, 2026 | $32.01 | $45.87 | +43.30% |
Feb 02, 2026 | $36.15 | $34.77 | -3.82% |
Nov 03, 2025 | $24.61 | $23.87 | -3.01% |
Jul 28, 2025 | $45.06 | $36.83 | -18.27% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kforce Inc (KFRC) report earnings?
Kforce Inc (KFRC) is schdueled to report earning on Aug 03, 2026, Before Open (Confirmed).
What is Kforce Inc (KFRC) earnings time?
Kforce Inc (KFRC) earnings time is at Aug 03, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KFRC EPS forecast?
KFRC EPS forecast for the fiscal quarter 2026 (Q2) is 0.7.