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Kforce
(NYSE:KFRC)
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Rating:67Neutral
Price Target:
$57.00
▲(86.52% Upside)
Action:Reiterated
Date:06/18/26
KFRC scores in the mid-range primarily due to stable-but-softening financial performance (lower margins vs prior years and slowing multi-year revenue trend) balanced by improving forward outlook from the earnings call (better growth and margin signals) and supportive technical momentum. Valuation is helped by the dividend yield but tempered by a mid-20s P/E.
Positive Factors
Higher‑margin Consulting Mix
A sustained shift toward consulting solutions that carry a 400–600bp gross‑margin premium materially improves long‑run profitability and operating leverage. As consulting revenue scales, gross margins expand, reducing sensitivity to cyclical contract staffing and supporting durable EPS and cash flow growth.
Negative Factors
Multi‑year Revenue Slowdown
A multi‑year deceleration in top‑line growth reduces the company's ability to leverage fixed costs and impedes progress toward scale targets. Persistent slower revenue growth limits long‑term margin expansion and makes achievement of stated operating‑margin goals more dependent on mix shifts than organic volume gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Higher‑margin Consulting Mix
A sustained shift toward consulting solutions that carry a 400–600bp gross‑margin premium materially improves long‑run profitability and operating leverage. As consulting revenue scales, gross margins expand, reducing sensitivity to cyclical contract staffing and supporting durable EPS and cash flow growth.
Read all positive factors
Kforce Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profit left after direct costs for each segment, highlighting differences in margins and cost structure across Kforce’s services. Useful for assessing which businesses are the most profitable, where margin expansion or pressure may come from, and how segment trends will affect overall earnings and cash flow.
Shows the profit left after direct costs for each segment, highlighting differences in margins and cost structure across Kforce’s services. Useful for assessing which businesses are the most profitable, where margin expansion or pressure may come from, and how segment trends will affect overall earnings and cash flow.
Data provided by:
The Fly
The FlyKforce (KFRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$943.49M
Dividend Yield5.12%
Average Volume (3M)236.35K
Price to Earnings (P/E)27.8
Beta (1Y)0.63
Revenue Growth-3.91%
EPS Growth-22.90%
CountryUS
Employees1,700
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.95
Shares Outstanding17,832,000
10 Day Avg. Volume245,536
30 Day Avg. Volume236,349
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)4.41
Price to Sales (P/S)0.41
P/FCF Ratio11.74
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit2.60
Enterprise Value/Ebitda17.85
Forecast
1Y Price Target
$42.33Price Target Upside38.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.2
Revenue Forecast (FY)$1.37B
Kforce Business Overview & Revenue Model
Company Description
Kforce Inc. is a professional staffing and solutions firm operating across the United States. The company is structured into two main divisions: Technology, and Finance and Accounting (FA). The Technology segment provides specialized talent for in...
How the Company Makes Money
Kforce makes money primarily by providing staffing and related talent solutions to client organizations. Its key revenue streams are (1) contract staffing and (2) permanent placement (direct-hire), with additional revenue from project-based soluti...
Kforce Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
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.Positive Updates
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.
Negative Updates
Negative Operating Cash Flow in Q1
Operating cash flows were negative $4.1 million in Q1 2026 (seasonally low quarter and timing of collections), prompting management to use balance sheet flexibility to fund repurchases; however, they expect normalization and ~+$20M operating cash flow in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Kforce guided Q2 revenues of $344M–$352M (midpoint $348M), which management said is roughly +4% year‑over‑year (and sequential per billing day) with 64 billing days in the quarter, and EPS of $0.67–$0.75 (midpoint ~20% higher year‑over‑year); the Q2 effective tax rate was guided at 31%. For context, Q1 results were revenue $330.4M and EPS $0.46, gross margin 27.3% (up 60 bps YoY) with Flex gross margins up ~90 bps YoY, SG&A at 23.2% of revenue (up 40 bps YoY), operating margin 3.6%, and an effective tax rate of 30.2%; management returned $18.6M of capital in Q1 ($6.8M dividends, ~$11.8M buybacks), ending the quarter with net debt $90.2M (from $64.3M) and trailing‑12M EBITDA leverage of 1.2x. They expect Q2 operating cash flow of about $20M (after Q1 cash flow of -$4.1M), sequential improvement in Flex margins (with spreads roughly stable), continued margin benefit from consulting mix and multi‑shore delivery, and reiterated a long‑term target of at least an 8% operating margin when annual revenues reach $1.7B (over 100 bps higher than when that revenue level was achieved in 2022).Kforce Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.33B | 1.41B | 1.53B | 1.71B | 1.58B |
| Gross Profit | 361.86M | 355.82M | 385.44M | 427.07M | 501.11M | 456.86M |
| EBITDA | 52.62M | 52.49M | 73.55M | 90.26M | 126.97M | 102.09M |
| Net Income | 34.60M | 34.83M | 50.41M | 61.08M | 75.43M | 75.18M |
Balance Sheet | ||||||
| Total Assets | 384.77M | 365.64M | 357.83M | 357.98M | 392.00M | 503.40M |
| Cash, Cash Equivalents and Short-Term Investments | 1.34M | 2.14M | 349.00K | 119.00K | 121.00K | 96.99M |
| Total Debt | 107.36M | 82.95M | 47.60M | 57.46M | 46.56M | 118.26M |
| Total Liabilities | 267.42M | 241.03M | 203.22M | 198.90M | 209.81M | 315.00M |
| Stockholders Equity | 117.36M | 124.60M | 154.62M | 159.08M | 182.20M | 188.41M |
Cash Flow | ||||||
| Free Cash Flow | 43.30M | 46.80M | 79.30M | 83.70M | 82.70M | 66.46M |
| Operating Cash Flow | 57.34M | 61.65M | 86.87M | 91.47M | 90.81M | 72.90M |
| Investing Cash Flow | -12.65M | -14.14M | -7.56M | -4.86M | -14.28M | 8.30M |
| Financing Cash Flow | -43.79M | -45.71M | -79.08M | -86.61M | -173.39M | -87.70M |
Kforce Technical Analysis
Positive
30.56
Price Trends
45.79
Positive
37.13
Positive
33.50
Positive
Market Momentum
2.39
Negative
67.46
Neutral
81.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFRC, the sentiment is Positive. The current price of 30.56 is below the 20-day moving average (MA) of 49.17, below the 50-day MA of 45.79, and below the 200-day MA of 33.50, indicating a bullish trend. The MACD of 2.39 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 81.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFRC.
Kforce Risk Analysis
Kforce disclosed 54 risk factors in its most recent earnings report. Kforce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kforce Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $943.49M | 27.85 | 27.22% | 5.12% | -3.91% | -22.90% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $497.07M | -1.79 | -24.58% | 3.53% | -7.30% | -1239.34% | |
58 Neutral | $245.06M | -4.66 | -18.74% | ― | 7.14% | 61.21% | |
54 Neutral | $1.74B | -110.60 | -0.81% | 4.96% | 4.77% | -115.03% | |
51 Neutral | $319.57M | -13.92 | 32.87% | ― | -3.33% | -45.12% |
* Industrials Sector Average
KFRC
Kforce
54.63
13.89
34.11%
KELYA
Kelly Services
13.55
1.58
13.16%
MAN
ManpowerGroup
38.71
-2.73
-6.60%
TBI
Trueblue
8.16
2.08
34.21%
ZIP
ZipRecruiter
3.87
-0.77
-16.59%
Kforce Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kforce Announces New Rule 10b5-1 Share Repurchase Plan
Positive
Jun 17, 2026
On June 15, 2026, Kforce Inc. adopted a corporate stock trading plan to repurchase outstanding common shares under a previously authorized share repurchase program, signaling continued use of buybacks as a capital allocation tool. The plan, struct...
Executive/Board ChangesShareholder Meetings
Kforce Shareholders Approve Directors, Compensation and Incentive Plan
Positive
Apr 24, 2026
Kforce Inc. held its Annual Meeting of Shareholders on April 22, 2026, with 16,428,102 of 18,227,637 eligible shares represented, constituting a 90.1% quorum. Shareholders elected three Class II directors, Derrick D. Brooks, Ann E. Dunwoody, and N...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.