Kforce Inc (KFRC)
NYSE:KFRC
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Kforce
(NYSE:KFRC)
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Rating:55Neutral
Price Target:
$31.00
▲(4.55% Upside)
Action:ReiteratedDate: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 cash generation
Kforce has delivered positive operating cash flow and free cash flow across the years presented, providing durable internal funding for operations, dividends and buybacks. Reliable cash conversion, even if weakened, supports capital returns and cushions cyclical revenue swings over the next 2–6 months.
Negative Factors
Multi‑year revenue decline
Top-line has declined for multiple consecutive years, eroding scale and reducing leverage over fixed SG&A and recruiting infrastructure. Continued revenue contraction limits ability to restore operating margins, strains conversion of consultants to direct hires, and raises execution risk if demand momentum falters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Kforce has delivered positive operating cash flow and free cash flow across the years presented, providing durable internal funding for operations, dividends and buybacks. Reliable cash conversion, even if weakened, supports capital returns and cushions cyclical revenue swings over the next 2–6 months.
Read all positive factors
Kforce (KFRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$514.57M
Dividend Yield5.12%
Average Volume (3M)236.35K
Price to Earnings (P/E)15.8
Beta (1Y)0.55
Revenue Growth-5.91%
EPS Growth-23.01%
CountryUS
Employees1,700
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.43
Shares Outstanding18,227,636
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 Cap1.18
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.69
Enterprise Value/Ebitda11.27
Forecast
1Y Price Target
$39.50Price Target Upside33.22% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.22
Revenue Forecast (FY)$1.34B
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...
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 cli...
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 Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Neutral
The call conveyed a cautiously optimistic tone: management highlighted a meaningful sequential recovery (Q4 revenue beat, strong billing-day growth, robust consulting/data demand and a strong start to 2026) and outlined cost actions and strategic initiatives expected to drive margin and long-term growth. However, these positives are tempered by multi-year revenue declines (FY25 down ~5%), a sharp decline in adjusted EPS (~22% YoY), Q4 margin headwinds from healthcare/seasonality, and a higher effective tax rate. The narrative indicates potential inflection but continued near-term uncertainty, with management positioning the company to benefit if the topline momentum sustains.Positive Updates
Q4 Revenue Beat and Sequential Momentum
Q4 total revenues of $332 million exceeded expectations and reflected a 3% sequential improvement on a billing-day basis; management reported January 2026 as the best start since 2022 and noted front-end indicators (client visits, interviews, order flow) at multi-year highs.
Negative Updates
Full-Year Revenue Decline
Fiscal 2025 revenues were approximately $1.33 billion, down roughly 5% year-over-year, marking the third consecutive year of revenue declines for Kforce and the broader technology services sector.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Beat and Sequential Momentum
Q4 total revenues of $332 million exceeded expectations and reflected a 3% sequential improvement on a billing-day basis; management reported January 2026 as the best start since 2022 and noted front-end indicators (client visits, interviews, order flow) at multi-year highs.
Read all positive updates
Company Guidance
Kforce guided Q1 2026 revenues of $324–$332 million and EPS of $0.37–$0.45, with 63 billing days (one additional day year‑over‑year) and an expected effective tax rate of ~29% (2026 could approximate 29% as well); management said the recent organizational refinements should deliver roughly $7 million of annualized savings (≈$0.30 per share) with only a partial benefit reflected in Q1. For context, FY2025 revenues were ≈$1.33 billion (down ~5% YoY), Q4 revenue was $332 million (≈3% sequential improvement per billing day), Q4 GAAP EPS was $0.30 (adjusted $0.43) and FY2025 GAAP EPS was $1.96 (adjusted $2.09, down ~22% YoY); Q4 gross margin was 27.2% (down 50 bps sequential, up 20 bps YoY), Q4 operating margin was 2.6% GAAP (3.6% adjusted), tech average bill rate remains ~$90/hr (F&A ≈$53/hr), and tech flex margins were +40 bps YoY but -40 bps sequential. They expect Q1 payroll‑tax reset pressure to reduce flex margins by ~60 bps in Technology and ~120 bps in F&A, expect spreads to be relatively stable with Q4, aim to improve operating margins in 2026 even with flat revenue (and target ~8% operating margin when annual revenues reach ~$1.7B), and noted $14.1M of capital returned in the quarter (dividends $6.7M, repurchases $7.4M), operating cash flow of $19.7M and ROE of ≈30%.Kforce Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| 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
Positive
29.65
Price Trends
28.81
Positive
29.88
Negative
31.04
Negative
Market Momentum
0.44
Negative
56.68
Neutral
52.46
Neutral
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 29.65 is above the 20-day moving average (MA) of 28.26, above the 50-day MA of 28.81, and below the 200-day MA of 31.04, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 52.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFRC.
Kforce Risk Analysis
Kforce disclosed 27 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $320.66M | -1.20 | -22.10% | 3.53% | 0.46% | -477.90% | |
55 Neutral | $514.57M | 15.78 | 26.32% | 5.12% | -5.91% | -23.01% | |
51 Neutral | $1.25B | 11.44 | -0.65% | 4.96% | -2.44% | -156.01% | |
48 Neutral | $100.11M | -2.93 | -16.17% | ― | -5.37% | 75.32% | |
44 Neutral | $168.83M | -10.62 | 57.25% | ― | -10.14% | -1381.34% |
* Industrials Sector Average
KFRC
Kforce
29.65
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-30.09%
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Kforce Corporate Events
Stock BuybackRegulatory Filings and Compliance
Kforce Launches Rule 10b5-1 Share Repurchase Program
Positive
Mar 17, 2026
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 Ac...
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.