Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on KFRC

Kforce Inc.'s recent performance was negatively impacted by a decline in earnings, with Q3 2025 earnings per share (EPS) of $0.63, down from $0.75 a year ago. Although the company exceeded top and bottom line expectations, concerns may arise from the year-over-year decline in EPS. The company's revenue was $332.6 million, led by better-than-expected results in Technology and Financial Accounting (FA) businesses. However, the tone of the Q3 earnings call suggested a cautious outlook.

1.c. Company Highlights

2. Kforce Beats Q3 2025 Expectations with Revenue Growth and Margin Expansion

Kforce reported a strong third quarter, with revenues reaching $332.6 million and earnings per share (EPS) of $0.63, exceeding the high end of guidance. The company's gross margins also expanded to 27.7%, up 60 basis points sequentially, driven by a favorable mix of consulting-oriented engagements and slightly expanding spreads. As Jeffrey Hackman noted, the consulting engagements carry higher margins, typically 400 to 600 basis points higher than traditional staffing, which contributed to the margin expansion. EPS came in above estimates of $0.57, demonstrating the company's ability to deliver strong profitability.

Publication Date: Nov -25

📋 Highlights
  • Outperformed Guidance:: Q3 revenue reached $332.6M and EPS hit $0.63, both exceeding the high end of guidance.
  • FA Business Stabilization:: Finance & Accounting revenue grew 7% sequentially after prior declines, reversing a 8% YoY drop.
  • Margin Expansion:: Gross margins rose 60 bps to 27.7%, driven by 50 bps Flex margin improvement and consulting mix.
  • Consulting Margin Premium:: Consulting engagements yield 400–600 bps higher margins than traditional staffing, boosting profitability.

Business Segment Performance

The Technology business declined 1.1% sequentially and 5.6% year-over-year, while the Finance and Accounting (FA) business grew approximately 7% sequentially and declined slightly more than 8% year-over-year. Despite macroeconomic uncertainties, clients continued to prioritize mission-critical initiatives, driving demand for skill sets in application development, digital, data, AI, and the cloud. The company's consulting-led offerings contributed positively to the overall results, supported by a robust pipeline of qualified opportunities.

Growth Prospects and Strategic Direction

Kforce expects Q4 revenues in the range of $326 million to $334 million and EPS to be between $0.43 and $0.51. The company's guidance implies a sequential improvement in both Technology and FA revenues on a billing day basis and a further improvement in year-over-year comparisons. Analysts estimate next year's revenue growth at 6.5%, indicating a positive outlook for the company's future performance.

Valuation and Return Metrics

Kforce's current valuation metrics, including a P/E Ratio of 12.77, P/B Ratio of 3.94, and EV/EBITDA of 8.65, suggest a reasonable valuation. The company's Return on Equity (ROE) of 29.13% and Return on Invested Capital (ROIC) of 16.41% indicate strong profitability. The Dividend Yield of 5.26% provides an attractive return for income investors. With a Net Debt / EBITDA ratio of 0.03, Kforce's balance sheet appears healthy, supporting its ability to return capital to shareholders through dividends and share repurchases.

3. NewsRoom

Card image cap

Kforce (KFRC) Q3 Earnings and Revenues Surpass Estimates

Nov -04

Source: zacks.com

Card image cap

Kforce Inc. (KFRC) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

Card image cap

Kforce Reports Third Quarter 2025 Revenue of $332.6 Million and EPS of $0.63

Nov -03

Source: businesswire.com

Card image cap

Kforce Inc. to Announce Third Quarter Results on November 3, 2025

Oct -14

Source: businesswire.com

Card image cap

Kforce Inc. Announces Participation in the J.P. Morgan Ultimate Services Investor Conference

Sep -15

Source: businesswire.com

Card image cap

Kforce Inc. Announces Participation in Two Conferences in September 2025

Aug -14

Source: businesswire.com

Card image cap

Kforce Inc. (KFRC) Q2 2025 Earnings Call Transcript

Jul -29

Source: seekingalpha.com

Card image cap

Kforce Posts 6% Revenue Drop in Q2

Jul -28

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.81%)

6. Segments

Technology

Expected Growth: 4%

Kforce Inc.'s Technology segment growth is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. The rise of remote work and e-commerce has accelerated the need for skilled IT professionals, contributing to the segment's 4% growth. Additionally, the company's strategic acquisitions and investments in emerging technologies have expanded its service offerings, further fueling growth.

Finance and Accounting

Expected Growth: 2%

Kforce Inc.'s Finance and Accounting segment growth is driven by increasing demand for specialized financial expertise, particularly in areas such as financial planning and analysis, accounting operations, and risk management. Additionally, the need for companies to optimize financial processes and improve compliance with regulatory requirements also contributes to this growth.

7. Detailed Products

Technology Services

Kforce provides technology services including IT staffing, project management, and technology consulting to help clients achieve their business goals.

Finance and Accounting Services

Kforce offers finance and accounting services including financial analysis, accounting operations, and financial planning to help clients manage their financial resources.

Government Solutions

Kforce provides government solutions including IT services, consulting, and staffing to help government agencies achieve their mission objectives.

8. Kforce Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kforce Inc. operates in a niche market, providing professional staffing services, which reduces the threat of substitutes. However, the rise of online platforms and automation may pose a moderate threat to the company's services.

Bargaining Power Of Customers

Kforce Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's specialized services and long-term contracts further reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Kforce Inc. has a large pool of temporary and contract workers, which reduces the bargaining power of suppliers. The company's scale and reputation also give it negotiating power over suppliers.

Threat Of New Entrants

While there are barriers to entry in the staffing industry, such as licensing and regulatory requirements, new entrants can still pose a threat to Kforce Inc. The company's established brand and reputation, however, provide a competitive advantage.

Intensity Of Rivalry

The staffing industry is highly competitive, with many established players competing for market share. Kforce Inc. must differentiate itself through its specialized services and strong customer relationships to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.12%
Debt Cost 3.95%
Equity Weight 77.88%
Equity Cost 8.40%
WACC 7.41%
Leverage 28.41%

11. Quality Control: Kforce Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Barrett Business Services

A-Score: 6.0/10

Value: 5.9

Growth: 5.6

Quality: 6.0

Yield: 2.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Heidrick & Struggles

A-Score: 5.2/10

Value: 4.9

Growth: 4.1

Quality: 5.6

Yield: 3.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Kforce

A-Score: 5.1/10

Value: 7.0

Growth: 4.4

Quality: 6.5

Yield: 7.0

Momentum: 0.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Kelly Services

A-Score: 4.3/10

Value: 8.6

Growth: 2.0

Quality: 4.2

Yield: 4.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
HireRight

A-Score: 4.1/10

Value: 6.4

Growth: 7.1

Quality: 3.4

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
BGSF

A-Score: 4.0/10

Value: 8.1

Growth: 3.3

Quality: 3.0

Yield: 8.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.86$

Current Price

29.86$

Potential

-0.00%

Expected Cash-Flows