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what it is
Kforce finds tech and finance talent for companies that need people fast, either temporary or full-time.
how it gets paid
Last year Kforce made $1.3B in revenue. Q1 2025 staffing revenue was the main engine at $0.33B, or 25% of sales.
why growth slowed
Revenue fell 5.4% last year. Meanwhile, the bottom line declined 16% from the year-ago period, to $0.63 per share.
what just happened
Fourth-quarter revenue was $332.0M and EPS was $0.43, exactly in line with estimates.
At a glance
B+ balance sheet — decent shape, but not bulletproof
75/100 earnings predictability — reasonably predictable
14.7x trailing p/e — the market's not buying it — or you found a deal
5.2% dividend yield — cash in your pocket every quarter
18.0% return on capital — nothing to write home about
xvary composite: 65/100 — average
What they do
Kforce finds tech and finance talent for companies that need people fast, either temporary or full-time.
This is not a fortress. It is a specialist. If your company needs a cloud engineer or senior accountant now, you do not want a random résumé pile. You want a recruiter who already knows your role, your market, and your pay range. That focus helped Kforce earn a 20% return on equity and 18% return on capital in a soft year. Switching costs (pain of starting over) are human here, not software. Your hiring manager does not want to retrain a new vendor mid-search.
How they make money
$1.3B
annual revenue · their business grew -5.4% last year
Q1 2025 staffing revenue
$0.33B
5.4%
Q2 2025 staffing revenue
$0.33B
5.4%
Q3 2025 staffing revenue
$0.33B
6.0%
Q4 2025 staffing revenue
$0.33B
5.4%
The products that matter
technology and finance staffing
Professional Staffing
$1.3B revenue
it is the entire $1.3B business. when tech and finance clients add headcount, kforce grows. when they pause, you feel it almost immediately.
100% of revenue
Key numbers
14.7x
trailing p/e
P/E → how many dollars you pay for one dollar of profit → so what: you are not paying a glamour-stock price for this.
5.2%
dividend yield
Dividend yield → cash paid back to you each year as a share of price → so what: the stock pays you to wait.
18.0%
return on capital
Return on capital → profit generated from the money tied up in the business → so what: this is still an efficient operator.
$46
18-month target
That sits $15.12 above the $30.88 stock price, or about 49% upside, which tells you expectations are still pretty low.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $65M (11% of capital)
- net profit margin 3.2% — keeps 3 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in KFRC 3 years ago → it's now worth $6,500.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Fourth-quarter revenue was $332.0M and EPS was $0.43, exactly in line with estimates.
The weak part was not the quarter itself. It was the backdrop. Revenue fell 5.4% for 2025, and management blamed macro uncertainty and slower hiring.
$332.0M
revenue
$0.43
eps
27.2%
gross margin
the number that mattered
The key number was the 5.4% annual revenue decline, because staffing firms do not hide from a hiring slowdown.
-
kforce posted weak third-quarter results.
-
the top line fell 6% vs. prior year, to $333 million.
-
meanwhile, the bottom line declined 16% from the year-ago period, to $0.63 per share.
-
the operating performance was weighed down by macroeconomic uncertainty and a slowdown in hiring.many employers tightened hiring budgets and scaled back investments, focusing primarily on essential projects.
-
still, not all trends were negative.demand for information technology (it) professionals remained relatively stable, though still on the softer side. the company saw improvement in the number of consultants in its technology segment, as the quarter progressed. plus, the finance and accounting business posted a mid-single-digit sequential recovery, marking a notable improvement, considering that the line had lagged in recent periods. management expects this positive momentum to continue into the fourth quarter, with technology flex revenue projected to grow at a low-single-digit pace.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a prolonged hiring freeze across technology and finance teams.
med
tech and finance hiring stays frozen
kforce is a pure-play staffing firm. if clients keep delaying contractors and permanent hires, there is no second segment to carry the load.
this exposes 100% of the $1.3B revenue base to the same hiring budgets that already produced a 5.4% revenue decline compared to last year.
med
the thin-margin model cuts earnings faster than revenue
a 3.0% net margin means small sales changes can hit profit hard. the latest quarter showed the math: revenue fell 6% vs. prior year and EPS landed at $0.43.
you do not need a collapse to damage the thesis. you just need another few quarters where demand stays soft and margins stay thin.
med
the stabilization story slips again
management flagged sequential improvement in finance and accounting and better consultant trends in technology. if those comments do not turn into firmer revenue next, the rebound gets pushed out again.
the stock looks inexpensive at 14.7x trailing earnings because the market wants proof. no proof means the low multiple starts looking correct, not cheap.
med
the dividend becomes the whole pitch
a 5.2% yield can keep value investors interested. it cannot by itself re-rate a shrinking staffing business.
if revenue tracks closer to the $1B analyst view than the recent $1.3B base, investors will care more about shrinking demand than income support.
a prolonged hiring slowdown hits the entire $1.3B business, and the last 6% quarterly revenue decline ended with just $0.43 of EPS. that is not much room for error.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
watch the q4 2025 report, expected around early march 2026, for evidence that management's stabilization comments are turning into actual revenue and EPS progress.
metric
quarterly revenue
the latest quarter came in at $333M. you want the drop from a year ago getting smaller, not larger.
trend
finance and accounting demand
management said this part of the business improved sequentially. if that keeps improving, it is your earliest signal that client demand is thawing.
risk
technology consultant count
consultant trends got better as the quarter went on. if that rolls over again, the bear case gets louder fast.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they think a lot of the bad news is already visible.
risk profile
average
stability score 3 — the stock sits near the middle of the pack on risk. not a bunker stock, not a chaos trade.
chart momentum
below average
technical score 4 — the chart still looks like a stock trying to bottom, not one that has clearly bottomed.
earnings predictability
75 / 100
management has been fairly consistent. you are dealing with a cyclical business, but not a mystery box.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 112 buyers vs. 97 sellers in 3q2025. total institutional holdings: 16.9M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$25
$66
$31
current price
$46
target midpoint · +49% from current · 3-5yr high: $60 (+95% · 21% ann'l return)
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