olivLaw · US equity research
Kforce Inc. KFRC
Services-Help Supply Services · SIC 7363 · Vertical: Services-Help Supply Services (SIC 7363)
Kforce Inc. (KFRC) is a solutions firm supplying technology, finance and accounting staff through Flex and Direct Hire models. Technology makes up most of its revenue, and a return to growth in the second half of 2026 makes the company a case to follow amid uncertainty about artificial intelligence, after revenue of 1.33 billion USD in 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Kforce Inc. (KFRC) stock was 58.29 USD (+0.92% on the day), with market capitalisation 1.0 bn USD, P/E 24.4 on diluted EPS of 2.39 USD over the last 12 months, dividend yield 2.73%, beta 0.39, 52-week range 25.72–60.45 USD. Latest reported quarter (Q3 2026): revenue of 357.8 m USD (+7.5% YoY), net income of 15.4 m USD (+39.5% YoY), diluted EPS 0.90 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 65.1
- strong (55–70)
- Bollinger (20, 2)
- 47.79 – 60.84
- in the upper half of the band · %B 0.80 · band width 24.0%
- SMA 50 / 200
- 53.49 / 44.38
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 1.55 / 1.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +12.5% | −1.1% | +13.6 pp | — |
| 3 months | −0.6% | −0.5% | −0.1 pp | — |
| 6 months | +38.5% | +4.4% | +34.1 pp | — |
| Year to date | +88.5% | +12.3% | +76.2 pp | — |
| 1 year | +84.6% | +13.5% | +71.0 pp | +20.4% |
| 3 years | −5.3% | +76.4% | −81.7 pp | −38.8% |
| 5 years | −23.0% | +63.7% | −86.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 343.8 m | 330.0 m | 334.3 m | 332.6 m | 332.0 m | 330.4 m | 349.3 m | 357.8 m |
| Cost of revenue | 251.1 m | 241.8 m | 243.7 m | 240.4 m | 241.8 m | 240.3 m | 249.9 m | 256.9 m |
| Gross profit | 92.7 m | 88.3 m | 90.6 m | 92.3 m | 90.2 m | 90.1 m | 99.5 m | 100.8 m |
| SG&A | 75.6 m | 75.2 m | 74.4 m | 75.9 m | 80.3 m | 76.8 m | 79.4 m | 77.2 m |
| Operating income | 15.6 m | 11.6 m | 14.9 m | 15.0 m | 8.6 m | 12.0 m | 18.8 m | 22.5 m |
| Depreciation & amortisation | 1.5 m | 1.5 m | 1.4 m | 1.4 m | 1.3 m | 1.3 m | 1.3 m | 1.2 m |
| Pre-tax income | 15.1 m | 11.1 m | 13.9 m | 14.2 m | 7.8 m | 11.4 m | 17.8 m | 21.6 m |
| Income tax | 4.0 m | 2.9 m | 3.4 m | 3.2 m | 2.6 m | 3.4 m | 5.4 m | 6.2 m |
| Net income | 11.1 m | 8.1 m | 10.4 m | 11.1 m | 5.2 m | 7.9 m | 12.3 m | 15.4 m |
| Diluted EPS | 0.59 ≈ | 0.45 | 0.59 | 0.63 | 0.30 ≈ | 0.46 | 0.73 | 0.90 |
| Operating cash flow | 21.8 m | 249.0 k | 18.4 m ≈ | 23.3 m ≈ | 19.7 m | -4.1 m | -2.7 m ≈ | 9.5 m ≈ |
| Capex | -928.0 k | 4.1 m | 4.1 m ≈ | 3.5 m ≈ | 3.0 m | 3.3 m | 3.8 m ≈ | 3.6 m ≈ |
| Dividends paid | 7.0 m | 7.1 m | 6.9 m ≈ | 6.8 m ≈ | 6.7 m | 6.8 m | 6.7 m ≈ | 6.7 m ≈ |
| Share repurchases | 20.7 m | 21.1 m | 11.2 m ≈ | 9.2 m ≈ | 9.4 m | 11.7 m | 3.4 m ≈ | 70.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 40-quarter history (min 5.4, median 17.7, max 24.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.3 bn | 1.4 bn | 1.6 bn | 1.7 bn | 1.5 bn | 1.4 bn | 1.3 bn |
| Revenue YoY | +4.0% | +3.3% | +3.7% | +13.0% | +8.3% | −10.5% | −8.3% | −5.4% |
| Net income | 58.0 m | 130.9 m | 56.0 m | 75.2 m | 75.4 m | 61.1 m | 50.4 m | 34.8 m |
| Net income YoY | +74.2% | +125.7% | −57.2% | +34.2% | +0.3% | −19.0% | −17.5% | −30.9% |
| Diluted EPS | 2.30 | 5.50 | 2.62 | 3.54 | 3.68 | 3.13 | 2.68 | 1.96 |
| Diluted EPS YoY | +76.9% | +139.1% | −52.4% | +35.1% | +4.0% | −14.9% | −14.4% | −26.9% |
| net % | 4.4% | 9.7% | 4.0% | 4.8% | 4.4% | 4.0% | 3.6% | 2.6% |
| Free cash flow | 82.6 m | 56.3 m | 102.7 m | 66.5 m | 82.7 m | 83.7 m | 79.3 m | 46.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.1 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 124.6 m USD
- Total assets
- 365.6 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.78x
- ROE
- 24.9%
- ROA
- 9.6%
- FCF margin
- 3.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.4 bn | 1.6 bn | 1.7 bn | 1.5 bn | 1.4 bn | 1.3 bn | SEC (XBRL)· 20 Feb 2026verified |
| Cost of revenue | 1.0 bn | 1.1 bn | 1.2 bn | 1.1 bn | 1.0 bn | 967.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Gross profit | 396.2 m | 456.9 m | 501.1 m | 427.1 m | 385.4 m | 361.4 m | SEC (XBRL)· 20 Feb 2026verified |
| SG&A | 310.7 m | 345.7 m | 379.8 m | 334.9 m | 309.8 m | 305.7 m | SEC (XBRL)· 20 Feb 2026verified |
| Operating income | 80.3 m | 106.6 m | 116.9 m | 87.1 m | 69.7 m | 50.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Depreciation & amortisation | 5.3 m | 4.5 m | 4.4 m | 5.0 m | 5.9 m | 5.5 m | SEC (XBRL)· 20 Feb 2026verified |
| EBITDA | 85.5 m ≈ | 111.1 m ≈ | 121.3 m ≈ | 92.1 m ≈ | 75.6 m ≈ | 55.6 m ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Pre-tax income | 75.2 m | 99.3 m | 102.4 m | 85.3 m | 67.6 m | 46.9 m | SEC (XBRL)· 20 Feb 2026verified |
| Income tax | 19.2 m | 24.1 m | 27.0 m | 24.2 m | 17.2 m | 12.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Net income | 56.0 m | 75.2 m | 75.4 m | 61.1 m | 50.4 m | 34.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Diluted EPS | 2.62 | 3.54 | 3.68 | 3.13 | 2.68 | 1.96 | SEC (XBRL)· 20 Feb 2026verified |
| Weighted average diluted shares | 21.4 m | 21.2 m | 20.5 m | 19.5 m | 18.8 m | 17.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Dividend per share | 0.80 | 0.98 | 1.20 | 1.44 | 1.52 | 1.56 | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 103.5 m | 97.0 m | 121.0 k | 119.0 k | 349.0 k | 2.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Receivables | 228.4 m | 265.3 m | 269.5 m | 233.4 m | 215.7 m | 190.5 m | SEC (XBRL)· 20 Feb 2026verified |
| Current assets | 338.9 m | 372.1 m | 277.8 m | 244.5 m | 225.4 m | 202.3 m | SEC (XBRL)· 20 Feb 2026verified |
| Property, plant & equipment, net | 26.8 m | 6.0 m | 8.6 m | 9.4 m | 7.7 m | 6.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Goodwill | 25.0 m | 25.0 m | 25.0 m | 25.0 m | 25.0 m | 25.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Total assets | 479.0 m | 503.4 m | 392.0 m | 358.0 m | 357.8 m | 365.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Accounts payable | 20.2 m | 40.2 m | 49.6 m | 42.8 m | 38.3 m | 40.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Short-term debt | 0 | — | — | — | — | — | SEC (XBRL)· 04 Aug 2021verified |
| Current liabilities | 108.2 m | 160.4 m | 131.4 m | 103.0 m | 112.5 m | 113.7 m | SEC (XBRL)· 20 Feb 2026verified |
| Total liabilities | 299.1 m | 315.0 m | 209.8 m | 198.9 m | 203.2 m | 241.0 m | SEC (XBRL)· 20 Feb 2026verified |
| Equity | 179.9 m † | 188.4 m † | 182.2 m † | 159.1 m † | 154.6 m † | 124.6 m † | SEC (XBRL)· 20 Feb 2026verified |
| Shares outstanding at year end | 22.1 m | — | — | — | — | — | SEC (XBRL)· 26 Feb 2021verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 109.2 m | 72.9 m | 90.8 m | 91.5 m | 86.9 m | 61.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Capex | 6.5 m | 6.4 m | 8.1 m | 7.8 m | 7.6 m | 14.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Free cash flow | 102.7 m ≈ | 66.5 m ≈ | 82.7 m ≈ | 83.7 m ≈ | 79.3 m ≈ | 46.8 m ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Investing cash flow | -6.9 m | 8.3 m | -14.3 m | -4.9 m | -7.6 m | -14.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Financing cash flow | -18.6 m | -87.7 m | -173.4 m | -86.6 m | -79.1 m | -45.7 m | SEC (XBRL)· 20 Feb 2026verified |
| Dividends paid | 16.8 m | 20.1 m | 24.0 m | 27.6 m | 28.2 m | 27.5 m | SEC (XBRL)· 20 Feb 2026verified |
| Share repurchases | 35.6 m | 66.2 m | 74.9 m | 75.0 m | 41.9 m | 50.9 m | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 29 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.0 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet96
- Valuation25
- Quality41
- Growth0
- Returns42
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 20.50 – 65.95 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E43.30 – 65.95 (Mid 54.13)7 companies used · median multiple 22.7x · quartiles 18.1x – 27.6xAMN, BBSI, EFOR, HQI, MAN, RCMT, RHI
- Dividend discount (DDM)20.50 – 27.57 (Mid 23.51)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 29/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 3.0% | 81 (vs peers) | 10% |
| FCF conversion · Quality | 21.1% | 0 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -8.1% | 0 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | -18.9% | 0 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.0x | 96 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 24.4x | 38 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 0.8% | 10 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 4.9% | 70 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 311.9% | 0 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial96/100 · 1/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality41/100 · 2/3 factors with a value
- Returns42/100 · 2/2 factors with a value
- Valuation25/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Kforce Inc (KFRC). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.3 bn USD in 2025; YoY growth -5.4%; net margin 3.0%; ROE 30.5%.
The estimated value range is 31.90–46.76 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 38.82 USD, the price of 58.29 USD leaves a potential of -33.4% (value / price − 1) and a margin of safety of -50.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 29/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 3.0%
- Current ratio: 2.0x
- Shareholder yield (distributions): 4.9%
What contradicts it
- FCF conversion: 21.1%
- Revenue CAGR 3Y: -8.1%
- EPS CAGR 3Y: -18.9%
- FCF yield: 0.8%
- Payout ratio (FCF): 311.9%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Services-Help Supply Services (SIC 7363) · same industry (4-digit SIC) · compared with 16 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RHIRobert Half Inc. | 4.6 bn | 37.2 | 9.8% | 2.3% | −7.2% | +66% / −45% |
| MANManpowergroup Inc. | 2.2 bn | 18.5 | 5.8% | 0.6% | +0.6% | +63% / −37% |
| NSPInsperity, Inc. | 2.0 bn | 564.4 | 4.6% | 0.0% | +3.5% | +46% / −55% |
| AMNAmn Healthcare Services, Inc. | 1.8 bn | 17.8 | 15.6% | 3.1% | −8.5% | +187% / −30% |
| EFOREverforth, Inc. | 1.5 bn | 22.7 | 3.7% | 1.7% | −2.9% | −18% / −59% |
| KFRCKforce Inc | 1.0 bn | 24.4 | 30.5% | 3.0% | −5.4% | +85% / −5% |
| BBSIBarrett Business Services, Inc. | 802.2 m | 24.4 | 16.3% | 2.8% | +8.4% | −6% / +20% |
| TBITrueBlue, Inc. | 300.0 m | — | -15.9% | -2.6% | +3.1% | +101% / −29% |
| RCMTRcm Technologies, Inc. | 248.1 m | 15.1 | 39.5% | 5.1% | unavailable | +78% / +29% |
| HQIHireQuest, Inc. | 246.4 m | 30.9 | 12.1% | 27.1% | −11.4% | +104% / +20% |
| TTECTTEC Holdings, Inc. | 75.4 m | — | -108.2% | -10.2% | −3.2% | −54% / −92% |
| DLHCDlh Holdings Corp. | 53.5 m | — | -20.8% | -8.5% | −13.0% | −41% / −73% |
| BGSFBgsf, Inc | 41.8 m | — | -4.4% | -2.3% | −10.6% | −15% / −60% |
| STRRStar Equity Holdings, Inc. | 35.5 m | — | -18.2% | -4.3% | +22.9% | −5% / −39% |
| CIRCCircle8 Group Inc. | 26.7 m | — | — | -19.4% | −1.5% | −89% / −94% |
| YFORYY Group Holding Ltd. | 4.3 m | — | -94.1% | -11.8% | +29.4% | −100% / unavailable |
| KELYAKelly Services, Inc. | — | — | -24.3% | -6.7% | −1.9% | +96% / −19% |
1- and 3-year price returns: for KFRC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 29.80 Total return -47% · Per year -47% | 52.95 Total return -7% · Per year -7% | 80.13 Total return 40% · Per year 40% |
| 3 years | 23.66 Total return -54% · Per year -23% | 47.79 Total return -11% · Per year -4% | 80.13 Total return 46% · Per year 14% |
| 5 years | 18.79 Total return -60% · Per year -17% | 43.13 Total return -15% · Per year -3% | 80.13 Total return 52% · Per year 9% |
- Exit P/E± 11.95
- Net margin± 8.36
- Annual revenue growth± 7.55
- Annual dilution± 0.70
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 26 Oct 2026; since then the company filed 10-Q (28 Oct 2026).
In brief
Kforce Inc. (KFRC) is a solutions firm supplying technology, finance and accounting staff through Flex and Direct Hire models. Technology makes up most of its revenue, and a return to growth in the second half of 2026 makes the company a case to follow amid uncertainty about artificial intelligence, after revenue of 1.33 billion USD in 2025 1.
SWOT
Strengths
- The company has more than six decades of experience, a solid presence with large companies and a brand recognized among technology consultants 1.
- Revenue growth in the first half of 2026 and improving margins indicate disciplined execution 23.
- The company has consistently returned capital to shareholders through dividends and share repurchases 12.
Weaknesses
- Revenue is concentrated in a single segment, technology, and the declines of 2023-2025 showed vulnerability to the economic cycle 1.
- Operating cash flow was negative in the first half of 2026 because of higher trade receivables, which calls for attention to working capital 2.
- The costs and risks of implementing the Workday system could slow responsiveness and raise administrative expenses 1.
Opportunities
- Demand for digital transformation and artificial intelligence projects could raise demand for specialized technology talent 1.
- Growth in solutions-based services and Direct Hire could improve margins if integration works 13.
- Building offshore capabilities in India could lower costs for clients seeking more efficient solutions 1.
Threats
- Economic uncertainty and delayed technology investment could again reduce the number of consultants on assignment 1.
- Competitive pressure and digital staffing platforms could reduce market share and pricing power 1.
- Employment-related legal risks, including worker misclassification and overtime claims, could generate major costs 1.
Risks
- Dependence on economic demandhigh
The company's activity falls when the economy slows, and companies can defer projects or reduce consultants. A recession could hit revenue hard 1.
- Concentration on large clientsmedium
The company mainly serves Fortune 500 clients, which brings stability but also exposure to losing a major client or to changes in their strategy 1.
- Execution risk in internal transformationmedium
The Workday implementation and other strategic programs can distract management and create unexpected costs if they fall short 1.
- Employment-related legal riskmedium
Claims about discrimination, overtime and worker classification can lead to fines and litigation, and insurance does not always cover every case 1.
- Risks of offshore operationslow
Expansion in India brings geopolitical, tax and currency risks as well as compliance challenges with foreign law 1.
Investment thesis
What would need to be true (bull case)
- If the revenue recovery seen in the second half of 2026 holds, the company could show that it has passed the decline and that its solutions model is gaining ground 23.
- If demand for specialists in artificial intelligence and digital transformation rises, the company's market position could benefit directly 1.
- If gross margins keep improving, profitability could grow even with moderate revenue 23.
What would break the thesis
- If economic uncertainty persists, companies could keep deferring technology projects, which would keep revenue under pressure 1.
- If artificial intelligence reduces demand for some consulting roles, the company could lose volume in its core segment 1.
- If the Workday program is delayed or exceeds its budget, administrative costs could stay high and weigh on profitability 1.
What to watch
- Fourth quarter 2026 revenue against guidance of 352 to 360 million USDQ4 2026
- Development of technology segment revenue after the 7.8% growth in the third quarterQ1 2027
- Go-live of the Workday system and its effect on costs2027
- Changes in the SIA technology temporary staffing forecast and the penetration ratenext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 26 Oct 2026; since then the company filed 10-Q (28 Oct 2026).
The business
Kforce Inc. is a solutions firm that specializes in technology, finance and accounting, and other professional staffing services. Founded in 1962 and listed on the New York Stock Exchange, it places approximately 17000 specialists each year with Fortune 500 and other leading companies 1. Its model combines temporary workers (Flex) with permanent placements (Direct Hire) and outcome-oriented projects 1.
Revenue is seasonal and depends on billing days, holiday periods at year end and payroll costs that reset at the start of each year and weigh on first-quarter profitability 1. In 2025 the technology segment remained dominant, while billed hours fell, showing reliance on the number of consultants on assignment 1. Since January 2025 the company has used a development center in Pune, India, for U.S. client projects, and it continued investing in the Workday system in 2026 with go-live planned for early 2027 13.
Market context
SIA estimated the U.S. technology temporary staffing market at 38 billion USD for 2026 and finance and accounting temporary staffing at 8 billion USD, with Kforce holding roughly 3% of technology 1. SIA projected a 2% decline for 2025 and modest 1% growth for 2026, and the March 2026 forecast stayed in the same range 12.
Temporary staffing penetration fell to 1.5% in December 2025 from 1.7% a year earlier, while unemployment rose to 4.4% and then eased to 4.2% in June 2026, pointing to better demand for professionals 12.
Trends
- Artificial intelligence and technology transitionmixed
Clients are delaying some projects until their artificial intelligence strategy is clearer, which can reduce near-term demand. At the same time the company says technology transitions create new demand for specialists, which could support revenue if adoption continues 13.
- Recovery in demand for flexible workforcetailwind
In the first six months of 2026 revenue grew, and the company says organizations are turning to flexible models to advance backlogs of technology projects. If this holds, it could support growth in the technology segment 2.
- Macroeconomic uncertainty and cautious hiringheadwind
Companies remain cautious about permanent hiring, and the labor market was weak in 2025, which pressed volumes down. If uncertainty persists, demand could stay limited 13.
- Shift toward solutions-based servicestailwind
Outcome-oriented engagements are growing in weight and are described as an important source of growth and better margins. The effect depends on how fast the company can integrate these capabilities with staff augmentation, which has weakened 13.
Competitive position
The temporary staffing market is highly competitive and fragmented, with large global and national providers as well as many local firms. In solutions the company also faces accounting, consulting and systems integration firms, and online staffing platforms and internal client recruiting can add competition 1.
Barriers to entry are limited and some competitors have greater resources, which can put pressure on prices and margins. If these pressures grow, the company could lose market share 1.
- Global and national temporary staffing providers
Large, mature companies with national and global reach that compete for technology and finance contracts 1.
- Local staffing firms
Numerous small firms with limited offerings and regional client bases that dominate the number of providers in the sector 1.
- Accounting and consulting firms
Global, national and regional firms offering solutions and advisory services that can compete with the company's solutions offering 1.
- Online staffing platforms and internal recruiting
Digital platforms and clients' internal recruiting teams described as alternatives that could threaten traditional staffing services 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report28 Oct 2026
- Current report26 Oct 2026Results of operations · Financial statements and exhibits
- Current report16 Sept 2026Other events
- Quarterly report29 Jul 2026
- Current report27 Jul 2026Results of operations · Financial statements and exhibits
- Current report17 Jun 2026Other events
- Quarterly report29 Apr 2026
- Current report27 Apr 2026Results of operations · Financial statements and exhibits
- Current report24 Apr 2026Shareholder vote
- Current report17 Mar 2026Other events
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Kforce Inc. · 20 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Kforce Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Kforce Inc. · 26 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.