kfrc-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________________________________________________________________________

FORM 10-Q

________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-42104

_________________________________________________________________

Kforce Inc.

Exact name of registrant as specified in its charter

_______________________________________________________________


Florida						59-3264661
State or other jurisdiction of incorporation or organization						IRS Employer Identification No.


1150 Assembly Drive, Suite 500, Tampa, Florida						33607
Address of principal executive offices						Zip Code

Registrant’s telephone number, including area code: (813) 552-5000

_______________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	KFRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.): Yes ☐ No ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

The number of shares outstanding (in thousands) of the registrant’s common stock as of April 23, 2025 was 18,630.



PART I	Item 1.	Financial Statements.	3
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	13
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	21
	Item 4.	Controls and Procedures.	21

PART II	Item 1.	Legal Proceedings.	22
	Item 1A.	Risk Factors.	22
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	22
	Item 3.	Defaults Upon Senior Securities.	22
	Item 4.	Mine Safety Disclosures.	22
	Item 5.	Other Information.	22
	Item 6.	Exhibits.	23
	SIGNATURES		24


	Three Months Ended March 31,
	2025		2024
Revenue	$	330,028	$	351,889
Direct costs	241,768		256,639
Gross profit	88,260		95,250
Selling, general and administrative expenses	75,165		78,190
Depreciation and amortization	1,464		1,333
Income from operations	11,631		15,727
Other expense, net	565		656
Income before income taxes	11,066		15,071
Income tax expense	2,921		4,084
Net income	$	8,145	$	10,987




Earnings per share – basic	$	0.45	$	0.59
Earnings per share – diluted	$	0.45	$	0.58

Weighted average shares outstanding – basic	18,161		18,726
Weighted average shares outstanding – diluted	18,241		18,932


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	444	$	349
Trade receivables, net of allowances of $1,504 and $1,560, respectively	220,532		215,690

Prepaid expenses and other current assets	8,845		9,367
Total current assets	229,821		225,406
Fixed assets, net	7,154		7,723
Other assets, net	100,936		94,656
Deferred tax assets, net	5,244		5,009
Goodwill	25,040		25,040
Total assets	$	368,195	$	357,834
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	59,367	$	61,753
Accrued payroll costs	40,922		38,823
Current portion of operating lease liabilities	3,152		3,038
Income taxes payable	7,856		8,843
Total current liabilities	111,297		112,457
Long-term debt – credit facility	65,500		32,700

Other long-term liabilities	53,371		58,059
Total liabilities	230,168		203,216
Commitments and contingencies (Note J)
Stockholders’ equity:
Preferred stock, $0.01 par value; 15,000 shares authorized, none issued and outstanding	—		—
Common stock, $0.01 par value; 250,000 shares authorized, 73,841 and 73,835 issued, respectively	738		738
Additional paid-in capital	547,260		543,109

Retained earnings	546,916		546,202
Treasury stock, at cost; 55,036 and 54,619 shares, respectively	(956,887)		(935,431)
Total stockholders’ equity	138,027		154,618
Total liabilities and stockholders’ equity	$	368,195	$	357,834


	Common Stock			Additional Paid-In Capital						Treasury Stock				Total Stockholders’ Equity
	Shares	Amount				Retained Earnings			Shares		Amount
Balance, December 31, 2024	73,835	$	738	$	543,109		$	546,202		54,619		$	(935,431)	$	154,618
Net income	—	—		—			8,145			—		—		8,145
Issuance for stock-based compensation and dividends, net of forfeitures	6	—		376			(376)			—		—		—
Stock-based compensation expense	—	—		3,656			—			—		—		3,656
Employee stock purchase plan	—	—		119			—			(3)		56		175
Dividends ($0.39 per share)	—	—		—			(7,051)			—		—		(7,051)
Repurchases of common stock	—	—		—			—			420		(21,512)		(21,512)
Other	—	—		—			(4)			—		—		(4)
Balance, March 31, 2025	73,841	$	738	$	547,260		$	546,916		55,036		$	(956,887)	$	138,027


	Three Months Ended March 31,
Supplemental Disclosure of Cash Flow Information	2025		2024
Cash Paid During the Period For:
Income taxes, net	$	4,156	$	300
Operating lease liabilities	1,206		1,297
Interest, net	657		614
Non-Cash Investing and Financing Transactions:
ROU assets obtained from operating leases	$	1,469	$	1,152
Employee stock purchase plan	175		204
Unsettled repurchases of common stock	500		200
Equipment and software additions included in accounts payable and other accrued liabilities	—		181


(shares in thousands)	2025	2024
Three Months Ended March 31,
Common stock equivalents	80	206
Anti-dilutive shares	583	1


(in thousands)	Technology		FA		Total
Three Months Ended March 31,
2025
Revenue	$	306,284	$	23,744	$	330,028
Direct costs	227,100		14,668		241,768
Gross profit	$	79,184	$	9,076	$	88,260
Less:
Selling, general and administrative expenses					75,165
Depreciation and amortization					1,464
Other expense, net					565
Income before income taxes					$	11,066


2024
Revenue	$	322,084	$	29,805	$	351,889
Direct costs	238,047		18,592		256,639
Gross profit	$	84,037	$	11,213	$	95,250
Less:
Selling, general and administrative expenses					78,190
Depreciation and amortization					1,333
Other expense, net					656
Income before income taxes					$	15,071




(in thousands)
Allowance for credit losses, December 31, 2024	$	916
Current period provision	69
Write-offs charged against the allowance, net of recoveries of amounts previously written off	(48)

Allowance for credit losses, March 31, 2025	$	937


(in thousands, except per share amounts)	Number of Restricted Stock	Weighted-Average Grant Date Fair Value		Total Intrinsic Value of Restricted Stock Vested
Outstanding at December 31, 2024	910	$	61.28
Granted	8	$	60.21
Forfeited	(1)	$	57.79
Vested	(6)	$	24.10	$	308
Outstanding at March 31, 2025	911	$	61.53


CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS


	Three Months Ended March 31,
(in thousands)	2025		Increase (Decrease)		2024
Technology
Flex revenue	$	302,435	(5.0)	%	$	318,514
Direct Hire revenue	3,849		7.8	%	3,570
Total Technology revenue	$	306,284	(4.9)	%	$	322,084
FA
Flex revenue	$	20,135	(23.2)	%	$	26,210
Direct Hire revenue	3,609		0.4	%	3,595
Total FA revenue	$	23,744	(20.3)	%	$	29,805

Total Flex revenue	$	322,570	(6.4)	%	$	344,724
Total Direct Hire revenue	7,458		4.1	%	7,165
Total Revenue	$	330,028	(6.2)	%	$	351,889


	Three Months Ended
	March 31, 2025 vs. March 31, 2024
Key Drivers - Increase (Decrease)	Technology		FA
Volume - hours billed	$	(19,462)	$	(6,309)
Bill rate	3,366		256
Billable expenses	17		(22)
Total change in Flex revenue	$	(16,079)	$	(6,075)


	Three Months Ended March 31,
(in thousands)	2025	Increase (Decrease)		2024
Technology	3,337	(6.1)	%	3,555
FA	389	(24.0)	%	512
Total Flex hours billed	3,726	(8.4)	%	4,067


(in thousands)	2025		% of Revenue		2024		% of Revenue
Three Months Ended March 31,
Compensation, commissions, payroll taxes and benefits costs	$	63,476	19.2	%	$	65,609	18.6	%
Other (1)	11,689		3.6	%	12,581		3.6	%
Total SG&A	$	75,165	22.8	%	$	78,190	22.2	%


	Sequential Growth Rates (GAAP)
		2025	2024
		Q1	Q4	Q3	Q2	Q1
Technology Flex		(3.7)%	(2.5)%	(0.6)%	1.7%	(2.3)%
FA Flex		(12.8)%	(2.7)%	(4.1)%	(5.7)%	(11.5)%
Total Flex revenue		(4.3)%	(2.5)%	(0.8)%	1.2%	(3.1)%

	Sequential Growth Rates (Non-GAAP)
		2025	2024
		Q1	Q4	Q3	Q2	Q1
Billing Days		63	62	64	64	64
Technology Flex		(5.2)%	0.6%	(0.6)%	1.7%	(6.9)%
FA Flex		(14.2)%	0.5%	(4.1)%	(5.7)%	(15.7)%
Total Flex revenue		(5.8)%	0.6%	(0.8)%	1.2%	(7.6)%


	Year-Over-Year Growth Rates (GAAP)
		2025	2024
		Q1	Q4	Q3	Q2	Q1
Technology Flex		(5.0)%	(3.7)%	(3.6)%	(6.4)%	(11.4)%
FA Flex		(23.2)%	(22.1)%	(20.7)%	(23.1)%	(27.2)%
Total Flex revenue		(6.4)%	(5.2)%	(5.0)%	(7.8)%	(12.8)%

	Year-Over-Year Growth Rates (Non-GAAP)
		2025	2024
		Q1	Q4	Q3	Q2	Q1
Billing Days		63	62	64	64	64
Technology Flex		(3.5)%	(5.2)%	(5.1)%	(6.4)%	(11.4)%
FA Flex		(22.0)%	(23.3)%	(21.9)%	(23.1)%	(27.2)%
Total Flex revenue		(4.9)%	(6.7)%	(6.5)%	(7.8)%	(12.8)%


Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1, 2025 to January 31, 2025	15,870	$	54.23	15,870	$	62,637,076
February 1, 2025 to February 28, 2025	193,612	$	51.36	191,940	$	52,777,188
March 1, 2025 to March 31, 2025	210,640	$	49.86	210,640	$	42,275,612
Total	420,122	$	50.71	418,450	$	42,275,612


Exhibit Number			Description
3.1			Amended and Restated Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 33-91738) filed with the SEC on April 28, 1995.
3.1a			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended.
3.1b			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended.
3.1c			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended.
3.1d			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on May 17, 2000.
3.1e			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Annual Report on Form 10-K (File No. 000-26058) filed with the SEC on March 29, 2002.
3.2			Amended & Restated Bylaws, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on April 29, 2013.
1 0.1*			Kforce Inc. 2025 Stock Incentive Plan, incorporated by reference to the Registrant’s Registration Statement on Form S-8 (File No. 333-286770) filed with the SEC on April 25, 2025.
1 0.2*²			Form of Restricted Stock Agreements under the 2025 Stock Incentive Plan.
31.1²			Certification by the Chief Executive Officer of Kforce Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2²			Certification by the Chief Financial Officer of Kforce Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification by the Chief Executive Officer of Kforce Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as furnished herewith.
32.2			Certification by the Chief Financial Officer of Kforce Inc. pursuant to 18 U.S.C. Section 2350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as furnished herewith.

101.1			The following material from this Quarterly Report on Form 10-Q of Kforce Inc. for the period ended March 31, 2025, formatted in XBRL Part I, Item 1 of this Form 10-Q formatted in XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Statements of Operations; (ii) Unaudited Condensed Consolidated Balance Sheets; (iii) Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity; (iv) Unaudited Condensed Consolidated Statements of Cash Flows; and (v) related notes to these financial statements.
104			Cover Page Interactive Data File - formatted in Inline XBRL and contained in Exhibit 101.


²			Filed herewith.
*			Management contract or compensatory plan or arrangement.

SEC Form 10-Q filed by Kforce Inc.