EarningsQ2 2026 Earnings Report
DE:ROF Q2 2026 EPS Results
Actual EPS€0.65
Consensus EPS€0.63
Beat/MissBeat by +€0.02
One Year Ago EPS€0.53
DE:ROF Q2 2026 Revenue Results
Actual Revenue€311.36M
Expected Revenue€310.27M
Beat/MissBeat by +€1.09M
YoY Revenue Growth+4.49%
Earnings Announcement Details
QuarterQ2 2026
Date07/27/2026
TimeAfter Close
Conference CallMonday, July 27, 2026
DE:ROF Upcoming Earnings
Kforce's next earnings date is estimated for October 26, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:ROF Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized multiple positive operating and financial developments — sequential and year-over-year revenue growth, strong EPS improvement (~24% YoY), notable gross margin expansion (+140 bps YoY), rising job orders/new starts (~18% YoY) and an expanding higher-margin Consulting Solutions mix (pipeline +30% YoY). Management provided constructive Q3 guidance and reiterated longer-term margin targets while acknowledging near-term working capital seasonality, a YTD operating cash outflow, a modest rise in net debt from buybacks, and temporary SG&A deleverage. On balance, the operational momentum and margin improvement materially outweigh the near-term cash flow and seasonality challenges.Company Guidance
Revenue Growth and Inflection
Total revenue of $349.3 million in Q2 2026, up 4.5% year-over-year and up 4.1% on a sequential billing-day adjusted basis; management noted a revenue inflection beginning in Q1 and meaningful expansion in Q2, with continued sequential improvement expected in Q3 (guidance midpoint implies +1.1% sequential and +6.1% year-over-year).
Earnings Per Share Acceleration
Q2 diluted EPS of $0.73, up approximately 24% year-over-year; Q3 EPS guidance of $0.71–$0.79 with midpoint representing ~19% year-over-year growth.
Gross Margin Expansion
Overall gross margin of 28.5% in Q2, an increase of 140 basis points year-over-year and +120 basis points sequentially; technology flex margins improved ~120 basis points YoY in Q2 (after ~80 bps improvement in Q1).
Improved Demand Signals and Activity
Approximately 18% year-over-year improvement in job orders and new assignment starts in Q2; management reported three consecutive quarters of revenue growth, broad-based improvement across industries (8 of top 10 industries showing sequential growth), and three weeks of stronger activity in late July.
Consulting Solutions and Higher-Margin Mix
Consulting Solutions and offshore/nearshore work are driving mix improvement: consulting margins noted as roughly 400–600 basis points higher than staff augmentation; Consulting Solutions pipeline up ~30% year-over-year and is expected to be a primary driver of sequential growth.
Stable Average Bill Rate and Pricing Discipline
Average bill rate remained stable at approximately $90 per hour over the last four years; management cited pricing discipline and a shift to higher-value engagements helping support margins despite greater offshore mix.
Capital Returns and Strong ROE
Returned $9.6 million to shareholders in the quarter (dividends ~$6.7 million and share repurchases ~$2.9 million); reported return on equity of ~30%, underscoring strong capital allocation returns.
Credible Outlook and Profitability Target
Q3 revenue guidance of $349M–$357M and EPS guidance of $0.71–$0.79; company reiterates expectation of achieving at least 8% operating margin when annual revenue returns to $1.7 billion and expects continued operating leverage as productivity initiatives and Workday implementation benefits materialize.
Balance Sheet and Leverage Profile
Net debt of $106.8 million and leverage of approximately 1.4x trailing 12-month EBITDA; management describes the balance sheet as strong and views leverage as conservative while maintaining flexibility for buybacks, dividends, or debt paydown.
DE:ROF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed