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Kforce
(NYSE:KFRC)
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Rating:64Neutral
Price Target:
$56.00
▼(-2.81% Downside)
Action:Downgraded
Date:09/17/26
KFRC scores as moderately attractive: the strongest positives are the earnings-call-backed operating inflection (revenue/EPS growth and margin expansion with supportive guidance) and a strong balance sheet profile. Offsetting these are weakening cash flow conversion and notably weak technical momentum (price below key moving averages with negative MACD). Valuation is neutral-to-supportive due to the dividend yield, but the P/E is not especially cheap.
Positive Factors
Operating inflection
Recent revenue and earnings growth indicate an operating inflection after prior contraction, supported by continued Q3 guidance. If sustained, improving demand can lift utilization and operating leverage, strengthening Kforce’s earnings power over the next several quarters.
Negative Factors
Multi-year revenue and margin contraction
The recent operating inflection has not erased the company’s multi-year revenue contraction or profitability decline. Lower net margins leave less room for execution errors and make sustained recovery dependent on rebuilding demand, utilization, and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating inflection
Recent revenue and earnings growth indicate an operating inflection after prior contraction, supported by continued Q3 guidance. If sustained, improving demand can lift utilization and operating leverage, strengthening Kforce’s earnings power over the next several quarters.
Read all positive factors
Kforce Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows the profit left after direct costs for each segment, highlighting differences in margins and cost structure across Kforce’s services. Useful for assessing which businesses are the most profitable, where margin expansion or pressure may come from, and how segment trends will affect overall earnings and cash flow.
Shows the profit left after direct costs for each segment, highlighting differences in margins and cost structure across Kforce’s services. Useful for assessing which businesses are the most profitable, where margin expansion or pressure may come from, and how segment trends will affect overall earnings and cash flow.
Data provided by:
The Fly
The FlyKforce (KFRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$918.37M
Dividend Yield3.1%
Average Volume (3M)239.92K
Price to Earnings (P/E)24.3
Beta (1Y)0.64
Revenue Growth-1.26%
EPS Growth-11.37%
CountryUS
Employees1,600
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding17,909,000
10 Day Avg. Volume179,178
30 Day Avg. Volume239,918
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)4.41
Price to Sales (P/S)0.41
P/FCF Ratio11.74
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda15.99
Forecast
1Y Price Target
$61.00Price Target Upside5.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.54
Revenue Forecast (FY)$1.38B
Kforce Business Overview & Revenue Model
Company Description
Kforce Inc. is a professional staffing and solutions firm operating across the United States. The company is structured into two main divisions: Technology, and Finance and Accounting (FA). The Technology segment provides specialized talent for in...
How the Company Makes Money
Kforce makes money primarily by providing staffing and related talent solutions to client organizations. Its key revenue streams are (1) contract staffing and (2) permanent placement (direct-hire), with additional revenue from project-based soluti...
Kforce Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
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.Positive Updates
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).
Negative Updates
YTD Negative Operating Cash Flow
Year-to-date operating cash flow was negative $6.7 million (consistent with seasonal/inflection dynamics); management expects to resume positive operating cash flow in the second half of 2026 as receivables monetize.
Read all updates
Q2-2026 Updates
Positive
Negative
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).
Read all positive updates
Company Guidance
Kforce guided third-quarter 2026 revenue of $349 million–$357 million (64 billing days), with EPS of $0.71–$0.79 and an assumed effective tax rate of ~30%; at the midpoint this implies ~1.1% sequential revenue growth and ~6.1% year‑over‑year revenue growth and a ~19% EPS increase versus prior year. Management noted Q2 results of $349.3M revenue (+4.5% YoY), $0.73 EPS (+~24% YoY), 28.5% gross margin (+140 bps YoY, +120 bps sequential), 5.4% operating margin, ~18% YoY increases in job orders and new assignment starts, ~20% sequential growth in direct hire, a stable average bill rate of ~$90/hour, DSO ~58 days, year‑to‑date negative operating cash flow of $6.7M (expecting positive cash flow in H2 2026), net debt of $106.8M (from $90.2M), leverage ~1.4x TTM EBITDA, Q2 return of capital of $9.6M (dividends $6.7M, repurchases ~$2.9M), and reiterated a goal of at least an 8% operating margin when annual revenue reaches $1.7B (noting near‑term Workday‑related non‑cash D&A in early 2027 with benefits more meaningfully realized in late 2027 into 2028).Kforce Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.34B | 1.33B | 1.41B | 1.53B | 1.71B | 1.58B |
| Gross Profit | 369.37M | 355.82M | 385.44M | 427.07M | 501.11M | 456.86M |
| EBITDA | 57.42M | 52.49M | 73.55M | 90.26M | 121.29M | 103.77M |
| Net Income | 36.48M | 34.83M | 50.41M | 61.08M | 75.43M | 75.18M |
Balance Sheet | ||||||
| Total Assets | 410.19M | 365.64M | 357.83M | 357.98M | 392.00M | 503.40M |
| Cash, Cash Equivalents and Short-Term Investments | 330.00K | 2.14M | 349.00K | 119.00K | 121.00K | 96.99M |
| Total Debt | 122.07M | 82.95M | 47.60M | 57.46M | 46.56M | 118.26M |
| Total Liabilities | 286.56M | 241.03M | 203.22M | 198.90M | 209.81M | 315.00M |
| Stockholders Equity | 123.63M | 124.60M | 154.62M | 159.08M | 182.20M | 188.41M |
Cash Flow | ||||||
| Free Cash Flow | 22.56M | 46.80M | 79.30M | 83.70M | 82.70M | 66.46M |
| Operating Cash Flow | 36.30M | 61.65M | 86.87M | 91.47M | 90.81M | 72.90M |
| Investing Cash Flow | -13.74M | -14.14M | -7.56M | -4.86M | -14.28M | 8.30M |
| Financing Cash Flow | -24.70M | -45.71M | -79.08M | -86.61M | -173.39M | -87.70M |
Kforce Technical Analysis
Negative
57.62
Price Trends
54.52
Negative
52.09
Negative
41.84
Positive
Market Momentum
-0.59
Negative
43.67
Neutral
32.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFRC, the sentiment is Negative. The current price of 57.62 is above the 20-day moving average (MA) of 51.94, above the 50-day MA of 54.52, and above the 200-day MA of 41.84, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFRC.
Kforce Risk Analysis
Kforce disclosed 27 risk factors in its most recent earnings report. Kforce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kforce Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $918.37M | 24.31 | 29.32% | 3.10% | -1.26% | -11.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $80.84M | 37.68 | 2.31% | 3.18% | -11.76% | 136.95% | |
61 Neutral | $3.47B | 29.64 | 9.18% | 6.96% | -4.95% | -34.47% | |
55 Neutral | $2.45B | 23.77 | 5.06% | 2.73% | 6.72% | ― | |
54 Neutral | $565.04M | -2.01 | -27.06% | 1.92% | -9.63% | -4468.44% | |
51 Neutral | $50.73M | -6.18 | -19.17% | 43.01% | -58.57% | 11.65% |
* Industrials Sector Average
KFRC
Kforce
51.28
24.55
91.84%
KELYA
Kelly Services
15.59
3.64
30.43%
MAN
ManpowerGroup
52.78
16.59
45.82%
MHH
Mastech Holdings
6.73
-0.30
-4.27%
RHI
Robert Half
33.93
4.39
14.87%
BGSF
BGSF
4.75
1.02
27.35%
Kforce Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kforce Adopts Rule 10b5-1 Share Repurchase Plan
Positive
Sep 16, 2026
On September 15, 2026, Kforce Inc. adopted a corporate stock trading plan to repurchase its outstanding common shares under a previously authorized board share repurchase program. The plan, structured in compliance with Rule 10b5-1 of the Securiti...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Kforce Announces New Rule 10b5-1 Share Repurchase Plan
Positive
Jun 17, 2026
On June 15, 2026, Kforce Inc. adopted a corporate stock trading plan to repurchase outstanding common shares under a previously authorized share repurchase program, signaling continued use of buybacks as a capital allocation tool. The plan, struct...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.