Kforce Inc. (NYSE: KFRC) posted stronger-than-expected third-quarter 2025 results, signaling resilience amid ongoing softness in professional staffing demand. The Tampa-based firm, known for its technology and finance/accounting (FA) staffing solutions, exceeded both revenue and profit expectations as consultant volumes rebounded late in the quarter.
“We are pleased with our performance in the third quarter where we exceeded both top and bottom line expectations,” said Joseph J. Liberatore, Kforce’s President and CEO. “Consultants on assignment in our Technology segment improved throughout the quarter, and our FA business achieved meaningful sequential growth. This momentum has carried into the fourth quarter.”
Revenue and Margin Overview
For the quarter ended September 30, 2025, Kforce reported revenue of $332.6 million, down 0.5% sequentially and 5.9% year over year, a modest contraction given broader hiring headwinds in the tech and finance sectors.
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Technology Flex revenue fell 1.2% sequentially and 5.5% year over year, reflecting stabilization after several sluggish quarters.
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FA Flex revenue climbed 6.9% sequentially, offsetting some tech softness, though still down 7.3% year over year.
Margins showed slight improvement, with a gross profit margin of 27.7%, up 60 basis points sequentially, while operating margin held steady at 4.5%. Diluted EPS came in at $0.63, up 6.8% from Q2, though down 16% year over year—a performance that still topped analyst expectations.
Shareholder Returns and Capital Allocation
Kforce returned $16.2 million to shareholders in the form of dividends and share repurchases during the quarter. The company’s board also approved a $0.39 quarterly dividend, payable December 19, 2025, and expanded its share repurchase authorization to $100 million.
That move signals confidence in the company’s fundamentals and long-term growth outlook, even as short-term hiring trends remain uneven across industries.
Fourth Quarter Outlook: Momentum With Moderation
Looking ahead, Kforce projects Q4 revenue between $326 million and $334 million and EPS between $0.43 and $0.51, with margins remaining relatively stable. Though there are fewer billing days in the fourth quarter (62 versus 64 in Q3), management expects sequential growth in both Technology and FA segments—a key signal of sustained client demand.
The company anticipates an operating margin between 3.7% and 4.1%, gross margins around 27.2%, and an effective tax rate of 32.4%.
Kforce’s results mirror a cautious recovery seen across the staffing sector. Competitors such as Robert Half and ManpowerGroup have also cited early signs of demand stabilization, particularly in tech and finance roles, as companies balance cost control with the need to secure skilled talent ahead of 2026.
Kforce’s diversified portfolio and disciplined cost management appear to be cushioning it from the worst of the market contraction. The firm’s increased repurchase authorization suggests a steady hand amid uncertainty—a nod to investors looking for confidence in a cyclical industry.
The company will host its Q3 2025 earnings call on November 3 at 5:00 p.m. ET. Investors can access prepared remarks via the Kforce Investor Relations page.
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Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Public relations, investor relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented NX network. Business Wire’s global newsrooms are available to meet the needs of communications professionals and news media worldwide.
