Kforce Inc. Reports 8.3% Revenue Decline to $1.41 Billion for Fiscal Year 2024

Kforce Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total revenue decreasing by 8.3% to $1.41 billion, down from $1.53 billion in 2023. The company's Technology segment, which constitutes 92% of total revenue, saw a 6.6% drop to $1.3 billion, while the Finance and Accounting (FA) segment experienced a more significant decline of 23.5%, generating $112.6 million. The decrease in revenue was attributed primarily to ongoing macroeconomic uncertainty, which has led clients to be more cautious in their investments in digital transformation initiatives.

In terms of profitability, Kforce's net income fell by 17.5% to $50.4 million, or $2.68 per share, compared to $61.1 million, or $3.13 per share, in the previous year. The gross profit margin also decreased by 50 basis points to 27.4%, primarily due to a decline in the mix of higher-margin Direct Hire revenue. Selling, General and Administrative (SG&A) expenses as a percentage of revenue increased slightly to 22.0% from 21.9% in 2023, reflecting the company's efforts to manage costs amid declining revenues.

Strategically, Kforce has focused on enhancing its service offerings and operational capabilities. The company established a development center in Pune, India, which began supporting project engagements with U.S.-based clients in January 2025. This move is part of Kforce's broader strategy to evolve its nearshore and offshore delivery capabilities, aiming to provide cost-effective solutions to clients. Additionally, Kforce has continued to invest in its back-office transformation program, including the implementation of Workday, which is expected to enhance operational efficiency.

Operationally, Kforce placed approximately 18,000 consultants annually, with a significant majority employed directly by the firm. The average bill rate for the Technology segment remained stable at around $90 per hour, while the FA segment saw a slight increase to $51 per hour. However, the number of consultants on assignment decreased, contributing to the overall revenue decline. The company reported a total capital return to shareholders of $64.7 million in 2024, which included $36.5 million in stock repurchases and $28.2 million in dividends.

Looking ahead, Kforce anticipates continued challenges in the macroeconomic environment, with expectations of further revenue declines in the first quarter of 2025. The company remains committed to its strategic priorities, including enhancing its technology solutions and expanding its market share in the staffing industry. Kforce's management believes that the long-term demand for technology staffing and solutions will remain strong, driven by ongoing digital transformation efforts across various industries.