Kforce Inc. Reports 5.4% Revenue Decline to $1.33 Billion for Fiscal Year 2025

Kforce Inc. reported a revenue decline of 5.4% for the fiscal year ending December 31, 2025, totaling $1.33 billion, down from $1.41 billion in 2024. The decrease was primarily driven by a 4.8% drop in Technology segment revenue, which constitutes 93% of total revenues, and a 12.3% decline in the Finance and Accounting (FA) segment. The company attributed these declines to macroeconomic uncertainties and the impact of evolving technology, particularly in artificial intelligence, which has led clients to reassess their investment strategies.

In terms of profitability, Kforce's net income fell by 30.9% to $34.8 million, or $1.96 per diluted share, compared to $50.4 million, or $2.68 per diluted share, in the previous year. The gross profit margin also decreased slightly to 27.2% from 27.4% in 2024, reflecting a decline in the mix of Direct Hire revenue. Selling, General and Administrative (SG&A) expenses as a percentage of revenue increased to 23.0%, up from 22.0% in 2024, largely due to lower revenue and gross profit levels.

Strategically, Kforce has made significant investments in its operational capabilities, including the establishment of a development center in Pune, India, which began supporting U.S. client engagements in January 2025. This move is part of a broader strategy to enhance service offerings through a multi-shore delivery model. The company also continues to focus on integrating artificial intelligence into its operations, aiming to improve efficiency and client service.

Operationally, Kforce placed approximately 17,000 consultants annually, with a notable increase in the average bill rate for FA services, which rose to $53 per hour, a 3.9% increase from the previous year. However, the total number of consultants on assignment decreased, reflecting the challenging economic environment. The company reported a sequential revenue growth of 3% in the fourth quarter of 2025, indicating a potential stabilization in demand as clients begin to advance their technology initiatives.

Looking ahead, Kforce remains cautiously optimistic about its future performance. The company anticipates that the demand for technology staffing and solutions will rebound as clients gain confidence in the macroeconomic outlook and their technology roadmaps become clearer. Kforce plans to continue investing in its strategic priorities, including technology transformation and enhancing its consulting solutions, to position itself for growth in a recovering market.