Kforce Inc. Reports 2.3% Revenue Increase to $679.7 Million for First Half of 2026

Kforce Inc. reported a revenue increase of 2.3% for the six months ended June 30, 2026, reaching $679.7 million compared to $664.3 million in the same period of 2025. The growth was primarily driven by a 2.1% increase in Technology revenue and a 4.9% rise in Finance and Accounting (FA) revenue, attributed to a higher number of consultants on assignment. Gross profit for the same period rose to $189.5 million, up from $178.9 million, resulting in a gross profit margin improvement to 27.9% from 26.9% year-over-year.

In terms of profitability, Kforce's net income increased by 8.9% to $20.2 million, or $1.19 per diluted share, compared to $18.6 million, or $1.03 per diluted share, in the prior year. The company's selling, general, and administrative (SG&A) expenses as a percentage of revenue rose to 23.0% from 22.5%, primarily due to higher performance-based compensation costs linked to improved financial performance. The firm returned $28.2 million to shareholders through stock repurchases and dividends during the first half of 2026.

Kforce's operational metrics showed a workforce of over 1,600 associates and more than 8,000 consultants on assignment as of June 30, 2026. The company experienced a notable increase in Flex revenue, which rose 2.3% to $666.1 million, while Direct Hire revenue also saw a slight increase of 2.1% to $13.6 million. The firm reported a significant rise in Flex gross profit margins, which improved to 26.4% from 25.4% year-over-year, driven by better bill and pay spreads.

The company’s cash flow from operating activities turned negative, with a cash outflow of $6.7 million for the first half of 2026, compared to a cash inflow of $18.6 million in the same period of 2025. This shift was primarily due to an increase in trade receivables. Kforce's total assets increased to $410.2 million from $365.6 million at the end of 2025, while total liabilities rose to $286.6 million from $241.0 million, largely due to increased borrowings under its credit facility, which stood at $107.1 million as of June 30, 2026.

Looking ahead, Kforce remains optimistic about its growth trajectory, citing a favorable macro demand environment for talent and a shift in client behavior towards flexible workforce solutions. The company anticipates continued revenue growth in its Technology and FA segments, supported by ongoing investments in strategic initiatives and a focus on leveraging technology to enhance service delivery. However, Kforce acknowledges potential risks from macroeconomic uncertainties and evolving market conditions that could impact its operational performance.