Kforce Inc. reported a decline in financial performance for the six months ended June 30, 2025, with total revenue decreasing by 6.2% to $664.3 million compared to $708.2 million in the same period of 2024. The company's net income also fell by 26.0% to $18.6 million, or $1.03 per diluted share, down from $25.1 million, or $1.33 per diluted share, in the prior year. The decrease in revenue was attributed primarily to a reduction in the number of consultants on assignment, which Kforce linked to ongoing macroeconomic uncertainties affecting client demand.
In terms of segment performance, revenue from the Technology segment decreased by 5.1%, while the Finance and Accounting (FA) segment saw a more significant decline of 18.4%. Flex revenue, which constitutes the majority of Kforce's business, dropped by 6.1% to $651.0 million, with both segments experiencing declines. The gross profit margin for the first half of 2025 decreased by 50 basis points to 26.9%, driven by a lower mix of Direct Hire revenue and increased healthcare costs impacting Flex gross profit margins.
Kforce's operational metrics showed a workforce of over 1,600 associates and approximately 7,500 consultants on assignment as of June 30, 2025. The company has been focusing on strategic initiatives, including the implementation of Workday, which is expected to enhance operational efficiency. Kforce also returned $45.7 million to shareholders through stock repurchases and dividends during the first half of 2025, reflecting its commitment to shareholder value despite the challenging market conditions.
Looking ahead, Kforce anticipates continued pressure on revenue due to the uncertain economic environment, although it noted slight sequential improvements in Flex revenue in both segments during the second quarter of 2025. The company expects to maintain its focus on strategic investments and cost management to position itself for future growth, while also preparing for potential increases in demand as macroeconomic conditions stabilize.
About KFORCE INC
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