Kforce, Inc. (NYSE: KFRC) Q2 2025 Earnings | 07/28/2025

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Kforce, Inc. delivered Q2 2025 results that reflected a stable but constrained demand environment, as the company navigated ongoing macroeconomic uncertainties and sector-specific headwinds. Revenue for the quarter was $334.3 million, marking a slight sequential rise of 1.3% but a 6.2% year-over-year decrease, with earnings per share of $0.59 in line with analyst expectations. The Technology Flex business, which remains the company’s core growth engine, showed stability on a quarter-over-quarter basis while still trending below prior-year levels. Finance and Accounting Flex revenue delivered a modest sequential increase but was down sharply compared to last year. Kforce’s operating and gross margins improved from the previous quarter, supported by cost discipline and a seasonal recovery in payroll taxes, even as they trailed the prior-year period due to softer Direct Hire performance and higher healthcare costs. Management reaffirmed the company’s strategic focus on AI and digital transformation, citing ongoing investments in its solutions and delivery capabilities. The India development center continued to progress with new project wins, and further enhancements to cloud-based systems like Workday remained underway, though their financial impact is not yet material. During the quarter, Kforce returned $17.4 million to shareholders through dividends and share repurchases and maintained its quarterly dividend at $0.39 per share. Liquidity and balance sheet strength persisted, with a conservative approach to debt and capital allocation as operating cash flow and free cash flow came under pressure compared to last year. Looking ahead, Kforce guided Q3 2025 revenue in the range of $324–$332 million and EPS between $0.53 and $0.61, reflecting cautious expectations amid selective client pullbacks and a sustained, demand-constrained environment. While the direct hire segment is expected to remain soft in the near term, management expressed optimism that stabilization in technology demand and continued investments in AI and consulting will better position the company to capture emerging opportunities when client confidence returns. Kforce’s client roster continues to span more than 70% of Fortune 500 enterprises, offering a resilient platform for future growth. About Inside Ticker: For more expert analysis and real-time updates on Kforce, Inc. (NYSE: KFRC) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #Kforce #KFRC #Q22025 #Earnings #FinancialResults #TechnologyStaffing #AIDigital #Revenue #NetIncome #CashFlow #ShareholderReturns #Dividend #Consulting #OperationalExcellence #StockMarket #InsideTicker #Guidance #TechTalent #WorkforceSolutions #CapitalDiscipline #2025Outlook #AIInvestment #CostControl #QuarterlyUpdate #BusinessUpdate #DirectHire #FlexRevenue