Highlights

  • Revenue for the quarter ended September 30, 2026 was $357.8 million, an increase of 2.4% sequentially and 7.5% year over year.
  • Diluted earnings per share were $0.90, including a $0.12 benefit from a gain on company-owned life insurance policies.
  • Fourth quarter 2026 guidance calls for revenue of $352 million to $360 million and earnings per share of $0.62 to $0.70.
  • Long-term debt under the credit facility was $107,900 thousand at September 30, 2026, compared with $66,400 thousand at December 31, 2025.

Kforce Inc. (NYSE: KFRC) shares were trading at USD 58.16 on October 27, 2026, down 0.45%, with a relative volume at time of 3.52. The staffing firm approved a fourth quarter cash dividend of $0.40 per share, paid $6.7 million in quarterly dividends during the third quarter, and on October 26 reported third quarter 2026 results and fourth quarter guidance.

Kforce is incorporated in Florida and is headquartered in Tampa, Florida. The company describes itself as a solutions firm specializing in technology, finance and accounting, and other professional staffing services. It reports Technology and Finance and Accounting business lines and places professionals on a temporary and direct-hire basis. Kforce says its history spans 64 years and that approximately 17,000 experts work each year with Fortune 500 and other companies. Its most recent annual report covers the fiscal year ended December 31, 2025.

Third Quarter 2026 Results

Revenue for the quarter ended September 30, 2026 was $357.8 million, up 2.4% sequentially and 7.5% year over year. Technology Flex revenue increased 2.5% sequentially and 7.8% year over year. Finance and Accounting Flex revenue increased 5.5% sequentially and 4.6% year over year. Direct Hire revenue was $6,700 thousand, compared with $7,502 thousand in the second quarter of 2026. Technology total revenue was $331,246 thousand and Finance and Accounting total revenue was $26,509 thousand. Placements were 309, and the average fee was $21,709, compared with $24,278 in the second quarter.

Gross profit margin was 28.2%, a decrease of 30 basis points sequentially and an increase of 50 basis points year over year. Flex gross profit margin was 26.8%. Selling, general and administrative expenses were 21.6% of revenue, and operating margin was 6.3%. The company said the gain on company-owned life insurance policies benefited both measures by 60 basis points.

Net income was $15,445 thousand, compared with $12,323 thousand in the second quarter and $11,068 thousand in the third quarter of 2025. Diluted earnings per share were $0.90, up 23.3% sequentially and 42.9% year over year. The company said the year-over-year increase would have been 23.8% excluding the gain. Adjusted EBITDA, a non-GAAP measure, was $27,477 thousand.

Balance Sheet and Capital Returns

Cash and cash equivalents were $250 thousand at September 30, 2026, compared with $2,142 thousand at December 31, 2025. Long-term debt under the credit facility was $107,900 thousand, compared with $66,400 thousand. Trade receivables, net of allowances, were $229,654 thousand, compared with $190,461 thousand. Total stockholders' equity was $136,107 thousand.

Kforce returned $6.7 million to shareholders through quarterly dividends in the third quarter. The Board approved a fourth quarter cash dividend of $0.40 per share, payable on December 18, 2026 to shareholders as of the close of business on December 4, 2026. On the call, management said share repurchases totaled $15 million for 2026, with no repurchases in the third quarter.

Fourth Quarter 2026 Guidance

The fourth quarter of 2026 has 62 billing days, compared with 64 in the third quarter. Kforce's current estimates are revenue of $352 million to $360 million and earnings per share of $0.62 to $0.70. It expects gross profit margins of 27.8% to 28.0%, Flex gross profit margins of 26.4% to 26.6%, and SG&A expenses of 22.8% to 23.0% of revenue. Operating margin is expected at 4.5% to 4.9%, weighted average shares outstanding at 17.4 million and the effective tax rate at 28.7%.

Management said many companies remain hesitant to add full-time staff and that clients remain measured in their technology spending. These statements are forward-looking and subject to the risk factors in the company's filings.