kfrc-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________________________________________________________________________________

FORM 10-Q

________________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-42104

_________________________________________________________________

Kforce Inc.

Exact name of registrant as specified in its charter

_______________________________________________________________


Florida						59-3264661
State or other jurisdiction of incorporation or organization						IRS Employer Identification No.


1150 Assembly Drive, Suite 500, Tampa, Florida						33607
Address of principal executive offices						Zip Code

Registrant’s telephone number, including area code: (813) 552-5000

_______________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	KFRC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.): Yes ☐ No ☒

The number of shares outstanding (in thousands) of the registrant’s common stock at April 22, 2026 was 17,832.



PART I	Item 1.	Financial Statements.	3
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	12
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	20
	Item 4.	Controls and Procedures.	20

PART II	Item 1.	Legal Proceedings.	21
	Item 1A.	Risk Factors.	21
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	21
	Item 3.	Defaults Upon Senior Securities.	21
	Item 4.	Mine Safety Disclosures.	21
	Item 5.	Other Information.	21
	Item 6.	Exhibits.	22
	SIGNATURES		23


	Three Months Ended March 31,
	2026		2025
Revenue	$	330,364	$	330,028
Direct costs	240,296		241,768
Gross profit	90,068		88,260
Selling, general and administrative expenses	76,758		75,165
Depreciation and amortization	1,304		1,464
Income from operations	12,006		11,631
Other expense, net	652		565
Income before income taxes	11,354		11,066
Income tax expense	3,429		2,921
Net income	$	7,925	$	8,145

Earnings per share – basic	$	0.46	$	0.45
Earnings per share – diluted	$	0.46	$	0.45

Weighted average shares outstanding – basic	17,132		18,161
Weighted average shares outstanding – diluted	17,197		18,241


	March 31, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	1,338	$	2,142
Trade receivables, net of allowances of $1,158 and $1,248, respectively	207,275		190,461
Prepaid expenses and other current assets	8,792		9,669
Total current assets	217,405		202,272
Fixed assets, net	5,530		6,023
Other assets, net	134,171		129,267
Deferred tax assets, net	2,624		3,036
Goodwill	25,040		25,040
Total assets	$	384,770	$	365,638
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	69,215	$	67,609
Accrued payroll costs	46,948		42,328
Current portion of operating lease liabilities	3,414		3,342
Income taxes payable	1,988		451
Total current liabilities	121,565		113,730
Long-term debt – credit facility	91,500		66,400
Other long-term liabilities	54,350		60,905
Total liabilities	267,415		241,035
Commitments and contingencies (Note J)
Stockholders’ equity:
Preferred stock, $0.01 par value; 15,000 shares authorized, none issued and outstanding	—		—
Common stock, $0.01 par value; 250,000 shares authorized, 74,253 and 74,244 issued, respectively	743		742
Additional paid-in capital	562,323		558,297
Retained earnings	552,828		552,180
Treasury stock, at cost; 56,321 and 55,891 shares, respectively	(998,539)		(986,616)
Total stockholders’ equity	117,355		124,603
Total liabilities and stockholders’ equity	$	384,770	$	365,638


	Common Stock			Additional Paid-In Capital				Treasury Stock			Total Stockholders’ Equity
	Shares	Amount				Retained Earnings		Shares	Amount
Balance, December 31, 2025	74,244	$	742	$	558,297	$	552,180	55,891	$	(986,616)	$	124,603
Net income	—	—		—		7,925		—	—		7,925
Issuance for stock-based compensation and dividends, net of forfeitures	9	1		436		(437)		—	—		—
Stock-based compensation expense	—	—		3,590		—		—	—		3,590

Dividends ($0.40 per share)	—	—		—		(6,821)		—	—		(6,821)
Repurchases of common stock	—	—		—		—		430	(11,923)		(11,923)
Other	—	—		—		(19)		—	—		(19)
Balance, March 31, 2026	74,253	$	743	$	562,323	$	552,828	56,321	$	(998,539)	$	117,355


	Three Months Ended March 31,
Supplemental Disclosure of Cash Flow Information	2026		2025
Cash Paid During the Period For:
Income taxes, net	$	170	$	4,156
Operating lease liabilities	1,046		1,206
Interest, net	1,008		657
Non-Cash Investing and Financing Transactions:
ROU assets obtained from operating leases	$	230	$	1,469
Employee stock purchase plan	—		175
Unsettled repurchases of common stock	325		500


(shares in thousands)	2026	2025
Three Months Ended March 31,
Common stock equivalents	65	80
Anti-dilutive shares	608	583


(in thousands)	Technology		FA		Total
Three Months Ended March 31,
2026
Revenue	$	305,963	$	24,401	$	330,364
Direct costs	224,953		15,343		240,296
Gross profit	$	81,010	$	9,058	$	90,068
Less:
Selling, general and administrative expenses					76,758
Depreciation and amortization					1,304
Other expense, net					652
Income before income taxes					$	11,354
2025
Revenue	$	306,284	$	23,744	$	330,028
Direct costs	227,100		14,668		241,768
Gross profit	$	79,184	$	9,076	$	88,260
Less:
Selling, general and administrative expenses					75,165
Depreciation and amortization					1,464
Other expense, net					565
Income before income taxes					$	11,066


(in thousands)
Allowance for credit losses, December 31, 2025	$	800
Current period provision	57
Write-offs charged against the allowance, net of recoveries of amounts previously written off	(57)
Allowance for credit losses, March 31, 2026	$	800


(in thousands, except per share amounts)	Number of Restricted Stock	Weighted-Average Grant Date Fair Value		Total Intrinsic Value of Restricted Stock Vested
Outstanding at December 31, 2025	1,098	$	50.40
Granted	21	$	45.77
Forfeited	(11)	$	54.59
Vested	(7)	$	25.65	$	204
Outstanding at March 31, 2026	1,101	$	50.44


	Three Months Ended
	March 31, 2026 vs. March 31, 2025
Key Drivers - Increase (Decrease)	Technology		FA
Volume - hours billed	$	2,478	$	946
Bill rate	(1,848)		198
Billable expenses	(110)		(6)
Total change in Flex revenue	$	520	$	1,138


CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS


	Sequential Growth Rates (GAAP)
	2026	2025
	Q1	Q4	Q3	Q2	Q1
Technology Flex	(0.2)%	(0.2)%	(1.2)%	1.8%	(3.7)%
FA Flex	(5.6)%	2.4%	6.9%	2.1%	(12.8)%
Total Flex revenue	(0.6)%	(0.1)%	(0.7)%	1.8%	(4.3)%
	Sequential Growth Rates (Non-GAAP)
	2026	2025
	Q1	Q4	Q3	Q2	Q1
Billing Days	63	62	64	64	63
Technology Flex	(1.8)%	3.0%	(1.2)%	0.2%	(5.2)%
FA Flex	(7.1)%	5.7%	6.9%	0.5%	(14.2)%
Total Flex revenue	(2.2)%	3.2%	(0.7)%	0.2%	(5.8)%


	Year-Over-Year Growth Rates (GAAP)
	2026	2025
	Q1	Q4	Q3	Q2	Q1
Technology Flex	0.2%	(3.3)%	(5.5)%	(5.0)%	(5.0)%
FA Flex	5.7%	(2.4)%	(7.3)%	(16.8)%	(23.2)%
Total Flex revenue	0.5%	(3.3)%	(5.7)%	(5.8)%	(6.4)%
	Year-Over-Year Growth Rates (Non-GAAP)
	2026	2025
	Q1	Q4	Q3	Q2	Q1
Billing Days	63	62	64	64	63
Technology Flex	0.2%	(3.3)%	(5.5)%	(5.0)%	(3.5)%
FA Flex	5.7%	(2.4)%	(7.3)%	(16.8)%	(22.0)%
Total Flex revenue	0.5%	(3.3)%	(5.7)%	(5.8)%	(4.9)%


Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
January 1, 2026 to January 31, 2026	—	$	—	—	$	97,199,305
February 1, 2026 to February 28, 2026	165,551	$	28.12	163,683	$	92,597,785
March 1, 2026 to March 31, 2026	264,482	$	27.04	264,482	$	85,445,414
Total	430,033	$	27.46	428,165	$	85,445,414


	Three Months Ended March 31,
	2026		Increase (Decrease)		2025
Technology	26.5	%	2.3	%	25.9	%
FA	37.1	%	(2.9)	%	38.2	%
Total gross profit percentage	27.3	%	2.2	%	26.7	%


(in thousands)	2026		% of Revenue		2025		% of Revenue
Three Months Ended March 31,
Compensation, commissions, payroll taxes and benefits costs	$	64,350	19.5	%	$	63,476	19.2	%
Other (1)	12,408		3.7	%	11,689		3.6	%
Total SG&A	$	76,758	23.2	%	$	75,165	22.8	%


Exhibit Number			Description
3.1			Amended and Restated Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 33-91738) filed with the SEC on April 28, 1995.
3.1a			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended.
3.1b			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended.
3.1c			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Registration Statement on Form S-4/A (File No. 333-111566) filed with the SEC on February 9, 2004, as amended.
3.1d			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on May 17, 2000.
3.1e			Articles of Amendment to Articles of Incorporation, incorporated by reference to the Registrant’s Annual Report on Form 10-K (File No. 000-26058) filed with the SEC on March 29, 2002.
3.2			Amended & Restated Bylaws, incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-26058) filed with the SEC on April 29, 2013.
10.1*			Kforce Inc. 2026 Stock Incentive Plan, incorporated by reference to the Registrant’s Registration Statement on Form S-8 (File No. 333-295318) filed with the SEC on April 24, 2026.
10.2*²			Restricted Stock Agreements under the 2026 Stock Incentive Plan.
31.1²			Certification by the Chief Executive Officer of Kforce Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2²			Certification by the Chief Financial Officer of Kforce Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certification by the Chief Executive Officer of Kforce Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as furnished herewith.
32.2			Certification by the Chief Financial Officer of Kforce Inc. pursuant to 18 U.S.C. Section 2350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as furnished herewith.
101.1			The following material from this Quarterly Report on Form 10-Q of Kforce Inc. for the period ended March 31, 2026, formatted in XBRL Part I, Item 1 of this Form 10-Q formatted in XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Statements of Operations; (ii) Unaudited Condensed Consolidated Balance Sheets; (iii) Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity; (iv) Unaudited Condensed Consolidated Statements of Cash Flows; and (v) related notes to these financial statements.
104			Cover Page Interactive Data File - formatted in Inline XBRL and contained in Exhibit 101.


²			Filed herewith.
*			Management contract or compensatory plan or arrangement.

SEC Form 10-Q filed by Kforce Inc.