Kforce Q3 2026 earnings per share rise 42.9% to $0.90
Kforce's current fourth-quarter estimates put revenue at $352 million to $360 million and earnings per share at $0.62 to $0.70.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Kforce Inc. reported Q3 2026 revenue of $357.8 million, up 7.5% year over year and above the high end of guidance. Technology Flex revenue rose 7.8% year over year, while Finance and Accounting Flex revenue increased 4.6%.
Net income was $15.445 million, and diluted earnings per share were $0.90, up 42.9% year over year. EPS included a $0.12 gain on company-owned life insurance policies; the year-over-year EPS increase excluding that gain was 23.8%. Gross profit margin was 28.2%, up 50 basis points year over year, and operating margin was 6.3%, up 180 basis points. Adjusted EBITDA was $27.477 million.
For Q4 2026, current estimates are revenue of $352 million to $360 million and EPS of $0.62 to $0.70, with 62 billing days. The board approved a $0.40-per-share Q4 cash dividend for shareholders of record December 4, payable December 18. For the nine months ended September 30, 2026, operating cash flow was $2.801 million and free cash flow was negative $8.029 million, compared with $41.937 million and $30.139 million, respectively, in 2025.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 7.5% year over year to $357.8 million, exceeding the high end of guidance.
- Moderate pointDiluted EPS increased 42.9% to $0.90, including a $0.12 gain on company-owned life insurance policies.
Negative
- Moderate pointNine-month free cash flow was negative $8.029 million, versus $30.139 million in 2025; operating cash flow was $2.801 million versus $41.937 million.
Filing Explained
This Form 8-K furnishes Kforce’s completed third-quarter results.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $357.8 million
Diluted earnings per share: $0.90
Net income: $15.445 million
+5 more
8 metrics
Revenue
$357.8 million
Q3 2026; increased 7.5% year over year
Diluted earnings per share
$0.90
Q3 2026; increased 42.9% year over year and included a $0.12 company-owned life insurance gain
Net income
$15.445 million
Three months ended September 30, 2026
Gross profit margin
28.2%
Q3 2026; increased 50 basis points year over year
Adjusted EBITDA
$27.477 million
Three months ended September 30, 2026
Cash provided by operating activities
$2.801 million
Nine months ended September 30, 2026; compared with $41.937 million in 2025
Free cash flow
Negative $8.029 million
Nine months ended September 30, 2026; compared with $30.139 million in 2025
Cash dividend
$0.40 per share
Fourth-quarter 2026 dividend; payable December 18 to shareholders of record December 4
Key Terms
Adjusted EBITDA, Free Cash Flow, billing days, COLI Gain, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA, a non-GAAP financial measure"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Free Cash Flow, a non-GAAP financial measure"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
billing days financial
"number of billing days for the respective period"
Billing days are the number of days within a billing cycle for which a business issues charges to a customer or payer — for example the days a service was provided, a product was used, or a stay was billed. Investors watch billing days because they directly affect revenue timing and cash flow and serve as a simple indicator of demand or utilization, like counting occupied parking hours to estimate parking revenue.
COLI Gain financial
"gain on company-owned life insurance policies ("COLI Gain")"
Revenue growth rates financial
"Revenue growth rates, a non-GAAP financial measure"
Earnings Snapshot
Revenue: $357.8 million · Guidance included
Third quarter 2026
Revenue
$357.8 million
Increased 7.5% year over year
Diluted earnings per share
$0.90
Increased 42.9% year over year
Gross profit margin
28.2%
Increased 50 basis points year over year
Operating margin
6.3%
Increased 180 basis points year over year
Guidance
Current Q4 2026 estimates: revenue of $352 million to $360 million; earnings per share of $0.62 to $0.70; gross profit margins of 27.8% to 28.0%; Flex gross profit margins of 26.4% to 26.6%; SG&A expenses as a percent of revenue of 22.8% to 23.0%; operating margin of 4.5% to 4.9%; WASO of 17.4 million; effective tax rate of 28.7%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was KFRC's revenue in Q3 2026?
Kforce reported $357.8 million in revenue for Q3 2026, up 7.5% year over year and 2.4% sequentially. Technology Flex revenue increased 7.8% year over year.
How many billing days does Kforce estimate for Q4 2026?
Kforce's current Q4 2026 estimate uses 62 billing days. The company reported 64 billing days in Q3 2026 and 62 billing days in Q4 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM 8-K
___________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 26, 2026
_________________________________________________________________
Exact name of registrant as specified in its charter
_______________________________________________________________
| State or other jurisdiction of incorporation | Commission File Number | IRS Employer Identification No. | ||||||||||||
Address of principal executive offices Zip Code
Registrant’s telephone number, including area code: (813 ) 552-5000
N/A | ||
| (Former name, former address and former fiscal year, if changed since last report) | ||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 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. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 26, 2026, Kforce Inc. (the "Firm") issued a press release regarding its earnings for the third quarter ended September 30, 2026. A copy of this press release is furnished as Exhibit 99.1 to this Report and is incorporated into this Report by reference.
The information furnished herewith pursuant to Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Form 8-K and in the accompanying exhibit shall not be incorporated by reference into any registration statement or other document filed with the Securities and Exchange Commission by Kforce Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished herewith:
Exhibit Number | Description | |||||||
99.1 | Press Release of Kforce Inc. dated October 26, 2026. | |||||||
| 101 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted as Inline XBRL. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KFORCE INC. | |||||||||||
| Date: | October 26, 2026 | By: | /s/ JEFFREY B. HACKMAN | ||||||||
| Jeffrey B. Hackman, | |||||||||||
| Chief Financial Officer | |||||||||||
| (Principal Financial and Accounting Officer) | |||||||||||
Exhibit 99.1
KFORCE REPORTS THIRD QUARTER 2026 REVENUE OF $357.8 MILLION, EXCEEDING HIGH-END OF GUIDANCE, AND IMPROVING 7.5% YEAR OVER YEAR
TECHNOLOGY REVENUE GREW 7.8% YEAR OVER YEAR
GROSS PROFIT MARGINS IN THE THIRD QUARTER IMPROVED 50 BASIS POINTS YEAR OVER YEAR
EPS OF $0.90 INCLUDED A $0.12 GAIN ON COMPANY-OWNED LIFE INSURANCE POLICIES
TAMPA, FL, October 26, 2026 — Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the third quarter of 2026.
Joseph J. Liberatore, President and Chief Executive Officer, said, "We are extremely pleased to deliver a quarter of accelerating revenue and earnings growth. Revenues, which exceeded the high end of our guidance, reflect the continuing build of momentum that began in the second half of 2025, as evidenced by another quarter of sequential growth and further accentuated with a year-over-year growth rate in our Technology business of nearly 8% that is roughly equivalent to our pre-pandemic compound annual growth rate. Across Kforce’s 64-year history, we have navigated—and helped our clients navigate—several defining periods of technological change. We witnessed that each transition reshaped the labor market, yet it also created new opportunities as workers, particularly technology professionals, developed new skills and adapted to evolving demands. We believe we are operating in an environment where many companies remain hesitant to add full-time staff and that broader uncertainty has further reinforced the need for agility. We believe these dynamics highlight the value of flexible workforce solutions as clients adapt to near-term uncertainty while assessing the longer-term implications of emerging technologies on their businesses and talent strategies."
Mr. Liberatore continued, "I am incredibly proud of the determination of our people and deeply appreciative of the trust our world-class clients continue to place in Kforce as we help them advance more meaningful, higher-value engagements. We believe our go-to-market approach, shaped by our integrated operating model, is gaining traction. Across the Firm, our people are operating more fully as "One Kforce," bringing the full breadth of our capabilities to bear across our service offerings."
Quarterly Financial 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.
•Technology Flex revenue increased 2.5% sequentially and 7.8% year over year. FA Flex revenue increased 5.5% sequentially and 4.6% year over year.
•Gross profit margins of 28.2% decreased 30 basis points sequentially and increased 50 basis points year over year. Flex gross profit margins of 26.8% decreased 10 basis points sequentially and increased 50 basis points year over year.
•SG&A expenses as a percentage of revenue was 21.6% for the quarter ended September 30, 2026, which decreased 110 basis points sequentially and 120 basis points year over year. The gain on company-owned life insurance policies ("COLI Gain") benefited SG&A expenses as a percentage of revenue by 60 basis points in the quarter ended September 30, 2026.
•Operating margins were 6.3% for the quarter ended September 30, 2026, which increased 90 basis points sequentially and 180 basis points year over year. The COLI Gain benefited operating margins by 60 basis points in the quarter ended September 30, 2026.
•Diluted earnings per share for the quarter ended September 30, 2026 was $0.90, an increase of 23.3% sequentially and 42.9% year over year. The COLI Gain benefited earnings per share by $0.12 in the quarter ended September 30, 2026. The year over year increase to diluted earnings per share would have been 23.8% excluding the COLI Gain.
•We returned $6.7 million in capital to our shareholders in the form of quarterly dividends during the third quarter of 2026.
•Our Board of Directors approved a fourth quarter cash dividend of $0.40 per share to shareholders of record as of the close of business on December 4, 2026, which will be payable on December 18, 2026.
Fourth Quarter 2026 - Guidance
Looking forward to the fourth quarter of 2026, there will be 62 billing days, compared to 64 billing days in the third quarter of 2026 and 62 billing days in the fourth quarter of 2025. Current estimates for the fourth quarter of 2026 are:
•Revenue of $352 million to $360 million
•Earnings per share of $0.62 to $0.70
•Gross profit margins of 27.8% to 28.0%
•Flex gross profit margins of 26.4% to 26.6%
•SG&A expenses as a percent of revenue of 22.8% to 23.0%
•Operating margin of 4.5% to 4.9%
•WASO of 17.4 million
•Effective tax rate of 28.7%
Conference Call
On Monday, October 26, 2026, Kforce will host a conference call at 5:00 p.m. E.T. to discuss these results. The dial-in number is (833) 461-5787 and the conference passcode is 497 752 574. The prepared remarks for this call and webcast are available on the Investor Relations page of the Kforce Inc. website in the News and Events section. The replay of the call can be accessed at http://investor.kforce.com.
About Kforce Inc.
Kforce Inc. (the “Firm”) is a solutions firm specializing in technology, finance and accounting, and other professional staffing services. Our KNOWLEDGEforce® empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who deliver solutions custom-tailored to each client’s needs. These scalable, flexible outcomes are shaped by deep market knowledge, thought leadership and our multi-industry expertise.
Our integrated approach is rooted in over 60 years of proven success deploying highly skilled professionals on a temporary and direct-hire basis. Each year, approximately 17,000 talented experts work with Fortune 500 and other leading companies. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing®.
Michael R. Blackman, Chief Corporate Development Officer
(813) 552-2927
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS | ||
All statements in this press release, other than those of a historical nature, are forward-looking statements including, but not limited to, statements regarding the traction of our go-to market approach, the full breadth of our capabilities and the Firm's guidance for the fourth quarter of 2026. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: general business conditions; global trade policy, federal administration actions, government shutdowns, other geopolitical events and their potential impacts on our operations and the broader economy; growth rates in temporary staffing and the general economy; competitive factors; risks due to shifts in the market demand, including those resulting from the growth of artificial intelligence (AI); changes in demand, or our ability to adapt to such changes; a constraint in the supply of consultants and candidates, or the Firm’s ability to attract and retain such individuals; the success of the Firm in attracting and retaining its management team and key operating employees; changes in business or service mix; the ability of the Firm to repurchase shares and issue dividends; the occurrence of unanticipated expenses, income, gains or losses; the effect of adverse weather conditions; changes in our effective tax rate; our ability to comply with or respond to government regulations, laws, orders, guidelines and policies that impact our business; risk of contract performance, delays, termination or the failure to obtain new assignments, contracts, or funding under contracts; ability to comply with our obligations in a remote work environment, including consultants engaging in unauthorized or fraudulent activity; continued performance, security of, and improvements to, our enterprise information systems; and impacts of actual or potential litigation, or other legal or regulatory matters or liabilities, including the risk factors and matters listed from time to time in the Firm’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Firm’s Form 10-K for the fiscal year ended December 31, 2025, as well as assumptions regarding the foregoing. The terms “should,” “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan”, "appear" and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Future events and actual results may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and the Firm undertakes no obligation to update any forward-looking statements.
Kforce Inc.
Summary of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
| Three Months Ended | |||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||
| Revenue | $ | 357,755 | $ | 349,331 | $ | 332,645 | |||||
| Direct costs | 256,920 | 249,877 | 240,388 | ||||||||
| Gross profit | 100,835 | 99,454 | 92,257 | ||||||||
| Selling, general and administrative expenses | 77,161 | 79,406 | 75,884 | ||||||||
| Depreciation and amortization | 1,159 | 1,296 | 1,371 | ||||||||
| Income from operations | 22,515 | 18,752 | 15,002 | ||||||||
| Other expense, net | 877 | 991 | 758 | ||||||||
| Income before income taxes | 21,638 | 17,761 | 14,244 | ||||||||
| Income tax expense | 6,193 | 5,438 | 3,176 | ||||||||
| Net income | $ | 15,445 | $ | 12,323 | $ | 11,068 | |||||
| Earnings per share – diluted | $ | 0.90 | $ | 0.73 | $ | 0.63 | |||||
| Weighted average shares outstanding – diluted | 17,230 | 16,978 | 17,645 | ||||||||
| Adjusted EBITDA | $ | 27,477 | $ | 23,757 | $ | 19,407 | |||||
| Billing days | 64 | 64 | 64 | ||||||||
Kforce Inc.
Consolidated Balance Sheets
(In Thousands)
(Unaudited)
| September 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 250 | $ | 2,142 | ||||
| Trade receivables, net of allowances | 229,654 | 190,461 | ||||||
| Prepaid expenses and other current assets | 19,166 | 9,669 | ||||||
| Total current assets | 249,070 | 202,272 | ||||||
| Fixed assets, net | 4,602 | 6,023 | ||||||
| Other assets, net | 146,535 | 129,267 | ||||||
| Deferred tax assets, net | 5,007 | 3,036 | ||||||
| Goodwill | 25,040 | 25,040 | ||||||
| Total assets | $ | 430,254 | $ | 365,638 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued liabilities | $ | 60,877 | $ | 67,609 | ||||
| Accrued payroll costs | 58,305 | 42,328 | ||||||
| Current portion of operating lease liabilities | 3,335 | 3,342 | ||||||
| Income taxes payable | 4,977 | 451 | ||||||
| Total current liabilities | 127,494 | 113,730 | ||||||
| Long-term debt – credit facility | 107,900 | 66,400 | ||||||
| Other long-term liabilities | 58,753 | 60,905 | ||||||
| Total liabilities | 294,147 | 241,035 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 743 | 742 | ||||||
| Additional paid-in capital | 570,794 | 558,297 | ||||||
| Retained earnings | 566,260 | 552,180 | ||||||
| Treasury stock, at cost | (1,001,690) | (986,616) | ||||||
| Total stockholders’ equity | 136,107 | 124,603 | ||||||
| Total liabilities and stockholders’ equity | $ | 430,254 | $ | 365,638 | ||||
Kforce Inc.
Key Statistics
(Unaudited)
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Total Firm | |||||||||||
| Total Revenue (000’s) | $ | 357,755 | $ | 349,331 | $ | 332,645 | |||||
| GP % | 28.2% | 28.5% | 27.7% | ||||||||
| Flex revenue (000’s) | $ | 351,055 | $ | 341,829 | $ | 326,263 | |||||
| Hours (000's) | 4,018 | 3,926 | 3,795 | ||||||||
| Flex GP % | 26.8% | 26.9% | 26.3% | ||||||||
| Direct Hire revenue (000’s) | $ | 6,700 | $ | 7,502 | $ | 6,382 | |||||
| Placements | 309 | 309 | 276 | ||||||||
| Average fee | $ | 21,709 | $ | 24,278 | $ | 23,143 | |||||
| Billing days | 64 | 64 | 64 | ||||||||
| Technology | |||||||||||
| Total Revenue (000’s) | $ | 331,246 | $ | 323,876 | $ | 307,145 | |||||
| GP % | 27.4% | 27.6% | 26.8% | ||||||||
| Flex revenue (000’s) | $ | 328,059 | $ | 320,035 | $ | 304,272 | |||||
| Hours (000’s) | 3,595 | 3,520 | 3,383 | ||||||||
| Flex GP % | 26.7% | 26.8% | 26.1% | ||||||||
| Direct Hire revenue (000’s) | $ | 3,187 | $ | 3,841 | $ | 2,873 | |||||
| Placements | 154 | 148 | 117 | ||||||||
| Average fee | $ | 20,686 | $ | 26,038 | $ | 24,633 | |||||
| Finance and Accounting | |||||||||||
| Total Revenue (000’s) | $ | 26,509 | $ | 25,455 | $ | 25,500 | |||||
| GP % | 38.3% | 39.3% | 38.9% | ||||||||
| Flex revenue (000’s) | $ | 22,996 | $ | 21,794 | $ | 21,991 | |||||
| Hours (000’s) | 423 | 406 | 412 | ||||||||
| Flex GP % | 28.9% | 29.1% | 29.1% | ||||||||
| Direct Hire revenue (000’s) | $ | 3,513 | $ | 3,661 | $ | 3,509 | |||||
| Placements | 155 | 161 | 159 | ||||||||
| Average fee | $ | 22,729 | $ | 22,671 | $ | 22,050 | |||||
Kforce Inc.
Non-GAAP Financial Measures
(Unaudited)
In addition to our financial results presented in accordance with GAAP, Kforce may use certain non-GAAP financial measures, which we believe provide useful information to investors in evaluating our core operating performance. The following non-GAAP financial measures presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. Our non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. We view these non-GAAP financial measures as supplemental, which are not intended to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.
Revenue Growth Rates
“Revenue growth rates,” a non-GAAP financial measure, is defined by Kforce as revenue growth after removing the impacts on reported revenues from the changes in the number of billing days. Management believes this data is particularly useful because it aids in evaluating revenue trends over time. The impact of billing days is calculated by dividing each comparative period’s reported revenues by the number of billing days for the respective period to arrive at a per billing day amount for each quarter. Growth rates are then calculated using the per billing day amounts as a percentage change compared to the respective period. Management calculates the number of billing days for each reporting period based on the number of holidays and business days in the quarter.
| Sequential Growth Rates (GAAP) | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||
| Technology Flex | 2.5% | 5.6% | (0.2)% | (0.2)% | (1.2)% | |||||||||||||||
| FA Flex | 5.5% | 2.4% | (5.6)% | 2.4% | 6.9% | |||||||||||||||
| Total Flex revenue | 2.7% | 5.4% | (0.6)% | (0.1)% | (0.7)% | |||||||||||||||
| Sequential Growth Rates (Non-GAAP) | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||
| Billing Days | 64 | 64 | 63 | 62 | 64 | |||||||||||||||
| Technology Flex | 2.5% | 4.0% | (1.8)% | 3.0% | (1.2)% | |||||||||||||||
| FA Flex | 5.5% | 0.8% | (7.1)% | 5.7% | 6.9% | |||||||||||||||
| Total Flex revenue | 2.7% | 3.8% | (2.2)% | 3.2% | (0.7)% | |||||||||||||||
| Year-Over-Year Growth Rates (GAAP) | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||
| Technology Flex | 7.8% | 4.0% | 0.2% | (3.3)% | (5.5)% | |||||||||||||||
| FA Flex | 4.6% | 6.0% | 5.7% | (2.4)% | (7.3)% | |||||||||||||||
| Total Flex revenue | 7.6% | 4.1% | 0.5% | (3.3)% | (5.7)% | |||||||||||||||
| Year-Over-Year Growth Rates (Non-GAAP) | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||
| Billing Days | 64 | 64 | 63 | 62 | 64 | |||||||||||||||
| Technology Flex | 7.8% | 4.0% | 0.2% | (3.3)% | (5.5)% | |||||||||||||||
| FA Flex | 4.6% | 6.0% | 5.7% | (2.4)% | (7.3)% | |||||||||||||||
| Total Flex revenue | 7.6% | 4.1% | 0.5% | (3.3)% | (5.7)% | |||||||||||||||
Free Cash Flow
“Free Cash Flow,” a non-GAAP financial measure, is defined by Kforce as net cash provided by operating activities determined in accordance with GAAP, less capital expenditures. Management believes this provides an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows and is useful information to investors as it provides a measure of the amount of cash generated from the business that can be used for strategic opportunities including investing in our business, repurchasing common stock, paying dividends or making acquisitions. Free Cash Flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. Therefore, we believe it is important to view Free Cash Flow as a complement to, but not a replacement of, our unaudited condensed consolidated statements of cash flows.
The following table presents a reconciliation of Cash (Used in) Provided by Operating Activities to Free Cash Flow:
| Nine Months Ended September 30, | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Cash provided by operating activities | $ | 2,801 | $ | 41,937 | ||||
| Capital expenditures | (10,830) | (11,798) | ||||||
| Free cash flow | (8,029) | 30,139 | ||||||
| Change in debt | 41,500 | 32,300 | ||||||
| Repurchases of common stock | (15,138) | (41,450) | ||||||
| Cash dividends | (20,225) | (20,778) | ||||||
| Proceeds from company-owned life insurance | — | 1,383 | ||||||
| Premiums paid for company-owned life insurance | — | (686) | ||||||
| Other | — | (5) | ||||||
| Change in cash and cash equivalents | $ | (1,892) | $ | 903 | ||||
Adjusted EBITDA
“Adjusted EBITDA,” a non-GAAP financial measure, is defined by Kforce as net income before depreciation and amortization; stock-based compensation expense; interest expense, net and income tax expense. Adjusted EBITDA should not be considered a measure of financial performance under GAAP. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA is a key measure used by management to assess our operations including our ability to generate cash flows and our ability to repay our debt obligations, and management believes it provides a good metric of our core profitability in comparing our performance to our competitors, as well as our performance over different time periods. Consequently, management believes it is useful information to investors. The measure should not be considered in isolation or as an alternative to net income, cash flows or other financial statement information presented in the unaudited condensed consolidated financial statements as indicators of financial performance or liquidity. Also, Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
The following table presents Adjusted EBITDA and includes a reconciliation of Net income to Adjusted EBITDA:
| Three Months Ended | |||||||||||
| (in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||
| Net income | $ | 15,445 | $ | 12,323 | $ | 11,068 | |||||
| Depreciation and amortization | 1,159 | 1,296 | 1,371 | ||||||||
| Stock-based compensation expense | 3,811 | 3,718 | 3,034 | ||||||||
| Interest expense, net | 869 | 982 | 758 | ||||||||
| Income tax expense | 6,193 | 5,438 | 3,176 | ||||||||
| Adjusted EBITDA | $ | 27,477 | $ | 23,757 | $ | 19,407 | |||||