Financial Performance - Revenue for Q1 2025 was $330,028, a decrease of 6.2% compared to $351,889 in Q1 2024[16] - Gross profit for Q1 2025 was $88,260, down from $95,250 in Q1 2024, reflecting a decline of 7.3%[16] - Net income for Q1 2025 was $8,145, a decrease of 25.9% from $10,987 in Q1 2024[16] - Earnings per share (EPS) for Q1 2025 was $0.45, compared to $0.59 in Q1 2024, representing a decline of 23.7%[16] - Revenue for the three months ended March 31, 2025 decreased 6.2% to $330.0 million from $351.9 million in the comparable period in 2024[46] - Flex revenue for the three months ended March 31, 2025 decreased 6.4% to $322.6 million from $344.7 million in the comparable period in 2024[46] - Direct Hire revenue for the three months ended March 31, 2025 increased 4.1% to $7.5 million from $7.2 million in the comparable period in 2024[46] - Net income for the three months ended March 31, 2025 decreased 25.9% to $8.1 million, or $0.45 per share, from $11.0 million, or $0.58 per share, for the three months ended March 31, 2024[46] - Gross profit margin for the three months ended March 31, 2025 decreased 40 basis points to 26.7% from 27.1% in the comparable period in 2024[46] - Flex gross profit margin for the three months ended March 31, 2025 decreased 60 basis points to 25.0% from 25.6% in the comparable period in 2024[46] - Adjusted EBITDA for Q1 2025 was $16.8 million, down from $20.6 million in Q1 2024, reflecting a decrease of 18.5%[71] Cash Flow and Capital Management - Cash provided by operating activities was $249 in Q1 2025, a decrease from $13,169 in Q1 2024, indicating a decline of 98.1%[20] - Cash provided by operating activities was $0.2 million during the three months ended March 31, 2025, compared to $13.2 million for the three months ended March 31, 2024[46] - Free cash flow for Q1 2025 was $(3.9) million, a significant decline from $11.3 million in Q1 2024[69] - Capital expenditures in Q1 2025 were $4.1 million, an increase from $1.9 million in Q1 2024[75] - The company repurchased common stock worth $21,066 during Q1 2025, compared to $2,848 in Q1 2024, showing a significant increase in buyback activity[20] - Kforce repurchased approximately 418 thousand shares of common stock for about $21.2 million during Q1 2025[79] - The company declared and paid quarterly dividends of $7.1 million in Q1 2025, representing a 3% increase per share compared to Q1 2024[76] - The Firm returned $28.3 million of capital to shareholders in the form of open market repurchases totaling $21.2 million and quarterly dividends totaling $7.1 million during the three months ended March 31, 2025[46] Debt and Assets - Total assets increased to $368,195 as of March 31, 2025, up from $357,834 at the end of 2024, reflecting a growth of 2.0%[18] - Long-term debt increased significantly to $65,500 in Q1 2025 from $32,700 at the end of 2024, indicating a rise of 100.0%[18] - As of March 31, 2025, Kforce had $65.5 million outstanding under its credit facility, with $133.4 million available for borrowing[72] - Working capital increased to $118.5 million as of March 31, 2025, up from $112.9 million at the end of 2024[72] Market and Economic Conditions - The national U.S. unemployment rate increased to 4.2% in March 2025, up from 4.1% in December 2024, indicating a slight rise in economic uncertainty[49] - The technology temporary staffing industry is projected to grow by 2% in 2025, down from an earlier forecast of 5%[49] - Kforce expects Technology Flex revenue to improve slightly on a billing day basis in Q2 2025, while FA Flex revenue is anticipated to decrease in the mid-single digits sequentially[52][53] Strategic Initiatives and Investments - Kforce continues to prioritize investments in strategic initiatives, including the implementation of Workday, expected to go live in early 2026[64] - Selling, general and administrative expenses (SG&A) increased to 22.8% of total revenue in Q1 2025, compared to 22.2% in Q1 2024, reflecting ongoing investments in strategic priorities[63] Legal and Compliance - The company is involved in legal proceedings but does not expect these to have a material effect on its financial statements[89] - There have been no material changes in the risk factors previously disclosed in the 2024 Annual Report[90] - Kforce maintains liability insurance covering various risks, but there is no assurance that it will cover all events or liabilities[89] - The company has made accruals for certain legal matters that are not considered material individually or in the aggregate[89] - The certifications of the CEO and CFO were provided in accordance with the Sarbanes-Oxley Act of 2002[87] - The company continues to evaluate its financial position and may be subject to additional liabilities from ongoing litigation[89] Shareholder Actions - Kforce's Board approved an increase in the stock repurchase authorization to $100 million in February 2024[91] - The company has approximately $42,275,612 remaining under its stock repurchase plan as of March 31, 2025[91] - Kforce repurchased a total of 420,122 shares of common stock during the three months ended March 31, 2025, at an average price of $50.71 per share[91] - No insider trading arrangements were adopted or terminated by the company's officers or directors during the three months ended March 31, 2025[94]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $330 million, a decline of 4.7% year-over-year on a billing day basis [12] - Earnings per share were $0.45, slightly above the low end of guidance [23] - Overall gross margins decreased by 30 basis points sequentially to 26.7% due to seasonal declines in Flex margins [23][24] - Operating margin was reported at 3.5% with an effective tax rate of 26.4% [25] Business Line Data and Key Metrics Changes - Revenues in the technology business declined 5.2% sequentially and 3.5% year-over-year per billing day [12] - Flex revenues in the FA business, which represent 6.1% of total revenues, declined 22% year-over-year [20] - Average bill rates in the technology business were stable at approximately $90, showing slight growth [16][24] Market Data and Key Metrics Changes - The retail and transportation industries outperformed sequentially in Q1, while financial services experienced downward pressure [19] - The company noted that its footprint is focused on supporting large clients, leading to mixed revenue performance within the same industry verticals [19] Company Strategy and Development Direction - The company remains focused on strategically imperative technology investments and is well-positioned to capture additional market share [6] - Significant investments are being made in the implementation of Workday as a future state enterprise cloud application, expected to go live in early 2026 [7][25] - The company is evolving its nearshore and offshore delivery capabilities, particularly through its India Development Center [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand despite macroeconomic uncertainties, noting an improvement in consultants on assignments [5][6] - The company anticipates modest sequential growth in its technology business for Q2 2025 [19] - Management emphasized the importance of maintaining focus on long-term strategic priorities while managing productivity and profitability [25] Other Important Information - The company has returned approximately $1 billion in capital to shareholders since 2007, representing about 75% of cash generated [27] - The company continues to carry a solid balance sheet with conservative debt levels [27] Q&A Session Summary Question: Client commitment to existing projects - Management indicated that clients are generally stable in their project commitments, with no significant cancellations observed [34][46] Question: Guidance for future trends - Guidance suggests stability in sequential trends for the remainder of the quarter, without anticipating a worsening environment [37][40] Question: Capacity and personnel adjustments - The company has made significant adjustments to its delivery headcount, down nearly 40%, but believes it has ample capacity to meet increased demand without adding significant resources [21][58] Question: Healthcare costs impact - Higher healthcare costs were attributed to claim severity rather than volume, with management indicating that they monitor and price these costs accordingly [73][97] Question: Candidate availability - Candidate availability has not changed materially, with stability in pay rates reflecting the ongoing demand for skilled talent [102][104] Question: Share repurchase activity - The company has been more aggressive in share repurchase activity, returning significant capital to shareholders while maintaining a strong balance sheet [106][107]

Kforce (KFRC) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.25%. A quarter ago, it was expected that this staffing company would post earnings of $0.60 per share when it actually produced earnings of $0.60, delivering no surprise.Over the last four quarters, the company has surpa ...

Exhibit 99.1 KFORCE REPORTS FIRST QUARTER 2025 REVENUE OF $330.0 MILLION AND EPS OF $0.45 TAMPA, FL, April 28, 2025 — Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the first quarter of 2025. Joseph J. Liberatore, President and Chief Executive Officer, said, "Our first quarter performance was generally consistent with our expectations. Like many others, we entered 2025 with a general sense of optimism for U.S. e ...

Financial Performance - Revenue for 2024 was $1,405,308, a decrease of 8.2% from $1,531,756 in 2023[196] - Gross profit for 2024 was $385,445, down 9.7% from $427,066 in 2023[196] - Net income for 2024 was $50,414, representing a decline of 17.4% compared to $61,075 in 2023[196] - Earnings per share (diluted) for 2024 was $2.68, down from $3.13 in 2023, a decrease of 14.4%[196] - Future revenue growth is expected to be influenced by changes in client demand and economic conditions[19] - Net income for 2024 was $50,414 thousand, a decrease of 17.5% from $61,075 thousand in 2023 and a decrease of 33.2% from $75,431 thousand in 2022[204] - Cash provided by operating activities in 2024 was $86,874 thousand, slightly down from $91,465 thousand in 2023[204] - Total stockholders' equity as of December 31, 2024, was $154,618 thousand, a decrease from $159,080 thousand in 2023[201] Assets and Liabilities - Total current assets decreased to $225,406 in 2024 from $244,459 in 2023, a decline of 7.8%[199] - Long-term debt under the credit facility was $32.7 million as of December 31, 2024, down from $41.6 million in 2023[199] - Total fixed assets, net decreased to $7,723 thousand in 2024 from $9,418 thousand in 2023, primarily due to increased depreciation[263] - Total accounts payable and other accrued liabilities decreased from $64.8 million in 2023 to $61.8 million in 2024, a reduction of approximately 4.6%[271] - Deferred compensation payable increased from $5.9 million in 2023 to $8.6 million in 2024, representing a growth of approximately 45.8%[277] - Total other long-term liabilities increased from $54.3 million in 2023 to $58.1 million in 2024, an increase of approximately 7.9%[284] Investments and Expenditures - The firm expects to continue strategic investments in technology and operational efficiency to improve margins[15] - Capital expenditures in 2024 were $7,573 thousand, compared to $7,763 thousand in 2023[204] - Capitalized software increased to $29,090 thousand in 2024, reflecting investments in technology capabilities[264] Stock and Compensation - Dividends paid in 2024 were $28,236 thousand, an increase from $27,562 thousand in 2023 and $24,027 thousand in 2022[204] - The company repurchased common stock worth $41,938 thousand in 2024, down from $75,024 thousand in 2023[204] - The company recognized stock-based compensation expense of $14,044 thousand in 2024, down from $17,747 thousand in 2023[204] - Stock-based compensation expense for 2024 was $14.0 million, down from $17.7 million in 2023, reflecting a decrease of approximately 20.9%[287] - The total intrinsic value of restricted stock vested in 2024 was $15.1 million, down from $22.5 million in 2023, a decrease of approximately 33.3%[291] Tax and Compliance - The effective tax rate for 2024 was 25.4%, down from 28.4% in 2023, influenced by a reduction in non-deductible expenses[265] - The company is adopting new guidance for income tax disclosures effective January 1, 2025, which is not expected to have a material effect on consolidated financial statements[256] Operational Insights - The company maintained effective internal control over financial reporting as of December 31, 2024[189] - The company anticipates challenges in attracting talent due to a constrained supply of consultants in a high-demand environment[19] - The allowance for credit losses decreased to $916 thousand in 2024 from $1,106 thousand in 2023, indicating improved credit quality[262] - Trade receivables, net increased by $17,638 thousand in 2024, compared to an increase of $35,301 thousand in 2023[204] - The company had a deferred income tax provision of $(1,871) thousand in 2024, compared to $1,647 thousand in 2023[204] - As of December 31, 2024 and 2023, the company reported no material contract liabilities[221] - Trade accounts receivable reserves were less than 1% of gross trade receivables at both December 31, 2024 and 2023[231] Legal and Risk Management - Kforce is involved in legal proceedings that are not expected to have a material adverse effect on its consolidated financial statements[295] - The company maintains liability insurance covering various risks, but there is no assurance that it will cover all events or that coverage limits will be sufficient[295]

Exhibit 99.1 KFORCE REPORTS FOURTH QUARTER 2024 REVENUE OF $343.8 MILLION FULL YEAR 2024 EPS OF $2.68 PER SHARE Mr. Liberatore continued, "We believe that we enter 2025 well positioned to take additional market share as we have been doing successfully for years and to continue laying the foundation to generate significant long-term returns for our shareholders. Our organic growth strategy has resulted in us carrying a strong balance sheet and generating healthy predictable cash flows. This has again put us ...

I believe that Kforce (NYSE: KFRC ) is a strong buy, and I expect its share price to exceed $85 in the coming 12 months (~40% return). The stock price has fallen from its 2021 highs (above $80) to the current $60 level due toRabih is an investment banker with 5 years of experience. He has been investing for more than 5 years, in US and European equities. Rabih is a value investor that looks for undervalued opportunities across various sectors. His main approach is to identify temporary market mispricing in ...

TAMPA, Fla., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Kforce Inc. (NYSE: KFRC), a provider of professional staffing services and solutions, today announced that management will participate in the UBS Global Technology and AI Conference in Phoenix, Arizona on December 3, 2024. Kforce will present from 10:55 to 11:25am MST. The investor presentation and live webcast can be accessed at http://investor.kforce.com/ under “Events and Presentations”. About Kforce Inc. Kforce is a solutions firm specializing in technology ...

Table of Contents _________________________________________________________________ 1. 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 September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d ...

Kforce Inc. (NYSE:KFRC) Q3 2024 Earnings Call October 28, 2024 5:00 PM ET Company Participants Joe Liberatore - President and Chief Executive Officer Dave Kelly - Chief Operating Officer Jeff Hackman - Chief Financial Officer Conference Call Participants Mark Marcon - Baird Trevor Romeo - William Blair Jasper Bibb - Truist Securities Kartik Mehta - Northcoast Research Josh Chan - UBS Marc Riddick - Sidoti Operator Well, good day everyone and welcome to the Kforce Q3 2024 Earnings Conference Call. At this ti ...