Loading...
•
Sep 30, 2025
Kforce Q3 2025 Earnings Report
Kforce reported its third quarter 2025 earnings, exceeding top and bottom line expectations.
Key Takeaways
Kforce delivered a strong third quarter in 2025, surpassing revenue and EPS expectations, driven by better-than-expected performance in both its Technology and Finance & Accounting segments. The company saw an improvement in Technology segment consultants on assignment and meaningful sequential growth in its FA business, with this momentum largely continuing into the fourth quarter.
Revenue for Q3 2025 was $332.6 million, a slight sequential decrease of 0.5% but a year-over-year decrease of 5.9%.
Diluted earnings per share for Q3 2025 were $0.63, representing a 6.8% sequential increase but a 16.0% year-over-year decrease.
Gross profit margin improved sequentially by 60 basis points to 27.7%, while Flex gross profit margin increased by 50 basis points sequentially to 26.3%.
The Board of Directors approved an increase in the stock repurchase authorization to $100.0 million and declared a fourth-quarter cash dividend of $0.39 per share.
Revenue by Segment
Forward Guidance
Kforce provided guidance for the fourth quarter of 2025, anticipating revenue between $326 million and $334 million and diluted earnings per share between $0.43 and $0.51.
Positive Outlook
- Expected sequential billing day growth in both Technology and FA businesses.
- Gross profit margins are projected to remain strong, between 27.1% and 27.3%.
- Flex gross profit margins are expected to be between 25.7% and 25.9%.
- Operating margin is anticipated to be between 3.7% and 4.1%.
- The company expects to maintain a stable effective tax rate of 32.4%.
Challenges Ahead
- Revenue guidance of $326 million to $334 million suggests a potential sequential decrease from Q3 2025's $332.6 million.
- Earnings per share guidance of $0.43 to $0.51 indicates a significant sequential decrease from Q3 2025's $0.63.
- The fourth quarter will have fewer billing days (62) compared to the third quarter (64), which could impact revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...