Revenue growth remains in a contractionary phase with a -5.43% YoY trend, while operating margins have compressed to 3.6% due to sticky SG&A expenses.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.33B | 1.33B | 1.41B | 1.53B | 1.71B | 1.58B | 1.4B | 1.35B | 1.42B | 1.36B | 1.32B | 1.32B | 1.22B | 1.15B | 1.08B | 1.11B | 990.81M | 910.14M | 997.02M | 1.04B | 938.45M | 802.26M | 661.45M | 495.58M | 513.55M | 646.02M | 795M | 746.6M | 680.1M | 181.4M | 94.2M |
| Revenue Growth % | -3.91% | -5.43% | -8.26% | -10.46% | 8.28% | 13.04% | 3.73% | -5% | 4.45% | 2.9% | 0.04% | 8.37% | 5.68% | 6.41% | -2.56% | 12.12% | 8.86% | -8.71% | -3.85% | 10.49% | 16.97% | 21.29% | 33.47% | -3.5% | -20.51% | -18.74% | 6.48% | 9.78% | 274.92% | 92.57% | 106.13% |
| Cost of Goods Sold | 967.49M | 973.18M | 1.02B | 1.1B | 1.21B | 1.12B | 1B | 952.35M | 999.75M | 949.88M | 911.21M | 905.12M | 842.75M | 782.27M | 734.55M | 764.62M | 678.39M | 624.16M | 652.37M | 664.57M | 612.35M | 542.28M | 457.57M | 341.62M | 345.58M | 393.62M | 433.44M | 424M | 388.5M | 110.6M | 53.8M |
| COGS % of Revenue | - | 73.23% | 72.57% | 72.12% | 70.71% | 71.08% | 71.65% | 70.68% | 70.49% | 69.95% | 69.05% | 68.61% | 69.23% | 67.91% | 67.86% | 68.83% | 68.47% | 68.58% | 65.43% | 64.09% | 65.25% | 67.59% | 69.18% | 68.93% | 67.29% | 60.93% | 54.52% | 56.79% | 57.12% | 60.97% | 57.11% |
| Gross Profit | 361.86M | 355.82M | 385.44M | 427.07M | 501.11M | 456.86M | 396.22M | 395.04M | 418.61M | 408.06M | 408.5M | 414.11M | 374.58M | 369.61M | 347.93M | 346.3M | 312.41M | 285.98M | 344.65M | 372.34M | 326.1M | 259.99M | 203.88M | 153.97M | 167.96M | 252.4M | 361.56M | 322.6M | 291.6M | 70.8M | 40.4M |
| Gross Margin % | 27.22% | 26.77% | 27.43% | 27.88% | 29.29% | 28.92% | 28.35% | 29.32% | 29.51% | 30.05% | 30.95% | 31.39% | 30.77% | 32.09% | 32.14% | 31.17% | 31.53% | 31.42% | 34.57% | 35.91% | 34.75% | 32.41% | 30.82% | 31.07% | 32.71% | 39.07% | 45.48% | 43.21% | 42.88% | 39.03% | 42.89% |
| Gross Profit Growth % | - | -7.68% | -9.75% | -14.78% | 9.68% | 15.3% | 0.3% | -5.63% | 2.59% | -0.11% | -1.36% | 10.55% | 1.34% | 6.23% | 0.47% | 10.85% | 9.24% | -17.02% | -7.44% | 14.18% | 25.43% | 27.52% | 32.42% | -8.33% | -33.45% | -30.19% | 12.08% | 10.63% | 311.86% | 75.25% | 100% |
| Operating Expenses | 311.41M | 305.75M | 315.72M | 339.94M | 384.24M | 350.22M | 315.97M | 320.22M | 336.96M | 339.43M | 349.9M | 340.25M | 325.23M | 333.78M | 333.23M | 301.68M | 277.79M | 262.94M | 429.71M | 300.86M | 268.74M | 221.01M | 190.71M | 147.29M | 177.86M | 262.12M | 360.25M | 361M | 234.3M | 53.7M | 32.1M |
| OpEx % of Revenue | - | 23.01% | 22.47% | 22.19% | 22.46% | 22.17% | 22.61% | 23.77% | 23.76% | 25% | 26.51% | 25.79% | 26.72% | 28.98% | 30.78% | 27.16% | 28.04% | 28.89% | 43.1% | 29.01% | 28.64% | 27.55% | 28.83% | 29.72% | 34.63% | 40.57% | 45.31% | 48.35% | 34.45% | 29.6% | 34.08% |
| Selling, General & Admin | 307.34M | 305.75M | 309.8M | 334.93M | 379.81M | 345.72M | 310.71M | 314.17M | 329.13M | 331.17M | 341.2M | 330.42M | 315.34M | 323.93M | 322.44M | 288.98M | 265.18M | 251.27M | 286.48M | 286.37M | 257.19M | 212.72M | 185.49M | 142.91M | 168.23M | 244.79M | 341.81M | 346.5M | 224.8M | 50.5M | 30.3M |
| SG&A % of Revenue | - | 23.01% | 22.05% | 21.87% | 22.2% | 21.88% | 22.23% | 23.32% | 23.2% | 24.39% | 25.85% | 25.05% | 25.9% | 28.12% | 29.79% | 26.01% | 26.76% | 27.61% | 28.73% | 27.62% | 27.41% | 26.52% | 28.04% | 28.84% | 32.76% | 37.89% | 43% | 46.41% | 33.05% | 27.84% | 32.17% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 0 | 5.92M | 5.01M | 4.43M | 4.5M | 5.25M | 6.05M | -4.5M | -4.54M | -2.65M | -2.19M | -1.39M | -1.23M | -1.12M | 12.69M | 12.61M | 11.67M | 143.23M | 14.49M | 11.55M | 8.28M | 5.22M | 4.37M | 9.63M | 17.32M | 18.44M | 14.5M | 9.5M | 3.2M | 1.8M |
| Operating Income | 50.45M | 50.08M | 69.72M | 87.12M | 116.86M | 106.64M | 80.26M | 74.82M | 81.65M | 68.63M | 58.6M | 73.87M | 49.35M | 21.32M | -54.45M | 44.63M | 34.62M | 23.04M | -85.06M | 71.49M | 57.36M | 38.98M | 13.18M | 6.68M | -9.9M | -9.72M | 1.3M | -38.4M | 57.3M | 17.1M | 8.3M |
| Operating Margin % | 3.8% | 3.77% | 4.96% | 5.69% | 6.83% | 6.75% | 5.74% | 5.55% | 5.76% | 5.05% | 4.44% | 5.6% | 4.05% | 1.85% | -5.03% | 4.02% | 3.49% | 2.53% | -8.53% | 6.89% | 6.11% | 4.86% | 1.99% | 1.35% | -1.93% | -1.5% | 0.16% | -5.14% | 8.43% | 9.43% | 8.81% |
| Operating Income Growth % | - | -28.18% | -19.97% | -25.45% | 9.59% | 32.88% | 7.26% | -8.36% | 18.97% | 17.11% | -20.67% | 49.68% | 131.44% | 139.16% | -222.01% | 28.91% | 50.27% | 127.09% | -218.98% | 24.63% | 47.14% | 195.88% | 97.17% | 167.49% | -1.88% | -845.17% | 103.4% | -167.02% | 235.09% | 106.02% | 84.44% |
| EBITDA | 55.84M | 55.63M | 75.64M | 92.13M | 126.97M | 109.47M | 91.01M | 80.87M | 88.49M | 76.88M | 67.3M | 83.7M | 59.24M | 31.17M | -43.66M | 57.32M | 47.23M | 34.71M | -71.23M | 86.61M | 70.94M | 49.06M | 19.64M | 11.05M | -13K | 7.61M | 19.74M | -23.9M | 66.8M | 20.3M | 10.1M |
| EBITDA Margin % | 4.2% | 4.19% | 5.38% | 6.01% | 7.42% | 6.93% | 6.51% | 6% | 6.24% | 5.66% | 5.1% | 6.34% | 4.87% | 2.71% | -4.03% | 5.16% | 4.77% | 3.81% | -7.14% | 8.35% | 7.56% | 6.12% | 2.97% | 2.23% | -0% | 1.18% | 2.48% | -3.2% | 9.82% | 11.19% | 10.72% |
| EBITDA Growth % | -60.82% | -26.46% | -17.9% | -27.44% | 16% | 20.28% | 12.54% | -8.61% | 15.09% | 14.24% | -19.59% | 41.28% | 90.07% | 171.39% | -176.17% | 21.37% | 36.07% | 148.73% | -182.24% | 22.1% | 44.6% | 149.76% | 77.72% | 85123.08% | -100.17% | -61.47% | 182.61% | -135.78% | 229.06% | 100.99% | 102% |
| D&A (Non-Cash Add-back) | 5.39M | 5.55M | 5.92M | 5.01M | 10.11M | 2.82M | 10.75M | 6.05M | 6.84M | 8.26M | 8.7M | 9.83M | 9.89M | 9.85M | 10.79M | 12.69M | 12.61M | 11.67M | 13.82M | 15.13M | 13.58M | 10.08M | 6.47M | 4.37M | 9.89M | 17.32M | 18.44M | 14.5M | 9.5M | 3.2M | 1.8M |
| EBIT | 48.91M | 46.95M | 69.72M | 87.12M | 116.86M | 106.64M | 80.26M | 74.82M | 72.4M | 60.02M | 59.06M | 74.25M | 49.35M | 12.15M | -65.4M | 31.11M | 20.08M | 23.33M | -84.86M | 71.49M | 57.36M | 38.98M | 13.18M | 6.68M | -9.9M | -9.72M | 1.3M | -38.37M | 57.29M | 34.9M | 19.4M |
| Net Interest Income | 0 | 0 | 0 | 0 | -13.45M | 0 | 33K | -8K | 0 | 0 | 0 | -1.98M | -1.41M | -1.23M | -954K | -1.2M | -1.21M | -1.34M | -2.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 973K | 0 | 3.4M | 2.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20K | 99K | 73K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 14.42M | 0 | 3.36M | 2.59M | 0 | 0 | 0 | 1.98M | 1.41M | 1.3M | 1.01M | 1.26M | 1.27M | 1.44M | 2.33M | 0 | 0 | 0 | 0 | 0 | 2.2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -3.22M | -3.13M | -2.1M | -1.87M | -14.42M | -7.38M | -5.04M | -3.42M | -4.52M | -4.54M | -2.65M | -2.19M | -1.39M | -10.39M | -30.65M | -1.32M | -1.3M | -1.15M | -2.14M | -5.04M | -4.35M | -1.82M | -1.7M | -1.21M | -3.21M | -4.46M | -113K | 968K | -21.19M | 20.5M | 12.9M |
| Pretax Income | 47.23M | 46.95M | 67.62M | 85.25M | 102.44M | 99.27M | 75.21M | 71.4M | 77.15M | 64.09M | 55.95M | 71.67M | 47.96M | 20.1M | -55.57M | 43.31M | 33.32M | 21.89M | -87.19M | 66.45M | 53.01M | 37.17M | 11.47M | 5.47M | -13.11M | -14.18M | 1.19M | -37.4M | 36.1M | 19M | 10M |
| Pretax Margin % | 3.55% | 3.53% | 4.81% | 5.57% | 5.99% | 6.28% | 5.38% | 5.3% | 5.44% | 4.72% | 4.24% | 5.43% | 3.94% | 1.74% | -5.13% | 3.9% | 3.36% | 2.41% | -8.75% | 6.41% | 5.65% | 4.63% | 1.73% | 1.1% | -2.55% | -2.19% | 0.15% | -5.01% | 5.31% | 10.47% | 10.62% |
| Income Tax | 12.63M | 12.12M | 17.21M | 24.18M | 27.01M | 24.09M | 19.17M | 16.83M | 19.17M | 30.81M | 23.18M | 28.85M | 18.56M | 9.31M | -19.85M | 16.16M | 12.69M | 9.02M | 1.93M | 26.08M | 20.49M | 14.85M | -13.54M | 350K | 102K | -2.09M | 1.47M | -13.9M | 20.7M | 7.5M | 4M |
| Effective Tax Rate % | 26.74% | 25.82% | 25.45% | 28.36% | 26.37% | 24.27% | 25.49% | 23.57% | 24.85% | 48.07% | 41.43% | 40.25% | 38.7% | 46.33% | 35.73% | 37.3% | 38.08% | 41.2% | -2.21% | 39.25% | 38.65% | 39.94% | -117.98% | 6.4% | -0.78% | 14.74% | 123.76% | 37.17% | 57.34% | 39.47% | 40% |
| Net Income | 34.6M | 34.83M | 50.41M | 61.08M | 75.43M | 75.18M | 56.04M | 130.86M | 57.98M | 33.28M | 32.77M | 42.82M | 90.92M | 10.79M | -13.7M | 27.16M | 20.63M | 12.87M | -84.11M | 40.37M | 32.52M | 22.32M | 25.2M | 5.27M | -47.03M | -12.09M | -380K | -23.5M | 15.4M | 11.5M | 6M |
| Net Margin % | 2.6% | 2.62% | 3.59% | 3.99% | 4.41% | 4.76% | 4.01% | 9.71% | 4.09% | 2.45% | 2.48% | 3.25% | 7.47% | 0.94% | -1.27% | 2.44% | 2.08% | 1.41% | -8.44% | 3.89% | 3.47% | 2.78% | 3.81% | 1.06% | -9.16% | -1.87% | -0.05% | -3.15% | 2.26% | 6.34% | 6.37% |
| Net Income Growth % | -27.26% | -30.92% | -17.46% | -19.03% | 0.34% | 34.15% | -57.18% | 125.7% | 74.19% | 1.56% | -23.47% | -52.9% | 742.82% | 178.72% | -150.46% | 31.61% | 60.29% | 115.31% | -308.36% | 24.13% | 45.69% | -11.42% | 377.98% | 111.21% | -289.07% | -3081.05% | 98.38% | -252.6% | 33.91% | 91.67% | 100% |
| Net Income (Continuing) | 34.6M | 34.83M | 50.41M | 61.08M | 75.43M | 75.18M | 56.04M | 54.57M | 50.88M | 29.59M | 32.77M | 42.82M | 29.4M | 5.29M | -42.13M | 19.06M | 12M | 12.87M | -89.12M | 40.37M | 32.52M | 22.32M | 25.01M | 5.12M | -13.21M | -12.09M | -283K | -23.5M | 15.4M | 22.1M | 12.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.01 | 1.96 | 2.62 | 3.13 | 3.68 | 3.54 | 2.62 | 2.30 | 2.23 | 1.26 | 1.22 | 1.52 | 2.87 | 0.32 | -0.38 | 0.70 | 0.49 | 0.33 | -2.13 | 0.95 | 0.77 | 0.55 | 0.69 | 0.16 | -1.49 | -0.37 | -0.01 | -0.53 | 0.33 | 0.52 | 0.34 |
| EPS Growth % | -22% | -25.19% | -16.29% | -14.95% | 3.95% | 35.11% | 13.91% | 3.14% | 76.98% | 3.28% | -19.74% | -47.04% | 796.88% | 184.21% | -154.29% | 42.86% | 48.48% | 115.49% | -324.21% | 23.38% | 40% | -20.29% | 331.25% | 110.74% | -302.7% | - | 98.32% | -260.61% | -36.54% | 52.94% | 88.89% |
| EPS (Basic) | - | 1.96 | 2.62 | 3.13 | 3.76 | 3.65 | 2.67 | 2.35 | 2.34 | 1.26 | 1.22 | 1.53 | 2.89 | 0.32 | -0.38 | 0.72 | 0.49 | 0.33 | -2.13 | 0.98 | 0.81 | 0.58 | 0.73 | 0.17 | -1.49 | -0.38 | -0.01 | -0.53 | 0.33 | 0.55 | 0.35 |
| Diluted Shares Outstanding | 17.2M | 17.78M | 19.22M | 19.52M | 20.5M | 21.21M | 21.39M | 23.77M | 26.03M | 26.33M | 26.8M | 28.19M | 31.69M | 33.64M | 36.02M | 38.83M | 41.72M | 39.33M | 39.47M | 42.29M | 42.01M | 40.62M | 36.09M | 31.23M | 31.58M | 32.52M | 42.89M | 44.34M | 48.89M | 25M | 21.58M |
| Basic Shares Outstanding | 17.23M | 17.78M | 19.22M | 19.52M | 20.05M | 20.58M | 20.98M | 23.19M | 24.74M | 25.22M | 26.1M | 27.91M | 31.48M | 33.51M | 35.79M | 37.92M | 41.72M | 38.33M | 39.47M | 41.31M | 40.19M | 38.53M | 34.13M | 30.51M | 31.58M | 31.71M | 42.89M | 44.34M | 45.41M | 24.19M | 20.5M |
| Dividend Payout Ratio | - | 78.95% | 56.01% | 45.13% | 31.85% | 26.76% | 29.96% | 12.69% | 25.65% | 36.48% | 37.98% | 29.29% | 14.05% | 30.56% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical IT Spending Sensitivity
As indicated by the most recent quarterly data, KFRC has experienced a sustained period of negative top-line performance, with revenue growth hovering near -5.43% YoY, suggesting that the firm's reliance on domestic IT project-based assignments remains highly vulnerable to broader corporate capital expenditure budget tightening cycles.
The consistent negative growth trajectory suggests that the company's specialized IT staffing model is currently struggling to find volume offsets in a cautious hiring environment. Investors should monitor whether this trend reflects a structural shift in client demand for high-end project talent or merely a temporary cyclical trough in digital transformation initiatives.
According to the provided financial statements, KFRC maintains a gross margin profile of approximately 26.77%, which appears to be structurally constrained by the bill-pay spread inherent in its high-end IT staffing model, leaving little room for pricing power expansion during periods of talent wage inflation.
The stability of these margins suggests that management has limited ability to pass through cost increases to enterprise clients without risking volume loss. This narrow margin profile implies that any further compression in the spread between consultant pay and client bill rates could disproportionately impact the company's bottom-line profitability.
Based on reported figures, KFRC's operating margins have compressed to 3.77%, indicating that the company is struggling to achieve meaningful operating leverage as SG&A expenses remain sticky despite the ongoing revenue contraction, which warrants further investigation into the firm's ability to scale its overhead costs efficiently.
The inability to expand operating margins during revenue fluctuations suggests that the current cost structure is largely fixed, limiting the company's agility in responding to market downturns. This lack of operating leverage may indicate that the firm's administrative and recruitment infrastructure requires significant investment, which could continue to weigh on profitability in the near term.
Financial filings reveal that KFRC's cash and equivalents have dwindled to approximately $2.1M, a precarious position that may limit the company's strategic flexibility and ability to navigate a prolonged downturn without relying on external financing or further reducing its shareholder capital return programs.
Short-sellers might focus on this extremely lean liquidity position as a primary risk factor, particularly if the current revenue contraction persists. The combination of thin operating margins and minimal cash reserves suggests that the company has very little margin for error, potentially forcing management to prioritize liquidity preservation over growth-oriented investments.
Quick answers to the most common questions about buying KFRC stock.
For fiscal year 2025, Kforce Inc. (KFRC) reported total revenue of $1.33B. This represents a 1310.8% increase compared to $94.2M in 1996.
Kforce Inc. (KFRC) is profitable, generating $34.8M in net income for the fiscal year ending 2025 with a net profit margin of 2.6%.
Kforce Inc. (KFRC) reported an operating income of $50.1M, resulting in an operating profit margin of 3.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Kforce Inc. (KFRC) generated $355.8M in gross profit for the year, representing a gross profit margin of 26.8%. This demonstrates the company's core pricing power and production efficiency.