Kforce Inc. has recently released its 10-K report, providing a detailed insight into its financial performance for the fiscal year ended December 31, 2024. The company operates through two segments, Technology, and Finance and Accounting (FA), offering professional staffing services primarily in the areas of information technology, finance, and accounting. The Technology segment serves clients in various industries, including financial and business services, communications, insurance, retail, and technology, while the FA segment caters to clients in financial and business services, healthcare, and manufacturing sectors.
In its "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, Kforce reported that its performance was adversely affected by ongoing macroeconomic uncertainty, leading to cautious client investment in digital transformation efforts. The company managed to maintain stability in its Technology business throughout 2024, with sequential billing day growth in the second and fourth quarters, albeit with a slight decline in the third quarter. To mitigate the impact of revenue declines, Kforce managed down its overall headcount levels and tightly controlled spending.
The report also presented key financial metrics for the years ended December 31, 2024, 2023, and 2022. It revealed that Technology segment revenue accounted for 92.0% of total revenue in 2024, up from 90.4% in 2023, while FA segment revenue decreased to 8.0% from 9.6% over the same period. The company's gross profit as a percentage of revenue decreased to 27.4% in 2024 from 27.9% in 2023, primarily due to a decline in the mix of Direct Hire revenue. Additionally, Kforce's Free Cash Flow for 2024 was reported at $79.3 million, compared to $83.7 million in 2023.
Furthermore, the report provided detailed insights into the performance of Flex and Direct Hire revenue for both the Technology and FA segments, along with the key drivers impacting Flex revenue and gross profit margins.
Kforce's "Management’s Discussion and Analysis of Financial Condition and Results of Operations" also highlighted the company's expectations for the first quarter of 2025, including a projected decline in Technology Flex revenue on a billing day basis and a sequential decline in FA Flex revenue. The report also discussed the company's strategic initiatives, such as the implementation of Workday as part of its back-office transformation program and the evolution of its nearshore and offshore delivery capabilities.
Today the company's shares have moved -1.3% to a price of $48.52. If you want to know more, read the company's complete 10-K report here.
