Kforce Inc. (NYSE: KFRC) has reported its financial results for the fourth quarter and full year of 2025. The company's revenue for the fourth quarter of 2025 was $332.0 million, representing a sequential decrease of 0.2% but an increase of 3.0% on a billing day basis. On a year-over-year basis, there was a decrease of 3.4%. The technology flex revenue decreased 0.2% sequentially but increased 3.0% on a billing day basis, while FA flex revenue increased 2.4% sequentially (5.7% on a billing day basis) but decreased 2.4% year over year.
The gross profit margin for the fourth quarter was 27.2%, a sequential decrease of 50 basis points but an increase of 20 basis points year over year. The flex gross profit margin was 25.8%, showing a sequential decrease of 50 basis points but an increase of 30 basis points year over year.
SG&A expenses as a percentage of revenue for the quarter ended December 31, 2025, was 24.2%, which increased 140 basis points sequentially and 220 basis points year over year. The operating margin was 2.6% for the quarter, a decrease of 190 basis points sequentially and year over year. The diluted earnings per share for the quarter ended December 31, 2025, was $0.30 per share, and the adjusted diluted earnings per share was $0.43, reflecting a decrease of 31.7% sequentially and 28.3% year over year.
For the full year 2025, the company reported revenue of $1.33 billion, a decrease of 5.4% year over year. The technology flex revenue decreased 4.7% year over year, and FA flex revenue decreased 12.8% year over year. The gross profit margin was 27.2%, a decrease of 20 basis points year over year. SG&A expenses as a percentage of revenue for the year ended December 31, 2025, was 23.0%, increasing by 100 basis points year over year. The operating margin was 3.8% for the year, a decrease of 120 basis points year over year. The diluted earnings per share for the year ended December 31, 2025, were $1.96 per share, and the adjusted diluted earnings per share were $2.09, reflecting a decrease of 26.9% and 22.0% year over year, respectively.
The company returned $76.0 million in capital to shareholders in the form of open market repurchases totaling $48.5 million and quarterly dividends totaling $27.5 million during the year ended December 31, 2025, which represented over 100% of operating cash flows.
Looking forward to the first quarter of 2026, the company provided estimates, including revenue of $324 million to $332 million, earnings per share of $0.37 to $0.45, gross profit margins of 26.9% to 27.1%, flex gross profit margins of 25.5% to 25.7%, SG&A expenses as a percent of revenue of 23.3% to 23.5%, operating margins of 3.0% to 3.4%, WASO of 17.3 million, and an effective tax rate of 29.0%.
Kforce Inc.'s board of directors approved an increase in the quarterly dividend, representing the seventh consecutive annual increase, to $1.60 per share, with the first quarter cash dividend of $0.40 per share payable on March 20, 2026, to shareholders of record as of the close of business on March 6, 2026. Today the company's shares have moved -1.56% to a price of $34.07. For the full picture, make sure to review KFORCE INC's 8-K report.
