Quarterly ResultApr 29, 2026, 04:35 PM
KFRC Q1 Revenue +0.1% to $330.4M; EPS $0.46; Gross Margin +60bps
AI Summary
Kforce Inc. reported a slight revenue increase of 0.1% to $330.4 million for Q1 2026, marking its first year-over-year growth in over three years. Net income, however, saw a 2.7% decrease to $7.9 million, though diluted EPS rose to $0.46. The company experienced improved gross profit margins, driven by Flex revenue growth, but faced a significant decline in Direct Hire revenue. Kforce returned $18.6 million to shareholders through buybacks and dividends, while cash flow from operating activities turned negative.
Key Highlights
- KFRC Q1 2026 revenue increased 0.1% to $330.4 million from $330.0 million in Q1 2025.
- Net income for Q1 2026 decreased 2.7% to $7.9 million, or $0.46 diluted EPS.
- Gross profit margin for Q1 2026 increased 60 basis points to 27.3% from 26.7% in Q1 2025.
- Flex revenue increased 0.5% to $324.2 million, while Direct Hire revenue decreased 17.7% to $6.1 million.
- Technology segment revenue decreased 0.1% to $306.0 million; FA segment revenue increased 2.8% to $24.4 million.
- The company returned $18.6 million to shareholders, including $11.8 million in buybacks and $6.8 million in dividends.
- Cash used in operating activities was $4.1 million in Q1 2026, compared to $0.2 million provided in Q1 2025.
- Kforce repurchased 428 thousand shares of common stock for $11.8 million in Q1 2026.
Price Impact
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