Kforce Inc. (KFRC)

Kforce Inc.'s stock price has been impacted by several events in the past six months. The company reported its third-quarter 2025 revenue of $332.6 million and earnings per share (EPS) of $0.63, exceeding analyst expectations, which led to a stock jump of 14.1%. Earlier in Q2 CY2025, Kforce met Wall Street's revenue expectations, but its sales declined year-on-year, and its Q3 CY2025 revenue guidance came in below analysts' estimates, causing the stock to drop. The company also announced a stock repurchase plan in December 2025. Over the past year, KFRC's stock has experienced a significant decline, with a -45.66% change over the last year and underperforming the US Professional Services industry and the broader US Market. In September 2024, Kforce Inc. transferred its listing to the New York Stock Exchange (NYSE). Analysts have also trimmed their price target on Kforce, reflecting expectations for stable, but not materially rebounding, demand in the IT staffing market.

Demand seasonality for Kforce Inc.'s products and services, particularly for its Flex sales (temporary or consulting roles), is relatively limited. The company has been operating in an uncertain macroeconomic environment for over two years, which has impacted demand for its technology services, although it stabilized in early 2024.

Kforce Inc. is a solutions firm specializing in professional staffing services and solutions, primarily within the Technology and Finance & Accounting (FA) sectors in the United States. The company operates within the Industrials sector, specifically in the Staffing & Employment Services industry. Kforce's major products involve providing talent solutions, including both scalable contract staffing (Flex engagements) and permanent placements (Direct Hire). In its Technology segment, Kforce offers expertise in areas such as systems/applications architecture and development, data management and analytics, cloud architecture and engineering, business and artificial intelligence (AI), machine learning, project and program management, and network architecture and security. The FA segment provides consultants for traditional finance and accounting roles, including financial planning and analysis, business intelligence analysis, general accounting, transactional accounting, business and cost analysis, and taxation and treasury. The majority of Kforce's revenue is generated through its Technology segment.

Kforce Inc. primarily provides its professional staffing services and solutions in the United States, where it is also headquartered in Tampa, Florida. The company also leverages offshore capabilities, such as in Pune, India, for flexible and cost-effective talent sourcing and delivery.

Kforce is recognized as a specialized, mid-sized player in the professional staffing and solutions market. It was listed among America's Best Professional Recruiting Firms and America's Best Temp Staffing Firms in 2025 by Forbes. The company's ability to exceed analyst expectations in Q3 2025 despite a challenging macroeconomic environment suggests a degree of resilience and effective management, which can positively influence its reputation. The company's revenue declines over the past two years and underperformance compared to the broader market and industry could implicitly affect its standing among investors and potentially clients, indicating a struggle with demand in a challenging environment.

Kforce Inc.'s ownership is largely concentrated in institutional hands, with approximately 94.57% of the company's shares held by institutional investors. Major institutional owners include Kayne Anderson Rudnick Investment Management LLC, Blackrock Inc., and Vanguard Group Inc. Corporate insiders hold about 4.62% of the shares. David L. Dunkel, the Chairman of the Board, is the largest individual shareholder, owning approximately 37.34% of the company's shares, giving him significant influence over the company's long-term strategic direction. Other notable individual insider shareholders include Howard W. Sutter and William L. Sanders.