Kforce Q2 revenue beats estimates

Overview

• Kforce Q2 2025 revenue of $334.3 mln largely in-line with analyst expectations, per LSEG data

• Technology Flex revenue grew 1.8% sequentially, decreased 5% yr/yr

• Diluted EPS for Q2 was $0.59, marking a yr/yr decline

Outlook

• Professional staffing services company expects Q3 revenue of $324 mln to $332 mln

• Kforce anticipates Q3 EPS between $0.53 and $0.61

• Company sees Q3 gross profit margins of 27.0% to 27.2%

• Kforce notes stable demand in Technology business despite uncertainty

Result Drivers

• TECHNOLOGY FLEX REVENUE - Sequential growth of 1.8% driven by stability in technology demand, despite year-over-year decline

• FINANCE AND ACCOUNTING FLEX REVENUE - Sequential growth of 2.1% amid demand constraints and macroeconomic uncertainty

• MACROECONOMIC UNCERTAINTY - Continued uncertainty affecting demand environment, yet company remains encouraged by stable trends in technology sector

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for Kforce Inc is $52.00, about 10.7% above its July 25 closing price of $46.45

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw7Pd62sa