KFORCE REPORTS FOURTH QUARTER 2025 REVENUE OF $332.0 MILLION OVERALL REVENUES GREW 3% SEQUENTIALLY IN THE FOURTH QUARTER 2025 ON A BILLING DAY BASIS BOARD OF DIRECTORS APPROVES[...]

KFORCE REPORTS FOURTH QUARTER 2025 REVENUE OF $332.0 MILLION

OVERALL REVENUES GREW 3% SEQUENTIALLY IN THE FOURTH QUARTER 2025 ON A BILLING DAY BASIS

BOARD OF DIRECTORS APPROVES INCREASE IN QUARTERLY DIVIDEND FOR SEVENTH CONSECUTIVE YEAR

TAMPA, FL, February 2, 2026 - Kforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the fourth quarter and full year of 2025. References to "as adjusted" figures within this press release relate to results for the fourth quarter and year ended December 31, 2025, as adjusted for certain expenses. These references pertain to non-GAAP measures that are more fully described in the Adjusted Financial Performance Measures section of this press release.

Joseph J. Liberatore, President and Chief Executive Officer, commented, "We are pleased to have delivered fourth quarter revenues that exceeded our expectations, which we believe are reflective of the continued build of momentum that we began to experience in the third quarter. The sequential Flex revenue growth we delivered in our Technology business represents the highest sequential billing day growth since the second quarter of 2022. This momentum appears to be carrying over into the first quarter as January 2026 results represent our best start since 2022. These trends are resulting in first quarter guidance that contemplates a slight decline on the low end and slight growth on the high end, both on a year-over-year basis."

Mr. Liberatore continued, "We made tremendous progress in 2025 with our strategic initiatives, including the advancement of the implementation of Workday as our future state enterprise cloud application for human capital management and financials, the evolution of our offshore delivery capability in India, and the further integration of all of the Firm's capabilities across the full spectrum of our service offerings as One Kforce.  We believe each of these initiatives is transformational in nature and will be a meaningful contributor to us meeting our longer-term financial objectives."

Fourth Quarter 2025 Financial Highlights

•Revenue for the quarter ended December 31, 2025 was $332.0 million, a decrease of 0.2% sequentially (increased 3.0% on a billing day basis) and a decrease of 3.4% year over year.

•Technology Flex revenue decreased 0.2% sequentially (increased 3.0% on a billing day basis) and decreased 3.3% year over year. FA Flex revenue increased 2.4% sequentially (5.7% on a billing day basis) and decreased 2.4% year over year.

•Gross profit margin of 27.2% decreased 50 basis points sequentially but increased 20 basis points year over year. Flex gross profit margin of 25.8% decreased 50 basis points sequentially but increased 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. Adjusted SG&A expenses as a percentage of revenue for the quarter ended December 31, 2025 was 23.2%, which increased 40 basis points sequentially and 120 basis points year over year.

•Operating margin was 2.6% for the quarter ended December 31, 2025, which decreased 190 basis points sequentially and year over year. Adjusted operating margin was 3.6% for the quarter ended December 31, 2025, which decreased 90 basis points sequentially and year over year.

•Diluted earnings per share for the quarter ended December 31, 2025 was $0.30 per share. Adjusted diluted earnings per share for the quarter ended December 31, 2025 was $0.43 per share, a decrease of 31.7% sequentially and 28.3% year over year.

Full Year 2025 Financial Highlights

•Revenue for the year ended December 31, 2025 was $1.33 billion, a decrease of 5.4% (5.1% on a billing day basis) year over year.

•Technology Flex revenue decreased 4.7% (4.4% on a billing day basis) year over year. FA Flex revenue decreased 12.8% (12.5% on a billing day basis) year over year.

•Gross profit margin of 27.2% decreased 20 basis points year over year. Flex gross profit margin of 25.8% decreased 10 basis points year over year.

•SG&A expenses as a percentage of revenue for the year ended December 31, 2025 was 23.0%, which increased 100 basis points year over year. Adjusted SG&A expenses as a percentage of revenue for the year ended December 31, 2025 was 22.7%, which increased 70 basis points year over year.

•Operating margin was 3.8% for the year ended December 31, 2025, which decreased 120 basis points year over year. Adjusted operating margin was 4.0% for the year ended December 31, 2025, which decreased 100 basis points year over year.

•Diluted earnings per share for the year ended December 31, 2025 were $1.96 per share, a decrease of 26.9% year over year. Adjusted diluted earnings per share for the year ended December 31, 2025 were $2.09 per share, a decrease of 22.0% year over year.

•We returned $76.0 million in capital to our 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.

Our Board of Directors approved an increase in our 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.

First Quarter 2026 - Guidance

Looking forward to the first quarter of 2026, there will be 63 billing days, compared to 62 billing days in the fourth quarter of 2025 and 63 billing days in the first quarter of 2025. Current estimates for the first quarter of 2026 are:

•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

•Effective tax rate of 29.0%

Conference Call and Annual Meeting

On Monday, February 2, 2026, Kforce will host a conference call at 5:00 p.m. E.T. to discuss these results. The dial-in number is (800) 715-9871 and the conference passcode is "Kforce." The prepared remarks for this call and webcast are available on the Investor Relations page of the Kforce Inc. website in the News and Events section. The replay of the call can be accessed at http://investor.kforce.com.

Our 2026 Annual Meeting of Kforce Inc. Shareholders will be held on Wednesday, April 22, 2026 at 1150 Assembly Drive, Suite 500, Tampa, Florida 33607, commencing at 8:00 a.m. E.T.

About Kforce Inc.

Kforce Inc. (the "Firm") is a solutions firm specializing in technology, finance and accounting, and other professional staffing services. Our KNOWLEDGEforce® empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who deliver solutions custom-tailored to each client's needs. These scalable, flexible outcomes are shaped by deep market knowledge, thought leadership and our multi-industry expertise.

Our integrated approach is rooted in 60 years of proven success deploying highly skilled professionals on a temporary and direct-hire basis. Each year, approximately 17,000 talented experts work with Fortune 500 and other leading companies. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing®.

Michael R. Blackman, Chief Corporate Development Officer

(813) 552-2927