📊 KFRC Key Takeaways
Is Kforce Inc. (KFRC) a Good Investment?
KFRC faces deteriorating financial fundamentals with revenue declining 5.4% YoY and net income collapsing 30.9%, indicating underlying business stress in its staffing services segment. Most critically, the company is burning cash with negative operating cash flow (-$4.1M) and negative free cash flow (-$7.4M) despite positive net income, suggesting earnings quality concerns. Combined with an extremely thin 2.4% net margin, weak 6.8% ROE, and dangerously low cash position ($1.3M), the company lacks financial resilience to navigate ongoing headwinds.
KFRC shows solid financial health with a debt-free balance sheet, healthy liquidity, and consistent free cash flow generation, reflecting an asset-light model and strong capital efficiency (high ROE). However, declining revenue and materially lower net income/margins highlight cyclicality and competitive pressure, warranting caution until growth and profitability stabilize.
Why Buy Kforce Inc. Stock? KFRC Key Strengths
- Minimal leverage with 0.00x debt-to-equity ratio provides financial flexibility
- Reasonable 27.3% gross margin provides some buffer in core operations
- Current ratio of 1.79x indicates near-term liquidity coverage despite low absolute cash
- Debt-free balance sheet with strong liquidity (1.78x current, 25.3x coverage)
- Consistent free cash flow ($46.8M; 3.5% margin) supporting flexibility
- High ROE (27.9%) from asset-light operations and efficient capital use
KFRC Stock Risks: Kforce Inc. Investment Risks
- Negative operating cash flow and free cash flow indicate the business is destroying rather than generating cash
- Revenue decline combined with 30.9% net income drop signals demand weakness and operational challenges in staffing services
- Critically low cash position ($1.3M) with ongoing cash burn poses imminent solvency risk without operational turnaround
- Extremely thin operating margin (3.6%) and net margin (2.4%) leave no room for error in competitive labor market
- Top-line contraction (-5.4% YoY) and earnings decline (-30.9% YoY)
- Thin margins (3.8% operating, 2.6% net) vulnerable to pricing pressure
- Low cash on hand ($2.14M) increases reliance on working capital discipline
Key Metrics to Watch
- Operating cash flow trajectory - must return to positive immediately to avoid liquidity crisis
- Revenue stabilization and return to growth to restore profit leverage
- Cash position and any financing activities that may indicate distress
- Gross margin trends - sustaining 27%+ is critical given thin operating margins
- Revenue growth (YoY and sequential)
- Operating margin expansion
Kforce Inc. (KFRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Kforce Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KFRC Profit Margin, ROE & Profitability Analysis
KFRC vs Services Sector: How Kforce Inc. Compares
How Kforce Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kforce Inc. Stock Overvalued? KFRC Valuation Analysis 2026
Based on fundamental analysis, Kforce Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kforce Inc. Balance Sheet: KFRC Debt, Cash & Liquidity
KFRC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kforce Inc.'s revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $3.13 reflects profitable operations.
KFRC Revenue Growth, EPS Growth & YoY Performance
KFRC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $330.0M | $7.9M | $0.45 |
| Q3 2025 | $332.6M | $8.1M | $0.63 |
| Q2 2025 | $334.3M | $8.1M | $0.59 |
| Q1 2025 | $330.0M | $8.1M | $0.45 |
| Q3 2024 | $353.3M | $10.6M | $0.54 |
| Q2 2024 | $356.3M | $11.0M | $0.75 |
| Q1 2024 | $351.9M | $11.0M | $0.58 |
| Q3 2023 | $373.1M | $10.6M | $0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kforce Inc. Dividends, Buybacks & Capital Allocation
KFRC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kforce Inc. (CIK: 0000930420)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KFRC
What is the AI rating for KFRC?
Kforce Inc. (KFRC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KFRC's key strengths?
Claude: Minimal leverage with 0.00x debt-to-equity ratio provides financial flexibility. Reasonable 27.3% gross margin provides some buffer in core operations. ChatGPT: Debt-free balance sheet with strong liquidity (1.78x current, 25.3x coverage). Consistent free cash flow ($46.8M; 3.5% margin) supporting flexibility.
What are the risks of investing in KFRC?
Claude: Negative operating cash flow and free cash flow indicate the business is destroying rather than generating cash. Revenue decline combined with 30.9% net income drop signals demand weakness and operational challenges in staffing services. ChatGPT: Top-line contraction (-5.4% YoY) and earnings decline (-30.9% YoY). Thin margins (3.8% operating, 2.6% net) vulnerable to pricing pressure.
What is KFRC's revenue and growth?
Kforce Inc. reported revenue of $330.4M.
Does KFRC pay dividends?
Kforce Inc. pays dividends, with $6.8M distributed to shareholders in the trailing twelve months.
Where can I find KFRC SEC filings?
Official SEC filings for Kforce Inc. (CIK: 0000930420) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KFRC's EPS?
Kforce Inc. has a diluted EPS of $0.46.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KFRC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Kforce Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KFRC stock overvalued or undervalued?
Valuation metrics for KFRC: ROE of 6.8% (sector avg: 16%), net margin of 2.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy KFRC stock in 2026?
Our dual AI analysis gives Kforce Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KFRC's free cash flow?
Kforce Inc.'s operating cash flow is $-4.1M, with capital expenditures of $3.3M. FCF margin is -2.2%.
How does KFRC compare to other Services stocks?
Vs Services sector averages: Net margin 2.4% (avg: 10%), ROE 6.8% (avg: 16%), current ratio 1.79 (avg: 1.5).