Skip page header and navigation

Kforce reports uncertain environment in Q4 with revenue down

Kforce reports uncertain environment in Q4 with revenue down

Craig Johnson
| February 3, 2025
Accounting financial banking stock spreadsheet data numbers with calculator in blue financial audit concept.

Main article

Fourth-quarter revenue at professional staffing firm Kforce (NYSE: KFRC) fell 5.4% to $343.8 million in a subdued environment, though it was above the midpoint of guidance.

“We have been operating in an uncertain macro environment for more than two years, though demand for our technology services stabilized early in 2024 and remained stable throughout the year,” President and CEO Joseph J. Liberatore said in a press release.

Liberatore also said in a conference call with analysts that the operating environment may improve this year, citing post-election conversations with clients and the preponderance of economic views.

Still, the company has not seen signs of a positive inflection point in its key indicators and the road ahead appears murky.

“While the political uncertainty has been resolved with President Trump and his administration taking office on January 20th, the impacts from potential policy changes is unclear,” Liberatore said. “In addition, the prospects for further Fed rate cuts in 2025 appear less certain, with inflation indicators proving a bit stickier and continued strength in the labor markets.”

Still, the company is seeing stability in its business with the exception of normal seasonality, he said. In addition, Kforce’s IT business grew sequentially by almost 1% per billing day.

The company forecast first-quarter revenue of between $330 million and $338 million, a year-over-year decline of between 3.9% and 6.2%.

Kforce - Q4 2024

(US$ thousands)

Q4 2024

Q4 2023

% change

Revenue

343,782

363,447

-5.4%

Gross profit

92,655

99,363

-6.8%

Gross margin percentage

27.0%

27.3%

-

Net income

11,061

15,716

-29.6%

Revenue by Function and Segment

(US$ thousands)

Q4 2024

Q4 2023

% change

Total flex revenue

337,104

355,611

-5.2%

Total direct-hire revenue

6,678

7,836

-14.8%

Technology

Technology flex revenue

314,019

325,992

-3.7%

Technology direct-hire revenue

3,255

3,403

-4.3%

Total technology revenue

317,274

329,395

-3.7%

Finance & accounting

Finance & accounting flex revenue

23,085

29,619

-22.1%

Finance & accounting direct-hire revenue

3,423

4,433

-22.8%

Total finance & accounting revenue

26,508

34,052

-22.2%

Full-Year Earnings

(US$ thousands)

FY 2024

FY 2023

% change

Revenue

1,405,308

1,531,756

-8.3%

Gross profit

385,445

427,066

-9.7%

Gross margin percentage

27.4%

27.9%

-

Net income

50,414

61,075

-17.5%

Share Price

Shares in Kforce were up 0.32% to $53.92 as of 10:55 a.m. Eastern time Feb. 4. They were 1.81% above their 52-week low.