\nKforce Inc. (NYSE: KFRC), a solutions firm that specializes in technology and other professional staffing services, today announced results for the second quarter of 2026.<\/p>\n
\nJoseph J. Liberatore, President and Chief Executive Officer, said, “We are extremely pleased to have successfully delivered results in the second quarter that again exceeded our expectations from both a revenue and profitability perspective. Overall revenues positively inflected in the first quarter of 2026, meaningfully expanded in the second quarter, and our guidance for the third quarter contemplates continued sequential improvement. There has been a lot of discussion about whether we and the broader sector can continue to deliver revenue growth given the much-speculated negative demand impact of AI tools and technologies. We believe that the need for high-quality talent remains essential in virtually all technology initiatives, including AI-related investments. Encouragingly, we have been successful at delivering three consecutive quarters of revenue growth that has returned to pre-pandemic, and thus pre-AI advancement, averages while generating operating margins that are meaningfully higher than those achieved at comparable historical levels.<\/p>\n
\nI am incredibly proud of the determination of our people and deeply appreciative of the trust our world-class clients continue to place in Kforce as we help them advance more meaningful, higher-value engagements. We believe our go-to-market approach, shaped by our integrated strategy efforts, is gaining traction. Across the Firm, our people are operating more fully as One Kforce, bringing the full breadth of our capabilities to bear across our service offerings.”<\/p>\n
Quarterly Financial Highlights<\/span><\/b><\/p>\n Third Quarter 2026 – Guidance<\/span><\/b><\/p>\n \nLooking forward to the third quarter of 2026, there will be 64 billing days, compared to 64 billing days in the second quarter of 2026 and third quarter of 2025. Current estimates for the third quarter of 2026 are:<\/p>\n Conference Call<\/span><\/b><\/p>\n \nOn Monday, July 27, 2026, Kforce will host a conference call at 5:00 p.m. E.T. to discuss these results. The dial-in number is (833) 461-5787 and the conference passcode is 778 562 393. 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<\/a>.<\/p>\n About Kforce Inc.<\/span><\/b><\/p>\n \nKforce Inc. (the \u201cFirm\u201d) is a solutions firm specializing in technology, finance and accounting, and other professional staffing services. Our KNOWLEDGEforce\u00ae empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who deliver solutions custom-tailored to each client\u2019s needs. These scalable, flexible outcomes are shaped by deep market knowledge, thought leadership and our multi-industry expertise.<\/p>\n \nOur integrated approach is rooted in over 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\u00ae.<\/p>\n CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nAll statements in this press release, other than those of a historical nature, are forward-looking statements including, but not limited to, statements regarding the traction of our go-to market approach and the Firm’s guidance for the third quarter of 2026. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: general business conditions; global trade policy, federal administration actions, government shutdowns, other geopolitical events and their potential impacts on our operations and the broader economy; growth rates in temporary staffing and the general economy; competitive factors; risks due to shifts in the market demand, including those resulting from the growth of artificial intelligence (AI); changes in demand, or our ability to adapt to such changes; a constraint in the supply of consultants and candidates, or the Firm\u2019s ability to attract and retain such individuals; the success of the Firm in attracting and retaining its management team and key operating employees; changes in business or service mix; the ability of the Firm to repurchase shares and issue dividends; the occurrence of unanticipated expenses, income, gains or losses; the effect of adverse weather conditions; changes in our effective tax rate; our ability to comply with or respond to government regulations, laws, orders, guidelines and policies that impact our business; risk of contract performance, delays, termination or the failure to obtain new assignments, contracts, or funding under contracts; ability to comply with our obligations in a remote work environment, including consultants engaging in unauthorized or fraudulent activity; continued performance, security of, and improvements to, our enterprise information systems; and impacts of actual or potential litigation, or other legal or regulatory matters or liabilities, including the risk factors and matters listed from time to time in the Firm\u2019s reports filed with the Securities and Exchange Commission, including, but not limited to, the Firm\u2019s Form 10-K for the fiscal year ended December 31, 2025, as well as assumptions regarding the foregoing. The terms \u201cshould,\u201d \u201cbelieve,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201canticipate,\u201d \u201cplan\u201d, “appear” and similar expressions and variations thereof contained in this press release identify certain of such forward-looking statements, which speak only as of the date of this press release. As a result, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Future events and actual results may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and the Firm undertakes no obligation to update any forward-looking statements.<\/p>\n Kforce Inc.<\/b><\/p>\n Summary of Operations<\/b><\/p>\n (In Thousands, Except Per Share Amounts)<\/b><\/p>\n (Unaudited)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n June 30, 2026<\/b><\/p>\n<\/td>\n March 31, 2026<\/b><\/p>\n<\/td>\n June 30, 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \nRevenue<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n349,331<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n330,364<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n334,316<\/p>\n<\/td>\n<\/tr>\n \nDirect costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n249,877<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n240,296<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n243,668<\/p>\n<\/td>\n<\/tr>\n \nGross profit<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n99,454<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n90,068<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n90,648<\/p>\n<\/td>\n<\/tr>\n \nSelling, general and administrative expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n79,406<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n76,758<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n74,370<\/p>\n<\/td>\n<\/tr>\n \nDepreciation and amortization<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,296<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,304<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,390<\/p>\n<\/td>\n<\/tr>\n \nIncome from operations<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n18,752<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12,006<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n14,888<\/p>\n<\/td>\n<\/tr>\n \nOther expense, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n991<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n652<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,029<\/p>\n<\/td>\n<\/tr>\n \nIncome before income taxes<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17,761<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11,354<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n13,859<\/p>\n<\/td>\n<\/tr>\n \nIncome tax expense<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,438<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,429<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,410<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n12,323<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n7,925<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n10,449<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nEarnings per share \u2013 diluted<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.73<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.46<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n0.59<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nWeighted average shares outstanding \u2013 diluted<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n16,978<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17,197<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n17,759<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n23,757<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n16,897<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n19,885<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nBilling days<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n63<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Kforce Inc.<\/b><\/p>\n Consolidated Balance Sheets<\/b><\/p>\n (In Thousands)<\/b><\/p>\n (Unaudited)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n June 30, 2026<\/b><\/p>\n<\/td>\n December 31, 2025<\/b><\/p>\n<\/td>\n<\/tr>\n ASSETS<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCurrent assets:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCash and cash equivalents<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n330<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,142<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTrade receivables, net of allowances<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n220,857<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n190,461<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPrepaid expenses and other current assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10,118<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9,669<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal current assets<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n231,305<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n202,272<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nFixed assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,026<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,023<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n145,003<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n129,267<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDeferred tax assets, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,818<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,036<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGoodwill<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n25,040<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n25,040<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal assets<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n410,192<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n365,638<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n LIABILITIES AND STOCKHOLDERS\u2019 EQUITY<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCurrent liabilities:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAccounts payable and other accrued liabilities<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n62,863<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n67,609<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAccrued payroll costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n50,297<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n42,328<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCurrent portion of operating lease liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,477<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,342<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nIncome taxes payable<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,126<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n451<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal current liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n119,763<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n113,730<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLong-term debt \u2013 credit facility<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n107,100<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n66,400<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nOther long-term liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n59,701<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n60,905<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n286,564<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n241,035<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCommitments and contingencies<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nStockholders\u2019 equity:<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPreferred stock<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCommon stock<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n743<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n742<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAdditional paid-in capital<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n566,505<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n558,297<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRetained earnings<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n558,001<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n552,180<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTreasury stock, at cost<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(1,001,621<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(986,616<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nTotal stockholders\u2019 equity<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n123,628<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n124,603<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities and stockholders\u2019 equity<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n410,192<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n365,638<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Kforce Inc.<\/b><\/p>\n Key Statistics<\/b><\/p>\n (Unaudited)<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Q2 2026<\/b><\/p>\n<\/td>\n Q1 2026<\/b><\/p>\n<\/td>\n Q2 2025<\/b><\/p>\n<\/td>\n<\/tr>\n Total Firm<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal Revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n349,331<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n330,364<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n334,316<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGP %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n28.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27.3<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nFlex revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n341,829<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n324,228<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n328,411<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nHours (000’s)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,926<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,772<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,787<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nFlex GP %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26.9<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n25.9<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n25.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nDirect Hire revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n7,502<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n6,136<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n5,905<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPlacements<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n309<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n276<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n269<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAverage fee<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n24,278<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n22,270<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n21,964<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nBilling days<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n63<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n Technology<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal Revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n323,876<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n305,963<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n310,527<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGP %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27.6<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26.3<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nFlex revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n320,035<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n302,955<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n307,844<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nHours (000\u2019s)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,520<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,365<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,404<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nFlex GP %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n26.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n25.7<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n25.6<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nDirect Hire revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3,841<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3,008<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,683<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPlacements<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n148<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n139<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n116<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAverage fee<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n26,038<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n21,659<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n23,154<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n Finance and Accounting<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal Revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n25,455<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n24,401<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n23,789<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nGP %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n39.3<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n38.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nFlex revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n21,794<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n21,273<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n20,567<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nHours (000\u2019s)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n406<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n407<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n383<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nFlex GP %<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n29.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n27.9<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n28.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nDirect Hire revenue (000\u2019s)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3,661<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3,128<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n3,222<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPlacements<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n161<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n137<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n153<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAverage fee<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n22,671<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n22,891<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n21,063<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Kforce Inc. \nIn addition to our financial results presented in accordance with GAAP, Kforce may use certain non-GAAP financial measures, which we believe provide useful information to investors in evaluating our core operating performance. The following non-GAAP financial measures presented may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently. Our non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. We view these non-GAAP financial measures as supplemental, which are not intended to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.<\/p>\n Revenue Growth Rates<\/span><\/b><\/p>\n \n\u201cRevenue growth rates,\u201d a non-GAAP financial measure, is defined by Kforce as revenue growth after removing the impacts on reported revenues from the changes in the number of billing days. Management believes this data is particularly useful because it aids in evaluating revenue trends over time. The impact of billing days is calculated by dividing each comparative period\u2019s reported revenues by the number of billing days for the respective period to arrive at a per billing day amount for each quarter. Growth rates are then calculated using the per billing day amounts as a percentage change compared to the respective period. Management calculates the number of billing days for each reporting period based on the number of holidays and business days in the quarter.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Sequential Growth Rates (GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n Q1<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q4<\/b><\/p>\n<\/td>\n Q3<\/b><\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n<\/tr>\n \nTechnology Flex<\/p>\n<\/td>\n \n5.6<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(0.2<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.2<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(1.2<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n1.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nFA Flex<\/p>\n<\/td>\n \n2.4<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(5.6<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.4<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n6.9<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n2.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nTotal Flex revenue<\/p>\n<\/td>\n \n5.4<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(0.6<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(0.1<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(0.7<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n1.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Sequential Growth Rates (Non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n Q1<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Q4<\/b><\/p>\n<\/td>\n Q3<\/b><\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n<\/tr>\n \nBilling Days<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n63<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n62<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTechnology Flex<\/p>\n<\/td>\n \n4.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(1.8<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(1.2<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n0.2<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nFA Flex<\/p>\n<\/td>\n \n0.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(7.1<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.7<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n6.9<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n0.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nTotal Flex revenue<\/p>\n<\/td>\n \n3.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(2.2<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3.2<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n(0.7<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n0.2<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0<\/p>\n<\/td>\n Year-Over-Year Growth Rates (GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n YTD<\/b><\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n Q1<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n YTD<\/b><\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n Q1<\/b><\/p>\n<\/td>\n<\/tr>\n \nTechnology Flex<\/p>\n<\/td>\n \n2.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n4.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n0.2<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5.0<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(5.0<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(5.0<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n \nFA Flex<\/p>\n<\/td>\n \n5.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n6.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n5.7<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(20.1<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(16.8<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(23.2<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n \nTotal Flex revenue<\/p>\n<\/td>\n \n2.3<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n4.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n0.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(6.1<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(5.8<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(6.4<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n Year-Over-Year Growth Rates (Non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n YTD<\/b><\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n Q1<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n YTD<\/b><\/p>\n<\/td>\n Q2<\/b><\/p>\n<\/td>\n Q1<\/b><\/p>\n<\/td>\n<\/tr>\n \nBilling Days<\/p>\n<\/td>\n \n127<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n63<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n127<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n63<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTechnology Flex<\/p>\n<\/td>\n \n2.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n4.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n0.2<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4.3<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(5.0<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(3.5<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n \nFA Flex<\/p>\n<\/td>\n \n5.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n6.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n5.7<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(19.5<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(16.8<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(22.0<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n \nTotal Flex revenue<\/p>\n<\/td>\n \n2.3<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n4.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n0.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(5.4<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(5.8<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n \n(4.9<\/p>\n<\/td>\n \n)%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Free Cash Flow<\/span><\/b><\/p>\n \n\u201cFree Cash Flow,\u201d a non-GAAP financial measure, is defined by Kforce as net cash provided by operating activities determined in accordance with GAAP, less capital expenditures. Management believes this provides an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows and is useful information to investors as it provides a measure of the amount of cash generated from the business that can be used for strategic opportunities including investing in our business, repurchasing common stock, paying dividends or making acquisitions. Free Cash Flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. Therefore, we believe it is important to view Free Cash Flow as a complement to, but not a replacement of, our unaudited condensed consolidated statements of cash flows.<\/p>\n \nThe following table presents a reconciliation of Cash (Used in) Provided by Operating Activities to Free Cash Flow:<\/p>\n \n\u00a0<\/p>\n<\/td>\n Six Months Ended June 30,<\/b><\/p>\n<\/td>\n<\/tr>\n (in thousands)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCash (used in) provided by operating activities<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(6,728<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n18,614<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nCapital expenditures<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(7,194<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(8,290<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nFree cash flow<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(13,922<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n10,324<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nChange in debt<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n40,700<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n37,300<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nRepurchases of common stock<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(15,068<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(32,243<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nCash dividends<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(13,522<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(13,951<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nProceeds from company-owned life insurance<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,383<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nPremiums paid for company-owned life insurance<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(686<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nOther<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(4<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n<\/tr>\n \nChange in cash and cash equivalents<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n(1,812<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2,123<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Adjusted EBITDA<\/span><\/b><\/p>\n \n\u201cAdjusted EBITDA,\u201d a non-GAAP financial measure, is defined by Kforce as net income before depreciation and amortization; stock-based compensation expense; interest expense, net and income tax expense. Adjusted EBITDA should not be considered a measure of financial performance under GAAP. Items excluded from Adjusted EBITDA are significant components in understanding and assessing our past and future financial performance, and this presentation should not be construed as an inference by us that our future results will be unaffected by those items excluded from Adjusted EBITDA. Adjusted EBITDA is a key measure used by management to assess our operations including our ability to generate cash flows and our ability to repay our debt obligations, and management believes it provides a good metric of our core profitability in comparing our performance to our competitors, as well as our performance over different time periods. Consequently, management believes it is useful information to investors. The measure should not be considered in isolation or as an alternative to net income, cash flows or other financial statement information presented in the unaudited condensed consolidated financial statements as indicators of financial performance or liquidity. Also, Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.<\/p>\n \nThe following table presents Adjusted EBITDA and includes a reconciliation of Net income to Adjusted EBITDA:<\/p>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n (in thousands)<\/b><\/p>\n<\/td>\n June 30, 2026<\/b><\/p>\n<\/td>\n March 31, 2026<\/b><\/p>\n<\/td>\n June 30, 2025<\/b><\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n12,323<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n7,925<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n10,449<\/p>\n<\/td>\n<\/tr>\n \nDepreciation and amortization<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,296<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,304<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,390<\/p>\n<\/td>\n<\/tr>\n \nStock-based compensation expense<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,718<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,590<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,618<\/p>\n<\/td>\n<\/tr>\n \nInterest expense, net<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n982<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n649<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,018<\/p>\n<\/td>\n<\/tr>\n \nIncome tax expense<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5,438<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,429<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n3,410<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n23,757<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n16,897<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n19,885<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0<\/p>\n\n
\n
\n
\n \n \n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n
<\/b>Non-GAAP Financial Measures
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<\/b>(Unaudited)<\/i><\/b><\/p>\n\n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/p>\n