Kforce (KFRC) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $330.4 million, marking the first year-over-year growth since Q4 2022, with EPS of $0.46 exceeding guidance.

• Gross profit margin improved by 60 basis points year-over-year to 27.3%, driven by higher Flex margins.

• Strong execution and broad-based demand, especially in technology and AI-related projects, supported by integrated strategy and flexible workforce solutions.

• Net income for Q1 2026 was $7.9 million, down from $8.1 million in Q1 2025.

• $18.6 million was returned to shareholders via $11.8 million in repurchases and $6.8 million in dividends.

Financial highlights

• Q1 2026 revenue: $330.4 million, up 0.1% year-over-year and above guidance.

• Gross profit: $90.1 million (27.3% margin), up from $88.3 million (26.7%).

• Diluted EPS: $0.46, up from $0.45 in Q1 2025 and above the high end of guidance.

• Adjusted EBITDA for Q1 2026 was $16.9 million, flat year-over-year.

• Operating margin: 3.6%; effective tax rate: 30.2%.

Outlook and guidance

• Q2 2026 revenue guidance: $344–$352 million; midpoint ($348 million) up ~4% year-over-year and sequentially.

• Q2 2026 EPS guidance: $0.67–$0.75; midpoint reflects 20% year-over-year growth.

• Q2 2026 gross profit margin expected between 27.7% and 27.9%; operating margin expected between 5.0% and 5.4%.

• Technology and FA Flex revenues expected to grow low to high single digits sequentially and year-over-year in Q2.

• Guidance assumes a stable operating environment and excludes unusual or non-recurring items.