Kforce (KFRC) Q4 Revenue Beats but EPS Misses, Shares Drop 11.7%

Kforce (NYSE:KFRC) reported Q4 CY2025 revenue of $332 million, down 3.4% year-over-year but 0.8% above Wall Street estimates, yet its GAAP EPS of $0.30 missed consensus by 35.6%. The stock fell 11.7% to $32.36 on February 2, 2026, following the mixed results. The company guided Q1 2026 revenue to $328 million at the midpoint—2% above analyst expectations—suggesting near-term stabilization. However, Kforce’s operating margin contracted to 2.6%, down 2 percentage points YoY, reflecting persistent cost pressures. Over the past five years, revenue and EPS have declined annually by 1% and 5.7%, respectively, with two-year EPS drops accelerating to 20.8%. Analysts project 17.7% EPS growth over the next 12 months, but long-term profitability remains constrained by a high cost base and weak pricing power in a competitive staffing market.