Kforce (KFRC) Q1 2026 earnings summary

Executive summary

• Achieved first year-over-year revenue growth since Q4 2022, with Q1 2026 revenue of $330.4 million exceeding expectations.

• EPS for Q1 2026 was $0.46, above the high end of guidance and up from $0.45 year-over-year.

• Gross profit margin improved by 60 basis points year-over-year to 27.3%.

• Strong execution and broad-based demand, especially in technology, AI, and consulting-led offerings, drove performance.

• $18.6 million was returned to shareholders in Q1 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 margin: 27.3%, up 60 bps year-over-year; Flex gross profit margin up 90 bps year-over-year.

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

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

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

Outlook and guidance

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

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

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

• Expect at least 8% operating margin when annual revenues return to $1.7 billion.

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