Kforce (KFRC) Q1 2026 earnings summary

Executive summary

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

• Q1 2026 EPS of $0.46 exceeded the high end of guidance, up 2.2% year-over-year.

• Strong execution and broad-based demand across industries and service offerings, especially in technology and AI-related projects.

• Integrated strategy and focus on flexible workforce solutions are driving client engagement and market share gains.

• Board approved a Q2 2026 cash dividend of $0.40 per share.

Financial highlights

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

• Earnings per share: $0.46, above the high end of guidance, up from $0.45 in Q1 2025.

• Gross margin: 27.3%, up 60 bps year-over-year; flex gross profit margins up 90 bps year-over-year to 25.9%.

• Operating margin: 3.6%, improved 10 bps year-over-year; effective tax rate: 30.2%.

• Net income for Q1 2026 was $7.9 million; adjusted EBITDA 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 2026 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.