Kforce (KFRC) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 revenue grew 4.5% year-over-year to $349.3 million, with profitability and gross margin exceeding expectations.

• Technology business achieved its highest year-over-year growth rate since 2022, with sequential improvement at a four-year high.

• Three consecutive quarters of revenue growth have returned to pre-pandemic norms, driven by both consulting and staff augmentation.

• Demand for flexible talent models is rising as organizations prioritize high-value technology initiatives, especially in AI, data, and digital transformation.

• $28.2 million was returned to shareholders via $14.7 million in share repurchases and $13.5 million in dividends during the first half of 2026.

Financial highlights

• Q2 2026 revenue: $349.3 million, up 4.5% year-over-year and 4.1% sequentially; net income $12.3 million, up 18% year-over-year.

• Earnings per share: $0.73, up 24% year-over-year.

• Gross margin: 28.5%, up 140 basis points year-over-year and 120 basis points sequentially.

• Operating margin: 5.4% in Q2, up from 4.5% in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $23.8 million, up from $19.9 million in Q2 2025.

Outlook and guidance

• Q3 2026 revenue guidance: $349–$357 million; EPS guidance: $0.71–$0.79.

• At midpoint, Q3 revenue expected to rise 1.1% sequentially and 6.1% year-over-year; EPS up 19% year-over-year.

• Gross profit margin expected between 28.1% and 28.3%; operating margin 5.3% to 5.7%.

• Technology Flex and FA Flex revenues expected to increase low single digits sequentially and year-over-year in Q3 2026.

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