Kforce Inc. (NYSE: KFRC) delivered 3% sequential revenue growth. This gain came as demand for tech talent picked up. Kforce Q4 2025 Earnings exceeded expectations as the company reported revenue of $332 million. This beat Wall Street forecasts by 0.8%. As a result, the Tampa-based staffing firm saw shares rise. For the official Kforce Q4 2025 Earnings Press Release, visit the investor relations page.
Market Performance
Kforce shares traded at $36.68. This reflects a 2.5% gain from the prior session. Currently, the company has a market cap of about $665 million. In addition, its price-to-earnings ratio stands at 13.67. Over the past year, the stock ranged from $24.49 to $55.40. Consequently, this shows high volatility in the staffing sector.
Kforce Q4 2025 Earnings: Financial Results
Fourth quarter revenue was $332 million. This was down 3.4% from last year. However, it marked the third straight quarter of gains. Specifically, the tech segment grew 3%. Meanwhile, the finance division expanded 5.7%. Furthermore, gross profit margin reached 25.8%. This was up 30 basis points year-over-year. Additionally, Kforce returned $14.1 million to shareholders. This included $6.7 million in dividends and $7.4 million in buybacks.
2025 Full Year Performance
Full year 2025 revenue totaled $1.33 billion. Notably, this was the third year of falling sales. The broader tech staffing sector faced the same trend. As a result, operating margin fell to 2.6% in Q4. This was down 200 basis points from last year. Nevertheless, the company kept investing in growth plans.
Quarterly Revenue Trend
Kforce Q4 2025 Earnings: Quarterly Revenue Performance (2024-2025)
AI Reality Check Reshapes Demand
CEO Joe Liberatore noted a key shift in AI views. During the Q4 call, he said clients moved past the hype phase. Instead, they now focus on real-world use cases. According to Liberatore, 70%-75% of AI success comes from change management. Therefore, tech alone is not enough.
In addition, the American Staffing Association index turned positive in August 2025. This ended three years of decline. As a result, Kforce saw steady gains. Most importantly, January 2026 was the firm’s best start since 2022. For industry trends, see American Staffing Association.
Data and Digital Practices Lead Recovery
Kforce’s data and digital units grew the fastest. Clients focused on basic upgrades first. For example, many pushed for cloud moves and ERP updates. Similarly, data projects gained steam. This happened because AI trials showed gaps in systems.
COO David Kelly added that growth is not just about AI. In fact, traditional staffing also picked up. As a result, multi-year projects got the green light. Companies now see that these changes take time. Hence, they are planning for the long term.
Q1 2026 Outlook
Management set Q1 2026 revenue guidance at $328 million. This beat analyst forecasts by 2%. Moreover, they expect operating margin of 37 to 45 basis points. January results support this view. Consequently, Kforce sees more gains ahead. Clients now prefer flexible talent models. Therefore, the outlook remains positive.
Kforce Q4 2025 Earnings: Key Takeaways
In summary, Kforce posted its third straight quarter of growth. The AI reality check helped boost tech hiring demand. As a result, January 2026 was the best start in four years. Looking ahead, management expects more progress. Digital and data projects will drive this trend. For the latest updates, follow Kforce on LinkedIn.