Stock-based Compensation

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Note I - Stock-Based Compensation

On April 23, 2025, Kforce’s shareholders approved the 2025 Stock Incentive Plan (the “2025 Plan”). The 2025 Plan allows for the issuance of stock options, stock appreciation rights (“SAR”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards, such as Performance-Based Awards (collectively referred to as “Restricted Stock”). The aggregate number of shares reserved under the 2025 Plan is approximately 2.7 million. Grants of an option or SAR reduce the reserve by one share, while a Restricted Stock award reduces the reserve by 2.72 shares. The 2025 Plan terminates on April 23, 2035.

The following table presents the Restricted Stock activity for the three months ended March 31, 2025:

(in thousands, except per share amounts)	Number of  Restricted Stock	Weighted-Average Grant Date Fair Value		Total Intrinsic Value of Restricted Stock Vested
Outstanding at December 31, 2024	910	$	61.28
Granted	8	$	60.21
Forfeited	(1)	$	57.79
Vested	(6)	$	24.10	$	308
Outstanding at March 31, 2025	911	$	61.53

As of March 31, 2025, total unrecognized stock-based compensation expense related to restricted stock was $39.8 million, which is expected to be recognized over a weighted-average remaining period of 4.4 years.

During the three months ended March 31, 2025 and 2024, stock-based compensation expense was $3.7 million and $3.5 million, respectively. Stock-based compensation is included in Selling, general and administrative expenses (“SG&A”) in the Unaudited Condensed Consolidated Statements of Operations.