Reportable Segments

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Reportable Segments

Note B - Reportable Segments

Kforce’s two reportable segments are Technology and Finance and Accounting (“FA”). Within each segment, we provide highly skilled professionals on a Flex and Direct Hire basis to our customers on traditional staffing engagements and increasingly, within our Technology segment, as a part of an overall solutions engagement. The chief operating decision-maker (“CODM”), our President and Chief Executive Officer, establishes the strategic direction of the Firm, its priorities and longer-term financial objectives. Our CODM is ultimately responsible for evaluating segment performance and making decisions regarding resource allocation. Our CODM evaluates performance based on, among others, revenue trends (relative to peers and market benchmarks) and segment gross profit, and other key leading indicators such as client visits, job order trends for traditional staffing assignments, opportunity pipeline reviews for solutions-oriented engagements, and trends in consultants on assignment. The CODM uses these financial metrics and productivity measures when making decisions about allocating capital and resources to the segments.

Segment gross profit is defined as segment revenue, less direct costs attributable to the reportable segment. The CODM is not provided income from operations or asset information by reportable segment as operations are largely combined.

The following table provides information on the operations of our segments:

(in thousands)	Technology		FA		Total
Three Months Ended June 30,
2025
Revenue	$	310,527	$	23,789	$	334,316
Direct costs	228,953		14,715		243,668
Gross profit	$	81,574	$	9,074	$	90,648
Less:
Selling, general and administrative expenses					74,370
Depreciation and amortization					1,390
Other expense, net					1,029
Income before income taxes					$	13,859

	Technology		FA		Total
2024
Revenue	$	327,874	$	28,444	$	356,318
Direct costs	239,977		17,368		257,345
Gross profit	$	87,897	$	11,076	$	98,973
Less:
Selling, general and administrative expenses					77,718
Depreciation and amortization					1,555
Other expense, net					504
Income before income taxes					$	19,196
Six Months Ended June 30,
2025
Revenue	$	616,811	$	47,533	$	664,344
Direct costs	456,053		29,383		485,436
Gross profit	$	160,758	$	18,150	$	178,908
Less:
Selling, general and administrative expenses					149,535
Depreciation and amortization					2,854
Other expense, net					1,594
Income before income taxes					$	24,925
2024
Revenue	$	649,958	$	58,249	$	708,207
Direct costs	478,024		35,960		513,984
Gross profit	$	171,934	$	22,289	$	194,223
Less:
Selling, general and administrative expenses					155,908
Depreciation and amortization					2,888
Other expense, net					1,160
Income before income taxes					$	34,267