Kforce Inc. reported financial results for the third quarter ended September 30, 2026, exceeding the high end of its revenue guidance. The company reported total revenue of $357.8 million, representing a 2.4% increase from the previous quarter and a 7.5% increase compared to the same period in the prior year.
Revenue growth was driven by both Technology and Finance and Accounting Flex segments. Technology Flex revenue increased 7.8% year over year, while Finance and Accounting Flex revenue increased 4.6% year over year.
Gross profit margins for the quarter were 28.2%, a decrease of 30 basis points from the prior quarter but an increase of 50 basis points compared to the same period in 2025. The company noted that a gain on company-owned life insurance policies (COLI Gain) benefited operating margins and earnings per share by 60 basis points and $0.12, respectively.
Operating margins for the third quarter were 6.3%, an increase of 90 basis points sequentially and 180 basis points year over year. Diluted earnings per share (EPS) for the quarter were $0.90, an increase of 23.3% sequentially and 42.9% year over year.
Kforce returned $6.7 million in capital to shareholders through quarterly dividends during the third quarter. The company’s Board of Directors approved a fourth quarter cash dividend of $0.40 per share, payable on December 18, 2026.
Looking ahead to the fourth quarter of 2026, Kforce provided guidance estimating revenue between $352 million and $360 million and diluted EPS between $0.62 and $0.70.