This article first appeared on GuruFocus .

• Total Revenue:$349.3 million, up 4.5% year-over-year.

• Earnings Per Share (EPS):$0.73, up approximately 24% year-over-year.

• Gross Margin:28.5%, up 140 basis points year-over-year.

• SG&A Expense:22.7% of revenue, up 50 basis points year-over-year.

• Operating Margin:5.4%.

• Net Debt:$106.8 million at quarter end.

• Return on Equity:Approximately 30%.

• Third Quarter Revenue Guidance:$349 million to $357 million.

• Third Quarter EPS Guidance:$0.71 to $0.79.

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Release Date: July 27, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Kforce Inc ( NYSE:KFRC ) exceeded expectations in both revenue and profitability for the second quarter of 2026.

• The Technology business experienced its highest year-over-year growth rate since the end of 2022.

• The company has successfully delivered three consecutive quarters of revenue growth, returning to pre-pandemic norms.

• Kforce Inc ( NYSE:KFRC ) has seen a meaningful shift in client behavior towards flexible talent models, particularly in technology initiatives.

• The company has maintained a stable average bill rate of approximately $90 per hour over the last four years, reflecting a higher quality, higher margin revenue stream.

Negative Points

• There is ongoing uncertainty in the geopolitical and macroeconomic environment, which could impact future performance.

• Despite positive trends, clients continue to take a measured approach to technology spending.

• The company experienced negative operating cash flows of $6.7 million year-to-date, consistent with historical trends during revenue inflections.

• SG&A expenses increased by 50 basis points year over year, primarily due to higher performance-based compensation.

• The company anticipates some elevated non-cash depreciation and amortization expense in early 2027 post-Workday implementation.

Q & A Highlights

Q: How does the 18% increase in orders in Q2 compare to Q1, and what are the expectations for Q3? A: David Kelly, Chief Operating Officer, noted that the 18% increase in orders in Q2 is consistent with Q1. The company has seen strong activity levels in recent weeks, indicating good momentum and consistent fill ratios. They expect incremental year-over-year improvement in technology revenue growth in Q3.

Q: Can you discuss the sustainability of the higher gross margins and the factors contributing to them? A: Jeffrey Hackman, Chief Financial Officer, explained that the margin improvements are driven by better pricing discipline, a favorable business mix, and increased demand for highly skilled technology talent. The Consulting Solutions business and offshore operations contribute to higher margins. David Kelly added that the consulting business typically has margins 400 to 600 basis points higher than traditional staff augmentation.