Kforce (KFRC) 10-Q 31 Jul 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares shares in Thousands	6 Months Ended
	Jun. 30, 2024	Jul. 24, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-42104
Entity Registrant Name	Kforce Inc
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3264661
Entity Address, Address Line One	1150 Assembly Drive, Suite 500
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33607
City Area Code	813
Local Phone Number	552-5000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	KFRC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		19,379
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000930420
Current Fiscal Year End Date	--12-31

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 356,318	$ 389,190	$ 708,207	$ 795,187
Direct costs	257,345	278,924	513,984	570,945
Gross profit	98,973	110,266	194,223	224,242
Selling, general and administrative expenses	77,718	82,993	155,908	172,332
Depreciation and amortization	1,555	1,340	2,888	2,574
Income from operations	19,700	25,933	35,427	49,336
Other expense, net	504	313	1,160	1,358
Income from operations, before income taxes	19,196	25,620	34,267	47,978
Income tax expense	5,039	7,046	9,123	13,194
Net income	$ 14,157	$ 18,574	$ 25,144	$ 34,784
Earnings per share – basic (in dollars per share)	$ 0.76	$ 0.96	$ 1.34	$ 1.79
Earnings per share - diluted (in dollars per share)	$ 0.75	$ 0.95	$ 1.33	$ 1.77
Weighted average shares outstanding – basic (in shares)	18,696	19,341	18,711	19,398
Weighted average shares outstanding – diluted (in shares)	18,886	19,611	18,903	19,638

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 110	$ 119
Trade receivables, net of allowances of $1,646 and $1,643, respectively	230,714	233,428
Prepaid expenses and other current assets	8,310	10,912
Total current assets	239,134	244,459
Fixed assets, net	8,526	9,418
Other assets, net	85,386	75,924
Deferred tax assets, net	4,599	3,138
Goodwill	25,040	25,040
Total assets	362,685	357,979
Current liabilities:
Accounts payable and other accrued liabilities	58,359	64,795
Accrued payroll costs	39,589	33,968
Current portion of operating lease liabilities	3,384	3,589
Income taxes payable	1,499	623
Total current liabilities	102,831	102,975
Long-term debt – credit facility	36,700	41,600
Other long-term liabilities	56,534	54,324
Total liabilities	196,065	198,899
Commitments and contingencies (Note J)
Stockholders’ equity:
Preferred stock, $0.00 par value; 15,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 250,000 shares authorized, 73,479 and 73,462 issued, respectively	735	734
Additional paid-in capital	535,161	527,288
Retained earnings	535,565	525,222
Treasury stock, at cost; 54,104 and 53,941 shares, respectively	(904,841)	(894,164)
Total stockholders’ equity	166,620	159,080
Total liabilities and stockholders’ equity	$ 362,685	$ 357,979

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 1,646	$ 1,643
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	73,479,000	73,462,000
Treasury stock, shares (in shares)	54,104,000	53,941,000

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		73,242
Beginning of period at Dec. 31, 2022	$ 182,198	$ 732	$ 507,734	$ 6	$ 492,764	$ (819,038)
Beginning of period (in shares) at Dec. 31, 2022						52,744
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,210				16,210
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		(5)
Issuance for stock-based compensation and dividends, net of forfeitures	(1)	$ 0	340		(341)
Stock-based compensation expense	4,326		4,326
Employee stock purchase plan (in shares)						(5)
Employee stock purchase plan	245		172			$ 73
Dividends	(7,003)				(7,003)
Repurchases of common stock (in shares)						181
Repurchases of common stock	(10,244)					$ (10,244)
Other	(6)			(6)
Ending balance (in shares) at Mar. 31, 2023		73,247
End of period at Mar. 31, 2023	$ 185,725	$ 732	512,572	0	501,630	$ (829,209)
End of period (in shares) at Mar. 31, 2023						52,920
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share (in dollars per share)	$ 0.36
Beginning of period at Dec. 31, 2022	$ 182,198	$ 732	507,734	6	492,764	$ (819,038)
Beginning of period (in shares) at Dec. 31, 2022						52,744
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,784
Employee stock purchase plan	541
Ending balance (in shares) at Jun. 30, 2023		73,279
End of period at Jun. 30, 2023	187,618	$ 732	517,422	0	512,937	$ (843,473)
End of period (in shares) at Jun. 30, 2023						53,163
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		73,247
Beginning of period at Mar. 31, 2023	185,725	$ 732	512,572	0	501,630	$ (829,209)
Beginning of period (in shares) at Mar. 31, 2023						52,920
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,574				18,574
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		(32)
Issuance for stock-based compensation and dividends, net of forfeitures	0	$ 0	322		(322)
Stock-based compensation expense	4,309		4,309
Employee stock purchase plan (in shares)						(5)
Employee stock purchase plan	296		219			$ 77
Dividends	(6,945)				(6,945)
Repurchases of common stock (in shares)						248
Repurchases of common stock	(14,341)					$ (14,341)
Ending balance (in shares) at Jun. 30, 2023		73,279
End of period at Jun. 30, 2023	$ 187,618	$ 732	517,422	0	512,937	$ (843,473)
End of period (in shares) at Jun. 30, 2023						53,163
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share (in dollars per share)	$ 0.36
Beginning balance (in shares)		73,279
Beginning balance (in shares)		73,462
Beginning of period at Dec. 31, 2023	$ 159,080	$ 734	527,288	0	525,222	$ (894,164)
Beginning of period (in shares) at Dec. 31, 2023	53,941					53,941
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 10,987				10,987
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		(7)
Issuance for stock-based compensation and dividends, net of forfeitures	0	$ 1	285		(286)
Stock-based compensation expense	3,501		3,501
Employee stock purchase plan (in shares)						(3)
Employee stock purchase plan	204		152			$ 52
Dividends	(7,128)				(7,128)
Repurchases of common stock (in shares)						30
Repurchases of common stock	(2,139)					$ (2,139)
Ending balance (in shares) at Mar. 31, 2024		73,455
End of period at Mar. 31, 2024	$ 164,505	$ 735	531,226	0	528,795	$ (896,251)
End of period (in shares) at Mar. 31, 2024						53,968
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share (in dollars per share)	$ 0.38
Beginning of period at Dec. 31, 2023	$ 159,080	$ 734	527,288	0	525,222	$ (894,164)
Beginning of period (in shares) at Dec. 31, 2023	53,941					53,941
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 25,144
Employee stock purchase plan	406
Ending balance (in shares) at Jun. 30, 2024		73,479
End of period at Jun. 30, 2024	$ 166,620	$ 735	535,161	0	535,565	$ (904,841)
End of period (in shares) at Jun. 30, 2024	54,104					54,104
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		73,455
Beginning of period at Mar. 31, 2024	$ 164,505	$ 735	531,226	0	528,795	$ (896,251)
Beginning of period (in shares) at Mar. 31, 2024						53,968
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,157				14,157
Issuance for stock-based compensation and dividends, net of forfeitures (in shares)		(24)
Issuance for stock-based compensation and dividends, net of forfeitures	0	$ 0	286		(286)
Stock-based compensation expense	3,498		3,498
Employee stock purchase plan (in shares)						(3)
Employee stock purchase plan	202		151			$ 51
Dividends	(7,101)				(7,101)
Repurchases of common stock (in shares)						139
Repurchases of common stock	(8,641)					$ (8,641)
Ending balance (in shares) at Jun. 30, 2024		73,479
End of period at Jun. 30, 2024	$ 166,620	$ 735	$ 535,161	$ 0	$ 535,565	$ (904,841)
End of period (in shares) at Jun. 30, 2024	54,104					54,104
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared per share (in dollars per share)	$ 0.38
Beginning balance (in shares)		73,479

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividend (in dollars per share)	$ 0.38	$ 0.38	$ 0.36	$ 0.36

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 25,144	$ 34,784
Adjustments to reconcile net income to cash provided by operating activities:
Deferred income tax provision, net	(1,461)	2,006
Provision for credit losses	(17)	454
Depreciation and amortization	2,888	2,574
Stock-based compensation expense	6,999	8,635
Noncash lease expense	1,848	1,803
Loss on equity method investment	0	750
Other	(993)	368
(Increase) decrease in operating assets
Trade receivables, net	2,730	19,148
Other assets	(395)	2,461
Increase (decrease) in operating liabilities
Accrued payroll costs	6,027	(8,414)
Other liabilities	(8,665)	(24,138)
Cash provided by operating activities	34,105	40,431
Cash flows from investing activities:
Capital expenditures	(4,979)	(4,950)
Proceeds from Life Insurance Policy	2,377	0
Payment to Acquire Life Insurance Policy, Investing Activities	1,150	193
Proceeds from the sale of our joint venture interest	0	5,059
Note receivable issued to our joint venture	0	(750)
Cash used in investing activities	(3,752)	(834)
Cash flows from financing activities:
Proceeds from credit facility	141,600	342,500
Payments on credit facility	(146,500)	(343,500)
Repurchases of common stock	(11,229)	(24,614)
Cash dividends	(14,229)	(13,947)
Other	(4)	(10)
Cash used in financing activities	(30,362)	(39,571)
Change in cash and cash equivalents	(9)	26
Cash and cash equivalents, beginning of period	119	121
Cash and cash equivalents, end of period	110	147
Supplemental Disclosure of Cash Flow Information
Income taxes	8,593	16,547
Operating lease liabilities	2,485	2,541
Interest, net	1,097	233
Non-Cash Investing and Financing Transactions:
ROU assets obtained from operating leases	1,825	773
Employee stock purchase plan	406	541
Unsettled repurchases of common stock	$ 400	$ 726

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note A - Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of our 2023 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2023, was derived from our audited Consolidated Balance Sheet as of December 31, 2023, as presented in our 2023 Annual Report on Form 10-K. Our quarterly operating results are affected by the seasonality of our clients’ businesses and changes in holiday and vacation days taken. In addition, we typically experience higher costs in the first quarter of each fiscal year as a result of certain U.S. state and federal employment tax resets, which adversely affects our gross profit and overall profitability relative to the remainder of the fiscal year. As such, the results of operations for any interim period may be impacted by these factors, among others, and are not necessarily indicative of, nor comparable to, the results of operations for a full year. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Kforce Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. References in this document to “Kforce,” the “Company,” the “Firm,” “management,” “we,” “our” or “us” refer to Kforce Inc. and its subsidiaries, except where the context indicates otherwise. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Therefore, our accounting estimates and assumptions may change materially in future periods. Earnings per Share Basic earnings per share is computed as net income divided by the weighted average number of common shares outstanding (“WASO”) during the period. WASO excludes unvested shares of restricted stock. Diluted earnings per share is computed by dividing net income by diluted WASO. Diluted WASO includes the effect of potentially dilutive securities, such as unvested shares of restricted stock using the treasury stock method, except where the effect of including potential common shares would be anti-dilutive. The following table provides information on potentially dilutive securities (in thousands): 2024 2023 Three Months Ended June 30, Common stock equivalents 190 270 Anti-dilutive common stock equivalents 7 201 Six Months Ended June 30, Common stock equivalents 192 240 Anti-dilutive common stock equivalents 4 235

Reportable Segments

Reportable Segments	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Reportable Segments	Note B - Reportable Segments The following table provides information on the operations of our segments (in thousands): Technology FA Total Three Months Ended June 30, 2024 Revenue $ 327,874 $ 28,444 $ 356,318 Gross profit $ 87,897 $ 11,076 $ 98,973 Operating and other expenses $ 79,777 Income from operations, before income taxes $ 19,196 2023 Revenue $ 352,025 $ 37,165 $ 389,190 Gross profit $ 95,485 $ 14,781 $ 110,266 Operating and other expenses $ 84,646 Income from operations, before income taxes $ 25,620 Six Months Ended June 30, 2024 Revenue $ 649,958 $ 58,249 $ 708,207 Gross profit $ 171,934 $ 22,289 $ 194,223 Operating and other expenses $ 159,956 Income from operations, before income taxes $ 34,267 2023 Revenue $ 716,869 $ 78,318 $ 795,187 Gross profit $ 193,896 $ 30,346 $ 224,242 Operating and other expenses $ 176,264 Income from operations, before income taxes $ 47,978

Disaggregation of Revenue

Disaggregation of Revenue	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Note C - Disaggregation of Revenue The following table provides the disaggregation of revenue by segment and type (in thousands): Technology FA Total Three Months Ended June 30, 2024 Flex revenue $ 324,064 $ 24,720 $ 348,784 Direct Hire revenue 3,810 3,724 7,534 Total Revenue $ 327,874 $ 28,444 $ 356,318 2023 Flex revenue $ 346,326 $ 32,144 $ 378,470 Direct Hire revenue 5,699 5,021 10,720 Total Revenue $ 352,025 $ 37,165 $ 389,190 Six Months Ended June 30, 2024 Flex revenue $ 642,578 $ 50,930 $ 693,508 Direct Hire revenue 7,380 7,319 14,699 Total Revenue $ 649,958 $ 58,249 $ 708,207 2023 Flex revenue $ 705,850 $ 68,152 $ 774,002 Direct Hire revenue 11,019 10,166 21,185 Total Revenue $ 716,869 $ 78,318 $ 795,187

Allowance for Credit Losses

Allowance for Credit Losses	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Allowance for Credit Losses	Note D - Allowance for Credit Losses The following table presents the activity within the allowance for credit losses on trade receivables for the six months ended June 30, 2024 (in thousands): Allowance for credit losses, January 1, 2024 $ 1,106 Current period provision (17) Write-offs charged against the allowance, net of recoveries of amounts previously written off (105) Allowance for credit losses, June 30, 2024 $ 984 The allowances on trade receivables presented in the Unaudited Condensed Consolidated Balance Sheets include $0.7 million and $0.5 million at June 30, 2024 and December 31, 2023, respectively, for reserves unrelated to credit losses.

Other Assets, Net

Other Assets, Net	6 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets, Net	Note E - Other Assets, Net Other assets, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Assets held in Rabbi Trust $ 45,803 $ 40,389 Capitalized software, net (1) 22,468 16,434 ROU assets for operating leases, net 14,323 14,368 Deferred loan costs, net 539 658 Other non-current assets 2,253 4,075 Total Other assets, net $ 85,386 $ 75,924 (1) Accumulated amortization of capitalized software was $40.3 million and $37.6 million as of June 30, 2024 and December 31, 2023, respectively.

Current Liabilities

Current Liabilities	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Current Liabilities	Note F - Current Liabilities The following table provides information on certain current liabilities (in thousands): June 30, 2024 December 31, 2023 Accounts payable $ 42,392 $ 42,842 Deferred compensation payable 6,962 5,927 Accrued liabilities 5,047 8,699 Customer rebates payable 3,958 7,327 Total Accounts payable and other accrued liabilities $ 58,359 $ 64,795 Payroll and benefits $ 33,276 $ 28,110 Health insurance liabilities 3,576 3,727 Payroll taxes 2,134 1,705 Workers’ compensation liabilities 603 426 Total Accrued payroll costs $ 39,589 $ 33,968

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Credit Facility	Note G - Credit Facility On October 20, 2021, the Firm entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, Wells Fargo Securities, LLC, as lead arranger and bookrunner, Bank of America, N.A., as syndication agent, BMO Harris Bank, N.A., as documentation agent, and the lenders referred to therein (the “Amended and Restated Credit Facility”). Under the Amended and Restated Credit Facility, the Firm has a maximum borrowing capacity of $200.0 million, which may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million. The maturity date of the Amended and Restated Credit Facility is October 20, 2026.

Other Long-Term Liabilities

Other Long-Term Liabilities	6 Months Ended
	Jun. 30, 2024
Other Liabilities Disclosure [Abstract]
Other Long-Term Liabilities	Note H - Other Long-Term Liabilities Other long-term liabilities consisted of the following (in thousands): June 30, 2024 December 31, 2023 Deferred compensation payable - long term $ 44,325 $ 42,025 Operating lease liabilities 12,190 12,275 Other long-term liabilities 19 24 Total Other long-term liabilities $ 56,534 $ 54,324

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Note I - Stock-Based Compensation The following table presents the restricted stock activity for the six months ended June 30, 2024 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2023 798 $ 60.80 Granted 32 $ 63.06 Forfeited (16) $ 52.94 Vested (39) $ 43.76 $ 2,559 Outstanding at June 30, 2024 775 $ 61.92 As of June 30, 2024, total unrecognized stock-based compensation expense related to restricted stock was $35.8 million, which is expected to be recognized over a weighted-average remaining period of 4.0 years. During the three and six months ended June 30, 2024, stock-based compensation expense was $3.5 million and $7.0 million, respectively. During the three and six months ended June 30, 2023, stock-based compensation expense was $4.3 million and $8.6 million, respectively. Stock-based compensation is included in Selling, general and administrative expenses (“SG&A”) in the Unaudited Condensed Consolidated Statements of Operations.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note J - Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for certain post-employment benefits under certain circumstances. At June 30, 2024, our liability would be approximately $30.4 million if, following a change in control, all of the executives under contract were terminated without cause by the employer or if the executives resigned for good reason, and $11.5 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without cause or if the executives resigned for good reason. Litigation We are involved in legal proceedings, claims and administrative matters that arise in the ordinary course of business, and we have made accruals with respect to certain of these matters, where appropriate, that are reflected in our unaudited condensed consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable, or the amount of loss cannot be reasonably estimated. The outcome of any litigation is inherently uncertain, but we do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our unaudited condensed consolidated financial statements; however, if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be subject to additional liabilities that could have a material adverse effect on our financial position, results of operations or cash flows. Kforce maintains liability insurance that insures us against workers’ compensation, personal and bodily injury, property damage, directors’ and officers’ liability, errors and omissions, cyber liability, employment practices liability and fidelity losses. There can be no assurance that Kforce’s liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 14,157	$ 10,987	$ 18,574	$ 16,210	$ 25,144	$ 34,784

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet as of December 31, 2023, was derived from our audited Consolidated Balance Sheet as of December 31, 2023, as presented in our 2023 Annual Report on Form 10-K.
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most critical of these estimates and assumptions relate to the following: allowance for credit losses; income taxes; self-insured liabilities for health insurance; and the impairment of goodwill. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates. Therefore, our accounting estimates and assumptions may change materially in future periods.
Earnings per Share	Earnings per Share

Accounting Policies (Tables)

Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of potentially dilutive securities	The following table provides information on potentially dilutive securities (in thousands): 2024 2023 Three Months Ended June 30, Common stock equivalents 190 270 Anti-dilutive common stock equivalents 7 201 Six Months Ended June 30, Common stock equivalents 192 240 Anti-dilutive common stock equivalents 4 235

Reportable Segments (Tables)

Reportable Segments (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Operations of Reportable Segments	The following table provides information on the operations of our segments (in thousands): Technology FA Total Three Months Ended June 30, 2024 Revenue $ 327,874 $ 28,444 $ 356,318 Gross profit $ 87,897 $ 11,076 $ 98,973 Operating and other expenses $ 79,777 Income from operations, before income taxes $ 19,196 2023 Revenue $ 352,025 $ 37,165 $ 389,190 Gross profit $ 95,485 $ 14,781 $ 110,266 Operating and other expenses $ 84,646 Income from operations, before income taxes $ 25,620 Six Months Ended June 30, 2024 Revenue $ 649,958 $ 58,249 $ 708,207 Gross profit $ 171,934 $ 22,289 $ 194,223 Operating and other expenses $ 159,956 Income from operations, before income taxes $ 34,267 2023 Revenue $ 716,869 $ 78,318 $ 795,187 Gross profit $ 193,896 $ 30,346 $ 224,242 Operating and other expenses $ 176,264 Income from operations, before income taxes $ 47,978

Disaggregation of Revenue (Tabl

Disaggregation of Revenue (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenues	The following table provides the disaggregation of revenue by segment and type (in thousands): Technology FA Total Three Months Ended June 30, 2024 Flex revenue $ 324,064 $ 24,720 $ 348,784 Direct Hire revenue 3,810 3,724 7,534 Total Revenue $ 327,874 $ 28,444 $ 356,318 2023 Flex revenue $ 346,326 $ 32,144 $ 378,470 Direct Hire revenue 5,699 5,021 10,720 Total Revenue $ 352,025 $ 37,165 $ 389,190 Six Months Ended June 30, 2024 Flex revenue $ 642,578 $ 50,930 $ 693,508 Direct Hire revenue 7,380 7,319 14,699 Total Revenue $ 649,958 $ 58,249 $ 708,207 2023 Flex revenue $ 705,850 $ 68,152 $ 774,002 Direct Hire revenue 11,019 10,166 21,185 Total Revenue $ 716,869 $ 78,318 $ 795,187

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Allowance for Credit Losses	The following table presents the activity within the allowance for credit losses on trade receivables for the six months ended June 30, 2024 (in thousands): Allowance for credit losses, January 1, 2024 $ 1,106 Current period provision (17) Write-offs charged against the allowance, net of recoveries of amounts previously written off (105) Allowance for credit losses, June 30, 2024 $ 984

Other Assets, Net (Tables)

Other Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets, Net	Other assets, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Assets held in Rabbi Trust $ 45,803 $ 40,389 Capitalized software, net (1) 22,468 16,434 ROU assets for operating leases, net 14,323 14,368 Deferred loan costs, net 539 658 Other non-current assets 2,253 4,075 Total Other assets, net $ 85,386 $ 75,924 (1) Accumulated amortization of capitalized software was $40.3 million and $37.6 million as of June 30, 2024 and December 31, 2023, respectively.

Current Liabilities (Tables)

Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table provides information on certain current liabilities (in thousands): June 30, 2024 December 31, 2023 Accounts payable $ 42,392 $ 42,842 Deferred compensation payable 6,962 5,927 Accrued liabilities 5,047 8,699 Customer rebates payable 3,958 7,327 Total Accounts payable and other accrued liabilities $ 58,359 $ 64,795 Payroll and benefits $ 33,276 $ 28,110 Health insurance liabilities 3,576 3,727 Payroll taxes 2,134 1,705 Workers’ compensation liabilities 603 426 Total Accrued payroll costs $ 39,589 $ 33,968

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Other Liabilities Disclosure [Abstract]
Schedule of Other Long-Term Liabilities	Other long-term liabilities consisted of the following (in thousands): June 30, 2024 December 31, 2023 Deferred compensation payable - long term $ 44,325 $ 42,025 Operating lease liabilities 12,190 12,275 Other long-term liabilities 19 24 Total Other long-term liabilities $ 56,534 $ 54,324

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Stock Activity	The following table presents the restricted stock activity for the six months ended June 30, 2024 (in thousands, except per share amounts): Number of Weighted-Average Total Intrinsic Outstanding at December 31, 2023 798 $ 60.80 Granted 32 $ 63.06 Forfeited (16) $ 52.94 Vested (39) $ 43.76 $ 2,559 Outstanding at June 30, 2024 775 $ 61.92

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Common stock equivalents (in shares)	190	270	192	240
Anti-dilutive common stock equivalents (in shares)	7	201	4	235

Reportable Segments - Schedule

Reportable Segments - Schedule of Operations of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 356,318	$ 389,190	$ 708,207	$ 795,187
Gross profit	98,973	110,266	194,223	224,242
Operating and other expenses	79,777	84,646	159,956	176,264
Income from operations, before income taxes	19,196	25,620	34,267	47,978
Technology
Segment Reporting Information [Line Items]
Revenue	327,874	352,025	649,958	716,869
Gross profit	87,897	95,485	171,934	193,896
FA
Segment Reporting Information [Line Items]
Revenue	28,444	37,165	58,249	78,318
Gross profit	$ 11,076	$ 14,781	$ 22,289	$ 30,346

Disaggregation of Revenue - Sch

Disaggregation of Revenue - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total Revenue	$ 356,318	$ 389,190	$ 708,207	$ 795,187
Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	348,784	378,470	693,508	774,002
Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	7,534	10,720	14,699	21,185
Technology
Disaggregation of Revenue [Line Items]
Total Revenue	327,874	352,025	649,958	716,869
Technology | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	324,064	346,326	642,578	705,850
Technology | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	3,810	5,699	7,380	11,019
FA
Disaggregation of Revenue [Line Items]
Total Revenue	28,444	37,165	58,249	78,318
FA | Flex revenue
Disaggregation of Revenue [Line Items]
Total Revenue	24,720	32,144	50,930	68,152
FA | Direct Hire revenue
Disaggregation of Revenue [Line Items]
Total Revenue	$ 3,724	$ 5,021	$ 7,319	$ 10,166

Allowance for Credit Losses - S

Allowance for Credit Losses - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 1,106
Current period provision	(17)	$ 454
Write-offs charged against the allowance, net of recoveries of amounts previously written off	(105)
Allowance for credit losses, ending balance	$ 984

Allowance for Credit Losses - N

Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Credit Loss [Abstract]
Amount unrelated to trade receivables included in allowance	$ 0.7	$ 0.5

Other Assets, Net - Schedule of

Other Assets, Net - Schedule of Other Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Assets held in Rabbi Trust	$ 45,803	$ 40,389
ROU assets for operating leases, net	$ 14,323	$ 14,368
Operating lease, right-of-use assets, financial statement location	Total Other assets, net	Total Other assets, net
Capitalized software, net	$ 22,468	$ 16,434
Deferred loan costs, net	539	658
Other non-current assets	2,253	4,075
Total Other assets, net	85,386	75,924
Accumulated amortization of capitalized software	$ 40,300	$ 37,600

Current Liabilities - Schedule

Current Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts Payable, Current [Abstract]
Accounts payable	$ 42,392	$ 42,842
Current deferred compensation liability	6,962	5,927
Accrued liabilities	5,047	8,699
Accrued Rebate Liability, Current	3,958	7,327
Total Accounts payable and other accrued liabilities	58,359	64,795
Employee-related Liabilities, Current [Abstract]
Health insurance liabilities	3,576	3,727
Payroll taxes	2,134	1,705
Workers’ compensation liabilities	603	426
Payroll and benefits	33,276	28,110
Total Accrued payroll costs	$ 39,589	$ 33,968

Credit Facility (Details)

Credit Facility (Details) - Revolving Credit Facility - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Oct. 20, 2021
Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term debt – credit facility	$ 36,700,000	$ 41,600,000
Credit Facility
Line of Credit Facility [Line Items]
Initial maximum borrowing capacity			$ 200,000,000
Accordion feature, increase limit			$ 150,000,000

Other Long-Term Liabilities - S

Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Deferred compensation payable - long term	$ 44,325	$ 42,025
Operating lease liabilities	$ 12,190	$ 12,275
Operating lease liabilities, financial statement location	Total Other long-term liabilities	Total Other long-term liabilities
Other long-term liabilities	$ 19	$ 24
Total Other long-term liabilities	$ 56,534	$ 54,324

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3.5	$ 4.3	$ 7	$ 8.6
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expenses	$ 35.8		$ 35.8
Weighted average period expected to be recognized			4 years

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Restricted Stock Activity (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Number of  Restricted Stock
Outstanding, at beginning of period (in shares) | shares	798
Granted (in shares) | shares	32
Forfeited (in shares) | shares	(16)
Vested (in shares) | shares	(39)
Outstanding, at end of period (in shares) | shares	775
Weighted-Average Grant Date Fair Value
Outstanding, as of beginning of period (in dollars per share) | $ / shares	$ 60.80
Granted (in dollars per share) | $ / shares	63.06
Forfeited (in dollars per share) | $ / shares	52.94
Vested (in dollars per share) | $ / shares	43.76
Outstanding, as of end of period (in dollars per share) | $ / shares	$ 61.92
Total Intrinsic Value of Restricted Stock Vested
Vested | $	$ 2,559

Derivative Instrument and Hedgi

Derivative Instrument and Hedging Activity - Schedule of Activity in the Accumulated Derivative Instrument Gain (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning of period	$ 164,505	$ 159,080	$ 187,618	$ 185,725	$ 182,198
End of period	$ 166,620	$ 164,505	$ 159,080	$ 187,618	$ 185,725

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Employees under contract terminated by employer without good cause or in absence of change in control	$ 30.4
Employees under contract terminated by employer without good cause or change in control	$ 11.5