Kforce Inc. reported a decline in revenue for the third quarter and the first nine months of 2024, reflecting ongoing macroeconomic challenges. For the three months ended September 30, 2024, total revenue was $353.3 million, a decrease of 5.3% from $373.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenue fell 9.1% to $1.06 billion from $1.17 billion in the prior year. The Technology segment experienced a 3.8% decline in revenue for the quarter and a 7.6% decrease for the nine-month period, while the Finance and Accounting (FA) segment saw a more significant drop of 20.2% and 23.9%, respectively.
Gross profit for the third quarter of 2024 was $98.6 million, down from $103.5 million in the prior year, while gross profit for the nine months decreased to $292.8 million from $327.7 million. The gross profit margin for the nine months ended September 30, 2024, decreased by 40 basis points to 27.6%. Despite these challenges, Kforce reported an increase in income from operations for the third quarter, rising to $18.7 million from $16.0 million in 2023. However, for the nine months, income from operations fell to $54.1 million from $65.4 million.
Net income for the third quarter of 2024 was $14.2 million, compared to $10.6 million in the same period of 2023, marking a significant improvement. However, net income for the nine months decreased to $39.4 million from $45.4 million year-over-year. Earnings per share (EPS) for the third quarter increased to $0.76 from $0.55, while for the nine months, EPS decreased to $2.08 from $2.31.
Kforce's cash and cash equivalents increased to $127.0 million as of September 30, 2024, from $119.0 million at the end of 2023. The company reported total current assets of $239.9 million, down from $244.5 million, and total assets increased to $369.9 million from $358.0 million. Total current liabilities rose to $116.5 million from $103.0 million.
In terms of strategic developments, Kforce is focusing on transforming its back-office capabilities and integrating project solutions. A new development center is being established in Pune, India, expected to support U.S.-based clients starting January 2025. The company also repurchased approximately 324,000 shares of common stock for $20.3 million during the nine months ended September 30, 2024, with $79.7 million remaining under its stock repurchase authorization.
About KFORCE INC
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