KFORCE INC, 10-K filed on 2/21/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 14, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 996,072,710
Entity Common Stock, Shares Outstanding   19,111,000  
Documents Incorporated by Reference
DocumentParts Into Which
Incorporated
Portions of the Proxy Statement for the Annual Meeting of Shareholders scheduled to be held on April 23, 2025 (“Proxy Statement”)
Part III
    
Amendment Flag false    
Entity Central Index Key 0000930420    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Document Financial Statement Error Correction [Flag] false    
v3.25.0.1
Audit Information
 12 Months Ended
Dec. 31, 2024
Auditor [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location Tampa, Florida
Auditor Firm ID 34
v3.25.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Revenue $ 1,405,308 $ 1,531,756 $ 1,710,765
Direct costs 1,019,863 1,104,690 1,209,658
Gross profit 385,445 427,066 501,107
Selling, general and administrative expenses 309,802 334,933 379,815
Depreciation and amortization 5,922 5,012 4,427
Income from operations 69,721 87,121 116,865
Other expense, net 2,097 1,871 14,423
Income from operations, before income taxes 67,624 85,250 102,442
Income tax expense 17,210 24,175 27,011
Net income 50,414 61,075 75,431
Other comprehensive loss:      
Comprehensive income $ 50,414 $ 61,075 $ 74,816
Weighted average shares outstanding - basic (in shares) 18,574 19,188 20,054
Weighted average shares outstanding – diluted (in shares) 18,811 19,507 20,503
Earnings per share – basic (in dollars per share) $ 2.71 $ 3.18 $ 3.76
Diluted (in dollars per share) $ 2.68 $ 3.13 $ 3.68
v3.25.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 349 $ 119
Prepaid expenses and other current assets 9,367 10,912
Total current assets 225,406 244,459
Fixed assets, net 7,723 9,418
Other assets, net 94,656 75,924
Deferred tax assets, net 5,009 3,138
Goodwill 25,040 25,040
Total assets 357,834 357,979
Current liabilities:    
Accounts payable and other accrued liabilities 61,753 64,795
Accrued payroll costs 38,823 33,968
Current portion of operating lease liabilities 3,038 3,589
Income taxes payable 8,843 623
Total current liabilities 112,457 102,975
Long-term debt – credit facility 32,700 41,600
Other long-term liabilities 58,059 54,324
Total liabilities 203,216 198,899
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.01 par value; 15,000 shares authorized, none issued and outstanding 0 0
Common stock, $0.01 par value; 250,000 shares authorized, 73,835 and 73,462 issued, respectively 738 734
Additional paid-in capital 543,109 527,288
Retained earnings 546,202 525,222
Treasury stock, at cost; 54,619 and 53,941 shares, respectively (935,431) (894,164)
Total stockholders’ equity 154,618 159,080
Total liabilities and stockholders’ equity $ 357,834 $ 357,979
v3.25.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Trade receivables, allowances $ 1,560 $ 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, shares authorized (in shares) 250,000,000 250,000,000
Common stock, shares issued (in shares) 73,835,000 73,462,000
Treasury Stock (in shares) 54,619,000 53,941,000
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Trade receivables, net of allowances of $1,560 and $1,643, respectively $ 215,690 $ 233,428
Assets, Current 225,406 244,459
Long-term debt – credit facility $ 32,700 $ 41,600
v3.25.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Treasury Stock (in shares)           51,492
Shares at beginning of year (in shares) at Dec. 31, 2021   72,997        
Beginning of period at Dec. 31, 2021 $ 188,406 $ 730 $ 488,036 $ 621 $ 442,596 $ (743,577)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares)   245        
Employee stock purchase plan (in shares) (17)         (17)
Dividends $ (24,027)       (24,027)  
Change in fair value of interest rate swaps, net of tax (615)     (615)    
Repurchases of common stock (in shares)           1,269
Shares at end of year (in shares) at Dec. 31, 2022   73,242        
End of period at Dec. 31, 2022 182,198 $ 732 507,734 6 492,764 $ (819,038)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 75,431       75,431  
Employee stock purchase plan 1,054   809     245
Treasury Stock, Value, Acquired, Cost Method (75,706)         $ (75,706)
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture 0 $ 2 1,234   (1,236)  
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition $ 17,655   17,655      
Treasury Stock (in shares)           52,744
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares)   220        
Employee stock purchase plan (in shares) (18)         (18)
Dividends $ (27,562)       (27,562)  
Change in fair value of interest rate swaps, net of tax 0          
Repurchases of common stock (in shares)           1,215
Stockholders' Equity, Other (6)     (6)    
Shares at end of year (in shares) at Dec. 31, 2023   73,462        
End of period at Dec. 31, 2023 159,080 $ 734 527,288 0 525,222 $ (894,164)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 61,075       61,075  
Employee stock purchase plan 1,042   754     288
Treasury Stock, Value, Acquired, Cost Method (75,414)         $ (75,414)
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture 0 $ 2 1,053   (1,055)  
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition $ 17,747   17,747      
Common stock, shares issued (in shares) 73,462          
Treasury Stock (in shares) 53,941         53,941
Issuance for stock-based compensation and dividend equivalents, net of forfeitures (in shares)   373        
Employee stock purchase plan (in shares) (13)         (13)
Dividends $ (28,236)       (28,236)  
Change in fair value of interest rate swaps, net of tax 0          
Repurchases of common stock (in shares)           691
Shares at end of year (in shares) at Dec. 31, 2024   73,835        
End of period at Dec. 31, 2024 154,618 $ 738 543,109 $ 0 546,202 $ (935,431)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 50,414       50,414  
Employee stock purchase plan 798   583     215
Treasury Stock, Value, Acquired, Cost Method (41,482)         $ (41,482)
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture 0 $ 4 1,194   $ (1,198)  
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition $ 14,044   $ 14,044      
Common stock, shares issued (in shares) 73,835          
Treasury Stock (in shares) 54,619         54,619
v3.25.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dividends declared per share (in dollars per share) $ 1.52 $ 1.44 $ 1.20
Accumulated Other Comprehensive Income (Loss)      
Interest rate swap, tax expense (benefit)     $ 209
v3.25.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income $ 50,414 $ 61,075 $ 75,431
Adjustments to reconcile net income to cash provided by operating activities:      
Reserve related to note receivable 0 0 1,925
Impairment of equity method investment 0 0 13,684
Deferred income tax provision, net (1,871) 1,647 3,081
Provision for credit losses 100 768 (126)
Depreciation and amortization 5,922 5,012 4,427
Stock-based compensation expense 14,044 17,747 17,655
Noncash lease expense 3,683 4,065 5,683
Loss on equity method investment 0 750 3,824
Other (395) 724 141
(Increase) decrease in operating assets      
Trade receivables, net 17,638 35,301 (4,049)
Increase (Decrease) in Other Operating Assets (8,789) (1,304) (9,199)
Increase (decrease) in operating liabilities      
Accrued payroll costs 5,653 (13,358) (22,003)
Payment of benefit under terminated pension plan 0 0 (19,965)
Other liabilities 475 (20,962) 20,296
Cash provided by operating activities 86,874 91,465 90,805
Cash flows from investing activities:      
Capital expenditures (7,573) (7,763) (8,109)
Premiums paid for company-owned life insurance 2,377 0 1,077
Proceeds from Divestiture of Interest in Joint Venture 0 5,059 0
Payments for (Proceeds from) Life Insurance Policies (2,368) (1,408) 0
Equity method investment 0 0 (500)
Note receivable issued to our joint venture 0 (750) (6,750)
Cash used in investing activities (7,564) (4,862) (14,282)
Cash flows from financing activities:      
Proceeds from credit facility 301,000 594,400 38,200
Payments on credit facility (309,900) (578,400) (112,600)
Repurchases of common stock (41,938) (75,024) (74,913)
Cash dividends (28,236) (27,562) (24,027)
Proceeds from (Payments for) Other Financing Activities (6) (19) (51)
Cash used in financing activities (79,080) (86,605) (173,391)
Change in cash and cash equivalents 230 (2) (96,868)
Cash and cash equivalents at beginning of year 119 121 96,989
Cash and cash equivalents at end of year 349 119 121
Cash paid during the year for:      
Operating lease liabilities 4,733 5,232 6,992
Interest, net 1,989 897 885
Non-Cash Financing and Investing Transactions:      
ROU assets obtained from operating leases 3,078 4,378 9,997
Unsettled repurchases of common stock 260 920 974
Employee stock purchase plan 798 1,042 1,054
Income Taxes Paid, Net $ 9,777 $ 28,616 $ 16,579
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies 1. Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). Certain prior year amounts have been reclassified to conform with the current period presentation.
Principles of Consolidation
The 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: income taxes 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.
Revenue Recognition
All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations.
Revenue is recognized when the control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities.
For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular assignments and engagements and establishing the bill and pay rates; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed.
Our integrated approach deploys highly skilled professionals on a temporary (“Flex”) and permanent (“Direct Hire”) basis.
Flex Revenue
Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer and satisfied over time.
Direct Hire Revenue
Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Because the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client.
Variable Consideration
Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period.
Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends.
Payment Terms
Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components.
Unsatisfied Performance Obligations
We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed.
Contract Balances
We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2024 and 2023.
We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2024 and 2023.
Direct Costs
Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income.
Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs.
Commissions
Our associates place consultants on assignments and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year.
Stock-Based Compensation Expense
Stock-based compensation expense is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income.
Income Taxes
Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes.
Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. There were no significant uncertain income tax positions for the year ended December 31, 2024 and 2023.
Cash and Cash Equivalents
All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments.
Trade Receivables and Related Reserves
Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined using the application of a current expected credit loss model, which measures expected credit losses based on relevant information, including historical experience, current conditions and reasonable and supportable forecasts.
We estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted.
Trade accounts receivable reserves as a percentage of gross trade receivables was less than 1% at both December 31, 2024 and 2023. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the year ended December 31, 2024 and 2023.
Fixed Assets
Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows.
Goodwill
Management has determined that the reporting units for the goodwill analysis is consistent with our reportable segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually on October 1, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (the “market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements.
Equity Method Investment and Note Receivable
In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses.
During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income.
On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the promissory notes (the “Note Receivable”) that were executed to our joint venture for a total of $4.8 million at December 31, 2022. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows.
Operating Leases
Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is estimated using our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.
ROU assets for operating leases, net of amortization, are recorded within Other assets, net and operating lease liabilities are recorded within current liabilities if expected to be recognized in less than one year and in Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. Operating lease additions are non-cash transactions and the amortization of the ROU assets is reflected as Noncash lease expense within operating activities in the Consolidated Statement of Cash Flows.
Our lease terms range from two to eleven years with a limited number of leases containing short-term renewal provisions that range from month-to-month to one year and some containing options to renew or terminate.
We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases.
In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred.
Capitalized Software
Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure.
Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one to sixteen years. Amortization expense of capitalized software during the years ended December 31, 2024, 2023 and 2022 was $2.7 million, $1.9 million and $1.8 million, respectively.
Kforce also enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Certain implementation costs of cloud computing arrangements during the development stage are capitalized, which is consistent with the capitalization criteria used for internal use software. Capitalized costs are included in Other assets, net in the accompanying Consolidated Balance Sheets and within operating activities on the Consolidated Statement of Cash Flows. Capitalized cloud computing arrangement implementation costs are amortized using the straight-line method over the remaining term of the contract.
Health Insurance
Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan both on a participant and aggregate basis. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure, including the extent of outstanding claims and expected changes in health insurance costs.
Legal Costs
Legal costs incurred in connection with loss contingencies are expensed as incurred.
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 for the years ended December 31:
(shares in thousands)202420232022
Common stock equivalents237 319 449 
Anti-dilutive shares
209 157 292 
Treasury Stock
The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements.
Derivative Instrument
The Firm, from time to time, enters into forward starting interest rate swaps. The Firm evaluates the designation of the derivative instrument. Cash flow hedges would be recorded at fair value on the Consolidated Balance Sheets, and the changes in the fair value would be recorded as a component of Accumulated other comprehensive income/loss in the consolidated financial statements. Cash flows from these derivative instruments were classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. The Firm did not have any outstanding interest rate swap derivative instruments as of December 31, 2024 and 2023.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability.
•Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities.
•Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability.
Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments.
Rabbi trust assets are primarily comprised of marketable equity securities and the fair values are based on unadjusted, quoted prices in active markets, which are considered Level 1.
Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired.
New Accounting Standards
Recently Adopted Accounting Standards
In November 2023, the FASB issued guidance intended to improve reportable segment disclosure requirements through enhancements for significant segment expenses. These amendments clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This guidance was effective for Kforce on January 1, 2024, and the presentation and disclosure requirements were applied retrospectively to our annual disclosures for the year ended December 31, 2024 and will apply to the interim disclosures beginning January 1, 2025. This new guidance will enhance our disclosures, but did not have a material effect on our consolidated financial statements.
Accounting Standards Not Yet Adopted
In October 2023, the FASB issued guidance for disclosure improvements in accordance with the SEC’s simplification initiative. These amendments are intended to align FASB’s accounting standards and eliminate disclosures that are “redundant, duplicative, overlapping, outdated, or superseded.” The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
In December 2023, the FASB issued guidance for disclosure improvements for income taxes. These amendments require the disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption of this guidance is permitted for annual financial statements that have not yet been issued, with prospective application required. We are adopting this standard effective January 1, 2025. This new guidance will enhance our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
In November 2024, the FASB issued guidance for disclosure improvements related to the disaggregation of income statement expenses. These amendments require the disaggregation of certain income statement expense captions in a tabular format within the footnotes of the financial statements. This guidance is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods. Early adoption of this guidance is permitted and can be applied prospectively or retrospectively. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
v3.25.0.1
Reportable Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Reportable Segments
2. Reportable Segments
Kforce’s two reportable segments are Technology and 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)
TechnologyFATotal
2024
Revenue $1,292,743 $112,565 $1,405,308 
Direct costs950,589 69,274 1,019,863 
Gross profit$342,154 $43,291 $385,445 
Less:
Selling, general and administrative expenses309,802 
Depreciation and amortization5,922 
Other expense, net2,097 
Income from operations, before income taxes$67,624 
2023
Revenue $1,384,553 $147,203 $1,531,756 
Direct costs1,015,157 89,533 1,104,690 
Gross profit$369,396 $57,670 $427,066 
Less:
Selling, general and administrative expenses334,933 
Depreciation and amortization5,012 
Other expense, net1,871 
Income from operations, before income taxes$85,250 
2022
Revenue$1,507,627 $203,138 $1,710,765 
Direct costs1,085,705 123,953 1,209,658 
Gross profit$421,922 $79,185 $501,107 
Less:
Selling, general and administrative expenses379,815 
Depreciation and amortization4,427 
Other expense, net14,423 
Income from operations, before income taxes$102,442 
v3.25.0.1
Disaggregation of Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
3. Disaggregation of Revenue
The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31:
(in thousands)
TechnologyFATotal
2024
Flex revenue$1,278,715 $97,729 $1,376,444 
Direct Hire revenue14,028 14,836 28,864 
Total Revenue$1,292,743 $112,565 $1,405,308 
2023
Flex revenue$1,366,095 $127,679 $1,493,774 
Direct Hire revenue18,458 19,524 37,982 
Total Revenue$1,384,553 $147,203 $1,531,756 
2022
Flex revenue$1,476,055 $176,395 $1,652,450 
Direct Hire revenue31,572 26,743 58,315 
Total Revenue$1,507,627 $203,138 $1,710,765 
v3.25.0.1
Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
Allowance for Credit Losses
4. Allowance for Credit Losses
The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2024 and 2023:
(in thousands)
Allowance for credit losses, January 1, 2023
$1,006 
Current period provision768 
Write-offs charged against the allowance, net of recoveries of amounts previously written off(668)
Allowance for credit losses, December 31, 2023
1,106 
Current period provision100 
Write-offs charged against the allowance, net of recoveries of amounts previously written off(290)
Allowance for credit losses, December 31, 2024$916 
The allowances on trade receivables presented in the Consolidated Balance Sheets include $0.6 million and $0.5 million for reserves unrelated to credit losses at December 31, 2024 and 2023, respectively.
v3.25.0.1
Fixed Assets, Net
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Fixed Assets, Net
5. Fixed Assets, Net
The following table presents major classifications of fixed assets and related useful lives:
  DECEMBER 31,
(in thousands, except useful lives)USEFUL LIFE20242023
Furniture and equipment
2-10 years
$5,166 $4,971 
Computer equipment
1-10 years
6,082 6,216 
Leasehold improvements
1-10 years
7,395 7,672 
Total fixed assets18,643 18,859 
Less accumulated depreciation (10,920)(9,441)
Total Fixed assets, net$7,723 $9,418 
Depreciation expense was $3.2 million, $3.1 million and $2.7 million during the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
7. Income Taxes
The provision for income taxes consists of the following:
 YEARS ENDED DECEMBER 31,
(in thousands)202420232022
Current tax expense:
Federal$14,067 $16,530 $17,535 
State5,014 5,998 6,400 
Deferred tax expense(1,871)1,647 3,076 
Total Income tax expense$17,210 $24,175 $27,011 
The provision for income taxes shown above varied from the statutory federal income tax rate as follows:
 YEARS ENDED DECEMBER 31,
 202420232022
Federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of Federal tax effect5.6 6.0 5.4 
Non-deductible compensation and meals and entertainment1.8 2.3 2.5 
Tax credits(1.5)(0.8)(1.2)
Tax benefit from restricted stock vesting(0.3)(0.8)(1.0)
Other(1.2)0.7 (0.3)
Effective tax rate25.4 %28.4 %26.4 %
The 2024 effective tax rate was favorably impacted by a reduction in nondeductible executive compensation, non-taxable proceeds from company-owned life insurance, and the recognition of research and development tax credits, as compared to 2023. The 2023 effective rate was unfavorably impacted by a lower Work Opportunity Tax Credit, a lower tax benefit from the vesting of restricted stock and higher non-deductible expenses, as compared to 2022.
Deferred tax assets and liabilities are composed of the following:
 DECEMBER 31,
(in thousands)20242023
Deferred tax assets:
Deferred compensation obligation$6,549 $6,616 
Operating lease liabilities3,923 4,071 
Research and development2,027 — 
Stock-based compensation1,561 1,475 
Accrued liabilities995 1,345 
Accounts receivable reserves399 382 
Other8 8 
Deferred tax assets15,462 13,897 
Deferred tax liabilities:
Fixed assets(3,700)(4,307)
ROU assets for operating leases(3,512)(3,684)
Goodwill(2,291)(2,401)
Prepaid expenses(513)(367)
Other(437)— 
Deferred tax liabilities(10,453)(10,759)
Valuation allowance— — 
Total Deferred tax assets, net$5,009 $3,138 
In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of temporary differences and projections of future taxable income) during the periods in which the related temporary differences will become deductible.
Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits.
Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2021.
v3.25.0.1
Other Assets, Net
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets, Net
6. Other Assets, Net
Other assets, net consisted of the following:
DECEMBER 31,
(in thousands)20242023
Assets held in Rabbi Trust$49,356 $40,389 
Capitalized software, net (1)29,090 16,434 
ROU assets for operating leases, net13,764 14,368 
Other non-current assets2,446 4,733 
Total Other assets, net$94,656 $75,924 
(1) The increase in Capitalized software, net for the year ended December 31, 2024 relates to our back-office transformation program to enhance our technology capabilities to better support our clients, consultants and candidates. This balance includes $6.3 million related to capitalized implementation costs from cloud computing arrangements as of December 31, 2024. Accumulated amortization of capitalized software was $40.1 million and $37.6 million as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Goodwill
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
8. Goodwill
The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2024, 2023 and 2022:
(in thousands)TechnologyFATotal
Goodwill, gross amount$156,391 $19,766 $176,157 
Accumulated impairment losses(139,357)(11,760)(151,117)
Goodwill, carrying value$17,034 $8,006 $25,040 
There was no impairment expense related to goodwill for each of the years ended December 31, 2024, 2023 and 2022.
Management performed its annual impairment assessment of the carrying value of goodwill as of December 31, 2024 and 2023. For each of our reporting units, we assessed qualitative factors to determine whether the existence of events or circumstances indicated that it was more likely than not that the fair value of the reporting units was less than its carrying amount. Based on the qualitative assessments, management determined that it was more likely than not that the fair values of the reporting units were more than the carrying values at December 31, 2024 and 2023. A deterioration in any of the assumptions could result in an impairment charge in the future.
v3.25.0.1
Current Liabilities
 12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Current Liabilities
9. Current Liabilities
The following table provides information on certain current liabilities:
 DECEMBER 31,
(in thousands)20242023
Accounts payable$38,315 $42,842 
Deferred compensation payable8,602 5,927 
Customer rebates payable6,556 7,327 
Accrued liabilities4,259 8,489 
Accrued professional fees4,021 210 
Total Accounts payable and other accrued liabilities$61,753 $64,795 
Payroll and benefits$32,990 $28,110 
Health insurance liabilities3,593 3,727 
Payroll taxes1,698 1,705 
Workers’ compensation liabilities542 426 
Total Accrued payroll costs$38,823 $33,968 
v3.25.0.1
Other Long-Term Liabilities
 12 Months Ended
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]  
Other Long-Term Liabilities
Other long-term liabilities consisted of the following:
DECEMBER 31,
(in thousands)20242023
Deferred compensation payable - long term$46,183 $42,025 
Operating lease liabilities11,858 12,275 
Other long-term liabilities 18 24 
Total Other long-term liabilities$58,059 $54,324 
v3.25.0.1
Operating Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Operating Leases
10. Operating Leases
The following table presents weighted-average terms for our operating leases:
DECEMBER 31,
20242023
Weighted-average discount rate4.3 %4.0 %
Weighted-average remaining lease term6.0 years6.5 years
The following table presents operating lease expense included in SG&A (in thousands):
DECEMBER 31,
Lease Cost20242023
Operating lease expense$4,344 $4,673 
Short-term lease expense1,265 1,396 
Variable lease costs934 1,093 
Sublease income(28)(189)
Total operating lease expense$6,515 $6,973 
The following table presents the maturities of operating lease liabilities as of December 31, 2024:
(in thousands)
2025$3,617 
20263,049 
20272,662 
20281,989 
20291,384 
Thereafter4,257 
Total maturities of operating lease liabilities16,958 
Less: imputed interest2,062 
Total operating lease liabilities$14,896 
v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans
11. Employee Benefit Plans
401(k) Savings Plans
The Firm maintains a qualified defined contribution 401(k) retirement savings plan for eligible employees. Assets of these plans are held in trust for the sole benefit of employees and/or their beneficiaries. Employer matching contributions are discretionary and are funded annually as approved by the Board. Kforce accrued matching 401(k) contributions of $2.1 million and $1.9 million as of December 31, 2024 and 2023, respectively.
Employee Stock Purchase Plan
Kforce’s employee stock purchase plan allows all eligible employees to enroll each quarter to purchase Kforce’s common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 13 thousand, 18 thousand, and 17 thousand shares of common stock at an average purchase price of $62.00, $57.13 and $63.37 per share during the years ended December 31, 2024, 2023 and 2022, respectively. All shares purchased under the employee stock purchase plan were settled using Kforce’s treasury stock.
Deferred Compensation Plans
The Firm maintains various non-qualified deferred compensation plans, pursuant to which eligible management and highly compensated key employees, as defined by IRS regulations, may elect to defer all or part of their compensation to later years. These amounts are classified upon retirement or termination of employment in Accounts payable and other accrued liabilities if payable within the next year, or in Other long-term liabilities if payable after the next year, in the accompanying Consolidated Balance Sheets. At December 31, 2024 and 2023, amounts related to the deferred compensation plans included in Accounts payable and other accrued liabilities were $8.6 million and $5.9 million, respectively, and $46.2 million and $42.0 million was included in Other long-term liabilities at December 31, 2024 and 2023, respectively, in the Consolidated Balance Sheets. For the years ended December 31, 2024, 2023 and 2022, we recognized compensation expense for the plans of $1.3 million, $1.3 million and $0.5 million, respectively.
Kforce maintains a Rabbi Trust and holds life insurance policies on certain individuals to assist in the funding of the deferred compensation liability. If necessary, employee distributions are funded through proceeds from the sale of assets held within the Rabbi Trust. The balance of the assets held within the Rabbi Trust, including the cash surrender value of the Company-owned life insurance policies, was $49.4 million and $40.4 million as of December 31, 2024 and 2023, respectively, and is recorded in Other assets, net in the accompanying Consolidated Balance Sheets. As of December 31, 2024, the life insurance policies had a net death benefit of $168.0 million.
v3.25.0.1
Credit Facility
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Credit Facility
12. 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 “Commitment”). Borrowings under the credit facility are secured by substantially all of the tangible and intangible assets of the Firm. The maturity date of the Amended and Restated Credit Facility is October 20, 2026.
Revolving credit loans under the Amended and Restated Credit Facility bears interest at a rate equal to (a) the Base Rate (as described below) plus the Applicable Margin (as described below) or (b) the LIBOR Rate plus the Applicable Margin. Swingline loans under the Amended and Restated Credit Facility bears interest at a rate equal to the Base Rate plus the Applicable Margin. The Base Rate is the highest of: (i) the Wells Fargo Bank, National Association prime rate, (ii) the federal funds rate plus 0.50% or (iii) one-month LIBOR plus 1.00%, and the LIBOR Rate is reserve-adjusted LIBOR for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firm’s total leverage ratio. The Applicable Margin for Base Rate loans ranges from 0.125% to 0.500% and the Applicable Margin for LIBOR Rate loans ranges from 1.125% to 1.50%. The Firm pays a quarterly non-refundable commitment fee equal to the Applicable Margin on the average daily unused portion of the Commitment (swingline loans do not constitute usage for this purpose). The Applicable Margin for the commitment fee is based on the Firm’s total leverage ratio and ranges between 0.20% and 0.30%.
The Firm is subject to certain affirmative and negative financial covenants including (but not limited to) the maintenance of a fixed charge coverage ratio of no less than 1.25 to 1.00 and the maintenance of a total leverage ratio of no greater than 3.50 to 1.00. The numerator in the fixed charge coverage ratio is defined pursuant to the Amended and Restated Credit Facility as earnings before interest expense, income taxes, depreciation and amortization, stock-based compensation expense and other permitted items pursuant to our Credit Facility (defined as “Consolidated EBITDA”), less cash paid for capital expenditures, income taxes and dividends. The denominator is defined as Kforce’s fixed charges such as interest expense and principal payments paid or payable on outstanding debt other than borrowings under the Amended and Restated Credit Facility. The total leverage ratio is defined pursuant to the Amended and Restated Credit Facility as total indebtedness divided by Consolidated EBITDA. Our ability to make distributions or repurchases of equity securities could be limited if an event of default has occurred. Furthermore, our ability to repurchase equity securities in excess of $25.0 million over the last four quarters could be limited if (a) the total leverage ratio is greater than 3.00 to 1.00 and (b) the Firm’s availability, inclusive of unrestricted cash, is less than $25.0 million. As of December 31, 2024, we are in compliance with all of our financial covenants contained in the Amended and Restated Credit Facility.
In June 2023, Kforce entered into the First Amendment to the Amended and Restated Credit Facility, by and among Wells Fargo, as administrative agent, and the lenders and financial institutions from time to time party thereto, to replace the LIBOR-based benchmark interest rates with SOFR-based benchmark interest rates.
As of December 31, 2024 and 2023, $32.7 million and $41.6 million was outstanding on the Amended and Restated Credit Facility, respectively. Kforce had $1.0 million and $1.2 million of outstanding letters of credit at December 31, 2024 and 2023, respectively, which pursuant to the Amended and Restated Credit Facility, reduces the availability of the borrowing capacity.
v3.25.0.1
Stock Incentive Plans
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock Incentive Plans
14. Stock-Based Compensation
On April 20, 2023, the Kforce shareholders approved the 2023 Stock Incentive Plan (the “2023 Plan”). The 2023 Plan allows for the issuance of stock options, stock appreciation rights (“SARs”), stock awards (including restricted stock awards (“RSAs”) and restricted stock units (“RSUs”)) and other stock-based awards, such as Performance-Based Awards (collectively referred to as “Restricted Stock”). The aggregate number of shares reserved under the 2023 Plan is approximately 3.2 million. Grants of an option or SARs reduce the reserve by one share, while a Restricted Stock award reduces the reserve by 2.72 shares. The 2023 Plan terminates on April 20, 2033.
During the years ended December 31, 2024, 2023 and 2022, stock-based compensation expense was $14.0 million, $17.7 million and $17.7 million, respectively, and is included in Selling, general and administrative expenses (“SG&A”) in the Consolidated Statements of Operations and Comprehensive Income. The related tax benefit for the years ended December 31, 2024, 2023 and 2022 was $3.8 million, $4.8 million and $3.7 million, respectively.
Restricted Stock
Restricted Stock is granted to directors, executives and management either: for awards related to Kforce’s annual long-term incentive (“LTI”) compensation program, or as part of a compensation package for retention. The LTI award amounts are primarily based on Kforce’s total shareholder return as compared to a predefined peer group. RSAs and RSUs granted during the year ended December 31, 2024 will vest ratably over a period of one to ten years.
RSAs contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional RSAs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. RSUs contain no voting rights, but have the right to forfeitable dividend equivalents in the form of additional RSUs at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. The distribution of shares of common stock for each RSU, pursuant to the terms of the Kforce Inc. Director’s Restricted Stock Unit Deferral Plan, can be deferred to a date later than the vesting date if an appropriate election was made. In the event of such deferral, vested RSUs have the right to dividend equivalents.
During the year ended December 31, 2024, management issued 87 thousand shares of performance-based restricted stock awards ("Performance-Based Awards") to certain leaders within the Firm. These Performance-Based Awards are subject to the achievement of certain financial goals as a condition of vesting (“performance goals”) and will be measured over a 10-year period. The Performance-Based Awards become eligible to vest only if these performance goals are achieved and if the grantee remains continuously employed by us through the vesting date. We assess the probability of achieving the performance goals for each reporting period. Determining whether the performance goals will be achieved involves judgment, and the estimate of compensation cost may be revised periodically based on changes in the probability of achieving the performance goals. Revisions are reflected in the period in which the estimate is changed. If the performance goals are deemed unlikely to be met, no compensation cost is recognized and, to the extent previously recognized, compensation cost is reversed. Performance-Based Awards contain the same voting rights as other common stock as well as the right to forfeitable dividends in the form of additional restricted stock at the same rate as the cash dividend on common stock and containing the same vesting provisions as the underlying award. No stock-based compensation expense related to these Performance-Based Awards was recognized during the year ended December 31, 2024.
The following table presents the Restricted Stock activity for the years ended December 31, 2024:
(in thousands, except per share amounts)Number of 
Restricted Stock		Weighted-Average
Grant Date
Fair Value		Total Intrinsic
Value of Restricted
Stock Vested
Outstanding at December 31, 2023798 $60.80 
Granted396 $57.83 
Forfeited(24)$54.08 
Vested(260)$55.24 $15,106 
Outstanding at December 31, 2024910 $61.28 
The weighted-average grant date fair value of restricted stock granted was $57.83, $64.97 and $55.85 during the years ended December 31, 2024, 2023 and 2022, respectively. The total intrinsic value of restricted stock vested was $15.1 million, $22.5 million and $23.7 million during the years ended December 31, 2024, 2023 and 2022, respectively.
The fair market value of Restricted Stock is determined based on the closing stock price of Kforce’s common stock at the date of grant. RSAs and RSUs are amortized on a straight-line basis over the requisite service period. As of December 31, 2024, total unrecognized stock-based compensation expense related to restricted stock was $43.5 million, which is expected to be recognized over a weighted-average remaining period of 4.5 years
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
15. Commitments and Contingencies
Purchase Commitments
Kforce has various commitments to purchase goods and services in the ordinary course of business. These commitments are primarily related to software and online application licenses and hosting. As of December 31, 2024, these unconditional purchase obligations with an initial or remaining term in excess of one year were approximately $30.7 million and are expected to be paid as follows: $5.6 million in 2025; $8.9 million in 2026, $5.4 million in 2027, $2.3 million in 2028, $2.2 million in 2029, and $6.3 million in 2030 and beyond.
Employment Agreements
Kforce has employment agreements with certain executives that provide for minimum compensation, salary and continuation of certain benefits for a one-year to a three-year period after their employment ends under certain circumstances. Certain of the agreements also provide for a severance payment ranging from one to three times annual salary and one-half to three times average annual bonus if such an agreement is terminated without good cause by Kforce or for good reason by the executive subject to certain post-employment restrictive covenants. At December 31, 2024, our liability would be approximately $27.7 million if, following a change in control, all of the executives under contract were terminated without good cause by the employer or if the executives resigned for good reason and $8.8 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 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 adverse effect on our 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.
v3.25.0.1
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule
 12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule
SCHEDULE II
KFORCE INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
SUPPLEMENTAL SCHEDULE
(IN THOUSANDS)
COLUMN ACOLUMN BCOLUMN CCOLUMN DCOLUMN E
DESCRIPTIONBALANCE AT
BEGINNING OF PERIOD		CHARGED TO
COSTS AND
EXPENSES		CHARGED
TO OTHER
ACCOUNTS		DEDUCTIONSBALANCE AT
END OF
PERIOD
Accounts receivable reserves 2022$2,342 (170)— (597)$1,575 
2023$1,575 736 — (668)$1,643 
2024$1,643 207 — (290)$1,560 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income $ 50,414 $ 61,075 $ 75,431
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 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
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Our Chief Information Security Officer (“CISO”) leads our Information Security and Data Privacy Council, which meets quarterly, or more frequently if necessary, to assess, identify and manage cybersecurity threats, support advocacy programs and advise our Chief Information Officer (“CIO”) and CISO on solutions. The council is made up of key members of senior management across the Firm, including enterprise security, human resources, legal, internal audit, finance, procurement, communications and field management.
Our enterprise security team monitors and manages system infrastructure to protect the Firm against cyber threats. Our Cyber Risk Management program considers risks from many sources including, but not limited to, alerts, threat intelligence sources, risk assessments, and vulnerability management. Our Cyber Risk Management process includes risk assessment processes to identify risks, a risk evaluation process that includes risk acceptance or denial at all levels of the organization, and third-party vendor management where each vendor’s security posture is assessed to understand how it strengthens Kforce’s cyber supply chain. We have taken a comprehensive defense-in-depth approach to the implementation of our cybersecurity controls. These controls are set to block and/or provide alerts on suspicious activities. Our around-the-clock security operation center responds as appropriate to risks identified and performs the risk assessment and risk evaluation. Our risk register and risk remediation processes help us ensure we are tracking and addressing priority risks, as appropriate. Any potential risks or threats identified by the enterprise security team are communicated to the CISO, Information Security and Data Privacy Council and other senior leaders as appropriate.
Our Vice President of Internal Audit, in collaboration with our General Counsel, facilitates our enterprise risk management (“ERM”) process. Cybersecurity-related risks are included in our overall risk evaluation for our ERM process to determine top risks for the Firm on an annual basis. Our internal audit team, which reports directly to the Audit Committee, uses the ERM program to develop a risk-based audit plan, which is approved by the Audit Committee annually.
Our CIO is accountable for the Firm’s cybersecurity and data privacy programs and is supported by the CISO. Our CIO and CISO have over 35 and 25 years, respectively, of experience in information security and program management, and have both served over 10 years in our corporate information security organization. Under the guidance of the CIO, the CISO manages day-to-day operations of the security and data privacy functions and proposes changes to the Firm’s cybersecurity strategy, which is part of our overall information technology strategy. The CIO and CISO meet frequently to discuss cyber and data operations, privacy programs and risks.
Each of these teams remain in close coordination to ensure risk mitigation strategies are designed and operating effectively.
Cybersecurity Risk Management Processes Integrated [Text Block] Our cybersecurity program helps us secure our systems, keeps our business running around the clock and protects our clients, consultants, employees and shareholders from vulnerabilities and threats. We acknowledge the importance of assessing, identifying, and managing material risks associated with cybersecurity threats including: operational disruptions; violation of data privacy laws and regulations; breach of confidentiality; and financial and reputational harm.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Board Oversight
The Board is actively engaged in the oversight of cybersecurity and data privacy. The Audit Committee assists the Board in meeting its responsibility to oversee cybersecurity and data privacy strategies and practices. On a quarterly basis, the Audit Committee receives updates on (a) our progress meeting objectives established in our cybersecurity maturity roadmap, (b) relevant reported cybersecurity events in the overall market (and for Kforce, if any) and evolving risks, (c) results of work performed by our information security organization (ex. penetration tests, cybersecurity program maturity assessments) and (d) detailed reports of cybersecurity trends within the Firm. We engage subject matter experts in conducting independent assessments of our cybersecurity program maturity, penetration tests and other tests and assessments.
Senior management, including our CIO and CISO, brief the Board on an annual basis on our cybersecurity and information security posture and cybersecurity incidents deemed to have a moderate business impact (even if the incidents do not rise to the level of being material). Annually, the Board and management participate in a strategy discussion on cybersecurity.
To further enhance the Board and Audit Committee’s role in overseeing cybersecurity risks, the Board formed a special working group that is comprised of two members of the Audit Committee to have more frequent and detailed dialogue with executive management (including our COO, CFO, CIO, CISO and VP of Internal Audit) on all areas pertaining to cybersecurity. This working group provides updates on a quarterly basis, or more frequently if necessary, to the Audit Committee.
Management also provides the Audit Committee with an annual overview of Kforce’s various lines of insurance that we maintain, including our cybersecurity insurance policy. The Audit Committee provides the Board with quarterly reports on the Firm’s risks and ERM program findings, including cybersecurity risk and data privacy practices.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Any potential risks or threats identified by the enterprise security team are communicated to the CISO, Information Security and Data Privacy Council and other senior leaders as appropriate.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] With oversight from our Board, the Audit Committee, a special working group comprised of two of our Board members, and key leaders across Kforce, we have put proactive measures and systems in place to protect our information assets from unauthorized use or access, including annual employee training.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CIO and CISO have over 35 and 25 years, respectively, of experience in information security and program management, and have both served over 10 years in our corporate information security organization
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) and the rules of the Securities and Exchange Commission (the “SEC”). Certain prior year amounts have been reclassified to conform with the current period presentation.
Principles of Consolidation
Principles of Consolidation
The 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
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: income taxes 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.
Revenue Recognition
Revenue Recognition
All of our revenue and trade receivables are generated from contracts with customers and our revenues are derived from U.S. domestic operations.
Revenue is recognized when the control of the promised services is transferred to our customers at an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. Revenue is recorded net of sales or other transaction taxes collected from clients and remitted to taxing authorities.
For substantially all of our revenue transactions, we have determined that the gross reporting of revenues as a principal, versus net as an agent, is the appropriate accounting treatment because Kforce: (i) is primarily responsible for fulfilling the promise to provide the specified service to the customer; (ii) has discretion in selecting and assigning the temporary workers to particular assignments and engagements and establishing the bill and pay rates; and (iii) bears the risk and rewards of the transaction, including credit risk if the customer fails to pay for services performed.
Our integrated approach deploys highly skilled professionals on a temporary (“Flex”) and permanent (“Direct Hire”) basis.
Flex Revenue
Substantially all of our Flex revenue is recognized over time as temporary staffing services and managed solutions are provided by our consultants at the contractually established bill rates, net of applicable variable consideration, such as customer rebates and discounts. Reimbursements of travel and out-of-pocket expenses ("billable expenses") are also recorded within Flex revenue when incurred and the equivalent amount of expense is recorded in Direct costs in the Consolidated Statements of Operations and Comprehensive Income. We recognize revenue in the amount of consideration to which we have the right to invoice when it corresponds directly to the services transferred to the customer and satisfied over time.
Direct Hire Revenue
Direct Hire revenue is recognized at the agreed upon rate at the point in time when the performance obligation is considered complete. Our policy requires the following criteria to be met in order for the performance obligation to be considered complete: (i) the candidate accepted the position; (ii) the candidate resigned from their current employer; and (iii) the agreed upon start date falls within the following month. Because the client has accepted the candidate and can direct the use of and obtains the significant risk and rewards of the placement, we consider this point as the transfer of control to our client.
Variable Consideration
Transaction prices for Flex revenue include variable consideration, such as customer rebates and discounts. Management evaluates the facts and circumstances of each contract to estimate the variable consideration using the most likely amount method which utilizes management’s expectation of the volume of services to be provided over the applicable period.
Direct Hire revenue is recorded net of a fallout reserve. Direct Hire fallouts occur when a candidate does not remain employed with the client through the respective contingency period (typically 90 days or less). Management uses the expected value method to estimate the fallout reserve based on a combination of past experience and current trends.
Payment Terms
Our payment terms and conditions vary by arrangement. The vast majority of our terms are typically less than 90 days, however, we have extended our payment terms beyond 90 days for certain of our customers. Generally, the timing between the satisfaction of the performance obligation and the payment is not significant and we do not currently have any significant financing components.
Unsatisfied Performance Obligations
We do not disclose the value of unsatisfied performance obligations for contracts if either the original expected length is one year or less or if revenue is recognized at the amount to which we have the right to invoice for services performed.
Contract Balances
We record accounts receivable when our right to consideration becomes unconditional and services have been performed. Other than our trade receivable balance, we do not have any material contract assets as of December 31, 2024 and 2023.
We record a contract liability when we receive consideration from a customer prior to transferring services to the customer. We recognize the contract liability as revenue after we have transferred control of the goods or services to the customer. Contract liabilities are recorded within Accounts payable and other accrued liabilities if expected to be recognized in less than one year and Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. We do not have any material contract liabilities as of December 31, 2024 and 2023.
Direct Costs
Direct costs are composed of all related costs of employment for consultants, including compensation, payroll taxes, certain fringe benefits and subcontractor costs. Direct costs exclude depreciation and amortization expense, which is presented on a separate line in the accompanying Consolidated Statements of Operations and Comprehensive Income.
Associate and field management compensation, payroll taxes and fringe benefits are included in SG&A along with other customary costs such as administrative and corporate costs.
Commissions
Commissions
Our associates place consultants on assignments and earn commissions as a percentage of revenue or gross profit pursuant to a commission plan. The amount of associate commissions paid increases as volume increases. Commissions are accrued at an amount equal to the percent of total expected commissions payable to total revenue or gross profit for the commission-plan period, as applicable. We generally expense sales commissions and any other incremental costs of obtaining a contract as incurred because the amortization period is typically less than one year.
Stock-Based Compensation
Stock-Based Compensation Expense
Stock-based compensation expense is measured using the grant-date fair value of the award of equity instruments. The expense is recognized over the requisite service period and forfeitures are recognized as incurred. Excess tax benefits or deficiencies of deductions attributable to employees’ vesting of restricted stock are reflected in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income.
Income Taxes
Income Taxes
Income taxes are recorded using the asset and liability approach for deferred tax assets and liabilities and the expected future tax consequences of differences between carrying amounts and the tax basis of assets and liabilities. A valuation allowance is recorded unless it is more likely than not that the deferred tax asset can be utilized to offset future taxes.
Management evaluates tax positions taken or expected to be taken in our tax returns and records a liability (including interest and penalties) for uncertain tax positions. We recognize tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The Company recognizes interest and penalties related to uncertain tax positions in Income tax expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. There were no significant uncertain income tax positions for the year ended December 31, 2024 and 2023.
Cash and Cash Equivalents
Cash and Cash Equivalents
All highly liquid investments with original maturity dates of three months or less at the time of purchase are classified as cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value because of the short-term nature of these instruments.
Fixed Assets
Fixed Assets
Fixed assets are carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the expected terms of the related leases. Upon sale or disposition of our fixed assets, the cost and accumulated depreciation are removed and any resulting gain or loss, net of proceeds, is reflected within SG&A in the Consolidated Statements of Operations and Comprehensive Income.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of long-lived assets is measured by a comparison of the carrying amount of the asset group to the future undiscounted net cash flows expected to be generated by those assets. If an analysis indicates the carrying amount of these long-lived assets exceeds the fair value, an impairment loss is recognized to reduce the carrying amount to its fair market value, as determined based on the present value of projected future cash flows.
Goodwill
Goodwill
Management has determined that the reporting units for the goodwill analysis is consistent with our reportable segments. We evaluate goodwill for impairment either through a qualitative or quantitative approach annually on October 1, or more frequently if an event occurs or circumstances change that indicate the carrying value of a reporting unit may not be recoverable. If we perform a quantitative assessment that indicates the carrying amount of a reporting unit exceeds its fair market value, an impairment loss is recognized to reduce the carrying amount to its fair market value. Kforce determines the fair market value of each reporting unit based on a weighting of the present value of projected future cash flows (the “income approach”) and the use of comparative market approaches (the “market approach”). Factors requiring significant judgment include, among others, the assumptions related to discount rates, forecasted operating results, long-term growth rates, the determination of comparable companies and market multiples. Changes in economic and operating conditions or changes in Kforce’s business strategies that occur after the annual impairment analysis may impact these assumptions and result in a future goodwill impairment charge, which could be material to our consolidated financial statements.
Equity Method Investment
Equity Method Investment and Note Receivable
In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses.
During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income.
On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the promissory notes (the “Note Receivable”) that were executed to our joint venture for a total of $4.8 million at December 31, 2022. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows.
Operating Leases
Operating Leases
Kforce leases property for our field offices and corporate headquarters as well as certain office equipment, which limits our exposure to risks related to ownership. We determine if a contract or arrangement meets the definition of a lease at inception. We elected not to separate lease and non-lease components when determining the consideration in the contract. Right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the lease payments over the lease term at the commencement date. If there is no rate implicit in the lease, we use our incremental borrowing rate in the present value calculation, which is estimated using our collateralized borrowing rate and determined based on the terms of our leases and the economic environment in which they exist. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.
ROU assets for operating leases, net of amortization, are recorded within Other assets, net and operating lease liabilities are recorded within current liabilities if expected to be recognized in less than one year and in Other long-term liabilities, if over one year, in the Consolidated Balance Sheets. Operating lease additions are non-cash transactions and the amortization of the ROU assets is reflected as Noncash lease expense within operating activities in the Consolidated Statement of Cash Flows.
Our lease terms range from two to eleven years with a limited number of leases containing short-term renewal provisions that range from month-to-month to one year and some containing options to renew or terminate.
We elected the short-term practical expedient for leases with an initial term of 12 months or less and do not recognize ROU assets or lease liabilities for these short-term leases.
In addition to base rent, certain of our operating leases require variable payments of property taxes, insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred.
Capitalized Software
Capitalized Software
Kforce purchases, develops and implements software to enhance the performance of our technology infrastructure.
Direct internal costs, such as payroll and payroll-related costs, and external costs incurred during the development stage are capitalized and classified as capitalized software. Capitalized software development costs and the associated accumulated amortization are included in Other assets, net in the accompanying Consolidated Balance Sheets. Amortization expense is computed using the straight-line method over the estimated useful lives of the software, which range from one to sixteen years. Amortization expense of capitalized software during the years ended December 31, 2024, 2023 and 2022 was $2.7 million, $1.9 million and $1.8 million, respectively.
Kforce also enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Certain implementation costs of cloud computing arrangements during the development stage are capitalized, which is consistent with the capitalization criteria used for internal use software. Capitalized costs are included in Other assets, net in the accompanying Consolidated Balance Sheets and within operating activities on the Consolidated Statement of Cash Flows. Capitalized cloud computing arrangement implementation costs are amortized using the straight-line method over the remaining term of the contract.
Health Insurance
Health Insurance
Except for certain fully insured health insurance lines of coverage, Kforce retains the risk of loss for each health insurance plan both on a participant and aggregate basis. For its partially self-insured lines of coverage, health insurance costs are accrued using estimates to approximate the liability for reported claims and incurred but not reported claims, which are primarily based upon an evaluation of historical claims experience, actuarially-determined completion factors and a qualitative review of our health insurance exposure, including the extent of outstanding claims and expected changes in health insurance costs.
Legal Costs
Legal Costs
Legal costs incurred in connection with loss contingencies are expensed as incurred.
Earnings Per Share
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.
Treasury Stock
Treasury Stock
The Board may authorize share repurchases of our common stock. Shares repurchased under Board authorizations are held in treasury for general corporate purposes. Treasury shares are accounted for under the cost method and reported as a reduction of stockholders’ equity in the accompanying consolidated financial statements.
Derivative Instrument
Derivative Instrument
The Firm, from time to time, enters into forward starting interest rate swaps. The Firm evaluates the designation of the derivative instrument. Cash flow hedges would be recorded at fair value on the Consolidated Balance Sheets, and the changes in the fair value would be recorded as a component of Accumulated other comprehensive income/loss in the consolidated financial statements. Cash flows from these derivative instruments were classified in the Consolidated Statements of Cash Flows in the same category as the hedged item. The Firm did not have any outstanding interest rate swap derivative instruments as of December 31, 2024 and 2023.
Fair Value Measurements
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.
The fair value hierarchy uses a framework which requires categorizing assets and liabilities into one of three levels based on the inputs used in valuing the asset or liability.
•Level 1 inputs are unadjusted, quoted market prices in active markets for identical assets or liabilities.
•Level 2 inputs are observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3 inputs include unobservable inputs that are supported by little, infrequent or no market activity and reflect management’s own assumptions about inputs used in pricing the asset or liability.
Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The carrying values of cash and cash equivalents, trade receivables, other current assets and accounts payable and other accrued liabilities approximate fair value because of the short-term nature of these instruments.
Rabbi trust assets are primarily comprised of marketable equity securities and the fair values are based on unadjusted, quoted prices in active markets, which are considered Level 1.
Certain assets, in specific circumstances, are measured at fair value on a non-recurring basis utilizing Level 3 inputs such as goodwill. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if one or more of these assets were determined to be impaired.
New Accounting Standards
New Accounting Standards
Recently Adopted Accounting Standards
In November 2023, the FASB issued guidance intended to improve reportable segment disclosure requirements through enhancements for significant segment expenses. These amendments clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This guidance was effective for Kforce on January 1, 2024, and the presentation and disclosure requirements were applied retrospectively to our annual disclosures for the year ended December 31, 2024 and will apply to the interim disclosures beginning January 1, 2025. This new guidance will enhance our disclosures, but did not have a material effect on our consolidated financial statements.
Accounting Standards Not Yet Adopted
In October 2023, the FASB issued guidance for disclosure improvements in accordance with the SEC’s simplification initiative. These amendments are intended to align FASB’s accounting standards and eliminate disclosures that are “redundant, duplicative, overlapping, outdated, or superseded.” The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
In December 2023, the FASB issued guidance for disclosure improvements for income taxes. These amendments require the disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption of this guidance is permitted for annual financial statements that have not yet been issued, with prospective application required. We are adopting this standard effective January 1, 2025. This new guidance will enhance our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
In November 2024, the FASB issued guidance for disclosure improvements related to the disaggregation of income statement expenses. These amendments require the disaggregation of certain income statement expense captions in a tabular format within the footnotes of the financial statements. This guidance is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods. Early adoption of this guidance is permitted and can be applied prospectively or retrospectively. We are evaluating this new guidance, which may modify our disclosures, but we do not expect this standard to have a material effect on our consolidated financial statements.
Receivable
Equity Method Investment and Note Receivable
In June 2019, we entered into a joint venture whereby Kforce had a 50% noncontrolling interest in WorkLLama, which was accounted for as an equity method investment. Under the equity method, our carrying value included equity capital contributions, adjusted for our proportionate share of earnings or losses.
During the year ended December 31, 2022, we recognized an impairment loss of the full balance of the equity method investment of $13.7 million, which was recorded in Other Expense, net in the Consolidated Statements of Operations and Comprehensive Income.
On February 23, 2023, Kforce received $6.0 million in exchange for the sale of our 50% noncontrolling interest in WorkLLama to an unaffiliated third party and in full settlement of the outstanding balance of the promissory notes (the “Note Receivable”) that were executed to our joint venture for a total of $4.8 million at December 31, 2022. These proceeds, net of customary transaction costs, amounted to $5.1 million and is presented in the investing section of the Consolidated Statements of Cash Flows.
Trade and Other Accounts Receivable, Unbilled Receivables, Policy
Trade Receivables and Related Reserves
Trade receivables are recorded net of allowance for credit losses. The allowance for credit losses is determined using the application of a current expected credit loss model, which measures expected credit losses based on relevant information, including historical experience, current conditions and reasonable and supportable forecasts.
We estimate and recognize lifetime expected losses, rather than incurred losses, which results in the earlier recognition of credit losses even if the expected risk of credit loss is remote. As part of our analysis, we apply credit loss rates to outstanding receivables by aging category. For certain clients, we perform a quarterly credit review, which considers the client’s credit rating and financial position as well as our total credit loss exposure. Trade receivables are written off after all reasonable collection efforts have been exhausted.
Trade accounts receivable reserves as a percentage of gross trade receivables was less than 1% at both December 31, 2024 and 2023. Recoveries of trade receivables previously written off are recorded when received and are immaterial for the year ended December 31, 2024 and 2023.
v3.25.0.1
Segment Reporting (Policies)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting, Policy
Kforce’s two reportable segments are Technology and 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.
v3.25.0.1
Reportable Segments (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Operations of Segments
The following table provides information on the operations of our segments:
(in thousands)
TechnologyFATotal
2024
Revenue $1,292,743 $112,565 $1,405,308 
Direct costs950,589 69,274 1,019,863 
Gross profit$342,154 $43,291 $385,445 
Less:
Selling, general and administrative expenses309,802 
Depreciation and amortization5,922 
Other expense, net2,097 
Income from operations, before income taxes$67,624 
2023
Revenue $1,384,553 $147,203 $1,531,756 
Direct costs1,015,157 89,533 1,104,690 
Gross profit$369,396 $57,670 $427,066 
Less:
Selling, general and administrative expenses334,933 
Depreciation and amortization5,012 
Other expense, net1,871 
Income from operations, before income taxes$85,250 
2022
Revenue$1,507,627 $203,138 $1,710,765 
Direct costs1,085,705 123,953 1,209,658 
Gross profit$421,922 $79,185 $501,107 
Less:
Selling, general and administrative expenses379,815 
Depreciation and amortization4,427 
Other expense, net14,423 
Income from operations, before income taxes$102,442 
v3.25.0.1
Disaggregation of Revenue (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31:
(in thousands)
TechnologyFATotal
2024
Flex revenue$1,278,715 $97,729 $1,376,444 
Direct Hire revenue14,028 14,836 28,864 
Total Revenue$1,292,743 $112,565 $1,405,308 
2023
Flex revenue$1,366,095 $127,679 $1,493,774 
Direct Hire revenue18,458 19,524 37,982 
Total Revenue$1,384,553 $147,203 $1,531,756 
2022
Flex revenue$1,476,055 $176,395 $1,652,450 
Direct Hire revenue31,572 26,743 58,315 
Total Revenue$1,507,627 $203,138 $1,710,765 
v3.25.0.1
Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
Schedule of Accounts Receivable, Allowance for Credit Loss
The following table presents the activity within the allowance for credit losses on trade receivables for the years ended December 31, 2024 and 2023:
(in thousands)
Allowance for credit losses, January 1, 2023
$1,006 
Current period provision768 
Write-offs charged against the allowance, net of recoveries of amounts previously written off(668)
Allowance for credit losses, December 31, 2023
1,106 
Current period provision100 
Write-offs charged against the allowance, net of recoveries of amounts previously written off(290)
Allowance for credit losses, December 31, 2024$916 
v3.25.0.1
Fixed Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Major Classifications of Fixed Assets and Related Useful Lives The following table presents major classifications of fixed assets and related useful lives:
  DECEMBER 31,
(in thousands, except useful lives)USEFUL LIFE20242023
Furniture and equipment
2-10 years
$5,166 $4,971 
Computer equipment
1-10 years
6,082 6,216 
Leasehold improvements
1-10 years
7,395 7,672 
Total fixed assets18,643 18,859 
Less accumulated depreciation (10,920)(9,441)
Total Fixed assets, net$7,723 $9,418 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit), Continuing Operations
The provision for income taxes consists of the following:
 YEARS ENDED DECEMBER 31,
(in thousands)202420232022
Current tax expense:
Federal$14,067 $16,530 $17,535 
State5,014 5,998 6,400 
Deferred tax expense(1,871)1,647 3,076 
Total Income tax expense$17,210 $24,175 $27,011 
Schedule of Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation
The provision for income taxes shown above varied from the statutory federal income tax rate as follows:
 YEARS ENDED DECEMBER 31,
 202420232022
Federal income tax rate21.0 %21.0 %21.0 %
State income taxes, net of Federal tax effect5.6 6.0 5.4 
Non-deductible compensation and meals and entertainment1.8 2.3 2.5 
Tax credits(1.5)(0.8)(1.2)
Tax benefit from restricted stock vesting(0.3)(0.8)(1.0)
Other(1.2)0.7 (0.3)
Effective tax rate25.4 %28.4 %26.4 %
Schedule of Components of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are composed of the following:
 DECEMBER 31,
(in thousands)20242023
Deferred tax assets:
Deferred compensation obligation$6,549 $6,616 
Operating lease liabilities3,923 4,071 
Research and development2,027 — 
Stock-based compensation1,561 1,475 
Accrued liabilities995 1,345 
Accounts receivable reserves399 382 
Other8 8 
Deferred tax assets15,462 13,897 
Deferred tax liabilities:
Fixed assets(3,700)(4,307)
ROU assets for operating leases(3,512)(3,684)
Goodwill(2,291)(2,401)
Prepaid expenses(513)(367)
Other(437)— 
Deferred tax liabilities(10,453)(10,759)
Valuation allowance— — 
Total Deferred tax assets, net$5,009 $3,138 
v3.25.0.1
Other Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets, Net
Other assets, net consisted of the following:
DECEMBER 31,
(in thousands)20242023
Assets held in Rabbi Trust$49,356 $40,389 
Capitalized software, net (1)29,090 16,434 
ROU assets for operating leases, net13,764 14,368 
Other non-current assets2,446 4,733 
Total Other assets, net$94,656 $75,924 
(1) The increase in Capitalized software, net for the year ended December 31, 2024 relates to our back-office transformation program to enhance our technology capabilities to better support our clients, consultants and candidates. This balance includes $6.3 million related to capitalized implementation costs from cloud computing arrangements as of December 31, 2024. Accumulated amortization of capitalized software was $40.1 million and $37.6 million as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill
The following table presents the gross amount and accumulated impairment losses for each of our reporting units as of December 31, 2024, 2023 and 2022:
(in thousands)TechnologyFATotal
Goodwill, gross amount$156,391 $19,766 $176,157 
Accumulated impairment losses(139,357)(11,760)(151,117)
Goodwill, carrying value$17,034 $8,006 $25,040 
v3.25.0.1
Current Liabilities (Tables)
 12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities
The following table provides information on certain current liabilities:
 DECEMBER 31,
(in thousands)20242023
Accounts payable$38,315 $42,842 
Deferred compensation payable8,602 5,927 
Customer rebates payable6,556 7,327 
Accrued liabilities4,259 8,489 
Accrued professional fees4,021 210 
Total Accounts payable and other accrued liabilities$61,753 $64,795 
Payroll and benefits$32,990 $28,110 
Health insurance liabilities3,593 3,727 
Payroll taxes1,698 1,705 
Workers’ compensation liabilities542 426 
Total Accrued payroll costs$38,823 $33,968 
v3.25.0.1
Other Long-Term Liabilities (Tables)
 12 Months Ended
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]  
Schedule of Other Long-Term Liabilities
13. Other Long-Term Liabilities
Other long-term liabilities consisted of the following:
DECEMBER 31,
(in thousands)20242023
Deferred compensation payable - long term$46,183 $42,025 
Operating lease liabilities11,858 12,275 
Other long-term liabilities 18 24 
Total Other long-term liabilities$58,059 $54,324 
v3.25.0.1
Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Weighted-Average Terms and Operating Lease Expense
The following table presents weighted-average terms for our operating leases:
DECEMBER 31,
20242023
Weighted-average discount rate4.3 %4.0 %
Weighted-average remaining lease term6.0 years6.5 years
The following table presents operating lease expense included in SG&A (in thousands):
DECEMBER 31,
Lease Cost20242023
Operating lease expense$4,344 $4,673 
Short-term lease expense1,265 1,396 
Variable lease costs934 1,093 
Sublease income(28)(189)
Total operating lease expense$6,515 $6,973 
Schedule of Maturities for Operating Lease Liabilities
The following table presents the maturities of operating lease liabilities as of December 31, 2024:
(in thousands)
2025$3,617 
20263,049 
20272,662 
20281,989 
20291,384 
Thereafter4,257 
Total maturities of operating lease liabilities16,958 
Less: imputed interest2,062 
Total operating lease liabilities$14,896 
v3.25.0.1
Stock Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Restricted Stock Activity
The following table presents the Restricted Stock activity for the years ended December 31, 2024:
(in thousands, except per share amounts)Number of 
Restricted Stock		Weighted-Average
Grant Date
Fair Value		Total Intrinsic
Value of Restricted
Stock Vested
Outstanding at December 31, 2023798 $60.80 
Granted396 $57.83 
Forfeited(24)$54.08 
Vested(260)$55.24 $15,106 
Outstanding at December 31, 2024910 $61.28 
v3.25.0.1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Contingency period (or less) 90 days  
Required payment period (typically less) 90 days  
Contract assets $ 0 $ 0
Contract liabilities $ 0 $ 0
v3.25.0.1
Summary of Significant Accounting Policies - Trade Receivables and Related Reserves (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Accounts receivable reserves as percentage of gross accounts receivable 1.00% 1.00%
v3.25.0.1
Summary of Significant Accounting Policies - Equity Method Investment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 23, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2019
Schedule of Equity Method Investments [Line Items]          
Loss on equity method investment   $ 0 $ (750) $ (3,824)  
Reserve related to note receivable   0 0 1,925  
Impairment of equity method investment   $ 0 $ 0 13,684  
Financing Receivable, after Allowance for Credit Loss, Noncurrent       4,800  
WorkLLama, LLC | WorkLLama, LLC          
Schedule of Equity Method Investments [Line Items]          
Noncontrolling interest 50.00%        
WorkLLama, LLC          
Schedule of Equity Method Investments [Line Items]          
Percent ownership of equity method investment         50.00%
Proceeds from Sale of Equity Method Investments $ 6,000        
Proceeds From Sale Of Equity Method Investments, Net of Transaction Costs $ 5,100        
Impairment of equity method investment       $ 13,700  
v3.25.0.1
Summary of Significant Accounting Policies - Operating Leases (Details)
Dec. 31, 2024
Dec. 31, 2023
Operating Leased Assets [Line Items]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Other assets, net Other assets, net
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Current portion of operating lease liabilities Current portion of operating lease liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other long-term liabilities Other long-term liabilities
Minimum    
Operating Leased Assets [Line Items]    
Lessee, Operating Lease, Term of Contract 2 years  
Maximum    
Operating Leased Assets [Line Items]    
Lessee, Operating Lease, Term of Contract 11 years  
v3.25.0.1
Summary of Significant Accounting Policies - Capitalized Software (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Amortization expense of capitalized software $ 2.7 $ 1.9 $ 1.8
Computers and Software | Minimum      
Property, Plant and Equipment [Line Items]      
Amortization period 1 year    
Computers and Software | Maximum      
Property, Plant and Equipment [Line Items]      
Amortization period 16 years    
v3.25.0.1
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Common stock equivalents (in shares) 237 319 449
Antidilutive common stock equivalents (in shares) 209 157 292
v3.25.0.1
Summary of Significant Accounting Policies - Treasury Stock (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Non-deductible compensation and meals and entertainment 1.80% 2.30% 2.50%
v3.25.0.1
Summary of Significant Accounting Policies - Derivative Instruments (Details) - executive
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Derivative Asset, Number of Instruments Held 0 0
v3.25.0.1
Reportable Segments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Revenue $ 1,405,308 $ 1,531,756 $ 1,710,765
Gross profit 385,445 427,066 501,107
Income from operations, before income taxes 67,624 85,250 102,442
Selling, general and administrative expenses 309,802 334,933 379,815
Depreciation and amortization 5,922 5,012 4,427
Other Nonoperating Income (Expense) 2,097 1,871 14,423
Direct costs 1,019,863 1,104,690 1,209,658
Technology      
Segment Reporting Information [Line Items]      
Revenue 1,292,743 1,384,553 1,507,627
Gross profit 342,154 369,396 421,922
Direct costs 950,589 1,015,157 1,085,705
FA      
Segment Reporting Information [Line Items]      
Revenue 112,565 147,203 203,138
Gross profit 43,291 57,670 79,185
Direct costs $ 69,274 $ 89,533 $ 123,953
v3.25.0.1
Disaggregation of Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue $ 1,405,308 $ 1,531,756 $ 1,710,765
Flex revenue      
Disaggregation of Revenue [Line Items]      
Revenue 1,376,444 1,493,774 1,652,450
Direct Hire revenue      
Disaggregation of Revenue [Line Items]      
Revenue 28,864 37,982 58,315
Technology      
Disaggregation of Revenue [Line Items]      
Revenue 1,292,743 1,384,553 1,507,627
Technology | Flex revenue      
Disaggregation of Revenue [Line Items]      
Revenue 1,278,715 1,366,095 1,476,055
Technology | Direct Hire revenue      
Disaggregation of Revenue [Line Items]      
Revenue 14,028 18,458 31,572
FA      
Disaggregation of Revenue [Line Items]      
Revenue 112,565 147,203 203,138
FA | Flex revenue      
Disaggregation of Revenue [Line Items]      
Revenue 97,729 127,679 176,395
FA | Direct Hire revenue      
Disaggregation of Revenue [Line Items]      
Revenue $ 14,836 $ 19,524 $ 26,743
v3.25.0.1
Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Allowance for credit losses, beginning balance $ 1,106 $ 1,006  
Current period provision 100 768 $ (126)
Accounts Receivable, Allowance for Credit Loss, Writeoff (290) (668)  
Allowance for credit losses, ending balance $ 916 $ 1,106 $ 1,006
v3.25.0.1
Allowance for Credit Losses - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Credit Loss [Abstract]    
Amount unrelated to trade receivables included in allowance $ 0.6 $ 0.5
v3.25.0.1
Fixed Assets, Net - Major Classifications of Fixed Assets and Related Useful Lives (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Fixed assets, gross $ 18,643 $ 18,859
Less accumulated depreciation (10,920) (9,441)
Total Fixed assets, net 7,723 9,418
Furniture and equipment    
Property, Plant and Equipment [Line Items]    
Fixed assets, gross $ 5,166 4,971
Furniture and equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Fixed assets, useful life 2 years  
Furniture and equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Fixed assets, useful life 10 years  
Computer equipment    
Property, Plant and Equipment [Line Items]    
Fixed assets, gross $ 6,082 6,216
Computer equipment | Minimum    
Property, Plant and Equipment [Line Items]    
Fixed assets, useful life 1 year  
Computer equipment | Maximum    
Property, Plant and Equipment [Line Items]    
Fixed assets, useful life 10 years  
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Fixed assets, gross $ 7,395 $ 7,672
Leasehold improvements | Minimum    
Property, Plant and Equipment [Line Items]    
Fixed assets, useful life 1 year  
Leasehold improvements | Maximum    
Property, Plant and Equipment [Line Items]    
Fixed assets, useful life 10 years  
v3.25.0.1
Fixed Assets, Net - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 3.2 $ 3.1 $ 2.7
v3.25.0.1
Income Taxes - Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current tax expense:      
Federal $ 14,067 $ 16,530 $ 17,535
State 5,014 5,998 6,400
Deferred tax expense (1,871) 1,647 3,076
Total Income tax expense $ 17,210 $ 24,175 $ 27,011
v3.25.0.1
Income Taxes - Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal income tax rate 21.00% 21.00% 21.00%
State income taxes, net of Federal tax effect 5.60% 6.00% 5.40%
Non-deductible compensation and meals and entertainment 1.80% 2.30% 2.50%
Tax credits (1.50%) (0.80%) (1.20%)
Tax benefit from restricted stock vesting (0.30%) (0.80%) (1.00%)
Other (1.20%) 0.70% (0.30%)
Effective tax rate 25.40% 28.40% 26.40%
v3.25.0.1
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Accounts receivable reserves $ 399 $ 382
Accrued liabilities 995 1,345
Deferred compensation obligation 6,549 6,616
Stock-based compensation 1,561 1,475
Operating lease liabilities 3,923 4,071
Deferred Tax Asset, In-Process Research and Development 2,027 0
Other 8 8
Deferred tax assets 15,462 13,897
Deferred tax liabilities:    
Prepaid expenses (513) (367)
Fixed assets (3,700) (4,307)
Goodwill (2,291) (2,401)
ROU assets for operating leases (3,512) (3,684)
Deferred tax liabilities (10,453) (10,759)
Valuation allowance 0 0
Total Deferred tax assets, net 5,009 3,138
Deferred Tax Liabilities, Other $ 437 $ 0
v3.25.0.1
Other Assets, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]      
Assets held in Rabbi Trust $ 49,356 $ 40,389  
ROU assets for operating leases, net $ 13,764 $ 14,368  
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Total Other assets, net Total Other assets, net  
Capitalized software, net $ 29,090 $ 16,434  
Other non-current assets 2,446 4,733  
Total Other assets, net 94,656 75,924  
Accumulated amortization of capitalized software 40,100 37,600  
Reserve related to note receivable 0 0 $ 1,925
Noncash lease expense 3,683 $ 4,065 $ 5,683
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, before Accumulated Amortization $ 6,300    
v3.25.0.1
Goodwill - Summary of the Gross Amount and Accumulated Impairment Losses of Goodwill (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]      
Goodwill, gross amount $ 176,157 $ 176,157 $ 176,157
Accumulated impairment losses (151,117) (151,117) (151,117)
Goodwill, carrying value 25,040 25,040 25,040
Technology      
Goodwill [Line Items]      
Goodwill, gross amount 156,391 156,391 156,391
Accumulated impairment losses (139,357) (139,357) (139,357)
Goodwill, carrying value 17,034 17,034 17,034
FA      
Goodwill [Line Items]      
Goodwill, gross amount 19,766 19,766 19,766
Accumulated impairment losses (11,760) (11,760) (11,760)
Goodwill, carrying value $ 8,006 $ 8,006 $ 8,006
v3.25.0.1
Goodwill - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill impairment $ 0 $ 0 $ 0
v3.25.0.1
Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts payable and other accrued liabilities    
Accounts payable $ 38,315 $ 42,842
Accrued liabilities 4,259 8,489
Accrued Professional Fees, Current 4,021 210
Customer Refund Liability, Current 6,556 7,327
Current deferred compensation liability 8,602 5,927
Total Accounts payable and other accrued liabilities 61,753 64,795
Accrued payroll costs    
Payroll and benefits 32,990 28,110
Payroll taxes 1,698 1,705
Health insurance liabilities 3,593 3,727
Workers’ compensation liabilities 542 426
Total Accrued payroll costs $ 38,823 $ 33,968
v3.25.0.1
Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]    
Deferred compensation payable - long term $ 46,183 $ 42,025
Operating lease liabilities $ 11,858 $ 12,275
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Total Other long-term liabilities Total Other long-term liabilities
Other long-term liabilities $ 18 $ 24
Total Other long-term liabilities $ 58,059 $ 54,324
v3.25.0.1
Operating Leases - Schedule of Weighted-Average Terms and Operating Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average discount rate 4.30% 4.00%
Weighted-average remaining lease term 6 years 6 years 6 months
Lease Cost    
Operating lease expense $ 4,344 $ 4,673
Variable lease costs 934 1,093
Short-term lease expense 1,265 1,396
Sublease income 28 189
Total operating lease expense $ 6,515 $ 6,973
v3.25.0.1
Operating Leases - Schedule of Maturities for Operating Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 3,617
2026 3,049
2027 2,662
2028 1,989
2029 1,384
Thereafter 4,257
Total maturities of operating lease liabilities 16,958
Less: imputed interest 2,062
Total operating lease liabilities $ 14,896
v3.25.0.1
Employee Benefit Plans - Narrative (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Accrued matching contribution $ 2,100 $ 1,900  
Employee stock purchase plan (in shares) 13 18 17
Average purchase price (in dollars per share) $ 62.00 $ 57.13 $ 63.37
Current deferred compensation liability $ 8,602 $ 5,927  
Deferred compensation payable - long term 46,183 42,025  
Compensation expenses 1,300 1,300 $ 500
Deferred compensation plan assets 49,356 $ 40,389  
Net death benefit of life insurance $ 168,000    
ESPP      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Percentage of discount on shares purchased under employee stock purchase plan 5.00%    
v3.25.0.1
Credit Facility (Details) - USD ($)
$ in Millions
Oct. 20, 2021
Dec. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]      
Variable interest rate, floor 0.00%    
Revolving Credit Facility | Credit Facility      
Line of Credit Facility [Line Items]      
Borrowing capacity on line of credit facility $ 200.0    
Accordion feature $ 150.0    
Basis spread on variable rate 1.00%    
Debt covenant, repurchase of equity securities (in excess of) 2500000000.00%    
Maximum leverage ratio 300.00%    
Unrestricted cash (less than) $ 25.0    
Revolving Credit Facility | Credit Facility | Base Rate      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 0.50%    
Revolving Credit Facility | Minimum | Credit Facility      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 1.125%    
Commitment fee percentage 0.20%    
Fixed charge coverage ratio 125.00%    
Revolving Credit Facility | Minimum | Credit Facility | Base Rate      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 0.125%    
Revolving Credit Facility | Maximum | Credit Facility      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 1.50%    
Commitment fee percentage 0.30%    
Leverage ratio 350.00%    
Revolving Credit Facility | Maximum | Credit Facility | Base Rate      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 0.50%    
Line of Credit | Revolving Credit Facility      
Line of Credit Facility [Line Items]      
Long-term debt - credit facility   $ 32.7 $ 41.6
Line of Credit | Letter of Credit      
Line of Credit Facility [Line Items]      
Letters of credit outstanding   $ 1.0 $ 1.2
v3.25.0.1
Derivative Instrument and Hedging Activity - Accumulated Derivative Instrument Gain (Loss) Activity (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning of period $ 159,080 $ 182,198 $ 188,406
End of period $ 154,618 $ 159,080 $ 182,198
v3.25.0.1
Stock Incentive Plans - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Apr. 20, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 14,000 $ 17,700 $ 17,700  
Related tax benefit $ 3,800 $ 4,800 $ 3,700  
Restricted Stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in dollars per share) $ 57.83 $ 64.97 $ 55.85  
Vested $ 15,106 $ 22,500 $ 23,700  
Total unrecognized compensation expenses $ 43,500      
Weighted average period expected to be recognized 4 years 6 months      
Granted (in shares) 396,000      
Restricted Stock | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted stock granted, vesting period 1 year      
Restricted Stock | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted stock granted, vesting period 10 years      
Common Stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Reduction Of Shares Reserved For Grant       2.72
Option Or Stock Appreciation Right        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Reduction Of Shares Reserved For Grant       1
Performance Shares        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation expense $ 0      
Granted (in shares) 87,000      
2021 Stock Incentive Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available for grant (in shares)       3,200,000
v3.25.0.1
Stock Incentive Plans - Summary of Restricted Stock Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restricted Stock      
Number of  Restricted Stock      
Outstanding as of beginning of period (in shares) 798,000    
Granted (in shares) 396,000    
Forfeited/Canceled (in shares) (24,000)    
Vested (in shares) (260,000)    
Outstanding as of end of period (in shares) 910,000 798,000  
Weighted-Average Grant Date Fair Value      
Outstanding as of beginning of period (in dollars per share) $ 60.80    
Granted (in dollars per share) 57.83 $ 64.97 $ 55.85
Forfeited/Canceled (in dollars per share) 54.08    
Vested (in dollars per share) 55.24    
Outstanding as of end of period (in dollars per share) $ 61.28 $ 60.80  
Total Intrinsic Value of Restricted Stock Vested      
Vested $ 15,106 $ 22,500 $ 23,700
Performance Shares      
Number of  Restricted Stock      
Granted (in shares) 87,000    
v3.25.0.1
Commitments and Contingencies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Other Commitments [Line Items]    
Commitments to be paid $ 30.7  
Commitments to be paid in 2023 5.6  
Commitments to be paid in 2024 8.9  
Commitments to be paid in 2025 5.4  
Commitments to be paid in 2026 2.3  
Commitments to be paid in 2027 2.2  
Employees under contract terminated by employer without good cause or in absence of change in control 8.8  
Employees under contract terminated by employer without good cause or change in control 27.7  
Purchase Obligation, to be Paid, after Year Five 6.3  
Letter of Credit | Line of Credit    
Other Commitments [Line Items]    
Letters of credit outstanding $ 1.0 $ 1.2
Minimum    
Other Commitments [Line Items]    
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements 1 year  
Maximum    
Other Commitments [Line Items]    
Period for providing minimum compensation salary and continuation of certain benefits to executives under employment agreements 3 years  
v3.25.0.1
Schedule II Valuation and Qualifying Accounts and Reserves Supplemental Schedule (Details) - Accounts receivable reserves - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 1,643 $ 1,575 $ 2,342
Charged to Costs and Expenses 207 736 (170)
Charged to Other Accounts 0 0 0
Deductions (290) (668) (597)
Balance at End of Period $ 1,560 $ 1,643 $ 1,575