Financial Analysis

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. At December 31, 2025, these unconditional purchase obligations with an initial or remaining term in excess of one year were approximately $33.7 million and are expected to be paid as follows: $10.6 million in 2026; $9.2 million in 2027, $2.8 million in 2028, $1.9 million in 2029, $1.6 million in 2030, and $7.6 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, 2025, our liability would be approximately $29.6 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 $11.1 million if, in the absence of a change in control, all of the executives under contra …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 $2.5 million and $2.1 million at December 31, 2025 and 2024, respectively. Employee Stock Purchase Plan Effective April 2025, the Firm discontinued the employee stock purchase plan which allowed all eligible employees to enroll each quarter to purchase Kforces common stock at a 5% discount from its market price on the last day of the quarter. Kforce issued 3 thousand, 13 thousand, and 18 thousand shares of common stock at an average purchase price of $53.85, $62.00 and $57.13 per share during the years ended December 31, 2025, 2024 and 2023, respectively. All shares purchased under the employee stock purchase plan were settled using Kforces 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, …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

12. Credit Facility On November 5, 2025, the Firm entered into a senior secured credit facility with Bank of America, N.A., as administrative and collateral agent, BofA Securities, Inc. and PNC Capital Markets LLC as joint lead arrangers, BofA Securities, Inc. as bookrunner and the lenders referred to therein (the Credit Facility). Under the Credit Facility, the Firm has a maximum borrowing capacity of $200.0 million, which includes a $10.0 million sublimit for the issuance of standby and commercial letters and $10.0 million sublimit for swingline loans, and 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 Credit Facility is November 5, 2030. Any loan under the Credit Facility will bear interest at a rate equal to either (a) Term SOFR (as described below) plus the Applicable Margin (as described below) or (b) the highest of (i) the Bank of America prime rate, (ii) the Federal Funds rate plus 0.50%, (iii) Term SOFR for a one-month interest period plus 1.00% and (iv) 1.00% plus the Applicable Margin (the Base Rate). Term SOFR refers to the Secured Overnight Financing Rate published term rate for the applicable interest period, but not less than zero. The Applicable Margin is based on the Firms total leverage ratio. The Applica …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table provides information about disaggregated revenue by segment and revenue type for the years ended December 31: (in thousands) Technology FA Total 2025 Flex revenue $ 1,218,117 $ 85,220 $ 1,303,337 Direct Hire revenue 12,154 13,516 25,670 Total Revenue $ 1,230,271 $ 98,736 $ 1,329,007 2024 Flex revenue $ 1,278,715 $ 97,729 $ 1,376,444 Direct Hire revenue 14,028 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 revenue 18,458 19,524 37,982 Total Revenue $ 1,384,553 $ 147,203 $ 1,531,756

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"14. Stock-Based Compensation On April 23, 2025, Kforce shareholders approved the 2025 Stock Incentive Plan (the 2025 Plan). The 2025 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 2025 Plan is approximately 2.7 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 2025 Plan terminates on April 23, 2035. During the years ended December 31, 2025, 2024 and 2023, stock-based compensation expense was $13.7 million, $14.0 million and $17.7 million, respectively, and is included in SG&A in the Consolidated Statements of Operations. The related tax benefit for the years ended December 31, 2025, 2024 and 2023 was $2.9 million, $3.8 million and $4.8 million, respectively. Restricted Stock Restricted Stock is granted to directors, executives and management either: for awards related to Kforces annual long-term incentive (LTI) compensation program, or as part of a compensation package for retention. The LTI award amounts are primarily based on Kforces total shareholder return as compared to a predefined peer group. RSAs and RSUs granted during the year ended December 31, 2025 will vest ratably over a period of one to …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

7. Income Taxes The components of the provision for income taxes were as follows: Years Ended December 31, (in thousands) 2025 2024 2023 Current tax expense: U.S. federal $ 6,850 $ 14,067 $ 16,530 State and local 3,297 5,014 5,998 Total current tax expense 10,147 19,081 22,528 Deferred tax expense (benefit): U.S. federal 1,583 (1,596) 1,157 State and local 390 (275) 490 Total deferred tax expense (benefit) 1,973 (1,871) 1,647 Total Income tax expense $ 12,120 $ 17,210 $ 24,175 The provision for income taxes results in an effective tax rate that differs from the U.S. federal statutory rate. The following is a reconciliation of income tax expense at the U.S. federal statutory rate to total Income tax expense: Years Ended December 31, 2025 2024 2023 (dollars in thousands) Amount Percent Amount Percent Amount Percent U.S. federal statutory income tax rate $ 9,859 21.0 % $ 14,201 21.0 % $ 17,902 21.0 % State and local income tax, net of federal income tax effect (1) 2,913 6.2 3,760 5.6 5,125 6.0 Nontaxable or nondeductible items: Executive compensation 1,246 2.6 986 1.4 1,711 2.0 Other 771 1.6 64 0.1 (494) (0.5) Tax credits: Research and development (2,765) (5.9) 0.0 0.0 Other 138 0.3 (989) (1.5) (676) (0.8) Other adjustments (42) 0.0 (812) (1.2) 607 0.7 Total Income tax expense and effective tax rate $ 12,120 25.8 % $ 17,210 25.4 % $ 24,175 28.4 % (1) State income taxes in California, Florida, Texas and Virginia made up the majority of the tax effect in this category for the year …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

10. Operating Leases The following table presents weighted-average terms for our operating leases: December 31, 2025 2024 Weighted-average discount rate 4.4 % 4.3 % Weighted-average remaining lease term 5.7 years 6.0 years The following table presents operating lease expense included in SG&A (in thousands): December 31, Lease Cost 2025 2024 Operating lease expense $ 4,455 $ 4,344 Short-term lease expense 1,510 1,265 Variable lease costs 699 934 Sublease income (28) Total operating lease expense $ 6,664 $ 6,515 The following table presents the maturities of operating lease liabilities at December 31, 2025: (in thousands) 2026 $ 3,991 2027 4,072 2028 3,197 2029 2,396 2030 1,706 Thereafter 3,165 Total maturities of operating lease liabilities 18,527 Less: imputed interest 1,981 Total operating lease liabilities $ 16,546 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Standards Recently Adopted Accounting Standards 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 new guidance was applied retrospectively to our annual disclosures for the year ended December 31, 2025. This new guidance modified 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 SECs simplification initiative. These amendments are intended to align FASBs 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 SECs 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 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 t …

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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) Technology FA Total 2025 Flex revenue $ 1,218,117 $ 85,220 $ 1,303,337 Direct Hire revenue 12,154 13,516 25,670 Total Revenue $ 1,230,271 $ 98,736 $ 1,329,007 2024 Flex revenue $ 1,278,715 $ 97,729 $ 1,376,444 Direct Hire revenue 14,028 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 revenue 18,458 19,524 37,982 Total Revenue $ 1,384,553 $ 147,203 $ 1,531,756

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2. Reportable Segments The following table provides information on the operations of our segments for the years ended December 31: (in thousands) Technology FA Total 2025 Revenue $ 1,230,271 $ 98,736 $ 1,329,007 Direct costs 906,511 61,123 967,634 Gross profit $ 323,760 $ 37,613 $ 361,373 Less: Selling, general and administrative expenses 305,748 Depreciation and amortization 5,548 Other expense, net 3,132 Income before income taxes $ 46,945 2024 Revenue $ 1,292,743 $ 112,565 $ 1,405,308 Direct costs 950,589 69,274 1,019,863 Gross profit $ 342,154 $ 43,291 $ 385,445 Less: Selling, general and administrative expenses 309,802 Depreciation and amortization 5,922 Other expense, net 2,097 Income before income taxes $ 67,624 2023 Revenue $ 1,384,553 $ 147,203 $ 1,531,756 Direct costs 1,015,157 89,533 1,104,690 Gross profit $ 369,396 $ 57,670 $ 427,066 Less: Selling, general and administrative expenses 334,933 Depreciation and amortization 5,012 Other expense, net 1,871 Income before income taxes $ 85,250

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"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 include income taxes and the evaluation of goodwill for impairment. 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 …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note J - Commitments and Contingencies Employment Agreements Kforce has employment agreements with certain executives that provide for certain post-employment benefits under certain circumstances. At June 30, 2026, our liability would be approximately $30.9 million if, following a change in control, all of the executives under contract were terminated without cause by Kforce or if the executives resigned for good reason, and $11.7 million if, in the absence of a change in control, all of the executives under contract were terminated by Kforce without cause or if the executives resigned for good reason. Litigation We are involved in legal proceedings, claims and administrative matters that arise in the ordinary course of business, and we have made accruals with respect to certain of these matters, where appropriate, that are reflected in our unaudited condensed consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters for which an accrual has not been made, we have not yet determined that a loss is probable, or the amount of loss cannot be reasonably estimated. The outcome of any litigation is inherently uncertain, but we do not expect that these proceedings and claims, individually or in the aggregate, will have a material effect on our unaudited condensed consolidated financial statements; however, if decided adversely to us, or if we determine that settlement of particular litigation is appropriate, we may be sub …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note G - Credit Facility On November 5, 2025, the Firm entered into a senior secured credit facility with Bank of America, N.A., as administrative and collateral agent, BofA Securities, Inc. and PNC Capital Markets LLC as joint lead arrangers, BofA Securities, Inc. as bookrunner and the lenders referred to therein (the Credit Facility). Under the Credit Facility, the Firm has a maximum borrowing capacity of $200.0 million, which includes a $10.0 million sublimit for the issuance of standby and commercial letters and $10.0 million sublimit for swingline loans, and may, subject to certain conditions and the participation of the lenders, be increased up to an aggregate additional amount of $150.0 million. Borrowings under the Credit Facility are secured by substantially all of the tangible and intangible assets of the Firm. The maturity date of the Credit Facility is November 5, 2030. At June 30, 2026 and December 31, 2025, $107.1 million and $66.4 million was outstanding under the Credit Facility, respectively. Kforce had $1.1 million of outstanding letters of credit at June 30, 2026 and December 31, 2025, which pursuant to the Credit Facility, reduces the availability of our borrowing capacity. At June 30, 2026, we are in compliance with all of the covenants contained in the Credit Facility. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table provides information about disaggregated revenue by segment and revenue type: (in thousands) Technology FA Total Three Months Ended June 30, 2026 Flex revenue $ 320,035 $ 21,794 $ 341,829 Direct Hire revenue 3,841 3,661 7,502 Total Revenue $ 323,876 $ 25,455 $ 349,331 2025 Flex revenue $ 307,844 $ 20,567 $ 328,411 Direct Hire revenue 2,683 3,222 5,905 Total Revenue $ 310,527 $ 23,789 $ 334,316 Six Months Ended June 30, 2026 Flex revenue $ 622,990 $ 43,067 $ 666,057 Direct Hire revenue 6,849 6,789 13,638 Total Revenue $ 629,839 $ 49,856 $ 679,695 2025 Flex revenue $ 610,279 $ 40,702 $ 650,981 Direct Hire revenue 6,532 6,831 13,363 Total Revenue $ 616,811 $ 47,533 $ 664,344

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Note I - Stock-Based Compensation On April 22, 2026, Kforces shareholders approved the 2026 Stock Incentive Plan (the 2026 Plan). The 2026 Plan allows for the issuance of stock options, stock appreciation rights (SAR), 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 2026 Plan is approximately 2.8 million. Grants of an option or SAR reduce the reserve by one share, while a Restricted Stock award reduces the reserve by 2.72 shares. The 2026 Plan terminates on April 22, 2036. The following table presents the Restricted Stock activity for the six months ended June 30, 2026: (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, 2025 1,098 $ 50.40 Granted 108 $ 37.55 Forfeited (17) $ 54.36 Vested (45) $ 40.32 $ 1,512 Outstanding at June 30, 2026 1,144 $ 49.52 At June 30, 2026, total unrecognized stock-based compensation expense related to restricted stock was $35.3 million, which is expected to be recognized over a weighted-average remaining period of 3.8 years. During the three and six months ended June 30, 2026, stock-based compensation expense was $3.7 million and $7.3 million, respectively. During the three and six months ended June 30, 2025, stock-ba …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note C - Disaggregation of Revenue The following table provides information about disaggregated revenue by segment and revenue type: (in thousands) Technology FA Total Three Months Ended June 30, 2026 Flex revenue $ 320,035 $ 21,794 $ 341,829 Direct Hire revenue 3,841 3,661 7,502 Total Revenue $ 323,876 $ 25,455 $ 349,331 2025 Flex revenue $ 307,844 $ 20,567 $ 328,411 Direct Hire revenue 2,683 3,222 5,905 Total Revenue $ 310,527 $ 23,789 $ 334,316 Six Months Ended June 30, 2026 Flex revenue $ 622,990 $ 43,067 $ 666,057 Direct Hire revenue 6,849 6,789 13,638 Total Revenue $ 629,839 $ 49,856 $ 679,695 2025 Flex revenue $ 610,279 $ 40,702 $ 650,981 Direct Hire revenue 6,532 6,831 13,363 Total Revenue $ 616,811 $ 47,533 $ 664,344

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Note B - Reportable Segments The following table provides information on the operations of our two reportable segments: (in thousands) Technology FA Total Three Months Ended June 30, 2026 Revenue $ 323,876 $ 25,455 $ 349,331 Direct costs 234,424 15,453 249,877 Gross profit $ 89,452 $ 10,002 $ 99,454 Less: Selling, general and administrative expenses 79,406 Depreciation and amortization 1,296 Other expense, net 991 Income before income taxes $ 17,761 2025 Revenue $ 310,527 $ 23,789 $ 334,316 Direct costs 228,953 14,715 243,668 Gross profit $ 81,574 $ 9,074 $ 90,648 Less: Selling, general and administrative expenses 74,370 Depreciation and amortization 1,390 Other expense, net 1,029 Income before income taxes $ 13,859 (in thousands) Technology FA Total Six Months Ended June 30, 2026 Revenue $ 629,839 $ 49,856 $ 679,695 Direct costs 459,378 30,795 490,173 Gross profit $ 170,461 $ 19,061 $ 189,522 Less: Selling, general and administrative expenses 156,164 Depreciation and amortization 2,600 Other expense, net 1,643 Income before income taxes $ 29,115 2025 Revenue $ 616,811 $ 47,533 $ 664,344 Direct costs 456,053 29,383 485,436 Gross profit $ 160,758 $ 18,150 $ 178,908 Less: Selling, general and administrative expenses 149,535 Depreciation and amortization 2,854 Other expense, net 1,594 Income before income taxes $ 24,925

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Note A - Summary of Significant Accounting Policies Unless otherwise noted below, there have been no material changes to the accounting policies presented in Note 1 - Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements, included in Item 8. Financial Statements and Supplementary Data of our 2025 Annual Report on Form 10-K. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC regarding interim financial reporting. Accordingly, certain information and footnotes normally required by GAAP for complete financial statements have been condensed or omitted pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2025 Annual Report on Form 10-K. In managements opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation. The Unaudited Condensed Consolidated Balance Sheet at December 31, 2025, was derived from our audited Consolidated Balance Sheet at December 31, 2025, as presented in our 2025 Annual Report on Form 10-K. Our quarterly operating results are affected by the seasonality of our clients businesses an …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing