F

Kforce, Inc. — Earnings Quality Grade F

KFRC · Industrials

Major red flags

Revenue
$1.3B
2025
Net Income
$35M
2025
Gross Margin
27.2%
Free Cash Flow
$47M
01

Screening Summary

12
Passed
3
Watch
2
Failed
-2.9
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 52 days, change -4 days YoY

A2AR vs Revenue Growth

AR growth -11.7% vs revenue growth -5.4%

A3Revenue vs CFFO

Revenue -5.4%, CFFO -29.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

!
B2CapEx vs Revenue

CapEx growth 96.0% is >2x revenue growth -5.4%

!
B3SG&A Ratio

SG&A/Gross Profit = 84.6%, exceeds 70%

B4Gross Margin

Gross margin 27.2%, change -0.2pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.77. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 1.34

C3Accruals Ratio

Accruals ratio = -7.3%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 3% of debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 62% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.5x. Healthy

D3Soft Asset Growth

Other assets 18.6% vs revenue -5.4%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 43% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.90 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.9
-4.0 Clean-2.22 Grey-1.78 Danger0
0.934
DSRI
AR growing faster than revenue?
1.009
GMI
Gross margin declining?
1.252
AQI
Asset quality deteriorating?
0.946
SGI
Revenue growth rate
1.051
DEPI
Depreciation slowing?
1.044
SGAI
SG&A ratio changing?
-0.0734
TATA
Accruals level
1.214
LVGI
Leverage increasing?
05

Altman Z-Score

7.97
Safe Zone
0 Distress1.102.605.0+ Safe
0.2422
Liquidity
1.5102
Cumulative profit
0.137
Operating efficiency
0.5169
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25