2024 Annual Report Annual Report

OUR SERVICE LINES

Technology (92% of Revenue)

Our decision to grow our business organically with a consistent, refined business model tailored to providing highly skilled technology talent solutions to world-class companies in the domestic market has been critical to our success over many years.

From a performance standpoint, our overall Technology business declined by approximately 7% in 2024 on a year-over-year basis, due to the impact of the persistent macro uncertainties on the level of technology investments being made by our clients. Following unprecedented levels of growth that exceeded 40% across the two-year period from 2021 and 2022, Technology revenues have declined in 2023 and 2024. Demand within our Technology business stabilized in early 2024 and remained stable throughout the year. Our current KPIs and conversations with our clients suggest a slightly more optimistic, but still relatively stable, demand environment as we move into 2025.

Our technology service offering has evolved over the years beyond traditional staffing assignments to include more consulting-oriented engagements based on the demand we are experiencing from our clients. Clients continue to prioritize efficient access to highly skilled talent and see our services as a cost-effective solution to meet their technology project requirements leveraging our superior delivery capability.

The demand for this consulting-oriented offering continued to contribute positively to the results of our Technology business inclusive of the stability we have seen for more than two years in our $90 average bill rate and our Flex margin spreads.

Our clients remain focused on critical technology initiatives across our digital, cloud, data and AI, application engineering practices. Our core competency is sourcing quality talent, at scale, for our clients as demand for various skillsets change and evolve. We expect this to continue as clients increasingly look to us to provide data and digital resources to support their data requirements, integration work and cloud migration activities that are at the front end of their AI investments. As technology has evolved over the decades, we have efficiently evolved with the changing skillset demands of our clients.

Our client portfolio is diverse and is mostly comprised of large, market-leading companies across virtually every industry. This portfolio focus continues to be critical in our ability to drive sustainable, long-term above-market performance.

While the political uncertainty has been resolved with President Trump and his administration taking office in January 2025, the impacts from potential policy changes is unclear. In addition, the prospects for further Fed rate cuts in 2025 appear less certain with inflation indicators proving a bit stickier and continued strength in the labor markets. We believe that clients will begin to incrementally invest in technology initiatives as they gain additional confidence in the U.S. economy.

Our teams made significant progress in our integrated strategy efforts to capitalize on the strong relationships we have with world-class companies by utilizing our existing sales team members, recruiters, and consultants to deliver on higher value engagements that effectively and cost efficiently address our clients' challenges. In addition, our teams were hard at work in 2024 establishing a development center in Pune, India, which was

fully operational in January 2025. We believe this facility puts Kforce in a strong position to compete on client opportunities that we were precluded from bidding on in the past.

We head into 2025 ideally positioned to capture additional market share should demand improve and continue delivering above-market performance as we have for well over a decade.

Finance and Accounting

Our FA business, which represents 8% of total revenues, declined approximately 24% year over year driven by the impact of business we are strategically no longer supporting due to our repositioning efforts combined with a more challenging macro-environment. Our average bill rate of approximately $51 per hour has been relatively stable over the past year and is reflective of the higher skilled areas we are pursuing that are more synergistic with our Technology service offering.

We took additional steps in 2024 to provide our teams increased focus over both our Technology and FA business and are well positioned heading into 2025.

POSITIONING KFORCE FOR THE FUTURE

We continue to make the necessary adjustments within the business to maintain high levels of performance, while also maintaining elevated investments on critical initiatives. This provides a great foundation moving forward to retuhigher levels of profitability as revenues inflect. We have made tremendous progress related to the implementation of Workday as our future state enterprise cloud application for HCM and financials, along with the evolution of our nearshore and offshore delivery capabilities with the opening of our India Development Center in January 2025. These developments represent the ongoing integration of all of the Firm's capabilities across the full spectrum of our service offerings as One Kforce. Each of these strategic initiatives are transformational in nature and will be a meaningful contributor to us meeting our longer-term financial objective

of generating greater operating margins when we retuto $1.7 billion in annual revenue along with our standing goal of at least 10% operating margins at $2.1 billion in annual revenue.

AS WE LOOK AHEAD TO 2025

As has been the case for the last several years, AI continues to dominate the headlines, including DeepSeek's AI advancements and the announcement of the Stargate venture to build new data centers in the U.S. to provide more computing power to OpenAI to develop and train their models. As we have previously articulated, over the long term, we believe that AI and other innovative technologies will continue to play an increasing role in powering businesses. We expect their impact will follow the historic Jevons Paradox pattern, where improved efficiency ultimately drives greater demand for, rather than replacement of, technology resources, and that the pace of change will continue to accelerate.

The strength of the secular drivers of demand in technology accelerated significantly coming out of the Dot Com Recession with the foundational internet work by all companies and the Great Recession, with advancements in mobility, cloud computing, among many others, and the 2020 Pandemic, with further digitalization of businesses and the continued headlines around GenAI technologies. I have seen a lot of economic cycles

in my 35 plus years in this business, and each one behaves a bit differently. What remains clear to us though is that the broad and strategic uses of technology, including AI technologies, will continue to evolve and play an increasingly instrumental role in powering businesses, and that access to highly skilled and scarce technology talent to drive this evolution will remain critical.

We continue to make adjustments to associate levels based upon productivity expectations. We will remain focused on retaining our most productive associates and making targeted investments in the business to ensure that we are well prepared to capitalize on the market demand when it accelerates.

We are fortunate to have one of the most recognized brands in the market for providing technology talent solutions.

Our reputation has been established over our 60 plus year operating history, and we continue to carry the highest overall Glassdoor rating within our peer group. Regardless of the

ultimate environment, we enter 2025 well positioned to take additional market share and continue laying the foundation to generate significant long-term returns for our shareholders.

ENVIRONMENTAL, SOCIAL

AND GOVERNANCE (ESG)

Our 2024 Sustainability Report, published in February 2025, outlines the progress we made in our ESG efforts last year. We continue to make progress in reducing our environmental footprint, fostering a diverse and inclusive workplace

and upholding the highest standards of governance. We continuously refine these initiatives to ensure they remain effective and impactful.

Investing in our people remains a top priority. We created a more holistic view of employee sentiment by increasing ongoing feedback opportunities and expanded our leadership development program to include a series featuring our board members. We furthered our strong corporate governance practices by establishing an ESG Committee to oversee our collective efforts and engaged a third party to review and validate the progress of our cybersecurity and data privacy program. We stayed focused on making sound decisions for the Firm

that contributed to our goal of lowering our greenhouse gas (GHG) emissions. We further reduced our GHG emissions in 2024 by 11% versus 2023 levels and, in total, have reduced our GHG emissions by approximately 60% compared to our 2019 baseline.

The path to sustainability is a continuous one. We will continue to listen, leaand adapt as we navigate the complexities of the ESG landscape.

STEWARDSHIP

Our core values of compassion, unity and fun support our culture of stewardship. We are passionate about leaving a lasting, positive impact on the world. Under our guiding principle, Empowering People Through Knowledge Sharing®, we focus on programs that help people develop skills, gain knowledge and pursue meaningful careers.

Our employees lead the way in our community engagement efforts. Their passion for education, community development and human services guides our community engagement strategy. We bring a unified approach to philanthropy by partnering with four corporate-sponsored charities: Best Buddies Tampa Bay, Feeding Tampa Bay, Junior Achievement Tampa Bay and Special Operations Warrior Foundation, but also encourage our people to support causes and organizations they are passionate about.

Our most significant 2024 activity was the support of disaster relief efforts after Hurricanes Helene and Milton devastated Tampa Bay (where our headquarters is located) and surrounding areas, westeNorth Carolina and other parts of the coast.

We placed special emphasis on aiding those impacted by, among other support, donating 1.6 million meals and hosting a "warehouse takeover" at Feeding Tampa Bay. Additional donations were made to MANNA Food Bank in North Carolina, Hope Children's Home and other charities.

IN SUMMARY

We have built a solid foundation at Kforce to advance our Mission Uniting professionals to achieve success through lasting personal relationships® and Vision To have a meaningful impact on all the lives we serve®.

I want to reiterate how proud I am of the performance and resiliency of our collective Kforce team through their daily actions while living out our tagline We Love What We Do. We Love Who We Serve®. Together, we fought through a challenging operating environment, made some difficult decisions and met each challenge. We are blessed to have a tenured Executive Leadership team that has been through multiple economic cycles together and can quickly adjust to changing market conditions. We will continue to invest in our strategic priorities that will help drive long-term growth and achieve our longer- term financial objective of attaining double-digit operating margins. We enter 2025 well positioned to capture additional market share and continue creating significant long-term returns for our shareholders.

Joseph J. Liberatore

President and Chief Executive Officer

FROM STRATEGY

THROUGH

IMPLEMENTATION,

WE PROVIDE

THE KNOWLEDGE AND LEADERSHIP

OUR CLIENTS

RELY ON TO

ACCELERATE

THEIR BUSINESS.

TECHNOLOGY

Kforce is a leading technology staffing and solutions firm in the U.S. with a proven history of evolving to meet our customers' needs. We provide the right professionals, teams and methodologies to deliver great results. Our experts help our clients seize opportunities and solve their greatest challenges.

Our four areas of focus are:

• APPLICATION ENGINEERING
  We create and deploy comprehensive full-stack solutions across the entire digital ecosystem, including software, web and mobile development, to enhance user experience and deliver impactful outcomes.
• CLOUD
  We empower our clients with cloud-native solutions customized to the right platform for their journey and fast-track their use of cloud computing.
• DATA AND AI
  We serve our clients throughout the full data lifecycle: from describing past performance and understanding current progress to predicting future outcomes and prescribing next steps to improve efficiency and grow revenue.
• DIGITAL
  We take a human-centered, design-inspired approach to craft simple, personalized and differentiating digital solutions that drive revenue growth, brand loyalty and customer satisfaction.

Our CONSULTING SOLUTIONS team helps companies achieve their vision through digital transformation and modernization. We do so by combining our deep technical expertise in core practice areas with a multi-industry focus, including technology, financial services, insurance, telecommunications, healthcare, retail and energy. From strategy through implementation, we provide the knowledge and leadership our clients rely on to accelerate their business.

FINANCE AND ACCOUNTING

As a top provider of finance and accounting services in the U.S., we provide highly skilled analytics and decision support in the following areas:

• STRATEGIC
  We support senior-level decision making, ranging from financial, risk, and mergers and acquisitions to business intelligence and data science.
• OPERATIONAL AND TECHNICAL
  We execute day-to-day accounting and staffing analysis, such as directing, controlling and planning.
• TRANSACTIONAL
  We perform essential functions, including accounts receivable, accounts payable and payroll.

2,000%

KFRC

1,500%

Kforce TSR vs. Russell 2000 Index stock performance from 8/15/95 (IPO) to 12/31/24

Our total shareholder retu(TSR) since going public in August 1995 has been approximately 2,000%, roughly

3.1 times greater than the Russell 2000 over the same period.

BUSINESS

COMPANY OVERVIEW

Kforce Inc., along with its subsidiaries (collectively, "Kforce"), is a solutions firm specializing in technology, finance and accounting, and other professional staffing services. Our KNOWLEDGEforce® empowers industry-leading companies to achieve their digital transformation goals. We curate teams of technical experts who deliver solutions custom-tailored to each of our client's needs. These scalable, flexible outcomes are shaped by deep market knowledge, thought leadership and our multi-industry expertise.

Our integrated approach is rooted in more than 60 years of proven success deploying highly skilled professionals on traditional staffing assignments or as part of a team of professionals who are responsible for delivering solutions to our clients, both of which are considered temporary ("Flex") in nature. We also place highly skilled professionals in a permanent ("Direct Hire") role with our clients. Each year, approximately 18,000 talented experts work with Fortune 500 and other leading companies. Together, we deliver Great Results Through Strategic Partnership and Knowledge Sharing®.

Over the last decade, we have driven significant, strategic change at Kforce, including streamlining the focus of our business on providing technology talent solutions. In alignment with this goal, since 2008, we have completed various divestitures of businesses that did not relate to our core business.

During 2024, we established a development center in Pune, India, one of the leading technology cities in India. Following its formation, our India development center began supporting project engagements with our U.S.-based clients in January 2025. We believe this development center, when combined with a strong U.S. sales and delivery capability and a high-quality vendor network, will help us to more fully address the evolving needs of our clients, whether onshore, nearshore or offshore.

right match for our clients. For our Direct Hire services, we identify qualified individuals ("candidates") for permanent placement with our clients. We further describe our two reportable segments below.

Our operating results can be affected by:

• the number of billing days;
• the seasonality of our clients' businesses;
• changes in holidays and vacation days taken, which is usually highest in the fourth quarter of each calendar year; and
• increased costs as a result of certain annual U.S. state and federal employment tax resets that occur at the beginning of each calendar year, which negatively impact our gross profit and overall profitability in the first fiscal quarter of each calendar year.

Our Technology Business

We provide talent solutions to our clients in highly skilled areas including, but not limited to, systems/applications architecture and development (mobility and/or web); data management and analytics; cloud architecture and engineering; business and artificial intelligence ("AI"); machine learning; project and program management; and network architecture and security.

Our service offerings have evolved over the years beyond traditional staffing assignments to include solutions-oriented engagements; this evolution was based on the demand we were seeing from our clients. Clients continue to prioritize efficient access to highly skilled talent and view our solutions offering as a cost-effective solution to meet their technology project requirements. This offering has continued to be a positive contributor and catalyst to our Technology business over the last several years and we expect this offering to continue to represent a growing mix of our overall Technology revenue footprint.

We provide services to clients across virtually every industry with a diversified footprint in, among others, financial and business services, communications, insurance, retail and technology.

$1 BILLION

Total Capital Returned to

Shareholders

Since 2007

92%

Revenue Concentrated

in Technology Staffing

and Solutions

1962

Year Founded

#1

Recognized Brand by

Technology Consultants per Staffing Industry Analysts

KFRC

Listed on

New York Stock Exchange

18,000

Consultants Placed Annually

The demand for our solutions engagements contributed positively to the results of our Technology business in 2024, while our traditional staff augmentation offering has been the driver of our overall Technology revenue declines year over year. Our integrated strategy efforts capitalize on the strong relationships we have with world-class companies by utilizing our existing sales teams, recruiters, consulting solutions professionals, technology practice experts, among other teams within the Firm, to provide higher value engagements that effectively and cost efficiently address our clients' challenges. We are continuing to further integrate and prioritize this capability into our Technology business.

Our Technology and Finance and Accounting ("FA") businesses represent our two reportable segments. Our Technology business comprises 92% of our overall revenues, and the remainder is generated by our FA business. For our Flex services, we provide our clients with qualified individuals ("consultants"), or teams of consultants, on a finite basis when the skills and experience of the consultants are the

The September 2024 report published by Staffing Industry Analysts ("SIA") stated that temporary technology staffing was forecasted to decline by 7% in 2024 and grow by 5% in 2025. In the next update from SIA, which would typically be released in April 2025, we would expect growth expectations to come down. Technology, as a discipline, continues to be project driven, even amidst generational changes like AI. We believe there are a multitude of technology projects that need to be addressed by our clients in order for them to remain competitive and to effectively change how they operate and deliver value to their customers, irrespective of economic performance.