Kforce : Investor Presentation

KFORCE INVESTOR PRESENTATION

C o n fid e n tia l a n d P ro p rie ta ry

Forward Looking Statements

All the information presented that is not historical in nature should be considered to be forward-looking statements that are subject to certain risks, uncertainties or assumptions and may be affected by certain other factors, including but not limited to the specific factors discussed in the Firm's periodic filings with the SEC. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements expressed or implied by such forward-looking statements may vary materially from any future results, performance, or achievements expressed or implied in this presentation. Forward- looking statements are not guarantees of performance and the Firm undertakes no obligation to update any of the information presented in light of new information or future events.

We use several non-GAAP financial measures, such as adjusted EBITDA and other adjusted financial performance measures when presenting our financial results in this presentation to provide greater clarity into our operating performance. Please refer to the reconciliations between our GAAP and non-GAAP financial measures on our website at www.kforce.com, following the "Investor Relations" link, and in our filings with the SEC.

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Kforce Overview

WHO WE ARE

$1. 2B

Market Cap

NASDAQ

"KFRC"

We are a solutions Firm matching the needs of large, dynamic companies with highly- skilled talent and capabilities .

Founded in 1962, publicly since 1995 (Ticker: KFRC)

OUR FOOTPRINT AND SCALE

100% of our revenue stream is generated

domestically and supported by

approximately 1,800 associates located

across the U .S .

Over 20,000 consultants engaged annually . Superior local/national recruiting capabilities .

LASTING PERSONAL RELATIONSHIPS

Our relationships and client portfolio are a

differentiator . Kforce serves the vast

majority of the Fortune ranked companies

Solid long - standing relationships and proven ability to service large clients, at scale .

FOCUS ON TECHNOLOGY

HLS | 22%	GOVT | 6%	FA 8%
2007	Today
FA | 22%	TECH | 50%	TECH | 92%

Strategic decision to focus on our technology service offering coming out of the Great Recession.

TECHNOLOGY CHARACTERISTICS

Strong long-term	Expanding presence in IT
secular drivers.	solutions market due to
	client demand.
Avg bill rates	Large addressable
approximately $90	market in staffing and
per hour.	solutions.

Average assignment length of

approximately 10 months.

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WE ARE EXECUTING WELL

Q1 '24 revenues of $351. 9 million declined 13. 3% YoY. Technology flex revenues declined 11. 4% YoY in Q1 '24. Took prudent actions to control SG&A while preserving investments to enhance our long - term positioning . Continued to return significant capital to shareholders via dividends and share repurchases .

Return on equity (ROE) of nearly 40%

BRAND RECOGNITION & REPUTATION

#1 recognized brand by IT consultants

Strategically Focused on Technology

Large, Growing &

Attractive End

Markets…

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P O W E R F U L SECUL AR GROW TH DRIVERS

Digitization and other technology transformations such as cloud and data are driving strong secular tailwinds and have demonstrated resilience in disruptive economic environments

HIGH - END DOMESTIC FOCUS

Over the course of economic cycles, historically, technology has had higher bill rates, better spreads, longer assignments, and embedded, longstanding & personal customer relationships …and 100% domestic

TECHNOLOGY HAS MOVED TO THE FOREFRONT

Clients are prioritizing the modernization of consumer and employee experience technologies in addition to more traditional back-office applications

GenAI is expected to be yet another powerful driver of technology investments

MACRO CREATING TREMENDOUS BACKLOG

Technology investments are simply not optional from a competitive positioning standpoint.

The caution exercised over the last 12+ months we believe is creating a sizable backlog of desired technology investments.

Competitively Positioned to

CAPTURING SIGNIFICANT SHARE IN TECHNOLOGY

We are uniquely positioned to meet our clients' evolving needs in the managed teams and project solutions space at higher bill rates and gross margins than our traditional staffing solutions

AT TRACTIVE BLUE CHIP CLIENT BASE

Providing a significant majority of Fortune companies with highly- skilled technologists, at scale, across a spectrum of engagement models

Win

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BET TER RECRUITING MEANS BET TER TALENT

Vast & efficient recruiting machine (people and technology) plus strong consultant relationships creates greater opportunity

INVESTING IN I . T. & PROCESSES

Continued technology investments to drive higher levels of productivity (front and back office) and enhanced interactions with clients and consultants

Financial Performance Overview

C o n fid e n tia l a n d P ro p rie ta ry

Kforce

Q1 '24

Financial Performance

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Revenue Performance

Q1 '24 revenue of $351.9m is down 13.3% on a year-over-year basis.

Technology flex revenues are down 11.4% year-over-year for Q1 '24.

Our FA flex business is down 27.2% year-over-year for Q1 '24.

Profitability

Flex gross profit margins have been stable in 2H 2023 and Q1 2024 in our Technology business.

A variable cost compensation model that provides leverage during periods of uncertainty, and our office-occasional work model allows for continued real estate footprint optimization.

Reduced structural annual operating costs in July 2023 by approximately $14m.EPS in Q1 '24 of $0.58.

Balance Sheet and Return to Shareholders

TTM EBITDA of approximately $107m and outstanding borrowings of approximately $41m. Returned $9m in capital to our shareholders in Q1 '24 via share repurchases and dividends, which approximated 70% of operating cash flows in Q1 '24.

Significant flexibility under our $200m credit facility to return further capital to shareholders regardless of the economic climate.

Our

Technology

Business

Relative

Performance

Top of Class

30.0%	Technology YoY Growth
			21.7%	17.8%
20.0%
9.0%
10.0%	6.8%
	-0.8%
0.0%
					-7.1%
-10.0%
2018	2019	2020	2021	2022	2023

Our Performance

• Drove significant compound growth in our Technology business.
• Technology bill rate of approximately $90 is stable year- over-year and sequentially.
• We continue to further integrate our managed teams and project solutions capabilities within our overall Technology business.

Technology Staffing - Addressable Market

• SIA data above is from the March 2024 update, is not likely reflective of current market conditions and is subject to change in a future update.

Key Statistics

• Average bill rate: ~$90
• Predominant skillset: Application Development
• Assignment length: ~10 months
• Consultants on assignment: ~7,000
• Flex GP%: 25.3%

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Returning Capital to Shareholders

C o n s i s t e n t l y	d e p l o y e d c a p i t a l t o w a r d s s h a r e r e p u r c h a s e s a n d	d i v i d e n d s b e n e f i t i n g s h a r e h o l d e r s ; h a v e r e t u r n e d
r o u g h l y 7 5 %	o f t h e c a p i t a l g e n e r a t e d o v e r t h e l a s t 1 0 + y e a r s

A m o u n t in 000s

			S h a re Re p urch a s es
$120,000								$80.00
								$70.00
					$59.05	$60.20 61.17	69.84
$90,000						e
							$60.00
								ic
								$50.00
$60,000			$21.07					Pr
						$40.00
		$10.38		$35.53	$28.81			kc
				$23.29$28.42				o
		$13.14	$24.69				$30.00St
$30,000	$15.77	$15.07		$19.22				g.
						$20.00
								Av
$0								$10.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024	$0.00
Kforce | 9			Amount $ (in 000s)	Price		YTD

		D i v i d end s		Q4 2023
						Increased
Q4 2013				$ 1 . 2 0	$ 1 . 5 2
	$ 0 . 8 0
Initiated	$ 0 . 4 8
$ 0 . 4 0
$ 0 . 4 4	$ 0 . 7 2	$ 0 . 9 2	$ 1 . 4 4
	In c re a s e	o f n e a rly	4 x	s in c e in itia tio n

Positioned to Excel

O v e r 9 0 % o f o u r r e v e n u e s a r e c o n c e n t r a t e d i n

t e c h n o l o g y s t a f f i n g a n d s o l u t i o n s a n d 1 0 0 % o f r e v e n u e s a r e

g e n e r a t e d d o m e s t i c a l l y.

S t r a t e g i c o p p o r t u n i t y t o f u r t h e r s c a l e o u r m a n a g e d t e a m s a n d p r o j e c t s o l u t i o n s

c a p a b i l i t i e s w i t h i n o u r Te c h n o l o g y b u s i n e s s . Kforce | 10

S t a b l e m a r g i n p r o f i l e	i n
g i v e n m i x o f g r o w t h
Te c h n o l o g y a n d
r e p o s i t i o n i n g e f f o r t s
i n FA

To t a l s h a r e h o l d e r r e t u r n o f o v e r 1 8 0 % s i n c e

2 0 1 7 , w h i c h i s 5 . 5 x t h e R u s s e l l 2 0 0 0 r e t u r n .

C o m m i t t e d t o g r o w i n g p r o f i t a b i l i t y l e v e l s

t h r o u g h p r o d u c t i v i t y

i m p r o v e m e n t s a n d l o w e r s t r u c t u r a l o p e r a t i n g

c o s t s ; d e f i n e d p a t h t o d o u b l e d i g i t o p e r a t i n g m a r g i n s .

P u b l i s h e d o u r 2 0 2 3

S u s t a i n a b i l i t y R e p o r t ;

c o n t i n u e t o a d v a n c e o u r

E S G e f f o r t s

B u s i n e s s m o d e l p r o v i d e s s t r o n g ,

p r e d i c t a b l e c a s h f l o w s a n d d e b t - f r e e b a l a n c e s h e e t

W o r l d C l a s s N e t

P r o m o t e r S c o r e s a n d r e c e n t l y n a m e d t o

F o r t u n e 's 2 0 2 3 l i s t f o r B e s t W o r k p l a c e s i n C o n s u l t i n g &

P r o f e s s i o n a l S e r v i c e s a n d B e s t W o r k p l a c e s f o r W o m e n