Kforce Inc.

Through FY2017, Kforce operated a branch-based staffing model serving a mix of SMB and mid-market clients alongside large enterprise accounts. The company’s SG&A ratio was approximately 24.6% of revenue in FY2017 (restated for continuing operations), reflecting a distributed cost structure across the branch network. Kforce’s Technology segment gross margin was 28.3% in FY2017 — a thin-margin, high-volume staffing profile. Total revenue for continuing operations was approximately $1.25 billion. The company’s own 10-K described its strategy as “diversifying our portfolio to grow revenues with Fortune 500 companies” while maintaining a broad client base. Revenue per internal associate was approximately $522,000 in FY2017 (derived: $1.36B revenue including GS / ~2,600 internal associates).

Starting in FY2018, Kforce reorganized its technology staffing business (roughly 88% of FY2022 revenue) to reduce branch overhead and emphasize larger, longer-duration engagements:

• Branch rationalization: Reduced the branch footprint from 62 locations in FY2017 to 55 in FY2022, eliminating positions tied to local SMB account management and reinvesting headcount in centralized national delivery teams serving larger accounts.
• KforceONE platform investment: Built KforceONE, a proprietary talent management and analytics platform providing enterprise clients with dashboards on contractor utilization, spend, and compliance. This tool was positioned as a differentiator for large accounts requiring vendor-of-record or MSP-adjacent service models.
• Headcount efficiency: Internal associate headcount declined from approximately 2,600 in FY2017 to approximately 2,000 by FY2021–2022, while revenue grew. The reduction was concentrated in local branch sales roles, not delivery.
• Government Solutions exit: Divested the Government Solutions segment (April 2019), eliminating a lower-margin, compliance-intensive business and allowing capital and management focus to concentrate on commercial technology staffing.

• Revenue growth: Total revenue from continuing operations grew from approximately $1.25 billion (FY2017) to $1.71 billion (FY2022), a 37% increase over five years (Kforce 10-K FY2022, filed February 2023).