# KELLY SERVICES INC (KELYA)

Informational only - not investment advice.

CIK: 0000055135
SIC: 7363 Services-Help Supply Services
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7363 Services-Help Supply Services](/industry/7363/)
Latest 10-K filed: 2026-02-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=55135
Filing source: https://www.sec.gov/Archives/edgar/data/55135/000005513526000053/kelya-20251228.htm

## At a glance

FY2025 · period end 2025-12-28 · filed 2026-02-12 · accession 0000055135-26-000053 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000055135.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,250,900,000 USD | 2025 | verified |
| Net income | -254,100,000 USD | 2025 | verified |
| Assets | 2,250,600,000 USD | 2025 | verified |
| Free cash flow | 114,100,000 USD | 2025 | computed |
| Net margin | -5.98% | 2025 | computed |
| Operating margin | -1.64% | 2025 | computed |
| Revenue YoY | -1.87% | 2025 | computed |
| ROE | -26.02% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | KELYA | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -6.0% | -0.1% | 23 | 14 |
| Operating margin | -1.6% | 0.3% | 38 | 14 |
| Revenue growth | -1.9% | -2.4% | 54 | 14 |
| FCF margin | 2.7% | 3.8% | 33 | 13 |
| ROE | -26.0% | -0.6% | 17 | 13 |
| ROA | -11.3% | -0.2% | 23 | 14 |
| Liabilities / equity | 1.30 | 1.92 | 33 | 13 |
| Current ratio | 1.54 | 1.66 | 46 | 14 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7363 Services-Help Supply Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4250900000 | USD | 2025 | 2026-02-12 |
| Net income | -254100000 | USD | 2025 | 2026-02-12 |
| Assets | 2250600000 | USD | 2025 | 2026-02-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000055135.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 5,374,400,000 | 5,513,900,000 | 5,355,600,000 | 4,516,000,000 | 4,909,700,000 | 4,965,400,000 | 4,835,700,000 | 4,331,800,000 | 4,250,900,000 |
| Net income | 120,800,000 | 71,600,000 | 22,900,000 | 112,400,000 | -72,000,000 | 156,100,000 | -62,500,000 | 36,400,000 | -600,000 | -254,100,000 |
| Operating income | 63,200,000 | 83,300,000 | 87,400,000 | 81,800,000 | -93,600,000 | 48,600,000 | 14,800,000 | 24,300,000 | -15,100,000 | -69,800,000 |
| Gross profit | 906,300,000 | 954,100,000 | 972,200,000 | 968,400,000 | 827,600,000 | 919,200,000 | 1,011,800,000 | 961,400,000 | 882,600,000 | 853,000,000 |
| Diluted EPS | 3.08 | 1.81 | 0.58 | 2.84 | -1.83 | 3.91 | -1.64 | 0.98 | -0.02 | -7.24 |
| Operating cash flow | 40,100,000 | 70,800,000 | 61,400,000 | 102,200,000 | 186,000,000 | 85,000,000 | -76,300,000 | 76,700,000 | 26,900,000 | 122,600,000 |
| Capital expenditures | 12,700,000 | 24,600,000 | 25,600,000 | 20,000,000 | 15,500,000 | 11,200,000 | 12,000,000 | 15,300,000 | 11,100,000 | 8,500,000 |
| Dividends paid | 10,700,000 | 11,600,000 | 11,800,000 | 11,900,000 | 3,000,000 | 4,000,000 | 10,600,000 | 11,000,000 | 10,900,000 | 11,000,000 |
| Assets | 2,028,100,000 | 2,378,200,000 | 2,314,400,000 | 2,480,600,000 | 2,561,900,000 | 2,894,200,000 | 2,663,800,000 | 2,581,600,000 | 2,632,300,000 | 2,250,600,000 |
| Stockholders' equity | 1,012,000,000 | 1,151,500,000 | 1,159,500,000 | 1,264,500,000 | 1,203,000,000 | 1,336,200,000 | 1,254,200,000 | 1,253,700,000 | 1,234,600,000 | 976,500,000 |
| Cash and cash equivalents | 29,600,000 | 32,500,000 | 35,300,000 | 25,800,000 | 223,000,000 | 112,700,000 | 153,700,000 | 125,800,000 | 39,000,000 | 33,000,000 |
| Free cash flow | 27,400,000 | 46,200,000 | 35,800,000 | 82,200,000 | 170,500,000 | 73,800,000 | -88,300,000 | 61,400,000 | 15,800,000 | 114,100,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 1.33% | 0.42% | 2.10% | -1.59% | 3.18% | -1.26% | 0.75% | -0.01% | -5.98% |
| Operating margin |  | 1.55% | 1.59% | 1.53% | -2.07% | 0.99% | 0.30% | 0.50% | -0.35% | -1.64% |
| Return on equity | 11.94% | 6.22% | 1.97% | 8.89% | -5.99% | 11.68% | -4.98% | 2.90% | -0.05% | -26.02% |
| Return on assets | 5.96% | 3.01% | 0.99% | 4.53% | -2.81% | 5.39% | -2.35% | 1.41% | -0.02% | -11.29% |
| Liabilities / equity | 1.00 | 1.07 | 1.00 | 0.96 | 1.13 | 1.17 | 1.12 | 1.06 | 1.13 | 1.30 |
| Current ratio | 1.58 | 1.49 | 1.56 | 1.59 | 1.67 | 1.45 | 1.52 | 1.59 | 1.65 | 1.54 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/KELYA/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000055135.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-10-02 |  |  | -0.43 | reported discrete quarter |
| 2023-Q1 | 2023-04-02 |  |  | 0.29 | reported discrete quarter |
| 2023-Q2 | 2023-07-02 |  |  | 0.20 | reported discrete quarter |
| 2023-Q3 | 2023-10-01 | 1,118,000,000 | 6,500,000 | 0.18 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,232,200,000 | 11,200,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 1,045,100,000 | 25,200,000 | 0.70 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,057,500,000 | 4,500,000 | 0.12 | reported discrete quarter |
| 2024-Q3 | 2024-09-29 | 1,038,100,000 | 700,000 | 0.02 | reported discrete quarter |
| 2024-Q4 | 2024-12-29 | 1,191,100,000 | -31,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-30 | 1,164,900,000 | 5,600,000 | 0.16 | reported discrete quarter |
| 2025-Q2 | 2025-06-29 | 1,101,800,000 | 18,400,000 | 0.52 | reported discrete quarter |
| 2025-Q3 | 2025-09-28 | 935,000,000 | -150,100,000 | -4.26 | reported discrete quarter |
| 2025-Q4 | 2025-12-28 | 1,049,200,000 | -128,800,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-29 | 1,040,700,000 | -5,900,000 | -0.17 | reported discrete quarter |
| 2026-Q2 | 2026-06-28 | 1,038,200,000 | 10,800,000 | 0.31 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from KELYA's latest 10-K: [/company/KELYA/business/](/company/KELYA/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from KELYA's latest 10-K: [/company/KELYA/risk-factors/](/company/KELYA/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/55135/000005513526000161/kelya-20260628.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-28

Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Executive Overview

In the second quarter, we delivered sequential improvement in each business across Kelly. The discrete impact of demand reductions among three large ETM customers and the U.S. federal government, which we initially disclosed in the second quarter of 2025, is lessening but remains visible in our results. Trends among these customers who continue to do business with Kelly remained stable on a sequential basis.

In ETM, staffing revenue excluding the discrete impacts returned to positive year-over-year growth driven by broad-based demand across customers and verticals, Business Process Outsourcing excluding contact center solutions also pivoted to growth in the quarter and Talent Solutions delivered another quarter of revenue growth as new customer wins came online and demand continued to increase. In SET, trends in each specialty vertical improved compared to the first quarter, with the Telecom specialty delivering another quarter of year-over-year growth. In Education, results improved modestly on a sequential basis while we continued to experience pressure from prior year delayed contract decisions and enrollment declines. In each business, we continued to align resources with demand and maintained a disciplined approach to expense management overall as part of our ongoing focus on efficiency.

Our ability to deliver sequential improvement across the enterprise while driving progress on our strategic initiatives in the second quarter reflects our enhanced focus on execution and operational discipline. Our progress will position us to capitalize on improving demand trends, and driving profitable growth and long-term value creation.

Financial Measures

Reported percentage changes are computed based on millions. Prior year percentage changes were computed based on actual amounts in thousands. Prior year percentage changes have been recast to conform to the new presentation, which is calculated based on millions. All dollar amounts are presented in millions, except for per share data.

Days sales outstanding (“DSO”) represents the number of days that sales remain unpaid for the period being reported. DSO is calculated by dividing average net sales per day (based on a rolling three-month period) into trade accounts receivable, net of allowances at period end. Where secondary supplier revenues are recorded on a net basis (net of secondary supplier expense), secondary supplier revenue is included in the daily sales calculation in order to properly reflect the gross revenue amounts billed to the customer.

NM (not meaningful) in the following tables is used in place of percentage changes where: the change is in excess of 500%, the change involves a comparison between earnings and loss amounts, or the comparison amount is zero.

24

Results of Operations

Total Company

(in millions)

[[GREPCENT_TABLE]]
[["","Second Quarter","June Year-to-Date"],["","2026","2025","% Change","2026","2025","% Change"],["Revenue from services","$","1,038.2","","$","1,101.8","","(5.8)%","$","2,078.9","","$","2,266.7","","(8.3)%"],["Gross profit","212.0","","225.5","","(6.0)","408.4","","462.0","","(11.6)"],["SG&A expenses excluding integration, realignment, restructuring charges, and depreciation and amortization","181.2","","188.8","","(4.0)","364.1","","391.0","","(6.9)"],["Integration, realignment and restructuring charges","2.9","","6.0","","(51.7)","7.6","","16.7","","(54.5)"],["Total SG&A expenses excluding depreciation and amortization","184.1","","194.8","","(5.5)","371.7","","407.7","","(8.8)"],["Depreciation and amortization","11.8","","12.5","","(5.6)","23.5","","25.3","","(7.1)"],["Total SG&A expenses","195.9","","207.3","","(5.5)","395.2","","433.0","","(8.7)"],["Gain on sale of EMEA staffing operations","\u2014","","(4.0)","","NM","\u2014","","(4.0)","","NM"],["Asset impairment charge","\u2014","","\u2014","","NM","2.2","","\u2014","","NM"],["Earnings from operations","16.1","","22.2","","(27.5)","11.0","","33.0","","(66.7)"],["Other income (expense), net","(1.7)","","(2.3)","","26.1","(3.3)","","(5.5)","","40.0"],["Earnings before taxes","14.4","","19.9","","(27.6)","7.7","","27.5","","(72.0)"],["Income tax expense","3.0","","0.9","","233.3","2.2","","2.7","","(18.5)"],["Net earnings","$","11.4","","$","19.0","","(40.0)%","$","5.5","","$","24.8","","(77.8)%"],["Gross profit rate","20.4","%","20.5","%","(0.1)","pts.","19.6","%","20.4","%","(0.8)","pts."]]
[[/GREPCENT_TABLE]]

Second Quarter Results

Revenue from services in the second quarter decreased 5.8% year-over-year with decreases in the ETM, SET, and Education segments. Compared to the second quarter of 2025, the decrease is primarily due to declines in revenue from staffing services of 9.5%, partially offset by increases in revenue from talent solutions of 6.3% from the prior year.

Gross profit decreased 6.0% year-over-year, primarily driven by lower revenue volume. The gross profit rate decreased 10 basis points (“bps”) to 20.4%, primarily due to changes in business mix, partially offset by lower employee-related costs. The gross profit rate decreased in the SET and Education segments and increased in the ETM segment.

Total SG&A expenses decreased 5.5% year-over-year, primarily due to expense management actions to reduce volume-related costs, and reflects the benefits of the ongoing structural actions including integration and realignment efforts. SG&A expenses in the second quarter of 2026 include $2.9 million of integration and realignment costs related to continuation of ongoing initiatives and $0.3 million of executive transition charges. Included in SG&A expenses in the second quarter of 2025 were $6.0 million of integration and realignment costs related to initiatives to integrate MRP and align our processes, $0.2 million of executive transition charges, and $0.1 million of transaction-related costs arising from the sale of our EMEA staffing operations. Excluding integration and realignment, transaction, executive transition charges, and depreciation and amortization, SG&A expenses decreased 4.0% from the prior year.

The gain on sale of EMEA staffing operations relates to the January 2024 sale. In the second quarter of 2025, we recognized a gain of $4.0 million upon the settlement of working capital and other adjustments.

Income tax expense was $3.0 million for the second quarter of 2026 compared to income tax expense of $0.9 million for the second quarter of 2025, driven by changes in pretax income and the benefit of work opportunity tax credits in the second quarter of 2025.

June Year-to-Date Results

Revenue from services June year-to-date 2026 decreased 8.3% year-over-year with decreases in the ETM, SET, and Education segments. Compared to the June year-to-date 2025, the decrease is primarily due to declines in revenue from staffing services

25

and outcome-based services of 11.2% and 5.0%, respectively, partially offset by growth in revenue from talent solutions of 4.7%.

Gross profit decreased 11.6%, largely driven by lower revenue volume. The gross profit rate decreased 80 bps to 19.6%, primarily due to higher employee-related costs in the beginning part of the year.

Total SG&A expenses decreased 8.7%, primarily due to expense management actions to reduce volume-related costs and reflects the benefits of the ongoing structural actions including integration and realignment efforts. SG&A expenses in the first six months of 2026 include $7.6 million of integration and realignment costs related to continuation of ongoing initiatives, $1.8 million of executive transition charges and $0.8 million of transaction costs primarily related to costs incurred in connection with our controlling shareholder change in the first quarter of 2026. Included in SG&A expenses in the first six months of 2025 were $16.7 million of integration costs related to initiatives to integrate MRP and align our processes, $0.5 million of executive transition charges and $0.4 million of transaction costs related to the sale of our EMEA staffing operations.

The asset impairment charge of $2.2 million in the first quarter of 2026 relates to certain right-of-use assets and reflects our ongoing realignment of our lease portfolio.

The gain on sale of EMEA staffing operations relates to the January 2024 sale. In the first six months of 2025, we recognized a gain of $4.0 million upon the settlement of working capital and other adjustments.

Income tax expense was $2.2 million for the first six months of 2026 compared to income tax expense of $2.7 million for the first six months of 2025, with the change primarily driven by changes in pretax income and the benefit of work opportunity tax credits in the first six months of 2025.

26

Operating Results By Segment

(in millions)

[[GREPCENT_TABLE]]
[["","Second Quarter","June Year-to-Date"],["","2026","2025","% Change","2026","2025","% Change"],["Revenue from Services:"],["Enterprise Talent Management","$","485.5","","$","516.4","","(6.0)%","$","944.7","","$","1,045.5","","(9.6)%"],["Science, Engineering & Technology","301.6","","321.1","","(6.1)","590.8","","648.4","","(8.9)"],["Education","253.5","","265.3","","(4.4)","547.6","","574.3","","(4.6)"],["Less: Intersegment revenue","(2.4)","","(1.0)","","140.0","(4.2)","","(1.5)","","180.0"],["Consolidated Total","$","1,038.2","","$","1,101.8","","(5.8)%","$","2,078.9","","$","2,266.7","","(8.3)%"]]
[[/GREPCENT_TABLE]]

Second Quarter Results

The decrease in ETM revenue from services of 6.0% was primarily driven by a decrease of 10.0% in staffing services resulting from lower hours volume primarily at certain large customers and a decrease of 9.3% from outcome-based services primarily due to the relationship exit of a large contact-center customer that ended as of the third quarter of 2025. Permanent placement fees decreased 41.4%, reflecting lower market demand. These decreases were partially offset by an increase of 6.3% in talent solutions driven by new customer wins and volume increases.

The decrease in SET revenue from services of 6.1% was primarily driven by declines in hours volume in our staffing specialties, largely from changes in demand related to U.S. federal government contractors and IT services, partially offset by an increase in permanent placement fees.

The decrease in Education revenue from services of 4.4% was driven primarily by a reduction in demand in key markets due to declines in student enrollment.

June Year-to-Date Results

The decrease in ETM revenue from services of 9.6% was primarily driven by a decrease of 13.5% in staffing services resulting from lower hours volume primarily at certain large customers and a decrease of 14.8% from outcome-based services primarily due to the relationship exit of a large contact-center customer that ended as of the third quarter of 2025. Permanent placement fees decreased 32.7%, reflecting lower market demand. These decreases were partially offset by an increase of 4.7% in talent solutions driven by new customer wins and volume increases.

The decrease in SET revenue from services of 8.9% was primarily driven by declines in hours volume in our staffing specialties, largely from changes in demand related to U.S. federal government contractors and IT services, partially offset by an increase in permanent placement fees.

The decrease in Education revenue from services of 4.6% was driven primarily by the impact of prior year delayed contract decisions, weather-related school closures and a reduction in demand in key markets due to declines in student enrollment.

27

Operating Results By Segment (continued)

(in millions)

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/55135/000005513526000053/kelya-20251228.htm
Complete FY 2025 MD&A: /company/KELYA/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-12
Report date: 2025-12-28

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Executive Overview

In 2025, Kelly continued to advance its multi-year transformation, building on the decisive actions taken in 2023 and 2024 to streamline the portfolio, sharpen strategic focus, and expand into higher-margin, higher-growth specialties. We remained focused on capturing a greater share of growth, converting a higher proportion of revenue into bottom-line performance, and positioning Kelly to benefit from an eventual recovery in the staffing environment.

Kelly entered 2025 with a simplified operating model concentrated on North American staffing, business process outsourcing (“BPO”) and specialty solutions and global Managed Service Provider (“MSP”) and recruitment process outsourcing (“RPO”) offerings, following the 2024 sale of its European staffing operations and the Ayers Group and acquisition of Motion Recruitment Partners (“MRP”) and Children’s Therapy Center (“CTC”). These portfolio actions reflected a deliberate shift toward businesses with more attractive growth profiles, scalable platforms, and improved EBITDA margin potential.

We continued to execute our refreshed go-to-market strategy, designed to deliver the full suite of Kelly solutions to large enterprise customers and capture a greater share of wallet while maintaining high service levels for customers of all sizes. This strategy was supported by ongoing commitment to delivering greater effectiveness and data-driven sales processes and initiatives.

Critical to positioning Kelly for future growth was the hiring of Chris Layden as President and Chief Executive Officer in September 2025. Layden succeeded Peter Quigley, who announced his intention to retire in February 2025. Layden brings dynamic industry leadership and extensive experience leading organizations through periods of significant change, while delivering growth and strengthening competitive positioning. Layden’s hiring underscores Kelly’s commitment to enhancing its operational capabilities and service delivery while transforming its technology processes and platforms.

During 2025, Kelly faced a dynamic macroeconomic environment characterized by sluggish labor market demand and policy shifts which had significant impacts on the industry, including Kelly. In the face of these headwinds, Kelly demonstrated measurable progress in cost discipline and selective market strength. At the same time, we accelerated structural and demand-driven cost optimization initiatives, including technology modernization, acquisition integration and process efficiencies to enhance execution and agility while positioning Kelly to capture market share and improve profitability when staffing market conditions stabilize.

Structural cost actions, operating model simplification, acquisition integration and portfolio reshaping are expected to support continued improvement in Kelly’s growth prospects and financial profile as we move through 2026 and beyond.

Financial Measures

Reported percentage changes are computed based on millions. Prior year percent changes were computed based on actual amounts in thousands. Prior year percent changes have been recast to conform to the new presentation which is calculated based on millions. All dollar amounts are presented in millions except for per share data.

Days sales outstanding (“DSO”) represents the number of days that sales remain unpaid for the period being reported. DSO is calculated by dividing average net sales per day (based on a rolling three-month period) into trade accounts receivable, net of allowances at the period end. Although secondary supplier revenues are recorded on a net basis (net of secondary supplier expense), secondary supplier revenue is included in the daily sales calculation in order to properly reflect the gross revenue amounts billed to the customer.

NM (not meaningful) in the following tables is used in place of percentage changes where: the change is in excess of 500%, the change involves a comparison between earnings and loss amounts, or the comparison amount is zero.

26

Results of Operations

Total Company

(in millions)

[[GREPCENT_TABLE]]
[["","2025","2024","% Change"],["Revenue from services","$","4,250.9","","$","4,331.8","","(1.9)%"],["Gross profit","853.0","","882.6","","(3.4)"],["SG&A expenses excluding integration, realignment, restructuring charges, and depreciation and amortization","747.1","","750.8","","(0.5)"],["Integration, realignment and restructuring charges","27.8","","16.1","","72.7"],["Total SG&A expenses excluding depreciation and amortization","774.9","","766.9","","1.0"],["Depreciation and amortization","51.0","","51.5","","(1.0)"],["Total SG&A expenses","825.9","","818.4","","0.9"],["Goodwill impairment charge","102.0","","72.8","","40.1"],["Asset impairment charge","\u2014","","13.5","","NM"],["Gain on sale of EMEA staffing operations","(4.1)","","(1.6)","","(156.3)"],["Gain on sale of assets","(1.0)","","(5.4)","","81.5"],["Earnings (loss) from operations","(69.8)","","(15.1)","","(362.3)"],["Other income (expense), net","(9.0)","","(6.8)","","(32.4)"],["Earnings (loss) before taxes","(78.8)","","(21.9)","","(259.8)"],["Income tax expense (benefit)","175.3","","(21.3)","","NM"],["Net earnings (loss)","$","(254.1)","","$","(0.6)","","NM"],["Gross profit rate","20.1%","20.4%","(0.3) pts."]]
[[/GREPCENT_TABLE]]

The total company discussion that follows focuses on 2025 results compared to 2024. For a discussion of total company 2024 results compared to 2023, see “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 29, 2024, filed on February 13, 2025.

In the segment level discussions that follow the total company discussion, the comparative results for 2024 and 2023 have been recast to conform to the new structure. Our operating segments, which also represent our reportable segments, are based on the organizational structure for which financial results are regularly evaluated by our chief operating decision-maker (“CODM”, our CEO) to determine resource allocation and assess performance.

We combined our former P&I and OCG segments into the ETM segment in the first quarter of 2025, responding to a shift in customer demand toward integrated workforce solutions and enabling a more streamlined and efficient go-to-market approach. We also realigned certain customers from the SET segment to the ETM segment to support this integrated strategy. Also in the first quarter of 2025, we moved MRP's Sevenstep business from the SET segment to the ETM segment as part of the broader integration of MRP. The 2024 and 2023 ETM and SET segment information has been recast to conform to the new structure.

Our three reportable segments: (1) Enterprise Talent Management, (2) Science, Engineering & Technology and (3) Education, reflect the specialty services we provide to customers and represent how the business is organized internally.

2025 vs. 2024

Revenue from services decreased 1.9% year-over-year with decreases in the ETM and SET segments, partially offset by an increase in the Education segment and by the acquisition of MRP in May 2024. Excluding the impact from the acquisition, revenue from services decreased 6.2%. Compared to last year and excluding the impact from the acquisition, revenue from staffing services decreased 6.0% and revenue from outcome-based services decreased 9.4% from the prior year. Revenue from talent solutions increased 1.1% and permanent placement revenue decreased 20.9% from the prior year, excluding the impact from the acquisition.

27

Gross profit decreased 3.4% on lower revenue volume, partially offset by the acquisition of MRP. Excluding the impact from the acquisition, gross profit decreased 9.7%. The gross profit rate decreased 30 basis points to 20.1% and was favorably impacted by the acquisition of MRP. Excluding the acquisition, the gross profit rate declined 70 basis points. The decrease is due primarily to changes in business mix, higher employee-related costs and lower permanent placement revenue. Permanent placement revenue has higher gross profit due to very low direct costs of services and thus has a disproportionate impact on gross profit rates. The gross profit rate decreased in the ETM and SET segments and had a slight increase in the Education segment.

Total selling, general and administrative (“SG&A”) expenses increased 0.9%, primarily due to the acquisition of MRP. Excluding the impact of the acquisition, SG&A expenses decreased 4.8%. Included in SG&A expenses in 2025 were $27.8 million of integration and realignment costs related to initiatives to integrate MRP and other prior acquisitions, consolidating operating segments and further aligning processes and technology. Also included in SG&A was $2.7 million of executive transition charges and $0.8 million of transaction costs. Included in SG&A expenses in 2024 were $17.9 million of transaction costs arising from the sale of our EMEA staffing operations and acquisition of MRP, $10.0 million of integration costs related to initiatives to integrate MRP and aligning Company processes and technology, $6.1 million of restructuring and transformation costs and $2.3 million of executive transition charges. Excluding the impact of the acquisition, as well as transaction, integration, restructuring and executive transition charges—and excluding depreciation and amortization—SG&A expenses decreased 4.7% primarily due to momentum on structural and demand-driven expense optimization initiatives and lower variable, performance-based incentive compensation expenses in response to lower revenue volume. Depreciation and amortization represents the total company depreciation and amortization of intangibles, including the amortization of hosted software.

The goodwill impairment charge in 2025 was primarily driven by reduced demand, integration of MRP and Softworld acquisitions and the realignment of reporting units in the SET segment. The goodwill impairment charge in 2024 related to our Softworld reporting unit which delivers technology staffing and workforce services and is included in the SET segment. Changes in internal projections of financial performance due to continued challenging market conditions resulted in a lower estimated fair value for the reporting unit and an impairment charge of $102.0 million and $72.8 million for 2025 and 2024, respectively. The impairment of assets in 2024 represents the impairment of certain right-of-use (“ROU”) assets related to our leased headquarters facility.

Loss from operations in 2025 totaled $69.8 million, compared to a loss from operations of $15.1 million in 2024. The decrease is primarily related to the goodwill impairment charges, increased costs for integration, realignment and restructuring activities, the impact of lower revenue and gross profits and higher SG&A as compared to the prior year.

The change in other income (expense), net is primarily the result of an increase in interest expense related to the long-term debt taken on in 2024 in conjunction with the acquisition of MRP.

Income tax expense was $175.3 million in 2025 compared to an income tax benefit of $21.3 million in 2024. The 2025 expense was impacted by $197.6 million of federal and state valuation allowances established against U.S. general business credit carryforwards and other deferred tax assets, and a $6.2 million impact from a non-tax deductible goodwill impairment charge. This was offset by an $18.4 million benefit from the impairment of tax-deductible goodwill. In 2024, the benefit was driven by an $18.4 million tax benefit from the impairment of tax-deductible goodwill.

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Operating Results By Segment

(in millions)

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/KELYA/mda/fy2025/
All MD&A years: /company/KELYA/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/KELYA/mda/fy2024/): filed 2025-02-13; accession 0000055135-25-000007 (https://www.sec.gov/Archives/edgar/data/55135/000005513525000007/kelya-20241229.htm)
- [FY 2023 MD&A](/company/KELYA/mda/fy2023/): filed 2024-02-20; accession 0000055135-24-000007 (https://www.sec.gov/Archives/edgar/data/55135/000005513524000007/kelya-20231231.htm)
- [FY 2023 MD&A](/company/KELYA/mda/a-0000055135-23-000005/): filed 2023-02-16; accession 0000055135-23-000005 (https://www.sec.gov/Archives/edgar/data/55135/000005513523000005/kelya-20230101.htm)
- [FY 2022 MD&A](/company/KELYA/mda/fy2022/): filed 2022-02-17; accession 0000055135-22-000006 (https://www.sec.gov/Archives/edgar/data/55135/000005513522000006/kelya-20220102.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7363 Services-Help Supply Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/KELYA.md · JSON record: /company/KELYA.json · verified financials: /company/KELYA/financials.json / /company/KELYA/financials.csv · machine TOC for the whole site: /llms.txt