Kelly Services Inc
NASDAQ:KELYA
Kelly Services Inc
Kelly Services, Inc. engages in staffing and workforce solutions. The company is headquartered in Troy, Michigan and currently employs 7,400 full-time employees. The firm provides workforce solutions in three regions: the Americas; Europe and the Asia-Pacific regions. The firm's segments are Professional & Industrial (P&I), Science, Engineering & Technology (SET), Education, Outsourcing & Consulting (OCG), and International. P&I segment delivers staffing, outcome-based and direct-hire services. SET segment delivers staffing, outcome-based and direct-hire services focused on science and clinical research, engineering, technology and telecommunications specialties. Education segment delivers staffing, direct-hire and executive search services to the K-12.OCG segment delivers Managed Service Provider (MSP), Recruitment Process Outsourcing (RPO), Payroll Process Outsourcing (PPO) and Talent Advisory Services to customers. International segment delivers staffing and direct-hire services.
Kelly Services, Inc. engages in staffing and workforce solutions. The company is headquartered in Troy, Michigan and currently employs 7,400 full-time employees. The firm provides workforce solutions in three regions: the Americas; Europe and the Asia-Pacific regions. The firm's segments are Professional & Industrial (P&I), Science, Engineering & Technology (SET), Education, Outsourcing & Consulting (OCG), and International. P&I segment delivers staffing, outcome-based and direct-hire services. SET segment delivers staffing, outcome-based and direct-hire services focused on science and clinical research, engineering, technology and telecommunications specialties. Education segment delivers staffing, direct-hire and executive search services to the K-12.OCG segment delivers Managed Service Provider (MSP), Recruitment Process Outsourcing (RPO), Payroll Process Outsourcing (PPO) and Talent Advisory Services to customers. International segment delivers staffing and direct-hire services.
Revenue: Q4 revenue was $1.1 billion, at the top end of expectations, but down 11.9% year-over-year; full-year revenue was $4.25 billion, down 1.9%.
Profitability: Q4 adjusted EPS was $0.16, sharply down from $0.79 last year, due to lower profitability and tax impacts; reported loss per share was $3.69.
Margins: Gross profit rate in Q4 declined 150 basis points to 18.8%, hurt by lower revenue, higher employee-related costs, and business mix; adjusted EBITDA margin was 2%, down 170 basis points.
Cost Controls: SG&A expenses were reduced by 8.7% (reported) and 11.1% (adjusted), reflecting ongoing cost optimization, including AI-driven efficiencies.
Segment Trends: Education grew 1.3% in Q4; SET and ETM both showed underlying revenue declines of 5.4%, but these were better than management expected.
AI & Technology: The company is accelerating technology modernization and AI integration, with new platforms deployed to employees and customers to drive productivity.
2026 Outlook: Management expects Q1 revenue to decline 11–13% year-over-year, but sees improvement through 2026, aiming for modest revenue growth and margin expansion in the second half.
Strategic Moves: New partnership with Hunt Companies, changes to the Board, and hiring a Chief Growth Officer signal a focus on growth and value creation.
