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Kelly Services (KELYA) investor relations material
Kelly Services Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 2025 revenue was $1.1 billion, down 11.9% year-over-year, mainly due to lower demand in ETM and SET segments, partially offset by growth in Education; full-year revenue was $4.3 billion, down 1.9%.
Profitability was pressured by lower revenue and gross profit, but cost optimization reduced SG&A by 8.7% reported and 11.1% adjusted.
Technology modernization and AI integration advanced, including rollout of proprietary AI tools and consolidation of SET acquisitions onto a unified platform.
Appointment of a new Chief Growth Officer and search for SET president to drive growth and go-to-market strategies.
Board reconstitution followed Hunt Companies' acquisition of a controlling stake in Class B Common Stock.
Financial highlights
Q4 gross profit was $197 million, with a gross profit rate of 18.8%, down 150 basis points year-over-year; Q4 adjusted EBITDA was $21 million (2.0% margin), down 51.7%.
Q4 loss per share was $3.69; adjusted EPS was $0.16, down from $0.79 prior year.
Full-year loss per share was $7.24, including $7.61 of non-cash negative impacts; adjusted EPS was $1.26.
Full-year adjusted EBITDA was $109.4 million (2.6% margin), down 23.8% year-over-year.
Free cash flow for 2025 was $114.1 million, up from $15.8 million in 2024.
Outlook and guidance
Q1 2026 revenue expected to decline 11–13% year-over-year (3–5% underlying decline); adjusted EBITDA margin expected at ~1.5%.
Modest revenue growth and margin expansion anticipated in the second half of 2026.
Growth initiatives, technology modernization, and efficiency efforts expected to drive sequential improvement through 2026.
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