Kelly Services
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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.
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Q4 2025 earnings summary12 Feb, 2026

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.

Detail H2 2026 organic growth and margin drivers
Address SET/ETM gross margin pressure strategy
What is the long-term tax strategy post-valuation allowance?
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Frequently asked questions

Kelly Services Inc provides workforce solutions and staffing services, including temporary, permanent, and contract staffing. The company serves clients across sectors such as education, life sciences, engineering, and manufacturing. It also offers outsourcing and consulting services. The company is headquartered in Troy, Michigan, and its shares are listed on the NASDAQ.

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