Kelly Services Q3 adjusted earnings fall to $0.07/share
Fourth-quarter outlook includes an extra fiscal week, which benefits revenue growth by approximately 3 points but negatively impacts adjusted EBITDA.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Kelly Services, Inc. (KELYA) reported third-quarter 2026 revenue of $927.2 million, down 0.8% year over year, while underlying revenue grew 2.3% excluding approximately 3.1% in discrete impacts. Adjusted EBITDA increased 29.1% to $21.3 million, and adjusted EBITDA margin rose 50 basis points to 2.3%. GAAP operating earnings were $0.6 million, versus a $102.1 million loss a year earlier that included a $102.0 million goodwill impairment; adjusted diluted earnings per share were $0.07 versus $0.17.
For the first 39 weeks of 2026, revenue fell 6.1% to $3,006.1 million and adjusted EBITDA declined 22.9% to $68.2 million. Kelly expects fourth-quarter revenue flat to up 1% year over year and adjusted EBITDA margin expansion of 180 to 200 basis points, to 3.8% to 4.0%; full-year outlook calls for a mid-single-digit revenue decline and a 2.6% to 2.7% margin. The board declared a $0.075-per-share dividend payable December 2, 2026, and renewed a share repurchase authorization of up to $50.0 million of Class A common stock without an expiration date.
1 point · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter adjusted EBITDA rose 29.1% to $21.3 million.
Negative
- Moderate pointFirst-39-week revenue declined 6.1% to $3,006.1 million.
- Moderate pointFirst-39-week adjusted EBITDA fell 22.9% to $68.2 million.
Filing Explained
The added liquidity detail is that at
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Third-quarter revenue: $927.2 million
Underlying revenue growth: 2.3%
Adjusted EBITDA: $21.3 million
+5 more
8 metrics
Third-quarter revenue
$927.2 million
Third quarter 2026; down 0.8% year over year
Underlying revenue growth
2.3%
Third quarter 2026, excluding approximately 3.1% in discrete impacts
Adjusted EBITDA
$21.3 million
Third quarter 2026; up 29.1% year over year
Adjusted EBITDA margin
2.3%
Third quarter 2026; up 50 basis points year over year
Revenue
$3,006.1 million
First 39 weeks of 2026; down 6.1% year over year
Adjusted EBITDA
$68.2 million
First 39 weeks of 2026; down 22.9% year over year
Dividend
$0.075 per share
Declared November 4, 2026; payable December 2, 2026
Class A common stock repurchase authorization
Up to $50.0 million
Renewed November 4, 2026, without an expiration date
Key Terms
underlying revenue, Adjusted EBITDA margin, goodwill impairment charge, Free Cash Flow
4 terms
underlying revenue financial
"resulting in an underlying revenue increase of approximately 2.3%"
Underlying revenue is a company’s sales figure adjusted to remove one-time or unusual items—like the effects of currency swings, big one-off deals, or the impact of recent acquisitions or disposals—so it shows the steady, core income from normal business activity. Investors care because it strips out short-term noise and gives a clearer view of whether the business’s regular sales are growing or shrinking, much like isolating the steady beat in a noisy song to judge the rhythm.
Adjusted EBITDA margin financial
"Adjusted EBITDA margin of 2.3%, an increase of 50 bps"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
goodwill impairment charge financial
"Prior year operating loss reflected a non-cash goodwill impairment charge"
Goodwill impairment charge is an accounting write-down taken when the extra value a company recorded from buying another business — things like reputation, customer relationships or brand name — is later judged to be worth less than originally paid. For investors it matters because the charge reduces reported profits and shareholder equity, often signaling that an acquisition didn’t deliver expected benefits and prompting closer scrutiny of future cash flow and management decisions.
Free Cash Flow financial
"Year-to-Date Free Cash Flow"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Earnings Snapshot
Revenue: $927.2 million · Guidance included
Third quarter of 2026 (13 weeks ended September 27, 2026)
Revenue
$927.2 million
Down 0.8% year over year
Adjusted EBITDA
$21.3 million
Up 29.1% year over year
Adjusted EBITDA margin
2.3%
Up 50 basis points year over year
Adjusted diluted earnings per share
$0.07
Compared with $0.17 in the third quarter of 2025
Guidance
Fourth-quarter revenue flat to up 1% year over year and adjusted EBITDA margin expansion of 180 to 200 basis points, resulting in a margin of 3.8% to 4.0%. Full-year outlook is a mid-single-digit total revenue decline and adjusted EBITDA margin of 2.6% to 2.7%.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Kelly Services' (KELYA) Q3 2026 results?
Kelly Services reported revenue of $927.2 million, down 0.8% year over year, and underlying revenue growth of 2.3%. Adjusted EBITDA was $21.3 million, up 29.1%, and adjusted diluted earnings per share was $0.07, compared with $0.17 a year earlier.
What is Kelly Services' (KELYA) 2026 outlook?
For the fourth quarter, Kelly expects revenue to be flat to up 1% year over year and adjusted EBITDA margin expansion of 180 to 200 basis points, resulting in a 3.8% to 4.0% margin. Full-year outlook is a mid-single-digit total revenue decline and adjusted EBITDA margin of 2.6% to 2.7%. The fourth quarter includes an extra fiscal week that benefits revenue growth by approximately 3 points but negatively impacts adjusted EBITDA.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 05, 2026
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(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (IRS Employer | ||||||
| of incorporation) | File Number) | Identification No.) | ||||||
-------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(248 ) 362-4444
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(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
1
Item 2.02. Results of Operations and Financial Condition
Kelly Services, Inc. (the “Company”) today released financial information containing highlighted financial data for the three and nine months ended September 27, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | ||||
99.1 | Press Release dated November 5, 2026. | ||||
99.2 | Presentation materials for November 5, 2026 conference call. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| November 5, 2026 | ||||||||
| /s/ Nicholas A. Zuhlke Nicholas A. Zuhlke Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer) | ||||||||
3
EXHIBIT INDEX
| Exhibit No. | Description | ||||
| 99.1 | Press Release dated November 5, 2026. | ||||
| 99.2 | Presentation materials for November 5, 2026 conference call. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
4
Exhibit 99.1
Kelly Reports
Third-Quarter 2026 Earnings
TROY, Mich. (November 5, 2026) – Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the third quarter of 2026.
•Q3 revenue of $0.9 billion, down 0.8% year-over-year, an improvement of 500 basis points (“bps”) versus the prior quarter; underlying revenue, which excludes previously disclosed discrete impacts, grew 2.3% year-over-year
•ETM underlying revenue grew 7.7% (2.4% reported) while SET underlying revenue decreased 0.8% (2.0% reported). The underlying performance for ETM and SET improved 460 bps and 220 bps versus the prior quarter, respectively
•Q3 operating earnings of $0.6 million; $6.1 million of operating earnings on an adjusted basis
•Adjusted EBITDA of $21.3 million and adjusted EBITDA margin of 2.3%, which expanded 50 bps on a year-over-year basis resulting from improved gross profit rate and continued SG&A discipline
Chris Layden, chief executive officer, said, “In the third quarter, we delivered results above the midpoint of our guidance, driven by meaningful progress on our growth and efficiency initiatives along with increasingly constructive demand trends. Year-over-year revenue improved sequentially for a third consecutive quarter, and we drove adjusted EBITDA margin expansion over the prior year period. Our performance reflects positive operational momentum across much of our portfolio, as ETM pivoted to positive year-over-year revenue growth in the quarter and SET delivered another quarter of sequential revenue improvement. We remain well positioned to capitalize on increasing demand while continuing to drive margin expansion and long-term value creation.”
Financial Results for the 13-week period ended September 27, 2026:
Revenue of $0.9 billion, a 0.8% decrease compared to the corresponding quarter of 2025 and an improvement of 500 bps versus the prior quarter. Discrete impacts associated with the previously disclosed reduced demand for U.S. federal government contractors in the SET segment and from three large commercial customers in the ETM segment totaled approximately 3.1%, resulting in an underlying revenue increase of approximately 2.3%. Underlying revenue performance includes overall growth from improved demand and new business in the ETM segment, including growth in staffing and each of the talent solutions specialties. Offsetting the growth were declines in SET, which showed continued sequential improvement, and Education segments. Within the SET segment, the Science and Engineering specialties grew year-over-year, while the Technology specialty continued to strengthen sequentially. The Education segment continues to be impacted by declines in demand primarily driven by reduced student enrollment in key markets.
Operating earnings of $0.6 million, compared to a loss of $102.1 million reported in the third quarter of 2025. Prior year operating loss reflected a non-cash goodwill impairment charge totaling $102.0 million. Adjusted operating earnings1 were $6.1 million in the third quarter of 2026 and $4.3 million in the third quarter of 2025. Adjusted EBITDA1 of $21.3 million, an increase of 29.1% versus the prior year period. Adjusted EBITDA margin of 2.3%, an increase of 50 bps versus the prior year, reflects 20 bps higher gross margin and volume-related and structural expense management actions including benefits from our acquisition integration and technology modernization efforts. ETM and SET showed year-over-year improvement in their adjusted EBITDA margin while Education was negative due to the school year seasonality. Both ETM and SET improved their adjusted EBITDA margins measurably versus the prior quarter.
Income tax expense of $1.2 million, compared to income tax expense of $46.4 million reported in the third quarter of 2025, with the change primarily driven by the valuation allowance and goodwill impairment charges in the prior year. On an adjusted basis1, income tax expense of $2.6 million, compared to income tax benefit of $3.8 million in the third quarter of 2025.
Loss per share was $0.05 compared to loss per share of $4.26 in the third quarter of 2025, and reflects the impact of the valuation allowance and goodwill impairment charges in the prior year. On an adjusted basis1, earnings per share was $0.07 in the third quarter of 2026 compared to $0.17 per share in the corresponding quarter of 2025.
1
Financial Results for the 39-week period ended September 27, 2026:
Revenue of $3.0 billion, a 6.1% decrease compared to the corresponding period in 2025. Discrete impacts associated with the reduced demand for U.S. federal government contractors in the SET segment and from three large commercial customers in the ETM segment totaled approximately 5.4%, resulting in an underlying revenue decline of approximately 0.7%. Underlying revenue performance includes overall growth from improved demand in the ETM segment, including growth in each of the talent solutions specialties, along with growth in the Telecom specialty and improved performance in the Science and Engineering specialties within the SET segment. Offsetting this growth was continued lower demand in the other specialties within the SET segment, largely the Technology specialty, along with a decline in the Education segment driven by delayed prior year contract decisions and declines in demand primarily driven by reduced student enrollment in key markets.
Operating earnings of $11.6 million, compared to a loss of $69.1 million reported over the same period in 2025. Prior year operating loss reflected a non-cash goodwill impairment charge totaling $102.0 million. Adjusted operating earnings1 were $29.5 million in the first nine months of 2026 and $51.0 million in the corresponding period of 2025. Adjusted EBITDA1 of $68.2 million, a decrease of 22.9% versus the prior year period. Adjusted EBITDA margin of 2.3%, a decrease of 50 bps, reflects near-term margin pressure in ETM, Education, and SET driven by lower gross margins and timing of revenue trends, partially offset by volume-related and structural expense management actions including benefits from our acquisition integration and technology modernization efforts.
Income tax expense of $3.4 million, compared to income tax expense of $49.1 million reported over the same period in 2025, with the change primarily driven by the valuation allowance and goodwill impairment charges in the prior year. On an adjusted basis1, income tax expense of $7.9 million, compared to income tax expense of $3.4 million in the corresponding period of 2025.
Earnings per share was $0.10, compared to loss per share of $3.56 in the same period of 2025, and reflects the impact of the valuation allowance and goodwill impairment charges in the prior year. On an adjusted basis1, earnings per share was $0.46 for the first nine months of 2026 compared to $1.10 per share in the corresponding period of 2025.
1 Adjusted measures represent non-GAAP financial measures. Refer to our reconciliation of non-GAAP financial measures to the most closely related GAAP measure included in this document.
Financial Outlook for Fiscal Fourth Quarter 2026
The Company’s financial outlook assumes no material change in the macroeconomic environment relative to the third quarter, and is consistent with the full year expectations set in February of this year. For the fourth quarter, expectations for revenue growth and adjusted EBITDA margin have been adjusted relative to our prior view largely due to the delayed return to growth in our Education business and near-term incremental demand pressure from one discrete ETM customer, and are as follows:
•Fourth Quarter of 2026 – Expect revenue to be flat to up 1% on a year-over-year basis and adjusted EBITDA margin expansion of 180 to 200 bps year-over-year resulting in a margin of 3.8% to 4.0%.
◦Outlook includes the impact of an extra fiscal week in the fourth quarter, which benefits revenue growth by approximately 3 points in the fourth quarter, but negatively impacts adjusted EBITDA.
•Full Year 2026 – On a full year basis, expect a mid-single digit total revenue decline and adjusted EBITDA margin of 2.6% to 2.7%, reflecting flat to 10 bps of year-over-year improvement.
Quarterly Cash Dividend and Share Repurchase Renewal and Extension:
Kelly also reported that on November 4, 2026, its board of directors declared a dividend of $0.075 per share. The dividend is payable on December 2, 2026 to stockholders of record as of the close of business on November 18, 2026.
On November 4, 2026, the board of directors approved the renewal and extension of the Company's share repurchase program without an expiration date, which authorized the repurchase of up to $50.0 million of Class A common stock. The new authorization is inclusive of the amount that remained available under the prior authorization, which was superseded and replaced.
In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call at 9 a.m. ET on November 5 to review the financial and operational results from the quarter. The presentation and a link to the live webcast will be accessible through the Company’s public website on the Investor Relations page under Events & Presentations. The webcast will be recorded, and a replay will be available within one hour of completion of the event through the same link as the live webcast.
2
Forward-Looking Statements:
This release contains statements that are forward-looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, competitive pressures and pricing, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependence on third parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
About Kelly®
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect approximately 375,000 people with work every year. Our suite of outsourcing and consulting services and solutions ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2025 was $4.3 billion. Learn more at kellyservices.com.
KLYA-FIN
# # #
| ANALYST & MEDIA CONTACT: | |||||||||||
| Scott Thomas | |||||||||||
| (248) 251-7264 | |||||||||||
| scott.thomas@kellyservices.com | |||||||||||
3
| KELLY SERVICES, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||
| FOR THE 13 WEEKS ENDED SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025 | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in millions, except per share data) | ||||||||||||||
| 2026 | 2025 | Change | % Change(1) | |||||||||||
| Revenue from services | $ | 927.2 | $ | 935.0 | $ | (7.8) | (0.8)% | |||||||
| Cost of services | 732.8 | 741.0 | (8.2) | (1.1) | ||||||||||
| Gross profit | 194.4 | 194.0 | 0.4 | 0.2 | ||||||||||
| Selling, general and administrative expenses | 193.6 | 194.4 | (0.8) | (0.4) | ||||||||||
| Asset impairment charge | 0.2 | — | 0.2 | NM | ||||||||||
| Goodwill impairment charge | — | 102.0 | (102.0) | NM | ||||||||||
| Gain on sale of EMEA staffing operations | — | (0.3) | 0.3 | NM | ||||||||||
| Earnings (loss) from operations | 0.6 | (102.1) | 102.7 | NM | ||||||||||
| Other income (expense), net | (1.1) | (1.6) | 0.5 | 31.3 | ||||||||||
| Earnings (loss) before taxes | (0.5) | (103.7) | 103.2 | 99.5 | ||||||||||
| Income tax expense | 1.2 | 46.4 | (45.2) | (97.4) | ||||||||||
| Net earnings (loss) | $ | (1.7) | $ | (150.1) | $ | 148.4 | 98.9% | |||||||
| Basic earnings (loss) per share | $ | (0.05) | $ | (4.26) | $ | 4.21 | 98.8% | |||||||
| Diluted earnings (loss) per share | $ | (0.05) | $ | (4.26) | $ | 4.21 | 98.8% | |||||||
| STATISTICS: | ||||||||||||||
| Permanent placement income (included in revenue from services) | $ | 14.2 | $ | 11.7 | $ | 2.5 | 21.4% | |||||||
| Gross profit rate | 21.0 | % | 20.8 | % | 0.2 | pts. | ||||||||
| Adjusted EBITDA | $ | 21.3 | $ | 16.5 | $ | 4.8 | 29.1% | |||||||
| Adjusted EBITDA margin | 2.3 | % | 1.8 | % | 0.5 | pts. | ||||||||
| Effective income tax rate | (235.5) | % | (44.8) | % | (190.7) | pts. | ||||||||
| Average shares outstanding: | ||||||||||||||
| Basic | 34.7 | 35.3 | ||||||||||||
| Diluted | 34.7 | 35.3 | ||||||||||||
(1) Reported percentage changes are computed based on millions. Prior year percent changes were computed based on actual amounts in thousands.
4
| KELLY SERVICES, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||
| FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025 | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in millions, except per share data) | ||||||||||||||
| 2026 | 2025 | Change | % Change(1) | |||||||||||
| Revenue from services | $ | 3,006.1 | $ | 3,201.7 | $ | (195.6) | (6.1)% | |||||||
| Cost of services | 2,403.3 | 2,545.7 | (142.4) | (5.6) | ||||||||||
| Gross profit | 602.8 | 656.0 | (53.2) | (8.1) | ||||||||||
| Selling, general and administrative expenses | 588.8 | 627.4 | (38.6) | (6.2) | ||||||||||
| Asset impairment charge | 2.4 | — | 2.4 | NM | ||||||||||
| Goodwill impairment charge | — | 102.0 | (102.0) | NM | ||||||||||
| Gain on sale of EMEA staffing operations | — | (4.3) | 4.3 | NM | ||||||||||
| Earnings (loss) from operations | 11.6 | (69.1) | 80.7 | NM | ||||||||||
| Other income (expense), net | (4.4) | (7.1) | 2.7 | 38.0 | ||||||||||
| Earnings (loss) before taxes | 7.2 | (76.2) | 83.4 | NM | ||||||||||
| Income tax expense | 3.4 | 49.1 | (45.7) | (93.1) | ||||||||||
| Net earnings (loss) | $ | 3.8 | $ | (125.3) | $ | 129.1 | NM | |||||||
| Basic earnings (loss) per share | $ | 0.10 | $ | (3.56) | $ | 3.66 | NM | |||||||
| Diluted earnings (loss) per share | $ | 0.10 | $ | (3.56) | $ | 3.66 | NM | |||||||
| STATISTICS: | ||||||||||||||
| Permanent placement income (included in revenue from services) | $ | 38.8 | $ | 38.0 | $ | 0.8 | 2.1% | |||||||
| Gross profit rate | 20.1 | % | 20.5 | % | (0.4) | pts. | ||||||||
| Adjusted EBITDA | $ | 68.2 | $ | 88.4 | $ | (20.2) | (22.9)% | |||||||
| Adjusted EBITDA margin | 2.3 | % | 2.8 | % | (0.5) | pts. | ||||||||
| Effective income tax rate | 47.2 | % | (64.4) | % | 111.6 | pts. | ||||||||
| Average shares outstanding: | ||||||||||||||
| Basic | 34.6 | 35.2 | ||||||||||||
| Diluted | 35.1 | 35.2 | ||||||||||||
(1) Reported percentage changes are computed based on millions. Prior year percent changes were computed based on actual amounts in thousands.
5
| KELLY SERVICES, INC. | |||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| September 27, 2026 | December 28, 2025 | September 28, 2025 | |||||||||
| Current Assets | |||||||||||
| Cash and equivalents | $ | 22.2 | $ | 33.0 | $ | 30.1 | |||||
| Trade accounts receivable, less allowances of $10.8, $10.0 and $11.1, respectively | 1,300.0 | 1,188.7 | 1,195.6 | ||||||||
| Prepaid expenses and other current assets | 53.0 | 46.6 | 54.1 | ||||||||
| Total current assets | 1,375.2 | 1,268.3 | 1,279.8 | ||||||||
| Noncurrent Assets | |||||||||||
| Property and equipment, net | 17.6 | 20.5 | 22.1 | ||||||||
| Operating lease right-of-use assets | 35.1 | 42.9 | 44.3 | ||||||||
| Deferred taxes | 162.6 | 163.2 | 289.1 | ||||||||
| Retirement plan assets | 297.3 | 289.7 | 285.8 | ||||||||
| Goodwill | 202.1 | 202.1 | 202.1 | ||||||||
| Intangibles, net | 200.3 | 226.2 | 233.6 | ||||||||
| Other assets | 49.4 | 37.7 | 36.3 | ||||||||
| Total noncurrent assets | 964.4 | 982.3 | 1,113.3 | ||||||||
| Total Assets | $ | 2,339.6 | $ | 2,250.6 | $ | 2,393.1 | |||||
| Current Liabilities | |||||||||||
| Accounts payable and accrued liabilities | $ | 670.8 | $ | 631.4 | $ | 604.5 | |||||
| Operating lease liabilities | 10.5 | 12.3 | 12.3 | ||||||||
| Accrued payroll and related taxes | 169.9 | 140.9 | 153.1 | ||||||||
| Accrued workers' compensation and other claims | 20.8 | 20.9 | 18.8 | ||||||||
| Income and other taxes | 16.9 | 16.3 | 17.8 | ||||||||
| Total current liabilities | 888.9 | 821.8 | 806.5 | ||||||||
| Noncurrent Liabilities | |||||||||||
| Long-term debt | 122.5 | 101.9 | 118.4 | ||||||||
| Operating lease liabilities | 39.3 | 44.9 | 46.7 | ||||||||
| Accrued workers' compensation and other claims | 34.0 | 34.2 | 33.5 | ||||||||
| Accrued retirement benefits | 267.8 | 263.7 | 264.9 | ||||||||
| Other long-term liabilities | 6.9 | 7.6 | 8.0 | ||||||||
| Total noncurrent liabilities | 470.5 | 452.3 | 471.5 | ||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' Equity | |||||||||||
| Common Stock | 38.5 | 38.5 | 38.5 | ||||||||
| Treasury Stock | (55.1) | (63.7) | (54.9) | ||||||||
| Paid-in capital | 36.9 | 36.3 | 35.7 | ||||||||
| Earnings invested in the business | 960.7 | 965.1 | 1,096.6 | ||||||||
| Accumulated other comprehensive income (loss) | (0.8) | 0.3 | (0.8) | ||||||||
| Total stockholders' equity | 980.2 | 976.5 | 1,115.1 | ||||||||
| Total Liabilities and Stockholders' Equity | $ | 2,339.6 | $ | 2,250.6 | $ | 2,393.1 | |||||
| STATISTICS: | |||||||||||
| Working Capital | $ | 486.3 | $ | 446.5 | $ | 473.3 | |||||
| Current Ratio | 1.5 | 1.5 | 1.6 | ||||||||
| Debt-to-capital % | 11.1 | % | 9.4 | % | 9.6 | % | |||||
| Global Days Sales Outstanding | 68 | 61 | 66 | ||||||||
| Year-to-Date Free Cash Flow | $ | (35.0) | $ | 114.1 | $ | 87.2 | |||||
6
| KELLY SERVICES, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| FOR THE 39 WEEKS ENDED SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025 | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in millions) | ||||||||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings (loss) | $ | 3.8 | $ | (125.3) | ||||
| Adjustments to reconcile net earnings to net cash from operating activities: | ||||||||
| Asset impairment charge | 2.4 | — | ||||||
| Goodwill impairment charge | — | 102.0 | ||||||
| Deferred income taxes | 0.5 | 41.3 | ||||||
| Gain on sale of EMEA staffing operations | — | (4.3) | ||||||
| Depreciation and amortization | 33.3 | 32.0 | ||||||
| Operating lease asset amortization | 7.6 | 8.1 | ||||||
| Provision for credit losses and sales allowances | 1.9 | 4.1 | ||||||
| Stock-based compensation | 10.1 | 9.8 | ||||||
| Other, net | 1.0 | (0.1) | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable | (124.5) | 74.9 | ||||||
| Other assets | (15.8) | 3.5 | ||||||
| Accounts payable | 50.2 | (27.0) | ||||||
| Other liabilities | (1.2) | (25.0) | ||||||
| Net cash from (used in) operating activities | (30.7) | 94.0 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (4.3) | (6.8) | ||||||
| Proceeds from sale of EMEA staffing operations, net of cash disposed | — | 21.8 | ||||||
| Proceeds from company-owned life insurance | 13.7 | 1.6 | ||||||
| Proceeds from sale of PersolKelly investment | — | 6.4 | ||||||
| Other investing activities | (0.2) | (1.1) | ||||||
| Net cash from investing activities | 9.2 | 21.9 | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from long-term debt | 1,144.2 | 1,178.2 | ||||||
| Payments on long-term debt | (1,123.6) | (1,299.2) | ||||||
| Dividend payments | (8.2) | (8.3) | ||||||
| Payments of tax withholding for stock awards | (1.9) | (1.9) | ||||||
| Other financing activities | (0.5) | (0.2) | ||||||
| Net cash from (used in) financing activities | 10.0 | (131.4) | ||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 0.1 | 5.3 | ||||||
| Net change in cash, cash equivalents and restricted cash | (11.4) | (10.2) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 37.7 | 45.6 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 26.3 | $ | 35.4 | ||||
7
| KELLY SERVICES, INC. | |||||||||||
| SEGMENT INFORMATION | |||||||||||
| (UNAUDITED) | |||||||||||
| (in millions) | |||||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. | |||||||||||
| Third Quarter | |||||||||||
| 2026 | 2025 | % Change | |||||||||
| Enterprise Talent Management | |||||||||||
| Revenue from services | $ | 496.1 | $ | 484.5 | 2.4 | % | |||||
| Gross profit | 100.1 | 96.1 | 4.2 | ||||||||
| Adjusted SG&A expenses | 84.5 | 87.4 | (3.3) | ||||||||
Integration, realignment and restructuring charges(2) | 0.6 | — | NM | ||||||||
| Total SG&A expenses | 85.1 | 87.4 | (2.6) | ||||||||
| Business unit profit | 15.0 | 8.7 | 72.4 | ||||||||
| Adjusted business unit profit | 15.6 | 8.7 | 79.3 | ||||||||
| Gross profit rate | 20.2 | % | 19.8 | % | 0.4 | pts. | |||||
| Science, Engineering & Technology | |||||||||||
| Revenue from services | $ | 302.1 | $ | 308.3 | (2.0) | % | |||||
| Gross profit | 75.8 | 77.8 | (2.6) | ||||||||
| Adjusted SG&A expenses | 55.9 | 57.7 | (3.1) | ||||||||
Integration, realignment and restructuring charges(2) | 0.7 | 0.1 | NM | ||||||||
| Total SG&A expenses | 56.6 | 57.8 | (2.1) | ||||||||
Asset impairment charge(5) | 0.2 | — | NM | ||||||||
Goodwill impairment charge(7) | — | 102.0 | NM | ||||||||
| Business unit profit (loss) | 19.0 | (82.0) | NM | ||||||||
| Adjusted business unit profit | 19.9 | 20.1 | (1.0) | ||||||||
| Gross profit rate | 25.1 | % | 25.2 | % | (0.1) | pts. | |||||
| Education | |||||||||||
| Revenue from services | $ | 134.2 | $ | 143.3 | (6.4) | % | |||||
| Gross profit | 18.5 | 20.1 | (8.0) | ||||||||
| Adjusted SG&A expenses | 24.3 | 24.4 | (0.4) | ||||||||
Integration, realignment and restructuring charges(2) | 0.2 | 0.1 | 100.0 | ||||||||
| Total SG&A expenses | 24.5 | 24.5 | — | ||||||||
| Business unit profit (loss) | (6.0) | (4.4) | (36.4) | ||||||||
| Adjusted business unit profit (loss) | (5.8) | (4.3) | (34.9) | ||||||||
| Gross profit rate | 13.8 | % | 14.1 | % | (0.3) | pts. | |||||
8
| KELLY SERVICES, INC. | |||||||||||
| RESULTS OF OPERATIONS BY SEGMENT | |||||||||||
| (UNAUDITED) | |||||||||||
| (in millions) | |||||||||||
| We utilize business unit profit (loss) to evaluate the performance of our segments. Business unit profit (loss) and SG&A expenses as presented in the segment information table below do not include depreciation and amortization expenses. | |||||||||||
| September Year-to-Date | |||||||||||
| 2026 | 2025 | % Change | |||||||||
| Enterprise Talent Management | |||||||||||
| Revenue from services | $ | 1,440.8 | $ | 1,530.0 | (5.8) | % | |||||
| Gross profit | 285.2 | 306.8 | (7.0) | ||||||||
| Adjusted SG&A expenses | 260.1 | 277.4 | (6.2) | ||||||||
Integration, realignment and restructuring charges(2) | 0.6 | 3.8 | (84.2) | ||||||||
| Total SG&A expenses | 260.7 | 281.2 | (7.3) | ||||||||
| Business unit profit | 24.5 | 25.6 | (4.3) | ||||||||
| Adjusted business unit profit | 25.1 | 29.4 | (14.6) | ||||||||
| Gross profit rate | 19.8 | % | 20.1 | % | (0.3) | pts. | |||||
| Science, Engineering & Technology | |||||||||||
| Revenue from services | $ | 892.9 | $ | 956.7 | (6.7) | % | |||||
| Gross profit | 224.1 | 243.8 | (8.1) | ||||||||
| Adjusted SG&A expenses | 171.3 | 188.0 | (8.9) | ||||||||
Integration, realignment and restructuring charges(2) | 1.2 | 2.1 | (42.9) | ||||||||
| Total SG&A expenses | 172.5 | 190.1 | (9.3) | ||||||||
Asset impairment charge(5) | 2.4 | — | NM | ||||||||
Goodwill impairment charge(7) | — | 102.0 | NM | ||||||||
| Business unit profit (loss) | 49.2 | (48.3) | NM | ||||||||
| Adjusted business unit profit | 52.8 | 55.8 | (5.4) | ||||||||
| Gross profit rate | 25.1 | % | 25.5 | % | (0.4) | pts. | |||||
| Education | |||||||||||
| Revenue from services | $ | 681.8 | $ | 717.6 | (5.0) | % | |||||
| Gross profit | 93.5 | 105.4 | (11.3) | ||||||||
| Adjusted SG&A expenses | 76.2 | 76.7 | (0.7) | ||||||||
Integration, realignment and restructuring charges(2) | 0.3 | 0.2 | 50.0 | ||||||||
| Total SG&A expenses | 76.5 | 76.9 | (0.5) | ||||||||
| Business unit profit | 17.0 | 28.5 | (40.4) | ||||||||
| Adjusted business unit profit | 17.3 | 28.7 | (39.7) | ||||||||
| Gross profit rate | 13.7 | % | 14.7 | % | (1.0) | pts. | |||||
9
| KELLY SERVICES, INC. | |||||||||||||||||
| REVENUE FROM SERVICES BY SERVICE TYPE | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| (in millions) | |||||||||||||||||
| Third Quarter 2026 | |||||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||||
| Enterprise Talent Management | $ | 243.8 | $ | 107.8 | $ | 142.0 | $ | 2.5 | $ | 496.1 | |||||||
| Science, Engineering & Technology | 169.9 | 121.8 | — | 10.4 | 302.1 | ||||||||||||
| Education | 132.9 | — | — | 1.3 | 134.2 | ||||||||||||
| Total Segment Revenue | $ | 546.6 | $ | 229.6 | $ | 142.0 | $ | 14.2 | $ | 932.4 | |||||||
| Intersegment | (5.2) | ||||||||||||||||
| Total Revenue from Services | $ | 927.2 | |||||||||||||||
| Third Quarter 2025 | |||||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||||
| Enterprise Talent Management | $ | 246.7 | $ | 108.5 | $ | 127.2 | $ | 2.1 | $ | 484.5 | |||||||
| Science, Engineering & Technology | 195.2 | 104.3 | — | 8.8 | 308.3 | ||||||||||||
| Education | 142.5 | — | — | 0.8 | 143.3 | ||||||||||||
| Total Segment Revenue | $ | 584.4 | $ | 212.8 | $ | 127.2 | $ | 11.7 | $ | 936.1 | |||||||
| Intersegment | (1.1) | ||||||||||||||||
| Total Revenue from Services | $ | 935.0 | |||||||||||||||
10
| KELLY SERVICES, INC. | |||||||||||||||||
| REVENUE FROM SERVICES BY SERVICE TYPE (continued) | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| (in millions) | |||||||||||||||||
| September Year-to-Date 2026 | |||||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||||
| Enterprise Talent Management | $ | 712.4 | $ | 324.2 | $ | 398.2 | $ | 6.0 | $ | 1,440.8 | |||||||
| Science, Engineering & Technology | 511.4 | 352.7 | — | 28.8 | 892.9 | ||||||||||||
| Education | 677.8 | — | — | 4.0 | 681.8 | ||||||||||||
| Total Segment Revenue | $ | 1,901.6 | $ | 676.9 | $ | 398.2 | $ | 38.8 | $ | 3,015.5 | |||||||
| Intersegment | (9.4) | ||||||||||||||||
| Total Revenue from Services | $ | 3,006.1 | |||||||||||||||
| September Year-to-Date 2025 | |||||||||||||||||
| Staffing Services | Outcome-based Services | Talent Solutions | Permanent Placement | Total | |||||||||||||
| Enterprise Talent Management | $ | 788.3 | $ | 362.5 | $ | 371.9 | $ | 7.3 | $ | 1,530.0 | |||||||
| Science, Engineering & Technology | 609.5 | 321.0 | — | 26.2 | 956.7 | ||||||||||||
| Education | 713.1 | — | — | 4.5 | 717.6 | ||||||||||||
| Total Segment Revenue | $ | 2,110.9 | $ | 683.5 | $ | 371.9 | $ | 38.0 | $ | 3,204.3 | |||||||
| Intersegment | (2.6) | ||||||||||||||||
| Total Revenue from Services | $ | 3,201.7 | |||||||||||||||
11
| KELLY SERVICES, INC. | ||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in millions, except per share data) | ||||||||||||||
| Third Quarter | September Year-to-Date | |||||||||||||
| Adjusted SG&A expenses: | 2026 | 2025 | 2026 | 2025 | ||||||||||
| As reported | $ | 193.6 | $ | 194.4 | $ | 588.8 | $ | 627.4 | ||||||
Integration, realignment and restructuring charges(2) | (5.1) | (3.5) | (12.7) | (20.3) | ||||||||||
Transaction costs(3) | (0.1) | (0.4) | (0.9) | (0.8) | ||||||||||
Executive transition costs(4) | (0.1) | (0.8) | (1.9) | (1.3) | ||||||||||
| Adjusted SG&A expenses | $ | 188.3 | $ | 189.7 | $ | 573.3 | $ | 605.0 | ||||||
| Third Quarter | September Year-to-Date | |||||||||||||
| Adjusted earnings from operations: | 2026 | 2025 | 2026 | 2025 | ||||||||||
| As reported | $ | 0.6 | $ | (102.1) | $ | 11.6 | $ | (69.1) | ||||||
Integration, realignment and restructuring charges(2) | 5.1 | 3.5 | 12.7 | 20.3 | ||||||||||
Transaction costs(3) | 0.1 | 0.4 | 0.9 | 0.8 | ||||||||||
Executive transition costs(4) | 0.1 | 0.8 | 1.9 | 1.3 | ||||||||||
Asset impairment charge(5) | 0.2 | — | 2.4 | — | ||||||||||
Gain on sale of EMEA staffing operations(6) | — | (0.3) | — | (4.3) | ||||||||||
Goodwill impairment charge(7) | — | 102.0 | — | 102.0 | ||||||||||
| Adjusted earnings from operations | $ | 6.1 | $ | 4.3 | $ | 29.5 | $ | 51.0 | ||||||
| Third Quarter | September Year-to-Date | |||||||||||||
| Adjusted income tax expense: | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Income tax expense | $ | 1.2 | $ | 46.4 | $ | 3.4 | $ | 49.1 | ||||||
Taxes on integration, realignment and restructuring charges(2) | 1.3 | 0.9 | 3.2 | 5.2 | ||||||||||
Taxes on transaction costs(3) | — | 0.1 | 0.2 | 0.2 | ||||||||||
Taxes on executive transition costs(4) | — | 0.2 | 0.5 | 0.3 | ||||||||||
Taxes on asset impairment charge(5) | 0.1 | — | 0.6 | — | ||||||||||
Taxes on gain on sale of EMEA staffing operations(6) | — | (0.1) | — | (0.1) | ||||||||||
Taxes on goodwill impairment charge(7) | — | 18.4 | — | 18.4 | ||||||||||
Valuation allowance on deferred tax assets(8) | — | (69.7) | — | (69.7) | ||||||||||
| Adjusted income tax expense (benefit) | $ | 2.6 | $ | (3.8) | $ | 7.9 | $ | 3.4 | ||||||
12
| KELLY SERVICES, INC. | ||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES (continued) | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in millions, except per share data) | ||||||||||||||
| Third Quarter | September Year-to-Date | |||||||||||||
| Adjusted net earnings and earnings per share: | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net earnings (loss) | $ | (1.7) | $ | (150.1) | $ | 3.8 | $ | (125.3) | ||||||
Integration, realignment and restructuring charges, net of taxes(2) | 3.8 | 2.6 | 9.5 | 15.1 | ||||||||||
Transaction costs, net of taxes(3) | 0.1 | 0.3 | 0.7 | 0.7 | ||||||||||
Executive transition costs, net of taxes(4) | 0.1 | 0.6 | 1.4 | 1.0 | ||||||||||
Asset impairment charge, net of taxes(5) | 0.1 | — | 1.8 | — | ||||||||||
Gain on sale of EMEA staffing operations, net of taxes(6) | — | (0.2) | — | (4.2) | ||||||||||
Goodwill impairment charge, net of taxes(7) | — | 83.6 | — | 83.6 | ||||||||||
Valuation allowance on deferred tax assets(8) | — | 69.7 | — | 69.7 | ||||||||||
| Adjusted net earnings | $ | 2.4 | $ | 6.5 | $ | 17.2 | $ | 40.6 | ||||||
| Diluted earnings (loss) per share | $ | (0.05) | $ | (4.26) | $ | 0.10 | $ | (3.56) | ||||||
| Adjusted diluted earnings per share | $ | 0.07 | $ | 0.17 | $ | 0.46 | $ | 1.10 | ||||||
Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year. Adjusted diluted earnings per share reflects the impact of potentially dilutive securities. Prior-year amounts have been recast to conform to the current-year presentation.
13
| KELLY SERVICES, INC. | ||||||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||
| (UNAUDITED) | ||||||||||||||
| (in millions) | ||||||||||||||
| Third Quarter | September Year-to-Date | |||||||||||||
| Total Adjusted EBITDA: | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Net earnings (loss) | $ | (1.7) | $ | (150.1) | $ | 3.8 | $ | (125.3) | ||||||
| Other (income) expense, net | 1.1 | 1.6 | 4.4 | 7.0 | ||||||||||
| Income tax expense | 1.2 | 46.4 | 3.4 | 49.1 | ||||||||||
Depreciation and amortization(9) | 15.2 | 12.6 | 38.7 | 37.9 | ||||||||||
| EBITDA | 15.8 | (89.5) | 50.3 | (31.3) | ||||||||||
Integration, realignment and restructuring charges(2) | 5.1 | 3.1 | 12.7 | 19.8 | ||||||||||
Transaction costs(3) | 0.1 | 0.4 | 0.9 | 0.9 | ||||||||||
Executive transition costs(4) | 0.1 | 0.8 | 1.9 | 1.3 | ||||||||||
Asset impairment charge(5) | 0.2 | — | 2.4 | — | ||||||||||
Gain on sale of EMEA staffing operations(6) | — | (0.3) | — | (4.3) | ||||||||||
Goodwill impairment charge(7) | — | 102.0 | — | 102.0 | ||||||||||
| Adjusted EBITDA | $ | 21.3 | $ | 16.5 | $ | 68.2 | $ | 88.4 | ||||||
| Adjusted EBITDA margin | 2.3 | % | 1.8 | % | 2.3 | % | 2.8 | % | ||||||
| Third Quarter 2026 | |||||||||||
| Business Unit Adjusted EBITDA: | Enterprise Talent Management | Science, Engineering & Technology | Education | ||||||||
| Business unit profit (loss) | $ | 15.0 | $ | 19.0 | $ | (6.0) | |||||
Integration, realignment and restructuring charges(2) | 0.6 | 0.7 | 0.2 | ||||||||
Asset impairment charge(5) | — | 0.2 | — | ||||||||
| Adjusted EBITDA | $ | 15.6 | $ | 19.9 | $ | (5.8) | |||||
| Adjusted EBITDA margin | 3.1 | % | 6.6 | % | (4.3) | % | |||||
| Third Quarter 2025 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit (loss) | $ | 8.7 | $ | (82.0) | $ | (4.4) | |||||
Integration, realignment and restructuring charges(2) | — | 0.1 | 0.1 | ||||||||
Goodwill impairment charge(7) | — | 102.0 | — | ||||||||
| Adjusted EBITDA | $ | 8.7 | $ | 20.1 | $ | (4.3) | |||||
| Adjusted EBITDA margin | 1.8 | % | 6.5 | % | (3.0) | % | |||||
14
| KELLY SERVICES, INC. | |||||||||||
| RECONCILIATION OF NON-GAAP MEASURES | |||||||||||
| (UNAUDITED) | |||||||||||
| (In millions of dollars) | |||||||||||
| Business Unit Adjusted EBITDA (continued): | |||||||||||
| September Year-to-Date 2026 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit | $ | 24.5 | $ | 49.2 | $ | 17.0 | |||||
Integration, realignment and restructuring charges(2) | 0.6 | 1.2 | 0.3 | ||||||||
Asset impairment charge(5) | — | 2.4 | — | ||||||||
| Adjusted EBITDA | $ | 25.1 | $ | 52.8 | $ | 17.3 | |||||
| Adjusted EBITDA margin | 1.7 | % | 5.9 | % | 2.5 | % | |||||
| September Year-to-Date 2025 | |||||||||||
| Enterprise Talent Management | Science, Engineering & Technology | Education | |||||||||
| Business unit profit (loss) | $ | 25.6 | $ | (48.3) | $ | 28.5 | |||||
Integration, realignment and restructuring charges(2) | 3.8 | 2.1 | 0.2 | ||||||||
Goodwill impairment charge(7) | — | 102.0 | — | ||||||||
| Adjusted EBITDA | $ | 29.4 | $ | 55.8 | $ | 28.7 | |||||
| Adjusted EBITDA margin | 1.9 | % | 5.8 | % | 4.0 | % | |||||
| September Year-to-Date | ||||||||
| Free cash flows: | 2026 | 2025 | ||||||
| Net cash from (used in) operating activities | $ | (30.7) | $ | 94.0 | ||||
| Capital expenditures | (4.3) | (6.8) | ||||||
| Free Cash Flow | $ | (35.0) | $ | 87.2 | ||||
15
KELLY SERVICES, INC.
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
Management uses adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements. Management has not provided a reconciliation of forward-looking adjusted EBITDA margin to the most directly comparable GAAP measure because certain reconciling items, as noted below, cannot be predicted or estimated without unreasonable efforts. These items could be material to the Company’s GAAP results. Management also uses year-to-date free cash flow (operating cash flows less capital expenditures) to indicate the change in cash balances arising from operating activities, net of working capital needs and expenditures on fixed assets.
Management believes that the non-GAAP (U.S. Generally Accepted Accounting Principles) information excluding items such as integration, realignment and restructuring charges, transaction costs, executive transition costs, asset impairment charges, goodwill impairment charges, valuation allowance on deferred tax assets, and gain on the sale of our EMEA staffing operations are useful to understand the Company's fiscal 2026 financial performance and increases comparability. Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods. Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.
These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
(2) Integration, realignment and restructuring charges in the third quarter and September year-to-date 2026 and 2025 reflect various initiatives aimed at integrating MRP and other prior acquisitions and further aligning processes and technology across the Company. Included in total integration and realignment costs is $0.4 million and $0.5 million of accelerated amortization within depreciation and amortization for the third quarter and September year-to-date 2025 periods, respectively. The costs incurred associated with these initiatives are summarized in the table below:
| Third Quarter | September Year-to-Date | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||
| IT-related charges | $ | 1.9 | $ | 2.1 | $ | 7.0 | $ | 9.1 | ||||||
| Severance | 1.3 | — | 1.8 | 6.5 | ||||||||||
| Fees and other costs | 1.9 | 1.4 | 3.9 | 4.7 | ||||||||||
| Total integration, realignment and restructuring costs | $ | 5.1 | $ | 3.5 | $ | 12.7 | $ | 20.3 | ||||||
(3) Transaction costs in 2026 primarily related to costs incurred in connection with our controlling shareholder change in the first quarter of 2026. Transaction costs in 2025 include costs incurred directly related to the sale of the EMEA staffing operations, which includes employee termination costs and transition costs.
(4) Executive transition costs in 2026 represent non-recurring expenses primarily associated with our segment leader changes in 2025 and 2026. Executive transition costs in 2025 represent expenses associated with our CEO transition in 2025.
(5) Asset impairment charges in the first quarter and third quarter of 2026 relate to certain right-of-use assets and reflect the Company’s ongoing realignment of its lease portfolio.
(6) Gain on sale of EMEA staffing operations is primarily the result of the Company receiving the remaining proceeds from working capital and other adjustments, which exceeded the recorded receivable, in the second quarter of 2025.
16
KELLY SERVICES, INC.
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(7) Goodwill impairment charge in third quarter 2025 is driven by reduced demand, integration of MRP and Softworld acquisitions and realignment of reporting units in the SET segment.
(8) Valuation allowance on deferred tax assets in third quarter 2025 was established against a portion of our work opportunity credit carryforwards due to cumulative losses in recent years.
(9) Represents total company depreciation and amortization of intangibles, including the amortization of hosted software.
17
© 2026 Kelly Services, Inc. All rights reserved Q3 2026 November 5, 2026 Exhibit 99.2
© 2026 Kelly Services, Inc. All rights reserved | Financials 2
© 2026 Kelly Services, Inc. All rights reserved | 3 Third - Quarter 2026 Takeaways Refer to the last slide for footnotes. Q3 reported revenue down 0.8% year - over - year. Underlying revenue grew 2.3% (1) in the quarter and the overall year - over - year revenue decline improved 500 basis points (bps) versus the prior quarter reflecting improvements across the portfolio and reduced discrete im pac ts • Excluding the discrete impacts (1), underlying demand showed year - over - year growth in ETM Staffing and Talent Solutions and Science and Engineering specialties within SET, while most other major specialty areas across Kelly showed improvement in their year - over - ye ar performance versus Q2 Q3 operating earnings of $0.6 million or $6.1 million on an adjusted basis; Adjusted EBITDA margin (2) of 2.3% expanded 50 bps versus the prior year quarter reflecting gross profit margin improvement and SG&A discipline • Gross profit rate improved 20 bps on a year - over - year basis and improved 60 bps versus Q2 • Reported SG&A declined 0.4% year - over - year; adjusted SG&A excluding depreciation and amortization declined 2.5% versus the prior year • Adjusted EBITDA of $21.3 million grew 29.1% year - over - year Technology modernization supports growth initiatives and structural and volume - related expense optimizations • Successfully launched enterprise - scale middle - and back - office platform along with Workday Human Capital Management for internal employees • New technology leadership in place to advance modernization and AI innovation across the enterprise • Expanding and scaling AI use cases and other initiatives are on track to enable more rapid innovation and operating efficienc y Accelerating focus on profitable growth through our refreshed branding and integrated “One Kelly” framework led by the Growth Of fice • Refreshed branding launched as part of Kelly’s 80 - year anniversary, consolidating 21 brands, including legacy acquisition brands , into 10 brands aligned around the Kelly master brand • Further enhancing our go - to- market approach across the enterprise to strengthen large account management, expand wallet share wi th existing clients, and better support new customer acquisition
4 New Brand Architecture Education Business Unit (Not external facing brands) Science, Engineering, & Technology Enterprise Talent Management Specialty Division Brands Master Brand © 2026 Kelly Services, Inc. All rights reserved | 4
Third - Quarter 2026 Financial Summary © 2026 Kelly Services, Inc. All rights reserved | 5 Refer to the last slide for footnotes. Results Revenue $0.9B Gross Profit Rate 21.0% 20 bps Earnings from Operations $0.6M Adjusted Earnings from Operations (2) $6.1M 41.9% Diluted Loss per Share ($0.05) $4.21 Adjusted Earnings per Share (2) $0.07 ($0.10) Adjusted EBITDA (2) $21.3M 29.1% Adjusted EBITDA Margin (2) 2.3% 50 bps Year-Over-Year Change (0.8%) NM
September Year - to- Date 2026 Financial Summary © 2026 Kelly Services, Inc. All rights reserved | 6 Refer to the last slide for footnotes. Results Revenue $3.0B Gross Profit Rate 20.1% (40) bps Earnings from Operations $11.6M Adjusted Earnings from Operations (2) $29.5M (42.2%) Diluted Earnings per Share $0.10 $3.66 Adjusted Earnings per Share (2) $0.46 ($0.64) Adjusted EBITDA (2) $68.2M Adjusted EBITDA Margin (2) 2.3% (50) bps (22.9%) Year-Over-Year Change (6.1%) NM
Revenue Growth Trends Overall and by Segment © 2026 Kelly Services, Inc. All rights reserved | 7 Refer to the last slide for footnotes. Reported Q3 2025 Reported Q4 2025 Reported Q1 2026 Reported Q2 2026 Reported Q3 2026 Total (9.9%) (11.9%) (10.7%) (5.8%) (0.8%) Excluding discrete impacts (1) (2.0%) (3.9%) (3.3%) (0.6%) 2.3% Enterprise Talent Management (3) (12.8%) (18.3%) (13.2%) (6.0%) 2.4% Excluding discrete impacts (1) (2.1%) (5.3%) (0.4%) 3.1% 7.7% Science, Engineering & Technology (3) (9.6%) (11.9%) (11.6%) (6.1%) (2.0%) Excluding discrete impacts (1) (3.4%) (5.3%) (6.0%) (3.0%) (0.8%) Education 0.9% 1.3% (4.8%) (4.4%) (6.4%)
Third - Quarter 2026 Revenue and Gross Profit Mix © 2026 Kelly Services, Inc. All rights reserved | 8 Revenue Mix by Service Type Revenue Mix by Segment (3) Gross Profit Mix by Segment (3) 45% 14% 25% 15% 1% 2026 47% 15% 23% 14% 1% 2025 ETM 52% SET 33% EDU 15% 2025 ETM 53% SET 33% EDU 14% 2026 ETM 50% SET 40% EDU 10% 2025 ETM 51% SET 39% EDU 10% 2026 Service Type Legend Temporary Staffing Education Staffing Outcome - Based Solutions Talent Solutions Perm Placement Solutions Refer to the last slide for footnotes.
© 2026 Kelly Services, Inc. All rights reserved | 9 • GP rate increased primarily due to higher permanent placement fees and lower employee - related costs, partially offset by changes in business mix Third - Quarter 2026 Gross Profit Rate
© 2026 Kelly Services, Inc. All rights reserved | 10 • Integration and realignment costs related to the integration of MRP and other prior acquisitions and further aligning process es and technology across the Company increased as we continue to execute on initiatives • Depreciation & amortization increased primarily due to accelerated amortization on certain finite - lived intangible assets, related to our branding initiative • Employee - related costs decreased due to lower performance - based incentive compensation and salary - related costs as a result of management’s efforts to drive structural efficiencies and align resource levels with volume Third - Quarter 2026 SG&A $ in millions Refer to the last slide for footnotes.
© 2026 Kelly Services, Inc. All rights reserved | 11 • Combined borrowing capacity of $400 million on our U.S. revolving credit ($150 million) and securitization ($250 million) fac ilities • Borrowings are amounts outstanding on our U.S. credit facilities • Standby letters of credit (“SBLC”) represent amounts outstanding related to workers’ compensation Third - Quarter 2026 Liquidity $ in millions
© 2026 Kelly Services, Inc. All rights reserved | 12 Q4 and Full Year 2026 Outlook – Q4 expectations for revenue growth and adjusted EBITDA margin have been adjusted relative to our prior view largely due to the delayed return to growth in our Education business and the near - term incremental demand pressure from one discrete ETM customer. Full year expectations remain consistent to the initial full year expectations announced in February. Fourth Quarter of 2026 – Expect revenue to be flat to up 1% on a year - over - year basis and adjusted EBITDA margin expansion of 180 to 200 bps year - over - year to a resulting margin of 3.8% to 4.0% • Outlook includes the impact of an extra fiscal week in the fourth quarter, which benefits revenue growth by approximately 3 points , but negatively impacts adjusted EBITDA Full Year 2026 – On a full year basis, expect a mid - single digit total revenue decline and adjusted EBITDA margin of 2.6% to 2.7%, reflecting a flat to 10 bps year - over - year improvement 2026 Outlook Our 2026 Outlook assumes no material change in the macroeconomic environment. Through our ongoing focus on growth and efficiency, we are well prepared to navigate the evolving macroeconomic environment and capitalize on improving demand trends.
© 2026 Kelly Services, Inc. All rights reserved | Presentation Disclosures 13
© 2026 Kelly Services, Inc. All rights reserved | 14 This presentation contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties . These statements are made under the “safe harbor” provisions of the U.S . Private Securities Litigation Reform Act of 1995 . Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward - looking statements . Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, competitive pressures and pricing, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependence on third parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission . In some cases, forward - looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions . All information provided in this presentation is as of the date of this presentation and we undertake no obligation to update any forward - looking statement, whether as a result of new information, future events, or otherwise, except as required by law . Safe Harbor Statement
© 2026 Kelly Services, Inc. All rights reserved | 15 Management uses adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance . Our calculation of adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements . Management has not provided a reconciliation of forward - looking adjusted EBITDA margin to the most directly comparable GAAP measure because certain reconciling items, as noted below, cannot be predicted or estimated without unreasonable efforts . These items could be material to the Company’s GAAP results . Management believes that the non - GAAP (U .S . Generally Accepted Accounting Principles) information excluding items such as integration, realignment and restructuring charges, transaction costs, executive transition costs, asset impairment charges, goodwill impairment charges, valuation allowance on deferred tax assets, and gain on the sale of our EMEA staffing operations are useful to understand the Company's fiscal 2026 financial performance and increases comparability . Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods . Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance . These non - GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share . As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company's financial performance . Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company's financial performance . Non - GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP . Non - GAAP Measures
© 2026 Kelly Services, Inc. All rights reserved | Appendix 16
© 2026 Kelly Services, Inc. All rights reserved | 17 1) Reflects the combined negative discrete impacts from reduced demand for U.S. federal government contractors in Science, Engin eer ing & Technology ("SET") and from three large commercial customers in Enterprise Talent Management ("ETM"); 2) See Reconciliation of Non - GAAP Measures included in Form 8 - K dated November 5, 2026; 3) The Company transferred a subset of government customers from the ETM segment to the SET segment to better align customer rel ationships with specialized delivery capabilities. The 2025 and 2024 ETM and SET segment information has been recast to conform to the new structure; 4) Integration and realignment costs in Q3 2026 reflect various initiatives aimed at integrating MRP and other prior acquisition s a nd further aligning processes and technology across the Company and include IT - related charges of $1.9 million, fees and other costs of $1.9 million and severance of $1.3 mi llion. Third - Quarter 2026 Footnotes