olivLaw · US equity research
Kelly Services, Inc. KELYA
Services-Help Supply Services · SIC 7363 · Vertical: Services-Help Supply Services (SIC 7363)
Kelly is a specialty talent solutions provider linking employers with temporary, permanent and outsourced workforce services across three business units: ETM, SET and Education. The company is going through a period of declining revenue, but in the second quarter of 2026 it reported sequential improvement, which makes demand trends in the coming quarters worth watching. Revenue from services reached 1038.2 million USD in the second quarter of 2026.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Kelly Services, Inc. (KELYA) stock was 14.05 USD (−16.91% on the day), with dividend yield 2.14%, beta 0.74, 52-week range 8.08–17.28 USD. Latest reported quarter (Q3 2026): revenue of 927.2 m USD (−0.8% YoY), net income of -1.7 m USD, diluted EPS -0.05 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 33.2
- weak (30–45)
- Bollinger (20, 2)
- 14.64 – 17.44
- below the lower band · %B -0.21 · band width 17.4%
- SMA 50 / 200
- 16.26 / 12.56
- mixed trend
- MACD (12, 26, 9)
- -0.03 / 0.07
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −9.7% | −5.9% | −3.8 pp | — |
| 3 months | −10.1% | −4.6% | −5.4 pp | — |
| 6 months | +44.8% | +0.2% | +44.6 pp | — |
| Year to date | +59.7% | +7.4% | +52.2 pp | — |
| 1 year | +23.1% | +8.2% | +14.9 pp | +18.6% |
| 3 years | −25.6% | +68.4% | −94.0 pp | −39.5% |
| 5 years | −31.7% | +56.5% | −88.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.2 bn | 1.1 bn | 935.0 m | 1.0 bn | 1.0 bn | 1.0 bn | 927.2 m |
| Cost of revenue | 949.6 m | 928.4 m | 876.3 m | 741.0 m | 852.2 m | 844.3 m | 826.2 m | 732.8 m |
| Gross profit | 241.5 m | 236.5 m | 225.5 m | 194.0 m | 197.0 m | 196.4 m | 212.0 m | 194.4 m |
| SG&A | 217.4 m | 225.7 m | 207.3 m | 194.4 m | 198.5 m | 199.3 m | 195.9 m | 193.6 m |
| Operating income | -56.7 m | 10.8 m | 22.2 m | -102.1 m | -700.0 k | -5.1 m | 16.1 m | 600.0 k |
| Depreciation & amortisation | 11.5 m | 11.0 m | 10.5 m ≈ | 10.5 m ≈ | 10.4 m | 9.9 m | 9.8 m ≈ | 13.6 m ≈ |
| Interest expense | 3.8 m | 4.0 m | 3.5 m | 2.4 m | 2.5 m | 2.0 m | 2.1 m | 1.5 m |
| Pre-tax income | -55.6 m | 7.6 m | 19.9 m | -103.7 m | -2.6 m | -6.7 m | 14.4 m | -500.0 k |
| Income tax | -23.8 m | 1.8 m | 900.0 k | 46.4 m | 126.2 m | -800.0 k | 3.0 m | 1.2 m |
| Net income | -31.8 m | 5.8 m | 19.0 m | -150.1 m | -128.8 m | -5.9 m | 11.4 m | -1.7 m |
| Diluted EPS | -0.93 ≈ | 0.16 | 0.52 | -4.26 | -3.70 ≈ | -0.17 | 0.31 | -0.05 |
| Operating cash flow | 15.0 m | 23.9 m | 95.4 m ≈ | -25.3 m ≈ | 28.6 m | -25.4 m | 49.2 m ≈ | -54.5 m ≈ |
| Capex | 2.0 m | 2.5 m | 2.0 m ≈ | 2.3 m ≈ | 1.7 m | 1.1 m | 1.5 m ≈ | 1.7 m ≈ |
| Dividends paid | 2.7 m | 2.8 m | 2.7 m ≈ | 2.8 m ≈ | 2.7 m | 2.7 m | 2.8 m ≈ | 2.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.4 bn | 5.5 bn | 5.4 bn | 4.5 bn | 4.9 bn | 4.8 bn | 4.3 bn | 4.3 bn |
| Revenue YoY | unavailable | +2.6% | −2.9% | unavailable | +8.7% | −1.5% | −10.4% | −1.9% |
| Net income | 71.6 m | 22.9 m | 112.4 m | -72.0 m | 156.1 m | 36.4 m | -600.0 k | -254.1 m |
| Net income YoY | +33.1% | −68.0% | +390.8% | unavailable | unavailable | −76.7% | −101.6% | unavailable |
| Diluted EPS | 1.81 | 0.58 | 2.84 | -1.83 | 3.91 | 0.98 | -0.02 | -7.24 |
| Diluted EPS YoY | +30.2% | −68.0% | +389.7% | unavailable | unavailable | −74.9% | −102.0% | unavailable |
| net % | 1.3% | 0.4% | 2.1% | -1.6% | 3.2% | 0.8% | -0.0% | -6.0% |
| Free cash flow | 46.2 m | 35.8 m | 82.2 m | 170.5 m | 73.8 m | 61.4 m | 15.8 m | 114.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 28 Dec 2025
- Cash
- 33.0 m USD
- Financial debt
- 101.9 m USD
- Net debt
- 68.9 m USD
- Equity
- 976.5 m USD
- Total assets
- 2.3 bn USD
- Debt / equity
- 0.10x
- Current ratio
- 1.54x
- ROE
- -23.0%
- ROA
- -10.4%
- FCF margin
- 2.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.4 bn | 4.5 bn | 4.9 bn | 4.8 bn | 4.3 bn | 4.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Cost of revenue | 4.4 bn | 3.7 bn | 4.0 bn | 3.9 bn | 3.4 bn | 3.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Gross profit | 968.4 m | 827.6 m | 919.2 m | 961.4 m | 882.6 m | 853.0 m | SEC (XBRL)· 12 Feb 2026verified |
| SG&A | 883.1 m | 805.6 m | 870.6 m | 934.7 m | 818.4 m | 825.9 m | SEC (XBRL)· 12 Feb 2026verified |
| Operating income | 81.8 m | -93.6 m | 48.6 m | 24.3 m | -15.1 m | -69.8 m | SEC (XBRL)· 12 Feb 2026verified |
| Depreciation & amortisation | 31.6 m | 24.2 m | 29.8 m | 33.9 m | 40.2 m | 42.4 m | SEC (XBRL)· 12 Feb 2026verified |
| EBITDA | 113.4 m ≈ | -69.4 m ≈ | 78.4 m ≈ | 58.2 m ≈ | 25.1 m ≈ | -27.4 m ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Interest expense | 4.2 m | 3.0 m | 2.5 m | 3.2 m | 10.9 m | 12.4 m | SEC (XBRL)· 12 Feb 2026verified |
| Pre-tax income | 116.4 m | -106.8 m | 185.8 m | 24.9 m | -21.9 m | -78.8 m | SEC (XBRL)· 12 Feb 2026verified |
| Income tax | 400.0 k | -34.0 m | 35.1 m | -11.5 m | -21.3 m | 175.3 m | SEC (XBRL)· 12 Feb 2026verified |
| Net income | 112.4 m | -72.0 m | 156.1 m | 36.4 m | -600.0 k | -254.1 m | SEC (XBRL)· 12 Feb 2026verified |
| Diluted EPS | 2.84 | -1.83 | 3.91 | 0.98 | -0.02 | -7.24 | SEC (XBRL)· 12 Feb 2026verified |
| Weighted average diluted shares | 39.2 m | 39.3 m | 39.5 m | 36.3 m | 35.5 m | 35.1 m | SEC (XBRL)· 12 Feb 2026verified |
| Dividend per share | 0.30 | — | — | — | — | — | SEC (XBRL)· 13 Feb 2020verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 25.8 m | 223.0 m | 112.7 m | 125.8 m | 39.0 m | 33.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Receivables | 1.3 bn | 1.3 bn | 1.4 bn | 1.2 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 12 Feb 2026verified |
| Current assets | 1.4 bn | 1.5 bn | 1.6 bn | 1.6 bn | 1.4 bn | 1.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Property, plant & equipment, net | 43.1 m | 41.0 m | 35.3 m | 24.6 m | 25.8 m | 20.5 m | SEC (XBRL)· 12 Feb 2026verified |
| Goodwill | 127.8 m | 3.5 m | 114.8 m | 151.1 m | 304.2 m | 202.1 m | SEC (XBRL)· 12 Feb 2026verified |
| Intangibles (excl. goodwill) | 49.9 m | 55.6 m | 122.0 m | 137.7 m | 256.3 m | 226.2 m | SEC (XBRL)· 12 Feb 2026verified |
| Total assets | 2.5 bn | 2.6 bn | 2.9 bn | 2.6 bn | 2.6 bn | 2.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Accounts payable | 503.6 m | 536.8 m | 687.2 m | 646.1 m | 613.8 m | 631.4 m | SEC (XBRL)· 12 Feb 2026verified |
| Short-term debt | 1.9 m | 300.0 k | 0 | 0 | — | — | SEC (XBRL)· 20 Feb 2024verified |
| Long-term debt | — | — | — | 0 | 239.4 m | 101.9 m | SEC (XBRL)· 12 Feb 2026verified |
| Current liabilities | 884.1 m | 925.6 m | 1.1 bn | 1.0 bn | 826.5 m | 821.8 m | SEC (XBRL)· 12 Feb 2026verified |
| Equity | 1.3 bn † | 1.2 bn † | 1.3 bn † | 1.3 bn † | 1.2 bn † | 976.5 m † | SEC (XBRL)· 12 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2019 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 102.2 m | 186.0 m | 85.0 m | 76.7 m | 26.9 m | 122.6 m | SEC (XBRL)· 12 Feb 2026verified |
| Capex | 20.0 m | 15.5 m | 11.2 m | 15.3 m | 11.1 m | 8.5 m | SEC (XBRL)· 12 Feb 2026verified |
| Free cash flow | 82.2 m ≈ | 170.5 m ≈ | 73.8 m ≈ | 61.4 m ≈ | 15.8 m ≈ | 114.1 m ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Investing cash flow | -94.3 m | 9.8 m | -180.7 m | -14.1 m | -361.6 m | 22.3 m | SEC (XBRL)· 12 Feb 2026verified |
| Financing cash flow | -16.1 m | -8.1 m | -8.1 m | -59.6 m | 214.8 m | -161.1 m | SEC (XBRL)· 12 Feb 2026verified |
| Dividends paid | 11.9 m | 3.0 m | 4.0 m | 11.0 m | 10.9 m | 11.0 m | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 45.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
46% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.94 – 5.30 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)3.94 – 5.30 (Mid 4.52)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 45.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 0.8% | 67 (vs peers) | 23% |
| Net margin · Quality | -3.1% | 31 (vs peers) | 14% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -4.7% | 0 (on a fixed band) | 18% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 1.8x | 62 (on a fixed band) | 23% |
| Interest coverage · Balance sheet | 1.3x | 0 (on a fixed band) | 14% |
| Current ratio · Balance sheet | 1.5x | 62 (on a fixed band) | 9% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet43/100 · 3/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality53/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
KELLY SERVICES, INC. (KELYA). Latest full fiscal year: 2025; data up to 2026-09-27.
Figures computed from the financial statements: revenue 4.3 bn USD in 2025; YoY growth -1.9%; net margin -3.1%; ROE -11.9%; net debt/EBITDA 1.8x.
The estimated value range is 3.94–5.30 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 4.52 USD, the price of 14.05 USD leaves a potential of -67.8% (value / price − 1) and a margin of safety of -210.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 45.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Revenue CAGR 3Y: -4.7%
- Interest coverage: 1.3x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Help Supply Services (SIC 7363) · same industry (4-digit SIC) · compared with 16 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RHIRobert Half Inc. | 4.4 bn | 35.6 | 9.8% | 2.3% | −7.2% | +59% / −48% |
| MANManpowergroup Inc. | 2.2 bn | 18.2 | 5.8% | 0.6% | +0.6% | +61% / −38% |
| NSPInsperity, Inc. | 1.9 bn | 554.9 | 4.6% | 0.0% | +3.5% | +44% / −55% |
| AMNAmn Healthcare Services, Inc. | 1.8 bn | 17.7 | 15.6% | 3.1% | −8.5% | +185% / −30% |
| EFOREverforth, Inc. | 1.5 bn | 21.8 | 3.7% | 1.7% | −2.9% | −21% / −60% |
| KFRCKforce Inc | 997.7 m | 23.4 | 30.5% | 3.0% | −5.4% | +89% / −20% |
| BBSIBarrett Business Services, Inc. | 728.3 m | 24.2 | 13.9% | 2.4% | +8.4% | −13% / +11% |
| TBITrueBlue, Inc. | 376.8 m | — | -15.9% | -2.6% | +3.1% | +152% / −11% |
| HQIHireQuest, Inc. | 239.2 m | 30.0 | 12.1% | 27.1% | −11.4% | +98% / +16% |
| RCMTRcm Technologies, Inc. | 226.3 m | 13.8 | 39.5% | 5.1% | unavailable | +63% / +18% |
| TTECTTEC Holdings, Inc. | 73.0 m | — | -108.2% | -10.2% | −3.2% | −56% / −92% |
| DLHCDlh Holdings Corp. | 52.6 m | — | -20.8% | -8.5% | −13.0% | −42% / −74% |
| BGSFBgsf, Inc | 37.5 m | — | -4.4% | -2.3% | −10.6% | −24% / −64% |
| STRRStar Equity Holdings, Inc. | 35.0 m | — | -18.2% | -4.3% | +22.9% | −6% / −40% |
| CIRCCircle8 Group Inc. | 23.5 m | — | — | -19.4% | −1.5% | −90% / −95% |
| YFORYY Group Holding Ltd. | 3.9 m | — | -94.1% | -11.8% | +29.4% | −100% / unavailable |
| KELYAKelly Services, Inc. | — | — | -11.9% | -3.1% | −1.9% | +23% / −26% |
1- and 3-year price returns: for KELYA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results), 10-Q (05 Nov 2026).
In brief
Kelly is a specialty talent solutions provider linking employers with temporary, permanent and outsourced workforce services across three business units: ETM, SET and Education. The company is going through a period of declining revenue, but in the second quarter of 2026 it reported sequential improvement, which makes demand trends in the coming quarters worth watching. Revenue from services reached 1038.2 million USD in the second quarter of 2026 2.
SWOT
Strengths
- The company has a broad presence across three specialized segments, with leading positions in education and technical staffing. Its outsourcing model and integration programs give it an operational edge noted in the report 13.
- A diversified client base and a service portfolio including RPO and MSP give it a solid position with large customers 1.
- The company has shown expense discipline and the ability to improve its adjusted EBITDA margin in 2026 3.
Weaknesses
- Revenue declined in 2026, affected by lower demand from some large customers and U.S. federal government contractors 23.
- The company recorded goodwill impairment and operating losses in 2025, pointing to pressure on profitability 1.
- Gross and adjusted margins have fallen, with business mix and employee-related costs contributing to the trend 23.
Opportunities
- An economic recovery could bring faster volume growth, especially in ETM and SET, where the company has reported improvement 23.
- Expanding talent solutions and RPO could offset declines in traditional staffing 2.
- Technology modernization and a single enterprise system could reduce costs and improve productivity over the medium term 1.
Threats
- Automation and artificial intelligence could reduce demand for certain categories of staff, especially administrative roles 1.
- Intense competition and online platforms could limit the company's ability to keep its market share 1.
- Regulatory changes on wages, taxes and immigration policy could raise costs and reduce the appeal of its services 1.
Risks
- Dependence on the economic cyclehigh
Demand for temporary staff falls quickly when economic activity contracts, and revenue declined in 2026 12.
- Customer concentrationhigh
A significant share of revenue comes from the largest customers, and losing one of them could seriously affect results 1.
- Asset impairmentmedium
Goodwill impairment charges show that the value of past acquisitions can be reassessed if performance weakens 1.
- Insurance and regulatory costsmedium
Changes in workers' compensation, unemployment insurance costs and new regulations could increase expenses 1.
- Technology and security risksmedium
Cybersecurity incidents or system outages could disrupt services and damage the company's reputation 1.
Investment thesis
What would need to be true (bull case)
- If the demand recovery is confirmed, growth in ETM and SET could accelerate the improvement in revenue and margins 23.
- Efficiency programs and platform integration could support better profitability even at moderate volumes 3.
- A leading position in specialized niches and an expanding RPO business could provide long-term stability 1.
What would break the thesis
- If the decline in demand continues, revenue and profitability could remain under pressure in the coming quarters 2.
- Automation and AI could permanently reduce demand for certain roles, limiting long-term growth 1.
- If large clients reduce volumes or move to in-house suppliers, the company could lose significant market share 1.
What to watch
- Year-over-year revenue trends in ETM and SETQ3 2026
- Adjusted EBITDA margin in the fourth quarterQ4 2026
- Recovery of demand from U.S. federal government contractors2027
- Effect of the single enterprise system on costsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results), 10-Q (05 Nov 2026).
The business
Kelly operates as a global specialty talent solutions provider headquartered in the United States. It offers temporary and permanent staffing, outcome-based services, RPO, MSP and payroll process outsourcing. According to its annual report, about 375000 workers were placed with customers worldwide in 2025 1. Revenue from services was 4250.9 million USD in fiscal 2025 1.
The business model is sensitive to economic cycles: demand for temporary staff tends to rise before permanent hiring and falls first when activity contracts. Permanent placement carries higher gross margins but is a small share of revenue 1. Clients range from local firms to Fortune 500 companies, government agencies and education institutions, and the largest 100 customers accounted for a significant share of revenue in 2025 1.
In 2025 Kelly combined its P&I and OCG units into ETM, integrated the MRP acquisition and continued its transformation and cost reduction program. The CEO appointed in September 2025 continued these actions, and in 2026 the company reported sequential improvement across its three segments 12.
Segments
Enterprise Talent Management (ETM)
ETM covers temporary staffing, outcome-based services, permanent placement, BPO, MSP and RPO, focused on light industrial, contact center and office clerical work in North America. Revenue was 2005.5 million USD in fiscal 2025 1 and fell to 944.7 million USD in the first six months of 2026 2. The segment showed signs of demand recovery, with growth in talent solutions 2.
Science, Engineering & Technology (SET)
SET provides specialized talent in science, engineering, technology and telecommunications, mainly in North America. Revenue rose to 1240.4 million USD in 2025 1, helped by the MRP acquisition, but demand from U.S. federal government contractors and IT services declined 2. The company still reported growth in its Telecom specialty 2.
Market context
The worldwide workforce solutions industry is highly competitive and fragmented, with low barriers to entry. Kelly operates nationally and regionally, competing with large firms and online recruitment platforms 1. Demand depends on economic activity and trade policy, and the decline still visible in 2026 shows the market has not fully recovered 2.
Although conditions remain difficult, the company observes signs of stabilization in 2026, with growth in ETM and SET versus the prior quarter 23. If the demand recovery strengthens, margins and volumes could benefit from operating leverage, but this depends on the economy and on decisions by large clients 1.
Trends
- Automation and artificial intelligencemixed
Automation and AI could reduce demand for certain administrative and support roles, particularly lower-skill categories. The company also uses AI in its recruiting processes, which could partly offset these effects 1.
- Economic cycle and staffing demandheadwind
Demand for temporary staff declined in 2025 and early 2026, and revenue fell 8.3% in the first six months of 2026 2. If economic activity recovers, employers could again increase their use of temporary staff ahead of permanent hiring 1.
- Cost pressure and regulationheadwind
Changes to wage, tax and AI-in-employment rules could raise costs. The company says it passes regulatory costs to clients as far as possible, but it cannot be sure this will fully offset them 1.
- Operating efficiency gainstailwind
Integration programs, technology modernization and expense reductions have lowered SG&A and could support higher margins if volumes grow 23. The company's outlook for the fourth quarter of 2026 includes a margin recovery, but this forecast depends on stable macroeconomic conditions 3.
Competitive position
In the United States, Kelly competes with national firms offering a broad range of services and with thousands of smaller regional or specialized companies. The main competitors named in the report are Randstad, Adecco Group, ManpowerGroup and Allegis Group 1. Key factors are service quality, price and breadth of service, and price pressure may increase in a downturn 1.
A major risk is the rise of online staffing platforms and sourcing models that bypass traditional agencies. The company has warned that such competition could limit its ability to maintain market share 1.
- Randstad
Global workforce solutions provider named among Kelly's largest competitors in 2025 1.
- Adecco Group
International staffing provider listed among the company's main competitors in 2025 1.
- ManpowerGroupMAN
Global staffing company cited in the report as a direct competitor 1.
- Allegis Group
Private staffing and consulting group named among principal competitors in 2025 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Adevăruri care ar putea fi chiar adevărateContributors.ro · 06 Nov 2026 · RO
- Ross Daly and Kelly Thoma Bring Cretan Lyra and Improvisation to AthensTo Vima International (GR, EN) · 05 Nov 2026 · EN
- Megyn Kelly: Time for GOP to learn how to win ‘without daddy’The Hill · 05 Nov 2026 · EN
- Here's how you can see Celine Dion live in Paris in 2027 by redeeming Marriott Bonvoy pointsThe Points Guy · 05 Nov 2026 · EN
- Renee Montgomery’s Move From Player to OwnerBloomberg Markets · 05 Nov 2026 · EN
- Cursa pentru succesiunea lui Trump se relansează după rezultatul alegerilor din SUA. Cine l-ar putea... - Ziare.comSurge — Google News · 05 Nov 2026 · RO
- Trump ar fi discutat cu consilierii despre demiterea șefului Pentagonului, dar acum neagă. Cine ar putea să-l înlocuiască pe Pete HegsethSpotMedia.ro · 04 Nov 2026 · RO
- Letitia James appoints ex-prosecutor to lead Cornell sexual assault investigationThe Guardian World · 04 Nov 2026 · EN
- Trump asking advisers if Hegseth should stay after midterm losses, sources say - CBS NewsSurge — Google News · 04 Nov 2026 · RO
- Q&A: What is the Brazil-led ‘deforestation roadmap’?Carbon Brief · 04 Nov 2026 · EN
- How everyday families can use the power of credit cards to support their livesThe Points Guy · 04 Nov 2026 · EN
- Alegeri SUA 2026. Victorie zdrobitoare a democraților care obțin majoritatea în Camera Reprezentanților și în Senat. Surprize uriașe în mai multe stateMediafax · 04 Nov 2026 · RO
- LIVE TEXT | Midterms 2026. Rezultatele alegerilor din SUA. Democrații vor câștiga Congresul. Victorii în Senat și în districte din state-cheie - PRO TV ChisinauSurge — Google News · 04 Nov 2026 · RO
- Alegeri SUA 2026. Victorie zdrobitoare a democraților care obțin majoritatea în Camera Reprezentanților și în SenatMediafax · 04 Nov 2026 · RO
- Alegeri importante în America. Inflația și costul vieții, printre principalele nemulțumiri ale alegătorilor - TargovisteNEWSSurge — Google News · 04 Nov 2026 · RO
- Alegeri SUA 2026. Trump riscă să piardă controlul întregului Congres. Democrații câștigă teren inclusiv în state republicane. CNN: Democrații câștigă controlul Camerei ReprezentanțilorMediafax · 04 Nov 2026 · RO
- Alegeri SUA 2026. Democrații câștigă teren inclusiv în state republicane. CNN: Democrații câștigă controlul Camerei Reprezentanților. Prima reacție a lui TrumpMediafax · 04 Nov 2026 · RO
- Alegeri SUA 2026. Trump riscă să piardă controlul întregului Congres. Democrații câștigă teren inclusiv în… - MediafaxMediafax · 04 Nov 2026 · RO
- Former Speaker Nancy Pelosi says Democrats' power lies in their unityNPR News · 04 Nov 2026 · EN
- Alegeri SUA 2026. Trump riscă să piardă controlul întregului Congres. Democrații câștigă teren inclusiv în state republicane / NYT estimează șanse de peste 95% pentru o victorie democrată în ambele camere - Ziarul ProfitSurge — Google News · 04 Nov 2026 · RO
SEC filings
- Quarterly report05 Nov 2026
- Current report05 Nov 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report13 May 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement13 Apr 2026
- Annual report12 Feb 2026
- Current report12 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-28 · SEC / Kelly Services, Inc. · 12 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / Kelly Services, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Kelly Services, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.