Kelly Services, Inc.

Kelly Services, Inc. (KELYA) reported FY 2025 revenue from services of $4.25B, with gross profit of $853.0M reflecting a gross margin of approximately 20.1%. Despite revenue stability, the company posted an operating loss of $69.8M, driven by $825.9M in selling, general and administrative expenses, a $102.0M goodwill impairment charge, offset partially by gains from the sale of EMEA staffing operations ($4.1M) and assets ($1.0M). This resulted in a pre-tax loss of $78.8M and a net loss of $254.1M, or -$7 per basic and diluted share, primarily due to a $175.3M income tax expense. Balance sheet shows total assets of $2.25B, with current assets at $1.27B including $33.0M cash and $1.19B receivables, against $821.8M current liabilities. Stockholders' equity stands at $976.5M. Cash flow from operations was positive at $122.6M despite the net loss, supported by non-cash adjustments like $168.5M deferred taxes and $42.4M depreciation. Investing activities generated $22.3M from asset sales including EMEA operations ($21.8M) and PersolKelly ($6.4M), while financing used $161.1M mainly from debt repayments ($1.74B payments vs $1.60B proceeds). Net change in cash was -$7.9M, ending at $33.0M unrestricted cash.

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