Kelly Services ( (KELYA) ) has released its Q3 earnings. Here is a breakdown of the information Kelly Services presented to its investors.
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Kelly Services, Inc., a prominent player in the staffing industry, specializes in providing talent solutions across various sectors including science, engineering, technology, education, and more. Headquartered in Troy, Michigan, the company connects over 400,000 people with work annually through its extensive network of suppliers and partners.
In its third-quarter 2025 earnings report, Kelly Services reported a revenue of $935 million, marking a 9.9% decline compared to the same period last year. The company faced challenges due to reduced demand from U.S. federal government contractors and large private sector customers, leading to an underlying revenue decline of approximately 2%. Despite these challenges, the Education segment showed growth, while the Science, Engineering & Technology (SET) and Enterprise Talent Management (ETM) segments experienced declines.
Key financial metrics highlighted a significant operating loss of $102.1 million, primarily due to a $102 million non-cash goodwill impairment charge. Adjusted operating earnings stood at $4.3 million, while adjusted EBITDA was $16.5 million, reflecting a decrease of 36.7% from the previous year. The company’s adjusted EBITDA margin also saw a decline, dropping by 70 basis points to 1.8%. In response to these financial challenges, Kelly Services plans to engage in Class A share repurchases in the fourth quarter, signaling confidence in its strategic direction.
Looking ahead, Kelly Services’ management remains focused on addressing near-term opportunities to enhance execution and agility. The company anticipates a year-over-year revenue decline of 12% to 14% in the fourth quarter, with an adjusted EBITDA margin of approximately 3%. Despite the current revenue pressures, the company is committed to driving profitable growth and delivering lasting value for its stakeholders.