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Kelly Services (KELYA)
NASDAQ:KELYA
Earnings Data
Report Date
May 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.06Last Year’s EPS
0.39Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presents a mixed picture: notable operational and strategic progress (technology modernization, enterprise AI deployment, Education growth, improved liquidity, SG&A reductions, leadership hires, and meaningful wins) but material near-term financial headwinds (double-digit Q4 revenue decline, significant gross profit and EBITDA margin pressure, healthcare/workers' comp cost increases, large discrete customer impacts, and substantial tax/impairment charges). Management expects sequential improvement through 2026 as discrete impacts anniversary and technology/AI and go-to-market initiatives take hold.Company Guidance
Technology Modernization and AI Deployment
Completed December cutover of SET acquisitions to the modernized MRP platform; majority of Kelly businesses expected to be operational on the unified platform by 2027. Launched Grace Boost (proprietary internal AI) to all employees and integrated AI into day-to-day applications. Deployed an AI recruiting solution for a large multinational manufacturing customer with improved talent feedback, higher customer satisfaction, faster staffing, and lower cost; management cited these as scalable and repeatable wins.
Education Segment Growth and Margin Expansion
Education revenue grew 1.3% year-over-year in the quarter driven by K-12 and therapy specialties. Education gross profit rate held flat at 14.2% and Education margin expanded by ~30 basis points year-over-year.
Strong Operating Cash Flow and Balance Sheet Position
Generated $122.6 million of operating cash flow through Q4 (up significantly vs prior year). Total available liquidity of $288 million ($33 million cash + $255 million on credit facilities). Total borrowings $102 million (down $137 million vs prior year-end) and debt-to-EBITDA leverage ratio below 1.
SG&A and Cost Optimization Momentum
Reported SG&A of $198.5 million, down 8.7% year-over-year; adjusted SG&A decreased 11.1% YoY. Management is realizing structural and volume-related cost efficiencies via technology, process improvements and use of AI; recognized $9.8 million of optimization-related charges in the quarter to support those initiatives.
Strategic Leadership and Governance Actions
Announced Hunt Companies' agreement to purchase controlling stake (January 30) and reconstituted the board with four new directors. Appointed Pat McCall as Chief Growth Officer to drive enterprise go-to-market and initiated a search for President of SET to accelerate growth and capture AI-related opportunities.
Notable New Business Wins and Market Recognition
Several MSP and enterprise staffing wins planned to go live in Q1 — including a new MSP with a global financial services firm described as one of Kelly’s largest. HRO Today recognized Kelly as the No. 1 global provider of total workforce solutions (MSP, RPO, staffing).
Disciplined Capital Allocation
Completed $10 million of Class A share repurchases in the quarter (remaining authorization $30 million), maintained quarterly dividend of $0.075 per share, and deployed $158 million of total capital during the fiscal year — reflecting continued shareholder capital returns alongside debt reduction.
KELYA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KELYA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $9.83 | $9.70 | -1.31% |
Nov 06, 2025 | $11.22 | $9.21 | -17.93% |
Aug 07, 2025 | $11.98 | $12.53 | +4.57% |
May 08, 2025 | $11.07 | $12.18 | +10.02% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kelly Services (KELYA) report earnings?
Kelly Services (KELYA) is schdueled to report earning on May 07, 2026, Before Open (Confirmed).
What is Kelly Services (KELYA) earnings time?
Kelly Services (KELYA) earnings time is at May 07, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KELYA EPS forecast?
KELYA EPS forecast for the fiscal quarter 2026 (Q1) is 0.06.