Kelly Services (KELYA)
NASDAQ:KELYA
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Earnings Data
Report Date
Aug 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.21Last Year’s EPS
0.54Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presents a balanced picture: clear near-term headwinds with meaningful YoY declines in revenue, gross profit and adjusted EPS, and some ongoing charges and working-capital-driven cash usage. Offsetting these negatives are tangible operational responses — significant SG&A reductions, technology modernization progress (CRM and platform migrations), a major MSP win driven by AI-enabled capabilities, a strengthened growth office and a credible outlook for sequential improvement and margin expansion in H2 2026. Given the mix of material negatives and concrete corrective actions with a credible recovery path, the tone is cautiously constructive but not yet decisively positive.Company Guidance
Top-Line Performance vs Expectations
Total company revenue of $1.0 billion for Q1 2026, which exceeded management's expectations despite a reported year-over-year decline of 10.7%. On an underlying basis (excluding discrete impacts from federal government and three large ETM customers), revenue declined 3.3% YoY, an improvement of 60 basis points versus the prior quarter.
Stability and Improvement in ETM
Underlying ETM revenue declined modestly by 0.4% YoY and showed sequential improvement versus Q4; staffing saw a net underlying decline of just 1.2% with month-over-month growth in February and March, and each Talent Solutions specialty grew YoY.
Cost Reduction and SG&A Progress
Reported SG&A was $199.3 million, down 11.7% YoY; adjusted SG&A decreased 10.3% YoY. Management projects approximately $25 million of net year-over-year reduction in core SG&A for 2026, and core adjusted SG&A has declined sequentially each quarter since Q1 2025.
Adjusted EBITDA and Margin Trajectory
Adjusted EBITDA was $15.8 million with an adjusted EBITDA margin of 1.5%, in line with expectations. Margin performance improved 20 basis points versus Q4 and management expects at least 2.5% adjusted EBITDA margin in Q2 (≥100 bps improvement vs Q1) and measurable margin expansion in H2 2026.
Technology Modernization and AI Capabilities
Progress on multi-phase technology modernization: successful initial cutover of SET acquisitions to the modernized platform, HubSpot CRM deployment to commercial teams by mid-year, enterprise platform migration beginning Q4, and majority of SET on platform early 2027. Technology-enabled capabilities (Helix analytics and AI-enabled rate intelligence) helped win large MSP business.
Notable New Customer Win and Pipeline Strength
Won a significant MSP program with a leading global oil & gas company across North America based on differentiated tech-enabled solutions; management cites a strong MSP pipeline and broad demand for total talent management solutions across telecom, data center, engineering, and K-12 staffing.
Balance Sheet and Capital Allocation Flexibility
Total available liquidity of $252 million (consisting of $26 million cash and $226 million available on credit facilities) with total borrowings of $130.5 million and debt-to-EBITDA near 1. Quarterly dividend of $0.075 per share was maintained.
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 |
|---|---|---|---|
May 07, 2026 | $9.79 | $9.70 | -0.92% |
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% |
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 Aug 06, 2026, Before Open (Confirmed).
What is Kelly Services (KELYA) earnings time?
Kelly Services (KELYA) earnings time is at Aug 06, 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 (Q2) is 0.21.