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Kelly Services
(NASDAQ:KELYA)
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Rating:54Neutral
Price Target:
$16.00
▲(5.54% Upside)
Action:Reiterated
Date:08/07/26
KELYA scores in the mid-range primarily because financial performance is currently under significant pressure (losses and sharply weaker cash flow), which outweighs the balance-sheet strength. Offsetting factors include supportive technical momentum and a more constructive earnings-call outlook pointing to sequential improvement, margin expansion, cost discipline, and stronger cash generation, while valuation remains mixed due to the negative P/E despite a modest dividend yield.
Positive Factors
Margin recovery & cost discipline
Sustained adjusted-EBITDA margin improvement reflects tangible operating leverage and active SG&A cuts (management targets ~$25M core SG&A reduction). If maintained, higher margins provide durable earnings resilience versus cyclical revenue swings and support reinvestment.
Negative Factors
Large net loss and negative margins
A multi-hundred-million dollar TTM loss and negative operating margins erode returns and equity value over time. Until operating profitability is restored, the company faces constraints on reinvestment, recruitment of talent, and consistent shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery & cost discipline
Sustained adjusted-EBITDA margin improvement reflects tangible operating leverage and active SG&A cuts (management targets ~$25M core SG&A reduction). If maintained, higher margins provide durable earnings resilience versus cyclical revenue swings and support reinvestment.
Read all positive factors
Kelly Services (KELYA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$553.88M
Dividend Yield1.97%
Average Volume (3M)395.94K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-9.63%
EPS Growth-4458.31%
CountryUS
Employees4,900
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-7.81
Shares Outstanding31,373,150
10 Day Avg. Volume437,899
30 Day Avg. Volume395,943
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.31
Price to Sales (P/S)0.07
P/FCF Ratio2.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$19.50Price Target Upside28.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.9
Revenue Forecast (FY)$4.06B
Kelly Services Business Overview & Revenue Model
Company Description
Kelly Services, Inc. is a leading global provider of human capital solutions, serving a wide range of sectors. The enterprise organizes its operations across five distinct business divisions. The Professional & Industrial segment delivers flexible...
How the Company Makes Money
Kelly Services primarily makes money by providing staffing and workforce solutions to client organizations and charging fees tied to the labor it supplies and the services it performs. A major revenue stream is temporary staffing: Kelly recruits a...
Kelly Services Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: management reported clear sequential improvement, outperformance versus guidance, margin recovery (adjusted EBITDA margin back to 3%), stronger ETM performance, technology and AI investments beginning to scale, and a better-back-half revenue/margin outlook. Remaining headwinds include YoY revenue declines, lower adjusted EPS versus prior year, SET and Education still negative YoY (though improving), ongoing charges tied to transformation, and reliance on seasonality and anniversarying of discrete impacts in Q4. Overall the positives around operational execution, margin progress, cash generation, and strategic wins materially outweigh the continuing challenges.Positive Updates
Revenue Beat and Improved Outlook
Q2 revenue of $1.04 billion, down 5.8% YoY but materially better than guidance (down 7%–9%); company raised full-year expectations based on sequential improvement and operational momentum.
Negative Updates
Year-Over-Year Revenue Decline
Total revenue declined 5.8% YoY in Q2 and company still expects a low- to mid-single-digit revenue decline for the fiscal year despite sequential improvement; reliance on anniversarying discrete impacts in Q4 to drive full-year improvement.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Improved Outlook
Q2 revenue of $1.04 billion, down 5.8% YoY but materially better than guidance (down 7%–9%); company raised full-year expectations based on sequential improvement and operational momentum.
Read all positive updates
Company Guidance
Management guided Q3 underlying revenue growth of 1–2% (total revenue flat to down ~2% YoY) with adjusted EBITDA margin in the low‑2% range — a 40–50 bps YoY improvement — and Q4 total revenue growth in the mid‑ to upper‑single digits (helped by an extra fiscal week that boosts Q4 revenue by ≈4 points but pressures adjusted EBITDA), with ~200 bps of YoY adjusted EBITDA margin expansion to roughly 4%; on a full‑year basis they expect a low‑to‑mid single‑digit total revenue decline and a 10–20 bps YoY improvement in adjusted EBITDA margin, plan to fully anniversary discrete federal/large‑customer impacts in Q4, target a ~$25M (~4%) net reduction in core SG&A for the year, maintained the $0.075 quarterly dividend, and noted $303M of available liquidity after generating $47.7M of free cash flow and reducing debt to $78.1M in the quarter.Kelly Services Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.06B | 4.25B | 4.33B | 4.84B | 4.97B | 4.91B |
| Gross Profit | 789.50M | 853.00M | 882.60M | 961.40M | 1.01B | 919.20M |
| EBITDA | -50.20M | 101.70M | 39.90M | 99.20M | 103.40M | 82.40M |
| Net Income | -273.40M | -254.10M | -600.00K | 36.40M | -62.50M | 156.10M |
Balance Sheet | ||||||
| Total Assets | 2.28B | 2.25B | 2.63B | 2.58B | 2.66B | 2.89B |
| Cash, Cash Equivalents and Short-Term Investments | 24.20M | 33.00M | 39.00M | 125.80M | 153.70M | 112.70M |
| Total Debt | 128.70M | 159.10M | 302.60M | 51.30M | 70.40M | 78.90M |
| Total Liabilities | 1.30B | 1.27B | 1.40B | 1.33B | 1.41B | 1.56B |
| Stockholders Equity | 982.00M | 976.50M | 1.23B | 1.25B | 1.25B | 1.34B |
Cash Flow | ||||||
| Free Cash Flow | -6.00M | 114.10M | 15.80M | 61.40M | -88.30M | 73.80M |
| Operating Cash Flow | 1.70M | 122.60M | 26.90M | 76.70M | -76.30M | 85.00M |
| Investing Cash Flow | -3.40M | 22.30M | -361.60M | -14.10M | 167.50M | -180.70M |
| Financing Cash Flow | 4.60M | -161.10M | 214.80M | -59.60M | -50.60M | -8.10M |
Kelly Services Technical Analysis
Positive
15.16
Price Trends
13.35
Positive
11.34
Positive
10.39
Positive
Market Momentum
0.59
Positive
57.94
Neutral
29.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KELYA, the sentiment is Positive. The current price of 15.16 is below the 20-day moving average (MA) of 15.18, above the 50-day MA of 13.35, and above the 200-day MA of 10.39, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 29.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KELYA.
Kelly Services Risk Analysis
Kelly Services disclosed 33 risk factors in its most recent earnings report. Kelly Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kelly Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.06B | 27.87 | 29.32% | 2.87% | -1.26% | -11.37% | |
70 Outperform | $804.12M | 23.87 | 15.76% | 0.81% | 5.59% | -33.45% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $422.65M | 14.68 | -41.38% | ― | 0.41% | ― | |
55 Neutral | $2.63B | 25.27 | 5.06% | 2.81% | 6.72% | ― | |
54 Neutral | $553.88M | -1.94 | -27.06% | 1.98% | -9.63% | -4458.31% | |
50 Neutral | $310.53M | -5.39 | -20.78% | ― | 10.17% | -65.10% |
* Industrials Sector Average
KELYA
Kelly Services
15.19
1.75
13.03%
BBSI
Barrett Business Services
33.18
-12.89
-27.99%
KFRC
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59.09
29.52
99.84%
MAN
ManpowerGroup
56.60
18.72
49.41%
TBI
Trueblue
10.20
4.54
80.21%
ZIP
ZipRecruiter
5.14
1.66
47.70%
Kelly Services Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Kelly Services Expands Stockholder Rights in Amended Charter
Positive
May 13, 2026
At its May 7, 2026 annual meeting, held in virtual-only format, Kelly Services stockholders approved amendments to the company’s certificate of incorporation that expand stockholder rights. The changes allow stockholder action by written con...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.