10-K · February 12, 2026
Kelly continues to emphasize a specialty-focused strategy (three reportable business units: Enterprise Talent Management, Science, Engineering & Technology, and Education) and says it placed approximately 375,000…
Earnings analysis · 10-Q
KELYA earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
In Q1 2026, Kelly Services reported revenues of $1.04 billion, a decline of 10.7% year-over-year, significantly missing expectations compared to $1.16 billion in the prior year. The reported diluted EPS was a loss of…
Read full summary
In Q1 2026, Kelly Services reported revenues of $1.04 billion, a decline of 10.7% year-over-year, significantly missing expectations compared to $1.16 billion in the prior year. The reported diluted EPS was a loss of $0.17, sharply down from a profit of $0.16 in Q1 2025 as the company struggled with demand shortages and strategic realignment costs, while management anticipates further declines in Q2.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.17
- Gross margin
- 18.9%
- Segment
- Enterprise Talent Management
- Segment
- Science Engineering & Technology
- Segment
- Education
What stood out
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Revenue Decline of 10.7%
Q1 2026 revenue totaled $1.04 billion, down from $1.16 billion in Q1 2025, missing estimates by $20 million.
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Significant EPS Loss
The diluted EPS loss was $0.17, significantly worse than the expected $0.06 profit and down from $0.16 in Q1 2025.
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Expense Reductions Achieved
SG&A expenses decreased by 11.7% year-over-year, from $225.7 million to $199.3 million, contributing to lower operational costs.
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ST Segment Growth Ongoing
The Talent Solutions in the ETM segment grew by 3.0%, showing some resilience amidst overall revenue decline.
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Improving Cash Flow from Financing
The company generated $24.2 million in cash from financing activities, a notable improvement from the cash used ($39.5 million) in the same period last year.
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Reduction in Debt-to-Total Capital Ratio
The debt-to-total capital ratio increased to 11.9% from 9.4% at year-end 2025, reflecting a greater reliance on debt financing.
What to watch
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Ongoing Demand Issues
Revenue continues to be pressured, particularly in the ETM segment, which saw a decline of 13.2% due to fewer hours worked.
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Negative Operating Income
The company reported an operating loss of $5.1 million compared to a profit of $10.8 million during Q1 2025.
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Increased Working Capital Requirements
The company used $25.4 million in cash for operating activities, contrasting with a cash generation of $23.9 million in Q1 2025.
Management's outlook
Management anticipates revenue to decline by 7% to 9% in Q2 2026 but expects improved performance in latter quarters.
Earlier filings 4
10-Q · November 6, 2025
Kelly Services reported third-quarter revenue of $935.0 million, down from $1,038.1 million in Q3 2024, with gross margin roughly stable at 20.8% but a swing to an operating loss of $102.1 million driven largely by a…
10-Q · August 7, 2025
Kelly Services reported second-quarter revenue of $1,101.8 million (up $44.3 million, +4.2% vs. Q2 2024) and diluted EPS of $0.52 (Q2 2025 vs. $0.12 in Q2 2024). Operating income improved to $22.2 million and operating…
10-Q · August 8, 2024
Kelly Services reported Q2 revenue of $1,057.5 million (down from $1,217.2 million a year ago) while gross profit was $213.7 million and diluted EPS was $0.12 for the quarter. Segment strength in SET ($332.2M) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.