KELYA earnings analysis
What we found in KELYA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- ST Segment Growth Ongoing
- The Talent Solutions in the ETM segment grew by 3.0%, showing some resilience amidst overall revenue decline.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- Negative Operating Income
- The company reported an operating loss of $5.1 million compared to a profit of $10.8 million during Q1 2025.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.17
- Gross margin
- 18.9%
- Segment
- Enterprise Talent Management
- Segment
- Science Engineering & Technology
- Segment
- Education
What they said about what is next.
Management anticipates revenue to decline by 7% to 9% in Q2 2026 but expects improved performance in latter quarters.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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