--- title: "Kelly Services | 10-Q: FY2026 Q1 Revenue: USD 1.041 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285602620.md" datetime: "2026-05-07T19:18:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285602620.md) - [en](https://longbridge.com/en/news/285602620.md) - [zh-HK](https://longbridge.com/zh-HK/news/285602620.md) --- # Kelly Services | 10-Q: FY2026 Q1 Revenue: USD 1.041 B Revenue: As of FY2026 Q1, the actual value is USD 1.041 B. EPS: As of FY2026 Q1, the actual value is USD -0.17. EBIT: As of FY2026 Q1, the actual value is USD -3.5 M. #### Revenue from Services - **Consolidated Total Revenue from Services**: Consolidated total revenue from services decreased by 10.7% year-over-year, from $1,164.9 million in the first quarter of 2025 to $1,040.7 million in the first quarter of 2026. - **Enterprise Talent Management (ETM)**: Revenue decreased by 13.2% to $459.2 million in Q1 2026 from $529.1 million in Q1 2025, primarily due to a 16.9% decrease in staffing services and a 19.8% decrease in outcome-based services, partially offset by a 3.0% increase in talent solutions. - **Service Type Breakdown (Q1 2026)**: Staffing Services: $229.3 million; Outcome-based Services: $106.8 million; Talent Solutions: $121.3 million; Permanent Placement: $1.8 million. - **Service Type Breakdown (Q1 2025)**: Staffing Services: $275.8 million; Outcome-based Services: $133.2 million; Talent Solutions: $117.8 million; Permanent Placement: $2.3 million. - **Science, Engineering & Technology (SET)**: Revenue decreased by 11.6% to $289.2 million in Q1 2026 from $327.3 million in Q1 2025, mainly due to declines in hours volume in staffing specialties, partially offset by an increase in permanent placement fees. - **Service Type Breakdown (Q1 2026)**: Staffing Services: $168.6 million; Outcome-based Services: $112.2 million; Permanent Placement: $8.4 million. - **Service Type Breakdown (Q1 2025)**: Staffing Services: $209.8 million; Outcome-based Services: $109.4 million; Permanent Placement: $8.1 million. - **Education**: Revenue decreased by 4.8% to $294.1 million in Q1 2026 from $309.0 million in Q1 2025, primarily attributed to delayed contract decisions, weather-related school closures, and reduced demand. - **Service Type Breakdown (Q1 2026)**: Staffing Services: $293.4 million; Permanent Placement: $0.7 million. - **Service Type Breakdown (Q1 2025)**: Staffing Services: $307.9 million; Permanent Placement: $1.1 million. - **Revenue by Geography (Q1 2026 vs. Q1 2025)**: - **Americas**: Total revenue was $1,012.9 million in Q1 2026, down from $1,139.9 million in Q1 2025, with United States revenue at $938.6 million in Q1 2026 compared to $1,056.6 million in Q1 2025. - **Europe**: Total revenue increased to $12.2 million in Q1 2026 from $9.6 million in Q1 2025. - **Asia-Pacific**: Total revenue increased to $15.6 million in Q1 2026 from $15.4 million in Q1 2025. #### Operational Metrics - **Consolidated Gross Profit**: Consolidated gross profit decreased by 17.0% to $196.4 million in Q1 2026 from $236.5 million in Q1 2025, with the gross profit rate decreasing by 1.4% to 18.9% due to higher employee-related costs. - **ETM Gross Profit**: Decreased by 20.2% to $85.6 million in Q1 2026 from $107.3 million in Q1 2025, with the gross profit rate decreasing by 1.7% to 18.6%. - **SET Gross Profit**: Decreased by 13.5% to $71.8 million in Q1 2026 from $83.0 million in Q1 2025, with the gross profit rate decreasing by 0.6% to 24.8%. - **Education Gross Profit**: Decreased by 15.6% to $39.0 million in Q1 2026 from $46.2 million in Q1 2025, with the gross profit rate decreasing by 1.7% to 13.3%. - **Consolidated SG&A Expenses (excluding D&A)**: Decreased by 11.9% to $187.6 million in Q1 2026 from $212.9 million in Q1 2025. - **ETM SG&A Expenses (excluding D&A)**: Decreased by 14.0% to $86.9 million in Q1 2026 from $101.0 million in Q1 2025. - **SET SG&A Expenses (excluding D&A)**: Decreased by 16.6% to $57.6 million in Q1 2026 from $69.1 million in Q1 2025. - **Education SG&A Expenses (excluding D&A)**: Decreased by 0.7% to $26.7 million in Q1 2026 from $26.9 million in Q1 2025. - **Corporate Expenses**: Increased by 3.1% to $16.4 million in Q1 2026 from $15.9 million in Q1 2025. - **Consolidated Earnings (loss) from operations**: Shifted to a loss of - $5.1 million in Q1 2026 from earnings of $10.8 million in Q1 2025. - **ETM Business Unit Profit (Loss)**: Shifted to a loss of - $1.3 million in Q1 2026 from a profit of $6.3 million in Q1 2025. - **SET Business Unit Profit (Loss)**: Decreased by 13.7% to $12.0 million in Q1 2026 from $13.9 million in Q1 2025. - **Education Business Unit Profit (Loss)**: Decreased by 36.3% to $12.3 million in Q1 2026 from $19.3 million in Q1 2025. - **Net Earnings (Loss)**: Shifted to a net loss of - $5.9 million in Q1 2026 from net earnings of $5.8 million in Q1 2025. - **Asset Impairment Charge**: $2.2 million in Q1 2026. - **Integration, Realignment and Restructuring Charges**: $4.7 million in Q1 2026, down from $10.7 million in Q1 2025. #### Cash Flow - **Net Cash (used in) from Operating Activities**: - $25.4 million in Q1 2026, compared to generating $23.9 million in Q1 2025, primarily due to increased working capital requirements. - **Net Cash (used in) from Investing Activities**: - $1.2 million in Q1 2026, compared to generating $3.2 million in Q1 2025, with Q1 2026 usage driven by $1.1 million in capital expenditures. - **Net Cash from (used in) Financing Activities**: $24.2 million generated in Q1 2026, compared to - $39.5 million used in Q1 2025, primarily due to net proceeds on credit facilities in 2026 versus net repayments in 2025. #### Other Key Financial Metrics - **Cash, Cash Equivalents and Restricted Cash**: $29.5 million at the end of Q1 2026, down from $37.7 million at year-end 2025. - **Days Sales Outstanding (DSO)**: 64 days for Q1 2026, compared to 61 days at year-end 2025. - **Working Capital Position**: $480.2 million at the end of Q1 2026, an increase of $33.7 million from year-end 2025. - **Current Ratio**: 1.6 at the end of Q1 2026, up from 1.5 at year-end 2025. - **Debt-to-Total Capital**: 11.9% at the end of Q1 2026, up from 9.4% at year-end 2025. - **Revolving Credit Facility**: $150.0 million available capacity, with no long-term borrowings outstanding at the end of Q1 2026. - **Securitization Facility**: $76.9 million available capacity, with $130.5 million in long-term borrowings and $42.6 million in standby letters of credit at the end of Q1 2026. - **Share Repurchase Program**: $30.0 million remained available under the $50.0 million Class A share repurchase program as of Q1 2026, with no shares repurchased during Q1 2026. #### Future Outlook and Strategy 凯利服务-A is focused on stabilizing its business and executing strategic initiatives to drive organic growth and margin expansion. The company has formed a Growth Office to unify its go-to-market strategy and increase customer share of wallet and revenue growth, while also progressing with its technology modernization initiative. \[凯利服务-A\] expects to meet its ongoing short-term and long-term cash requirements through cash generated from operations, available cash and equivalents, and its credit facilities, maintaining sufficient liquidity. ### Related Stocks - [KELYA.US](https://longbridge.com/en/quote/KELYA.US.md) ## Related News & Research - [Kelly Named No. 2 on Forbes' 2026 Lists of America's Best Temporary Staffing and Best Professional Recruiting Firms | KELYA Stock News](https://longbridge.com/en/news/286919263.md) - [KellyOCG Named No. 1 Provider on HRO Today's 2026 Baker's Dozen Customer Satisfaction Ratings for MSP | KELYA Stock News](https://longbridge.com/en/news/287230169.md) - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md)