Kelly Services Reports Third-Quarter 2025 Earnings
Kelly Services reported a 9.9% decline in revenue for Q3 2025, totaling $935 million, alongside an operating loss of $102.1 million due to non-cash goodwill impairment charges. Adjusted earnings fell to $4.3 million from $11.7 million year-over-year. The company anticipates a further revenue decline of 12% to 14% in Q4 2025, with a focus on strategic initiatives and capital allocation. CEO Chris Layden highlighted the impact of macroeconomic factors and the AI boom on operations, while the Education segment showed growth amidst overall declines in other areas.
Kelly, a leading specialty talent solutions provider, has released its financial results for the third quarter of 2025. The company reported a decline in revenue and significant non-cash goodwill impairment charges, reflecting challenges in the current operating environment.
Financial Highlights
For the third quarter of 2025, Kelly reported:
- Revenue of $935.0 million, down 9.9% year-over-year.
- Operating loss of $102.1 million, including $102.0 million of non-cash goodwill impairment charges.
- Adjusted earnings of $4.3 million, compared to $11.7 million in the third quarter of 2024.
- Adjusted EBITDA of $16.5 million, a decrease of 36.7% from the prior year period.
- Loss per share of $4.26, compared to earnings per share of $0.02 in the third quarter of 2024.
Business and Operational Highlights
The company's underlying revenue decline was approximately 2.0% year-over-year, excluding discrete impacts from U.S. federal government and large customer demand reductions. The Education segment showed growth, while the SET and ETM segments experienced declines.
Strategic Initiatives and Corporate Developments
Kelly has been active in structural and demand-driven expense optimization initiatives, including legacy acquisition integration, technology modernization, and process efficiencies. The company also plans to be active with Class A share repurchases in Q4, reflecting confidence in its strategy and commitment to capital allocation.
Management's Perspective
Chris Layden, CEO of Kelly, commented on the evolving operating environment influenced by macroeconomic factors, policy shifts, and the AI boom. He emphasized the company's focus on capturing growth in resilient markets and addressing near-term opportunities to enhance execution and agility.
Future Outlook
For the fourth quarter of 2025, Kelly expects a year-over-year revenue decline of 12% to 14%, with an adjusted EBITDA margin of approximately 3%. The company assumes no material change in macroeconomic or industry dynamics and anticipates a positive resolution to the current federal government shutdown.
Original SEC Filing: KELLY SERVICES INC [ KELYA ] - 8-K - Nov. 06, 2025
