Cash flow generation remains highly volatile, evidenced by a $44.1 million working capital outflow in 2026Q1 and erratic OCF/NI ratios that reached -25.38 in 2024Q3.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 73.3M | 122.6M | 26.9M | 76.7M | -76.3M | 85M | 186M | 102.2M | 61.4M | 70.3M | 38M | 23.5M | -70M | 115.3M | 61.1M | 19.1M | 41.8M | -17.2M | 101.6M | 73.34M | 116.27M | 20.76M | 59.36M | 30.59M | 89.61M | 144.79M | 88.86M | 114.4M | 118.6M | 147.8M | -13.6M |
| Operating CF Margin % | - | 2.88% | 0.62% | 1.59% | -1.54% | 1.73% | 4.12% | 1.91% | 1.11% | 1.31% | 0.72% | 0.43% | -1.26% | 2.13% | 1.12% | 0.34% | 0.84% | -0.4% | 1.84% | 1.29% | 2.07% | 0.39% | 1.19% | 0.71% | 2.07% | 3.4% | 1.98% | 2.68% | 2.9% | 3.84% | -0.41% |
| Operating CF Growth % | -74.9% | 355.76% | -64.93% | 200.52% | -189.76% | -54.3% | 82% | 66.45% | -12.66% | 85% | 61.7% | 133.57% | -160.71% | 88.71% | 219.9% | -54.31% | 343.02% | -116.93% | 38.52% | -36.92% | 459.94% | -65.02% | 94.03% | -65.86% | -38.12% | 62.95% | -22.33% | -3.54% | -19.76% | 1186.76% | -146.58% |
| Net Income | -265.8M | -128.8M | -600K | 36.4M | -62.5M | 156.1M | -72M | 112.4M | 22.9M | 71.6M | 122.6M | 53.8M | 23.7M | 58.9M | 50.1M | 63.7M | 26.1M | -104.5M | -82.24M | 61.02M | 63.49M | 39.26M | 22.13M | 5.11M | 18.57M | 16.55M | 87.18M | 85.1M | 84.7M | 80.8M | 73M |
| Depreciation & Amortization | 52.2M | 53.3M | 50.9M | 50.1M | 51.9M | 51M | 45.3M | 53.9M | 26.2M | 22.7M | 21.3M | 22.3M | 21.7M | 22.1M | 25.4M | 31.4M | 34.9M | 40.9M | 45.96M | 42.6M | 41.73M | 42.22M | 44.14M | 47.8M | 45.43M | 44.4M | 39.47M | 36.2M | 28.9M | 28.3M | 26.1M |
| Stock-Based Compensation | 8.6M | 12.3M | 11.8M | 9.7M | 7.8M | 5.1M | 3.9M | 5.6M | 8.1M | 9.2M | 8M | 6.1M | 5.3M | 3.8M | 4.8M | 4.6M | 3.2M | 5.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 5M | 168.5M | -27.8M | -24.9M | -72.1M | 21.6M | -57.1M | -18.3M | -47.5M | -5.9M | 7.4M | -11.8M | -26.8M | -31.3M | 4.7M | -27.3M | -9.3M | -31M | 7.5M | -5.3M | -9.16M | -1.01M | -9.61M | 2.94M | 6.59M | -242K | -593K | -2.7M | -6.4M | 0 | 0 |
| Other Non-Cash Items | 262.9M | -24.8M | 69.8M | 7.4M | 139.6M | -138.6M | 145.6M | -25M | 140.7M | 9M | -90.3M | 10.8M | 31.7M | 33.9M | -2.3M | 29M | 13.9M | 84.1M | 91.69M | 10.6M | 10.46M | 3.42M | 0 | 0 | 0 | 0 | -8.57M | 0 | 0 | 100K | 100K |
| Working Capital Changes | 10.4M | 42.1M | -77.2M | -2M | -141M | -10.2M | 120.3M | -26.4M | -89M | -36.3M | -31M | -57.7M | -125.6M | 27.9M | -21.6M | -82.3M | -27M | -11.8M | 34.97M | -28.83M | 12.4M | -63.13M | 2.7M | -25.25M | 19.02M | 84.09M | -28.62M | -4.2M | 11.4M | 38.6M | -112.8M |
| Change in Receivables | 68.3M | 94.6M | -20.9M | 147.2M | -99.3M | -150.7M | 55.9M | 46M | -32M | -126.2M | -93.9M | -64.2M | -155.4M | -14.6M | -57.9M | -148.5M | -95.5M | 116.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -16.8M | 58.6M | -28.2M | -75.9M | 0 | 0 | 0 | 0 | 0 | 0 | -27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -7.3M | -10.5M | -31.1M | -62.5M | 44.3M | 155.8M | 10.5M | -43M | 17M | 63.9M | 58.4M | 50.9M | 36.4M | 43.8M | 0 | 58.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 17.9M | 22.3M | -361.6M | -14.1M | 167.5M | -180.7M | 9.8M | -94.3M | -29.8M | -59.3M | 10.3M | -17.6M | -27.2M | -20.8M | -28.1M | -20.7M | -11.3M | -23.4M | -64.08M | -82.42M | -64.97M | -52.42M | -36.19M | -32.57M | -36.85M | -49.42M | -69.25M | -87.1M | -21.2M | -87.4M | -500K |
| Capital Expenditures | -7.1M | -8.5M | -11.1M | -15.3M | -12M | -11.2M | -15.5M | -20M | -25.6M | -22.9M | -12.7M | -16.9M | -21.7M | -20M | -21.5M | -15.4M | -11M | -13.1M | -31.14M | -45.98M | -45.53M | -28.53M | -35.56M | -30.22M | -33.41M | -54.31M | -54.24M | -82.3M | -59.2M | -39.7M | -36.5M |
| CapEx % of Revenue | 0.17% | 0.2% | 0.26% | 0.32% | 0.24% | 0.23% | 0.34% | 0.37% | 0.46% | 0.43% | 0.24% | 0.31% | 0.39% | 0.37% | 0.39% | 0.28% | 0.22% | 0.3% | 0.56% | 0.81% | 0.81% | 0.54% | 0.71% | 0.7% | 0.77% | 1.28% | 1.21% | 1.93% | 1.45% | 1.03% | 1.11% |
| Acquisitions | 21.8M | 0 | -350.5M | 0 | 167.3M | -207.1M | -32.4M | -86.4M | 25.6M | -37.2M | 23.3M | -500K | -5.7M | 0 | -6.6M | -6.5M | 0 | -7.5M | -32.71M | -48.42M | -4.66M | 0 | 0 | 0 | 0 | -192K | -20.92M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.2M | 24.4M | 0 | -800K | -304.2M | 21.4M | 42.4M | -6.9M | -32.7M | 800K | -300K | -200K | 200K | -800K | -14.9M | 1.2M | -300K | -2.8M | -236K | 11.97M | -550K | -25.09M | -736K | -2.49M | -3.48M | 0 | -8.02M | -10.9M | -17.2M | -8.4M | -10.7M |
| Cash from Financing | -97.4M | -161.1M | 214.8M | -59.6M | -50.6M | -8.1M | -8.1M | -16.1M | -26.5M | -3.4M | -66.9M | -42.2M | 56.6M | -43.7M | -39.4M | 6.1M | -35.3M | 9.4M | -8.77M | -22.48M | 1.39M | 19.98M | -13.81M | -26.15M | -38.24M | -55.23M | -30.33M | -33.1M | -114.3M | -17.1M | -5.2M |
| Debt Issued (Net) | -74.1M | -137.5M | 239.4M | -1.9M | -600K | -1.7M | -3.7M | -1M | -7.8M | 10.1M | -55.9M | -34.7M | 63.9M | -35.8M | -31.9M | 10.9M | -59.7M | 22.2M | 8.3M | 25.72M | 9.71M | 26.51M | -8.19M | 0 | -11.72M | -24.9M | 10.63M | -400K | -7.3M | 13.3M | 25.2M |
| Equity Issued (Net) | -10.4M | -12.3M | -10M | -42.2M | -35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8M | -28.92M | 10.97M | 5.79M | 15.2M | -12M | -12.22M | 75K | -5.65M | 1.3M | -72.7M | 2.7M | 1.2M |
| Dividends Paid | -10.9M | -11M | -10.9M | -11M | -10.6M | -4M | -3M | -11.9M | -11.8M | -11.6M | -10.7M | -7.7M | -7.6M | -7.6M | -7.6M | -3.8M | 0 | 0 | -19.05M | -19.11M | -16.42M | -14.27M | -14.04M | -14.14M | -14.29M | -30.41M | -35.3M | -34M | -34.2M | -33.2M | -31.6M |
| Share Repurchases | -10.4M | -12.3M | -10M | -42.2M | -35M | -600K | -1.2M | -2.5M | -6.9M | -1.8M | -2.2M | -1.8M | 0 | 0 | 0 | 0 | 0 | 0 | -8M | -34.7M | 0 | 0 | -3K | -26.15M | -13.22M | -64K | -5.74M | -600K | -75.9M | 0 | 0 |
| Other Financing | -2M | -300K | -3.7M | -4.5M | -4.4M | -2.4M | -1.4M | -3.2M | -6.9M | -1.9M | -300K | -1.6M | 300K | -300K | 100K | -1M | 24.4M | -12.8M | 9.99M | -165K | -2.87M | 1.95M | -6.78M | 0 | 0 | 0 | 0 | 0 | -100K | 100K | 0 |
| Net Change in Cash | -4.2M | -7.9M | -122M | 5.2M | 42.9M | -108.6M | 197.1M | -9.1M | 3.2M | 3.7M | -12.6M | -40.9M | -42.6M | 49.4M | -4.7M | 500K | -8.4M | -29.4M | 25.46M | -25.61M | 54.73M | -15.65M | 11.18M | -24.56M | 17.48M | 40.14M | -10.71M | -5.8M | -16.9M | 43.3M | -19.3M |
| Free Cash Flow | 66.2M | 114.1M | 15.8M | 61.4M | -88.3M | 73.8M | 170.5M | 82.2M | 35.8M | 47.4M | 25.3M | 6.6M | -91.7M | 95.3M | 39.6M | 3.7M | 30.8M | -30.3M | 70.46M | 27.37M | 70.74M | -7.76M | 23.8M | 371K | 56.2M | 90.49M | 34.62M | 32.1M | 59.4M | 108.1M | -50.1M |
| FCF Margin % | 1.6% | 2.68% | 0.36% | 1.27% | -1.78% | 1.5% | 3.78% | 1.53% | 0.65% | 0.88% | 0.48% | 0.12% | -1.65% | 1.76% | 0.73% | 0.07% | 0.62% | -0.7% | 1.28% | 0.48% | 1.26% | -0.15% | 0.48% | 0.01% | 1.3% | 2.13% | 0.77% | 0.75% | 1.45% | 2.81% | -1.52% |
| FCF Growth % | -0.3% | 622.15% | -74.27% | 169.54% | -219.65% | -56.72% | 107.42% | 129.61% | -24.47% | 87.35% | 283.33% | 107.2% | -196.22% | 140.66% | 970.27% | -87.99% | 201.65% | -143% | 157.45% | -61.31% | 1011.23% | -132.61% | 6316.17% | -99.34% | -37.89% | 161.37% | 7.85% | -45.96% | -45.05% | 315.77% | -943.75% |
| FCF per Share | 1.92 | 3.25 | 0.45 | 1.69 | -2.32 | 1.87 | 4.34 | 2.10 | 0.92 | 1.22 | 0.66 | 0.17 | -2.45 | 2.55 | 1.07 | 0.10 | 0.85 | -0.87 | 2.02 | 0.75 | 1.95 | -0.22 | 0.67 | 0.01 | 1.54 | 2.57 | 0.97 | 0.89 | 1.57 | 2.84 | -1.31 |
| FCF Conversion (FCF/Net Income) | -0.25x | -0.48x | -44.83x | 2.11x | 1.22x | 0.54x | -2.58x | 0.91x | 2.68x | 0.98x | 0.31x | 0.44x | -2.95x | 1.96x | 1.22x | 0.30x | 1.60x | 0.16x | -1.24x | 1.20x | 1.83x | 0.53x | 2.68x | 5.99x | 4.83x | 8.75x | 1.02x | 1.34x | 1.40x | 1.83x | -0.19x |
| Interest Paid | 0 | 0 | 0 | 2.8M | 1.3M | 1.7M | 0 | 0 | 1.6M | 1.9M | 2.7M | 2.7M | 1.6M | 2M | 2.6M | 2.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 8.9M | 61.2M | 14.1M | 0 | 0 | 18.3M | 20.1M | 24M | 23.5M | 10.9M | 16.9M | 18.8M | 21.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical Working Capital Volatility
As reported in recent quarterly filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -25.38 in 2024Q3 to 5.02 in 2025Q2, suggesting that reported earnings are currently poor proxies for the firm's actual cash-generating capacity.
The extreme divergence between net income and operating cash flow indicates that non-cash charges and accounting adjustments are significantly distorting the bottom line. Investors should monitor whether this volatility is a byproduct of restructuring efforts or a fundamental breakdown in the company's ability to convert service delivery into realized cash.
Based on the provided financial data, free cash flow margins have exhibited significant instability, ranging from a high of 8.5% in 2025Q2 to a low of -3.0% in 2025Q3, reflecting the company's struggle to maintain consistent cash generation amidst a contracting revenue environment.
The inability to sustain positive free cash flow suggests that the company's current operating model is highly sensitive to cyclical downturns. This inconsistency warrants further investigation into whether the firm can achieve a stable cash flow profile without a more permanent shift toward higher-margin, less cyclical service offerings.
According to historical cash flow statements, working capital changes are the primary driver of quarterly cash fluctuations, with a notable $63.2 million inflow in 2025Q2 followed by a $44.1 million outflow in 2026Q1, highlighting the inherent cyclicality of the firm's accounts receivable and payable cycles.
The high sensitivity of cash flow to working capital movements suggests that the company's liquidity is heavily dependent on the timing of client payments and the management of temporary labor payroll. This pattern implies that any slowdown in client payment cycles could rapidly deplete available cash reserves.
As evidenced by recent financial statements, the company has continued to prioritize dividend payments despite negative net income, while simultaneously navigating significant cash outflows for acquisitions, such as the $423 million net acquisition spend observed in 2024Q2, which may strain future liquidity buffers.
The decision to maintain dividends during periods of negative cash flow suggests a commitment to shareholder returns that may be at odds with the current operational reality. Investors should monitor whether this capital allocation strategy remains sustainable if the current trend of negative operating cash flow persists.
Quick answers to the most common questions about buying KELYA stock.
Kelly Services, Inc. (KELYA) generated $122.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Kelly Services, Inc. (KELYA) generated $114.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Kelly Services, Inc. (KELYA) spent $8.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Kelly Services, Inc. (KELYA) returned $11.0M to shareholders via cash dividends and spent $12.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.