Revenue contraction remains a persistent headwind, with the most recent quarter reporting a 10.7% year-over-year decline to $1.0 billion alongside structural margin compression that limits operating profitability.
| 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 |
|---|
| Sales/Revenue | 4.13B | 4.25B | 4.33B | 4.84B | 4.97B | 4.91B | 4.52B | 5.36B | 5.51B | 5.37B | 5.28B | 5.52B | 5.56B | 5.41B | 5.45B | 5.55B | 4.95B | 4.31B | 5.52B | 5.67B | 5.61B | 5.29B | 4.98B | 4.33B | 4.32B | 4.26B | 4.49B | 4.27B | 4.09B | 3.85B | 3.3B |
| Revenue Growth % | -7.3% | -1.87% | -10.42% | -2.61% | 1.13% | 8.72% | -15.68% | -2.87% | 2.6% | 1.85% | -4.37% | -0.8% | 2.76% | -0.69% | -1.81% | 12.13% | 14.73% | -21.79% | -2.65% | 1.1% | 5.97% | 6.13% | 15.23% | 0.04% | 1.56% | -5.13% | 5.11% | 4.32% | 6.21% | 16.67% | 22.77% |
| Cost of Goods Sold | 3.32B | 3.4B | 3.45B | 3.87B | 3.95B | 3.99B | 3.69B | 4.39B | 4.54B | 4.42B | 4.37B | 4.6B | 4.65B | 4.52B | 4.55B | 4.66B | 4.16B | 3.61B | 4.54B | 4.68B | 4.68B | 4.43B | 4.19B | 3.63B | 3.63B | 3.56B | 3.66B | 3.47B | 3.33B | 3.14B | 2.66B |
| COGS % of Revenue | - | 79.93% | 79.63% | 80.12% | 79.62% | 81.28% | 81.67% | 81.92% | 82.37% | 82.25% | 82.82% | 83.32% | 83.67% | 83.57% | 83.55% | 83.89% | 83.95% | 83.74% | 82.28% | 82.55% | 83.5% | 83.76% | 83.98% | 83.89% | 83.98% | 83.61% | 81.46% | 81.21% | 81.42% | 81.58% | 80.65% |
| Gross Profit | 803M | 853M | 882.6M | 961.4M | 1.01B | 919.2M | 827.6M | 968.4M | 972.2M | 954.1M | 906.3M | 920.3M | 908.4M | 889.5M | 896.6M | 894.1M | 794.5M | 701.7M | 977.65M | 989.09M | 925.21M | 858.89M | 798.51M | 696.63M | 692.73M | 697.86M | 831.77M | 802.2M | 760.2M | 709.6M | 638.9M |
| Gross Margin % | 19.46% | 20.07% | 20.37% | 19.88% | 20.38% | 18.72% | 18.33% | 18.08% | 17.63% | 17.75% | 17.18% | 16.68% | 16.33% | 16.43% | 16.45% | 16.11% | 16.05% | 16.26% | 17.72% | 17.45% | 16.5% | 16.24% | 16.02% | 16.11% | 16.02% | 16.39% | 18.54% | 18.79% | 18.58% | 18.42% | 19.35% |
| Gross Profit Growth % | - | -3.35% | -8.2% | -4.98% | 10.07% | 11.07% | -14.54% | -0.39% | 1.9% | 5.27% | -1.52% | 1.31% | 2.12% | -0.79% | 0.28% | 12.54% | 13.23% | -28.23% | -1.16% | 6.9% | 7.72% | 7.56% | 14.62% | 0.56% | -0.73% | -16.1% | 3.69% | 5.52% | 7.13% | 11.07% | 13.26% |
| Operating Expenses | 881.8M | 922.8M | 897.7M | 937.1M | 997M | 870.6M | 921.2M | 883.1M | 884.8M | 870.8M | 841.3M | 853.6M | 886.5M | 834.5M | 821.2M | 836.4M | 754.4M | 794.7M | 1.05B | 909.01M | 846.2M | 802.74M | 763.01M | 687.89M | 662.33M | 669.89M | 686.09M | 658.3M | 619.6M | 573.9M | 517.9M |
| OpEx % of Revenue | - | 21.71% | 20.72% | 19.38% | 20.08% | 17.73% | 20.4% | 16.49% | 16.05% | 16.2% | 15.94% | 15.47% | 15.94% | 15.42% | 15.07% | 15.07% | 15.24% | 18.42% | 18.99% | 16.04% | 15.1% | 15.18% | 15.31% | 15.9% | 15.32% | 15.74% | 15.29% | 15.42% | 15.14% | 14.9% | 15.68% |
| Selling, General & Admin | 388M | 825.9M | 785M | 875.2M | 922.4M | 853.6M | 784.6M | 883.1M | 884.8M | 870.8M | 841.3M | 853.6M | 886.5M | 834.5M | 821.2M | 836.4M | 754.4M | 794.7M | 967.39M | 909.01M | 846.2M | 802.74M | 763.01M | 687.89M | 662.33M | 669.89M | 646.62M | 622.1M | 590.7M | 545.6M | 491.8M |
| SG&A % of Revenue | - | 19.43% | 18.12% | 18.1% | 18.58% | 17.39% | 17.37% | 16.49% | 16.05% | 16.2% | 15.94% | 15.47% | 15.94% | 15.42% | 15.07% | 15.07% | 15.24% | 18.42% | 17.53% | 16.04% | 15.1% | 15.18% | 15.31% | 15.9% | 15.32% | 15.74% | 14.41% | 14.57% | 14.43% | 14.16% | 14.89% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 96.9M | 112.7M | 61.9M | 74.6M | 17M | 136.6M | -1.2M | -600K | -1.6M | -700K | -4.2M | -5.3M | -4.5M | -3.5M | 0 | 0 | 0 | 80.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 39.47M | 36.2M | 28.9M | 28.3M | 26.1M |
| Operating Income | -78.8M | -69.8M | -15.1M | 24.3M | 14.8M | 48.6M | -93.6M | 81.8M | 87.4M | 83.3M | 65M | 66.7M | 21.9M | 53.3M | 72.3M | 57.7M | 38.1M | -146.1M | -70.27M | 80.08M | 79.02M | 56.15M | 35.49M | 8.74M | 30.39M | 27.97M | 145.69M | 143.9M | 140.6M | 135.7M | 121M |
| Operating Margin % | -1.91% | -1.64% | -0.35% | 0.5% | 0.3% | 0.99% | -2.07% | 1.53% | 1.59% | 1.55% | 1.23% | 1.21% | 0.39% | 0.98% | 1.33% | 1.04% | 0.77% | -3.39% | -1.27% | 1.41% | 1.41% | 1.06% | 0.71% | 0.2% | 0.7% | 0.66% | 3.25% | 3.37% | 3.44% | 3.52% | 3.66% |
| Operating Income Growth % | - | -362.25% | -162.14% | 64.19% | -69.55% | 151.92% | -214.43% | -6.41% | 4.92% | 28.15% | -2.55% | 204.57% | -58.91% | -26.28% | 25.3% | 51.44% | 126.08% | -107.91% | -187.75% | 1.35% | 40.72% | 58.21% | 306.24% | -71.25% | 8.67% | -80.8% | 1.24% | 2.35% | 3.61% | 12.15% | 15.13% |
| EBITDA | -34.9M | -27.4M | 35.8M | 58.2M | 48.2M | 78.4M | -69.4M | 134.8M | 113.2M | 106M | 86.3M | 89M | 43.6M | 75.4M | 97.7M | 89.1M | 73M | -105.2M | -24.31M | 122.68M | 120.75M | 98.37M | 79.63M | 56.53M | 75.82M | 72.36M | 185.15M | 180.1M | 169.5M | 164M | 147.1M |
| EBITDA Margin % | -0.85% | -0.64% | 0.83% | 1.2% | 0.97% | 1.6% | -1.54% | 2.52% | 2.05% | 1.97% | 1.64% | 1.61% | 0.78% | 1.39% | 1.79% | 1.61% | 1.47% | -2.44% | -0.44% | 2.16% | 2.15% | 1.86% | 1.6% | 1.31% | 1.75% | 1.7% | 4.13% | 4.22% | 4.14% | 4.26% | 4.45% |
| EBITDA Growth % | -329.61% | -176.54% | -38.49% | 20.75% | -38.52% | 212.97% | -151.48% | 19.08% | 6.79% | 22.83% | -3.03% | 104.13% | -42.18% | -22.82% | 9.65% | 22.05% | 169.39% | -332.69% | -119.82% | 1.6% | 22.75% | 23.53% | 40.86% | -25.44% | 4.78% | -60.92% | 2.8% | 6.25% | 3.35% | 11.49% | 15.1% |
| D&A (Non-Cash Add-back) | 43.9M | 42.4M | 50.9M | 33.9M | 33.4M | 29.8M | 24.2M | 53M | 25.8M | 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 |
| EBIT | -69.4M | 59.3M | -11M | 65.3M | 70M | 52.6M | 34.9M | 120.6M | -6.3M | 84.4M | 153.5M | 67M | 22.1M | 51.6M | 72.2M | 61M | 38.4M | -144.2M | -69.6M | 80.08M | 78.04M | 53.75M | 31.11M | 8.74M | 30.39M | 27.97M | 145.69M | 143.9M | 140.6M | 135.7M | 121M |
| Net Interest Income | -5.6M | 0 | -4.1M | 3.5M | 200K | -2.3M | -2.4M | -3.1M | -2.3M | -2M | -3.4M | -3.5M | -2.5M | -2.4M | -2.4M | -2.4M | -4.9M | -2.8M | -300K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.3M | 0 | 6.8M | 6.7M | 2.3M | 200K | 600K | 1.1M | 800K | 700K | 400K | 300K | 500K | 400K | 1M | 1M | 800K | 1.3M | 3.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 7.9M | 0 | 10.9M | 3.2M | 2.1M | 2.5M | 3M | 4.2M | 3.1M | 2.7M | 3.8M | 3.8M | 3M | 2.8M | 3.4M | 3.4M | 5.7M | 4.1M | 87.5M | 0 | 0 | 187K | 861K | 77K | 0 | 381K | 409K | 200K | 0 | 0 | 0 |
| Other Income/Expense | -14.3M | -9M | -6.8M | 600K | -85.2M | 142.6M | -12.4M | 31M | -96.8M | -1.6M | 87.6M | -4.2M | -5.3M | -4.5M | -5.7M | -100K | -5.4M | -43.2M | 8.11M | 3.04M | 1.47M | -187K | -861K | -77K | -11.82M | -381K | -409K | -200K | 3M | 1.3M | 1.9M |
| Pretax Income | -93.1M | -78.8M | -21.9M | 24.9M | -70.4M | 191.2M | -106M | 112.8M | -9.4M | 81.7M | 151.5M | 62.5M | 16.6M | 48.8M | 68.8M | 57.6M | 32.7M | -148.3M | -73.72M | 83.29M | 80.49M | 55.97M | 34.63M | 8.66M | 30.75M | 27.59M | 145.28M | 143.7M | 143.6M | 137M | 122.9M |
| Pretax Margin % | -2.26% | -1.85% | -0.51% | 0.51% | -1.42% | 3.89% | -2.35% | 2.11% | -0.17% | 1.52% | 2.87% | 1.13% | 0.3% | 0.9% | 1.26% | 1.04% | 0.66% | -3.44% | -1.34% | 1.47% | 1.44% | 1.06% | 0.69% | 0.2% | 0.71% | 0.65% | 3.24% | 3.37% | 3.51% | 3.56% | 3.72% |
| Income Tax | 172.7M | 175.3M | -21.3M | -11.5M | -7.9M | 35.1M | -34M | 400K | -27.1M | 12.8M | 30M | 8.7M | -7.1M | -10.1M | 19.1M | -7.3M | 6.6M | -43.2M | 7.99M | 29.57M | 23.11M | 16.7M | 12.5M | 3.55M | 12.19M | 11.04M | 58.1M | 58.6M | 58.9M | 56.2M | 49.9M |
| Effective Tax Rate % | -185.5% | -222.46% | 97.26% | -46.18% | 11.22% | 18.36% | 32.08% | 0.35% | 288.3% | 15.67% | 19.8% | 13.92% | -42.77% | -20.7% | 27.76% | -12.67% | 20.18% | 29.13% | -10.84% | 35.5% | 28.72% | 29.84% | 36.1% | 40.99% | 39.62% | 40.01% | 39.99% | 40.78% | 41.02% | 41.02% | 40.6% |
| Net Income | -265.8M | -254.1M | -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 |
| Net Margin % | -6.44% | -5.98% | -0.01% | 0.75% | -1.26% | 3.18% | -1.59% | 2.1% | 0.42% | 1.33% | 2.32% | 0.97% | 0.43% | 1.09% | 0.92% | 1.15% | 0.53% | -2.42% | -1.49% | 1.08% | 1.13% | 0.74% | 0.44% | 0.12% | 0.43% | 0.39% | 1.94% | 1.99% | 2.07% | 2.1% | 2.21% |
| Net Income Growth % | -1190.29% | -42250% | -101.65% | 158.24% | -140.04% | 316.81% | -164.06% | 390.83% | -68.02% | -41.6% | 127.88% | 127% | -59.76% | 17.56% | -21.35% | 144.06% | 124.98% | -27.07% | -234.78% | -3.9% | 61.71% | 77.42% | 333.07% | -72.48% | 12.21% | -81.02% | 2.44% | 0.47% | 4.83% | 10.68% | 5.04% |
| Net Income (Continuing) | -265.8M | -254.1M | -600K | 36.4M | -62.5M | 156.1M | -72M | 112.4M | 17.7M | 71.6M | 120.8M | 53.8M | 23.7M | 58.9M | 49.7M | 64.9M | 26.1M | -105.1M | -81.59M | 53.72M | 56.78M | 36.28M | 21.21M | 5.11M | 18.57M | 16.55M | 87.18M | 85.1M | 84.7M | 80.8M | 73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -7.73 | -7.24 | -0.02 | 0.98 | -1.66 | 3.92 | -1.85 | 2.84 | 0.59 | 1.81 | 3.13 | 1.39 | 0.61 | 1.54 | 1.32 | 1.69 | 0.71 | -3.00 | -2.36 | 1.67 | 1.75 | 1.09 | 0.60 | 0.14 | 0.51 | 0.47 | 2.43 | 2.36 | 2.23 | 2.12 | 1.91 |
| EPS Growth % | -1253.91% | -42740.24% | -101.72% | 159.04% | -142.35% | 311.89% | -165.14% | 381.36% | -67.4% | -42.17% | 125.18% | 127.87% | -60.39% | 16.67% | -21.89% | 138.03% | 123.67% | -27.12% | -241.32% | -4.57% | 60.55% | 81.67% | 328.57% | -72.55% | 8.51% | -80.66% | 2.97% | 5.83% | 5.19% | 10.99% | 4.37% |
| EPS (Basic) | - | -7.24 | -0.02 | 0.99 | -1.66 | 3.93 | -1.85 | 2.85 | 0.59 | 1.84 | 3.15 | 1.39 | 0.61 | 1.54 | 1.32 | 1.69 | 0.71 | -3.00 | -2.36 | 1.68 | 1.76 | 1.10 | 0.60 | 0.14 | 0.52 | 0.47 | 2.44 | 2.37 | 2.24 | 2.12 | 1.92 |
| Diluted Shares Outstanding | 34.4M | 35.1M | 35.5M | 36.3M | 38.1M | 39.5M | 39.3M | 39.2M | 39.1M | 39M | 38.4M | 37.9M | 37.5M | 37.3M | 37M | 36.8M | 36.1M | 34.83M | 34.8M | 36.49M | 36.31M | 36.02M | 35.35M | 36.5M | 36.41M | 35.21M | 35.87M | 36.06M | 37.95M | 38.1M | 38.22M |
| Basic Shares Outstanding | 34.4M | 35.1M | 35.5M | 35.9M | 38.1M | 39.4M | 39.3M | 39.1M | 38.8M | 38.3M | 38.1M | 37.8M | 37.5M | 37.3M | 37M | 36.8M | 36.1M | 34.83M | 34.8M | 36.36M | 36M | 35.69M | 35.35M | 36.5M | 35.71M | 35.21M | 35.73M | 35.91M | 37.74M | 38.1M | 38.02M |
| Dividend Payout Ratio | - | - | - | 30.22% | - | 2.56% | - | 10.59% | 51.53% | 16.2% | 8.73% | 14.31% | 32.07% | 12.9% | 15.17% | 5.97% | - | - | - | 31.33% | 25.86% | 36.34% | 63.46% | 276.77% | 76.97% | 183.75% | 40.5% | 39.95% | 40.38% | 41.09% | 43.29% |
Cyclical Revenue Contraction
As reported in recent financial filings, KELYA's revenue has experienced a sustained decline, with the most recent quarter showing a 10.7% year-over-year contraction to $1.0 billion, reflecting ongoing challenges in maintaining volume across its core staffing segments amidst a broader industrial slowdown in the United States.
The consistent negative growth trajectory suggests that the company is struggling to offset volume losses in its commoditized Professional & Industrial segment. Investors should monitor whether the strategic pivot toward higher-margin Education and SET services can eventually stabilize the top line or if the current contraction represents a structural loss of market share.
Based on the provided income statement data, KELYA's gross margin has fluctuated within a narrow 17.9% to 21.4% range over the last ten quarters, indicating limited pricing power and a high sensitivity to the underlying wage inflation inherent in the competitive staffing and employment services industry.
The inability to consistently expand gross margins suggests that the company remains tethered to low-margin industrial labor demand. This lack of margin expansion, combined with recent operating losses, implies that the firm's current service mix is not yet providing the defensive characteristics necessary to insulate profitability from cyclical downturns.
According to the company's quarterly income statements, operating income has frequently dipped into negative territory, with a -1.64% operating margin observed in recent periods, signaling that the firm's fixed cost base is currently too heavy to be absorbed by the prevailing level of gross profit generation.
The failure to achieve positive operating leverage suggests that SG&A expenses are not scaling efficiently with revenue, potentially due to ongoing restructuring or digital transformation costs. Analysts should investigate whether these expenses are temporary investments or if they represent a permanent, elevated cost structure that hinders profitability.
As evidenced by the significant net income swings, including a $150.1 million loss in 2025Q3, KELYA's bottom-line performance appears heavily impacted by non-operating items and potential impairment charges that mask the underlying cash-generating capacity of the core North American staffing operations and its specialized Education segment.
The volatility in EPS, ranging from positive figures to deep losses, warrants caution regarding the sustainability of reported earnings. Investors should look past these headline figures to determine if the core business is generating positive cash flow, as the current net income profile appears distorted by non-recurring accounting events.
While management emphasizes a transition toward specialized services, the income statement data suggests that the firm's reliance on the P&I segment remains a significant drag, as evidenced by the 10.7% revenue decline in 2026Q1 despite the company's stated strategic focus on higher-margin, less cyclical business units.
Short-term observers may argue that the current negative margins are merely a trough in the business cycle, yet the persistent revenue decay suggests a more fundamental challenge. The market may be overestimating the speed at which the Education and SET segments can replace the lost volume from the declining industrial business.
Quick answers to the most common questions about buying KELYA stock.
For fiscal year 2025, Kelly Services, Inc. (KELYA) reported total revenue of $4.25B. This represents a 28.7% increase compared to $3.30B in 1996.
Kelly Services, Inc. (KELYA) reported a net loss of $254.1M for the fiscal year ending 2025.
Kelly Services, Inc. (KELYA) reported an operating income of $-69.8M, resulting in an operating profit margin of -1.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Kelly Services, Inc. (KELYA) generated $853.0M in gross profit for the year, representing a gross profit margin of 20.1%. This demonstrates the company's core pricing power and production efficiency.