Revenue has contracted for eight of the last ten quarters, with a 5.8% year-over-year decline in 2026Q2, while gross margins have remained resilient in the 18-21% range, though operating margins remain thin at 1.6%.
Kelly Services, Inc. (KELYA) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 4.06B | 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 % | -9.63% | -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 | 3.27B | 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 | 789.5M | 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 % | 19.43% | 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 | 874.4M | 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 | 583.9M | 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 | 1000K | 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 | -84.9M | -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 % | -2.09% | -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 | -51.1M | -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 % | -1.26% | -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 % | -295.79% | -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) | 33.4M | 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 | -83.6M | 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 | -4.6M | 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 | 1.9M | 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 | 6.5M | 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 | -13.7M | -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 | -98.6M | -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 % | -2.43% | -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 | 174.8M | 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 % | -177.28% | -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 | -273.4M | -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 % | -6.73% | -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 % | -4309.68% | -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) | -273.4M | -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) | -7.77 | -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 % | -4763.01% | -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 | 35.2M | 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 | 34.7M | 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% |
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.
Key Metrics
Top Statement Risk
Persistent revenue contraction
Metrics are mathematically derived from official filings.
Sustained Top-Line Contraction
Kelly Services has experienced a prolonged period of revenue decline, with the most recent quarter showing a 5.8% year-over-year drop, extending a trend of negative growth seen in eight of the last ten quarters.
The revenue trajectory indicates a structural challenge rather than a cyclical blip, as the company has failed to post consistent positive growth for over two years. This persistent contraction suggests the business is losing market share or facing significant headwinds in its core staffing markets, which may be impacting its ability to achieve scale.
Gross Margin Resilience Amidst Pressure
Despite the top-line pressure, Kelly's gross margin has remained relatively stable in the 18-21% range, outperforming peer ManpowerGroup's 16.7% margin, which suggests some degree of pricing discipline or a favorable mix shift.
The stability in gross margin is a positive sign, indicating the company is not engaging in destructive price competition to maintain volume. However, the margin level itself is modest, and its sustainability is questionable if revenue continues to decline, as fixed cost absorption could become a more significant headwind.
Negative Operating Leverage Amplifies Losses
The income statement reveals severe negative operating leverage, as a 5.8% revenue decline in 2026Q2 translated into a 41.5% collapse in diluted EPS, highlighting the high fixed-cost nature of the business model.
The dramatic drop in EPS relative to revenue underscores the company's cost structure vulnerability. With SG&A and other overheads representing a large portion of revenue, even modest top-line declines rapidly erode profitability, as seen in the swing from a $16.1M operating income to a near-breakeven result in the prior quarter.
SG&A Discipline Under Severe Strain
SG&A expenses as a percentage of revenue have fluctuated significantly, rising to 19.6% in 2026Q2 from 18.9% in the prior quarter, suggesting that cost-cutting efforts are struggling to keep pace with the revenue decline.
The variability in SG&A as a percentage of revenue indicates that management's expense control measures may be reactive rather than structural. The inability to consistently reduce overhead in line with falling sales is a key factor in the company's margin compression and operational losses.
The Sustainability of Margin Stability
A critical challenge to the narrative is whether the stable gross margin can be maintained, as the 2026Q1 dip to 17.9% suggests it is vulnerable to mix shifts or pricing pressure that could emerge if the revenue decline accelerates.
Short-sellers would focus on the fact that the company's operating profitability is razor-thin and highly sensitive to any deterioration in gross margin. The recent quarter's improvement to 20.4% may be a temporary reprieve, and a return to the lower margin seen in 2026Q1 would likely push the company back into operating losses, questioning the viability of its current cost structure.