Revenue Performance - In 2025, revenue from services decreased by 1.9% year-over-year to $4,250.9 million, with a significant decline in the Enterprise Talent Management (ETM) segment by 8.7%[161] - Revenue from staffing services decreased by 11.7% in the ETM segment, reflecting lower demand from large customers[171] - The Science, Engineering & Technology (SET) segment saw a revenue increase of 6.4% to $1,240.4 million, primarily due to the acquisition of MRP[170] - The Education segment's revenue increased by 3.9% to $1,010.7 million, driven by higher fill rates and bill rates[170] Profitability - Gross profit decreased by 3.4% to $853.0 million, with a gross profit rate of 20.1%, down 30 basis points from the previous year[156][162] - Gross profit for the Enterprise Talent Management (ETM) segment decreased to $392.8 million in 2025, down 11.7% from $444.9 million in 2024, and down 4.5% from $465.7 million in 2023[178] - Science, Engineering & Technology (SET) gross profit increased to $313.2 million in 2025, a 5.1% increase from $297.9 million in 2024, driven by the acquisition of MRP[180] - Education segment gross profit rose to $147.0 million in 2025, up 5.2% from $139.8 million in 2024, attributed to higher revenue volume[181] - Consolidated total gross profit decreased to $853.0 million in 2025, down 3.4% from $882.6 million in 2024, and down 8.2% from $961.4 million in 2023[186] Expenses - Total selling, general and administrative (SG&A) expenses increased by 0.9% to $825.9 million, primarily due to the acquisition of Motion Recruitment Partners (MRP)[163] - ETM segment SG&A expenses decreased to $373.0 million in 2025, a 3.3% decline from $385.9 million in 2024, primarily due to lower salary-related costs[187] - SET segment SG&A expenses increased to $247.1 million in 2025, a 9.0% increase from $226.7 million in 2024, mainly due to higher employee-related costs from the MRP acquisition[188] Operational Losses - Loss from operations in 2025 totaled $69.8 million, compared to a loss of $15.1 million in 2024, primarily due to increased integration and restructuring costs[165] - The goodwill impairment charge for 2025 was $102.0 million, significantly higher than the $72.8 million charge in 2024, driven by reduced demand and integration costs[164] Tax and Cash Flow - Income tax expense in 2025 was $175.3 million, compared to a tax benefit of $21.3 million in 2024, impacted by valuation allowances against deferred tax assets[167] - The company generated $122.6 million of net cash from operating activities in 2025, a significant increase from $26.9 million in 2024[206] Goodwill and Impairment - As of year-end 2025, total goodwill amounted to $202.1 million, while it was $304.2 million at year-end 2024[245] - The company recorded a goodwill impairment charge of $72.8 million for the Softworld reporting unit in 2024, with a remaining goodwill balance of $38.5 million[244] - The estimated fair value of each reporting unit tested in 2025 exceeded its carrying value by more than 10%, indicating no impairment of goodwill[242] - The company assessed that there were no indications of impairment for the PTS and Education reporting units, requiring no further testing[244] Liquidity and Capital Structure - Cash, cash equivalents, and restricted cash totaled $37.7 million at year-end 2025, down from $45.6 million at year-end 2024[205] - The debt-to-total capital ratio improved from 16.2% at year-end 2024 to 9.4% at year-end 2025, indicating a stronger capital structure[216] - As of year-end 2025, the company had $150.0 million available on its revolving credit facility and $105.5 million on its securitization facility[221] - The company maintains a strong liquidity position, having met all debt covenants related to its credit facilities throughout 2025[222] Future Outlook - Structural cost actions and portfolio reshaping are expected to support continued improvement in Kelly's growth prospects and financial profile through 2026 and beyond[151] - Future revenue and profit margin expectations are critical, as significant changes could lead to future goodwill impairment[241]

Kelly Services (KELYA) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -64.18%. A quarter ago, it was expected that this staffing company would post earnings of $0.42 per share when it actually produced earnings of $0.18, delivering a surprise of -57.14%.Over the last four quarters, t ...

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Exhibit 99.1 Kelly Reports Fourth-Quarter and Full-Year 2025 Earnings TROY, Mich. (February 12, 2026) – Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced fourth- quarter and full-year 2025 earnings. Chris Layden, chief executive officer, said, "In the fourth quarter, we capitalized on positive trends in each of our segments and delivered results that reflect our progress on stabilizing Kelly's performance. We also completed the first significant milestone in our te ...

Core Viewpoint - Kelly Services reported a decline in revenue and operating performance for the fourth quarter and full year of 2025, but the company is optimistic about future growth and efficiency improvements in 2026 [2][9]. Financial Performance - Fourth-quarter revenue was $1.1 billion, an 11.9% decrease from the same quarter in 2024, primarily due to lower demand in the ETM and SET segments, partially offset by a 1.3% growth in the Education segment [3][19]. - The operating loss for the fourth quarter was $0.7 million, a significant improvement from a loss of $56.7 million in Q4 2024 [4][19]. - Adjusted earnings for Q4 2025 were $8.3 million, down from $29.2 million in Q4 2024, with adjusted EBITDA of $21.0 million, a 51.7% decline year-over-year [4][20]. - For the full year 2025, revenue totaled $4.3 billion, a 1.9% decrease compared to 2024, with an organic decline of 6.2% when excluding the impact of acquisitions [7][9]. Tax and Earnings - The income tax expense for Q4 2025 was $126.2 million, compared to a tax benefit of $23.8 million in Q4 2024, reflecting a valuation allowance increase due to cumulative losses [5][10]. - Loss per share for Q4 2025 was $3.69, compared to a loss of $0.90 in Q4 2024, while adjusted earnings per share were $0.16, down from $0.79 [6][11]. Cash Flow and Shareholder Returns - The company generated a full-year free cash flow of $114 million, a sixfold increase from the previous year, and completed $10 million in Class A share repurchases during Q4 2025 [9][12]. - A quarterly cash dividend of $0.075 per share was declared, payable on March 11, 2026 [12]. Future Outlook - The company expects Q1 2026 to see a revenue decline of 11% to 13% year-over-year, with an adjusted EBITDA margin of approximately 1.5% [15]. - For the second half of 2026, Kelly anticipates a return to organic revenue growth and adjusted EBITDA margin expansion, assuming no new material impacts [9][15].

Core Insights - Kelly Services has appointed Patrick McCall as chief growth officer, effective February 16, 2026, to enhance organic growth and client capabilities [1][2] Company Overview - Kelly Services, Inc. is a global provider of specialty talent solutions, helping companies recruit and manage skilled workers while assisting job seekers in finding employment [6] - The company has a revenue of $4.3 billion in 2024 and connects over 400,000 people with work annually [6] Leadership Appointment - Patrick McCall brings 30 years of sales and operations experience, having previously served as chief growth officer at AMN Healthcare, where he stabilized the business post-pandemic [2][3] - McCall has a strong background in workforce solutions, having held senior roles at Randstad, where he managed a portfolio exceeding 3 billion euros [3] Strategic Focus - McCall's responsibilities will include developing and executing Kelly's growth strategy, managing large strategic accounts, acquiring new clients, and creating a client-centric go-to-market model [4]

Core Viewpoint - Kelly Services, a leading global specialty talent solutions provider, is set to release its fourth-quarter and full-year earnings on February 12, 2026, along with a financial presentation and a live webcast for financial analysts to discuss the results [1]. Company Overview - Kelly Services, Inc. (Nasdaq: KELYA, KELYB) specializes in recruiting and managing skilled workers, connecting over 400,000 people with work annually [3]. - The company has been a pioneer in the staffing industry since 1946 and operates in various sectors including science, engineering, technology, education, manufacturing, retail, finance, and energy [3]. - In 2024, Kelly Services reported a revenue of $4.3 billion [3]. Earnings Release Details - The earnings release will occur before the market opens on February 12, 2026, and will be followed by a conference call at 9 a.m. ET [1]. - The financial presentation and the live webcast will be available on the company's public website under the Investor Relations section [2]. - A replay of the webcast will be accessible within one hour after the event concludes [2].

Core Insights - Emily L. Nielson, Chief Human Capital Officer for Baltimore City Public Schools, received the 2026 Distinguished Service Award from the Council of the Great City Schools for her contributions to urban education [1][3] Group 1: Achievements and Impact - Since joining Baltimore City Public Schools in 2022, Nielson has led significant improvements in staffing and operational efficiency, serving approximately 75,000 students across 160 schools [2] - Under her leadership, teacher hiring increased by nearly 25% year over year in 2023, and teacher vacancies reached the lowest levels on record in 2025 [2] - Nielson improved hiring processes, reducing offer letter delivery time from three weeks to just three days [2] Group 2: Leadership and Collaboration - Nielson launched the Maryland-Virginia-DC CHRO network to foster regional collaboration among HR leaders of large districts [2] - She was selected for the inaugural cohort of Women Leading Ed Sustained Education Executive Network, highlighting her commitment to leadership in education [2] - Nielson actively participates in monthly Council job-alike meetings, sharing her expertise with HR leaders from urban school districts [3] Group 3: Recognition and Background - The award recognizes Nielson's dedicated service and successful modernization of the human resources department at Baltimore City Public Schools [3] - Nielson holds a Master of Public Policy from Harvard University, focusing on Human Resources, Labor, and Education Policy, and graduated magna cum laude from Harvard College [3]

Core Viewpoint - Kelly Services, Inc. has adopted a stockholder rights plan to protect the interests of all stockholders amid a significant sale of its Class B common stock by a major shareholder [1][2]. Group 1: Stockholder Rights Plan - The Board of Directors unanimously approved the Rights Plan to allow time for evaluation of a transaction involving the sale of 92.2% of Class B common stock [2][3]. - The Rights Plan will issue rights to purchase shares of Class A and Class B common stock to stockholders of record as of January 11, 2026 [4]. - The rights will expire on January 10, 2027, or upon certain conditions such as redemption or a merger [5]. Group 2: Rights Activation and Terms - Rights become exercisable if an acquiring person obtains 75% or more of the Class B common stock, allowing existing right holders to receive shares valued at twice the exercise price [6]. - If the company is acquired after an unapproved party obtains 75% of Class B shares, right holders can receive common stock of the acquiring company valued at twice the exercise price [6]. - The Board can redeem the rights at $0.001 per right, and existing ownership percentages of those who already own 75% or more of Class B shares will be grandfathered under certain conditions [6][7]. Group 3: Company Overview - Kelly Services, Inc. is a leading provider of specialty talent solutions, connecting over 400,000 people with work annually [9]. - The company reported revenue of $4.3 billion in 2024 and operates in various industries including science, engineering, technology, and finance [9].

Core Insights - Motion Recruitment's 2026 Tech Salary Guide reveals that while average tech salaries in the U.S. grew by only 0.8% year-over-year, specialized roles experienced significant salary increases, indicating a divergence in compensation trends within the tech industry [3][4][8] Salary Trends - Average salaries for specialized roles such as LLM developers reached $209,000, while senior data workers earned an average of $178,000 in 2025 [4] - Mid-level AI engineers saw the highest salary increase at 9.2% year-over-year, followed by senior platform engineers at 8.9% and mid-level Salesforce developers at 8.5% [8] - The overall average IT salary remained flat, highlighting the disparity between generalist and specialized roles [3][7] Hiring Dynamics - AI adoption has slowed hiring for entry-level and generalist IT roles, with organizations facing skills shortages and needing to recruit or train specialized talent [5][9] - The demand for specialized skills in data engineering, cybersecurity, and applied AI is driving the strongest compensation growth [5][9] Market Insights - The tech job market is increasingly specialized, with AI-focused roles increasing by 49% and data security roles by 30% [9] - Employers are prioritizing candidates with hands-on experience in AI, data, and cloud infrastructure, as well as those who demonstrate continuous growth through upskilling [5][10] Location Impact - Salary growth varies significantly by location, with remote tech workers experiencing a pay increase of 2.8% compared to a 10% increase in New York City [11] - The tech salary can differ by over 24% between cities, emphasizing the importance of location in compensation [11] Challenges in Hiring - The prevalence of candidate fraud and bots is complicating the hiring process, leading employers to rely more on referral-driven pipelines [12][13] - Companies that do not balance workplace policies with compensation and flexibility risk losing experienced IT talent [12]