Core Insights - Kelly Services reported a revenue of $935.0 million for Q3 2025, reflecting a 9.9% decrease compared to Q3 2024, primarily due to lower demand in the ETM and SET segments, partially offset by a 0.9% growth in the Education segment [3][8][9] - The company experienced an operating loss of $102.1 million in Q3 2025, a significant decline from earnings of $2.6 million in Q3 2024, largely attributed to non-cash goodwill impairment charges [4][6] - Adjusted EBITDA for Q3 2025 was $16.5 million, down 36.7% year-over-year, with an adjusted EBITDA margin of 1.8%, a decrease of 70 basis points [4][8] Financial Performance - Revenue for the 39-week period ended September 28, 2025, was $3.2 billion, a 1.9% increase compared to the same period in 2024, primarily due to the acquisition of MRP [9][10] - The operating loss for the first nine months of 2025 was $69.1 million, compared to earnings of $41.6 million in the same period of 2024 [10][12] - The company reported a net loss of $150.1 million for Q3 2025, compared to a net income of $0.8 million in Q3 2024 [20][22] Segment Analysis - In Q3 2025, the Enterprise Talent Management segment generated $487.9 million in revenue, down 13.1% from Q3 2024, while the Science, Engineering & Technology segment saw a 9.0% decline to $304.9 million [27][28] - The Education segment reported a slight revenue increase of 0.9% to $143.3 million, indicating resilience amidst overall declines in other segments [27][28] - Adjusted SG&A expenses decreased by 9.7% in Q3 2025, reflecting ongoing expense optimization initiatives [8] Tax and Earnings Per Share - Income tax expense for Q3 2025 was $46.4 million, compared to a tax benefit of $2.6 million in Q3 2024, influenced by non-cash goodwill impairment charges [5][11] - Loss per share for Q3 2025 was $4.26, including non-cash goodwill impairment charges of $2.37 per share, compared to earnings per share of $0.02 in Q3 2024 [6][12] Future Outlook - The company anticipates no significant changes in macroeconomic conditions for Q4 2025 and expects a positive resolution to the federal government shutdown [14] - Kelly Services declared a quarterly cash dividend of $0.075 per share, payable on December 3, 2025, reflecting confidence in its strategy [14]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Industry Overview - The Staffing Firms industry is expected to gradually return to pre-pandemic levels, enabling companies to distribute regular dividends [1] - The industry encompasses a wide range of human resources and workforce solutions, including recruitment, payroll administration, and organizational planning [2] Market Trends - The industry is characterized by stable demand, with revenues and cash flows anticipated to recover to pre-pandemic levels [3] - The adoption of remote work and hybrid models has surged, prompting staffing agencies to focus on flexible staffing solutions [4] - Technological advancements are being integrated into staffing operations, enhancing efficiency and service quality [5] Performance Metrics - The Zacks Staffing Firms industry currently holds a Zacks Industry Rank of 219, placing it in the bottom 10% of 243 Zacks industries [6] - Over the past year, the industry has underperformed the S&P 500, declining by 35.6% compared to the S&P 500's growth of 19% [8] - The industry is trading at an EV-to-EBITDA ratio of 5.77X, significantly lower than the S&P 500's 18.87X and the sector's 10.93X [11] Company Highlights - **Kelly Services (KELYA)**: The company is experiencing growth driven by the acquisition of Motion Recruitment Partners, with a 5.3% year-over-year organic growth in its education business [15][16] - **Heidrick & Struggles International (HSII)**: The company has shown strong performance due to its focus on executive search and consulting, with a 50.9% increase in shares over the past six months [20][22] - **DLH Holdings (DLHC)**: The company is investing in tech integration and advanced solutions in cybersecurity, with shares increasing by 56.4% in the past six months [25][27]

Core Insights - KellyOCG has been recognized as a Leader in Everest Group's 2025 PEAK Matrix for both Contingent Workforce Management (CWM) / Managed Service Provider (MSP) and Services Procurement / Statement of Work (SOW), and has also been named a Star Performer in the SOW category [1][3] Company Developments - KellyOCG has made significant investments in contingent workforce management and services procurement solutions following its acquisition of Motion Recruitment Partners, integrating resources from KellyOCG and Kelly Professional & Industrial with capabilities from Sevenstep into a new Enterprise Talent Management function [2][3] - The company has strengthened its presence in the CWM market through its Enterprise Talent Management model and the acquisition of Motion Recruitment Partners, including Sevenstep [3] Technology and Innovation - KellyOCG's technology stack provides detailed analytics, actionable insights, and streamlined access to talent, suppliers, and services, which gives clients a competitive advantage in the talent market [2] - The company is enhancing its SOW capabilities with a modular framework that integrates Helix UX, Helix Analytics, Globality, and TDX to deliver end-to-end sourcing, compliance, and supplier visibility [3] Market Assessment - Everest Group's PEAK Matrix provides an objective, data-driven assessment of global CWM/MSP and SOW providers based on their market impact, vision, and capability, with providers ranked as Leaders, Major Contenders, or Aspirants [3]

Core Viewpoint - Kelly Services, a global leader in specialty talent solutions, is set to release its third-quarter earnings on November 6, 2025, and will host a live webcast to discuss the results and answer questions [1][2]. Company Overview - Kelly Services, Inc. (Nasdaq: KELYA, KELYB) specializes in recruiting and managing skilled workers, connecting over 400,000 individuals with job opportunities annually [3]. - The company has a rich history, having pioneered the staffing industry in 1946, and operates across 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 third-quarter earnings will be published before market opening on November 6, 2025, accompanied by a financial presentation [1]. - A live webcast of the conference call with financial analysts will take place at 9 a.m. ET on the same day, with a replay available shortly after the event [2].

Core Insights - Staffing and recruiting firm Kelly Services is reducing its corporate workforce by approximately 2%, affecting around 100 employees [1][2] - The layoffs are part of a "targeted reduction" aimed at streamlining the organizational structure to better meet client needs [1][2] - The reductions occur under the new CEO Chris Layden, who started in September, amidst a slowing US labor market [2][3] Company Performance - Kelly Services reported a revenue of $4.3 billion in 2024 and places over 400,000 workers annually across various sectors including science, tech, education, manufacturing, retail, and finance [3] - The company's shares experienced a decline of less than 1% during afternoon trading on the day of the announcement [3] Industry Context - As of September, US employers' hiring plans were at their lowest year-to-date level since 2009, indicating a potential slowdown in the labor market [3] - Despite overall layoffs remaining low, many job seekers are facing challenges in securing corporate roles [2]

Core Insights - KellyOCG + Sevenstep has been recognized as a top provider in HRO Today's 2025 Baker's Dozen Customer Satisfaction Ratings for Recruitment Process Outsourcing (RPO), ranking No. 1 in deal size, No. 2 in healthcare and breadth of service, No. 4 in quality of service, and No. 3 overall out of 58 evaluated providers [1][2] Company Performance - The Baker's Dozen list is based on customer feedback from 335 client companies, providing an objective assessment of RPO providers based on service breadth, deal size, service quality, and overall customer satisfaction [2] - The integrated KellyOCG + Sevenstep brand received its first recognition this year, although its individual RPO solutions have been acknowledged for over a decade [3] Technology and Services - KellyOCG + Sevenstep utilizes agile and AI-enabled solutions for talent acquisition, integrating data and predictive analytics to enhance decision-making and strategy effectiveness [3] - The company offers modular and enterprise RPO services, total talent solutions, and industry-leading consulting services, supported by proprietary technology like SevayoInsights [3][4] Industry Position - The company has expanded its global footprint and resources, making it a compelling choice for global enterprise RPO programs and tailored solutions [4] - KellyOCG + Sevenstep combines extensive industry experience with ongoing technology investments to deliver world-class programs tailored to unique workforce needs [5]

Core Insights - Kelly has been recognized as a Leader and Star Performer in Everest Group's 2025 US Contingent Staffing PEAK Matrix Assessment, highlighting its significant growth in market impact driven by outcome-based managed services and technology investments [1][2][8] Group 1: Recognition and Achievements - This is the first year Kelly has been named a Star Performer and the third consecutive year as a Leader in business professional and industrial contingent talent [2] - Kelly is the first company to achieve both Leader and Star Performer status across all four US Contingent Staffing PEAK Matrix Assessments, including IT and engineering [2] - KellyOCG + Sevenstep was also recognized as a Leader and Star Performer in the Global Recruitment Process Outsourcing PEAK Matrix, showcasing Kelly's strength as a strategic workforce partner [2] Group 2: Strategic Focus and Investments - Kelly is diversifying its growth in resilient industries such as semiconductors, renewable energy, and advanced manufacturing, focusing on upskilling and retention [3][8] - Significant investments have been made to enhance Kelly's technology stack and digital staffing capabilities, including end-to-end automation and real-time dashboards [4] - The company is operationalizing an omnichannel strategy that integrates branch presence, centralized support, and digital access through its proprietary platform, Kelly Now [5] Group 3: Service Offerings and Solutions - Under the leadership of Tammy Browning, Kelly provides agile, outcome-based solutions through managed services like Business Process Outsourcing and contact center solutions [6] - Kelly's Skilled Professional Solutions (SPS) allow clients to engage subject matter experts for specific projects, enhancing talent retention and redeployment opportunities [6] - The focus on resilient segments such as advanced manufacturing and semiconductors is emphasized through the Skilled Professional Solutions offering [8]

Core Viewpoint - The analysis compares Kelly Services (KELYA) and Cross Country Healthcare (CCRN) to determine which stock represents a better value opportunity for investors [1]. Valuation Metrics - KELYA has a forward P/E ratio of 5.78, significantly lower than CCRN's forward P/E of 69.19, indicating KELYA may be undervalued [5]. - KELYA's PEG ratio is 0.44, while CCRN's PEG ratio is 6.92, suggesting KELYA has a more favorable earnings growth outlook relative to its price [5]. - KELYA's P/B ratio is 0.35, compared to CCRN's P/B of 0.92, further supporting KELYA's valuation as more attractive [6]. Zacks Rank and Estimate Revisions - KELYA holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CCRN has a Zacks Rank of 5 (Strong Sell), suggesting a weaker earnings outlook [3]. - KELYA has experienced stronger estimate revision activity compared to CCRN, reinforcing its position as the superior investment choice for value investors [7]. Value Grades - KELYA has a Value grade of A, while CCRN has a Value grade of C, reflecting KELYA's more favorable valuation metrics [6].

Company Participation in Investor Conferences - Kelly will participate in the Midwest IDEAS Conference in Chicago on August 26, 2025, with management scheduled to present at 8:35 a.m. CT and engage in one-on-one meetings with investors throughout the day [1] - The company will also attend the Gateway Conference in San Francisco on September 3, 2025, with a presentation scheduled for 1:00 p.m. PT and one-on-one meetings with investors [2] - Management will participate in the Barrington Research Fall Virtual Investment Conference on September 16, 2025, focusing on one-on-one meetings with investors [3] - Kelly will take part in the Sidoti Small-Cap Virtual Conference on September 17, 2025, also engaging in one-on-one meetings with investors [4] - The company is scheduled to present at the William Blair Human Capital Services Virtual Conference on September 24, 2025, at 9:30 a.m. CT, followed by one-on-one meetings with investors throughout the afternoon [5] Company Overview - Kelly Services, Inc. is a leading global specialty talent solutions provider, helping companies recruit and manage skilled workers while assisting job seekers in finding employment [6] - The company has a rich history, having invented the staffing industry in 1946, and has become an expert in various industries and markets [6] - Kelly connects over 400,000 people with work annually through its extensive network of suppliers and partners worldwide [6] - The company reported revenue of $4.3 billion in 2024, indicating its significant presence in the talent solutions market [6]