UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-1088 KELLY SERVICES, INC. --------------------------------------------------------------------- (Exact name of registrant as specified in its charter) (State or other jurisdict ...

Exhibit 99.1 Kelly Reports Second-Quarter 2025 Earnings TROY, Mich. (August 7, 2025) – Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the second quarter of 2025. "In the second quarter, Kelly continued to drive growth in more resilient markets, including K-12 staffing in our Education business, telecom and engineering solutions in SET, and payroll process outsourcing in ETM. Across the business, particularly in areas where customers are taking a more ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-1088 KELLY SERVICES, INC. --------------------------------------------------------------------- (Exact name of registrant as specified in its charter) (State or other jurisdic ...

Exhibit 99.1 Kelly Reports First-Quarter 2025 Earnings TROY, Mich. (May 8, 2025) – Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the first quarter of 2025. "In the first quarter, Kelly delivered organic revenue growth that was in-line with our expectations, and once again outperformed the market. Our performance was driven primarily by continued strength in Education, as well as growing demand for our higher-margin outcome-based solutions within the ...

Core Insights - Illinois schools are experiencing a significant teacher shortage, with 90% of districts struggling to fill vacancies [2][3] - Kelly Education has filled 5.2 million substitute educator positions during the 2023–24 school year, demonstrating its commitment to supporting educational institutions [2] - The company is launching the Kelly Education Learning Pathways™, a tiered professional learning platform aimed at enhancing the skills of substitute teachers [1][3] Company Initiatives - The Learning Pathways platform offers three levels of training: Essential, Enhanced, and Exemplary, designed to prepare substitute educators effectively [1][3] - The curriculum focuses on key areas such as classroom management, instructional strategies, and student engagement practices to ensure a positive learning environment [7][8] - Additional courses and modules will be available for purchase, allowing educators to further develop their skills [4] Benefits for Schools - The platform provides a customizable, outcome-led curriculum that aids in improving recruitment and retention of substitute teachers [8] - School and district leaders can access a dashboard for performance monitoring and training completion, which helps track return on investment [8] - By implementing effective substitute teacher training, districts can achieve significant time and cost savings while enhancing educational quality [4]

TROY, Mich., April 03, 2025 (GLOBE NEWSWIRE) -- Kelly Education, the nation’s most trusted provider of education talent and workforce solutions, is expanding its commitment to Virginia substitute teacher development with the rollout of Kelly Education Learning Pathways™. This enhanced professional learning platform is designed to equip substitute educators with the skills and confidence they need to succeed in the classroom. The inaugural offering for substitute teachers is available in three levels: Essent ...

TROY, Mich., April 03, 2025 (GLOBE NEWSWIRE) -- Kelly Education, the nation's most trusted provider of education talent and workforce solutions, is expanding its commitment to Kentucky substitute teacher development with the rollout of Kelly Education Learning Pathways™. This enhanced professional learning platform is designed to equip substitute educators with the skills and confidence they need to succeed in the classroom. The inaugural offering for substitute teachers is available in three levels: Essent ...

Core Viewpoint - Kelly Services, Inc. will participate in the Sidoti Virtual Investor Conference on March 19, 2025, highlighting its role as a leading global specialty talent solutions provider [1][2]. Company Overview - Kelly Services, Inc. has been a pioneer in the staffing industry since 1946, connecting over 400,000 people with work annually through a global network of suppliers and partners [3]. - The company reported a revenue of $4.3 billion in 2024, indicating its significant presence in various industries including science, engineering, technology, education, manufacturing, retail, finance, and energy [3]. Leadership Participation - Key executives including Peter Quigley (CEO), Troy Anderson (CFO), and Scott Thomas (Head of Investor Relations) will engage in one-on-one meetings during the conference [2].

Revenue and Profitability - Revenue from services decreased by 10.4% to $4,331.8 million in 2024, compared to $4,835.7 million in 2023, primarily due to the sale of EMEA staffing operations[141][144] - Gross profit declined by 8.2% to $882.6 million, with a gross profit rate of 20.4%, an increase of 0.5 percentage points from the previous year[141][145] - Revenue from the Education segment increased by 15.5% to $972.3 million, driven by new customer wins and increased fill rates[156][159] - The Science, Engineering & Technology segment saw a revenue increase of 19.5% to $1,422.8 million, largely attributed to the acquisition of MRP[156][158] - Permanent placement revenue decreased by 24.2%, reflecting a decline in higher-margin services[144] - Consolidated total gross profit decreased by 8.2% to $882.6 million in 2024 compared to $961.4 million in 2023[166] - The Professional & Industrial segment gross profit decreased by 5.7% to $261.3 million in 2024, with a gross profit rate decline of 20 basis points[167] - Science, Engineering & Technology segment gross profit increased by 23.4% to $335.6 million in 2024, driven by the acquisition of MRP, resulting in a gross profit rate increase of 120 basis points[168] - Education segment gross profit increased by 8.6% to $139.8 million in 2024, although the gross profit rate decreased by 90 basis points[169] - Outsourcing & Consulting segment gross profit decreased by 10.8% to $145.9 million in 2024, with a significant gross profit rate decline of 480 basis points[170] Expenses and Losses - Total SG&A expenses decreased by 12.4% to $818.4 million, with restructuring charges significantly reduced from $38.6 million in 2023 to $6.1 million in 2024[141][146] - The company reported a net loss of $0.6 million in 2024, a significant decline from net earnings of $36.4 million in 2023[141][153] - Total SG&A expenses decreased by 14.3% to $766.9 million in 2024, primarily due to lower direct salaries and cost management[178] - Corporate expenses decreased by 7.5% to $58.4 million in 2024, primarily due to lower transformation-related charges[196] - The International segment reported a loss in 2024 due to the sale of EMEA staffing operations and restructuring impacts[195] Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash totaled $45.6 million at year-end 2024, down from $167.6 million at year-end 2023[205] - Net cash generated from operating activities was $26.9 million in 2024, a decrease from $76.7 million in 2023, primarily due to increased working capital requirements[206] - Trade accounts receivable increased to $1.3 billion at year-end 2024 from $1.2 billion at year-end 2023, with global Days Sales Outstanding (DSO) remaining at 59 days[207] - The working capital position was $539.0 million at year-end 2024, including the impact of the MRP acquisition, compared to $606.7 million at year-end 2023[208] - The company used $361.6 million for investing activities in 2024, significantly higher than $14.1 million in 2023, primarily due to the acquisition of MRP and CTC[209] - Cash generated from financing activities was $214.8 million in 2024, compared to cash used of $59.6 million in 2023, driven by net borrowings of $239.4 million[213] Acquisitions and Sales - The acquisition of Motion Recruitment Partners, LLC in May 2024 is expected to enhance staffing and consulting capabilities across technology and telecommunications sectors[135] - The company completed the sale of its European staffing operations on January 2, 2024, and the Ayers Group on June 12, 2024, focusing on North American staffing and global MSP and RPO solutions[134][135] - The company completed the sale of its EMEA staffing operations for cash proceeds of $110.6 million, netting $77.1 million after cash disposed[220] - The acquisition of MRP was completed for a purchase price of $425.0 million, with the company paying $440.0 million in cash after adjustments[221] Debt and Financial Ratios - The debt-to-total capital ratio was 16.2% at year-end 2024, with no debt outstanding at year-end 2023[215] - The company repurchased $10.0 million of Class A common stock in fiscal 2024, with $40.0 million remaining under the share repurchase program[226] Goodwill and Impairment - 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[246] - Total goodwill amounted to $304.2 million and $151.1 million at year-end 2024 and 2023, respectively[252] - The estimated fair value of the MRP reporting unit exceeds its carrying value by less than 10%, indicating potential future impairment risks[247] - The company performed annual impairment tests for all reporting units with goodwill in the fourth quarter for the fiscal years ended 2024 and 2023, concluding no impairment for PTS and Education reporting units in 2023[249] Risk Management - The Company reported that actual results may differ materially from forward-looking statements due to various risk factors, including changing market conditions and legal liabilities[259] - The Company is exposed to foreign currency risk primarily related to its foreign subsidiaries, which provide a natural hedge against currency risks[261] - The Company entered into a foreign currency forward contract with a notional amount of €90.0 million to manage foreign currency risk, resulting in an unrealized loss of $3.6 million as of year-end 2023[262] - A total loss of $2.4 million was realized upon settlement of the foreign currency forward contract on January 5, 2024, leading to a gain of $1.2 million recorded in Q1 2024[262] - The Company entered into another foreign currency forward contract with a notional amount of €17.0 million related to expected additional proceeds from the sale of EMEA staffing operations[263] - The interest rate swap agreements locked in variable SOFR components at fixed rates of 4.772% and 4.468% for portions of long-term borrowings, effective through July 17, 2025, and January 17, 2026, respectively[265] - A hypothetical fluctuation of 10% in market interest rates would not have had a material impact on 2024 earnings[265] - The obligation under the nonqualified deferred compensation plan is influenced by movements in equity and debt markets, with investments designed to mitigate this risk[266]

Revenue Performance - Q4 revenue was $1.2 billion, a decrease of 3.3% year-over-year, but an increase of 4.4% on an organic basis[5] - Full-year revenue totaled $4.3 billion, down 10.4% as reported, but up 0.5% on an organic basis[12] - Revenue from services decreased to $4,331.8 million in 2024 from $4,835.7 million in 2023, a decline of 10.4%[20] - Revenue from services decreased by 3.3% year-over-year, totaling $1,191.1 million in Q4 2024 compared to $1,232.2 million in Q4 2023[33] - The Americas region saw a revenue increase of 16.2%, with the United States contributing $1,075.5 million, up from $908.7 million in the previous year[33] - The acquisition of Motion Recruitment Partners contributed 9.8% to reported Q4 year-over-year revenue growth[6] - The Science, Engineering & Technology segment saw a revenue increase of 37.9%, reaching $396.1 million in 2024 from $287.3 million in 2023[23] - The Professional & Industrial segment reported a revenue increase of 4.4%, totaling $384.2 million in 2024 compared to $368.1 million in 2023[23] - The Education segment's revenue grew by 12.1%, reaching $289.2 million in 2024 from $258.0 million in 2023[23] - The Outsourcing & Consulting segment's revenue increased by 8.8%, totaling $122.3 million in 2024 compared to $112.3 million in 2023[23] Profitability and Earnings - Q4 adjusted EBITDA was $43.5 million, up 34% year-over-year, with an adjusted EBITDA margin of 3.7%, an increase of 110 basis points[5] - Adjusted operating income for the full year was $92.1 million, with adjusted EBITDA of $143.5 million, reflecting a 31% increase compared to the prior year[12] - Adjusted EBITDA increased to $143.5 million, representing a growth of 34.1% compared to $109.4 million in 2023[20] - In Q4 2024, net earnings were $(31.8) million compared to $11.4 million in Q4 2023, reflecting a significant decline[39] - Adjusted net earnings for Q4 2024 were $29.1 million, down from $34.1 million in Q4 2023, indicating a decrease of approximately 14.7%[39] - Adjusted EBITDA for Q4 2024 was $43.5 million, an increase of 33.1% from $32.5 million in Q4 2023, with an adjusted EBITDA margin of 3.7% compared to 2.6%[41] - The company reported a net loss of $0.6 million in 2024, a significant decline from net earnings of $36.4 million in 2023[20] - Basic earnings per share decreased to $(0.02) in 2024 from $0.99 in 2023, reflecting a drop of 102.0%[20] Costs and Charges - The company reported an operating loss of $56.7 million in Q4, primarily due to $80.8 million in non-cash impairment charges[6] - The company reported a goodwill impairment charge of $72.8 million in Q4 2024, impacting overall earnings from operations[36] - Goodwill impairment charge for Q4 2024 was $54.4 million, which significantly impacted net earnings[39] - The 2024 goodwill impairment charge is influenced by market conditions and results from the annual impairment test related to Softworld[48] - The asset impairment charge in 2024 for certain right-of-use assets is due to adjustments in the utilization of the leased headquarters facility[48] - Integration costs in 2024 are associated with the MRP acquisition and aligning processes and technology across the company[49] - Transaction costs in 2024 related to the sale of EMEA staffing operations amounted to $12.0 million for the year, with $3.1 million in Q4 2024[51] - Restructuring charges for 2024 include $3.0 million of severance and $3.1 million for transformation execution, while 2023 restructuring charges totaled $17.7 million[53] Financial Position - Total assets increased to $2,632.3 million in 2024 from $2,581.6 million in 2023, representing a growth of 2.0%[29] - Total current liabilities decreased to $826.5 million in 2024 from $1,019.9 million in 2023, a reduction of 18.9%[29] - The current ratio improved to 1.7 in 2024, compared to 1.6 in 2023, indicating better short-term financial health[29] - Total stockholders' equity decreased to $1,234.6 million in 2024 from $1,253.7 million in 2023, a decline of 1.5%[29] Future Outlook - The company expects incremental organic revenue growth and adjusted EBITDA margin expansion during fiscal 2025[5] - The company plans to focus on market expansion and new product development to drive future growth despite recent challenges[30] - The planned retirement of CEO Peter Quigley by the end of 2025 has been announced, with a search for his successor underway[9]