Revenue and Profitability - Revenue from services in Q1 2025 increased by 11.5% to $1,164.9 million compared to $1,045.1 million in Q1 2024, primarily driven by the acquisition of MRP[131] - Gross profit rose by 15.0% to $236.5 million, with a gross profit rate of 20.3%, an increase of 60 basis points from the previous year[131][133] - Net earnings for Q1 2025 were $5.8 million, a decrease of 77.7% from $25.8 million in Q1 2024[131] - The Science, Engineering & Technology segment saw a revenue increase of 39.2% to $322.4 million, driven by the MRP acquisition[138] - The Education segment's revenue increased by 6.6% to $309.0 million, reflecting improved demand despite weather-related school closures[138][141] Expenses and Costs - Total SG&A expenses increased by 18.5% to $225.7 million, largely due to the MRP acquisition, with integration and realignment costs of $10.7 million included[134] - Cash used for financing activities increased to $39.5 million in Q1 2025 from $4.7 million in Q1 2024, driven by net repayments of $34.8 million on credit facilities[165] Cash Flow and Working Capital - Cash, cash equivalents, and restricted cash totaled $34.5 million at the end of Q1 2025, down from $45.6 million at year-end 2024[161] - Net cash generated from operating activities was $23.9 million in Q1 2025, a significant improvement compared to a cash usage of $25.5 million in Q1 2024[162] - Trade accounts receivable reached $1.3 billion at the end of Q1 2025, with global Days Sales Outstanding (DSO) at 61 days, up from 59 days at year-end 2024[162] - The working capital position was $528.1 million at the end of Q1 2025, reflecting a decrease of $10.9 million from year-end 2024[163] - Cash generated from investing activities was $3.2 million in Q1 2025, a decline from $72.1 million in Q1 2024, primarily due to the sale of EMEA staffing operations in the previous year[164] Strategic Initiatives - The company is focused on integrating MRP's technology stack to modernize operations and enhance efficiency across its segments[123] - Strategic actions taken in Q1 2025 reflect the company's commitment to long-term profitability and resource alignment with customer demand[124] - The company completed the acquisition of MRP for $425.0 million, with an adjusted cash payment of $440.0 million[174] Financial Position and Ratios - The debt-to-total capital ratio improved to 14.2% at the end of Q1 2025, down from 16.2% at year-end 2024[166] - The company expects to meet cash requirements through operations, available cash, and credit facilities, including a $250.0 million accordion feature[170] - As of Q1 2025, the company had $120.0 million available on its $150.0 million revolving credit facility[175] Performance Metrics - EBITDA margin and other non-GAAP measures are used to assess cash flow generation and overall operating performance, with EBITDA being a key focus for the company[127] - Days sales outstanding (DSO) is calculated to reflect the average number of days sales remain unpaid, impacting cash flow management[128]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited).) Unaudited Q1 2025 financials show decreased net earnings to **$5.8 million**, positive operating cash flow, and segment reorganization Consolidated Statements of Earnings Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Revenue from services | $1,164.9 | $1,045.1 | +11.5% | | Gross profit | $236.5 | $205.7 | +15.0% | | Earnings from operations | $10.8 | $26.8 | -59.7% | | Net earnings | $5.8 | $25.8 | -77.5% | | Diluted earnings per share | $0.16 | $0.70 | -77.1% | Consolidated Balance Sheet Highlights (As of March 30, 2025) | Metric | March 30, 2025 (in millions) | December 29, 2024 (in millions) | | :--- | :--- | :--- | | Total current assets | $1,351.0 | $1,365.5 | | Total Assets | $2,594.9 | $2,632.3 | | Total current liabilities | $822.9 | $826.5 | | Total Liabilities | $1,354.4 | $1,397.7 | | Total stockholders' equity | $1,240.5 | $1,234.6 | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | Net cash from (used in) operating activities | $23.9 | $(25.5) | | Net cash from investing activities | $3.2 | $72.1 | | Net cash used in financing activities | $(39.5) | $(4.7) | | Net change in cash | $(11.1) | $41.3 | - In Q1 2025, the company changed its reportable segments to **Enterprise Talent Management (ETM)**, **Science, Engineering & Technology (SET)**, and **Education**[31](index=31&type=chunk)[33](index=33&type=chunk)[107](index=107&type=chunk) - The ETM segment combines the former Professional & Industrial (P&I) and Outsourcing & Consulting Group (OCG) segments, along with certain customers from SET and the newly integrated Sevenstep business[31](index=31&type=chunk)[33](index=33&type=chunk)[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 2025 results, noting acquisition-driven revenue growth, lower earnings, and stable financial condition [Executive Overview](index=28&type=section&id=Executive%20Overview) Q1 2025 strategic focus includes organic growth, operational streamlining, margin expansion, and MRP integration - Strategic priorities for 2025 include delivering organic growth, realizing efficiencies through a streamlined operating model, and driving incremental margin expansion[121](index=121&type=chunk) - In Q1 2025, the company combined its P&I and OCG segments into the new **Enterprise Talent Management (ETM)** segment and moved MRP's Sevenstep business into ETM to create a more streamlined go-to-market approach[122](index=122&type=chunk) - The company initiated plans to modernize the SET segment's systems by leveraging MRP's technology stack to create a scalable and efficient platform[123](index=123&type=chunk) - Targeted cost-reduction actions were implemented to deliver structural improvements and align resources with demand, underscoring a commitment to long-term profitability[124](index=124&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 revenue grew **11.5%** to **$1.16 billion** from MRP acquisition, with earnings from operations declining **59.8%** Total Company Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Revenue from services | $1,164.9 | $1,045.1 | 11.5% | | Gross profit | $236.5 | $205.7 | 15.0% | | Earnings from operations | $10.8 | $26.8 | (59.8)% | | Net earnings | $5.8 | $25.8 | (77.7)% | - The **11.5%** revenue increase was primarily driven by the May 2024 acquisition of MRP; excluding this impact, revenue was flat year-over-year[132](index=132&type=chunk) - SG&A expenses in Q1 2025 included **$10.7 million** of integration and realignment costs related to integrating MRP and other acquisitions, and consolidating operating segments[134](index=134&type=chunk) Segment Revenue Performance (Q1 2025 vs Q1 2024) | Segment | Q1 2025 Revenue (in millions) | Q1 2024 Revenue (in millions) | % Change | | :--- | :--- | :--- | :--- | | Enterprise Talent Management | $534.0 | $524.1 | 1.9% | | Science, Engineering & Technology | $322.4 | $231.6 | 39.2% | | Education | $309.0 | $289.9 | 6.6% | [Financial Condition](index=35&type=section&id=Financial%20Condition) Financial condition remains solid with **$23.9 million** positive operating cash flow and improved debt-to-total capital ratio - Generated **$23.9 million** of net cash from operating activities in Q1 2025, compared to using **$25.5 million** in Q1 2024, due to decreased working capital requirements[162](index=162&type=chunk) - Global Days Sales Outstanding (DSO) was **61 days** at the end of Q1 2025, up from **59 days** at year-end 2024[162](index=162&type=chunk) - Financing activities used **$39.5 million** in cash, primarily due to net debt repayments of **$34.8 million** on credit facilities[165](index=165&type=chunk) - The debt-to-total capital ratio decreased from **16.2%** at year-end 2024 to **14.2%** at the end of Q1 2025[166](index=166&type=chunk) - As of Q1 2025, the company had **$120.0 million** available on its revolving credit facility and **$32.8 million** on its securitization facility[175](index=175&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) Market risk profile unchanged from year-end 2024, with foreign currency and interest rate risks partially mitigated - There have been no significant changes to market risk exposure management since year-end 2024[183](index=183&type=chunk) - The company is exposed to interest rate risk through its credit facilities, partially mitigated by two interest rate swaps entered into in July 2024, which lock in the SOFR rate for a portion of the debt on the Securitization Facility[185](index=185&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures.) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO have concluded that the company's disclosure controls and procedures are effective at a reasonable assurance level as of the end of Q1 2025[187](index=187&type=chunk) - No changes occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[188](index=188&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in ordinary course litigation, with no material adverse effects expected from current proceedings - The company is continuously engaged in litigation arising in the ordinary course of business and records accruals for probable losses[190](index=190&type=chunk) - A specific proceeding by the Hungarian Competition Authority involves a potential secondary liability of approximately **$300,000**, for which the company has indemnified the buyer of its former Hungarian operations, and does not believe the resolution will have a material adverse effect[192](index=192&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors.) No material changes in the company's risk factors were reported compared to the 2024 Annual Report - No material changes in risk factors were reported compared to the 2024 Form 10-K[193](index=193&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No unregistered equity sales in Q1 2025; **$40.0 million** remains available under the share repurchase program - In Q1 2025, the company reacquired **127,046 shares**, primarily to cover employee tax withholdings on vested restricted stock[194](index=194&type=chunk) - A **$50.0 million** Class A share repurchase program was approved in November 2024, with **$40.0 million** remaining available as of the end of Q1 2025[87](index=87&type=chunk)[194](index=194&type=chunk) [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) Not applicable [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) Not applicable [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information.) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans in Q1 2025 - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans during Q1 2025[197](index=197&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including certifications and XBRL data files

Group 1 - Kelly Services reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.53 per share, and down from $0.56 per share a year ago, representing an earnings surprise of -26.42% [1] - The company posted revenues of $1.16 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.64%, and up from $1.05 billion year-over-year [2] - Over the last four quarters, Kelly Services has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2 - The stock has lost about 18.3% since the beginning of the year, compared to the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.61 on revenues of $1.15 billion, and for the current fiscal year, it is $2.33 on revenues of $4.61 billion [7] - The Zacks Industry Rank indicates that the Staffing Firms industry is currently in the bottom 9% of over 250 Zacks industries, which may impact stock performance [8]

Revenue Performance - Q1 2025 revenue was $1.16 billion, an increase of 11.5% year-over-year, primarily due to the acquisition of Motion Recruitment Partners, LLC[5] - Organic revenue growth was 0.2%, with a 6.3% increase in the Education segment, while there was a 0.8% decline due to reduced demand for U.S. federal government contractors[6] - Total revenue from services for Q1 2025 was $1,164.9 million, representing an 11.5% increase from $1,045.1 million in Q1 2024[24] - Revenue from the Americas region increased to $1,139.9 million in Q1 2025, up 11.4% from $1,022.8 million in Q1 2024[25] - The Science, Engineering & Technology segment saw a revenue increase of 39.2% to $322.4 million, with a gross profit of $82.3 million[16] - The Education segment reported a revenue increase of 6.6% to $309.0 million, with a gross profit of $46.2 million[16] Earnings and Profitability - Q1 adjusted EBITDA was $34.9 million, up 4.8% year-over-year, with an adjusted EBITDA margin of 3.0%, a decrease of 20 basis points[5] - Q1 operating earnings were $10.8 million, down 59.8% from $26.8 million in Q1 2024; adjusted earnings were $22.1 million compared to $23.1 million in the prior year[6] - Earnings per share for Q1 2025 was $0.16, a decline from $0.70 in Q1 2024; adjusted earnings per share were $0.39 compared to $0.56 in the same quarter last year[6] - Adjusted earnings from operations for Q1 2025 were $22.1 million, slightly down from $23.1 million in Q1 2024[27] - Net earnings for Q1 2025 decreased to $5.8 million from $25.8 million in Q1 2024, a decline of 77.5%[20] - Adjusted net earnings for Q1 2025 were $14.3 million, down 29.6% from $20.3 million in Q1 2024[29] Cash Flow and Liquidity - Cash and equivalents at the end of Q1 2025 were $34.5 million, down from $208.9 million at the end of Q1 2024[20] - The company reported a net cash from operating activities of $23.9 million in Q1 2025, compared to a negative $25.5 million in Q1 2024[32] - The company experienced a net cash used in financing activities of $39.5 million in Q1 2025, compared to $4.7 million in Q1 2024[20] - Free cash flow for Q1 2025 was $21.4 million, a significant improvement from a negative $29.2 million in Q1 2024[32] - The current ratio for Q1 2025 was 1.6, compared to 1.8 in Q1 2024, indicating a decline in liquidity[18] Assets and Capital Structure - Total current assets decreased to $1,351.0 million in Q1 2025 from $1,436.8 million in Q1 2024, a decline of 6.0%[18] - The company reported a working capital of $528.1 million, down from $639.3 million in the previous year, a decrease of 17.4%[18] - Long-term debt increased to $204.6 million in Q1 2025 from $0 in Q1 2024, reflecting a significant change in capital structure[18] Future Outlook - The company expects year-over-year revenue growth of 6.0% to 7.0% in Q2 2025, with anticipated adjusted EBITDA margin decline of 20 to 30 basis points[5] - The company remains focused on efficiency and effectiveness to navigate the evolving macroeconomic environment and capitalize on future demand rebounds[3] Costs and Expenditures - Integration and realignment costs in Q1 2025 totaled $10.7 million, reflecting ongoing initiatives to integrate acquisitions[37] - The company incurred $0.4 million in transaction costs in Q1 2025, compared to $5.6 million in Q1 2024[31] - Capital expenditures in Q1 2025 were $2.5 million, a decrease from $3.7 million in Q1 2024[32]

[Q1 2025 Earnings Overview](index=1&type=section&id=First-Quarter%202025%20Earnings) Kelly reported first-quarter 2025 revenue of **$1.16 billion**, an 11.5% increase year-over-year, primarily driven by the acquisition of Motion Recruitment Partners (MRP) Q1 2025 Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.16B | $1.05B | +11.5% | | Organic Revenue Growth | +0.2% | N/A | N/A | | Operating Earnings | $10.8M | $26.8M | -59.8% | | Adjusted Operating Earnings | $22.1M | $23.1M | -4.3% | | Adjusted EBITDA | $34.9M | $33.3M | +4.8% | | Adjusted EBITDA Margin | 3.0% | 3.2% | -20 bps | | Diluted EPS | $0.16 | $0.70 | -77.1% | | Adjusted EPS | $0.39 | $0.56 | -30.4% | - Revenue growth was primarily driven by the May 2024 acquisition of Motion Recruitment Partners, LLC (MRP) while organic growth of **0.2%** was achieved despite a **0.8% decline** from reduced demand for U.S. federal government contractors, offset by **6.3% growth** in the Education segment[6](index=6&type=chunk) - The company expects Q2 2025 year-over-year revenue growth of **6.0% to 7.0%**, with an anticipated adjusted EBITDA margin decline of **20 to 30 bps**, though margin expansion is expected in Q3, Q4, and for the full year[5](index=5&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.075 per share**, payable on June 3, 2025, to stockholders of record as of May 19, 2025[7](index=7&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides a detailed overview of the company's financial position, performance, and cash flows for the reported period [Consolidated Statements of Earnings](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) In Q1 2025, revenue increased by **11.5%** to **$1.16 billion**, and gross profit grew by **15.0%** to **$236.5 million** compared to Q1 2024 Q1 2025 vs. Q1 2024 Statement of Earnings (in millions) | Account | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue from services | $1,164.9 | $1,045.1 | 11.5% | | Gross profit | $236.5 | $205.7 | 15.0% | | SG&A expenses | $225.7 | $190.5 | 18.5% | | Earnings from operations | $10.8 | $26.8 | -59.8% | | Net earnings | $5.8 | $25.8 | -77.7% | | Diluted earnings per share | $0.16 | $0.70 | -77.1% | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 30, 2025, total assets stood at **$2.59 billion**, reflecting the impact of the MRP acquisition, with Goodwill increasing to **$304.1 million** and long-term debt at **$204.6 million** Key Balance Sheet Items (in millions) | Account | Mar 30, 2025 | Dec 29, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Cash and equivalents | $28.2 | $39.0 | $200.7 | | Total current assets | $1,351.0 | $1,365.5 | $1,436.8 | | Goodwill | $304.1 | $304.2 | $151.1 | | Total Assets | $2,594.9 | $2,632.3 | $2,395.4 | | Long-term debt | $204.6 | $239.4 | $0.0 | | Total liabilities | $1,354.4 | $1,397.7 | $1,118.6 | | Total stockholders' equity | $1,240.5 | $1,234.6 | $1,276.8 | Financial Ratios | Ratio | Mar 30, 2025 | Mar 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.6 | 1.8 | | Debt-to-capital % | 14.2% | 0.0% | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the first quarter of 2025, Kelly generated **$23.9 million** in cash from operating activities, a significant turnaround from a **$25.5 million** use of cash in the same period last year Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from (used in) operating activities | $23.9 | $(25.5) | | Net cash from investing activities | $3.2 | $72.1 | | Net cash used in financing activities | $(39.5) | $(4.7) | | Net change in cash | $(11.1) | $41.3 | - Year-to-date free cash flow improved significantly to **$21.4 million** in Q1 2025 from an outflow of **$29.2 million** in Q1 2024[18](index=18&type=chunk)[32](index=32&type=chunk) [Segment and Revenue Analysis](index=4&type=section&id=SEGMENT%20AND%20REVENUE%20ANALYSIS) This section details the company's revenue performance across different business segments and geographical regions [Segment Information](index=4&type=section&id=SEGMENT%20INFORMATION) The Science, Engineering & Technology (SET) segment's revenue grew **39.2%** YoY to **$322.4 million**, largely due to acquisitions, while the Education segment continued its steady growth, with revenue up **6.6%** to **$309.0 million** Q1 2025 Segment Performance (in millions) | Segment | Revenue | Revenue % Change | Business Unit Profit | Profit % Change | | :--- | :--- | :--- | :--- | :--- | | Enterprise Talent Management | $534.0 | 1.9% | $6.8 | -15.4% | | Science, Engineering & Technology | $322.4 | 39.2% | $13.4 | -5.8% | | Education | $309.0 | 6.6% | $19.3 | 6.2% | [Revenue from Services by Service Type](index=8&type=section&id=REVENUE%20FROM%20SERVICES%20BY%20SERVICE%20TYPE) In Q1 2025, traditional Staffing Services constituted the largest portion of revenue at **$793.5 million**, with growth also seen in Outcome-based Services and Talent Solutions Q1 Revenue by Service Type (in millions) | Service Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Staffing Services | $793.5 | $714.7 | | Outcome-based Services | $242.6 | $218.2 | | Talent Solutions | $117.8 | $104.7 | | Permanent Placement | $11.5 | $8.0 | | **Total Segment Revenue** | **$1,165.4** | **$1,045.6** | [Revenue from Services by Geography](index=9&type=section&id=REVENUE%20FROM%20SERVICES%20BY%20GEOGRAPHY) The Americas region drove the company's growth, with revenue increasing **11.4%** to **$1.14 billion** in Q1 2025, primarily led by the United States market, which grew by **13.2%** Q1 Revenue by Geography (in millions) | Region | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | United States | $1,056.6 | $933.6 | 13.2% | | Total Americas Region | $1,139.9 | $1,022.8 | 11.4% | | Total Europe Region | $9.6 | $10.8 | -11.0% | | Total Asia-Pacific Region | $15.4 | $11.5 | 34.3% | | **Total Kelly Services, Inc.** | **$1,164.9** | **$1,045.1** | **11.5%** | [Reconciliation of Non-GAAP Measures](index=10&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES) The company provided detailed reconciliations of GAAP to non-GAAP financial measures to exclude items such as integration costs, transaction costs, and a prior-year gain on sale, aiming to improve comparability - Management believes non-GAAP measures are useful for understanding financial performance and comparability by removing the impact of items like integration costs (**$10.7 million**), transaction costs, and prior-period gains[34](index=34&type=chunk) Reconciliation of GAAP to Adjusted Net Earnings and EPS (Q1 2025) | Metric | As Reported (GAAP) | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Net Earnings | $5.8M | $8.5M | $14.3M | | Diluted EPS | $0.16 | $0.24 | $0.39 | Reconciliation of Net Earnings to Adjusted EBITDA (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net earnings (GAAP) | $5.8 | $25.8 | | EBITDA | $23.5 | $38.2 | | Adjustments | $11.4 | $(5.0) | | **Adjusted EBITDA** | **$34.9** | **$33.3** | | **Adjusted EBITDA Margin** | **3.0%** | **3.2%** | - Q1 2025 integration and realignment costs totaled **$10.7 million**, primarily consisting of **$5.3 million** in IT-related charges and **$4.4 million** in severance[37](index=37&type=chunk)

Core Insights - Kelly Services reported organic revenue growth in Q1 2025 that met expectations and outperformed the market, driven by strength in the Education sector and demand for higher-margin solutions in semiconductor and renewables [2][8] - The company is focused on efficiency and effectiveness to navigate the evolving macroeconomic environment and is positioned to capitalize on demand rebounds [2] Financial Performance - Q1 2025 revenue reached $1.16 billion, an increase of 11.5% year-over-year, primarily due to the acquisition of Motion Recruitment Partners, LLC, with organic growth at 0.2% [8][9] - Operating earnings for Q1 were $10.8 million, down from $26.8 million in the same period last year, while adjusted earnings were $22.1 million, a slight decrease from $23.1 million [9][12] - Adjusted EBITDA for Q1 was $34.9 million, up 4.8% year-over-year, with an adjusted EBITDA margin of 3.0%, down 20 basis points [8][9] Segment Performance - The Education segment saw a revenue increase of 6.3%, contributing to overall growth, while the Science, Engineering & Technology segment experienced a 39.2% revenue increase [9][19] - Enterprise Talent Management revenue was $534.0 million, with a gross profit of $108.0 million, while the Science, Engineering & Technology segment generated $322.4 million in revenue [19][27] Cash Dividend - The board of directors declared a quarterly cash dividend of $0.075 per share, payable on June 3, 2025, to stockholders of record as of May 19, 2025 [5] Future Outlook - The company anticipates year-over-year revenue growth of 6.0% to 7.0% in Q2 2025, with expected adjusted EBITDA margin decline of 20 to 30 basis points, but anticipates margin expansion in Q3 and Q4 [8][9]

Core Insights - Kelly Education honors substitute educators and support staff during Teacher Appreciation Week, recognizing their significant contributions to students and communities [2][16] - The annual Educator of the Year Award highlights individuals who demonstrate passion and commitment to education, with winners receiving a $5,000 bonus and $1,500 for a school of their choice [3][16] Award Recipients - Irvin Sutton, a K-12 substitute teacher from Baltimore, Maryland, has made a notable impact on students, even being invited to speak at a graduation ceremony [4] - Jordyn Solomon, a paraeducator from New Jersey, emphasizes the importance of personal connections and self-care in her teaching approach [8][10] - Gulzar Pabani, an early childhood substitute educator from Orlando, Florida, values collaboration with parents and colleagues, highlighting the lasting impact of small contributions [11][13] - ShiAnn Santiago, a tutor from New Jersey, focuses on creativity and resilience in her tutoring methods, encouraging new tutors to be proactive and understand their students' needs [14][16] Company Overview - Kelly Education provides customized workforce solutions across the education sector, including hiring, professional development, and academic support [17] - The company is part of Kelly, a global workforce solutions provider, connecting individuals and businesses with opportunities through meaningful work [18]

Core Insights - KellyOCG has been recognized as a Partner-level supplier for 2024 in the John Deere Achieving Excellence Program, which is the highest supplier rating from Deere & Company [1][3] - The recognition highlights KellyOCG's commitment to providing high-quality products and services, as well as its dedication to continuous improvement [2][4] Company Performance - KellyOCG is a supplier of Managed Service Provider (MSP) and Recruitment Process Outsourcing (RPO) solutions specifically for John Deere's operations in the U.S. and Canada [2] - The Achieving Excellence program evaluates suppliers annually based on key performance categories such as quality, delivery, process alignment, value creation, and relationship [3] Industry Context - The Achieving Excellence program was established by John Deere Supply Chain in 1991 to promote continuous improvement among suppliers [3] - KellyOCG has achieved Partner-level supplier recognition five times, indicating a consistent performance in meeting John Deere's standards [3]

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 [3] - The company has been a pioneer in the staffing industry since its inception in 1946 and has developed expertise across various industries and markets [3] - In 2024, Kelly Services reported a revenue of $4.3 billion, indicating its significant presence in the talent solutions market [3] Upcoming Earnings Release - Kelly Services will release its first-quarter earnings on May 8, 2025, before the market opens [1] - A financial presentation will accompany the earnings release, and a live webcast of a conference call with financial analysts will take place at 9 a.m. ET on the same day [1] - The webcast will be recorded, and a replay will be available within one hour after the event [2]

TROY, Mich., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Kelly (Nasdaq: KELYA, KELYB), a leading global specialty talent solutions provider, today announced the completion of its previously announced CFO transition. Troy Anderson, who joined Kelly in October 2024, will succeed Olivier Thirot as the Company’s chief financial officer, effective December 2, 2024. Thirot will retire as an officer of Kelly, while continuing to serve the Company as a strategic advisor. “I’m grateful to serve as Kelly’s chief financial offi ...