Core Viewpoint - EHS Investments expresses significant concern over TrueBlue's ongoing operational and financial deterioration, emphasizing the need for meaningful change at the Board level to enhance shareholder value [2][11]. Group 1: Operational and Financial Performance - TrueBlue's operational performance continues to decline, with the share price nearing all-time lows, necessitating a change in the Board [2][10]. - The Q3 earnings report indicates a return to organic revenue growth after twelve consecutive quarters of decline, but the growth is misleading due to cost pass-through accounting from renewable energy projects [6][7]. - TrueBlue's core PeopleReady branch performance is declining, and PeopleSolutions has experienced an -11% organic year-over-year revenue decline [7]. - The company has burned -$17 million in free cash flow for the quarter and -$40 million year-to-date, limiting its ability to repurchase shares [8]. Group 2: Board and Governance Issues - EHS Investments plans to nominate highly qualified director candidates to the Board at the 2026 Annual Meeting, aiming to improve governance and oversight [3][12]. - The Board has shown a lack of substantive engagement and has previously declined acquisition offers, resulting in a significant decline in stock price from approximately $12.30 per share to around $5 per share [10][11]. - Allegations in a recent lawsuit suggest a serious lapse in management and Board oversight, particularly regarding the misallocation of capital in the Jobstack initiative [9]. Group 3: Strategic Focus Areas - EHS nominees will focus on three core pillars: staffing excellence, digital transformation, and disciplined capital allocation, all aimed at maximizing shareholder value [3][14]. - A strategic reassessment of the business is planned, including evaluating potential strategic alternatives and opportunities for simplification [14].

Summary of Kelly Services FY Conference Call Company Overview - **Company**: Kelly Services (NasdaqGS: KELY.A) - **Industry**: Staffing Solutions - **Segments**: Enterprise Talent Management, Science, Engineering and Technology (SET), Education - **Market Position**: Second largest temporary staffing provider in the U.S. with a 2% market share [4][18] Key Financial Metrics - **Trailing 12-Month Revenue**: $4.4 billion [4] - **Adjusted EBITDA Margin**: 3% [4] - **Capital Deployment**: $500 million in non-core asset monetization; $900 million redeployed for scale in specialties [2] - **SG&A Cost Reduction**: Over $100 million [2] Strategic Initiatives - **Transformation**: Significant transformation ongoing, including a streamlined operating model and a focus on higher-value solutions [5][20] - **Leadership Changes**: New CEO Chris Laden, an industry veteran, joined in September; first outside CEO in company history [6][7] - **Acquisitions**: $900 million invested in acquisitions, including a $450 million IT services company [13] Segment Performance Enterprise Talent Management (ETM) - Accounts for nearly half of the business with a gross margin of around 20% and EBITDA margin over 2% [8] - Offers a range of solutions including temp staffing, perm staffing, and managed services [9] Science, Engineering, and Technology (SET) - Focused on higher-value positions and solutions, with a gross margin of 26% and EBITDA margin of nearly 6% [14] - Significant growth in project-based work, particularly in telecom and life sciences [12][13] Education - Largest provider of K-12 substitute teachers in the U.S., supporting 8,000 school districts [14] - Business has tripled over the last five years, with a significant growth opportunity as only 30% of school districts currently outsource [15] Market Dynamics - The staffing industry is fragmented, with Kelly Services maintaining a flat revenue despite a declining overall market [19][20] - Shift from staffing to outcome-based solutions, with revenue from staffing decreasing from 70% to 44% [21] Financial Outlook - Anticipated EBITDA margin to remain around 3% amid near-term headwinds [24] - Free cash flow generation of approximately $100 million [26] - Active M&A pipeline with a focus on education and SET areas [27] Additional Insights - The company is focusing on optimizing its finance, HR, and technology functions to drive efficiency [29] - Emphasis on expanding wallet share with existing clients and enhancing service offerings [28] - The company has a dual-class share structure, with B shares having voting rights [42] Conclusion - Kelly Services is undergoing a significant transformation aimed at enhancing shareholder value through strategic acquisitions, operational efficiencies, and a focus on higher-margin segments. The company is well-positioned to capitalize on growth opportunities in the staffing industry, particularly in education and specialized sectors.

Core Insights - Atlantic International Corp. reported a significant improvement in its financial performance for the third quarter of 2025, achieving $315.8 million in service revenue year-to-date, with a record revenue of $110.1 million for the quarter, reflecting a 2.2% increase compared to the same period last year [1] - The company narrowed its net loss to $32.3 million, or $0.59 per share, compared to a net loss of $66.8 million, or $2.04 per share, in 2024, marking an improvement of $34.5 million year over year [2] - Adjusted EBITDA for the first nine months of 2025 improved to a negative $0.7 million from a negative $2.7 million in the prior year, indicating stabilization in the cost structure [2] Financial Performance - Total assets as of September 30, 2025, were reported at $110.3 million, reflecting the company's active management of its capital structure to support operational needs and long-term strategic priorities [4] - The company is positioned for ongoing stability and sustained financial gains due to momentum from cost discipline, strong client relationships, and process improvements [4] Strategic Outlook - Management anticipates continued improvement throughout the remainder of 2025 and into 2026, driven by additional efficiency initiatives and enhancements in service delivery [3] - The growth strategy focuses on leveraging operational efficiencies for organic growth in core markets, pursuing selective expansion in high-potential HR service areas, and enhancing technology-driven service delivery to meet evolving client needs [3]

Core Insights - The Kelly Global Re:work Report highlights a significant disconnect between executives and employees regarding the adoption and benefits of AI in the workplace [4][6] - Executives view acquiring AI skills as essential for career success, while many employees remain skeptical about the technology's advantages [1][2] Group 1: Executive Perspectives - 69% of executives believe that refusing to adopt AI poses a greater threat to job security than the technology itself [2] - More than half (59%) of executives would consider replacing workers who resist adopting AI tools [2] - Executives acknowledge that AI should enable employees to focus on high-value tasks, yet only 47% of workers report time savings from AI [3] Group 2: Employee Perspectives - Less than half of employees (47%) feel they are benefiting from AI tools, and 32% do not see any advantages [3] - There is a notable gap in trust and understanding of AI's role in enhancing job performance among employees [4][5] Group 3: Implementation Challenges - 80% of executives admit that AI implementation is stalling due to a lack of expertise among teams [3] - Organizations face technical challenges, security concerns, and slow user adoption, which hinder effective AI integration [4] - The report identifies a skills gap as a critical barrier to realizing the full potential of AI in the workplace [4][5] Group 4: Recommendations for Organizations - The report urges employers to address three interconnected gaps: technology, talent, and trust [5] - Recommendations include linking AI fluency to career development, providing hands-on demonstrations to alleviate fears, and establishing feedback loops to align leadership and employee experiences [5][6] - Leaders are encouraged to model AI usage in their roles and foster a culture that promotes AI-driven problem-solving [6]

Core Viewpoint - HireQuest, Inc. reported financial results for Q3 2025, highlighting challenges in the U.S. staffing industry due to a muted hiring landscape as employers adopt a cautious approach to hiring activities [1] Company Summary - HireQuest, Inc. is a national franchisor specializing in on-demand staffing and executive search services [1] - The company’s President and CEO, Rick Hermanns, noted the ongoing challenges faced by the staffing industry in the current economic environment [1] Industry Summary - The U.S. staffing industry is experiencing a subdued hiring environment, with employers taking a "wait and see" approach regarding their hiring decisions [1]

Core Insights - The October job losses are the highest in 20 years, indicating a significant cooling in the labor market [2][3] - There is an expectation of continued layoffs through the end of the year, reflecting ongoing weakness in the labor market [3][6] - Wall Street appears to reward companies that announce job layoffs, creating a potential momentum for such actions [7][12] Labor Market Analysis - The labor market is showing signs of cooling, with various indicators being monitored to assess the overall health of the economy [4][5] - Challenger data provides a comprehensive view of job losses, contextualizing current figures with historical data [6] - Bank of America data suggests that while the market is cooling, conditions did not worsen from September to October [8] Impact of Artificial Intelligence - AI is becoming increasingly integrated into job postings, with 13% of tracked job posts including AI-related roles [11] - The trend indicates a shift towards more precise hiring practices, as companies leverage AI for productivity [12] - Companies are adopting smarter strategies in workforce management, balancing layoffs with targeted hiring in AI and technology sectors [10][12]

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]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $332.6 million, exceeding expectations, with earnings per share of $0.63, surpassing the high end of guidance [2][19] - Overall gross margins improved to 27.7%, up 60 basis points sequentially, while flex margins in the technology business increased by 50 basis points [19][20] - SG&A expenses as a percentage of revenue increased to 22.8%, primarily due to lower revenue and gross profit levels [20] Business Line Data and Key Metrics Changes - Technology business revenues declined 1.1% sequentially and 5.6% year-over-year, while finance and accounting business grew approximately 7% sequentially but declined slightly more than 8% year-over-year [11][19] - Consultants on assignment grew roughly 4% from early third quarter lows, indicating a positive trend in staffing [11][12] - Flex revenues in the finance and accounting business, which currently represent about 7% of total revenues, declined 7.3% year-over-year but saw 6.9% sequential growth [16] Market Data and Key Metrics Changes - The labor market remains weak, with prolonged stagnation in job gains, but internal KPIs improved throughout Q3, leading to an increase in consultants on assignment [4][11] - Demand for services is broad-based across various industries, with no specific industry driving growth, indicating a stable market environment [56][58] Company Strategy and Development Direction - The company is focused on organic growth strategies, emphasizing partnerships with clients to address critical business challenges [9][24] - There is a strong commitment to investing in AI readiness and evolving skill sets to meet growing client demands [9][15] - The company aims to achieve double-digit operating margins and approximately 8% profitability when annual revenues return to $1.7 billion [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and ability to deliver above-market results despite macroeconomic uncertainties [26] - The ongoing federal government shutdown and global trade negotiations create a challenging near-term outlook, but there is optimism for sequential growth in Q4 [3][4] - The company anticipates a sequential billing day increase in the technology business during Q4, supported by momentum from new engagements [15][19] Other Important Information - The company returned $16.2 million to shareholders through dividends and share repurchases, maintaining a strong balance sheet with conservative leverage [22][24] - The board approved an increase in share authorization to $100 million, reaffirming the company's commitment to returning capital to shareholders [23] Q&A Session Summary Question: Can you provide a sense of typical July through September performance compared to this year? - Management noted a 4% increase in consultants on assignment, indicating a healthy growth rate compared to pre-pandemic levels, though slightly lower than historical highs [28][29] Question: What contributed to the improvement in gross margins? - The increase in flex gross margins was attributed to lower healthcare costs and a favorable mix shift towards consulting engagements, which typically carry higher margins [30][32] Question: What is the company's exposure to H1B visa changes? - The company has minimal exposure as it does not sponsor new H1B visas, focusing instead on transitioning existing employees, thus expecting no immediate impact on talent access [34][36] Question: What types of AI-related projects are driving demand? - The majority of work involves foundational readiness, data modernization, and operational AI use cases, with a focus on measurable returns [42][44] Question: How close is the company to a staffing revenue bottom? - Management indicated promising signs of stabilization in staffing revenue, with growth observed in both staff augmentation and consulting services [49][50]

Group 1 - Approximately 66% of U.S. workers are willing to return to the office full-time if offered higher pay, indicating that compensation is a significant factor in employee satisfaction [1][2] - The survey by Robert Half reveals that many employees view hybrid or fully remote work as the new norm, but office-based roles are still viable if the right compensation is provided [2] - A majority of workers open to returning to the office would consider full-time onsite work with at least a 10% salary increase [2] Group 2 - Employers need to offer higher pay, better perks, or create an appealing office environment to encourage employees to return to the office [3] - A report from Jones Lang LaSalle Inc. indicates that the majority of Fortune 100 employees now have a fully in-office policy from their employers [4] - Employees should evaluate the trade-offs of returning to the office, considering factors like commuting costs and time lost in traffic [7] Group 3 - Employees are encouraged to negotiate for more than just salary, such as hybrid workdays, flexible hours, or additional paid time off, which may provide greater value than a salary increase [7] - Utilizing Robert Half's Salary Guide can help employees understand their worth and ensure that offers reflect the additional costs and time associated with returning to the office [7] - Employees should be clear about their priorities, especially if remote work is essential for them, and feel empowered to decline offers that do not align with their needs [7]

Core Insights - Metavesco, Inc. reported sales results for its Epic Labor staffing subsidiary, indicating a slight increase in weekly revenue for September 2025 compared to August 2025 [2][3]. Financial Performance - Epic Labor generated $33,583 in revenue per week during September, up from $33,423 per week in August, despite September having four weeks of operations compared to five weeks in August [2]. - Total revenue for September was $134,332, a decrease from $167,115 in August [2]. Business Strategy - The company aims for Epic Labor to achieve cash-flow positivity as part of its broader strategy to convert operational profits into Bitcoin and efficient Bitcoin mining [3]. - Epic Labor currently operates four staffing locations and provides on-demand blue-collar staffing across various sectors, including construction, warehousing, hospitality, and events [3]. - Metavesco plans to expand Epic Labor's presence in the Southeast with additional branch locations expected to open soon [3]. Company Overview - Metavesco, Inc. is a diversified holding company focused on acquiring and managing assets across multiple sectors, including consumer packaged goods and staffing services [4]. - The company is committed to long-term growth through organic expansion, strategic acquisitions, and innovative market solutions [4].