Kelly Services Reports 4.2% Revenue Increase to $1.1 Billion in Q2 2025

Kelly Services, Inc. reported a revenue increase of 4.2% for the second quarter of 2025, reaching $1,101.8 million compared to $1,057.5 million in the same period last year. The year-to-date revenue also saw a rise of 7.8%, totaling $2,266.7 million, up from $2,102.6 million. The company's net earnings for the second quarter surged to $19.0 million, a significant increase from $4.6 million in the prior year, resulting in basic earnings per share of $0.52, compared to $0.13 in the same quarter of 2024. The gross profit for the quarter was $225.5 million, reflecting a 5.5% increase from $213.7 million a year earlier.

The financial performance was bolstered by the acquisition of Motion Recruitment Partners (MRP) in May 2024, which contributed positively to revenue growth. However, excluding the impact of acquisitions, revenue from services decreased by 3.3% year-over-year, with declines noted in the Enterprise Talent Management (ETM) and Science, Engineering & Technology (SET) segments. The Education segment, however, experienced growth, driven by strong fill rates in K-12 staffing. The company also reported a gross profit margin improvement to 20.5%, up from 20.2% in the previous year.

Operationally, Kelly Services has been focusing on integrating MRP's portfolio with its existing operations, which includes realigning sales and recruiting teams. The company has also initiated various integration and realignment initiatives, incurring $6.1 million in related costs during the second quarter. The total SG&A expenses rose by 8.2% to $207.3 million, primarily due to the MRP acquisition, although expenses excluding integration costs decreased slightly. The company’s total employee headcount remained stable, with no significant changes reported.

Geographically, the Americas region accounted for the majority of revenue, with the United States contributing $986.9 million in the second quarter, up from $944.2 million a year prior. The company’s cash position at the end of the second quarter was $24.5 million, down from $45.6 million at year-end 2024, reflecting cash used for financing activities, including debt repayments. The company’s debt-to-total capital ratio improved to 5.5% from 16.2% at the end of 2024, indicating a stronger balance sheet.

Looking ahead, Kelly Services remains focused on executing its growth and efficiency initiatives while adapting to changing market conditions. The company anticipates continued demand for its services, particularly in the Education segment, and is committed to aligning its resources with market demand. The management expressed confidence in the company’s ability to navigate the evolving landscape and maintain operational discipline while pursuing strategic growth opportunities.