Kelly Services Reports 9.9% Revenue Decline and $150.1 Million Net Loss in Q3 2025

Kelly Services, Inc. reported a significant decline in its financial performance for the third quarter of 2025, with revenues from services totaling $935.0 million, down 9.9% from $1,038.1 million in the same period last year. The company's net loss for the quarter was $150.1 million, compared to a net profit of $0.8 million in the third quarter of 2024. This loss translated to a basic and diluted loss per share of $4.26, a stark contrast to earnings of $0.02 per share in the prior year. The decline in revenue was attributed to reduced demand from key customers and a more cautious hiring approach among employers, particularly in the Enterprise Talent Management (ETM) and Science, Engineering & Technology (SET) segments.

In terms of operational changes, Kelly Services experienced a goodwill impairment charge of $102.0 million during the quarter, reflecting the impact of lower demand and the integration of recent acquisitions, including Motion Recruitment Partners (MRP). The company also reported a decrease in gross profit, which fell to $194.0 million from $221.7 million year-over-year, primarily due to lower revenue volumes. Selling, general, and administrative (SG&A) expenses decreased by 11.2% to $194.4 million, driven by cost management initiatives and the ongoing integration of MRP.

The company’s strategic developments included the integration of MRP and the reorganization of its reportable segments, which now consist of ETM, SET, and Education. This restructuring aims to streamline operations and enhance service delivery. Additionally, Kelly Services reported a 1.9% increase in year-to-date revenue, totaling $3,201.7 million, largely due to the acquisition of MRP, although organic growth was hindered by declines in certain service areas.

Geographically, the Americas accounted for the majority of revenue, with $906.9 million in the third quarter, down from $1,012.2 million in the previous year. The Education segment showed resilience, with a slight revenue increase to $143.3 million, while the ETM and SET segments reported declines of 13.1% and 9.0%, respectively. The company’s total employee headcount remained stable, with 32,043,065 shares of Class A and 3,295,941 shares of Class B common stock outstanding as of the end of the quarter.

Looking ahead, Kelly Services expressed a commitment to aligning resources with demand and maintaining a disciplined approach to expense management. The company aims to leverage its diversified portfolio to capture growth in more resilient markets while navigating the challenges posed by the current macroeconomic environment. The outlook remains cautious, with management emphasizing the need for agility in response to evolving market conditions.