Kelly Services, Inc. · NASDAQ:KELYA
Kelly Services — Q2 2025 Earnings Presentation
27 slides from Kelly Services's earnings presentation, August 2025
Slide 1: Q2 2025 Investor Presentation
Q2 2025 Investor Presentation August 2025 © 2025 Kelly Services, Inc. All rights reserved.
Slide 2: Kelly is a leading global specialty talent solutions provider
Kelly is a leading global specialty talent solutions provider 78 $4.3 billion 3.3% years of industry leadership of revenue in 2024, reflecting adjusted EBITDA margin in 2024, organic growth that significantly up 100 basis points over 2023 outperformed the market 3 400,000 #2 specialized, market-lead
Slide 3: We are well positioned to create long-term value for all our stakeholders
We are well positioned to create long-term value for all our stakeholders Industry-leading brand and businesses delivering differentiated solutions to blue-chip customers Streamlined operating model organized around specialty portfolio in attractive higher-margin, higher-growth markets Transforming
Slide 4: Significant shareholder value creation opportunity at Kelly's present valuation
There is a significant shareholder value creation opportunity at Kelly’s present valuation The value of our individual businesses and our valuation multiple relative to peers imply considerable upside potential, which we are well positioned to capture through our specialty growth strategy and transf
Slide 5: A streamlined operating model designed to accelerate growth
A streamlined operating model designed to accelerate growth Implemented in 2020 and realigned in 2025(1), our portfolio of specialty businesses positions Kelly to compete and win. Kelly Enterprise Talent Kelly Science, Engineering Kelly Education (EDU) Management (ETM) & Technology (SET) GP Margin(2
Slide 6: Our businesses are widely recognized by our customers and the industry
Our businesses are widely recognized by our customers and the industry Kelly Enterprise Talent Kelly Science, Engineering & Kelly Management (ETM) Technology (SET) Kelly Education • #2 Temporary Staffing Firm in • 2025 Everest Group PEAK • 2025 Everest Group PEAK • #1 Largest Education Staffing Amer
Slide 7: We have driven significant progress on our Specialty Growth Journey
We have driven significant progress on our Specialty Growth Journey Revenue Mix Launched streamlined operating model in 2020 to sharpen focus on higher-margin, higher-growth INTL(1) EDU specialties, resulting in ~200 basis points of gross 22% 22% margin expansion by 2024 P&I EDU 2020 41% 2024 ETM(2)
Slide 8: Delivering differentiated solutions to meet the evolving needs of clients and talent
We are delivering differentiated solutions to meet the evolving needs of clients and talent Since 2020, we have shifted our revenue mix toward higher-margin outcome-based, MSP, and RPO solutions. 1% 1% 8% 11% 15% 21% 44% 6% 2020(1) 2024(1) 70% 22% Temporary Staffing Outcome-Based Solutions Talent So
Slide 9: Our transformation has delivered significant profitability improvement
Our transformation has delivered significant profitability improvement Through targeted growth and efficiency initiatives, we have more than doubled adjusted EBITDA(1) margin since 2020 and are laser-focused on delivering continued incremental margin expansion. $160 4% $143 $142 $140 $120 3.3% 3% $1
Slide 10: Our near-term priorities are clear
Propelled by momentum from our recent achievements, our near-term priorities are clear Deliver above-market growth Further optimize operating Drive incremental EBITDA by increasing scale in chosen specialties model margin expansion • Realign SET into growth • Continue to build out go-to- • Further e
Slide 11: Capital allocation strategy focused on driving long-term shareholder value
Our capital allocation strategy is focused on driving long-term shareholder value With a strong balance sheet underpinned by healthy free cash flow generation and available debt capacity, we are well positioned to deliver on our priorities. Capital Deployment: 2020-2024(1) Disciplined organic invest
Slide 12: Business Unit Overview
Business Unit Overview 12
Slide 13: Enterprise Talent Management Segment Overview
Enterprise Talent Management(1) Segment Overview 2024 ETM Revenue Mix $2,230.0 $2,214.4 21.2% 1% $2,210.0 $2,196.1 21.0% 21.0% $2,185.1 22% $2,190.0 20.8% $2,170.0 20.6% $2,150.0 20.4% 53% $2,130.0 20.3% 20.2% 20.2% 24% $2,110.0 20.0% $2,090.0 19.8% (2) 2023 2024 Trailing 12 Months Temp Staffing Out
Slide 14: Science, Engineering & Technology Segment Overview
Science, Engineering & Technology(1) Segment Overview 2024 SET Revenue Mix $1,600.0 28.0% $1,400.0 $1,308.1 27.5% 2% 2% $1,165.7 $1,200.0 27.0% $970.6 $1,000.0 26.5% $800.0 26.0% 30% $600.0 25.8% 25.5% 25.6% $400.0 25.4% 25.0% 66% $200.0 24.5% $0.0 24.0% (2) 2023 2024 Trailing 12 Months Temp Staffin
Slide 15: Education Segment Overview
Education Segment Overview 2024 EDU Revenue Mix $1,200.0 24.0% $972.3 $1,005.6 1% $1,000.0 22.0% $841.9 $800.0 20.0% $636.2 $600.0 18.0% $416.5 $400.0 $286.9 16.0% 15.6% 15.8% 15.3% $200.0 14.7% 14.0% 14.4% 14.5% $0.0 12.0% 99% 2020 2021 2022 2023 2024 Trailing 12 (1) Months Temp Staffing Perm Place
Slide 16: Financial Appendix
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Slide 17: Q3 2025 Outlook
Q3 2025 Outlook Our Q3 2025 Outlook Third Quarter 2025: assumes macro and staffing market • Revenue – expect total Company year-over-year revenue decline of 5.0% to conditions consistent 7.0% with those during the o Includes approximately 8.0% of reduced demand for federal contractors first half of
Slide 18: Our Financial Journey: Revenue
Our Financial Journey: Revenue $5.2 50% $5.0 $5.0 40% $4.9 $4.8 $4.8 30% $4.6 20% $4.5 $4.5 $4.4 10% $4.3 $4.2 0% $4.0 -10% $3.8 -20% (1) 2020 2021 2022 2023 2024 Trailing 12 Months (2) (3) Kelly Revenue (billions) YoY Kelly Organic Revenue Growth % YoY Industry Growth % (1) Trailing 12 months inclu
Slide 19: Our Financial Journey: Gross Profit
Our Financial Journey: Gross Profit $1,200 23% $1,012 $1,000 $961 22% $919 $925 $883 $828 $800 21% 20.6% $600 20.4% 20.4% 20% 19.9% $400 19% 18.7% $200 18.3% 18% $0 17% (1) 2020 2021 2022 2023 2024 Trailing 12 Months Gross Profit (millions) Gross Profit % © 2025 Kelly Services, Inc. All rights reser
Slide 20: Our Financial Journey: Free Cash Flow
Our Financial Journey: Free Cash Flow(1) $200 $171 $150 $105 $100 $74 $61 $50 $16 $0 CAGR: 2.3%(2) ($50) ($100) ($88) ($150) (2) (2) (2) (3) 2020 2021 2022 2023 2024 Trailing 12 Months Free Cash Flow (millions) (1) Free cash flow is defined as net cash from operating activities minus capital expendi
Slide 21: Recast Segment Results: 2023-2024
Recast Segment Results: 2023-2024(1) $ in millions 2023 2024 2023 2024 Revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Enterprise Talent Management (ETM) 574.6 559.7 546.7 533.4 524.1 541.2 561.6 569.2 2,214.4 2,196.1 Science, Engineering & Technology (SET) 249.0 246.2 241.1 234.3 231.6 265.7 335.0 333.4 970.
Slide 22: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA(1) Non-GAAP Reconciliation $ in millions Trailing 12 2020 2021 2022 2023 2024 Months(2) Net earnings (loss) ($72.0) $156.1 ($62.5) $36.4 ($0.6) ($6.2) Other (income) expense, net (3.4) 3.6 (1.6) (4.2) 3.3 11.9 Income tax expense (benefit) (34.0) 35.1 (7.9) (11.5) (21.3) (23.7) Deprec
Slide 23: Adjusted EBITDA Non-GAAP Reconciliation Footnotes
Adjusted EBITDA Non-GAAP Reconciliation Footnotes (1) 2022 loss on investment in Persol Holdings includes losses of $67.2 million on the sale of Persol Holdings in Q1 2022, $52.4 million of which related to changes in fair value up to the date of the transaction. Gain on investment in Persol Holding
Slide 24: Cautionary Statements and Contacts
Cautionary Statements and Contacts 24
Slide 25: Non-GAAP Measures
Non-GAAP Measures Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2025 integration and realignment costs, the 2025 and 2024 transaction costs, the 2025 executive transition costs, the 2025 and 2024 gains and losses on the sale of our EMEA st
Slide 26: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not
Slide 27: Investor Contacts
Investor Contacts Chris Layden Troy Anderson Scott Thomas President & CEO EVP & CFO Head of Investor Relations Chris.Layden@kellyservices.com Troy.Anderson@kellyservices.com Scott.Thomas@kellyservices.com © 2025 Kelly Services, Inc. All rights reserved. 27