Kelly Services, Inc. · NASDAQ:KELYA
Kelly Services — Q3 2025 Earnings Presentation
16 slides from Kelly Services's earnings presentation, Nov 6, 2025
Slide 1: November 6, 2025
November 6, 2025
Slide 2: Presentation
Presentation
Slide 3: Safe Harbor Statement
{© 2025 Kelly Services ne. llrightsreserved 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
Slide 4: Non-GAAP Measures
Non-GAAP Measures {© 2025 Kelly Services ne. llrightsreserved Management believes that the non-GAAP (U.S. Generally Accepted Accounting Principles) information excluding the 2025 goodwill impairment charge, the 2025 valuation allowance, the 2025 and 2024 integration and realignment costs, the 2025 a
Slide 5: a je rT) c G = ic
a je rT) c G = ic
Slide 6: Takeaways
Third-Quarter 2025 Takeaways Revenue decline in the quarter reflects growth in more resilient markets and the Education segment, offset by discrete impacts in the ETM and SET segments + Revenue down 9.9%, down 2.0%” excluding the discrete impacts of U.S. federal government in the SET and ETM segment
Slide 7: Financial Summary
Third-Quarter 2025 Financial Summary Actual Change Increase/(Decrease) Results As Reported As Adjusted) Revenue $935.0M (9.9%) (9.9%) Gross Profit Rate 20.8% (60) bps (60) bps Loss from Operations ($102.1M) NM (63.0%) Diluted Loss per Share ($4.26) ($4.28) ($0.03) Adjusted EBITDA $16.5M 36.7% Adjust
Slide 8: EPS Summary
Third-Quarter 2025 EPS Summary Sinmillions except per share data 2025 Per Share Per Share Net earnings (loss) ($150.1) ($4.26) $0.8 $0.02 Goodwill impairment charge, net of taxes) 83.6 2.37 - - Valuation allowance on deferred tax assets 69.7 1.98 - - Integration and realignment costs, net of taxes 2
Slide 9: Revenue Trends
Third-Quarter 2025 Revenue Trends Total Excluding discrete impacts Enterprise Talent Management™ Excluding discrete impacts Science, Engineering & Technology Excluding discrete impacts Education === Refer to the last slide for footnotes. {© 2025 Kelly Services nc. llrightsreserved Organic Organic Qi
Slide 10: Gross Profit Rate
Third-Quarter 2025 Gross Profit Rate 22.0% 21.5% 21.4% 21.0% | 20.8% (50) bps 20.5% (10) bps 20.0% 19.5% 19.0% 18.5% 18.0% Q3 2024 GP Rate Employee-related Business mix Q3 2025 GP Rate costs + GP rate decreased due to an increase in employee-related costs, and business mix changes driven by growth i
Slide 11: SG&A
Third-Quarter 2025 SG&A Sin millions $250 $240 $230 $220 $210 $200 $1 $194 a $190 ($20) — —. 3) 83) $219 $180 $170 $160 $150 Q3 2024 SG&A Operations Integration ay Transaction Executive Q3 2025 SG&A & realignment costs costs transition costs + Expenses in Operations decreased as a result of manageme
Slide 12: Third-Quarter 2025 Revenue and Gross Profit Mix
16 2025 Kall Senvces In Third-Quarter 2025 Revenue and Gross Profit Mix Revenue Mix(9) Gross Profit Mix‘ EDU EDU 15% 10% 2025 2025 12
Slide 13: Liquidity
Third-Quarter 2025 Liquidity Sinmilions $400 $301 $300 5 $269 $30 $200 $159 51s 33 283 $100 $39 5 $239 $126 S115 $0 -$100 $43 $43 -$200 $46 $46 -$300 -$400 Q3 2024 Q4 2024 Q2 2025 Q3 2025 mCash — Unused Borrowing Capacity SBLC Borrowings Combined borrowing capacity of $400 million on our U.S. revolv
Slide 14: Outlook
{© 2025 Kelly Services nc. llrightsreserved Outlook Our Q4 2025 Outlook assumes no material change in the macroeconomic or industry dynamics relative to Q3, anda positive resolution to the current federal government shutdown during the quarter. Through our ongoing focus on efficiency and effectivene
Slide 15: Appendix
Appendix 15
Slide 16: Footnotes
Third-Quarter 2025 Footnotes © 2025 Kelly Services In, Allights reserved 1) 2) 3) 4) 1) Reflects the combined negative discrete impacts from reduced demand for U.S. federal government contractors in Science, Engineering & Technology ("SET") and Enterprise Talent Management ("ETM") and from three lar