Kelly Services, Inc. · NASDAQ:KELYA
Kelly Services — Q2 2025 Earnings Presentation
17 slides from Kelly Services's earnings presentation, Aug 7, 2025
Slide 1: August 7, 2025
August 7, 2025
Slide 2: Presentation
Presentation
Slide 3: Safe Harbor Statement
(© 2024 Kelly Services nc. 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 (© 2024 Kelly Services nc. llrightsreserved. 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 202
Slide 5: a je rT) c G = ic
a je rT) c G = ic
Slide 6: Takeaways
Second-Quarter 2025 Takeaways Revenue growth reflects 2024 MRP acquisition and solid execution despite the evolving current macroeconomic conditions and resulting pressure on staffing demand + Q2 revenue up 4.2% on a reported basis * Organic Q2 revenue down 3.3%, including 1.4% impact from reduced d
Slide 7: Financial Summary
Second-Quarter 2025 Financial Summary Change Increase/(Decrease) Actual Results As Reported As Adjusted”) Revenue $1.1B 4.2% 4.2% Gross Profit Rate 20.5% 30 bps 30 bps Earnings from Operations $22.2M 81.0% (12.1%) Diluted Earnings per Share $0.52 $0.40 ($0.17) Adjusted EBITDA $37.0M (8.7%) Adjusted
Slide 8: Revenue Trends
Second-Quarter 2025 Revenue Trends Reported®) Organic Total’ 4.2% (3.3%) Enterprise Talent Management” (3.9%) (5.1%) Science, Engineering & Technology™ 19.4% (8.5%) Education 5.6% 5.3% === Refer to the last slide for footnotes. 2024 Kelly Services, Inc. llrightsreserved
Slide 9: Second-Quarter 2025 Gross Profit Rate
© 2024 Kelly Services nc. Alleghts reserved Second-Quarter 2025 Gross Profit Rate 22.0% Organic GP 21.5% (40) bps 21.0% 70 bps : , | 20.5% 20.5% oy a 20.2% (30) bps (10) bps 20.0% 19.5% 19.0% 18.5% 18.0% T T T T 1 Q2 2024 GP Rate MRP Business mix Perm Fees Q2 2025 GP Rate & other * GP rate favorably
Slide 10: SG&A
Second-Quarter 2025 SG&A Sin millions $250 $240 $230 $220 $6 $20 r — $210 4) = sl $207 ($5) $200 $192 $190 $180 $170 $160 $150 T T T T T T Q2 2024 5G&A MRP Integration Prior Year Prior Year Operations Q2 2025 SG&A & realignment costs Restructuring costs Transaction costs * SG&A expenses increased pr
Slide 11: Second-Quarter 2025 Revenue and Gross Profit Mix
(© 2024 kelly Senvees ne. Allrights reserved Second-Quarter 2025 Revenue and Gross Profit Mix Revenue Mix‘) Gross Profit Mix‘) EDU EDU 24% 2025 EDU 24% 2024 n
Slide 12: EPS Summary
Second-Quarter 2025 EPS Summary Sinmillions except per share data Net earnings Integration and realignment costs, net of taxes'” Transaction costs, net of taxes® Executive transition costs, net of taxes”! (Gain) loss on sale of EMEA staffing operations, net of taxes! Restructuring charges, net of ta
Slide 13: Liquidity
Second-Quarter 2025 Liquidity $inmillions $400 $301 $300 } $182 $200 = $154 $39 $283 $100 $144 sus 0) -$100 $43 -$200 $46 $46 $300 $400 Q2 2024 Q42024 Q2 2025 mCeash — Unused Borrowing Capacity SBLC jj Borrowings Our credit facilities include $400 million of combined borrowing capacity on our U.S. r
Slide 14: Q3 2025 Outlook
(6 2024 Kelly Services Inc. lrights reserved Q3 2025 Outlook Our Q3 2025 Outlook assumes macro and staffing market conditions consistent with those during the first half of the year. Through our ongoing focus on efficiency and effectiveness, we are well prepared to navigate the rapidly evolving macr
Slide 15: Appendix
Appendix 15
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Slide 17: Footnotes
Second-Quarter 2025 Footnotes 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 1) 12) 13) 14) 15) 16) 17) © 2024 KellySenices.ne llrightsreserved. 18) Organic excludes the 2025 results of Motion Recruitment Partners ("MRP"), which was acquired as of May 31, 2024 and was included in the reported results of operations