Kelly Services, Inc. · NASDAQ:KELYA
Kelly Services — Q1 2026 Earnings Presentation
15 slides from Kelly Services's earnings presentation, May 7, 2026
Slide 1: Q1 2026 Earnings Presentation
Q1 2026 May 7, 2026 © 2026 Kelly Services, Inc. All rights reserved.
Slide 2: Presentation Disclosures
Presentation Disclosures 2 © 2026 Kelly Services, Inc. All rights reserved.
Slide 3: 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 4: Non-GAAP Measures
Non-GAAP Measures Management uses adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunc
Slide 5: Financials
Financials 5 © 2026 Kelly Services, Inc. All rights reserved.
Slide 6: First-Quarter 2026 Takeaways
First-Quarter 2026 Takeaways Revenue decline in the quarter reflects growth in more resilient markets, offset by discrete impacts in the ETM and SET segments • Revenue down 10.7%, down 3.3%(1) underlying which excludes the discrete impacts of U.S. federal government in the SET segment and three larg
Slide 7: First-Quarter 2026 Financial Summary
First-Quarter 2026 Financial Summary Results Change Revenue $1.0B (10.7%) Gross Profit Rate 18.9% (140) bps Loss from Operations ($5.1M) NM Adjusted Earnings from Operations(2) $4.1M (81.4%) Diluted Loss per Share ($0.17) ($0.33) Adjusted Earnings per Share(2) $0.03 ($0.36) Adjusted EBITDA(2) $15.8M
Slide 8: Revenue Trends
Revenue Trends Organic Organic Reported Reported Reported Q1 2025(3) Q2 2025(3) Q3 2025 Q4 2025 Q1 2026 Total 0.2% (3.3%) (9.9%) (11.9%) (10.7%) Excluding discrete impacts (1) 2.7% 1.6% (2.0%) (3.9%) (3.3%) Enterprise Talent Management(4) 0.1% (4.7%) (12.8%) (18.3%) (13.2%) Excluding discrete impact
Slide 9: First-Quarter 2026 Revenue and Gross Profit Mix
First-Quarter 2026 Revenue and Gross Profit Mix Revenue Mix(4) Gross Profit Mix(4) EDU EDU 20% 28% ETM ETM 2026 44% 2026 44% SET SET 36% 28% EDU EDU 19% 26% ETM ETM 2025 46% 2025 46% SET SET 35% 28% Refer to the last slide for footnotes. © 2026 Kelly Services, Inc. All rights reserved. 9
Slide 10: First-Quarter 2026 Gross Profit Rate
First-Quarter 2026 Gross Profit Rate • GP rate decreased primarily due to an increase in employee-related costs, which includes timing related impacts © 2026 Kelly Services, Inc. All rights reserved. 10
Slide 11: First-Quarter 2026 SG&A
First-Quarter 2026 SG&A $ in millions • Expenses in Operations decreased as a result of management’s efforts to drive structural efficiencies and align resource levels with volume • Integration and realignment costs related to the integration of MRP and other prior acquisitions, consolidation of ope
Slide 12: First-Quarter 2026 Liquidity
First-Quarter 2026 Liquidity $ in millions $400 $288 $300 $33 $252 $26 $200 $181 $28 $255 $100 $226 $153 $0 $102 $131 -$100 $205 $43 $43 -$200 $43 -$300 Q1 2025 Q4 2025 Q1 2026 Cash Unused Borrowing Capacity SBLC Borrowings • Combined borrowing capacity of $400 million on our U.S. revolving credit (
Slide 13: 2026 Outlook
2026 Outlook Our 2026 Outlook assumes no material Second Quarter of 2026 change in the macroeconomic or • Revenue – expect year-over-year improvement relative to Q1, with industry dynamics overall revenue decline of 7% to 9%, which includes at least 100 bps of relative to current improvement on an u
Slide 14: Appendix
Appendix 14 © 2026 Kelly Services, Inc. All rights reserved.
Slide 15: First-Quarter 2026 Footnotes
First-Quarter 2026 Footnotes 1) Reflects the combined negative discrete impacts from reduced demand for U.S. federal government contractors in Science, Engineering & Technology ("SET") and from three large private sector customers in Enterprise Talent Management ("ETM"); 2) See Reconciliation of Non