Kelly Services Stock Earnings Reports

Kelly Services reported Q1 2026 revenue of $1.0B (down 10.7% reported, down 3.3% on an adjusted/underlying basis) with adjusted EBITDA of $15.8M (1.5% margin) in line with guidance. Management highlighted stabilizing demand trends across segments, sequential improvement in ETM staffing and talent solutions, and better performance in SET telecom, life sciences and engineering specialties. Education faced near-term headwinds from delayed contracts, enrollment declines and weather-related closures but management expects sequential improvement and a return to growth in H2. The company continues its multi-phase technology modernization (Helix analytics, AI-enabled rate intelligence, a consolidated HubSpot CRM mid-year, and a broader enterprise platform rollout into late 2026/early 2027) and has formed a growth office to drive a unified go-to-market and cross-selling. Cost actions remain a priority: adjusted/core SG&A is being reduced (targeting roughly $25M net year-over-year improvement in core SG&A), incentives are expected to normalize (a ~ $20–25M swing versus 2025), and real estate/other restructuring charges continue. Liquidity remained ample ($252M available) and debt leverage ~1x EBITDA; dividend maintained at $0.075/share. Outlook: Q2 revenue decline expected 7–9% (with at least 100 bps improvement in underlying decline) and adjusted EBITDA margin at least 2.5%; management expects continued sequential improvement each quarter and modest revenue growth in H2 with margin expansion in H2.