Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 113

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 113
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 improved fill rates on stable demand for our services as compared to a year ago.

June Year-to-Date Results

ETM revenue includes the impact from the addition of the Sevenstep business.  Revenue excluding the acquisition decreased 2.6%.  Revenue from staffing services decreased 4.8% resulting from lower hours volume primarily at certain large customers and revenue from outcome-based services decreased 2.2% due primarily from lower demand for our contact-center solutions, which were offset by an increase of 2.6% in talent solutions, excluding the acquisition.

The increase in SET revenue from services was primarily driven by the acquisition of MRP staffing and outcome-based solutions businesses.  Excluding the acquisition, revenue from services decreased 7.8% primarily driven by declines in hours volume in our staffing specialties largely from changes in demand related to U.S. federal government contractors.  Excluding the acquisition, revenue in our outcome-based services decreased 3.9%.  Permanent placement fees decreased, reflecting continued lower market demand.

The increase in Education revenue from services was driven by the impact of higher fill rates and higher bill rates on stable demand for our services as compared to a year ago, partially offset by the impact of weather-related school closures early in the year.

35 

Operating Results By Segment (continued)

(Dollars in millions)

Second QuarterJune Year-to-Date 20252024Change20252024ChangeGross Profit:Enterprise Talent Management$104.0 $109.0 (4.6)%$212.0 $215.2 (1.5)%Science, Engineering & Technology82.4 67.8 21.5 164.7 125.2 31.5 Education39.1 36.9 6.1 85.3 79.0 8.1 Consolidated Total$225.5 $213.7 5.5 %$462.0 $419.4 10.2 %Gross Profit Rate:Enterprise Talent Management20.0 %20.1 %(0.1)pts.20.1 %20.2 %(0.1)pts.Science, Engineering & Technology26.0 25.5 0.5 25.7 25.2 0.5 Education14.7 14.7 — 14.9 14.6 0.3 Consolidated Total20.5 %20