Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 93

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 93
---
.0 (11.2)627.4 601.0 4.4 Goodwill impairment charge102.0 — NM102.0 — NM(Gain) loss on sale of EMEA staffing operations(0.3)— NM(4.3)(1.6)(169.4)(Gain) loss on sale of assets— 0.1 NM— (5.4)NMAsset impairment charge— — NM— 5.5 NMEarnings (loss) from operations(102.1)2.6 NM(69.1)41.6 NMGain on forward contract— — — — 1.2 NMOther income (expense), net(1.6)(4.4)64.0 (7.1)(9.1)22.9 Earnings (loss) before taxes(103.7)(1.8)NM(76.2)33.7 NMIncome tax expense (benefit)46.4 (2.6)NM49.1 2.5 NMNet earnings (loss)$(150.1)$0.8 NM%$(125.3)$31.2 NM%Gross profit rate20.8 %21.4 %(0.6)pts.20.5 %20.4 %0.1 pts.

Third Quarter Results

Revenue from services in the third quarter decreased 9.9% year-over-year with decreases in the ETM and SET segments, partially offset by an increase in the Education segment. Compared to the third quarter of 2024, revenue from staffing services decreased 10.3% and revenue from outcome-based services decreased 13.1%.  Revenue from talent solutions decreased 1.4% and permanent placement revenue decreased 13.2% from the prior year.

Gross profit decreased 12.5%, primarily driven by lower revenue volume.  The gross profit rate decreased 60 basis points to 20.8%, primarily due to a 50 basis point decrease due to employee-related costs and a 10 basis point decrease related to business mix.

Total SG&A expenses decreased 11.2%, primarily due to expense management actions to reduce volume-related costs and reflects the benefits of the ongoing integration and realignment efforts.  SG&A expenses in the third quarter of 2025 include $3.1 million of integration and real