Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 39

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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.1 5.0 Less: Intersegment revenue(1.1)(0.6)(2.6)(1.6)Consolidated Total$935.0 $1,038.1 (9.9)%$3,201.7 $3,140.7 1.9 %

Third Quarter Results

The decrease in ETM revenue of 13.1% was primarily related to a decrease of 16.4% in staffing services resulting from lower hours volume primarily at certain large customers and a decrease of 17.2% from outcome-based services primarily due to the ramping down of a large contact-center customer that has fully ended as of the third quarter of 2025.  Permanent placement fees decreased 19.5%, reflecting lower market demand.

The decrease in SET revenue from services of 9.0% was primarily driven by declines in hours volume in our staffing specialties largely from changes in demand related to U.S. federal government contractors.  Revenue in our outcome-based services decreased 8.4% primarily due to lower project demand including from the U.S. Federal Government.  Permanent placement fees decreased 13.3%, reflecting continued lower market demand.

The increase in Education revenue from services was driven primarily by the impact of ongoing improved fill rates.

September Year-to-Date Results

ETM revenue includes the impact from the acquisition of Sevenstep, the MRP talent solutions business.  Revenue excluding the acquisition decreased 6.1%.  Revenue from staffing services decreased 8.7%, resulting from lower hours volume primarily at certain large customers and revenue from outcome-based services decreased 7.2%, primarily due to the ramping down of a large contact-center customer that has fully ended as of the third quarter of 2025, which was offset by an increase of 1.8% 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 8.2%, 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 4.7%.  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