Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 28

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 to properly reflect the gross revenue amounts billed to the customer.

NM (not meaningful) in the following tables is used in place of percentage changes where: the change is in excess of 500%, the change involves a comparison between earnings and loss amounts, or the comparison amount is zero.

28 

Results of Operations

Total Company 

(Dollars in millions)

First Quarter 20252024% ChangeRevenue from services$1,164.9 $1,045.1 11.5 %Gross profit236.5 205.7 15.0 SG&A expenses excluding integration, realignment, and restructuring charges and depreciation and amortization202.2 178.0 13.6 Integration, realignment and restructuring charges10.7 2.3 361.1 Total SG&A expenses excluding depreciation and amortization212.9 180.3 18.1 Depreciation and amortization12.8 10.2 25.4 Total SG&A expenses225.7 190.5 18.5 Gain on sale of EMEA staffing operations— (11.6)NMEarnings from operations10.8 26.8 (59.8)Gain on forward contract— 1.2 NMOther income (expense), net(3.2)1.8 (271.3)Earnings before taxes7.6 29.8 (74.6)Income tax expense1.8 4.0 (54.7)Net earnings$5.8 $25.8 (77.7)%Gross profit rate20.3 %19.7 %0.6 pts.

First Quarter Results

Revenue from services in the first quarter increased 11.5%, which is primarily driven by the acquisition of MRP in May 2024.  Excluding the impact from the acquisition, revenue from services was flat year-over-year with increases in the Education segment mostly offset by decreases in the SET segment.  Compared to the first quarter of 2024 and excluding the impact from the acquisition, revenue from staffing services and outcome-based services were flat to the prior year.  Revenue from talent solutions increased 3.0% and permanent placement revenue decreased 31.4% from the prior year, excluding the impact from the acquisition.

Gross profit increased 15.0% largely driven by the acquisition of MRP.  Excluding the impact from the acquisition