Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 98

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 segment increased on higher revenue volume.  Factors impacting the gross profit rate included the impact of lower employee-related costs, which increased the gross profit rate by 10 basis points and a 10 basis point increase as a result of higher permanent placement fees.

September Year-to-Date Results

Gross profit for the ETM segment decreased on lower revenue volume.  Factors impacting the gross profit rate included the impact of changes in business mix and higher employee-related costs, which reduced the gross profit rate by 40 basis points, partially offset by a 10 basis point increase due to the addition of the Sevenstep business.

The SET gross profit increased primarily due to the acquisition of the MRP staffing and outcome-based solutions businesses. SET gross profit rate is flat compared to prior year and reflects the benefit of the MRP acquisition, which generates higher gross profit rates, offset by lower permanent placement fees and unfavorable changes in business mix.

Gross profit for the Education segment increased 20 basis points on higher revenue volume.  The gross profit rate increased due primarily to lower employee-related costs.

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Operating Results By Segment (continued)

(in millions)

Third QuarterSeptember Year-to-Date 20252024% Change20252024% ChangeSG&A Expenses (excluding depreciation and amortization):Enterprise Talent Management$87.6 $96.4 (9.2)%$281.7 $288.0 (2.2)%Science, Engineering & Technology57.6 68.1 (15.3)189.6 160.2 18.4 Education24.5 23.0 6.3 76.9 71.2 8.1 Corporate expenses12.1 17.0 (28.3)41.3 44.4 (7.0)Consolidated Total$181.8 $204.5 (11.1)%$589.5 $563.8 4.6 %

Third Quarter Results

The decrease in ETM SG&A expenses excluding depreciation and amortization was primarily due to lower employee-related costs as a result of expense management actions in response to lower revenue volume compared to the prior year.

The decrease in SET SG&A expenses excluding depreciation and amortization was primarily due to lower employee-related costs as a result of expense management actions in response to lower revenue volume compared to the prior year.

The increase in Education SG&A expenses excluding depreciation and amortization primarily related to increased costs to support year-over-year revenue growth