Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 96

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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20252024% Change20252024% ChangeRevenue from Services:Enterprise Talent Management$487.9 $561.6 (13.1)%$1,542.1 $1,626.9 (5.2)%Science, Engineering & Technology304.9 335.0 (9.0)944.6 832.3 13.5 Education143.3 142.1 0.9 717.6 683.1 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