Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 36

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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— 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 realignment costs related to initiatives to integrate MRP and other prior acquisitions, consolidating operating segments, and further aligning processes and technology across the Company, $0.8 million of executive transition charges and $0.4 million of transaction costs related to the sale of our EMEA staffing operations. Included in SG&A expenses in the third quarter of 2024 were $6.1 million of integration and realignment costs related to initiatives to integrate MRP and aligning Company processes and $0